Inwido’s Capital Markets Day: A stable business, well positioned for continued profitable growth

Today, Inwido hosts its first capital markets day. The framework for the day is
based on the Company’s four strategic pillars; capitalizing on strong Nordic
position, organic and acquisition-based growth in Europe, develop new products
for the smart home and improve cost efficiency and flexibility in the supply
chain. Inwido also reiterates its financial targets.
“Maintaining and further strengthening our position in the Nordics as well as
having a systematic approach to M&A is at the core of our strategy. Our ambition
is to create value through selected acquisitions in Europe and by extracting
synergies. Being the industry leader in innovation is central to maintaining our
strong market positions. Furthermore, initiatives to improve cost efficiency and
flexibility will continue to have a positive impact on margins and bring us
closer to achieving our financial targets”, says Inwido’s CEO, Håkan Jeppsson.

The fragmented European windows and doors market is characterized by a high
degree of made to measure, local preferences, demanding logistics and
seasonality. To maintain and further strengthen Inwido’s leading position in its
key markets, as well as achieve sustainable high margins, the company
coordinates centrally and acts locally. This is showcased through a number of
strategic choices, such as to focus on the local supply chain, pragmatic sharing
of group resources, a decentralized decision process and emphasis on local
leadership.

In Sweden, Inwido’s largest market, the shift towards the more profitable
consumer segment continues, whilst maintaining the company’s strong market
position. The overall market fundamentals in Sweden are currently positive. The
Danish underlying market has enjoyed a strong recovery since 2014 and Inwido’s
key focus is to win additional market share with high margins and to improve
cost efficiency. In Finland, Inwido is the market leader in a consolidated but
weak underlying market. The key to maintaining high profitability in Finland is
to leverage on the company’s strong position, widen the product offering and
differentiate through innovation, installation and service. The Norwegian
economy has been hit hard by dropping oil prices and consumer confidence has
declined. The market is highly competitive and Inwido has implemented a number
of measures to improve operational flexibility and to reduce the cost base.
Going forward, increasing top line will be the key priority.

E-Commerce is a new direct sales channel for Inwido and was initiated through
the acquisition of JNA and SPAR in Denmark 2014. E-Commerce is a relatively
immature channel in the European windows and doors markets in which Inwido is
currently enjoying a first mover advantage. The company has identified 8-10
attractive European markets and is aiming to roll out its E-Commerce business in
these markets in the coming years, starting with Germany.

As market volumes have declined across markets in the last few years, Inwido has
implemented a number of structural measures to improve efficiency and lower cost
levels and thereby creating a more flexible organization with a stable margin
development. Similarly, the company has focused on improving its positions by
building strong brands and enhancing its product offerings across segments. In
conclusion, Inwido is now a stable business, well positioned for continued
profitable growth.

Finally, Inwido reiterates its financial targets:

  · Above market growth through organic growth in existing markets and through
selective acquisitions and initiatives in Europe
  · Operating EBITA-margin of 12%
  · The net interest bearing debt should not, other than temporarily, exceed
2.5x EBITDA
  · To pay its shareholders an annual dividend that corresponds to approximately
50 per cent of net income with the company’s financial position, cash flow and
future outlook being taken into consideration

Read the full press release in the attached PDF.
For more information, please contact:
Inwido AB
Håkan Jeppsson, President and CEO Tel.: 46 (0)10-451 45 51 or 46 (0)70-550 15 17
Peter Welin, CFO Tel.: 46 (0)10-451 45 52 or 46 (0)703 24 31 90
E-mail: peter.welin@inwido.com
About Inwido
Inwido is Europe’s largest supplier of windows and doors. The company has
operations in Denmark, Finland, Norway, Sweden, Austria, Estionia, Ireland,
Lithuania, Poland and the UK, as well as exports to a large number of other
countries. The Group markets some 20 strong local brands including Elitfönster,
SnickarPer, Hajom, Hemmafönster, Outline, Tiivi, Pihla, Diplomat and Sokolka.
Inwido has approximately 3,300 employees and generated sales of slightly more
than SEK 4.9 billion in 2014. The Group's headquarters are located in Malmö,
Sweden. For further information, please visit www.inwido.com