Inwido (INWI) CMD 2024 Presentation summary

Strategic vision and growth targets

• Aims to reach SEK 20 billion in net sales by 2030, requiring a 12% CAGR from 2024 levels.

• At least half of targeted growth to come from M&A, leveraging a proven track record of 50 deals and SEK 3.4 billion in acquired sales over the last decade.

• Focused on consolidating a fragmented European market, with a strong position in the Nordics and UK.

• Strategic roadmap prioritizes acquisitions, Green Deal commercialization, talent development, operational excellence, and digitalization.

• Financial targets include >15% ROOC, net debt/EBITDA <2.5x, and ~50% dividend payout.

Market environment and business model

• Operates in a €60 billion European window and door market, driven by energy efficiency, sustainability, and regulatory changes.

• 75% of sales are renovation-related, with strong exposure to the consumer segment and reduced cyclicality.

• Decentralized governance model with 35 business units across 12 countries, enabling flexibility and local market adaptation.

• M&A activity is increasing, with a robust pipeline and financial headroom to acquire up to SEK 4 billion in additional sales.

• Net working capital remains negative and stable, supporting strong liquidity and acquisition capacity.

Financial performance and recent developments

• Net sales for LTM September 2024 at SEK 8.7 billion, down 4% YTD; OP EBITA margin between 9.7% and 11.9% over the last decade.

• ROOC currently at 13.1%, below the 15% target due to lower volumes and higher operating capital.

• Dividend payout of SEK 6.50 in May 2024, representing 55% of net profit.

• Increased capex in 2023–2024 to compensate for pandemic-related reductions, supporting modernization and growth.

• Order intake since Q2 2024 exceeds sales, indicating improving demand outlook.