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Inwido AB Interim / Quarterly Report 2020
8651_10-k_2021-02-10_46f1acb2-e955-434a-ad44-650302a5687e.pdf
Interim / Quarterly Report
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inwido
DE
Despite Covid-19, 2020 was a successful year for Inwido. We delivered record profits and the Group's highest sales to date. A strong balance sheet was also achieved by sharply reducing the level of net debt"
Year-end report January-December 2020
Fourth quarter of 2020
- Net sales amounted to SEK 1,798 million (1,813). Organic growth amounted to 1 percent.
- Order intake increased by 11 percent and the order backlog increased by 48 percent to SEK 1,142 million.
- EBITA increased to SEK 230 million (186) and the EBITA margin increased to 12.8 percent (10.3).
- Operating EBITA rose to SEK 231 million (211) and the operating EBITA margin rose to 12.9 percent (11.6).
- Earnings per share rose by 32 percent to SEK 3.02 (2.28).
- Net debt, excluding IFRS 16, in relation to operating EBITDA decreased to a multiple of 0.9 (2.2).
January-December 2020
- Net sales rose to SEK 6,681 million (6,631). Organic growth amounted to 2 percent.
- EBITA increased to SEK 712 million (621) and the EBITA margin increased to 10.7 percent (9.4).
- Operating EBITA rose to SEK 729 million (646) and the operating EBITA margin rose to 10.9 percent (9.7).
- Earnings per share rose to SEK 8.64 (7.48).
- The Board of Directors proposes a dividend of SEK 4.50 (0).
- Per Bertland is proposed as the new Chairman of the Board following Georg Brunstam having declined re-election.
| SEKm (unless otherwise stated) | Oct-Dec 2020 | Oct-Dec 2019 | Jan-Dec 2020 | Jan-Dec 2019 |
|---|---|---|---|---|
| Net sales | 1,798 | 1,813 | 6,681 | 6,631 |
| EBITA | 230 | 186 | 712 | 621 |
| Operating EBITA | 231 | 211 | 729 | 646 |
| Earnings per share before dilution, SEK | 3.02 | 2.28 | 8.64 | 7.48 |
| Net sales increase (%) | -0.8 | -2.8 | 0.8 | -0.5 |
| EBITA margin (%) | 12.8 | 10.3 | 10.7 | 9.4 |
| Operating EBITA margin (%) | 12.9 | 11.6 | 10.9 | 9.7 |
| Net debt/Operating EBITDA, multiple | 1.1 | 2.4 | 1.1 | 2.4 |
| Net debt/Operating EBITDA, multiple (excl IFRS 16) | 0.9 | 2.2 | 0.9 | 2.2 |
| Net debt | 1,096 | 2,075 | 1,096 | 2,075 |
| Net debt (excl IFRS 16) | 740 | 1,711 | 740 | 1,711 |
A teleconference for analysts, media representatives and investors will be held at 10:00 a.m. today, 10 February 2021. At that time, the report will be presented by Henrik Hjalmarsson, President and CEO, and Peter Welin, CFO. The presentation will be held in English and can also be followed via live web cast at: https://www.inwido.com/investors/financial-reports-and-presentations You will also find the presentation materials here before the start of the meeting. It will also be possible to view the broadcast later at the same address. To participate in the conference call/webcast, no prior registration is required, but please dial in five minutes before the advertised time to allow the meeting to commence punctually. Dial in by phone to SE: +46-08-56642707 UK: +44-3333009260 US: +1-8335268398.
For further information, please contact:
Henrik Hjalmarsson, President and CEO
Tel +46 (0)76 846 20 46
Peter Welin, CFO and Deputy CEO
Tel +46 (0)70 324 31 90
Inwido AB (publ), Corporate identity number: 556633-3828
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inwido
Although affected by the pandemic, a good fourth quarter gave a strong end to 2020
Despite Covid-19, 2020 was a successful year for Inwido. We delivered record profits and the Group's highest sales to date. A strong balance sheet was also achieved by sharply reducing the level of net debt. We delivered organic growth in the fourth quarter and strengthened margins for the seventh quarter in a row, thanks to a beneficial sales mix and good cost awareness throughout the Group. A strong cash flow reduced the net debt to a multiple of 0.9x operating EBITDA, excluding IFRS 16. Net sales grew organically by 1 percent to SEK 1,798 million (1,813). Operating EBITA rose to SEK 231 million (211) and the operating EBITA margin rose to 12.9 percent (11.6). Net sales for 2020 increased to SEK 6,681 million (6,631), operating EBITA rose to SEK 729 million (646), with the operating EBITA margin thereby rising to 10.9 percent (9.7). We also ended the year with a strong, 11-percent increase in order intake and, at the end of the year, our order backlog was 48 percent higher than at the corresponding time in the preceding year. A good year in other words.
Developments in our two business areas
Business Area South continued its positive development in the fourth quarter. Sales increased organically by 5 percent and the operating EBITA margin amounted to 18.8 percent (19.7). In November, the margin was affected negatively by a Covid-19-related shutdown in a number of municipalities in which Inwido operates in Denmark. The consumer market has developed stably, and e-Commerce continued to grow organically, by as much as 32 percent in the quarter. This business unit accounted for 11 percent of the Group's sales in the quarter and 12 percent during the full year 2020.
Business Area North experienced a generally stable consumer market and, with some signs of an emerging recovery in the industry market. Capacity and sales were affected negatively, however, by higher sick-leave due to Covid-19, primarily in Sweden. Sales during the quarter decreased organically by 2 percent, while the operating EBITA margin increased, for the second quarter in a row, to 7.4 percent (7.3).
Covid-19 pandemic
As our markets have been affected by the second wave of the pandemic, the efficiency of our production has been challenged. Our management has been put to the test and I am again impressed by how our business units master the challenges of the pandemic. Despite higher sick-leave, the sudden November shutdown by municipalities in North Jutland and new restrictions in the UK and Ireland, we have managed to cope successfully with the challenges and in accordance with clear principles. In the short to medium term, demand in the consumer and industry markets may be affected and we are monitoring developments closely to act if and when the situation requires this.
Acquisitions
With a record balance sheet and a strong will to succeed in the next stage of the growth journey, we are stepping up our acquisition efforts. We are currently conducting active dialogues in several different geographies, focusing on acquiring good businesses that we can further improve to deliver on our high ambitions for growth. However, the ongoing pandemic limits the speed of some transaction processes, given societal and travel constraints.
Future prospects
As Europe's leading window group, Inwido's business concept is to develop and sell the market's best customized window and door solutions through a decentralized structure and with focus on the consumer-driven market. We will achieve this with a continued strong focus on assuming responsibility for people and society, as well as for the climate. Accordingly, inspired by our new climate ambition, we will halve our carbon dioxide emissions by 2030, to be completely carbon neutral by 2050. In 2020, we reduced our carbon dioxide emissions by slightly more than 7 percent per unit produced, an important step in these efforts. We now enter 2021 with comfort, strengthened by a record order backlog, great ambitions and inexhaustible energy. As always, however, we will achieve this with a considerable dose of humility for the unknown in general and for the continued impact of the Covid-19 pandemic on societies and people in particular.
MALMÖ, 10 FEBRUARY 2021
Henrik Hjalmarsson
President and CEO
Inwido AB (publ) | Year-end report | January-December 2020
Corporate registration number: 556633-3828
inwido
Group
Net sales and order intake
Consolidated net sales amounted to SEK 1,798 million (1,813) for the fourth quarter. Organic growth was 1 percent. A strong order backlog at the start of the quarter could not be fully translated into a corresponding sales increase over the quarter due to the impact of the pandemic, particularly in the form of greater than normal sick-leave and November shutdowns in municipalities in North Jutland where Inwido maintains its larger Danish production units. Net sales during the period January to December increased to SEK 6,681 million (6,631), equivalent to organic growth of 2 percent.
| Analysis of net sales | Oct-Dec 2020 (SEKm) | Oct-Dec 2019 (SEKm) | Jan-Dec 2020 (SEKm) | Jan-Dec 2019 (SEKm) |
|---|---|---|---|---|
| Net sales | -1% 1,798 | 1,813 | 1% 6,681 | 6,631 |
| Organic growth | 1% 14 | -85 | 2% 134 | -256 |
| Structural effects | 0% 0 | 0 | 0% 0 | 81 |
| Currency effects | -2% -29 | 34 | -1% -84 | 139 |
Reported order intake was 11 percent higher in the fourth quarter compared with the corresponding quarter in the preceding year. Order intake rose by 6 percent in Business Area North and by 18 percent in Business Area South. At the end of the period, the Group's order backlog had increased by 48 percent to SEK 1,142 million (770).
Net sales
RTM = Rolling Twelve Months
EBITA
During the fourth quarter, EBITA increased to SEK 230 million (186), our highest fourth quarter profit to date. The EBITA margin also rose, amounting to 12.8 percent (10.3). Items affecting comparability amounted to a negative net of SEK 1 million (25). See "Items affecting comparability" below for additional information.
Operating EBITA, that is EBITA before items affecting comparability, rose to SEK 231 million (211) and the operating EBITA margin rose to 12.9 percent (11.6). Somewhat higher volumes and good cost control helped improve profitability.
Over the period January-December, EBITA increased to SEK 712 million (621), also bringing a higher EBITA margin of 10.7 percent (9.4). Operating EBITA rose to SEK 729 million (646) and the equivalent EBITA margin rose to 10.9 percent (9.7).
For information on how EBITA has been affected by government subsidies, see the section "Effects of Covid-19 and reporting of government subsidies" below.
Net financial items
In the fourth quarter, net financial items amounted to a net expense of SEK 4 million (0), while the Group's net interest amounted to an expense of SEK 7 million (13). Financial income and expenses in the period January to December amounted to a negative net of SEK 71 million (negative 43). The discrepancy compared with the preceding year's net financial items is explained primarily by positive exchange rate effects during the preceding year, which could partly be offset by lower interest expenses in 2020.
Inwido AB (publ) | Year-end report | January-December 2020
Corporate registration number: 556633-3828
inwido
Profit before and after tax
Profit before tax for the fourth quarter increased to SEK 221 million (182). Income taxes amounted to a negative SEK 46 million (negative 49) and profit after tax rose to SEK 175 million (132). Over the period January to December, profit before tax rose to SEK 623 million (558). Income taxes amounted to a negative SEK 123 million (negative 125) and profit after tax rose to SEK 501 million (433).
Earnings per share
In the fourth quarter, earnings per share before and after dilution increased to SEK 3.02 (2.28). During the period January-December, earnings per share before and after dilution rose to SEK 8.64 (7.48).
Effects of Covid-19 and reporting of government subsidies
From an operational and financial perspective, the negative impact of the Covid-19 pandemic on the Group's operations is relatively limited, with some exceptions.
In Business Area North, it is primarily consumer sales entailing home visits and installation at the homes of end-customers, particularly in Finland, that have been impacted negatively by the Covid-19 pandemic. In addition, some of the business units, particularly in Sweden, have experienced operational disruptions from delayed deliveries of input goods and higher sick-leave than normal. In Business Area South, the UK and Irish business units were forced to restrict their activities because of the Covid-19 pandemic, particularly during the second quarter, while shutdowns in municipalities in North Jutland, where Inwido maintains its larger Danish production units, affected capacity and efficiency there in November.
Government subsidies related to the Covid-19 pandemic amounted to SEK 7 million in the fourth quarter and are reported as a cost reduction. Most of these subsidies were received by the Danish business units as part of the Danish government's efforts to safeguard the continuation of apprentice and trainee positions in progress during the Covid-19 pandemic. Over the 2020 full year, government subsidies related to Covid-19 amounted to SEK 25 million, of which more than half pertained to the operations in the UK and Ireland, where these helped us retain employees despite the uncertainty surrounding the impact of the pandemic. Temporary respites with taxes and fees related to the Covid-19 pandemic totalled SEK 8 million as of 31 December 2020 and are booked as non-interest-bearing liabilities.
Items affecting comparability
Items affecting comparability that are non-recurring and have a significant impact on profit are important in understanding the underlying development of operations. Expenses relate primarily to acquisition-related costs and restructuring measures during a consolidation phase, in which the company enhances efficiency through, for example, closures or reorganization of production facilities and sales units. These expenses primarily consist of impairment of assets, personnel costs and other external expenses.
In the fourth quarter, items affecting comparability amounted to a negative net of SEK 1 million (25). For the period January-December, the items affecting comparability amounted to a negative net of SEK 16 million (25), comprising impairments of key projects and structural measures as a consequence of the Covid-19 pandemic.
Gross investments, depreciation, amortization and impairment
Gross investments in tangible fixed assets decreased to SEK 43 million (99) in the fourth quarter. Amortization, depreciation and impairment totalled SEK 69 million (82). For the period January-December, gross investments in tangible fixed assets amounted to SEK 167 million (210). Amortization, depreciation and impairment totalled SEK 255 million (268).
Cash flow
Cash flow from operating activities after changes in working capital in the fourth quarter amounted to SEK 337 million (393). For the period January-December, cash flow from operating activities after changes in working capital increased to SEK 1,209 million (926). The deviation from the previous year is primarily explained by improved operating profit combined with less working capital being tied up.
Cash flow from investing activities in the fourth quarter was negative in the amount of SEK 46 million, (negative 109). For the period January-December, cash flow from investing activities was a negative SEK 180 million (negative 274). The deviation from the preceding year is mainly explained by a lower level of investment in 2020, as well as by acquisitions made in the corresponding period in the preceding year.
Cash flow from financing activities amounted to a negative SEK 65 million (negative 324) in the fourth quarter. During the period January-December, cash flow from financing activities amounted to a negative SEK 111 million (negative 574). The discrepancy compared with the preceding year is primarily explained by the resolution of the Annual General Meeting (in line with the Board of Directors' proposal) not to implement a dividend because of the Covid-19 pandemic, as well by bank loan amortizations during the preceding year.
Inwido AB (publ) | Year-end report | January-December 2020
Corporate registration number: 556633-3828
inwido
Financial position and liquidity
Inwido's principal financing consists of bank loans based on credit agreements expiring in the period 2022-2025. The aforementioned credit agreement includes financial covenants that are followed up on a quarterly basis. Inwido meets the terms of existing credit agreements.
The Group's net debt at the end of the period amounted to SEK 740 million (1,711) excluding IFRS 16 and to SEK 1,096 million (2,075) including IFRS 16. The lower net debt compared with the corresponding period in the preceding year is primarily explained by continued strong operating cash flow, including reduced working capital.
At the end of the period, indebtedness, calculated as interest-bearing net debt/operating EBITDA, was 0.9 (2.2) excluding IFRS 16, and 1.1 (2.4) including IFRS 16. Net debt was reduced by SEK 971 million in 2020. Consolidated cash and equivalents were SEK 1,133 million (243) at the end of the period. Available funds, including unutilized credit facilities, amounted to SEK 2,598 million (1,416).
Seasonal variations
Inwido's operations are affected by seasonal fluctuations. The weakest period is the first quarter, which normally accounts for about 20 percent of annual sales. The second and third quarters are normally of equal strength and combined account for slightly more than 50 percent of annual sales, while the last quarter of the year is normally the strongest with slightly less than 30 percent of annual sales. The largest seasonal variations are within the Consumer market, although sales to the Industry market are also dependent on the season and weather.
Employees
The number of employees averaged 4,345 (4,356) in the period January-December 2020.
Parent Company
The Parent Company, Inwido AB (publ), is purely a holding company with no operations of its own. The Parent Company's profit mainly reflects the net of revenues for joint Group services and deductions for wages, other remunerations and interest expenses.
Shares and share capital
Share capital at 31 December 2020 amounted to SEK 231,870,112 and the number of shares totalled 57,967,528. The company has one (1) class of shares. Each share entitles the holder to one vote at general meetings. At the end of the period, the closing price was SEK 120.50 and the company's market capitalization was SEK 6,985 million. At the end of the period, there was a total of 10,334 shareholders.
Pledged assets and contingent liabilities
No significant changes in pledged assets or contingent liabilities occurred during the period.
Nomination Committee
The members of the Nomination Committee shall include one representative apiece for each of the three largest shareholders in terms of voting rights listed in the share register maintained by Euroclear Sweden as per 31 August of the year preceding the year in which the Annual General Meeting is held, plus the Chairman of the Board. The member representing the largest shareholder in terms of voting rights shall be appointed chairman of the Nomination Committee. Based on the ownership structure as of 31 August 2020, the three largest shareholders in Inwido were asked to participate in the nomination process for 2021. In addition to the Chairman of the Board, Thomas Wuolikainen from Fjärde AP-fonden (chairman of the Nomination Committee), Ulrik Grönvall from Swedbank Robur Fonder and Joel Eklund of the Eklund family were appointed.
Annual General Meeting
The Annual General Meeting will be held on 6 May 2021 at 3.00 p.m. CET in Malmö, Sweden. The 2020 Annual Report will be available via Inwido's website, www.inwido.com, and at the company's headquarters from the week commencing Monday 12 April 2021. Shareholders wishing to attend the Meeting must be recorded in the share register by 28 April 2021. The share register is maintained by Euroclear Sweden AB. Shareholders whose shares are nominee registered must temporarily register the shares in their own name to be entitled to attend the Meeting. If you are a shareholder and wish to make such re-registration, you need to inform your nominee so that the shares are listed in the share register in good time before 28 April 2021. Notice of attendance shall be submitted to Inwido's headquarters no later than 28 April 2021 at 4.00 p.m. CET. The address is Inwido AB (publ), Engelbrektsgatan 15, SE-211 33 Malmö, Sweden, or e-mail address [email protected]
Inwido AB (publ) | Year-end report | January-December 2020
Corporate registration number: 556633-3828
inwido
Dividend proposal
In line with the dividend policy and taking the capital structure into account, the Board of Directors proposes that the dividend for the 2020 financial year be set at SEK 4.50 per share (0). The proposed record date for entitlement to dividends is 10 May 2021. If the Annual General Meeting approves the proposal, it is anticipated that the dividend will be paid on 14 May 2021.
Events after the end of the period
The Nomination Committee has proposed to the 2021 Annual General Meeting that Per Bertland be elected as the new Chairman of the Board with Georg Brunstam having declined re-election.
Future prospects
As Europe's leading window group, Inwido's business concept is to develop and sell the market's best customized window and door solutions through a decentralized structure and with focus on the consumer-driven market. We will achieve this with a continued strong focus on assuming responsibility for people and society, as well as for the climate. Accordingly, inspired by our new climate ambition, we will halve our carbon dioxide emissions by 2030, to be completely carbon neutral by 2050. In 2020, we reduced our carbon dioxide emissions by slightly more than 7 percent per unit produced, an important step in these efforts. We now enter 2021 with comfort, strengthened by a record order backlog, great ambitions and inexhaustible energy. As always, however, we will achieve this with a considerable dose of humility for the unknown in general and for the continued impact of the Covid-19 pandemic on societies and people in particular.
Malmö, 10 February 2021
The Board of Directors of Inwido AB (publ)
This year-end report has not been subject to review by the Company's auditors.
Inwido AB (publ) | Year-end report | January–December 2020
Corporate registration number: 556633-3828
inwido
Inwido's operations and segments
Inwido improves people's lives indoors with windows and doors. As Europe's leading window group, Inwido's business concept is to develop and sell the market's best customized window and door solutions through a decentralized structure and with focus on the consumer-driven market, in order to create long-term sustainable growth, organically and through acquisitions.
Inwido consists of 28 business units with approximately 4,300 employees in 11 countries. In 2020, the Group achieved sales of SEK 6.7 billion with an operating EBITA margin of 10.9 percent.
Inwido divides its operations into the North and South operating segments. Within these two operating segments, Inwido conducts operations within two different market segments, the Consumer and Industry markets. Sales are made through direct sales, installers, retailers such as builders' merchants and DIY chains, building companies and manufacturers of prefabricated homes.
In 2020, sales to the Consumer market accounted for 73 percent of total net sales, while sales to the Industry market accounted for about 27 percent.
External net sales split between operating segments, LTM (SEKm)
External net sales split between market segments, LTM
Inwido AB (publ) | Year-end report | January–December 2020
Corporate registration number: 556633-3828
inwido
Business Area North – increased order intake and continued strengthened margin
Net sales for the fourth quarter amounted to SEK 994 million (1,027). Organic sales growth was a negative 2 percent for the quarter.
Order intake increased by 6 percent during the quarter. Business Area North’s order backlog was 27 percent higher at the end of the period than at the end of the corresponding period in the preceding year.
The Swedish and Norwegian business units reported growth in sales in a generally positive consumer market. In Finland, consumers were more cautious, particularly in the channel based on home visits. In some of the Swedish units, sick-leave was higher than normal due to Covid-19 restrictions. This impacted efficiency and opportunities to complete deliveries in pace with rising order intake.
External net sales split between market segments, LTM
Over the fourth quarter, the operating EBITA margin rose to 7.4 percent (7.3).
During the period January-December, net sales amounted to SEK 3,658 million (3,750), which was 2 percent lower than in the corresponding period in the preceding year. The operating EBITA margin for the period January-December was unchanged at 6.0 percent.
| MSEK | Oct-Dec 2020 | Oct-Dec 2019 | Change | Jan-Dec 2020 | Jan-Dec 2019 | Change |
|---|---|---|---|---|---|---|
| Net sales | 994 | 1,027 | -3% | 3,658 | 3,750 | -2% |
| Operating gross profit | 212 | 233 | -9% | 774 | 844 | -8% |
| Operating gross profit margin (%) | 21.3 | 22.7 | 21.2 | 22.5 | ||
| Operating EBITA | 73 | 75 | -3% | 218 | 226 | -3% |
| Operating EBITA margin (%) | 7.4 | 7.3 | 6.0 | 6.0 |
Business Area South – increased sales and record order backlog
Net sales for the fourth quarter rose to SEK 768 million (747), which was 3 percent higher compared with the corresponding period in the preceding year. Organic net sales were 5 percent higher.
Order intake increased by 18 percent during the quarter and Business Area South’s order backlog at the end of the period was 82 percent higher compared with the preceding year, with most of the business units contributing to the higher order backlog.
The strong e-commerce trend continues, as reflected in e-Commerce’s organic growth of 32 percent for the quarter. The business unit ended the quarter with a 55 percent higher order book compared with the corresponding point in the preceding year. The business unit accounted for 12 percent of the Group’s sales over the full year. During the quarter, the larger Danish units were negatively affected by Covid-19 related shutdowns, while the UK and Irish business units reported lower sales compared with the corresponding period in the preceding year.
External net sales split between market segments, LTM
The operating EBITA margin for the fourth quarter decreased to 18.8 percent (19.7), partly due to a change in the sales mix and the above-mentioned shutdowns in Denmark. During the period January-December, net sales rose to SEK 2,872 million (2,713), which was 6 percent higher than for the corresponding period in the preceding year. The operating EBITA margin for the period January-December rose to 18.9 percent (16.9).
| MSEK | Oct-Dec 2020 | Oct-Dec 2019 | Change | Jan-Dec 2020 | Jan-Dec 2019 | Change |
|---|---|---|---|---|---|---|
| Net sales | 768 | 747 | 3% | 2,872 | 2,713 | 6% |
| Operating gross profit | 248 | 244 | 2% | 918 | 831 | 10% |
| Operating gross profit margin (%) | 32.3 | 32.7 | 31.9 | 30.6 | ||
| Operating EBITA | 144 | 147 | -2% | 543 | 458 | 19% |
| Operating EBITA margin (%) | 18.8 | 19.7 | 18.9 | 16.9 |
Inwido AB (publ) | Year-end report | January-December 2020
Corporate registration number: 556633-3828
inwido
Key ratios, Group
| SEKm (unless otherwise stated) | Oct-Dec 2020 | Oct-Dec 2019 | Jan-Dec 2020 | Jan-Dec 2019 |
|---|---|---|---|---|
| Income measures | ||||
| Net sales | 1,798 | 1,813 | 6,681 | 6,631 |
| Gross profit | 482 | 464 | 1,736 | 1,694 |
| EBITDA | 285 | 263 | 939 | 870 |
| Operating EBITDA | 286 | 270 | 956 | 876 |
| EBITA | 230 | 186 | 712 | 621 |
| Operating EBITA | 231 | 211 | 729 | 646 |
| Operating profit (EBIT) | 226 | 182 | 695 | 601 |
| Margin measures | ||||
| Gross margin (%) | 26.8 | 25.6 | 26.0 | 25.5 |
| EBITDA margin (%) | 15.8 | 14.5 | 14.1 | 13.1 |
| Operating EBITDA margin (%) | 15.9 | 14.9 | 14.3 | 13.2 |
| EBITA margin (%) | 12.8 | 10.3 | 10.7 | 9.4 |
| Operating EBITA margin (%) | 12.9 | 11.6 | 10.9 | 9.7 |
| Operating margin (EBIT) (%) | 12.6 | 10.0 | 10.4 | 9.1 |
| Capital structure | ||||
| Net debt | 1,096 | 2,075 | 1,096 | 2,075 |
| Net debt (excl IFRS 16) | 740 | 1,711 | 740 | 1,711 |
| Net debt/operating EBITDA, multiple | 1.1 | 2.4 | 1.1 | 2.4 |
| Net debt/operating EBITDA, multiple (excl IFRS 16) | 0.9 | 2.2 | 0.9 | 2.2 |
| Net debt/equity ratio, multiple | 0.3 | 0.5 | 0.3 | 0.5 |
| Interest coverage ratio, multiple | 19.8 | 11.9 | 9.6 | 8.9 |
| Shareholders' equity | 4,155 | 3,776 | 4,155 | 3,776 |
| Equity/assets ratio (%) | 52 | 51 | 52 | 51 |
| Operating capital | 5,251 | 5,850 | 5,251 | 5,850 |
| Return measures | ||||
| Return on shareholders' equity (%) | 12.4 | 11.9 | 12.4 | 11.9 |
| Return on operating capital (%) | 12.2 | 9.9 | 12.2 | 9.9 |
| Share data (number of shares in thousands) | ||||
| Earnings per share before dilution, SEK | 3.02 | 2.28 | 8.64 | 7.48 |
| Earnings per share after dilution, SEK | 3.02 | 2.28 | 8.64 | 7.48 |
| Shareholders' equity per share before dilution, SEK | 71.68 | 65.13 | 71.68 | 65.13 |
| Shareholders' equity per share after dilution, SEK | 71.68 | 65.13 | 71.68 | 65.13 |
| Cash flow per share before dilution, SEK | 5.81 | 6.78 | 20.86 | 15.96 |
| Cash flow per share after dilution, SEK | 5.81 | 6.78 | 20.86 | 15.96 |
| Number of shares before dilution | 57,968 | 57,968 | 57,968 | 57,968 |
| Number of shares after dilution | 57,968 | 57,968 | 57,968 | 57,968 |
| Average number of shares | 57,968 | 57,968 | 57,968 | 57,968 |
Inwido AB (publ) | Year-end report | January-December 2020
Corporate registration number: 556633-3828
inwido
Quarterly review, Group
Key ratios
| SEKm (unless otherwise stated) | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | Q4 2019 | Q3 2019 | Q2 2019 | Q1 2019 | Q4 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Net sales | 1,798 | 1,716 | 1,719 | 1,448 | 1,813 | 1,665 | 1,710 | 1,443 | 1,864 |
| Operating EBITA | 231 | 247 | 202 | 48 | 211 | 203 | 187 | 45 | 215 |
| Operating EBITA margin (%) | 12.9 | 14.4 | 11.8 | 3.3 | 11.6 | 12.2 | 10.9 | 3.1 | 11.5 |
| EBITA | 230 | 240 | 193 | 48 | 186 | 203 | 187 | 45 | 215 |
| EBITA margin (%) | 12.8 | 14.0 | 11.2 | 3.3 | 10.3 | 12.2 | 10.9 | 3.1 | 11.5 |
| Return on shareholders’ equity (%) | 12.4 | 11.6 | 11.1 | 10.8 | 11.9 | 12.1 | 12.0 | 12.7 | 13.2 |
| Earnings per share before dilution,SEK | 3.02 | 3.05 | 2.46 | 0.10 | 2.28 | 2.56 | 2.05 | 0.58 | 2.31 |
| Earnings per share after dilution,SEK | 3.02 | 3.05 | 2.46 | 0.10 | 2.28 | 2.56 | 2.05 | 0.58 | 2.31 |
| Shareholders’ equity per share before dilution, SEK | 71.68 | 71.27 | 67.94 | 68.37 | 65.13 | 64.52 | 61.28 | 61.01 | 60.31 |
| Shareholders’ equity per share after dilution, SEK | 71.68 | 71.27 | 67.94 | 68.37 | 65.13 | 64.44 | 61.17 | 60.90 | 60.20 |
| Cash flow per share before dilution, SEK | 5.81 | 6.17 | 8.32 | 0.56 | 6.78 | 5.51 | 2.81 | 0.87 | 5.03 |
| Cash flow per share after dilution, SEK | 5.81 | 6.17 | 8.32 | 0.56 | 6.78 | 5.50 | 2.80 | 0.87 | 5.02 |
| Share price, SEK | 120.50 | 91.30 | 64.40 | 57.20 | 72.10 | 53.00 | 64.65 | 55.20 | 55.60 |
Net sales per segment
| SEKm | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | Q4 2019 | Q3 2019 | Q2 2019 | Q1 2019 | Q4 2018 |
|---|---|---|---|---|---|---|---|---|---|
| North | 994 | 894 | 970 | 801 | 1,027 | 902 | 973 | 848 | 1,089 |
| South | 768 | 790 | 711 | 603 | 747 | 724 | 690 | 552 | 730 |
| Group-wide, eliminations and other | 37 | 32 | 39 | 43 | 39 | 39 | 47 | 43 | 45 |
| Total | 1,798 | 1,716 | 1,719 | 1,448 | 1,813 | 1,665 | 1,710 | 1,443 | 1,864 |
Inwido AB (publ) | Year-end report | January–December 2020
Corporate registration number: 556633-3828
inwido
Key data for the segments
| Amounts in SEKm | North | South | Group-wide, eliminations and other | IFRS 16 effect | Group | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| Oct-Dec | Oct-Dec | Oct-Dec | Oct-Dec | Oct-Dec | Oct-Dec | Oct-Dec | Oct-Dec | Oct-Dec | Oct-Dec | |
| 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |
| Net sales | 994 | 1,027 | 768 | 747 | 37 | 39 | 0 | 0 | 1,798 | 1,813 |
| Operating gross profit | 212 | 233 | 248 | 244 | 19 | 8 | 2 | 2 | 482 | 486 |
| Operating gross profit margin (%) | 21.3 | 22.7 | 32.3 | 32.7 | - | - | - | - | 26.8 | 26.8 |
| Operating EBITA | 73 | 75 | 144 | 147 | 10 | -14 | 3 | 3 | 231 | 211 |
| Operating EBITA margin (%) | 7.4 | 7.3 | 18.8 | 19.7 | - | - | - | - | 12.9 | 11.6 |
| Amounts in SEKm | North | South | Group-wide, eliminations and other | IFRS 16 effect | Group | |||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Jan-Dec | Jan-Dec | Jan-Dec | Jan-Dec | Jan-Dec | Jan-Dec | Jan-Dec | Jan-Dec | Jan-Dec | Jan-Dec | |
| 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |
| Net sales | 3,658 | 3,750 | 2,872 | 2,713 | 150 | 168 | 0 | 0 | 6,681 | 6,631 |
| Operating gross profit | 774 | 844 | 918 | 831 | 35 | 36 | 10 | 8 | 1,737 | 1,718 |
| Operating gross profit margin (%) | 21.2 | 22.5 | 31.9 | 30.6 | - | - | - | - | 26.0 | 25.9 |
| Operating EBITA | 218 | 226 | 543 | 458 | -45 | -50 | 12 | 12 | 729 | 646 |
| Operating EBITA margin (%) | 6.0 | 6.0 | 18.9 | 16.9 | - | - | - | - | 10.9 | 9.7 |
Inwido AB (publ) | Year-end report | January-December 2020
Corporate registration number: 556633-3828
inwido
Summary consolidated statement of comprehensive income
| Amounts in SEKm | Oct-Dec 2020 | Oct-Dec 2019 | Jan-Dec 2020 | Jan-Dec 2019 |
|---|---|---|---|---|
| Net sales | 1,798.5 | 1,812.6 | 6,680.9 | 6,630.6 |
| Cost of goods sold | -1,316.5 | -1,348.4 | -4,944.6 | -4,936.6 |
| Gross profit | 481.9 | 464.2 | 1,736.3 | 1,693.9 |
| Other operating income | 8.9 | 6.7 | 24.0 | 22.0 |
| Selling expenses | -147.5 | -167.6 | -601.6 | -640.9 |
| Administrative expenses | -111.7 | -101.3 | -424.7 | -416.7 |
| Research and development expenses | -8.6 | -17.7 | -38.4 | -53.7 |
| Other operating expenses | 2.4 | -3.1 | -2.8 | -4.9 |
| Share of profit of associated companies | 0.4 | 0.7 | 1.8 | 1.7 |
| Operating profit (EBIT) | 225.8 | 182.0 | 694.6 | 601.4 |
| Financial income | 7.3 | 16.4 | 1.3 | 27.4 |
| Financial expenses | -11.8 | -16.7 | -72.5 | -70.4 |
| Net financial items | -4.4 | -0.2 | -71.1 | -43.0 |
| Profit before tax | 221.4 | 181.7 | 623.5 | 558.4 |
| Tax expense | -46.3 | -49.4 | -122.9 | -125.2 |
| Profit after tax | 175.1 | 132.3 | 500.6 | 433.2 |
| Other comprehensive income | ||||
| Items reallocated to, or that can be reallocated to profit for the year | ||||
| Translation differences, foreign operations | -151.2 | -96.2 | -121.1 | 15.6 |
| Total other comprehensive income after tax | 23.9 | 36.1 | 379.6 | 448.8 |
| Profit after tax attributable to: | ||||
| Parent Company shareholders | 175.1 | 132.3 | 500.6 | 433.2 |
| Non-controlling interest | 0.0 | 0.0 | 0.1 | 0.0 |
| Other comprehensive income attributable to: | ||||
| Parent Company shareholders | 23.9 | 33.6 | 379.5 | 448.5 |
| Non-controlling interest | 0.0 | 2.5 | 0.1 | 0.3 |
| Average number of shares before dilution | 57,967,528 | 57,967,528 | 57,967,528 | 57,967,528 |
| Average number of shares after dilution | 57,967,528 | 57,967,528 | 57,967,528 | 58,036,824 |
| Number of shares before dilution | 57,967,528 | 57,967,528 | 57,967,528 | 57,967,528 |
| Number of shares after dilution | 57,967,528 | 57,967,528 | 57,967,528 | 57,967,528 |
| Earnings per share before dilution, SEK | 3.02 | 2.28 | 8.64 | 7.48 |
| Earnings per share after dilution, SEK | 3.02 | 2.28 | 8.64 | 7.48 |
Inwido AB (publ) | Year-end report | January-December 2020
Corporate registration number: 556633-3828
inwido
Summary consolidated statement of financial position
| Amounts in SEKm | Dec 2020 | Dec 2019 |
|---|---|---|
| ASSETS | ||
| Intangible assets | 4,490.5 | 4,650.4 |
| Tangible assets | 1,260.8 | 1,272.8 |
| Participations in associated companies | 16.2 | 14.4 |
| Financial assets | 2.3 | 2.7 |
| Deferred tax assets | 47.3 | 47.2 |
| Other non-current assets | 28.4 | 37.0 |
| Total non-current assets | 5,845.5 | 6,024.6 |
| Inventories | 447.0 | 494.5 |
| Trade receivables | 401.3 | 511.9 |
| Other receivables | 190.4 | 196.8 |
| Cash and equivalents | 1,132.7 | 242.8 |
| Total current assets | 2,171.4 | 1,446.0 |
| TOTAL ASSETS | 8,016.9 | 7,470.5 |
| EQUITY AND LIABILITIES | ||
| Share capital | 231.9 | 231.9 |
| Other capital provided | 946.0 | 946.0 |
| Other reserves | 106.1 | 227.2 |
| Profit brought forward including profit for the year | 2,871.0 | 2,370.5 |
| Shareholders' equity attributable to Parent Company shareholders | 4,155.0 | 3,775.6 |
| Non-controlling interest | 0.0 | 0.0 |
| Total equity | 4,155.1 | 3,775.5 |
| Interest-bearing liabilities | 1,849.2 | 1,926.8 |
| Leasing liabilities | 285.7 | 285.3 |
| Deferred tax liabilities | 119.9 | 119.2 |
| Non-interest-bearing liabilities | 4.4 | 12.5 |
| Total non-current liabilities | 2,259.2 | 2,343.8 |
| Interest-bearing liabilities | 38.7 | 41.7 |
| Leasing liabilities | 72.2 | 81.6 |
| Non-interest-bearing provisions | 33.0 | 31.3 |
| Non-interest-bearing liabilities | 1,458.8 | 1,196.6 |
| Total current liabilities | 1,602.6 | 1,351.2 |
| TOTAL EQUITY AND LIABILITIES | 8,016.9 | 7,470.5 |
Inwido AB (publ) | Year-end report | January–December 2020
Corporate registration number: 556633-3828
inwido
Summary consolidated statement of changes in equity
Shareholders' equity attributable to Parent Company shareholders
| Amounts in SEKm | Share capital | Other capital provided | Translation reserve | Retained earnings | Total | Non-controlling interests | Total equity |
|---|---|---|---|---|---|---|---|
| Equity, opening balance 2019-01-01 | 231.9 | 946.0 | 211.8 | 2,106.2 | 3,495.9 | 5.1 | 3,501.0 |
| Adjustment in accordance with IFRS16 | -29.0 | -29.0 | 0.0 | -29.0 | |||
| Comprehensive income | |||||||
| Profit for the period | 433.2 | 433.2 | 0.0 | 433.2 | |||
| Change in translation reserve for the period | 15.3 | 15.3 | 0.2 | 15.6 | |||
| Total comprehensive income for the period | 15.3 | 433.2 | 448.5 | 0.3 | 448.8 | ||
| Transactions with the Group's owners | |||||||
| Dividends paid to Parent Company shareholders | -144.9 | -144.9 | 0.0 | -144.9 | |||
| Acquisition/divestment of participation in non-controlling interests | 5.1 | 5.1 | -5.4 | -0.3 | |||
| Other changes in wealth | 0.0 | 0.0 | - | 0.0 | |||
| Total transactions with the Group's owners | - | - | - | -139.8 | -139.8 | -5.4 | -145.2 |
| Equity, closing balance 2019-12-31 | 231.9 | 946.0 | 227.2 | 2,370.5 | 3,775.6 | 0.0 | 3,775.5 |
| Equity, opening balance 2020-01-01 | 231.9 | 946.0 | 227.2 | 2,370.5 | 3,775.6 | 0.0 | 3,775.5 |
| Comprehensive income | |||||||
| Profit for the period | 500.6 | 500.6 | 0.1 | 500.6 | |||
| Change in translation reserve for the period | -121.1 | -121.1 | 0.0 | -121.1 | |||
| Total comprehensive income for the period | -121.1 | 500.6 | 379.5 | 0.1 | 379.6 | ||
| Transactions with the Group's owners | |||||||
| Total transactions with the Group's owners | - | - | - | - | - | - | - |
| Equity, closing balance 2020-12-31 | 231.9 | 946.0 | 106.1 | 2,871.0 | 4,155.0 | 0.0 | 4,155.1 |
Inwido AB (publ) | Year-end report | January-December 2020
Corporate registration number: 556633-3828
inwido
Summary consolidated cash flow statement
| Amounts in SEKm | Oct-Dec 2020 | Oct-Dec 2019 | Jan-Dec 2020 | Jan-dec 2019 |
|---|---|---|---|---|
| Operating activities | ||||
| Profit before tax | 221.4 | 181.5 | 623.5 | 558.4 |
| Depreciation/amortisation and impairment of assets | 69.5 | 81.7 | 255.0 | 268.5 |
| Adjustment for items not included in cash flow: | -32.3 | 16.9 | 15.1 | 10.0 |
| Income tax paid | -79.5 | -55.2 | -118.2 | -123.2 |
| Cash flow from operating activities before changes in working capital | 179.0 | 225.0 | 775.4 | 713.7 |
| Changes in working capital | ||||
| Increase(-)/decrease(+) in inventories | 29.8 | 51.8 | 34.6 | 51.6 |
| Increase(-)/decrease(+) in operating receivables | 225.8 | 245.4 | 103.6 | 144.1 |
| Increase(+)/decrease(-) in operating liabilities | -97.6 | -129.0 | 295.7 | 16.2 |
| Cash flow from operating activities | 337.0 | 393.2 | 1,209.3 | 925.6 |
| Investing activities | ||||
| Acquisitions of tangible fixed assets | -43.1 | -98.5 | -166.9 | -210.2 |
| Divestments of tangible fixed assets | 0.4 | 1.7 | 3.8 | 5.3 |
| Acquisitions of intangible assets | -1.6 | -10.7 | -14.3 | -29.9 |
| Acquisitions of subsidiary, net of cash | 0.0 | 0.0 | 0.0 | -37.0 |
| Change in financial assets | -1.2 | -1.0 | -2.4 | -1.9 |
| Cash flow from investing activities | -45.6 | -108.5 | -179.7 | -273.7 |
| Financing activities | ||||
| Dividends to parent company shareholders | 0.0 | 0.0 | 0.0 | -144.9 |
| Change in interest-bearing liabilities | -65.4 | -323.8 | -111.1 | -429.3 |
| Cash flow from financing activities | -65.4 | -323.8 | -111.1 | -574.1 |
| Cash flow for the year | 226.0 | -39.2 | 918.5 | 77.8 |
| Cash and equivalents at the beginning of the year | 936.1 | 286.8 | 242.8 | 165.0 |
| Exchange rate difference in cash and equivalents | -29.4 | -4.8 | -28.5 | 0.0 |
| Cash and equivalents at the end of the year | 1,132.7 | 242.8 | 1,132.7 | 242.8 |
Inwido AB (publ) | Year-end report | January-December 2020
Corporate registration number: 556633-3828
inwido
Summary income statement, Parent Company
| Amounts in SEKm | Oct-Dec 2020 | Oct-Dec 2019 | Jan-Dec 2020 | Jan-Dec 2019 |
|---|---|---|---|---|
| Net sales | 21.0 | 16.5 | 73.7 | 65.5 |
| Gross profit | 21.0 | 16.5 | 73.7 | 65.5 |
| Administrative expenses | -15.3 | -40.7 | -76.8 | -93.5 |
| Other operating income | 0.0 | 0.0 | 0.6 | 1.4 |
| Other operating expenses | 0.0 | 0.0 | 0.0 | 0.0 |
| Operating profit | 5.6 | -24.2 | -2.5 | -26.6 |
| Result from financial items: | ||||
| Participations in earnings of Group companies | 0.6 | 10.8 | 0.6 | 21.4 |
| Other interest income and similar profit/loss items | 14.3 | 31.1 | 47.4 | 91.3 |
| Interest expense and similar profit items | 11.6 | -6.4 | -39.8 | -43.1 |
| Profit after financial items | 32.1 | 11.3 | 5.6 | 43.0 |
| Group contribution | 36.7 | 91.7 | 36.7 | 91.7 |
| Difference between depreciation/ amortisation according to plan and reported depreciation/amortisation | 0.1 | 0.0 | 0.1 | 0.0 |
| Profit before tax | 68.9 | 103.0 | 42.4 | 134.7 |
| Tax expense | -14.4 | -18.0 | -8.4 | -24.3 |
| Profit for the period | 54.4 | 85.0 | 34.0 | 110.4 |
Inwido AB (publ) | Year-end report | January-December 2020
Corporate registration number: 556633-3828
inwido
Summary balance sheet, Parent Company
| Amounts in SEKm | Dec 2020 | Dec 2019 |
|---|---|---|
| ASSETS | ||
| Intangible non-current assets | 0.2 | 11.1 |
| Tangible non-current assets | 1.7 | 2.0 |
| Participations in Group companies | 2,324.4 | 2,251.1 |
| Participations in associated companies | 1.0 | 1.0 |
| Receivables from Group companies | 1,210.4 | 1,812.6 |
| Deferred tax asset | 7.8 | 6.8 |
| Other non-current assets | 0.0 | 0.0 |
| Total non-current assets | 3,545.6 | 4,084.6 |
| Receivables from Group companies | 80.9 | 72.5 |
| Prepaid expenses and accrued income | 4.0 | 4.2 |
| Other receivables | 4.6 | 0.0 |
| Cash and equivalents | 1,041.1 | 159.1 |
| Total current assets | 1,130.6 | 235.8 |
| TOTAL ASSETS | 4,676.1 | 4,320.4 |
| EQUITY AND LIABILITIES | ||
| Equity | 1,559.3 | 1,525.3 |
| Total equity | 1,559.3 | 1,525.3 |
| Accumulated depreciation/amortisation in addition to plan | 0.2 | 0.3 |
| Untaxed reserves | 0.2 | 0.3 |
| Liabilities to Group companies | 1,222.0 | 853.0 |
| Interest-bearing liabilities | 1,846.6 | 1,893.1 |
| Deferred tax liabilities | 0.0 | 0.0 |
| Other liabilities | 10.9 | 9.3 |
| Total non-current liabilities | 3,079.5 | 2,755.4 |
| Liabilities to Group companies | 0.2 | 0.4 |
| Interest-bearing liabilities | 0.0 | 0.0 |
| Non-interest-bearing liabilities | 37.0 | 39.1 |
| Total current liabilities | 37.2 | 39.5 |
| TOTAL EQUITY AND LIABILITIES | 4,676.1 | 4,320.4 |
Inwido AB (publ) | Year-end report | January–December 2020
Corporate registration number: 556633-3828
inwido
Notes
Note 1 – Accounting principles
This summary consolidated interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and applicable provisions in the Annual Accounts Act. The interim report for the Parent Company has been prepared in accordance with the Annual Accounts Act, Chapter 9, Interim Financial Reporting. The Group applies International Financial Reporting Standards (IFRS) as adopted by the EU. The Group and the Parent Company have applied the same accounting principles and calculation methods as in the 2019 Annual Report.
In addition to the financial statements, disclosures in accordance with IAS 34.16A are also presented in other parts of the interim report.
The financial reports are presented in SEK, rounded off to the nearest hundred thousand, unless otherwise stated. This process of rounding off can result in the total of the sub-items in one or more rows or columns not corresponding to the sum total for the row or column.
In the accounts, government subsidies related to the Covid-19 pandemic are treated as a reduction pertaining to personnel costs. Temporary respites on paying taxes and fees are booked as a non-interest-bearing liability when a decision on deferral has been obtained.
Note 2 – Risks and uncertainties
Inwido’s operations are subject to various risks. Operational risks can be divided into operational, financial and external risks. Operational risks involve, among other things, risks related to losses on account receivable, warranty and product liability, key personnel, interruptions in production, IT systems, intellectual property rights, product development, restructuring, acquisitions and integration, insurance and corporate governance. The financial risks primarily involve changes in exchange rates and interest rates, liquidity risk, capacity to raise capital, financial credit risks and risks associated with goodwill. External risks involve, among other things, risks related to market trends, competition, commodity prices, political decisions, legal disputes, tax and environmental risks.
Risk management in Inwido is based on a structured process for the continuous identification and assessment of risks, their probabilities and potential impacts on the Group. The focus is on identifying controllable risks and managing them to thereby mitigate the overall level of risk in the operations. The Group’s risks are described in the 2019 Annual Report. Beyond these, no significant additional risks or uncertainties have arisen. See below for comments on Covid-19.
Inwido conducts operations in the UK and is monitoring developments surrounding Brexit carefully. Inwido’s operations in the UK are largely not dependent on imports and exports of goods and services. Combined with the fact that Inwido’s sales in the UK account for only about 5 percent of the Group’s total sales, Inwido estimates that the exit from the EU will not have a significant direct impact on the Group’s earnings.
The continued developments with regard to the Covid-19 pandemic are a major focus within Inwido and the company is doing its utmost to safeguard the health of our employees, our impact on the communities in which we operate, particularly in terms of limiting the spread of infection, and minimizing any adverse effects on our operations. From an operational and financial perspective, the negative impact of the Covid-19 pandemic on the Group’s operations has been relatively limited, with certain exceptions. In the current situation, it has become clear that consumers are tending to invest more in their homes, probably because more people are spending more time at home, which has generally benefited traditional sales, but particularly Inwido’s e-commerce operations.
In Business Area North, it is primarily consumer sales entailing home visits and installation at the homes of end-customers, particularly in Finland, that have been impacted negatively by the Covid-19 pandemic. In addition, certain Swedish business units have experienced some operational disruptions from delayed deliveries of input goods and higher sick-leave than normal. In Business Area South, the UK and Irish business units were forced to cut back their activities because of the Covid-19 pandemic, particularly early in the second quarter. During the fourth quarter, the larger Danish units were negatively affected by Covid-19 related shutdowns.
Inwido AB (publ) | Year-end report | January–December 2020
Corporate registration number: 556633-3828
inwido
Note 3 – Financial instruments
Financial instruments are valued at fair value in the Consolidated statement of comprehensive income. The balance sheet item ‘Financial investments’ contains the Group’s holdings of unlisted securities. The cost for these has been deemed to be a reasonable approximation of their value.
| Amounts in SEKm | Dec 2020 | Dec 2019 | ||
|---|---|---|---|---|
| Level 2 | Level 3 | Level 2 | Level 3 | |
| Assets | ||||
| Shares and participations | - | 2.3 | - | 2.7 |
| Non-current receivable – derivative | - | - | - | - |
| Current receivable – derivative | 1.3 | - | 0.0 | - |
| 1.3 | 2.3 | 0.0 | 2.7 | |
| Liabilities and provisions | ||||
| Non-current liability – derivative | 4.4 | - | 6.6 | - |
| Current liability – derivative | 2.0 | - | - | - |
| Current liability – acquisition related | - | - | - | - |
| Non-current liability – acquisition related | - | - | - | - |
| 6.4 | - | 6.6 | - |
Level 1 According to prices noted in an active market for the same instrument.
Level 2 Based on directly or indirectly observable market data not included in Level 1.
Level 3 Based on input data not observable in the market
Amounts in SEKm
| Shares and participations | Acquisition-related liabilities | |
|---|---|---|
| Fair value 2020-01-01 | 2.7 | - |
| Acquisition-related liabilities | - | - |
| Translation differences | 0.0 | - |
| Settled earn-out | - | - |
| Total recognized gains and losses: | ||
| - Reported in equity | - | - |
| - Reported in profit for the period* | 0.4 | - |
| Fair value 2020-12-31 | 2.3 | - |
| Fair value 2019-01-01 | 2.7 | 23.9 |
| Acquisition-related liabilities | - | - |
| Translation differences | -0.1 | 0.4 |
| Settled earn-out | - | -20.2 |
| Total recognized gains and losses: | ||
| - Reported in equity | - | - |
| - Reported in profit for the period* | 0.0 | -4.1 |
| Fair value 2019-12-31 | 2.7 | 0.0 |
*The change in the acquisition-related liability is reported in other operating income.
For a description of the measurement techniques and input data in the measurement of financial instruments at fair value, see Note 2 in the 2019 Annual Report. For other financial assets and liabilities in the Group, the carrying amounts represent a reasonable approximation of their fair values. For a specification of such financial assets and liabilities, please see Note 2 in the 2019 Annual Report.
Inwido AB (publ) | Year-end report | January–December 2020
Corporate registration number: 556633-3828
inwido
Note 4 – Distribution of income
Net sales by country
| Amounts in SEKm | Oct-Dec 2020 | Oct-Dec 2019 | Jan-Dec 2020 | Jan-Dec 2019 |
|---|---|---|---|---|
| Sweden | 564 | 554 | 2,085 | 2,012 |
| Denmark | 548 | 501 | 1,984 | 1,786 |
| Norway | 103 | 101 | 408 | 410 |
| Finland | 405 | 451 | 1,535 | 1,646 |
| Poland | 24 | 25 | 84 | 106 |
| UK | 96 | 108 | 333 | 422 |
| Ireland | 47 | 50 | 149 | 170 |
| Germany | 20 | 12 | 70 | 45 |
| Other | -9 | 10 | 32 | 35 |
| Total | 1,798 | 1,813 | 6,681 | 6,631 |
Net sales distribution between market segments by operating segment
| Amounts in SEKm | North | South | Other | Group-wide, eliminations and other | Group | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| Oct-Dec 2020 | Oct-Dec 2019 | Oct-Dec 2020 | Oct-Dec 2019 | Oct-Dec 2020 | Oct-Dec 2019 | Oct-Dec 2020 | Oct-Dec 2019 | Oct-Dec 2020 | Oct-Dec 2019 | |
| Net Sales | 994 | 1,027 | 768 | 747 | 93 | 94 | -56 | -56 | 1,798 | 1,813 |
| Consumer | 611 | 623 | 673 | 679 | 0 | 0 | - | - | 1,284 | 1,302 |
| Industry | 372 | 397 | 76 | 45 | 0 | 0 | - | - | 448 | 442 |
| Other | 9 | 7 | 13 | 17 | 44 | 44 | - | - | 67 | 68 |
| Internal sales | 2 | 0 | 6 | 6 | 49 | 50 | - | - | 0 | 0 |
| Amounts in SEKm | North | South | Other | Group-wide, eliminations and other | Group | |||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Jan-Dec 2020 | Jan-Dec 2019 | Jan-Dec 2020 | Jan-Dec 2019 | Jan-Dec 2020 | Jan-Dec 2019 | Jan-Dec 2020 | Jan-Dec 2019 | Jan-Dec 2020 | Jan-Dec 2019 | |
| Net Sales | 3,658 | 3,750 | 2,872 | 2,713 | 368 | 374 | -218 | -207 | 6,681 | 6,631 |
| Consumer | 2,171 | 2,260 | 2,532 | 2,472 | 0 | 0 | - | - | 4,703 | 4,732 |
| Industry | 1,446 | 1,460 | 271 | 171 | 0 | 0 | - | - | 1,717 | 1,631 |
| Other | 33 | 27 | 48 | 49 | 180 | 192 | - | - | 261 | 268 |
| Internal sales | 8 | 3 | 22 | 21 | 188 | 182 | - | - | 0 | 0 |
Inwido AB (publ) | Year-end report | January–December 2020
Corporate registration number: 556633-3828
inwido
Definitions of alternative key ratios not defined by IFRS
Inwido presents certain alternative financial key ratios beyond the conventional financial key ratios established by IFRS, in order to better understand the development of the operations and the financial status of the Inwido Group. Such key ratios should not, however, be considered a substitute for the key ratios required under IFRS. The alternative key ratios presented in this report are described below.
| Income measures | Calculation | Purpose |
|---|---|---|
| Organic growth | Net sales including acquired growth for the current period divided by net sales including pro forma acquired growth during the corresponding period in the preceding year. The change is adjusted for exchange rate fluctuations by applying the current period’s exchange rates to pro forma net sales during the corresponding period in the preceding year. | Organic growth excludes the effects of changes in the Group’s structure and exchange rates, enabling a comparison of net sales over time. |
| Operating gross profit | Gross profit before items affecting comparability. | Key ratio used to measure how much of net sales is left to cover other expenses. The key ratio is also adjusted for the impact of items affecting comparability to increase comparability over time. |
| Operating EBITDA | EBITDA before items affecting comparability. | This key ratio is used to measure cash flow from operating activities, regardless of the effects of financing and depreciation rates on non-current assets. The key ratio is also adjusted for the impact of items affecting comparability to increase comparability over time. The key ratio is a central component in the bank covenant Net debt/operating EBITDA. |
| EBITA | Operating profit after depreciation, amortization and impairment but before deduction for impairment of goodwill as well as amortization and impairment of other intangible assets that arose in conjunction with company acquisitions (Earnings Before Interest, Tax and Amortization). | This key ratio enables comparisons of profitability over time regardless of amortization and impairment of acquisition-related intangible assets, and regardless of the corporate tax rate and the company’s financing structure. Depreciation of tangible assets is, however, included, this being a measure of resource consumption necessary to generate earnings. |
| Operating EBITA | EBITA before items affecting comparability. | This key ratio increases the comparability of EBITA over time, since it is adjusted for the impact of items affecting comparability. The key ratio is also used in internal review and constitutes a central financial target for the operations. |
| Items affecting comparability | Income statement items that are non-recurring, have a significant impact on profit and are important for understanding the underlying development of operations. | A separate account of items affecting comparability elucidates development in the underlying operations. |
| Margin measures | Calculation | Purpose |
| --- | --- | --- |
| Operating gross margin | Operating gross profit as a percentage of net sales. | This key ratio is a complement to operating margin since it shows the underlying surplus from net sales left to cover other expenses in relation to net sales. |
Inwido AB (publ) | Year-end report | January–December 2020
Corporate registration number: 556633-3828
inwido
| Operating EBITDA margin | Operating EBITDA as a percentage of net sales. | This key ratio serves as a complement to operating margin, since it shows the underlying surplus cash flow in relation to net sales. The key ratio also enables comparison with other companies, regardless of each company's depreciation/amortization principles and the age structure of non-current assets. |
|---|---|---|
| EBITA margin | EBITA as a percentage of net sales. | This key ratio reflects the operating profitability of the operations before amortization and impairment of acquisition-related intangible assets. The key ratio is an important component, alongside with sales growth and capital turnover rate, in tracking the company's value creation. |
| Operating EBITA margin | Operating EBITA as a percentage of net sales. | This key ratio increases the comparability of EBITA margin over time, since it is adjusted for the impact of items affecting comparability. |
| Operating margin (EBIT margin) | Operating profit as a percentage of net sales. | This key ratio reflects the operating profitability of the operations. The key ratio is an important component, alongside with sales growth and capital turnover rate, in tracking the company's value creation. |
| Capital structure | Calculation | Purpose |
| --- | --- | --- |
| Net debt | Interest-bearing liabilities and interest-bearing provisions less interest-bearing assets, including cash and equivalents. | The net debt measure is used to track the development of debt and to see the scope of the refinancing requirement. Since liquid funds can be used to pay off debt at short notice, net debt is used instead of gross debt as a measure of total loan financing. |
| Net debt/operating EBITDA | Net debt in relation to operating rolling 12-month EBITDA. | This key ratio is a debt ratio showing how many years it would take to pay off the company's liabilities, provided that its net debt and EBITDA are constant and without taking cash flows relating to interest, taxes and investments into account. |
| Net debt/equity ratio | Net debt in relation to shareholders' equity. | This key ratio is a measure of the relationship between the Group's two forms of financing. The measure shows loan capital as a share of shareholders' invested capital. The measure reflects financial strength but also the leverage effect of borrowings. A higher debt ratio entails higher financial risk and higher financial leverage. |
| Interest coverage ratio | Profit after net financial items plus financial expenses in relation to financial expenses. | This key ratio indicates the company's capacity to cover its interest expenses. |
| Equity/assets ratio | Shareholders' equity including non-controlling interests as a percentage of total assets. | This key ratio reflects the company's financial position. A favourable equity/assets ratio provides a preparedness to manage periods of recession and financial preparedness for growth. At the same time, a higher equity/assets ratio provides lower financial leverage. |
| Operating capital | Total assets less cash and equivalents, other interest-bearing assets and non-interest-bearing provisions and liabilities. | Operating capital shows the amount of capital that the business requires to conduct its core operations. It is primarily used for the calculation of return on operating capital. |
Inwido AB (publ) | Year-end report | January–December 2020
Corporate registration number: 556633-3828
inwido
| Return measures | Calculation | Purpose |
|---|---|---|
| Return on shareholders’ equity | Profit after tax, rolling 12-month (RTM), attributable to the Parent Company’s shareholders as a percentage of average shareholders’ equity, excluding non-controlling interest (average calculated based on the past four quarters). | Return on shareholders’ equity shows the total return, in accounting terms, on shareholders’ capital and reflects the effects of both the profitability of the operations and of financial leverage. The measure is primarily used to analyze profitability for shareholders over time. |
| Return on operating capital | Operating profit, rolling 12-month (RTM), as a percentage of average operating capital (average calculated based on the past four quarters). | Return on operating capital shows how well the operations use the net capital tied up in the operations. This reflects the combined effect of the operating margin and the turnover rate for operating capital. The key ratio is mainly used to track the Group’s value creation over time. |
| Share data | Calculation | Purpose |
| Cash flow per share before/after dilution | Cash flow from operating activities for the period divided by the weighted average number of shares outstanding for the period before/after dilution. | This key ratio measures the cash flow per share generated by the operations before capital investments and cash flows attributable to the company’s financing. |
| Shareholders’ equity per share before/after dilution | Shareholders’ equity attributable to Parent Company shareholders divided by the number of shares outstanding at the end of the period before/after dilution. | This key ratio serves to describe the scale of the company’s net worth per share. |
| Market segment | Description | |
| Consumer | Sales to the consumer market are conducted through the following channels: direct sales, retailers, middlemen, manufacturers of prefabricated homes, small building companies. | |
| Industry | Sales to the industry market are conducted through the following channels: large building companies, retailers, manufacturers of prefabricated homes. |
Inwido AB (publ) | Year-end report | January–December 2020
Corporate registration number: 556633-3828
inwido
Calculation of alternative key ratios
| SEKm (unless otherwise stated) | Oct-Dec 2020 | Oct-Dec 2019 | Oct-Dec 2020 | Oct-Dec 2019 |
|---|---|---|---|---|
| Operating profit (EBIT) | 226 | 182 | 695 | 601 |
| Depreciation/amortization and impairment | 59 | 81 | 245 | 268 |
| Items affecting comparability (other items) | 1 | 7 | 16 | 7 |
| Operating EBITDA | 286 | 270 | 956 | 876 |
| Gross profit | 482 | 464 | 1,736 | 1,694 |
| Items affecting comparability (depreciation/amortization and other items) | 0 | 22 | 1 | 24 |
| Operating gross profit | 482 | 486 | 1,737 | 1,718 |
| Operating profit (EBIT) | 226 | 182 | 695 | 601 |
| Depreciation/amortization of acquisition-related intangible assets | 4 | 5 | 18 | 20 |
| EBITA | 230 | 186 | 712 | 621 |
| Items affecting comparability (depreciation/amortization and other items) | 1 | 25 | 16 | 25 |
| Operating EBITA | 231 | 211 | 729 | 646 |
| Items affecting comparability | -1 | -25 | -16 | -25 |
| Depreciation | 0 | -18 | 0 | -18 |
| Other | -1 | -7 | -16 | -7 |
Capital structure
| SEKm (unless otherwise stated) | Oct-Dec 2020 | Oct-Dec 2019 | Oct-Dec 2020 | Oct-Dec 2019 |
|---|---|---|---|---|
| Cash and equivalents | -1,133 | -243 | -1,133 | -243 |
| Other interest-bearing assets | -17 | -18 | -17 | -18 |
| Interest-bearing liabilities, non-current | 2,135 | 2,212 | 2,135 | 2,212 |
| Interest-bearing liabilities, current | 111 | 123 | 111 | 123 |
| Net debt | 1,096 | 2,075 | 1,096 | 2,075 |
| Total assets | 8,017 | 7,471 | 8,017 | 7,471 |
| Cash and equivalents | -1,133 | -243 | -1,133 | -243 |
| Interest-bearing assets | -17 | -18 | -17 | -18 |
| Non-interest-bearing provisions and liabilities | -1,616 | -1,360 | -1,616 | -1,360 |
| Operating capital | 5,251 | 5,850 | 5,251 | 5,850 |
Inwido AB (publ) | Year-end report | January-December 2020
Corporate registration number: 556633-3828
inwido
About Inwido
Inwido improves people's lives indoors with windows and doors. As Europe's leading window group, Inwido's business concept is to develop and sell the market's best customized window and door solutions through a decentralized structure and with focus on the consumer-driven market, in order to create long-term sustainable growth, organically and through acquisitions.
Inwido consists of 28 business units with approximately 4,300 employees in 11 countries. In 2020 the Group achieved sales of SEK 6.7 billion with an operating EBITA margin of 10.9 percent.
Shares in Inwido AB (publ) have been listed on Nasdaq Stockholm since 2014 under the ticker "INWI".
Financial targets
Inwido's operations are governed by four financial targets aimed at providing shareholders with good returns and long-term growth in value performance.
Profitability
Inwido's profitability target is an operating EBITA margin of 12 percent. Inwido may not achieve the profitability target during years when the market trend is weaker. In such cases, the company will undertake measures to further enhance profitability, which Inwido has been successful with in the past.
Sales growth
Inwido's objective is to exceed growth in our current markets through organic growth, as well as selective acquisitions and initiatives in Europe.
Capital structure
Inwido's net debt in relation to operating EBITDA shall, excluding temporary deviations, not exceed a multiple of 2.5.
Dividend policy
Inwido aims to pay its shareholders an annual dividend that corresponds to approximately 50 percent of net profit. However, Inwido's financial status in relation to the target, cash flow and future prospects shall be taken into consideration.
Inwido's sustainability compass
We give more than we take – because sustainable business generates long-term value. This means that what our business units consume to produce windows and doors will eventually lead to greater, lasting benefits for our business units, as well as for people, the environment, shareholders and society.
Our sustainability work is guided by our sustainability compass, which embodies three strategic guidelines:
- Be an environmental friend
- Be a good place to work
- Be a responsible business
Inwido's climate target 2030/2050
We will reduce our carbon dioxide emissions by 50 percent by 2030 and will be carbon neutral by 2050.
The results of our sustainability work
We present our targets and report on our performance on our website and in the Annual Report.
Inwido AB (publ) | Year-end report | January–December 2020
Corporate registration number: 556633-3828
inwido
Information for shareholders
Financial calendar
2020 Annual Report April 2021
Interim report, January-March 2021 27 April 2021
Annual General Meeting 2021 6 May 2021
Interim report, January-June 2021 16 July 2021
Interim report, January-September 2021 26 October 2021
This information is such that Inwido AB (publ) is obliged to publish in accordance with the EU market abuse regulation and the Swedish Securities Market Act. The information was submitted by the below contact persons for publication on 10 February 2021 at 7:45 a.m. CET.
For further information, please contact
Henrik Hjalmarsson,
President and CEO
Tel: +46 (0)76 846 20 46
e-mail: [email protected]
Peter Welin,
CFO and Deputy CEO
Tel: +46 (0)70 324 31 90
e-mail: [email protected]
Olof Engvall,
Investor & Public Relations Manager
Tel: +46 (0)73 541 45 73
e-mail: [email protected]
Contact details Inwido
Inwido AB (publ)
Engelbrektsgatan 15
SE-211 33 Malmö
www.inwido.com
Tel: +46 (0)10 451 45 50
e-mail: [email protected]
Corporate identity number: 556633-3828
Watch Inwido’s corporate video “A window of opportunity” here and follow Inwido’s journey on LinkedIn
Inwido AB (publ) | Year-end report | January–December 2020
Corporate registration number: 556633-3828