Interim report Jan-Sep October, 2017

Transcription

1 1 Interim report Jan-Sep October, 2017

2 Executive summary on development We follow our strategic plan Sales growth of 8% in Q3 Two acquisitions in 2017 Further efficiency improvements initiated Short term supply chain disturbances 2

3 Q3 - Market development Strong and stable markets but with some uncertainties Good GDP-growth overall in Europe Inflation might be back Raw material prices are increasing Consumers in a positive mood trend Markets in general driven by new built Shortage of competence Good demand creates longer lead times Still price pressure, especially in new built 3

4 Q Inwido performance Good growth but profitability hit by short term operational disturbances Continued good growth in sales, +8% Order intake affected by capacity constraints Order stock, +7% Underlying profitability is still strong Denmark with top performance again e-commerce growth organically at 10% 6% of Group sales Acquisition of B&B strengthens the channel further Short term disturbances in Swedish supply chain continued. More severe than expected. 4

5 Disturbances in Swedish supply chain Main issues and actions Main issues: High volume growth Lack of material Shortage of people/competence New product launches Some machinery breakdown Main actions: Extensive overtime in production Upgraded forecasting and processes Reduced capacity Machinery maintenance and capex New leadership We expect to be back on track during Q4 5

6 Q1-Q Inwido development Good sales but profit below our expectations Key figures: Sales increase of 16% to SEK 4,597 million Order backlog +7% Operating EBITA SEK 448 million (446) Operating EBITA margin January-June 9.7% (11.3) Continued high acquisition activity Bedst & Billigst latest Inwido member 6

7 Q3 Sweden-Norway Continued sales growth despite challenges New segment as of July 1 Henrik Hjalmarsson new head Consumer confidence on a healthy level Further disturbances in supply chain affecting efficiency and deliveries Substantial extra costs in the quarter The segment mix still less favourable Total sales: +1% Total order backlog per end of quarter: +15% 7

8 Sweden-Norway new business area Several reasons for the integration of Sweden and Norway 1. Profitability in Norwegian market low 2. Supply chain under one responsibility 3. Improved efficiency overall 4. Stronger organisation in Norway 5. More logic and efficient product and concept development 8

9 Q3 - Finland Strong order book segment mix still slightly unfavourable Good GDP development and high consumer confidence Continued good growth within new-built Back on track within consumer business Fully recovered in Q4 Higher share of industry sales affects profitability negatively Total sales: +3% Total order backlog per end of quarter: +14% 9

10 Q3 - Denmark Strong development in both sales and profit Strong market indicators high consumer confidence Good growth in all channels Good segment mix Total sales: +18% Total order backlog per end of quarter: -3% 10

11 Q3 - EBE Another acquisition to further strengthen e-commerce Ireland, Poland and latest acquisition in UK develop well e-commerce growth at 10% in Q3 Bedst & Billigst strengthen the e-commerce business and capacity Efficiency measures in UK business Total sales: +22% Total order backlog per end of quarter: -13% 11

12 Outlook We are positive about our development entering 2018 The need for our products is good Markets are in general positive Inwido s long term performance is promising Challenges currently are: Supply chain disturbances Getting the right and enough competence Political and financial uncertainties Operations are in better shape in Q4 Efficiency measures initiated >100 MSEK 12

13 Our Management Ambition Remains Increase operating EBITA >10% on average annually 13

14 Focus areas near term Overall plan unchanged 1. Supply chain fully back on track 2. Ramp up sales in Finland in favorable market 3. Evaluate further acquisitions 4. Efficiency and cost improvement program 5. Continue to launch connected products 14

15 Q3 and first nine months in numbers

16 First nine months, result on par with last year Q3 Q1-Q3 SEKm Change Change Net sales 1,559 1,446 8% 4,597 3,964 16% Gross margin, % Operating EBITA % % Operating EBITA margin, % EBITA % % EBITA margin, % Profit after tax % % Earnings per share before dilution, SEK % % 16

17 Items affecting the result ca 40 MSEK Q vs Q Production disturbances in Swedish factories extra costs of ~SEK 25 million Negative sales mix effect, ~SEK 10 million Sales efficiency in UK and Finland, ~SEK 5 million 17

18 Positive sales growth and order intake adjusted for acquisitions SALES AND ORDER INTAKE Q3 (SEKm) Sales in total + 8% Order intake in total 0% Aquisitions

19 Highest order backlog ever, +7% vs last year ORDER BACKLOG (SEKm) Q1 12Q2 12Q3 12Q4 12Q1 13Q2 13Q3 13Q4 13Q1 14Q2 14Q3 14Q4 14Q1 15Q2 15Q3 15Q4 15Q1 16Q2 16Q3 16Q4 16Q1 17Q2 17Q

20 Margin in Q3 affected by short term supply chain issues OP EBITA (SEKm) and OP EBITA MARGIN (%) ,7% 14,0% ,0% 10,8% ,3% 9,7% 16,0% 14,0% 12,0% 10,0% ,0% 6,0% 4,0% 2,0% 0 July - September January - September 0,0%

21 Efficiency and cost improvement program Initiated Q Total savings > SEK 100 million One-time restructuring cost of SEK 80 million to be taken in Q4/Q1 Full effect from 2019, with start in H

22 Net debt vs. EBITDA SEKm , ,5 2, , ,0 0,5 0 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 NetDebt (SEKm) Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Net Debt vs OP EBITDA Q4 16 Q1 17 Q2 17 Q3 17 0,0 22

23 Thank you! Questions? 23