Inwido AB

Hello and welcome to today's webcast with InVido, where President and CEO Fredrik Müller and CFO and Deputy CEO Peter Wellin will present a report for the fourth quarter of 2025. After the presentation, there will be a Q&A. So if you're calling in and want to ask a question, please press star 9 on your phone to raise your hand and then star 6 to unmute yourself when handed the word. You can also submit in questions via the form to the right. And with that said, I hand over the word to you, Fredrik.

Thank you very much. Good morning, everyone, and welcome to this webcast for InVido's fourth and final quarter of 2025. My name is Fredrik Møller. I'm the president and CEO of InVido. And by my side here today in sunny Stockholm is Mr. Peter Wellin, our group's CFO and deputy CEO. As usual, we will go through the highlights and the detailed financials of both group and the BAs. And then we'll finish off with conclusions and, of course, open up for Q&A towards the end. In the spirit of transparency, we have also added a few new slides that I hope and think that you will appreciate. As usual, also, the material is, of course, available on Envido's brand new website. So do take a look at that. In a nutshell, this is sort of summarized where Invita is finding itself at the moment, but also where we're heading. We're on a super exciting journey towards becoming a company twice the size of what we are today. It's not all about top line, of course. On the contrary, it's about profitable growth. So rest assured that the bottom line is and will remain important as well. We are very pleased about how we execute our strategy in what is de facto still an unprecedented industry downturn. This is, of course, a familiar slide to many of you. Do note, however, that we've now added Amman Food in Wales and Kunguta in Slovenia on the map, representing the two latest acquisitions that we did just before year end last year, meaning also that pro forma, our sales are now closer to 10 billion SEK rather than nine before. We are de facto one of the leading players across Europe. But again, we have many white spots on the map. So lots of growth opportunities for us to pursue. We're de facto only in one of the top 10 geographic markets in Europe. So with that said, again, huge potential to grow from here. Let's now dig into the quarterly and full year highlights at the group level. And starting with the quarter, I mean, market wise, it's yet another quarter with soft demand in both the renovation and the new build sectors overall. Similar to Q3 last year, the geographic pattern is a bit mixed, large variations across the markets. We continue to see Sweden progressing and improving. And at the other end, Finland, still very challenging, and parts of England as well. Still, I think it's highly pleasing and rather promising to see the uptick in organic growth, both in the net sales and also in order intake for primarily the consumer side. When we talk about order intake, I think it's important to bear in mind, and as we have flagged before, that The comparison with the fourth quarter of 2024 is a bit tricky because, as you recall, we in December 2024 had a record order from the Saidi group in Scotland equaling £22.5 million. But adjusting for that, actually, net-net, we come out slightly positive also on the organic order intake now. Group gross margin one, rather okay, a function of pricing, value-based pricing activities and a rather stable raw material dimension. Having said that, we've had, of course, a less favorable mix, both in the geographic dimension, where Sweden has outpaced Denmark in growth, for example, but also where we've had more project sales than consumer renovation sales. On top of that, we've also been hampered by negative FX impact from a stronger Swedish krona. We'll get back to that later on. Looking at gross margin too, I think it's quite solid. It's really a lot about efficiencies in all forms and shapes. Our investments from previous quarters are beginning to pay back, which is great to see. But overall, it's about cost-consciousness. restructuring where we shut down a smallish entity in Finland, and generally taking out costs. So that has to a large extent really offset the drop, the negative headwind that we've had in other dimensions. I think it's important still to remind ourselves of the fact that the industry fundamentals remain the same and they remain rather positive. At the end of the day, people do need windows and doors. And there is a lot of pent up demand in both renovation and the new build sector. Both need to grow from here. Last but not least, we've been successful within mergers and acquisitions. We are not stressed up about it and we're definitely not overpaying for the assets that we come across. But it's great to see that our activities, the focused efforts that we have within acquisitions have paid off. And we've added three new companies in the quarter, four new companies over the last four months. And hopefully, of course, there should be more to come in the M&A dimension. Cash is king, strong cash flow, and a lot of working capital excellence, primarily within the e-commerce business area. And of course, we've had somewhat lower capex than expected. That also strengthens our war chest and our financials, making them even more solid going forward. So a snapshot of the quarterly key financials relative to the same quarter last year. Again, on the order intake side, one needs to make an adjustment for the SIDI record order in December 2024, meaning that overall order intake is actually in line with last year or in fact slightly better. As mentioned already, operating EBITDA was hampered by a 13 million SEC negative on the FX side, but again offset by efficiencies that started to a large extent in Q3, but in some cases actually already in Q1 last year. You will recall hopefully that Primarily back then, our business area e-commerce took the opportunity to make their setup a little bit more lean and mean and that has paid off. And on top of that, then we were forced to make more adjustments primarily in Finland in early Q3. as demand back then surprised us negatively. So all of that is beginning to and has, I would say, really had an impact in the fourth quarter, which is great to see and making us more ready for what's to come as we now have ended in 2025. Main contribution at the BA level is from BA Scandinavia and BA e-commerce. The other two have done a great job as well, but are facing tougher market conditions. And again, strong cash flow, still rather low gearing. It has been affected by acquisitions, of course. Peter will talk more about that. But we still have plenty of room to pursue additional acquisitions from here. So overall, if we zoom out from Q4 and we add the previous nine months to close the books on the full year of 2025, Market-wise, it has yet again been a roller coaster ride. At the beginning of 2025, I thought that it would be the beginning of a bounce back in demand. Relatively quickly in Q1 already, we did notice that that was not really going to be the case. And then as stated, Q2 added quite a lot of geopolitical turmoil, and that has been a bit of a wet blanket on consumer demand in particular. throughout the entire year of 2025. Still, I think we come out stronger than before. We're again successfully executing our game plan and we're definitely ready for whatever 2026 has in store for us. So I'm overall very proud of what we've achieved. And pro forma, of course, we've added almost 1 billion second turnover. We have more lean operations and that bodes well for the future. I think importantly, also worth noting is that we do deliver a healthy dividend to our shareholders at 5 krona 50 öre, i.e. same level as last year. So to sum up the key financials also for the full year of 25, importantly, I think we are displaying an organic top line growth and a healthy profit margin, which is really a quality seal of what InVido is all about. Again, FX headwind, actually 30 million SEC affecting EBITDA on the full year level and still low volume. But I think we met it by really successful collaboration. So there's more on a synergy side from us working in the horizontal dimension across all of InVido, which is great to see. And additional efficiencies, cost consciousness and investments, paying off dividends. And then on top of that, the successful M&A work. So overall, I'm rather pleased with what we've achieved. Yeah, again, large market variations across our business areas. Sweden continues to improve, boosting Scandinavia. And of course, the root incentive where the government raised the level in May last year had a positive impact. But all of our Swedish entities, I'd say, have done really, really well, and particularly Lidfönster. And that, of course, makes a huge difference to the BA as such. Denmark looks solid. We hope and think that the Greenland debacle, the Greenland matter and over Nordisk turmoil that we've seen over the last 12 months, so to speak, that that does not have a negative impact on demand and sentiment overall in Denmark. And so far, so good, I would say. Same thing with Norway, where we are doing a really good job in still what is de facto quite a tough market, but we think that Norway has stabilized and bottomed out. If we move across to BA e-commerce, similar pattern as in the previous quarter with Sweden improving. We of course see quite positive outlook on Sweden, strong macroeconomics. It's an election year and we're beginning to see that The housing market is moving, more transactions being done and at somewhat higher price levels, starting, of course, as usual, with the inner city of Stockholm. But that's, of course, overall positive news for us. On e-commerce, Black Week, which is important in Q4, was rather successful. If we move west and going into Western Europe, Ireland remains quite buoyant and UK is patchy. Scotland faring better than England still. England tricky, but quite a mixed bag. And I think there is some light at the horizon. There are increasingly talks at the government level about how to further boost the economy from where they are right now. And for sure, they need some support to get consumer sentiment back. Last but not least, Eastern Europe, which in our case, as you know, is largely Finland and to some extent Poland. Well, not really improving, I have to say. Still very, very tough. And here I'm lacking still incentives and clear measures taken at the government level. Having said that, There is a new tax regime with the intention of course to make households a little bit better off and hopefully that will kick in now already early this year. Poland doing quite okay, stabilizing with a reasonably positive outlook actually. So as I stated before several times, we, of course, need to grow by some 15% CAGR top line in order to get to our 2030 target of getting to a 20 billion SEC turnover. That is definitely achievable. And I think we've proven over the last four months that we can do it. and that we can do it in a clever and profitable way. So again, it's not just about top line. We need to bear in mind what kind of reputation we have given the 50 plus acquisitions that Invido have done over the years in a really, really good way. So we continue to be very picky. And thankfully, we continue to be perceived as a very attractive buyer with the model that we have. I think overall the market is improving. There is quite a lot of M&A activity going on, including some strategic assets that are in play, we think. But again, we're picky. And the four acquisitions we did are really plastic in vitro transactions, I would say. And the first two ones that we got in, Yeah, late Q3, early Q4 are already contributing in a really, really nice way, proving that they were the right deals to do. And great also to see the acquisition of AJM, which means that we've added yet another country, Slovenia, to our portfolio. geographic footprint and Slovenia is a very solid market. And it also provides us with access to Austria and Switzerland, which are also really, really interesting for us. So we're all very pleased with our M&A efforts. They continue, of course. And when I look into the crystal ball and when I look at our funnel and pipeline of cases and activity level and the overall discussions that are live, I'm reasonably optimistic. I think it looks quite good. It's a nice balance between new and existing markets. It's a nice balance between medium sized and large assets, actually. So in the meantime, we see that some of our peers are struggling in some of the markets that we're in, primarily Finland and the UK. So in England, of course, we continue to see quite a few cases popping up, but many of them are cases that are in financial distress, i.e. they are not of interest to us. There is quite a lot of capital out there. We do see competition in the processes that we're in, but it's not sort of crazy bid levels and we wouldn't do any stupid transactions here. The multiples, I think, still are very reasonable. We are also looking into the field of solar shading. So in the pipeline of cases that we are working with, both on the sort of gross and net list, there are a few assets with the solar shading label, which is, as we've stated several times before, it is an area of interest to us. Here, profitability typically is much higher than in the traditional window and door business. Meaning that we may have to pay multiples that are somewhat in the higher end of the range that we typically pay. But again, very nice companies and here we of course see sales synergies on top of the cost synergies. Moving on, and it's great to see smiles on people's faces and particularly our co-workers. I think it's a lovely picture. And within sustainability, we have every reason to smile. One example is our employee engagement survey that we do every year. And now in Q4, we actually achieved the highest ever score and we have had the highest number ever response rate, which is a fantastic outcome given that it's been a very challenging year with lots of changes going on and of course, lots of cost cutting as well. I think it's a sign that the group management team and all of our BUs have done a really, really good job in explaining where we are and where we're heading in a credible way. And it has to be like that, of course. So very pleased overall here. We have KPIs moving in the right direction, as they have been on a positive trend for a really long time. And particularly our carbon dioxide number is down by a lot, which is the function of both our own activities, improving our CO2 footprint, but also very fruitful collaboration together with our business partners and suppliers. So it just goes to show that we're in it together and we're getting a lot of external credit here as well, of course, for our overall sustainability work. It's really a natural part of our DNA. Can never rest on our laurels, though, and in particular when it comes to accidents and incidents, that's always and always will be very, very high on our agenda. So with that said, for some more flavor on NVIDIA's Q4 and full year financials, I hand over to you, Peter.

Thank you so much, Fredrik. And I start with this picture. This picture is showing the income statement. To the left, we can see the Q4 developments and to the right, we can see the full year. Starting with the quarter, sales is plus 1%. We still have the same negative mixed impact, meaning that consumer sales are declining and the product sales is growing. The reported consumer sales is down by 1% and product sales is plus 4%. The organic sales was plus 3% in a quarter. Now here is the consumer sales plus 1% organic and product sales is plus 6%. So we still have the same negative mixed impact as we had in Q2 as well as in Q3. And that can be seen in our gross margin developments. The gross margin has declined in a quarter from 25.9% last year to 25.7%. Then we'll be able to offset that by reducing our costs meaning that operating EBITDA margin as well as operating in beta margin are on the same level as last year. We have made acquisitions and acquisitions have positive contribution to the quarter, but we also have a negative FX impact from our translations exposure. The group doesn't have so high transaction exposure, but we have a high translation exposure due to Stroner's sake, where we are then consolidating the Danish result as well as the Finnish results into the group. And the FX impact is more or less the same negative impact as the positive impact from acquisition, so they offset each other. Below the operating EBITDA and down to EBITDA, we have non-recurring items of 26 million in the quarter, where 21 million are connected to acquisition. So 21 million acquisition costs and then 5 million as structural costs. The structural costs are mainly connected to Finland, where we're taking more actions due to the market developments. And also we have reduced a business unit called Finluft and merged that into another business unit in Finland. And we're taking some costs in that in Q4. Further on the income statement, we can see that profit after tax is down by 7% compared to last year, even though the EBITDA is on the same level as last year. We have a little bit higher financial net or negative financial nets in the quarter compared to last year. And we also have higher tax costs in the quarter compared to last year due to our acquisition costs that are non-deductible. And we also have some losses in UK and we cannot utilize those losses. And the tax calculations for this year can be used in the future now after we made more acquisitions in UK that are profitable. And then we also have a higher minority stakes or minority results in the quarter, and thereby earnings per share is down by 9% compared to last year. Looking at the full year, sales plus 2%, organically is plus 4%. We have an operating EBITDA margin of 10.5 for the full year compared to 10.8 last year. We had a good development in Q1 and then a margin development in Q2 and Q3. And now in Q4, we are back on track again. And the earnings per share ended at 887 kronor, minus 5% compared to last year. This page is showing the sales development as well as the operating beta development. for each business area in Q4. To the left you can see the sales development and to the right we can see the operating and beta developments. The main takeaway on this page is that Scandinavia is stable, higher sales as well as higher resource, lower margins due to mix. Not the mix between consumer and project, it's more mix between the different business units. Swedish market is growing more compared to the Danish market and thereby we have a lower margin for Scandinavia but still a stable development for Scandinavia. We can also see that eastern as well as western are still challenging, lower sales as well as lower results and we can see that the margin focus on e-commerce is paying off. In a quarter sales is down by 3 million for e-commerce. However, the result is plus 12 million or more than 50% higher increase on the operating beta compared to last year for e-commerce. So the action taken when it comes to e-commerce, we have reduced the cost in e-commerce. We're taking some restructuring costs both in Q4 last in 2024 and also beginning of this year. And now we can see the payoff of those actions. This graph is then showing the operating and beta margins as well as sales for Q4 between 2019 and 2025. And we can see that we are back on track when it comes to the operating beta margin for a quarter. Same level as last year and also looking at long term perspective, we are back at a high level for Q4 this year. Looking at the cash flows, this page is showing the cash flows. To the left, you can see the cash flow developments, cash flow before financing activities. However, excluding financial assets and also excluding acquisitions. At the right, we can see the CapEx level this year. The cash flow was strong in Q4. We have the strongest cash flows in Q4. Operating activities was above last year. And when it comes to working capital, we are not as positive development working capital as it was last year. However, if you look at our working capital in relation to sales, we are more or less on the same level as last year. And then when it comes to investments, when it comes to capex, we have lower capex in the quarter in Q4 this year compared to last year. We have also lower for the full year and we were expecting a bit higher capex during 2025. However, some projects have been delayed and some projects have been postponed into 2026. In a quarter, we have concluded three acquisitions. We have paid for RM Fenster in Sweden, for FastFrame in the UK and also for Victorian in the UK. When it comes to AGM, that acquisition has been closed now in January, but was not closed in Q4 and has not been paid for in Q4. So this means that the net debt has increased in the quarter due to the three acquisitions, Errand, FastFrame and Victorian. When it comes to Victorian, we made that acquisition very late in 2025, late in December. Meaning the balance sheet is included and the payment for the shares are included in the quarter, but not the income state. So we don't have any resource from Victoria in 2025. They will be consolidated from 2026 when it comes to the income statement. And then AGM will be fully consolidated also from 2026. So the net debt has increased to 2.1 billion, and that includes RFR 16 loans of 483 million. So net debt in relation to operating EBTA is now 1.7, including RFR 16. However, when I calculate the performer basis for the EBTA, meaning I include full year results for IRM Fast Frame Victorian, then the net depth of CPTA is 1.5, including IFR 16. Excluding of IFR 16, we are on 1.4 reported, and on performer basis, we are on 1.3. The acquisition has also had a negative impact when it comes to our calculation of returning operating capital, especially Victorian, because the balance sheet is included, but not any results. And that's why we have declined a quarter from 12.7 in Q3 down to 12.4. So we are 0.3% units behind last year, and we're also behind the target of 15%. Looking at the order backlog as well as the order intake, starting with the order intake, in Q4, as Fredrik also mentioned, we took this large order in Scotland and a large order of 22.5 million pounds. And they were booked in Q4 because the order was received in December. So the order intake, organic order intake, is down by 12% compared to last year. However, when we adjust these large orders, we are slightly positive compared to last year. The positive thing is that the consumer is growing. We have a positive order intake of plus 2% organic in the quarter, and the product is down by 28% due to the orders in Scotland. Adjusted for orders in Scotland, the product is also slightly positive. The order backlog is slightly lower this year compared to last year. The order backlog of products is down by 11%, and the consumer is down by 1%. If we then look at the order intake and then we divide the order intake between the different markets and starting with the consumer, this page is showing the order intake, organic order intake per quarter from Q4 last year to Q4 this year, meaning development during five quarters. And now we're separated per market, so not per business area, meaning e-commerce is now, the e-commerce sales in Denmark is reported in Denmark and e-commerce sales in Sweden is reported in sales, etc. The most important market for us is Denmark. The Denmark stands for 43% of our consumer sales. The second most important market for us is Sweden, stands for 25%. On this page, we can see that in Q4 last year, we had a negative organic oil intake of minus 2%. Then in Q1 this year, we started the year positive at plus 2%. Q2 was minus 4%. Q3 was minus 2%. And now Q4 is plus 2%. When I look at the development between the markets, We can see that Denmark, which is the largest market for us when it comes to consumer sales, is quite stable. And we can see a positive development in Sweden on all quarters. Q4 last year until Q4 in 2025 has a positive development when it comes to the order intake. And we can see that UK and Finland, which stands for 12% of our consumer sales and Finland for 8%, they are still challenging. They've been challenging all over the year, last five quarters. And then the rest, they are quite small. The rest is Norway, Ireland, Germany, and Poland. So stable development in Denmark, positive in Sweden because consumers order and take. UK, Finland, still challenging market for us. When it comes to the product sales, and the main thing when it comes to product sales is it's a higher volatility in the product sales compared to consumer sales. So now we have to have a graph where we go up to plus 250%, because in UK last year, we took this large order of 2.5 million pounds, and we had an order intake growth more than 200% in Q4 last year. And this year, since we are comparing to last year with these large orders, we have quite large decline in UK. We can see a quite stable development in Finland during the last quarters. We can see also quite stable development in Sweden, some growth in Denmark, but Denmark is only 8% of our product sales. And then Ireland is also quite volatile because there we also take large orders. However, Ireland is only 4% of our total product sales. So the product market is much more volatile compared to the consumer markets. And when it comes to the order intake, you should not look too much on a single quarter. You have to look more on a rolling 12-month basis. In some cases, also the rolling 24-month basis to see the developments when it comes to the product order intake. The sales within the product market is stable, but the order intake is very much volatile.