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Strong growth in Norway and Finland

Net sales for Inwido Nordic fell by 1 percent to ­SEK ­­ 2,418 million (2,438). However, when adjusted for ­currency ­effects, net sales increased by 8 percent. Meanwhile operating profit (EBITA) rose to SEK 183 million (163). The main driving forces behind the improvement in profit were the recovery in the market, better marketing and efficiency enhancements within the businesses.

MARKET STRUCTURE

Inwido Nordic comprises the markets in Denmark, Norway and Finland. The markets are relatively consolidated and the main competitors are large, family-owned companies. Inwido is the second-largest windows company in Denmark. The two largest companies account for almost half the market. In addition to the two largest companies, the market comprises relatively small-scale, local producers.

Inwido is also the second-largest supplier in Norway. The Norwegian market is somewhat more fragmented, with the two biggest companies accounting for roughly a third of the market.

Inwido is the market leader in Finland. The Finnish market is characterized by a handful of major companies that make up roughly three quarters of the market, alongside several smaller, local and regional companies.

STRONG NORDIC BRANDS

KPK is Inwido’s strongest brand in Denmark and a clear market leader within its segment – sales are made via carpenters. KPK undertook several initiatives during the year in order to strengthen relation­ships with carpenters. The initiatives included training sessions and seminars, and the company also developed new systems for product information and credits.

Inwido’s other Danish brands, Outline, Storke and Frovin, are among the leading brands in the market within their segments. Most notable during 2010 was the fact that new agreements were signed for these brands with a number of key building chains.

Work continued in 2010 on streamlining the ­Norwegian businesses and three brands are now being marketed; Diplomat, Lyssand and Frekhaug. Sales are made almost exclusively via the major building chains.

Operations in Finland differ slightly from the rest of Inwido in that the majority of sales are made directly to individual consumers and include installation. ­Direct sales comprise roughly two thirds of operations. Other sales are mainly to major building ­companies. The Finnish business markets three brands; Tiivi, EP and Pihla.

POSITIVE MARKET TRENDS IN NORWAY AND FINLAND

The Danish market as a whole shrank during 2010 compared with the previous year, since state subsidies were responsible for stimulating demand during part of 2009. All in all, Inwido managed to retain its position in the negative market.

There was a positive trend in the Norwegian market for the first time in three years. In 2010, there was also a marked improvement for Inwido Norway, which displayed strong growth in relation to the previous year. The major challenge for operations in Norway is to try to avoid current pressure on prices. This will be achieved partly through an increased focus on the customer and clearer communication of the benefits of the products chiefly with regard to functionality.

There was a positive trend in the market in Finland in 2010, mainly due to the fact that the renovation market in Finland was supported by state subsidies, while price trends were positive as demand increased. Inwido’s Finnish business noted persistently healthy demand within both the consumer and industry markets, with an increase in sales compared with 2009.

CONTINUED EFFICIENCY ENHANCEMENTS

Work continued in 2010 on streamlining Danish operations, which included improvements in production and a more efficient marketing strategy. Several former minority shareholders in Inwido ­Denmark were bought out by Inwido AB, which owned 95 percent of the shares in Inwido Denmark by the end of the year.

In Norway, new sales concepts and new wood/aluminium windows were launched, which combined with a positive change in the market trend all helped to boost sales.

In Finland, direct sales were further developed, while marketing efforts were intensified.

FOCUS 2011

The main ambition for Nordic operations in 2011 is to further increase the focus on the customer, drive and refine marketing efforts and introduce new products and product solutions. One area to focus on in particular is product development within the field of energy.

About Inwido Nordic

Number of employees Approx. 1,350.*

Organization Factories in 8 locations: Farsø (2), Nykøbing (2), Ugerlöse, Os, Frekhaug, Ruovesi (2), Eskopuu (2), Haapajärvi.

Customers Consumers via direct ­sales, ­retailers, carpenters, small building­ ­ companies and ­tenant-owned housing ­associations. Industry via building companies ­and ­manufacturers of prefabricated homes.

Products Windows, doors, sliding doors ­and accessories. In Finland, installation is included when buying the products.

Brands KPK, Outline, Storke, Frovin, Diplomat, Lyssand, Frekhaug, Tiivi, EP, Pihla

 

IMPORTANT EVENTS DURING 2010:

  • In Denmark, Inwido AB acquired essentially all the outstanding shares from former minority ­shareholders, following which the company owns 95 percent of Inwido Denmark.        
  • A new sales concept was launched in Norway, featuring improved training in the sales team.        
  • In Finland, direct sales were further developed in combination with the launch of a new energy concept.

Customers have their say

Just over a year ago, Lars Hansen, 35, and his family built a new house in Aars in northern Jutland in Denmark. There was one thing they were particularly satisfied with – the windows.

“I would have no hesitation in ordering from Outline again and I’d recommend others to do the same,” says Lars.

Function and easy maintenance were top of the wish-list when ordering windows. The family used to have mahogany windows, which required maintenance twice a year.

Now the aluminium frames on the outside means that the windows require no maintenance. At the same time, the painted wood surface on the inside gives that wonderful natural look that the family was after.

“We were tired of maintaining the windows, so this solution suits us perfectly.”

Price was not the key factor when the family came to choose the windows. Instead it was quality and the right design that were important, besides function and maintenance-free windows.

“The fact that Outline were also able to offer us the special colour we wanted and deliver on time was an added bonus. We’re really happy.”

Lars Hansen

Name: Lars Hansen

Born: 18 August, 1975

Lives: Aars, northern Jutland, Denmark

Civil status: Married, three children

Education: Business degree

Profession: Sales Director at an insurance company

Lives in: Newly-built bungalow

Drives: Opel Vectra 2009

Reason for purchase: New build

 

AREAS THAT DANES PRIORITIZE TO KEEP THEIR HOMES COMFORTABLE, COSY AND IN GOOD CONDITION*

  1. Windows
  2. Floors
  3. Bathroom
  4. Interior decorating
  5. Kitchen
  6. Exterior doors
  7. Roof
  8. Exterior decorating
  9. Interior doors
  10. Storage

Three questions to Mads Storgaard Mehlsen, Managing Director of Inwido Denmark

Mads Storgaard mehlsen

WHAT WERE THE HIGHLIGHTS OF 2010?

We recovered after a tough start to 2010 and the company is growing again. We now have a distinct organization and owner structure, which is ready for growth. It feels good when we’re able to win market share within certain subsegments in a negative market, as we did in 2010. We can grow even when the market is difficult.

WHAT CHALLENGES LIE AHEAD FOR 2011?

We need to focus even more on energy, not only in the form of U-value (a measure of how energy-efficient a window is) for each window, but as part of the entire building.

WHAT IS THE BEST THING ABOUT ­WORKING FOR INWIDO?

It’s extremely stimulating to be part of the broader Inwido Group, and to play a part not just in the Nordic region, but in Europe as well.

Three questions to Arne Dyngeland Managing Director of Inwido Norway

Arne Dyngeland

WHAT WERE THE HIGHLIGHTS IN 2010?

There was a considerable upswing in the market and we achieved good growth and strongly improved earnings. Our strong earnings were partly due to our new sales concept whereby, among other things, we train our salespeople at our retailers’ facilities.

WHAT CHALLENGS LIE AHEAD FOR 2011?

We will be launching new products and ­product solutions and we will be focusing more on marketing.

WHAT IS THE BEST THING ABOUT ­WORKING FOR INWIDO?

Inwido is a company with many talented ­employees in many different fields. That ­makes the job exciting and it makes it ­possible to learn something new every day.

Three questions to Timo Luhtaniemi, Managing Director of Inwido Finland

Timo Luhtaniemi

WHAT WERE THE HIGHLIGHTS OF 2010?

We have seen excellent growth and our ­margins have shown real improvement. We have improved our marketing efforts and ­there have also been some important ­launches with regard to energy saving.

WHAT CHALLENGES LIE AHEAD FOR 2011?

We need to further hone our marketing and ensure that the company focuses even more attention on the consumer, so that we can continue to improve our margins.

WHAT IS THE BEST THING ABOUT ­WORKING FOR INWIDO?

When we succeed in making improvements as we have done in 2010 it also allows scope for investing more in our most important resource – our employees.

 

Inwido Nordic ’10 ’09
Net sales, SEKm  2,418 2,438
Operating profit (EBITA), SEKm* 183 163
Operating margin (EBITA), % 7.6 6.7
* Includes items affecting comparability that had a negative effect of SEK 70 million (neg 27)

 

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