Investors

THIRD QUARTER 2024

• Consolidated net sales decreased by -4 percent to SEK 1,167 m (1,212), of which acquisitions 1 percent, currency effects -2 percent and organic development -2 percent
• Net sales in Product & Solutions amounted to SEK 841 m (860) and in Installation Services to SEK 368 m (398)
• Gross profit increased to SEK 327 m (306), gross margin increased to 28.0% (25.3%)
• EBITDA increased to SEK 177 m (159), EBITDA margin increased to 15.1% (13.1%)
• Operating profit (EBIT) increased to SEK 140 m (115), EBIT margin increased to 12.0% (9.5%)
• ROCE amounted to 10.7 percent (10.2)
• Cash flow from operating activities amounted to SEK 101 m (149)
• Earnings per share before and after dilution were SEK 3.87 (3.49) and SEK 3.86 (3.47), respectively

JANUARY – SEPTEMBER 2024

• Consolidated net sales decreased by -7 percent to SEK 3,167 m (3,415), of which acquisitions 1 percent, currency effects -1 percent and organic development -8 percent
• Net sales in Product & Solutions amounted to SEK 2,395 m (2,562) and in Installation Services to SEK 886 m (988)
• Gross profit decreased to SEK 854 m (857), gross margin increased to 27.0% (25.1%)
• EBITDA decreased to SEK 361 m (375), EBITDA margin increased to 11.4% (11.0%)
• Operating profit (EBIT) increased to SEK 249 m (246), EBIT margin increased to 7.9% (7.2%)
• Cash flow from operating activities amounted to SEK 144 m (248)
• Earnings per share before and after dilution were SEK 6.53 (6.98) and SEK 6.51 (6.95), respectively

CEO MESSAGE
Consolidated net sales in the third quarter decreased to SEK 1,167 million from SEK 1,212 million last year. Impact from acquisitions was 1 percent, currency impact was -2 percent and organic development was -2 percent. Organic development was 0 percent in Products & Solutions and -8 percent in Installation Services.

EBIT for the third quarter increased to SEK 140 million, compared to SEK 115 million last year. Products & Solutions achieved improved operarating profit with stable sales while Installation Services maintained it’s operating profit despite lower sales.

ROCE now stands at 10.7 percent (10.2). Cash flow from operating activities amounted to SEK 101 M (149), the reduction from previous year is explained by drastic decrease in inventory last year while inventory has been maintained at the lower level this year.

Our expectation for commercial new build and renovation demand remains on current level for the remainder of this year. Residential new build will remain depressed in the near future with the exception of Denmark. In 2025 we expect more favorable market conditions on our main markets with the exception of Finland where overall market conditions are expected to be unchanged.

PRODUCTS AND SOLUTIONS
The Products & Solutions operating segment decreased Net Sales by -2 percent (3) to SEK 841 M (860), all due to currency impact. Organic development was 0 percent (-4), the impact from acquisitions was 0 percent (3) and currency translation effects were -2 percent (5).
The Bitumen-based waterproofing business in Sweden had a 3 percent increase in Net Sales, Denmark and Finland had a flat sales development while Norway saw a negative development.
SealEco, our synthetic rubber waterproofing business, had a slight negative sales development with improved margins and operating result. Cost development has been closely monitored in the business unit.
In our prefabricated wooden elements business, Taasinge Denmark had sales above last year’s level while Norway had a negative sales development. Kerabit Kattoelementit in Finland had a strong positive sales development. The Taasinge group in total had a slightly negative margin development. Order books are currently at lower levels than after Q3 last year.
Sales development of our green infrastructure businesses, sold under the brand Veg Tech, had in total a flat sales development in the quarter with a strong development in Denmark and Norway while operating result clearly improved over last year.

INSTALLATION SERVICES
The Installation Services operating segment decreased by -8 percent (18) to SEK 368 M (398) driven by a depressed market environment in Finland which represents the largest part of this segment. The impact from acquisitions was 3 percent (7), currency translation effects were -3 percent (11), organic development was -8 percent (0).
In spite of lower sales in Finland we were able to improve our operating margins.
In Norway we had a negative sales development while operational result improved.
In Denmark, our franchise companies reported a strong quarter with increased operating profit.
The entities in Sweden had a positive operating result in the quarter.

POSITIONED FOR EXPANSION
We continue to be well positioned with a solid balance sheet and continuously monitor acquisition opportunities.

Helsingborg, 24 October 2024

Martin Ellis,
President and CEO

Conference call
A conference call for investors, analysts and media will be held today, 24 October 2024, at 10:00 am CEST and can be joined online on https://events.teams.microsoft.com/event. Presentation materials will be available on https://www.nordicwaterproofing.com one hour before the call.
To participate from computer, use link above or via MS Teams with meeting id 360 267 639 875 and passcode: m7N2os.
To participate via phone, please use conference id 349 400 776# on any of below numbers:
From Sweden: +46 8 502 428 90
From Denmark: +45 32 72 66 61
From United Kingdom: +44 20 7660 8326
From Finland: +358 9 85 626 548