Nordic Waterproofing: Feedback from ABGSC investor day - ABG

We hosted NWG’s CEO at ABGSC’s investor day today
Demand remains strong, but shortages of some materials
Bitumen to remain the preferred choice in the long term

We hosted NWG CEO Martin Ellis at today’s ABGSC investor day seminar. Mr Ellis highlighted the company’s high acquisition pace YTD and reiterated the acquisition strategy ahead. NWG will continue focusing on sustainable solutions and aims to enhance its product and service offering to become more of a ‘one-stop shop’ for its customers. Mr. Ellis also mentioned that the acquisition pace will likely soon return to historical levels, i.e., slightly lower than we have seen YTD. NWG’s focus is to remain disciplined and only acquire quality companies at reasonable prices. However, the NWG CEO also mentioned the strong balance sheet and guided for ND/EBITDA under 1x at year-end vs. the previously communicated financial target of ND/EBITDA <3x. as such, there is ample headroom for further acquisitions.>

When asked about technological developments in the industry and potenial substitutes for bitumen, Mr. Ellis stated that he sees a solid long-term future for bitumen, as bitumen is the only reliable and affordable solution available on the market today. He mentions that the market share for each waterproofing material has been rather stable of late and is expected to remain so.

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