WindowMaster International A/S: WindowMaster advances US investments – initiating production and scaling sales organization

Company Announcement No. 015 - 2021
Copenhagen, April 20, 2021

Due to the political change with the President Biden Administration in the United States with a strong focus and agenda on rebuilding America with a green agenda WindowMaster has decided to advance investments and organizational development on the North American market.

The US market is expected to represent 5 % of company turnover in 2021 with strong potential to grow to 10 % in 2-3 years. We remain upbeat on our US potential as:

• We currently have approx. 25 % of our active opportunity pipeline originated from the North American market and it continues to grow due to our strong digital marketing and local sales presence.
• We expect the US construction sector to be a strong part of the green recovery of the economy and the green transition.
• We are the only global manufacturer in our industry to have our own sales and distribution presence in this key market.

Therefore, WindowMaster has taken the following decisions:

• to enlarge the Sales Organization with Business Development capabilities on the East and West Coast of US to ensure good traction in meeting the current demand for our solutions and the expected surge in demand for energy efficient and sustainable naturel ventilation solutions supporting the current sales organization at our offices in North Wales, Pennsylvania and San Jose, California.

• to establish first phase of local production at our facilities in North Wales – Pennsylvania during Q3 2021 making us even more attractive for participating in US construction projects due to the Biden administration focus on US-made, which make us the first global manufacturer of window automation to establish production and have own distribution in the US.

The abovementioned decisions are expected to give WindowMaster a competitive advantage and not least the capabilities to reach our global growth targets.

“We have noticed that the US interest in WindowMaster's green solutions has increased significantly. We predict that WindowMaster could benefit further from the new USD 2 Trn infrastructure plan, part of which must go to e.g., energy efficiency and schools. Areas where WindowMaster already plays a major role today,” says CEO at WindowMaster Erik Boyter, in a comment to the decision.

The outlook for 2021 of turnover in the range of 205 - 215 million remains unchanged compared to company announcement no. 7 of 9th December 2020. Due to extra costs to building the organization and the production setup in the US, the US decisions are expected to negatively impact the EBITDA level by around DKK 1.5 million and EBITDA is thus expected to be in the range of DKK 20.5 - 26.5 in 2021 compared to normalized EBITDA of DKK 14.5 million in 2020. However, the decision to initiate production in the US is expected to accelerate WindowMaster’s growth in the North American market in the years to come.