WindowMaster reaches both record turnover and order intake in 2021, hits profit forecast, announces expectations for 2022 and commits to ambitious sustainability aspirations

Tuesday, December 7, 2021 xx:xx CET

Company Announcement No. 20-2021 – Inside Information
Vedbæk, December 7, 2021

Record turnover and order intake - Outlook for full-year 2021

WindowMaster expects to have a full-year record-high turnover of around 210 million DKK. The full-year order intake likewise is expected to reach a record-high level at 220 million DKK end of December (12-month rolling). Profit (EBITDA) excluding non-recurring items is expected to reach 14 m DKK as we have seen improvement in synergy performance from the acquisition of Climatic A/S in Q4 2021. The predictions on significant cost increases of components are fully impacting Q4 and will continue into 2022. Outlook for full-year 2021 matches the forecast and expectations in the Company announcement number 19 from 12 October 2021.

The full-year expectations and record levels on turnover and order intake are achieved despite an increase in delayed direct project execution and supply chain delays. WindowMaster is also indirectly affected as the general construction industry is impacted by the disruption and delays in the supply chain.

Outlook for 2022

Despite high uncertainty in electronic component supply and significant cost increases related to the supply chain situation the outlook remains positive for 2022. Turnover is expected in the range of 220-235 million DKK (~10% growth). Growth is generated by general market growth on existing markets due to the green agenda but also an extension of activity into more contracting business. WindowMaster possesses strong knowledge of integrating and controlling different building automation solutions (solar shading, Hybrid ventilation, Natural ventilation, etc.) and therefore harvesting more growth on hours sold and related products on top of WindowMasters core products.

Demand for our solutions is intact and supported by our strong pipeline of opportunities both in numbers and value and the nature of our turnover with an ARR (annual recurring revenue) of approx. 80% - generated by customers that are trading with WindowMaster for minimum 3 years. Of these customers - 25% are OEM contracts lasting for several years and 20% are recurring service contracts and calls. The way the turnover is split provides a solid base for growth also adding new customers year by year.

Assumptions also include already announced price increases. It is the ambition to implement more price increases during 2022 if needed even if it is expected to be challenging. The shortage of electronic components could also affect the topline as WindowMaster would have to postpone deliveries, but multiple actions are put in place to mitigate this risk. The ability to supply our customers takes priority over short-term optimization.

EBITDA is expected in the range of 13-18 million DKK considering the above-mentioned assumptions.

Sustainability aspirations

Today, WindowMaster stands firm on its sustainability ambitions aiming at integrating sustainability even more strongly into the corporate strategy.

As one of only six Danish SMEs, WindowMaster has committed to join the Science-Based Target Initiative (SBTI), an international collaboration that supports companies in reducing their greenhouse gas emissions to live up to the goals of the Paris Agreement to halt global temperature rise to 1.5°C

“WindowMaster wants to be a good global citizen, whether it is about our employees’ health, our operations, our solutions or the impact of our indoor climate solutions, so the next logical step is to transform our goals to clear binding goals on both long and medium term. At the same time, the company is working to become more circular and increase the resource efficiency of raw materials as well as end-of-life products. It requires a lot of effort, but we believe that it will provide both an environmental and commercial return,” says CEO of WindowMaster, Erik Boyter, who sees joining SBTI as a natural continuation of the company's ESG efforts.