WindowMaster realized record high growth in orders and sales in 2021-H1

Company Announcement No. 16-2021 – Inside Information

Copenhagen, August 31, 2021

Highlights from 2021-H1

WindowMaster realized strong sales growth in the 1^st half of 2021 – with high activity in all markets – despite continued COVID-19 constraints, Brexit etc. Both order intake and turnover reached an all-time high.

• Net sales for 2021-H1 ended at 107m DKK including the acquisition of Climatic A/S representing a 21.7% increase compared to 2020-1H. Under this positive development lies further – not yet accounted for – postponed turnover of 2m DKK caused by supply chain delays and challenges. This delay illustrates the overall global challenges within supply chain – both in respect to disruption and delays in logistics/transportation but also the shortage in supply of components due to increased global demand. This is a situation seen from beginning of 2021 and is expected to continue into the 1^st half of 2022 and will have an impact on growth and potentially also short-term profitability. Further on this topic when commenting on the outlook.
   
• Profitability ended behind budget due to the challenging supply chain situation but significantly above 2020-H1. EBITDA-margin (excluding non-recurring items) ended at 6.0% compared to a margin of 1.7% in 2020-H1.
   
• WindowMaster acquired Danish Climatic in February 2021 as part of its strategy to grow through strategic acquisitions.
   
• In April 2021, WindowMaster announced that it will start the first phase of local production in North Wales, Pennsylvania as well as enlarge the Sales Organization with Business Development capabilities in US. The US market is expected to represent 5% of company turnover in 2021 with strong potential to grow to 10% in 2-3 years.

Management comment

• “We maintained our positive expectations for growth and sales throughout the COVID-19 pandemic, and the figures now show that we did the right thing. We are still optimistic about the future and expect intact and increasing demand, as our pipeline of potential projects has grown significantly, of which more than a quarter are in the US,” says CEO of WindowMaster Erik Boyter and notes that WindowMaster has succeeded in getting a strong opportunity pipeline of potential future orders despite the many obstacles that COVID-19 has obstructed sales work. In addition, he sees this as a concrete success for the company’s focus on and strengthening of its digital marketing capabilities.
  
   

Key figures

• Net sales amounted to 107.2m DKK in 2021-H1 compared to 88.2m DKK in 2020-H1
   
• Normalized EBITDA (patent case) amounted to 6.5m DKK in 2021-H1 compared to 1.5m DKK in 2020-H1
   
• Cash flow from operating activities were negative at -8.5m DKK due to market requirement for prepayments and long-term commitments to secure supply that goes into 2022
   
• Total assets increased to 124.2m DKK in 2021-H1 compared to 107.7m DKK in 2020-H1 with proceeds from the IPO in October 2020 included. Equity ratio is 28.5% in 2021-H1 compared to 17.4% in 2020-H1.

Outlook for 2021

• 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.
   
• The effect of rising cost of logistics/transportation is expected to lead to impact EBITDA for 2021 and the expectation is thus adjusted to be in the range between 18.5-24.5M DKK compared to the former range of 20.5-26.5M DKK.
   
• Management has decided to postpone any additional mid-year pricelist corrections until 1 January 2022. Price adjustment for 2022 is expected to have a net effect in the range of 6-7% – to compensate for higher raw material/component prices and transportation costs.