INTERIM REPORT, JANUARY – JUNE 2024

SECOND QUARTER 2024

• Consolidated net sales decreased by -7 percent to SEK 1,196 m (1,292), of which acquisitions 1 percent, currency effects 0 percent and organic development -8 percent
• Net sales in Product & Solutions amounted to SEK 927 m (1,001) and in Installation Services to SEK 316 m (350)
• Gross profit decreased to SEK 337 m (349), gross margin increased to 28.2% (27.0%)
• EBITDA decreased to SEK 168 m (186), EBITDA margin decreased to 14.0% (14.4%)
• Operating profit (EBIT) decreased to SEK 131 m (143), EBIT margin decreased to 10.9% (11.0%)
• ROCE amounted to 9.7 percent (10.2)
• Cash flow from operating activities amounted to SEK 126 m (157)
• Earnings per share before and after dilution were SEK 3.70 (4.34) and SEK 3.69 (4.31), respectively

JANUARY - JUNE 2024

• Consolidated net sales decreased by -9 percent to SEK 1,999 m (2,203), of which acquisitions 1 percent, currency effects 0 percent and organic development -10 percent
• Net sales in Product & Solutions amounted to SEK 1,554 m (1,702) and in Installation Services to SEK 518 m (590)
• Gross profit decreased to SEK 528 m (550), gross margin increased to 26.4% (25.0%)
• EBITDA decreased to SEK 185 m (216), EBITDA margin decreased to 9.2% (9.8%)
• Operating profit (EBIT) decreased to SEK 110 m (131), EBIT margin decreased to 5.5% (5.9%)
• Cash flow from operating activities amounted to SEK 43 m (99)
• Earnings per share before and after dilution were SEK 2.66 (3.50) and SEK 2.65 (3.48), respectively

MESSAGE FROM THE CEO
Consolidated net sales in the second quarter decreased to SEK 1,196 million from SEK 1,292 million last year. Impact from acquisitions was 1 percent, currency had no impact and organic development was -8 percent. Organic development was -7 percent in Products & Solutions and -12 percent in Installation Services.
EBIT for the second quarter decreased to SEK 131 million, compared to SEK 143 million last year. Products & Solutions managed to maintain it’s operating profit and improve margins. Installation Services had a negative impact from the harder market situation in Finland.
ROCE now stands at 9.7 percent (10.2). Cash flow from operating activities amounted to SEK 126 M (157), the reduction from previous year is explained by a normal seasonal increase in inventory this year, versus a decrease last year when we started the year with high inventory levels.
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. We have continued to execute cost efficiency programs where applicable during the quarter.

PRODUCTS AND SOLUTIONS
The Products & Solutions operating segment decreased Net Sales by -7 percent (-2) to SEK 927 M (1,001). Impact from acquisitions was 0 percent (2), currency translation effects were 0 percent (3) and organic development was -7 percent (-8).
The Bitumen-based waterproofing business in Sweden had a 6 percent increase in Net Sales, Denmark managed to maintain sales on par with last year while Norway and Finland saw a negative development.
SealEco, our synthetic rubber waterproofing business, had a slight negative sales development with improved margins. Cost development has been closely monitored in the business unit and reductions made to adapt to the new market situation.
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 slight negative sales development. The Taasinge group in total had a negative margin development. As part of the restructuring program, management changes have been made in March in the Norwegian entity and in July in the Danish main entity. Order books are on good levels in Denmark and Finland.
Sales development of our green infrastructure businesses, sold under the brand Veg Tech, had a negative development on all three markets mainly explained by weaker markets for roof parks, while operating result clearly improved over last year.

INSTALLATION SERVICES
The Installation Services operating segment decreased by -10 percent (20) to SEK 316 M (350). The impact from acquisitions was 2 percent (24), currency translation effects were 0 percent (7), organic development was -12 percent (-11).
In Finland, which represents the largest part of our Installation Services, we saw lower margins as a consequence of the weaker market situation. The entity performing flooring on cruise ships and industries showed excellent performance.
In Norway we had a negative sales development while operational result improved.
In Denmark, our franchise companies reported lower operating profit, explained by weaker results from two units, while maintaining a strong order book.
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. As and when opportunities emerge, we shall be able to further expand the Group in accordance with our strategic plan.

Helsingborg, 17 July 2024

Martin Ellis,
President and CEO

Conference call
A conference call for investors, analysts and media will be held today, 17 July 2024, at 10:00 am CEST and can be joined online on https://events.teams.microsoft.com/event. Presentation materials will be available on Nordic Waterproofing’s website one hour before the call.
To participate from computer, use link above or via MS Teams with meeting id 317 002 736 141 and passcode: EZvcTM.
To participate via phone, please use conference id 537 439 893# 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