Consolis Interim Report January – March 2022

CEO Comments:
Consolis had a good start to the year of 2022. Order intake amounted to € 364 million in Q1, which equals a book-to-bill ratio of 1.14. Our order book grew 5 percent since the last quarter and amounted to € 968 million at the end of the first quarter. However, after a long period of strong market demand and strong order intake, we see towards the end of the quarter a softening of demand in the residential segment, whereas the non-residential segment so far is holding up.
 
Net sales in the first quarter amounted to € 319 million (252), up 26 percent versus last year. Adjusted EBITDA was stable in the quarter and amounted to € 16.8 million (18.0) equal to an adjusted EBITDA-margin of 5.3 percent (7.1). Free cash flow in the quarter amounted to € -12.1 million (-10.1), primarily explained by working capital seasonality effects.

The war in Ukraine that broke out end of February had limited direct impact on Group performance in the first quarter. Consolis has no operations neither in Ukraine nor Russia, however from the beginning of the war, we have entered into an uncertain world where raw material prices continue to increase significantly, potential shortages of raw material supplies could happen and where projects could be postponed. We are therefore continuing to adjust our commercial activities to this new uncertain world, increasing our efforts to improve our cost pass through to customers.

The sale of the CWF business has been completed on January 31 which marks an important milestone in the transformation to the remaining, new Consolis – a building material group – focusing on its core building business with a market leading position in Europe. The real estate divestments that tie to this transaction are progressing according to plan.

If raising the horizon to look beyond the short-term challenges and uncertainties where forecasting is difficult, the long-term structural business logic for Consolis remains favorable. In an environment where inflation and raw material costs remains high, the relative competitiveness of Consolis business model versus competition, for example in-situ constructions, will improve, especially also when considering the environmental footprint.

Highlights of the first quarter 2022:

• Net sales from continued operations amounted to € 319 million (252), corresponding to a sales growth of 26 percent. Currency effects had a negative impact of 0.5 percent.
• Operating profit (EBIT) amounted to € 6.7 million (7.0).
• Adjusted EBITDA amounted to € 16.8 million (18.0), corresponding to a margin of 5.3 percent (7.1). Exchange rates had a positive impact of 0.1 percent.
• Order book increased 5 percent to € 968 million, compared to € 925 million at the beginning of the quarter. Order intake in the quarter totaled € 364 million, and the book to bill ratio corresponded to 1.14.
• Free cash flow from continued operations in the quarter amounted to € -12.1 million (-10.1), primarily explained by seasonality effects in working capital. LTM cash conversion was 45 percent.

Telephone conference:
Consolis will host a presentation with the possibility to attend through a telephone conference at 10.00 CET today. The presentation will be held in English and will also be available as a recorded webcast on: https://edge.media-server.com/mmc/p/o33h9paq.

Dial-in details:
To ensure that you are connected to the conference call, please dial in at least five minutes before the conference call starts to register your attendance and enter the participation code: 59966337#.
Dial-in numbers:
UK: +44 33 33 00 08 04
US: +1 63 19 13 14 22
Sweden: +46 8 56 64 26 51
Denmark: +45 35 44 55 77
France: +33 17 07 50 71 1
Germany: +49 69 13 80 34 30

The Interim Report and the presentation are available on www.consolis.com.