Hello and welcome everybody to this presentation of the annual report of 2025 of WindowMaster. Today, I have the pleasure to welcome Erik Boyter, CEO, and Steen Sørensen, CFO, who will take us through the presentation. As always, please ask any question you might have in the chat, and I will put them forward in a moment. But we'll start with a presentation which will take approximately 10- 15 minutes, and then there's plenty of room for presentation. My name is Tue Østergaard, and I'll be the moderator of today. Welcome, Erik. Welcome, Steen. It's a pleasure to have you, and I'll now hand it over to you, please.
Thank you very much. I will start going through some of the main numbers of the annual report that was submitted yesterday. Of course, here we have the normal statement on forward-looking statements, a general statement we do every time. Let's jump into the numbers. The overall theme is actually there's not really any news on the numbers presented, because this is the level as we indicated already during the guidance we have made in December and also in January on our 2025 performance. Revenue was down in 2025 compared to the 2024 numbers, and it was mainly what we saw in the first half of 2025. I will show a little bit the graphs later on here.
However, we did see an improvement in the margins, and that was driven mainly by a customer mix effect, and also being able to deliver on our strategy, which we built on since 2022, where we focused a little bit more on being an integrator role and having more project sales. EBITDA was, as a consequence of the lower turnover, also reduced, as we have a firm belief in the future. We have kept our fixed cost base at level, and that is deliberate. We want to be able to deliver on our growth going forward.
We also had a small effect on one-off costs linked to a ransomware attack that we saw in May. This is also being illustrated in the annual accounts. Despite the lower turnover, we were able to deliver on a strong cash flow, and that's something we have seen before. We are able to follow the fluctuations in the turnover, also adjusting our supply chain, meaning that once there is a fluctuation in turnover, we kind of don't burn cash in those times. We have a business model that are able to quickly adapt to changes, which is a strong thing.
An overall comment you could say is that under the condition we have seen, we are satisfied with the performance, but of course, we are more ambitious. We are confident that we have a good business model that we can build on for the future. The next slide here is our order intake, and that just illustrates a steady flow of orders. We have seen a good performance during the year, and then that's of course also what we will deliver on here for 2026 and going forward. We do have an order base that are close to 100% of the expectations for 2026. Here we are.
We see that as a positive. Of course, execution of orders can be delayed, but they are in the books, as we see it. The turnover, as already indicated, this illustrates the timing. We did see in Q1 and Q2 last year a lower turnover, and that came mainly from some projects but also a key customer in especially affecting the first half. We were able to see an upswing in our project turnover. That was what we saw in Q3 and Q4.
That again here directly illustrates in the performance and in the EBITDA and EBIT. We do see a strong second half of 2025 with supporting our business model and also our strategy. Because that's where we see the benefits of having the project sales and the project turnover in combination with service and product sales. This is also the whole basis for our 2026 expectations. Again, here also, I think it's also a way to demonstrate that we see a model that are able to deliver on a above 10% EBIT ratio, which is again our ambitions going forward.
Finally, we have our ESG report, which was also submitted yesterday together with our financial report. Again, here we see that we have improvements in all our KPIs that we report on. I recommend you to have a look at the report. It's quite a significant work performed here. Lastly, from my side, again, we just have the guidance that we have communicated on back in December, but also in January. Again, it's unchanged compared to what we see ahead of us.
Again, there is a room for adapting to all the uncertainty that we do see around in the world, but that's something we have kind of lived with now for some years, both out of North America, but also now in the Middle East. For now, we see we are able to commit within the ranges we have submitted here. Here, Erik, if there's any comments on the ESG or the guidance here, feel free to give input.
Thank you, Steen. Maybe on the slide on the ESG data, just going back to that one then, you know, we are of course a Science-Based Targets agreement, and there we have set some targets back in time and from our baseline 2019. We have actually more or less reached those requirements on our Scope 1 and 2 targets where we actually last year have reduced our emissions around 45%. Actually the real target for the Science-Based Target is actually 46% in 2030. We actually reached nearly that target on an early stage. Of course, we will continue this effort going forward.
Basically that is because of our introduction and full replacement of all cars, petrol cars to electric cars and.
I think that we lost the line to Erik and also Steen just for a second. We will just. In the meantime, I would like to encourage you all to put in all the questions you might have. I can see that there's a lot of questions coming in right now on, especially three subjects. First of all, the subject of the guidance. Then we will be back in just a second. We'll just take a short break. Thank you.
Our performance in 2026 is actually the performance we have already seen in the second half of 2025. We are building on what we already have done. It's not like a big change in strategy or in a lot of new orders that we just have to find. It's the order intake and again it is the solid performance we have seen in our main markets. We still believe in a strong growth in North America. We also see some upsides, again, in our more or less all our main markets. It's not like a big expectation for specific customers or a specific region.
Okay. A little bit more perhaps into the U.S. market, Erik, perhaps you can explain us a little bit about how do you see this market because there's so much turmoil going on and what's WindowMaster 's position into this?
Yeah. You could say that, our ambition is to have around 5% turnover originating from the North American market. Yeah. It's both U.S. and Canada.
Yeah.
We are nearly there. Of course, we also you could say have grown over time. Expectation is we would maybe in a certain period of time from 3-5 years, we'll see 10% of turnover coming from the North American market. What drives it is of course that we are seeing also a lot of refurbishment coming along, even though that building or construction industry have been a little bit sluggish because of the high interest rates that still are in place in the North America, in the U.S., for example. On the other hand, we do see activity in buildings that need you could say more sustainability approach.
There are very big pockets around in the U.S. where that is still going strong. We are optimistic. We have a good pipeline. One of the things you really need to have with the North American market, both in the U.S. and Canada, is you have to have patience. It doesn't come from one day to the next because a lot of sales work, specification work has to be in place. That's why we have, you know, our own subsidiary and also our own salespeople in the market to get these specifications in the pipeline. We are expecting that to grow over time with the numbers I've put forward.
Of course, there's also a growth in other areas, other geographies in and around Northern Europe, for example.
Yeah. Made, that's a good continuation going into Germany. Of course, Merz was out with a big plan to invest heavily in Germany. Have you seen the early signs of this or how do you see the German market for WindowMaster?
Yeah, I can answer this. We are quite optimistic about the German market. You can say it's also a big market for WindowMaster because our production of course is in Germany, and we have a sales subsidiary in Hamburg, and we have an organization in place to do sales, service, and project execution. Yeah. We have not really seen anything pick up yet, but we are optimistic about this is going to at the end of this year and into 2027 we'll see a pickup. Yeah.
What we know is there's more activity going on, especially among, you could say specifiers, and that's the early signal that things are going on for our you know for our solutions in the market. We are optimistic and we are also you know willing to allocate more resources going forward in the German market. Especially with our you know strategy work going forward.
The EU Green Deal, which you have been referring to sometimes, maybe it's also good to comment on that.
We see things come, but it's not really. It takes a long time. EU legislation takes a long time to implement because you can make a deal in Brussels, but it also has to implement it around in all the countries. Many of the things have not been actually implemented in, for example, Denmark yet. We have an EPBD that is saying you need to refurbish 3% of the public buildings. Today it's 1%. That has to be implemented in Denmark also. Especially this one will see a lot more refurbishment going on in a European context, which will be good for WindowMaster.
Okay. Back to the Nordics, you lost a strategic client in Q1, Q2 last year. Was that a structural thing or was it just a postponement?
You know, to be in more detail, we still have the customer, but and it's still a very good customer, but they had a decision to go a different way and for inferior product for the market because of price. You know, we could not be in the space and deliver to the customer going forward on that, but it's still a good customer. Yeah. We also talking about a lower margin customer because it's a you could say OEM, and that's why it doesn't impact fully on the profitability. Yeah.
Okay. To sum it up, growth is coming from a diverse range of markets, and you see this as a continuation of the second half of 2025. Is that a fair way of looking at it?
Yes. That's correct. Yeah.
Okay. That covers a lot of the market questions. I think that you will see that. Maybe let's take some of the strategic questions before going into some of the more detailed financial questions. You are referring to a new strategy or a strategy update for 2027 and 2030. What have driven you to comment on that, say that, and how will we see that as investors?
We have of course a strategy in place that's called Accelerate Core. Originally, that was kind of set as a target to end in 2025. We have actually said that we want to look at it and revise it in 2026. That is something we are working on and especially we'll be working on in the second half of the year. We are ready for a new budget year in 2027. Yeah.
Investors should expect this in the second half of the year, just to be clear?
Yes. Correct.
Okay. Cool. There's some more sort of questions about your communication to the market, where there's quite a few who wants to have a Q1 and Q3 releases. I know this has been on the agenda many times, but maybe you could just comment on this because I think what people wish to see is, of course, your momentum continue, and then that's good news. I think that's the assumption. The question is, do you see that? Do you consider that?
We took a kind of strategic decision for the investor relations side that we will communicate only first half and full year. That was to limit the cost and so on for us to really make a proper quarterly report because it also takes a lot of effort to do it because if you do it has to be done correct. You can't just put some numbers out and say, "This is just an indication." You're not allowed to do that. You need to do a full P&L for that reporting.
We have actually decided, you know, that that was too costly for now in the setup we are now on First North. We would expect it if we are on a main market one day, we would expect to go to a quarterly reporting.
Good. The continuation of your strategy, there's a question. You have announced three partnerships in the last year. I think the question is on an elaboration of those partnerships.
Yeah. It's since the beginning of the year, we have actually launched three partnerships, but they are a little bit different. You can take the one that we announced last week in Australia, which is a, you know, say, exclusive partnership with one Australian company that is going to promote and our solutions in on that continent. It's because we used to have several partners down there, but when you are very much in a specification market with projects, it is better to be with one because that company is making a lot of, you know, work for the future, and they don't wanna miss out on the opportunities they have created. That's why we've gone exclusive.
I was also down in Australia last week. Very exciting to be there. You know, it's also a continent where EU actually have made a trade agreement just this week. That's also why we look into that market, and it's a market we've been in for some years now. Yeah. That's the first one. Then there is a smaller one, and it's more to do with an EN certification and partnership with a window manufacturer. I don't see that that is a kind of quite normal thing we do, and we have several of these. That's not a big one, but it's important one for us. The third one is our collaboration with VEKA, which is a louvre manufacturer.
Here we have actually agreed with an exclusive partnership where we can on exclusive basis sell their solutions together with ours in our structure in the U.K. and Ireland, in North America, in the Nordics, and the Baltic countries. We actually already sell some of the solutions together with ours. You know, it's we sell into projects, and that is part of the value proposition now that we also sell the louvre solutions together with our control systems and so on. In those louvres, our motors also sit. Yeah.
We expect quite a lot of this over the next couple of years, and you can say, it is in our guidance also that we have, you can say, that will hopefully bring us up to the higher levels in our guidance.
Fair enough. If I may ask some more detailed, financial questions, I think that is also fair enough.
Yeah.
I'll just simply read them. Looks like you have spent or activated an amount of almost DKK 6 million on software in 2025, up from DKK 1 million in 2024. Is this a new level, or is there something one-off impacting 2025?
I can comment on that. It is, you could say, the first step or part of our digital journey on optimizing processes and having a solution around that. It's for sure not a level that we expect going forward. There were some one-offs to be done. We are now at a level from an investment point of view where we will be at a lower level. We will continue working on our digital journey.
There's a question on your balance sheet, and it goes with, it looks like you have repaid DKK 50 million of debt you added in first half. Can you share your thoughts about this, please?
We have a very close cooperation with our banks and that is we have facilities as also illustrated in the accounts. This is a normal way to run the business there. Whereas we normally see first half is not as challenging as we saw last year, but normally we see a little bit lower cash flow effect in that part. It's part of our way of running the business.
It is the second half where we generate normally all our cash in the setup, because that's also where you finalize projects and can take a lot of the turnover into income and also, yeah, get money as cash. Very, very classic.
Very classic. Fine.
Yeah.
I think the same question goes on your financial cost.
Yeah
Which was DKK 7.5 million in 2025.
Yeah.
There's a comment that that's a lot.
Yeah
Considering your market cap. The question goes: Will that reduce with the down payment of your debt will then reduce your financial cost in.
Yeah. For sure it will reduce, but I think it's also important to remember reading the note to the accounts that there are losses on exchange rates, but also gains. Because we are exposed to a lot of exchange fluctuations. Again, when you split it up as cost and income, then you see not the net, but the brutal effect. That will most likely be maintained also going forward. Yes, the finance cost will be reduced with the lower debt.
Yeah. Perhaps there's a few more questions about your cash position in 2026, but because of course, if you add your EBITDA to the cash position, you will sit in a much stronger financial situation, but also with a lot of cash on your balance sheet. I think the question goes on how do you perceive this cash position? Will you use it for investments? Will you return it to shareholders? What is your sort of thinking about your strong financial cash position end of year?
I would like to answer that one. We would like to also generate some bit of ammunition for also our, you know, it's in our strategy to do acquisitions. With this, you know, cash in hand, then we are able to make acquisitions as they come. Sometimes they come a bit opportunistic, but it's part of our strategy to do that. That will just give us the possibility to grow also non-organic and utilize our platform as the company is today to further growth, organic and non-organic.
Good. With that, we have concluded all the questions, Erik and Steen. Thank you very much for your participation. Sorry about the small delay in the middle, but I hope we came back doing well. I wish you a very good day. Thank you for participating. If you have any question, please go to the website of the WindowMaster, and you can check with all the information there. Thank you, Steen. Thank you, Erik.
You're welcome.
Thank you.