+++ Viessmann! NIBE, what now? +++

(The heat pump and investing - nothing but hot air?)

The news broke like a storm in the German news last week: Viessmann is switching to Carrier $CARR for a strong 12 billion euros. 💰

Only is this news really that big or isn't it actually exactly the scenario I have been hinting at and addressing in my previous posts on NIBE? ☝️

The heat pump market has been a topic with enormous potential and opportunities as well as risks, and not just since the decision by the German government and other countries.

This is reason enough for me to take a closer look at heat pumps and, once again, at my investment, NIBE Industri $NIBE B 🧐 I'd like to take a closer look at this topic.

The heat pump - definition and function:

In short, the heat pump is a power-heating machine that uses technical-mechanical work to take thermal energy from a source with a temperature lower than the target temperature and transfer it as useful heat to a heating system. [see Chart 1; Source 1.]

Heat pumps are primarily used for heating buildings, but also find application in the process industry, the domestic clothes dryer but also on the refrigerator (at least systematically with the process principle of the heat pump...).

Heat pumps are divided according to their method of operation, heat source, heat utilization and mode of operation. To go into all procedures would go beyond the scope of this article. You can find more details in [Source 2]. However, the most important thing for most people is the type of heat source.

There are three main sources of heat and the way they work:

• Air-to-water heat pump (Energy from ambient air is drawn in and with contact with the refrigerant, it evaporates, setting the heat pump cycle in motion).
• Brine-water heat pump (geothermal heat is transported for energy production via a geothermal probe and brine-filled pipe, so-called ground source heat pump)
• Water-water heat pump (groundwater is pumped via probe and well into another "well", here heated by the geothermal heat and then fed into the heating process)

The heat pump - advantages and disadvantages:

Below I briefly list the advantages and disadvantages of the heat pump. However, the advantages and disadvantages mentioned here are WITHOUT valuation. It is thus purely a list to get an overview. Also, certain points in advantages and disadvantages are only relevant if certain conditions are met!

No claim to completeness, it is in my loose considerations.

Advantages:

• Energy efficiency, through use of environmental heat
• Cost savings, lower energy consumption of the pump leads to lower operating costs
• Environmental friendliness, no fossil fuels therefore reduction of CO2 emission
• Versatility, different applications are possible - heating, hot water production and cooling
• Comfort, with constant room temperature throughout the year
• Durability, long service life and lower maintenance requirements

Disadvantages:

• High acquisition costsConventional heating systems are cheaper to purchase, therefore higher investment costs are necessary.
• Dependence on ambient temperature, ensures that especially in winter the energy efficiency decreases
• Space requirementDue to the size and the required installation space, more space is needed in the house and on the property.
• Noise levelSome heat pumps are noisy during start-up or under load.
• ComplexityHeat pumps are not maintenance-free and require regular maintenance to ensure the longevity of the pump.

The heat pump - a "short" history

In 1834, Jacob Perkins was the first developer to complete the construction of a machine based on the principle of the heat pump. At that time, he designed a cooling device in which ether was pumped into a cooling coil system and was used, for example, on ships. 💡

The machine he designed already contained the four main components of a modern heat pump: the compressor, a condenser, an evaporator and an expansion valve.

It was Lord Kelvin (yes, the very gentleman after whom the temperature unit Kelvin is named) who predicted that an "inverted heat engine" could and would be used for heating purposes. It was also he who realized that a heat pump, by its principle of drawing heat from the environment, would require less primary energy to be of effective use.

Nevertheless, another 85 years passed before the first heat pump for space heating was put into operation. It was pioneers like the German Carl von Linde (inventor of the modern refrigerator) and other inventors with a thirst for action, that it was precisely through refrigeration machines that heat pump technology could be further developed and built upon.

Finally, the Swiss Heinrich Zoelley was the first foolhardy inventor to propose and conceive an electrically driven heat pump using geothermal energy as a heat source. In 1919, he was granted the patent number 59350, and yet... again, the time was not yet ripe and a first technical realization took another 20 years. From 1930 the first air conditioners for room cooling with the possibility of additional room heating were built. The efficiency, however, was sufficiently modest. 😔

In the wake of World War II and the accompanying coal shortage, Swiss companies such as Sulzer, Escher Wyss, and Boverei developed and put into operation some thirty-five heat pumps between 1937 and 1945. The main heat sources were lake water, river water, as well as ground water and waste heat. The first mentioned pumps were water-water heat pumps. Special mention should be made of the heat pump of the Escher Wyss company, because this heat pump, built in 1937/38, was used to replace wood stoves in Zurich City Hall. This heat pump heated the city hall for 63 years. Until the year 2001.😳

Falling oil prices in the 1950s and 60s, on the other hand, were a major blow to the development of the heat pump. Burning fossil fuels was more lucrative, at times more effective and, above all, cheaper.

In Germany, the first heat pump was installed in a single-family house in 1968. Here, a ground-source heat pump was used in combination with low-temperature underfloor heating.

It was not until the oil embargo and the resulting increase in the price of oil that the heat pump suddenly became interesting again. But the story would be too simple if the many incompetent suppliers in the heat pump sector and the renewed drop in the price of crude oil at the end of the 1980s had not once again brought an abrupt end to the technology surrounding the heat pump.

It was finally the Swedes who, together with the Swiss company Sulzer-Escher-Wyss, developed and put into operation the largest heat pump system in the world (180 megawatt heat pump system) with 6 pump units of 30 MW each for the Stockholm district heating network. The system works with the heat source of seawater from the Baltic Sea.

From 1990, the rapid spread of heat pump heating began. The reasons were the technical advances, greater reliability, more efficient compressors and, of course, the sharp price reductions. 📈

Renewed and even greater importance was attached to the heat pump technology since the outbreak of the Ukraine conflict and the associated war. Because the heat pump promises the decoupling from the use of fossil fuels such as gas and oil.

The heat pump - manufacturers in Germany and internationally

In Germany, the market for heat pumps is served by manufacturers such as Bosch Thermotechnik, Stiebel, Eltron, Vaillant and, last but not least, Viessmann. Bosch Thermotechnik is the subsidiary of the supplier Bosch and comes from the acquisitions of Buderus and Junkers. This even makes Bosch one of the largest heating manufacturers in Europe. Vaillant was founded in 1874 and today stands primarily for the manufacture of heating, ventilation and air conditioning technology. Vaillant achieved sales of €3.3 billion in 2021. Vaillant's sales of heat pumps increased by 50% compared to the previous year. Striebel Eltron was founded in 1924 and has been developing heat pump technology since the early 1970s. The company generated more than 830 million euros in sales in 2021. There are plans to more than triple production capacity at the Holzminden site.

Among international manufacturers, Daikin Industriers and Panasonic (both Japan) as well as LG or Samsung (both South Korea) and NIBE Industriers (Sweden) are among the largest producers of heat pumps. Carrier Global has also bought further into the heat pump market with the acquisition of Viessmann and the also recent acquisition of Toshiba Klimatechnik.

It can be assumed that other, currently smaller players want to and will jump on the heat pump bandwagon. These include companies that we still classically associate with fossil fuels or only remotely with air conditioning and heating technology.

The heat pump - the market (in Germany), its key figures and future

The market for heat pumps has experienced a massive upswing in recent years. The sales volume in 2017 was 48 billion US dollars. Meanwhile, it is expected to double with up to 100 billion US dollars worldwide this year. 🤑

While Asia and the USA were the drivers of global demand for heat pumps until recent years, Europe has seen a veritable boom in demand since the outbreak of the Ukraine war. In Germany alone, sales rose from 154,000 heating heat pumps in 2021 to 236,000 units in 2022 (+53.25%).

The federal government in Germany also decided to consistently expand and standardize this heating technology by 2030. In 2024, half a million heat pumps are to be installed, and in 2030 the installed base will be 6 million devices. 📊

No wonder that the industry association "Bundesverband Wärmepumpe e.V. sums up: "Thus the heat pump becomes the new standard heating." According to its study of 30.01.2023, these goals can be considered realistic. [Source 3]

The market share of heat pumps in the so-called heat generator market increases in 2022 from 16.5% to approx. 25%. This means that every fourth heating system replacement involves the installation of a heat pump. Around 56,000 heat pumps were installed in new buildings, which corresponds to a share of 54% of newly built properties. 🏠

In 2022, 1.45 million heating heat pumps were in operation in Germany. Most of the systems were installed in only the past 15 years. With the long service life of these units described above, most of the units are still in their "youthful age", which is why the replacement rate of old units is currently still below 2% of annual sales. An increase of 5% is expected by the year 2030.

The International Energy Agency (IEA) expects heat pumps to expand from the current 1,000 to up to 2,600 GW (gigawatts) of installed heating capacity by 2030. In some countries, such as the USA and Scandinavia, heat pumps are already the standard heating system.

By the end of the decade, the heat pump industry association expects an annual installation figure of slightly less than one million heat pumps for Germany.

My investment - NIBE at risk?

Of course, reading news such as the takeover of Viessmann makes you wonder. Is my investment and the decision to invest in it the right one? Can the company survive in this tough market? Is the company prepared for the future?

NIBE - The company

In 1949 Nils Bernerup and Christian Backer founded Backer Elektro-Värme AB in Sösdala, Sweden, which manufactured the so-called Backer element (after a patent Chr. Backer for tubular heating element). In 1952 Bernerup also founded NIBE-Verken AB in Markaryd by taking over Ebe-Verken. Bernerup's initials have since given the company name NIBE.

With Sven Christiensson and subsequently Rune Dahlberg, NIBE developed into a leading manufacturer of tubular heating elements with an emphasis on quality and rational production by 1987.

However, the company was already present in 1952 with water heaters in the agricultural sector (in this case milking equipment), manufactured fireplaces for the Handöl brand as a subcontractor, later took over the company and in 1981 introduced the first heat pump (Fighter Twin) from NIBE. Production of heat pumps begins in Markaryd immediately afterwards.

In 1989 the Bernerup family decides to sell both Backer-Värme AB and NIBE-Verken AB. Employees from these two companies, together with two other investors, establish the now well-known NIBE Industrier AB and take over the business.

Gerteric Lindquist is appointed CEO, and he is still NIBE's Group CEO today.

NIBE Industier AB has been listed and traded on the Stockholm Stock Exchange since 1997. The IPO is also the starting signal for the company's strong expansion and acquisition drive, which continues to this day.

Since the IPO, more than 70 acquisitions have been made. The complete list can be found at https://www.nibe.com/nibe-group#Text3 and https://www.nibe.com/de/nibe-group/akquisitionen-der-nibe-group to be viewed.

A special feature of NIBE's acquisitions is the point at which the acquired companies become independent after the takeover. Newly acquired companies are encouraged to continue writing their own corporate history with commitment. This includes ensuring that acquired companies retain their identity and brands. Also, the previous business owners are left untouched as far as possible. The companies are to be continued with their previous management at the original locations and thus stand for continuity and responsible local action.

NIBE in figures = love?

The latest annual report can be found at [Source 5] dated 14.04.2023.

NIBE's core market is North America with 27%, the Scandinavian countries with 22% and Europe with 46%. In 2022, sales amounted to Sales amounted to SEK 40.071 billion (EURO 3.5 billion) to SEK 30.83 billion (EURO 2.7 billion) from the previous year. This corresponds to a growth of 30%. Sales growth has been stable for at least 5 years.

The earnings per share were 2.17 SEK (0.19 EURO). This is also the fifth year in a row that profit has increased.

The operating margin increased slightly in 2022 from 14.4% (2021) to 14,7%. After tax, NIBE will achieve a Group net profit of SEK 4.428 billion (EURO 387 million), an increase of 33.16% compared with the previous year (SEK 3.348 billion). With an equity ratio of more than 50% the company is financially sound and ready for further acquisitions.

NIBE pays a dividend. However, this is quite meager. It makes sense, however, given the capital outlay required for development and acquisitions. The dividend yield related to the share price is approx. 0.57% at 0.65 SEK (0.057€). In the long term, the payout ratio is expected to be 25-30% of net income. Investors should also be aware that Swedish shares are subject to a higher withholding tax.

NIBE = the future?

NIBE has already defined targets for its corporate activities in the past. These include targets for key performance indicators, but also targets in the areas of SRI and ESG.

The main corporate targets are growth (at least 20% per year), return on equity (at least 20%), operating margin (at least 10% of sales) and equity ratio (not to fall below 30%).

In terms of sustainable corporate goals, 60% of the product portfolio was originally to represent sustainable and higher climate protection by the end of 2023; this goal has now already been achieved at 63.2% and has therefore been reformulated to 70% by 2026.

Energy consumption is to be continuously reduced, and the accident rate at the workplace is to remain constantly low. To this end, the LTIF value will be looked at.

The CO2 balance is to be improved and by 2050 NIBE wants to be completely climate neutral. To achieve this, emissions are to be reduced to 65% of the 2019 baseline by 2030. This corresponds to 11,500 tons of CO2.

NIBE sees its opportunities in the area of energy efficiency in the end user's own home, everyday safety in the supply of hot water, building energy efficiency and infrastructure and industry.

Opportunities from NIBE:

• great market potential for heat pumps and air-conditioning solutions
• Potential in the renewable energy sector
• International market presence
• broad product range
• intensive and driving product development
• Synergy effects from new acquisitions and cooperations
• Expansion through acquisitions
• Energy prices could force consumers to take action

NIBE's risks:

• Changes in legislation and decisions by authorities, with impact on existing product ranges
• weak economic activity
• increasing competition and competitors from Asia and the USA
• energy prices could decrease for consumers or increase for production
• raw material prices
• Currency fluctuations (SEK to dollar and EURO)
• supplier dependency (see supply chain issues)
• geopolitical situation such as wars and sanctions

The bottom line:

The topic of heat pumps is a highly complex one. Not only are politicians currently looking for solutions and ways to quickly move away from fossil fuels or to reduce dependence on certain countries or resources, no, complex interrelationships such as the energy-efficient use of air-conditioning technology products or heat or cooling pumps used in production and process chains also play an important role for the future.

The sale of Viessmann's air conditioning division to a major player in air conditioning technology shows that the cleaning and consolidation of the market is only just beginning. Large groups will penetrate the individual regional markets, especially from the Asian environment.

In terms of market technology, there is still a lot of cake to be distributed, but the distribution battle is not a children's birthday party and will take one or the other competitor and protagonist out of the race.

Viessmann was only the beginning for us Germans and now of all times the big outcry. In a normal news situation without the explosive nature of today, this takeover would probably have remained a marginal note. Now here meanwhile and at times with brute words like the "sellout of German industry"... but this sale is by no means a sell-out, but it shows the direction in which the market is moving. Eat or be eaten.

NIBE has been expanding for many years now. The company's activities are broadly based and not just limited to heat pumps. Whether it is heating solutions with fireplaces, the heat pumps or as a partner to industry, NIBE has established itself as a professional, solution-oriented and, above all, committed company (in terms of the environment and social responsibility). The solutions it offers are constantly being developed further, cooperation with other companies is being sought and the expansion course that has been embarked upon is being constantly pursued.

I am not currently concerned that the market for heat pumps or other climate-friendly solutions will wane or that it will be sold off to Asian competitors (as has happened in the past with PV and solar solutions). NIBE would do well to maintain its growth trajectory.

I am also positive about the company's future goals and competencies and hope for further sustainable developments in the future.

I am sticking to my guns, even though I expressly warn against exuberant feelings about shares:

NIBE is LOVE. ♥️

At least for my portfolio.

Source 1: Chart 1 - https://um.baden-wuerttemberg.de/fileadmin/redaktion/m-um/intern/Dateien/Dokumente/2_Presse_und_Service/Publikationen/Energie/Energieeffiziente_WP_Heizungsanlagen.pdf or as video under https://youtu.be/KDL1Xf-kuIA

Source 2: Wikipedia on the heat pump https://de.m.wikipedia.org/wiki/Wärmepumpe

Source 3: Industry study heat pump 2023 https://www.waermepumpe.de/fileadmin/user_upload/waermepumpe/05_Presse/01_Pressemitteilungen/BWP_Branchenstudie_2023_DRUCK.pdf

Source 4: Graphic from the study of source 3, sales heat pump (Industry study heat pump 2023)

Source 5: Annual report 2022 from 14.04.2023 https://www.nibe.com/download/18.4ccfd67f186f21bb5967bdd/1681288254456/DE-G-bericht-22-W.pdf

#nibe

Long live the #tldr club ! 📝

COLOPLAST - A company by people for the people? (Attention, very long, reading time: 25 minutes!)

I have had a position in Coloplast in my portfolio for some time. Whether I will further expand this, currently still small position, in the coming time, I will explain to you with the following full-length essay.

TL;DR: Coloplast is a company from Denmark. It operates in the healthcare sector, specifically ostomy and continence care. This company is relatively little in the focus and offers with its broad commitment to all investors interested in sustainability an interesting investment opportunity + dividend.

As a prelude to this text, I recommend watching Coloplast's image film. The mood allows a first insight on the following lines and my personal opinion on this investment. https://youtu.be/BczJSbplEHo (2 minutes)

Content:

• 1.Coloplast - the company and its history
• 2.medical background knowledge about stoma, continence and wound care
• 3.products from Coloplast and their customers
• 4.key figures
• 5.what makes the company a SRI/ESG company for me?
• 6.conclusion (& epilogue)

Coloplast - The company and its history

Coloplast A/S is a company from Denmark, which develops and offers products and services around the basic medical care of stoma and continence patients and affected persons, as well as wound care and skin care.

In Germany, the company also offers Coloplast Homecare, which focuses on home care services for ostomy and continence care.

The company has its roots in the work of Elise Sörensen, who developed the first plastic ostomy bag with self-adhesive contact surfaces on the skin for her sister Thora Sörensen in 1954.

In 1957 the company was founded in cooperation with the plastic manufacturer Louis-Hansen.

The artificial word Coloplast is derived from the word "colon", technically for intestine, and the "plastic" for the plastic material used in the ostomy bags.

In 1983, the company went public and at the same time established its first sales office in Germany, which currently has over 600 employees. The company as a whole employs over 11,000 people. [Sources 1 & 2]

The CEO of the company is Kristian Villumsen (born: 1970), who has been leading the company since 2018.

2.Medical background knowledge on ostomy, continence and wound care.

(Attention: Readers should be aware that medical details can only be given in layman's terms by me. Furthermore, it should be noted that details of medical problems may be covered here, which may cause anxiety reactions in some people - if you are one of them, skip paragraphs 2-3!)

Stoma:

The ancient Greek word in German stands for mouth, mouth opening or opening in general. In medicine, a distinction is made between the different types of stoma. Concerning this does the pharyngeal stoma, enterostoma (artificial intestinal outlet) and urostoma (artificial urinary outlet), tracheostoma (tracheal incisions), gastrostoma (stomach opening through the abdominal wall), ileostoma and jejunostoma (both opening variants to the part of the small intestine through the abdominal wall).

For the present company I would like to come briefly to the main points of the same. These are the enterostoma and the urostoma, which are covered by Coloplast with various products (see point 3).

The enterostoma is an artificial intestinal outlet. This artificially created anus through the abdominal wall of the patient is used to discharge excretions that cannot be discharged in the "natural" way due to tissue neoplasms, narrowing or obstruction in the lower area of the intestinal outlet, i.e. up to the anus.

A urostomy is an artificially created urinary outlet, which can also occur in the human bladder due to the above-mentioned phenomena. A special feature here is often the cancer diagnosis.

Basically, it can be said that most of the reasons for the creation of a stoma in the medical history of tumor patients (i.e. cancer patients). A good 70% of these patients have this medical history.

According to estimates, in Germany alone there are about 150.000 who live their daily lives with an artificial bowel outlet. [Source 3]

Stomas are generally created by surgery and are made through a so-called abdominal incision. In the case of stomas without major surgery, a minimally invasive surgical technique is also used, e.g. laparoscopy. One of the basic things before such operations is the postoperative marking of the stoma position in order to enable an optimal position of the stoma in all aspects of life, such as sitting, walking, lying and standing. In the course of this, external features such as skin folds are also taken into account in order to prevent poorly adherent stoma care and associated poorer quality of life.

Good to know: There are different types of enterostoma, which differ in surgical technique and permanence of the stoma. They can be made permanent or temporary (for temporary intestinal leakage, etc.).

Risks of stomas and their creation are naturally present in operations, which in rare cases reflect on the injury to the intestine, neighboring organs or vessels. Here it can come to blood poisoning, intestinal paralysis and in rare cases to fistula formation. Due to the constant development in the surgical and medical field, complications during the operation have become rather the rarity.

However, the focus of risks lies more in the postoperative and everyday phase of life with the stoma. Here, on the health side, skin irritations, bacterial inflammation of the discharge site, infections or bleeding can occur. In everyday life, there may also be complications in the durability of the stoma during sports activities.

Stoma patients no longer have control over the timing of bowel activity, or its expulsion, which consequently requires appropriate care and treatment.

Nevertheless: With a stoma itself, life can be continued as normal and unrestricted as possible, provided that the stoma is properly fitted and the patient takes good care of it. Sports, work and even sexual activities are possible normally! [Source 4]

Only when lifting weights one should limit oneself to about 10kg to avoid e.g. abdominal perforations.

Affected persons can make an application to determine the degree of care (especially for older, restricted persons). Furthermore, the degree of disability (GdB) can be applied for, which is usually at least 50% and thus entails a claim to a severe disability card with corresponding legal consequences. [Source 5]

Contact points for stoma patients in Germany are the Fachgesellschaft Stoma, Kontinenz und Wunde e.V. or die Deutsche ILCO e.V..

Continence:

In general, continence is first understood as the ability to retain bodily excretions and to trigger the excretory process in a voluntary, controlled manner. Various diseases such as bladder or kidney diseases, but also diarrhea and various diseases of the nervous system can lead to a (temporary or permanent) loss of this ability. This leads to the well-known urinary or fecal incontinence.

Such incontinence is stressful for those affected insofar as the involuntary and uncontrolled leakage of urine or excrement in everyday life "accidents" make social participation seem almost impossible.

Incontinence is not a marginal social issue! Sources estimate up to 10 million people in Germany alone. alone. Worldwide there are about 200 million people are affected by incontinence. [Source 6] - assuming 11.6 million families in Germany [Source 7], this would correspond to almost 1 affected person per family and thus to one's own environment.

In Germany, about 25% of all women and about 11% of men are affected by incontinence. Important figures on incontinence in men and women can be found at source 8.

Wounds and their care:

A wound is an injury to, and thus defect in, the protective covering tissue of skin or internal mucous membranes of body surfaces. Wounds can occur with or without tissue loss. Wounds are the result of violence but also diseases.

Along with the term wound there are different types of wounds. Mechanically caused wounds such as cuts, puncture wounds or bites; thermal wounds such as burns or frostbite; chemical wounds such as chemical burns on the skin or mucous membranes or radiation-induced wounds such as those caused by X-rays or UV radiation require corresponding forms of treatment and necessities of care.

An overview of different wound types can be found on a subpage of Colopast. HERE AGAIN URGENT WARNING: Under the link you will find real pictures of wound sites, which are NOT recommended for readers with appropriate sensitivity in this topic! [Source 9]

3.products from Coloplast

The above-mentioned clinical pictures, types of health restriction and the resulting problems in the everyday life of the affected persons result in urgently competent and above all sophisticated solutions, which must meet the highest medical and at the same time everyday requirements of the patients.

Coloplast has identified corresponding sub-areas for this purpose. These can be divided into stoma care, continence care, wound care and urology.

In the professional area of hospital and practice care, as well as user practice, Coloplast divides into stoma care, bladder management, bowel management and wound care. [Source 10]

Coloplast's customers include hospitals, medical wholesalers and specialty retailers, pharmacies, and physicians.

In the homecare segment, patients are addressed directly and given direct access to Coloplast's broad product range via the connected online store.

I want to add it here right away: With the best will in the world, I cannot list the entire horizon of Coloplast products here. The range of care, accessories and basic equipment is so broad and deep that this alone would mean another 10 minutes of scrolling in your timeline. Nevertheless, I want to publish briefly on the essential products that are interesting to me and meaningful for the consideration of the company.

What stands out about Coloplast's products is that the company is present in each of its market segments among the leaders, if not as the leader.

The reason for this lies in the development of new products close to the patient. Here, the focus is on cooperation with nurses and doctors. Through personal contact, including with patients, some very significant developments and advances have been made in the area of ostomy and wound care.

I will explain this idea and the actions around it in section 4 (What makes the company an SRI/ESG company for me?).

a. Products for stoma care:

Coloplast offers various systems for ostomy care. The Group distinguishes between one-piece and two-piece stoma bags. In the case of one-piece ostomy care, the pouch is firmly connected to a corresponding skin protection plate and is therefore always changed completely and daily. With the two-piece ostomy supply, the so-called base plate remains attached to the abdomen and the outlet site for 3-5 days, thus reducing the daily time required for changing the ostomy bag.

Since the skin under the supply with the one-piece supply is heavily stressed, patients often opt for the less stressful variant of the two-piece supply, whereas patients also reach for the one-piece supply, since here the daily change of the complete system is perceived as more hygienic. In addition to the two systems of care, Coloplast offers patients a wide range of accessories for a self-determined life. These include skin protection cream, wipes, extension products, but also technical accessories.

The main focus of stoma care are the so-called stoma bags, which are available in different designs, shapes and application techniques. Depending on the daily stress or activity, such as sports, individual solutions are required.

A distinction is made between the three main categories of closed, open and urostomy pouch systems.

Closed pouches are usually used for colostomata (i.e. large intestine openings), where the stool is usually rather solid. When the bag is full, it is completely replaced and disposed of.

Open bags are usually used for ileostomata (openings in the small intestine), where the stool is usually liquid. Nevertheless, sometimes the open bag is also used for colostomata. As the name suggests, the open pouch can be emptied and cleaned accordingly. The advantage here is that the pouch does not have to be changed as frequently as with the closed system pouch.

The third bag is the urostoma bag, which is used for artificial urinary diversion. This bag can also be emptied and changed as needed.

Depending on the type of stoma fitting (one-piece or two-piece), there are so-called base plates for the fitting, which function according to a click-and-connect system. In the case of two-part ostomy care, the corresponding pouch can thus be easily and conveniently removed from the base plate and appropriate disposal and care can be ensured.

In general, all pouches and base plates are available for ALL age groups. Thus, even children as young as 6 months can be supplied with appropriate plates and pouches!

The large selection of products shows that Coloplast operates very close to the reality of life of many of its patients and offers appropriate solutions.

Users and professionals can purchase Coloplast products directly in the respective online stores. For this purpose the Onlineshop (Beutel und Systemzubehör) or the Homecare Shop mit verschiedenen Pflegeprodukten is available.

b. Continence care products

For continence care, Coloplast provides SpeediCath ®, a solution with disposable catheters. Here, special consideration is given to the sensitive urethra and catheterization (i.e. insertion into the urethra) is made easier for both men and women with uniform coatings and ready-to-use designs.

For men, the SpeediCath system is divided into Flex, Compact, Compact Set and SpediCath.

For women, SpeediCath is divided into Compact Eve, Compact Plus, Compact Set and Standard.

All systems have discretion, simplicity of use and safety as features. Here, the options for use are very individual and sometimes go a long way towards meeting the different needs of patients.

The range of catheters and their scope of application is both deep and broad. Especially for the flexibility in everyday life at work, leisure activities and sports, the products are very well adapted.

Further information can be found at: https://www.coloplast.de/Kontinenzversorgung/finden-sie-das-passende-produkt/

c. Wound care products

In the field of wound care, Coloplast offers various solutions ranging from dressings, plasters and gels. Corresponding solutions are available with foam composite solutions, silicones or other fiber composites. Here, too, the range is very broad.

Solutions are offered for both infected and non-infected wound sites.

Further information on wound care products can be found at: https://www.coloplast.de/Wundversorgung/fachkraft/produktloesungen/

4.Key figures

Coloplast always publishes the current annual report and annual report in November due to the postponed fiscal year. Accordingly, the latest annual report is available with the 9 month report (3rd quarter fiscal year 2021/22) until June 2022. I will be happy to submit the latest report on 07.11.2022!

The quarterly report for the third quarter of 2021/2022 shows that a turnover of DKK 5.849 million was reported compared to DKK 4.835 million in the previous year. The net profit amounted to DKK 1.289 million. This corresponds to earnings of DKK 6.06 per share. Sales in the first 9 months of the financial year amounted to DKK 16.52 million, compared with DKK 14.32 million in the same period last year. Net profit is therefore DKK 3.476 million compared to last year's DKK 3.52 million. [Source 11]

The P/E ratio in 2021 was 37.38. The KUV in 2021 was 9.26.

A dividend yield of 2.25% on a 12-month basis, i.e., DKK 19 (EUR 2.55) per share certificate, is planned for the current year. The company has so far paid out dividends twice a year. While a small preliminary dividend flows in May of the fiscal year, the main dividend is then paid in December.

The exchange rate DKK to EURO is: 7.446 (as of 25.10.2022)

The last annual report with a lot of information about the company can be found directly on the pages of the Investor Relations von Coloplast.

Basically, the Investor Relations page of the company can also be praised. All reports and key figures can be found here, and relevant historical events and presentations can be searched for and read.

Various statistics and reports can also be found on the topic of "sustainability".

Further (current) key figures can be found at aktie.traderfox.com read up on.

5 What makes Coloplast an SRI/ESG company for me?

Dealing with customers and those affected by stoma and continence care:

As can be seen from the previous sections, the company's main focus is to provide people with medically necessary products that make everyday life easier in the case of a corresponding clinical picture. Various solutions are offered, which are closely oriented to the users and those affected.

The company's motto is: "By users, for users". Customers and caregivers can constantly suggest improvements and tips for the products and give feedback via special hotlines and channels.

The company then further develops the corresponding solutions and products in response to this feedback and can thus benefit from the experience of its own customers. A true win-win situation for both sides.

And if that is not enough... There is an internal customer council for each of the two core areas of the product range! These advise the company in direct communication on products and services. [Source 12]

In all areas of patients' lives, Coloplast provides assistance and offers solutions in every conceivable scenario.

At Coloplast, concern for those affected begins BEFORE any possible treatment with the company's products. This becomes clear in the area of stoma care, where detailed attention is paid to patients. Thus one can supply oneself with references before the Stomaoperation, after the Stomaoperation and a life with Stoma.

In addition all information is made available free of charge, with examples directly descriptive represented, important and meaningful Tipps for a life organization with Stoma given. Also relatives of stoma patients are directly "picked up" and thus involved.

Hours, if not days, go by just reading the information provided on stoma and continence. I, too, first had to process what I had read and let it take effect. And nevertheless: The entire appearance and the handling of the enterprise with its working in this range hardly leave an open question. The company never gives interested visitors the feeling that it is focused on profit, but rather on people, patients and their relatives.

Posts about the company's topics are shared on the various social media channels. Podcasts provide insights into the lives of people with stomas and incontinence. On Youtube, there are countless instructions for the correct care of ostomies and use of catheters and ostomy supplies.

I recommend here expressly the Youtube Präsenz von Coloplastwhich includes deep and especially worth seeing impressions about the portfolio, the assistance in everyday life and other topics around the care of loved ones. Rarely have I seen such "passion" for one's own clientele!

A big and natural topic for Coloplast is "inclusion". This is about the participation and affiliation of people affected by illness in general, professional and (free-time) sporting life. In life with illness (and especially with regard to Coloplast's special business), affected people often experience stigmatization and social restriction. The company distinguishes itself by breaking down this barrier and putting people at the center. For the second time, the company has conducted a study on the topic of "inclusion" together with the FORSA Institute. The results can be found at Coloplast und Inklusion read about the results.

Ein Podcast and ein Blog report close to the patients and the everyday life of stoma patients.

In addition, there are various regularly published magazines as a FREE SUBSCRIBE on the topics of stoma (Wendepunkt magazine), continence (Perspektiven magazine) and a magazine for relatives and carers (Collegial magazine). The magazines can be ordered FREE by anyone or read online. [Source 13]

With Coloplast products, people with stoma or continence problems regain a great deal of freedom and participation. Favourite occupations and sporting activities can be continued without restriction as far as possible. Due to discreet and simple handling, outsiders sometimes no longer recognize any impairment in your counterpart. As a result, patients' self-confidence and independence can grow and they experience no restrictions in life and their environment.

The health group is also active in the field of education and teaching. Thus, various seminars are offered for professional users in the medical field.

In particular, the service around the home care of patients occupies a large space at Coloplast. Coloplast Homecare is an all-round carefree package for all stoma and continence patients. Within the framework of this package, advice, support for preoperative stoma marking (see section 2!), customization of products, nutritional advice and guidance by trained stoma specialists are provided.

The counseling service offers various contact options, including video chat, postal contact, e-mail or chats, but also on-site visits in the personal living environment of the person seeking help.

The offer is basically available to all stoma and continence patients under https://www.coloplast-homecare.de/ available.

The company's internal handling of guidelines for SRI (Socially Responsible Investing) and SDG (Sustainable Development Goals):

Coloplast has proclaimed internally the goal of the UN's Sustainable Development Goals (SDGs) as a guiding principle for corporate action. The SDG is a political declaration of the "17 Sustainable Development Goals" by the UN, which applies to all countries in the world. According to this, the securing of sustainable development on an economic, social and ecological level is the declared goal for a global future. [Source 14]

Internally, the company acts according to the self-developed goals and the project Strive25. This project includes essential features of corporate culture, sustainable growth and leadership management.

The decisive factor here is sustainability in relation to the environment, but also social commitment. Growth should be characterized by innovation and sustainability. Through leadership management, the company wants to become and be a leader in all aspects of the company and its segments.

The special feature of Strive25 is the fact that the 4 topics - innovation, (incomparable; sic!) efficiency, sustainability, talent and leadership - are equally distributed in their weighting with the three main business areas as a unit and integral component are seen.

All areas of the SRI "standards" [source 15] are addressed by Coloplast. Be it equal rights and the inclusion of women in management levels, the integration of physically handicapped employees or the aspects of environmental protection.

By its very nature, Coloplast is a major producer of plastic. This is mainly due to the nature of the products and their characteristics, namely hygiene and application practice. Here, therefore, the focus is on waste prevention, low-pollutant production and sustainable durability or recycling of the materials used. The Strive25 charter sets out the sustainable goals for the period up to 2025.

These include recycling 90% of the packaging produced, ensuring that 80% of the packaging is made of recycled or renewable material and that 50% of the production waste can be recycled.

Among the social responsibilities, in addition to the reduction and prevention of accidents at work, there is also the equality between the different life plan models and genders (diversity), the elimination of the gender gap (different remuneration for the same work and skills for men and women) and the Decent Work and related economic growth of the company. In addition, Coloplast is committed to promoting and appointing more women to management positions. The goal is to reach at least 30% by 2025. [Source 16]

6.Conclusion (& Epilogue):

Market Leader + Social Responsibility = BULLISH. 🚀

What more is there to say now? In this detailed excursion into the company and its business area, I probably haven't even compiled all the topics and information for you that the websites, social media channels, and numerous brochures have to offer.

The company offers affected people an all-round carefree package of information, care and products that make life easier, more inclusive and, above all, more carefree.

Due to the progressive aging of our society, but also the constant medical advancements, a large customer base can be expected in the future. The advantage of leadership, i.e. the leading position in the market segments of the company compared to its competitor is great. Market competitors (rivals) include the following companies Hollister and ConvaTec.

The company leads a strict policy of sustainable development and implements these goals in an overall business perspective. Of course, this process and all the "trappings" cost a lot of money, but in my opinion there can hardly be a better way than the one Coloplast has chosen, especially when dealing with people.

For me, this is clearly a reason why I will continue to hold the company in my savings plan in the coming year or build it up in my portfolio with individual purchases.

Epilog:

I have felt steadily growing admiration and respect for all involved and employed in the health and care field during the course of my extensive research on disease patterns and their treatment as well as care. Thank you for being there for people, whether they are caregivers, nurses, doctors or physicians, family members or friends of patients on this spectrum! What I gained there in terms of insight and pictorial representation is definitely not for everyone. It shows me how much we should be grateful that there are people like. @Koenigmidas , @Servus_Lea@Anna11 , @FrauManu , @Greenery and others, who spend their health, nerves and time every day to care for patients and make a full life possible.

NO INVESTMENT ADVICE, BUT WITH A LOT OF LOVE.

Greetings also to the boyz of #tldr . @DonkeyInvestor
@BASS-T and the Prosepect @Koenigmidas !

For statistics: words - 4,013, characters without spaces 28,123 + ♥️

Sources:

[1] The history of our brand (https://www.coloplast.de/ueber_uns/unternehmen/coloplast-geschichte/)

[2] Wikipedia about Coloplast (https://de.wikipedia.org/wiki/Coloplast)

[3] Cancer Society on ostomy indicators (https://www.krebsgesellschaft.de/onko-internetportal/basis-informationen-krebs/krebsarten/darmkrebs/anus-praeter-der-kuenstliche-darmausgang.html#:~:text=Stomas%20helfen%20Darmkrebspatienten&text=Leben%20mit%20Darmkrebs%20bedeutet%20f%C3%BCr,150.000%20Menschen%20mit%20einem%20Stoma.)

[4] Wikipedia on enterostoma (https://de.wikipedia.org/wiki/Enterostoma)

[5] Living with CED on "My rights with stoma" (https://www.leben-mit-ced.de/informieren/leben-mit-ced/stoma-hilfsmittel/morbus-crohn-und-colitis-ulcerosa-meine-rechte-mit-stoma.html#:~:text=Als%20Stomatr%C3%A4ger%20erh%C3%A4ltst%20Du%20vermutlich,viele%20der%20gesetzlich%20vorgesehenen%20Nachteilsausgleiche.)

[6] Incontinence facts and figures incl. infographics (https://www.insenio.de/ratgeber/inkontinenz-zahlen-und-fakten/#:~:text=Inkontinenz%20betrifft%20allein%20in%20Deutschland,M%C3%A4nner%20in%20Deutschland%20sind%20inkontinent.)

[7] Federal Agency for Civic Education on family households in Germany (https://www.bpb.de/kurz-knapp/zahlen-und-fakten/soziale-situation-in-deutschland/61597/familienhaushalte-nach-zahl-der-kinder/#:~:text=Werden%20unter%20dem%20Begriff%20%22Familie,Deutschland%2011%2C6%20Millionen%20Familien.)

[8] Statistics on female and male incontinence (https://frauengesundheit.life/tabuthema-inkontinenz-zahlen-daten-fakten)

[9] Wound knowledge overview on the pages of Coloplast [ATTENTION! Graphic content on wounds!] (https://www.coloplastprofessional.de/wundversorgung/wundwissen/)

[10] Coloplast Professional (https://www.coloplastprofessional.de/wundversorgung?utm_content=coloplast-professional&gclid=EAIaIQobChMIzqXYzIL7-gIVUKHVCh3gvQm_EAAYASAAEgKm-PD_BwE)

[11] 9 Monthly Report (3rd Quarter) 2021/2022 from August 2022 ( https://investor.coloplast.com/contentassets/fcd65edf83ab483484ad81d63f284fad/07_2022_9m_earnings_release.pdf)

[12] The customer council and customer dialogue at Coloplast (https://www.coloplast.de/ueber_uns/servicewelt/kundendialog/)

[13] Coloplast magazines on the topics of stoma, continence and care (https://www.coloplast.de/ueber_uns/servicewelt/magazine/)

[14] The 17 SDG goals of the UN (https://sdgs.un.org/goals)

[15] SRI investing at Wikipedia (https://de.wikipedia.org/wiki/Ethisches_Investment)

[16] Strive25 Charter of Coloplast (https://www.coloplastprofessional.de/globalassets/content-blocks/multisite-pages/sustainability/cp_sustainability_brochure_a4_final_single-pages_09082021.pdf)

#aktien
#stockanalysis
#lesrn
#coloplast
#tldr
#stocks

STEICO SE - Annual Report Q03/2022 - steady growth 📈

STEICO SE presented its figures for the past quarter 03/2022 yesterday evening and, according to them, continues its growth course in terms of sales, gross profit and earnings. In the first nine months, an increase in sales of +20.9% to 348.9 million euros is reported (same period last year 288.6 million euros) - despite the worsening economic outlook (see et al. Baugenehmigen 2022). Total operating performance amounted to 358.7 million euros (previous year's period 290.00 million euros).

Nine-month EBITDA was 75.6 million euros (+15.5%), EBIT was +14.7% at 57.5 million euros (previous year50.1 million euros).

According to the management, the ordering behavior of customers normalized in the third quarter and sales increased by 9.4% to 111.4 million Euro (considering only the 3rd quarter). The EBIT margin could be kept stable and is therefore 16.0%, with the total EBIT margin in 2022 at 16.4%.

Net income (9-month view) currently stands at 41.2 million euros (prior-year period: 35.2 million euros) - results in an increase of 17.0%. 👏

According to the annual report, the Feldkirchen-based company continues to assume that the significant order backlog that has arisen in the past will continue to have a stabilizing effect on business activity and thus bring with it a hedging character for further medium-term business development. The shift from new construction projects to refurbishment work is noticeable. 🔨

Customers' ordering behavior is expected to normalize further in the fourth quarter, which is why growth is likely to slow slightly in the coming quarter. Sales growth is still estimated at around 18% for the full year. In terms of margin, there is also no deviation from the original target of 13-15% for 2022 and the target is considered realistic and achievable. 🤝

Rising interest rates and high inflation naturally have a corresponding impact and it is therefore not surprising that this also has an influence on construction activity and corresponding orders in the company's most important market, Germany. As a result, fewer single-family houses are being built, while multi-family houses are seeing only slight growth - but renovation work on older properties is on the rise.

This has not least also with the plans of the Federal Government and politics to do the promotion measures for energy efficiency and energetic reorganizations further to increase and accordingly promote. Up to approx. 17 billion euros are in the pipeline for the year 2023 🤑.

The strongest products in STEICO's portfolio continue to be Ecological Insulation Materials (+16% to €230.1 million), followed by Web Beams (+38.6% to €51.5 million) and Laminated Veneer Wood (+19.6% to €34.0 million). 🪵

The annual report also pays particular attention to element production. Here, an increase in sales of a strong 112.3% was observed. Although the area is still very small at 2.1 million euros, it points to a possible scalability in this area of the market in the future. 🔮

Conclusion: 🚀 Bullish.

As expected (see my commentary on the latest post-buy in STEICO, from 17.10.2022), inflation and interest rates have led to a slight decline in the order situation and thus normalization in the construction industry. Although fewer new construction projects will be realized in the near future, I also see an increasing demand for energy-efficient refurbishments and corresponding projects. Particularly with regard to the climate and energy industry, greater demand can be expected in the area of insulation materials, as old buildings often have to be fundamentally renovated before, for example, a corresponding heat pump can be installed.

Here STEICO SE offers, among other things, ecological blow-in insulation materials, but also ready-made solutions (such as insulation boards) made of wood fibers.

The capacity expansions carried out this year in France (already in regular operation) and Poland (new production plant at the old Czarna Woda site, plus a new site being built in Gromadka) are having an effect and can correspondingly absorb the order backlog that still exists in the industry. This should not go unmentioned either: Our competitors in the sector are not sleeping. There, too, corresponding preparations have been made or market entries are planned.🤨

Despite the deteriorating economic outlook and the possible competitors, I still see STEICO SE as a leader in the sector for ecological building materials and thus sustainable construction and renovation. The opportunities that present themselves in the area of refurbishment are well covered with corresponding products and segments and are constantly being expanded and improved. 🤌

I will of course remain invested in STEICO SE and will certainly make one or two additional purchases, especially in view of the decline in the share price this year. I will take advantage of the opportunity to reduce my purchase price 💸.

STEICO is in my portfolio and was saved by me to a target size in the savings plan.

Sources:

DSTATIS: Building permits in August 2022 incl. annual view 2022. https://www.destatis.de/DE/Presse/Pressemitteilungen/2022/10/PD22_446_3111.html

STEICO 9Month Interim Report 10/2022 as PDF

https://www.steico.com/fileadmin/user_upload/Investor_Relations/2022_Veroeffentlichungen/2022_Finanzberichte/DE_STEICO_Q

@DonkeyInvestor Characters (excluding spaces): 4,748 TL;DR for EVER! ❤️

#tldr
#steico
#news
#stockanalysis

I do not like to make advertising in own thing, but,... (Oh, listen for yourself!)

Enclosed also still links and references to the addressed topics:

Bondora:

Bondora G&G presented: https://getqu.in/JJN8793C00II/dwoXcpNv55/

Bondora G&G stopped: https://getqu.in/JJN8793C00II/UeuGthYtNY/

Bondora G&G stopped: https://getqu.in/JJN8793C00II/d7nwc85SNB/

Gold and Precious Metals:

About Gold Investments: https://getqu.in/JJN8793C00II/NcGj7ai6qI/

Otherwise in the link tree, various posts on Getquin about precious metals: https://linktr.ee/investmentpapa

Vodka Collection: https://getqu.in/JJN8793C00II/ZwiOgsAnWI/

Fancy Challenges?

#boersengehandelteralltag

https://getqu.in/JJN8793C00II/ZXjvVkAOYS/

Beer Challenge? Search on getquin for "beer" - you will be amazed.

Donate and get lucky:

About plans and happiness: https://getqu.in/JJN8793C00II/0TbTWVb8AJ/

Happiness, Gratitude and Investing: https://getqu.in/JJN8793C00II/vdI8n2L35s/

Donations: https://getqu.in/JJN8793C00II/um8PA0XycI/ And more...

Creativity:

The Savings Plan (Ballad): https://getqu.in/JJN8793C00II/wYWRS7fxOV/

I enjoyed the podcast, even though of course in the short amount of time (not for nothing there is the #tldr TL;DR Club!) some topics could be addressed only briefly or not at all. But who knows, maybe there will be another opportunity... until then, your Dad.