Targeting growth of 10% both organically and through M&A Bergs is now a more downstream-focused company with less cyclicality in its earnings and exposure to structurally growing end-markets (building with wood is more environmentally friendly). Value-added wood products are now 60-70% of its EBITDA. Bergs’ remaining assets are modern and well-invested, so cash flow generation should be strong. We see room to grow, both organically and inorganically. Bergs targets growth of 10% p.a. and has identified organic growth investments of ~SEK 500m for ’21-’23. Furthermore, it has strengthened its position within windows/doors recently, acquiring three companies and investing for organic growth. After the recent acquisition of Pinus, it now expects sales from windows/doors to double vs. ’21. Margins for this segment are more stable over the cycle and the expansion of the segment could contribute to reduce the cyclicality of Bergs’ earnings
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