We now invite you to join more than 200 previous investors and take part in our already 63% funded equity campaign. An investment in IsoTimber Holding AB (publ) is an investment in a more sustainable and efficient construction industry! The concept is scalable as the innovative wall blocks are easy to produce, build and mount.
- Subscription period: Until 30 September 2016
Approximately 10 MSEK is already invested in the issue before the start of the campaign on FundedByMe.
The problem this product solves
Houses today are mostly built using plastic to prevent moisture from migrating from inside the house to the wall's insulation. Since the insulation usually can not handle moisture, the house is in danger of mold growth and unhealthy indoor environment as a result. With IsoTimbers building technology it is the air ducts in the wood that insulates. In a construction of wood and air, moisture can travel from the inside to the outside, through diffusion. This allows IsoTimber to produce insulated and load-bearing walls without the unhealthy plastic sheeting, giving the owner the basis of a climate and healthy household.
How the product solves it
Insulated wallblocks are created by robots cutting out air ducts in the wood. These wallblocks are covered with plywood on the inside and outside. Competing solutions require more operations and components in the wall, including unhealthy plastic wrap. The IsoTimber production way contains environmentally friendly components, few production steps and a high degree of automation. It is therefore possible, with the right investments, to quickly increase the production volume and lower the production cost per manufactured wall.
IsoTimber wall systems are strong and insulating. The air and wood do wonders. It also gives high thermal insulation values. To get the same insulation values from solid wood, the wall thickness needs to be doubled.
- Eliminates both drafts and cold bridges, providing cheaper heating.
- Good soundproofing. More quiet indoors, when you build in town or along the roads.
- Good insulation during summer – nice and cool inside.
Product use cases
IsoTimber's product is used as a backbone to houses and garages. It is an environmentally friendly alternative to the conventional house structure.
Mikael Östling CEO
Mikael (b. 1974) is the founder and innovator behind IsoTimber and has a long experience in the wood industry with several years as a carpenter. He has been an entrepreneur since 20 years of age. The first prototype of IsoTimber was made already in 1996. Email: [email protected]
Magnus Persson Future CEO
Magnus Persson (b. 1973), takes over as CEO after the issue is closed. After five years as CEO of the chipboard-manufacturer Byggelit, where he remains one of the four partners, Magnus puts a major focus on the production and marketing. Magnus holds a Bsc. in Business & Economics from Mittuniversitetet.
Daniel Eurenius Chairman of the board
Daniel (f.1981) is a, Board Academy, certified member of the Board. Daniel sits in the investment committee in Tillväxtkassan, where he is a partner.
Janina Östling Board member
Janina (b. 1972) is one of the founders of C-RAD AB which develops, manufactures and sells medical equipment. Janina has experience from start-up of technology-based companies with large capital requirements, fund raising and IPO:s. She has also worked as a production manager and quality manager, and has served on the ... See more
Janina (b. 1972) is one of the founders of C-RAD AB which develops, manufactures and sells medical equipment. Janina has experience from start-up of technology-based companies with large capital requirements, fund raising and IPO:s. She has also worked as a production manager and quality manager, and has served on the management team of IsoTimber. Currently she works as Environment and Quality Manager at IsoTimber. See less
Sven-Olof Jonsson CFO
Sven-Olof (b. 1947) possesses long experience within financial planning. He comes from SCA, where he served from 1985-2008 as Business Controller of SCA Forest Productions, CFO of SCA Wifsta-Östrand AB and CFO of SCA Graphic Sundsvall AB. 1972-1980 Sven-Olof served as controller and CFO of HIAB-FOCO AB.
Currently, the main market for IsoTimber is Sweden and Norway. The demand for IsoTimber is increasing, and one of the company's long-term goals is to deliver wall systems worldwide, preferably to other construction companies.
In Sweden, there are about 100 companies in the timber industry that employ more than five employees. These companies are the main competitors. Other large and small construction companies can also be counted as competitors, or be considered as potential customers.
Largest competitors in terms of turnover are:
- Älvsbyhus 1 000 MSEK
- Myresjöhus 817 MSEK
- Moelven 787 MSEK
- Götenehus 523 MSEK
Fiskarheden is below the above-mentioned companies in terms of turnover, but in terms of their 400 delivered houses, they are above. Fiskarheden is the competitor who is closest to IsoTimber when it comes to business model.
Unique differentiator from competitors
With the technology, IsoTimber can deliver turnkey houses that are:
- Environmentally friendly, contributing to the fight against global warming.
- Simple to produce, build and mount.
- Built on just wood and air; natural materials that balance moisture content and contributes to healthier indoor environments.
- Possessing a density level that meets the requirements for low-energy and passive houses.
- Inducing sound reduction, helping tenants avoid noise.
- Simple to retrofit with additional detail.
Company revenue streams
IsoTimber currently makes 100% of it's revenue from selling ready-made building packages and turnkey houses.
Low production costs and fast assembly of building packages means that the final price for the customer is attractive, while it is an environmentally friendly, durable and flexible option.
- Pending patent application on the technology behind IsoTimber.
- The use of CNC machines which produce customized wall blocks. This more machine-intensive production method enables greater precision, providing higher capacity.
- Great attention in the media – TV4 , SVT and NRK made TV spots in 2014 about IsoTimber. The most significant one was in the popular TV show "Äntligen Hemma". The broadcast was watched by 750 000 viewers and has given extremely large effects in terms of inquiries and quotations to the company.
Next key objectives
- Streamlined production and higher margin – Increase the capacity of production, achieve higher levels of automation and thus lower production costs.
- Reinforce the organization – To deal with the increase in demand and the planned expansion, more resources are required in finance, sales, project and production management.
- Market Focus – Many are interested, but lead times in the industry are relatively long. It is a big decision to build a house and it takes time to get the building permit. It is therefore important to increase marketing efforts.
- Revenue – 2016: 20 MSEK, 2023-2026: 500 MSEK
Over the years, IsoTimber has been mainly financed by private capital and loans. The capital has been used for product development and company expansion. In connection with the ongoing rights issue, Almi Invest AB and Ekonord AB, which each had a convertible loan of 5 million, chose to convert their convertible bonds into shares in IsoTimber.
IsoTimber is already in discussions with a number of house manufacturers. One of the long-term goals is that 10 percent of all new houses in the Swedish market are built with IsoTimbers wall system. A cooperation agreement with 5-10 of the medium-sized house manufacturers would achieve that goal.
Use of funds
The financing capital will be used to increase production capacity to meet the increase in sales and deliveries. The building blocks need to be produced faster and at a higher level of automation. This means investment in machinery. The money will be invested in stages but IsoTimber can start the expansion plans already after the first five million. A goal that is already fulfilled.
- 2014: IsoTimber received Miljöpriset ("the Environment Award") from the governmental party Miljöpartiet (the Swedish Green Party)
- 2015: A house built with material from IsoTimber was nominated and proceeded to the finals, in the Wood Award, an architectural competition organized by the industry organization Svenskt Trä.
- 2015: IsoTimber was promoted in the popular Swedish home construction TV show "Äntligen Hemma". The TV show host Martin Timell liked the product so much that he decided to invest in the company himself in 2016.
Watch the episode from "Äntligen hemma" here
Watch Mikael Östlings presentation from NGM Live here