Operational and Financial Risks in the Swedish Industry for Wooden Single-

Family Houses. A Trend Analysis.

Fredrik LindbladTobias Schauerte

Presentation Layout

• Background• Aim & Purpose• Selection & Methodology• Results• Conclusions• Further studies

Introduction - Background• Shifting concentration of

population to urban areas has increased the shortage of available housing.

• Few companies that provide solutions for multi-family houses in wood has become a serious concern in Sweden.

Introduction - Background• Companies that could enter

this segment are at present time producing single-family houses.

• The company development is connected to investments in long-term product development.

Aim & Purpose• The aim is to study the economical

potential for Swedish companies within the market for wooden single-family houses.

– finding drivers to enter the market for wooden multi-family houses.

• Investigate the company’s development of risk position over time.

Selection/methodology

• The study was based on 46 Swedish companies within the industry for single-family houses.

• Data was collected from a statistical online database, in order to assess the risk position.

• The balance sheet information was available for a four year period, 2010 to 2013.

Risk positioning

• The risk position can be determined by measuring the operational risk and financial risk.

Results 2010 – 2011

Results 2011 – 2012

Results 2012 – 2013

Conclusion

• Yearly development trends within the risk position model indicates a shift towards lower risks taking in the industry.

Conclusion

• Indications of potentially positive development trends within the industry.

• There is a stronger push towards limiting both the financial risk and the operational risks.

• This could be an indication for the industry as being overly conservative and content with the current situation.

Further studies…

• Further research could focus on data comparison combined with the companies’ strategic interests and development plans.

• Study the underlying reasons driving the conservative nature of the industry.

Thank you for listening