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SP Group Annual report 2024 Innovative solutions in plastics Lars Bering, CEO Tilde Kejlhof, CFO 31 March 2025
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SP Group Forward-looking statements This presentation contains forward-looking statements reflecting SP Group’s current perception of future trends and financial performance. Statements relating to 2025 and the following years are inherently subject to uncertainty, and SP Group’s actual results may thus differ from expectations and targets. Factors that may cause actual results to differ from expectations include, but are not limited to, changes in raw materials and energy prices, changes in foreign exchange rates, epidemics and pandemics, changes in macroeconomic and political assumptions, changes in the demand and production patterns of key customer groups and other external factors. This presentation does not constitute an invitation to buy or sell shares in SP Group A/S. Presentation of the Annual Report 2024 – 31 March 2025 2
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SP Group Highlights (1/2) Q4 2024 • Revenue growth of 11.3% • Strong growth in own products of 32.5% • EBITDA growth of 20.7% • EBT growth of 45.9% 2024 • Revenue growth of 12.1% • Strong growth in own products of 43.4% • EBITDA growth of 20.1% • EBT growth of 11.8% Outlook for 2025 • Revenue growth in the range of 3-10% • EBITDA margin of 19-21% • EBT margin of 11-13% Presentation of the Annual Report 2024 – 31 March 2025 3 Revenue performance in DKKm 653 727 2,606 2,922 Q4 2023 Q4 2024 2023 2024 +11% +12%
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SP Group Highlights (2/2) Solid growth in Q4 with an increase in sales of own products • TPI farm ventilation products are increasingly sold globally • Ergomat has completed a number of ergonomics projects in Europe and the US • Increasing demand for MedicoPack’s vials replacing glass vials Opening of Atlanta facility • Fixed agreements with several customers • For example, a major outsourcing project from a medical device customer, with 24 injection-moulding machines scheduled to be moved to the facility in 2025 • Cleanrooms expected to be completed in Q2 2025 ESG • CSRD Sustainability report approved by auditors • Scope 1 and Scope 2 CO2 emissions reduced by 23% and 13%, respectively • The proportion of regenerates in products increased from 14% to 19% of total amount of plastics used Presentation of the Annual Report 2024 – 31 March 2025 4
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SP Group USA Presentation of the Annual Report 2024 – 31 March 2025 5 • New Atlanta factory being commissioned • The US market is strategically important to SP Group, representing 20% of revenue (2024) • Geopolitical uncertainty and risk of trade wars • An increase in customs tariffs would have an adverse impact on SP Group in the short term. In the longer term, the increase would be passed on to customers.
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SP Group Accoat Presentation of the Annual Report 2024 – 31 March 2025 6 • Production activities at Kvistgård scheduled for close-down in 2025 • We expect minor non-recurring costs in connection with the close-down of production • We help our employees find other employment and assist customers in choosing alternative product solutions • We collaborate with local authorities in the closing down of activities
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SP Group At a glance Presentation of the Annual Report 2024 – 31 March 2025 7 SP Group’s sales for 2024 broken down by product group:Global manufacturer of plastics solutions footprint factories Global 31 average number of employees different plastics technologies 2,360 9 customer-specific solutions own products 70% 30% Healthcare 41% Cleantech 29% Other 18% Foodtech 12%
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SP Group Locations Sales and production • Denmark (13) • Poland (6) • China (2) • USA (3) • Latvia (1) • Slovakia (2) • Sweden (1) • Finland (2) • Thailand (1) Sales and distribution • Netherlands (1) • Sweden (3) • Canada (1) • Norway (1) Presentation of the Annual Report 2024 – 31 March 2025 8 20% North and South America Asia 9% 46% 25% Europe (excluding Denmark) Geographical location of SP Group companies and breakdown of global sales in 2024 Denmark
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SP Group Technologies Presentation of the Annual Report 2024 – 31 March 2025 9 • The choice of production technology depends, among other things, on component size, quantity, criteria and specifications • The right technology may change over the course of a product’s life • SP Group masters a wide array of advanced technologies and is able to advise customers and offer them optimal solutions Component size Quantity Composite Reaction injection moulding (PUR and Telene) 3D printing and chip-cutting Pultrusion Low investment Labour-intensive High investment Automation Vacuum forming and rotational moulding Injection moulding and blow moulding Extrusion = Possibility of using regenerated (recycled) plastics
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SP Group SP Group in brief Presentation of the Annual Report 2024 – 31 March 2025 10 • We manufacture moulded plastics and composite components and apply plastic coatings to plastic and metal surfaces • Leading supplier of customer- specific solutions to a number of industries • Strong international niche positions – including with own brands • Growing sales and production from own factories in Denmark, China, the USA, Latvia, Slovakia, Sweden, Finland and Poland
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SP Group Financial ratios Presentation of the Annual Report 2024 – 31 March 2025 11 DKKm Q4 2024 Q4 2023 Growth FY 2024 FY 2023 Growth Revenue 727 653 11.3% 2,922 2,606 12.1% EBITDA 141 117 20.7% 589 441 33.5% EBIT 90 69 29.3% 386 241 59.8% Earnings before tax (EBT) 91 62 45.9% 345 201 71.5% Earnings per share (EPS) (DKK) 21.6 13.0 65.6% Equity 1,697 1,464 15.9% Cash flows from operating activities 108 72 510 360 Cash flows from investing activities including acquisitions -72 -67 -197 -187 Cash flows from financing activities 33 -27 -212 -216 Change in cash and cash equivalents 69.3 -23 100 -43 NIBD 821 1,031 NIBD/EBITDA 1.4 2.3 Solvency ratio, % 53.7 48.5
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SP Group Group financial highlights Presentation of the Annual Report 2024 – 31 March 2025 12 DKKm 2024 2023 2022 2021 2020 Revenue 2,922 2,606 2,656 2,481 2,178 EBITDA 589 441 478 423 356 EBIT 386 241 296 269 215 Earnings before tax (EBT) 345 201 269 258 194 Earnings per share (EPS) (DKK) 21.6 13.0 17.5 16.6 12.9 Equity 1,697 1,464 1,266 1,084 1,007 Cash flows from operating activities 510 360 264 238 320 Cash flows from investing activities including acquisitions -197 -188 -321 -222 -203 Cash flows from financing activities -212 -216 68 -56 -43 Change in cash and cash equivalents 100 -43 11 -41 74 NIBD 821 1,031 1,035 822 686 NIBD/EBITDA 1.4 2.3 2.2 1.9 1.9 Solvency ratio, % 53.7 48.5 42.7 42.8 44.5
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SP Group Revenue performance Presentation of the Annual Report 2024 – 31 March 2025 13 DKKm • 12.1% revenue growth (relative to 2023) • Mainly due to strong sales of own products • Historically strong growth driven by acquisitive and organic growth 1,165 1,320 1,519 1,884 1,965 2,013 2,178 2,481 2,656 2,606 2,922 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
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SP Group EBITDA and EBITDA margin performance Presentation of the Annual Report 2024 – 31 March 2025 14 • 33.5% EBITDA growth (relative to 2023) • Mainly driven by increased sales of own products and more efficient use of production capacity 114 163 203 275 286 308 356 423 478 441 589 0 5 10 15 20 0 100 200 300 400 500 600 700 800 DKKm % 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 EBITDA-margin % EBITDA
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SP Group EBT and EBT margin performance Presentation of the Annual Report 2024 – 31 March 2025 15 • 71.5% EBT growth (relative to 2023) • Higher EBT mainly driven by increased sales of own products and more efficient use of production capacity 52 81 123 176 200 175 194 258 269 201 345 0 1 2 3 4 5 6 7 8 9 10 11 12 0 100 200 300 400 500 DKKm % 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 EBT-margin % EBT
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SP GroupSP Group 2,670 3,066 3,300 4,200 4,000 2020 2021 2022 2023 2024 Share price performance and shareholder structure • Share capital of DKK 24.98 million • All shares carry the same rights. • Expected dividend of DKK 4.00 per share for 2024 (2023: DKK 3.00) • Share return of 45 % in 2024 Presentation of the Annual Report 2024 – 31 March 2025 16 Breakdown of shareholders in 2024 % Number of shareholders Share price performance, SP Group, 1 January 2014 – 31 December 2024 Index 1.1.2024 = 46.4 0 100 200 300 400 500 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Jan-24 SP Group STOXX 600 (rebased) OMXC20 (rebased) 17.1% 12.0% 9.3% 5.3%5.1%3.7% 44.3% 3.3% Schur Finance a/s, incl. related parties Frank Gad, incl. related parties Odin Fund Management Lannebo Fonder AB ATP SP Group (treasury shares) Registered holders of less than 5% Non-registered
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SP Group Development in own products drives higher growth Presentation of the Annual Report 2024 – 31 March 2025 17 Revenue in DKKm 507 644 704 620 888 2020 2021 2022 2023 2024 Own products include medical packaging, guide wires, farm ventilation, maritime products and ergonomic solutions
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SP Group Product groups Presentation of the Annual Report 2024 – 31 March 2025 18 Healthcare 41% – Medical devices – Medical packaging – Health and safety Cleantech 29% – Renewable energy: – Energy reduction – Insulation products Foodtech 12% – Farm ventilation – Measuring equipment Other 18% – Furniture – Specialist vehicles – Maritime products 898 868 1,184 2022 2023 2024 -3% +37% 746 805 860 2022 2023 2024 +8% +7% 367 319 351 2022 2023 2024 -13% +10% 646 614 527 2022 2023 2024 -5% -14%
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SP Group Outlook for 2025 Presentation of the Annual Report 2024 – 31 March 2025 19 New products, new demands, new customers and growth reported by a number of existing customers provide new growth opportunities 3-10% 19-21% 11-13% Revenue growth EBITDA margin EBT margin
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SP Group SP Group strategy Presentation of the Annual Report 2024 – 31 March 2025 20 Niche plastic products sold globally Own products raise the average margin Revenue to grow at a faster pace than the SP Group as a whole Portfolio to be expanded Continue to explore opportunities for more acquisitions Good, well-managed companies at a fair price Own products Expand technological capabilities Sustainability as a competitive edge Recycling to be incorporated from the start Increase the use of recycled plastics Increase the share of renewable energy Strong mandate Close to customers and being the preferred supplier Synergies across the group through SP network Best Practice and cross-selling Focus on growth industries Healthcare, Cleantech and Foodtech From start-ups to global companies From development to series production Several technologies provide best choice for customers Many customers need several types of components Choice of technology may change over a product’s life Own products More acquisitions Focus on sustainability Strong subsidiaries Clear positioning One-stop shop
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SP Group Ambitions towards 2030 Presentation of the Annual Report 2024 – 31 March 2025 21 • Continued focuses on advanced plastics solutions, typically with long durability, within Healthcare, Cleantech and Foodtech – and other areas where we can make a difference • We believe that mastering several advanced technologies offers us a competitive edge • Acquisitions as an important strategic tool • We are expanding our share of own products at a slightly faster rate than our revenue growth • The expected growth in revenue is based on organic growth and minor acquisitions • The ambition is a revenue in the region of DKK 4.5 billion in 2030 and EBT in the region of DKK 600 million Expected annual revenue growth towards 2030 6-9% Expected EBITDA margin in 2030 20-22% Expected EBT margin in 2030 12-14%
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SP GroupSP Group Summary Presentation of the Annual Report 2024 – 31 March 2025 22 • Satisfactory 2024 performance with record-breaking revenue and strong underlying EBITDA and EBT margins • Own products continue to drive the margin improvement, which underlines their importance to the Group • Strong strategic focus with concrete focus areas • Continued wish to strengthen SP Group through acquisitions • Continued growth in 2025
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SP GroupSP Group Q&A session 23
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SP Group Further information: Lars Bering CEO SP Group A/S Snavevej 6-10 5471 Søndersø Denmark Tel.: +45 7023 2379 Mob.: +45 4033 8850 E-mail: lb@sp-group.dk