Slides
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CAPITAL MARKETS DAY 2025
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13:05 Strategic update Bo Annvik 13:50 Financial update Patrik Johnson 14:15 Q&A Bo Annvik, Patrik Johnson 14:30 Break 14:50 Acquisition strategy Gustav Ruda, Andrea Imbriani, Richard Denlin 15:30 Business Area perspective Joakim Skantze 16:00 Panel discussion Anders Hegaard, Declan Field, Fredrik Alexandersson, Jan-Erik Larsson, Mårten Svanberg 16:30 Q&A and summary Bo Annvik
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Bo Annvik President and CEO Board member
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Group Management Gustav Ruda Acquisitions & Business Development Patrik Johnson CFO Åsa Wirsenius People & Sustainability ---------------------------------------------------------------- - - ---- Göte Mattsson Industrial & Engineering Bo Annvik President & CEO Juha Kujala Infrastructure & Construction Peter Laveson Technology & Systems Solutions Joakim Skantze Life Science Per-Olow Jansson* Process, Energy & Water --------- - - 4 --------- *Will retire from 1 April 2026. Per Lidström appointed as new head of the business area
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Per Lidström From April 2026 Senior Vice President, Process, Energy & Water Education: M.Sc. in Chemical Engineering Previous experience: CEO of Cibes Lift Group and senior positions in Seco Tools and Sandvik (Alleima). Born: 1976
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Strong performance last five years… 6% 8% 10% 12% 14% 16% 0 5000 10000 15000 20000 25000 30000 35000 2020 2021 2022 2023 2024 EBITA margin Net Sales, SEK m Sales +12% p.a. EBITA +15% p.a. CAGR last 5 years: 6 +5% Organic growthNet sales 32.3 ~70 No of companies added 14.6% EBITA margin 5-year average p.a. last 5 years Billion SEK, R12Q3 2020-2024
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…but a weaker demand impacting short term 7 10 11 12 13 14 15 16 17 18 19 20 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2025 Q1 2025 Q2 2025 Q3 Net sales, MSEK EBITA, MSEK EBITA margin, % Net sales & EBITA
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8 -3 -2 -1 0 1 2 3 -4,500 -3,500 -2,500 -1,500 -500 500 1,500 2,500 3,500 4,500 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Free Operating Cash Flow Acquisitions Dividend Net debt/EBITDA, x Strong cash flows from our existing companies… …enables company acquisitions at well- balanced valuations… …and steadily growing dividends… …while maintaining a stable and balanced risk profile. Capital allocation, L10Y (MSEK) The balancing act – successful capital allocation
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Gradually increased acquisition pace 9 0 2 4 6 8 10 12 14 16 18 20 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025-YTD No. of acquired companies No. of acquired companies (3 yr avg) Number of acquired companies per year
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Group evolution last 10 years 10 60% 40% Share of net sales per category Technical trading companies Companies with proprietary products 57% 43% Share of net sales per geographical region Share of net sales, 10 largest companies 30% 19% 30% 27% 43% Sweden Other Nordic countries Outside Nordic 22% 26% 52% Sweden Other Nordic countries Outside Nordic
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Infrastructure & Construction Technology & Systems SolutionsIndustrial & Engineering Life Science Process, Energy & Water 11 5 international Business Areas Strengthened conditions for organic and acquisitive growth Each Business Area is sector focused, addressing a distinct set of customer segments and technology/product areas
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Industrial & Engineering 12 0 2 4 6 8 10 12 14 16 18 20 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 2019 2020 2021 2022 2023 2024 Q325, R12 Net sales, MSEK EBITA, MSEK EBITA margin, % Organic growth Net sales & EBITA 2% -8% 13% 11% 5% -2% 9% CAGR Product areas Industrial components, filters, fasteners hydraulics and tools Products and equipment for automation/ transmission Chemical technology and consumables for industrial applications GENERAL MANUFACTURING TRANSPORTATION INFRASTRUCTURE CONSTRUCTION 9 65 24% Business Segments Companies Share of net sales, 2024
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Infrastructure & Construction 13 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 2019 2020 2021 2022 2023 2024 Q325, R12 Net sales, MSEK EBITA, MSEK EBITA margin, % Organic growth Net sales & EBITA 8% -3% 8% 7% -1% -4% 9% CAGR Product areas Products for ground and infrastructure work Input materials for buildings Equipment, tools and consumables for construction companies INFRASTRUCTURE CONSTRUCTION UTILITY DISTRIBUTION 8 41 15% Business Segments Companies Share of net sales, 2024
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Life Science 14 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 2019 2020 2021 2022 2023 2024 Q325, R12 Net sales, MSEK EBITA, MSEK EBITA margin, % Organic growth Net sales & EBITA 9% 26% 14% 21% 8% 1% 32% CAGR Product areas Single Use products and assemblies Equipment and products for pharma production Medical technology distribution PHARMACEUTICALS HEALTH CARE FOOD & BEVERAGE 7 35 23% Business Segments Companies Share of net sales, 2024
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Process, Energy & Water 15 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 2019 2020 2021 2022 2023 2024 Q325, R12 Net sales, MSEK EBITA, MSEK EBITA margin, % Organic growth Net sales & EBITA -1% 4% 1% 12% 9% 3% 15% CAGR Product areas Valves, pumps, pipe & pipe systems Flow instrumentation and measurement Water & chemical systems PROCESS INDUSTRY ENERGY WATER/WASTEWATER 7 44 23% Business Segments Companies Share of net sales, 2024
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Technology & Systems Solutions 16 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 2019 2020 2021 2022 2023 2024 Q325, R12 Net sales, MSEK EBITA, MSEK EBITA margin, % Organic growth Net sales & EBITA 2% -7% 9% 10% 5% -3% 13% CAGR Product areas Measurement technology for industrial applications Instruments and sensors Force & weighing solutions GENERAL MANUFACTURING ENERGY INFRASTRUCTURE 4 33 15% Business Segments Companies Share of net sales, 2024
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0% 2% 4% 6% 8% 10% 12% 14% 16% 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Net Sales, MSEK EBITA-margin 5 yr avg, %17 Investments made into a refined and strengthened platform Decentralisation and entrepreneurship Staying true to our core values and principles SET TO DOUBLE THE SIZE OF INDUTRADE
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MANAGING DIRECTOR • Operationally independent • Entrepreneurial mindset • Customer focus • Cost conscious Supporting our companies for organic improvements 18 • Segments & Networks • Indutrade Portal • Conferences & events • Benchmarking & awards BOARD • Dedicated Business segment leader • Strategic engagement • Structured governance KNOWLEDGE-SHARING INDUTRADE ACADEMY • Leadership development • Functional trainings
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19 Strategic direction for acquisitions Opportunity-oriented approach Stepwise expanding geographical scope with focus on Western Europe Leverage new acquisition resources and segment structure Further strengthening of structured pro-active lead generation Continue to be prudent on pricing
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20 Leveraging the Business Segment structure Enable knowledge-sharing between companies with similar businesses and challenges More market specific knowledge in the company boards How do we expand from only 3 markets? Segment A • SE: 3 companies • DK: 2 companies • NE: 1 company Strengthened conditions for organic growth Increase internal pipeline generation
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21 Suppliers List of targets Brokers NetworkCustomers Alnab, 1994 5 companies 2 companies 3 companies 1 company 1 company 8 companies 1 company 2 companies Hexagon 3 companies 2 companies 1 company 1 company 1 company 2 companies
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22 Controlled organisational evolution and lean Group team to facilitate efficient decision-making 22 Industrial & Engineering Infrastructure & Construction Life Science Process, Energy & Water Technology & Systems Solutions 25 55 9,777 Parent company staff Business Area staff and Business Segment Leaders Total number of employees
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PEOPLE Engaged people that drive development and performance OPERATIONS CO2 and resource efficient operations PRODUCTS & CUSTOMERS Increased customer value and reduced product footprint • Engagement and leadership • Performance and competence • Health and safety • Diversity and inclusion • CO2 emissions • Renewable energy • Resource efficiency • Low carbon and circular solutions • Product quality and innovation • Responsible supply chains 23 Sustainability as a business opportunity Validated climate targets by SBTi
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Growth 24 ≥10% EBITA margin ≥14% Return On Capital Employed ≥20% Net debt/Equity <100% Dividend payout ratio 30%-50% of Net Profit Last 5 years 12% Last 5 years 14.6% Last 5 years 21% Last 5 years 49%-67% Last 5 years 38% Reconfirming financial objectives Targets measured over a business cycle “An Indutrade company has its own individual targets and should always have the ambition to improve year over year – a continuous improvement culture”
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Key takeaways 25 Investments made into a refined and strengthened platform Increased internal pipeline generation through leveraging the Business segments Constantly developing our ability to generate sustainable, profitable growth! Staying true to our core values and principles 2 3 4 5 1 Decentralisation, entrepreneurship and high strategic engagement for organic improvements SET TO DOUBLE THE SIZE OF INDUTRADE
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Patrik Johnson CFO
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Gross margin and SG&A development Short term trends in the right direction 28 19.5% 20.0% 20.5% 21.0% 21.5% 22.0% 22.5% 23.0% 23.5% 24.0% 24.5% 33.0% 33.5% 34.0% 34.5% 35.0% 35.5% 36.0% SG&A as percentage of sales Gross margin% SG&A % Gross margin % +3% Organic order intake growth Book-to-bill 102% >50% No of companies growing Continued strong and improved gross margin, with costs under control Q325Q325-YTD Q325
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0% 5% 10% 15% 20% 25% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Target Value creation – growing with stable high return 29 ROCE development ✓ Smart capital allocation ✓ Balance between acquisition and organic growth ✓ Prudent acquisition pricing ✓ Organic operational return leverage
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0 2 4 6 8 10 12 2018 2019 2020 2021 2022 2023 2024 Post calc EV / EBITA ** Pre calc EV / EBITA (current) * 30 * Average pre calc multiples at time of acquisition ** Purchase price excluding earn-outs less acquired cash in relation to actual EBITA excluding acquisition costs the first year (based on published external reports) Weak performance in first year in a couple of larger acquisitions create higher post acquisition multiple during 2022 Average pre calc acquisition multiples stable at 6x-7x Acquisition pricing development Acquisition multiples Strong performance in first year in a couple of larger acquisitions create lower post acquisition multiple during 2021
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A broadened performance perspective 31 Focus on working capital and investments Profit EBITA / Capital Operating working capital + Machinery & Equipment Value= The Indutrade measurement ROWC
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30% 35% 40% 45% 50% 55% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Generating more operational return 32 ROWC development ✓ Internal follow up ✓ Benchmark ✓ Training ✓ STI ✓ Acquisition criteria
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✓ Individual ambitious target setting ✓ Focus on Y-o-Y improvements ✓ Incentives & benchmarking Organic growth trend Continuous improvement mindset 33 15,0% 33% 33% 34% 34% 35% 35% 36% 0% 2% 4% 6% 8% 10% 12% 14% 16% Gross margin EBITA margin Gross margin EBITA margin Margin trends 0% 1% 2% 3% 4% 5% 6% Organic growth, %, avg. 5Y
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Strong cash flow generation 34 0% 20% 40% 60% 80% 100% 120% 140% 160% 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Cash flow from operating activities Free operating cash flow Cash conversion +17% p.a last 10 years Cash flow trend * Cash conversion = Free operating cash flow / net profit <2% 10Y avg. Free operating cash flow, CAGR CAPEX/Sales
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100% -9% -14% -56% -21% Funds before changes in wc & CAPEX NWC CAPEX Acquisitions Dividend 0% 20% 40% 60% 80% 100% 120% Capital deployment last 5 years High reinvestment rate 35 71% Reinvestment rate* Avg. last 5 years *Reinvestment rate = Acquisition spending / free operating cash flow ~9.1 Acquisition spending BSEK, last 5 years Increased net debt
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3636 Industrial & Engineering Infrastructure & Construction Life Science Process, Energy & Water Technology & Systems Solutions How do we allocate time, resources and capital in an optimal and common way between our companies?
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Our portfolio model 37 ▪ Established common Indutrade framework ‒ Categorising our companies in terms of financial and organisational capability ‒ Support in capital allocation decisions and for adaptation of coaching ▪ Priority is always to establish reliability in the basics and a good profitability before growth plans and investments should be considered 1 2 3 Stability Profitability Growth
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Overview portfolio model 38 Companies with stable strong financials, ready to qualify for growth Companies with stable solid financial performance but further improvements needed to qualify for growth investments Companies in need of performance improvement Growth companies Growth candidates High performing cash generators Stable performers Loss makersProblem companies
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Portfolio model supporting decisions on capital and resource allocation 39 • Growth objectives and activities • Investments and coaching to support growth capabilities and plans • Profitability objectives and activities • Investments and coaching to support profitability, productivity and capital efficiency improvements • Turnaround objectives and activities • High and close engagement to ensure quick profitability improvements ” Alignments within all Business Areas on the categorization and the appropriate plans and activities” Growth companies Growth candidates High performing cash generators Stable performers Loss makersProblem companies
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0.0 0.5 1.0 1.5 2.0 2.5 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 MSEK Net debt Net debt / EBITDA Strong financial position 40 Net debt development ✓ Strong underlying cash flows and a balanced acquisition and investment rate ✓ Strong and stepwise increased bank group ✓ Expanded cash pooling ✓ Investment grade rating by S&P + + +
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Key takeaways 41 Focus on value creation Continuous improvement Prudent and disciplined buyer Professional owner Maintain strong underlying cash flow to facilitate smart capital allocation in all levels throughout the Group
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Q&A
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13:05 Strategic update Bo Annvik 13:50 Financial update Patrik Johnson 14:15 Q&A Bo Annvik, Patrik Johnson 14:30 Break 14:50 Acquisition strategy Gustav Ruda, Andrea Imbriani, Richard Denlin 15:30 Business Area perspective Joakim Skantze 16:00 Panel discussion Anders Hegaard, Declan Field, Fredrik Alexandersson, Jan-Erik Larsson, Mårten Svanberg 16:30 Q&A and summary Bo Annvik
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Gustav Ruda Senior Vice President Acquisitions & Business Development Andrea Imbriani Acquisitions Italy Richard Denlin Business Segment Leader Process & Energy
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My journey to Indutrade 46 Pre Indutrade ‒ Industrial Engineering, KTH ‒ Applied Value ‒ Karnell
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47 What are we looking for? CharacteristicsCharacteristics Type Financials • Only B2B companies • Technical trading or manufacturing • A company and market that we can understand • Leading market position in its niche • Limited piece price and repetitive need • Diverse customer and supplier structure • Sales of 50-500 MSEK • Healthy gross margins • Stable earnings • Sustainable ROWC People Preferably family owned Down-to-earth People that care about their employees, the brand, and the future Gradually increased focus on Organic growth potential Working capital profile
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Acquisitions under the hood 48 What? How? ▪ Clear set of preferred characteristics ▪ Open minded ▪ Opportunistic ▪ Meet with many potential targets ▪ Focus on people ▪ Relationships ▪ Focus on what matters ▪ Transparent ▪ Disciplined ▪ Pragmatic, solution based, flexible ▪ Brave enough to be different Get the acquisition done!
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Why do entrepreneurs sell to Indutrade? 49 New Owner? ReputationHistory/legacy Core Values Experience Stability Long-term Relationships & trust – people sell to people!
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50 ~70 acquisitions in the past five years Pistesarjat Oy Finland 100 MSEK Tecno Plast Industrietechnik GmbH Benelux 230 MSEK Fire Proof B.V. Benelux 70 MSEK Typhoon Group Benelux 40 MSEK Efcon Water B.V. Benelux 20 MSEK CKJ Steel A/S Fluids & Mechanical Solutions 140 MSEK Lamisa Teknik AB Industrial Components 23 MSEK Buhl & Bønsøe A/S Industrial Components 40 MSEK Atlas Industrial Print AB Fluids & Mechanical Solutions 50 MSEK Advance Welding Ltd UK 50 MSEK Alflow Scandinavia A/S Flow Technology 140 MSEK SILROC CZ a.s. DACH 35 MSEK Italprotec Industries S.r .l. DACH 100 MSEK Dewaco Oy Finland 130 MSEK Klay Instruments B.V Measurement & Sensor Technology 60 MSEK Svenssons i TenhultAB Fluids & Mechanical Solutions 100 MSEK North West Metal Sections Ltd UK 245 MSEK Total 1 573 MSEK Acquisitions 2021 Q1 Acquisitions Business Area Annual Sales 6 Q2 Q3 Q4 Autoroll UK Ltd UK 67 MSEK NTi Audio AG MST 90 MSEK Stabalux GmbH FMS 40 MSEK PMH International AB IC 140 MSEK acti-Chem A/S Flow 50 MSEK Prodia AB IC 50 MSEK Oscar Medtec AB IC 70 MSEK Beck Sensortechnik GmbH MST 130 MSEK Primed Fysio och Rehab AB IC 30 MSEK OCI B.V. Benelux 110 MSEK Tebra Messen Industrie B.V. Benelux 52 MSEK CaTec B.V. Benelux 100 MSEK Ingenjörsfirman Geotech AB IC 100 MSEK Bramming Plast-Industri A/S FMS 500 MSEK Palas GmbH MST 270 MSEK Armaturen Aichhorn GmbH DACH 65 MSEK Total 1 864 MSEK Q1 Acquisitions 2022 Business Area Annual Sales Q2 Q3 Acquisitions 2022 Q4 7 Acquisitions 2023 Sax Lift A/S Business area: FMS Annual sales: 130 MSEK Hobe GmbH Business area: DACH Annual sales: 80 MSEK Siersema Komponenten Service B.V Business area: Benelux Annual sales: 390 MSEK Sax Lift A/S FMS 130 MSEK Hobe GmbH DACH 80 MSEK Siersema Komponenten Service B.V. Benelux 390 MSEK Safematic A/S FMS 55 MSEK Labema Oy Finland 70 MSEK I-tronik S.r .l. DACH 165 MSEK Noby A/S IC 60 MSEK Powerpoint Engineering UK 150 MSEK TSE Troller DACH 90 MSEK Total 1 190 MSEK Q1 Acquisitions 2023 Business Area Annual Sales Q2 Acquisitions 2023 8 Q3 Q4 Acquisitions 2024 pure! GmbH Business area: Industrial & Engineering Annual sales: 110 MSEK SDT Scandinavian Drive Technologies AB Business area: Industrial & Engineering Annual sales: 55 MSEK MeHow Medical Ireland Ltd. Business area: Life Science Annual sales: 160 MSEK pure! GmbH Industrial & Engineering 110 MSEK SDT Scandinavian Drive Technologies AB Industrial & Engineering 55 MSEK MeHow Medical Ireland Ltd. Life Science 160 MSEK Atline ApS Life Science 60 MSEK Hemomatik AB Technology & Systems Solutions 65 MSEK Matriks AS* Life Science 205 MSEK Geosense Ltd. Infrastructure & Construction 120 MSEK LYFTonlineAB Industrial & Engineering 45 MSEK CH Rustfri Life Science 60 MSEK Beratherm AG** Process, Energy & Water 55 MSEK West Technology Systems Ltd. Technology & Systems Solutions 50 MSEK Miclev Medical Products AB Life Science 130 MSEK Geoteam A/S Infrastructure & Construction 130 MSEK Tidyco Ltd. Industrial & Engineering 180 MSEK PG Flowteknik APS Process, Energy & Water 80 MSEK Hansa Engineering AB Process, Energy & Water 60 MSEK Total 1,565 MSEK Q1 Acquisitions 2024 Business Area Annual Sales Acquisitions 2024 5 Q2 *Announced in Q1 2024 **Asset deal Q3 Q4 Acquisitions 2025 Leading German manufacturer specialised in tool technology for mechanical surface treatment 150 MSEKAnnual Sales: 65No employees: Industrial & EngineeringBusiness area: 17 16 9 16 Acquisitions 2025 7 Annual salesBusiness areaCountryCompany 150 MSEKIndustrial & EngineeringGermany 185 MSEKLife ScienceIreland 55 MSEKIndustrial & EngineeringSweden 35 MSEKTechnology & Systems SolutionsNetherlands 85 MSEKLife ScienceItaly 35 MSEKLife SciencePoland 185 MSEKIndustrial & EngineeringDenmark 105 MSEKTechnology & Systems SolutionsUK 50 MSEKLife ScienceSweden 165 MSEKIndustrial & EngineeringNetherlands Total 1,050 MSEK 10
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Characteristics of the acquisitions in 2021-2025 51 IE INC LS PEW TSS Acquisitions per Business Area Acquisitions per Country SE DK NL GB DE IE FI IT CH NO AT LI CZ PL Type of Company Technical Trading Manufacturing Potential and activity high in all areas
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Stepwise increasing pace and contribution 52 Financial effects acquisitions 0% 5% 10% 15% 20% 25% 0 50 100 150 200 250 300 350 EBITA margin EBITA (MSEK) Acquired EBITA Acquired EBITA margin 0 2 4 6 8 10 12 14 16 18 No. of acquired companies No. of acquired companies (3 yr avg) No. of acquired companies per year
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dsf High hit rate when we are interested pure! Geosense Tidyco Geoteam KS Perslucht Slang- specialistenMeHow Hemomatik C.H. Rustfri West Technology SDT ATLINE Matriks Lyftonline Sverige Beratherm Miclev Hansa Engineering PG Flowteknik 53 300+ companies 21 DD processes initiated 200+ companiesRejected before NBO 18 Strong inflow from the external and internal network
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▪ Straight forward and standardized valuation model ▪ Seller’s financial plan scrutinized ▪ Focus on a few key metrics ‒ EV/EBITA in the range 5-8x ‒ ROCE target of 20% within 3-5 years ‒ EPS accretive ▪ Not the same multiples for all acquisitions ▪ Differentiation based on ‒ Size ‒ Type of industry ‒ Organic growth potential ‒ Working capital levels ‒ CAPEX requirements ‒ Situation ▪ Relevant benchmarks from 200+ acquisitions ▪ Earn-Out bridges value expectation gap and protects downside ▪ Clearly defined walk away price but also pragmatic to reach the finish line ▪ Our business model, support and culture/people key differentiating factors Our approach to valuations Standardized valuation model Differentiated pricingDisciplined buyer 54
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Acquired EBITA, 3Y avg. Acquisition capability step-up 55 Central Acquisitions Team Business Areas Business Segments New responsibility from 2024 Geographical acquisition specialists Central Acquisitions Team Business Areas
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Acquisition organisation 56 Group • Drive and coordinate pipeline management – external and internal leads • Lead acquisition projects • Develop acquisition process and toolbox • Assure quality throughout the acquisition process Business Areas • Generate internal leads from Business Segments and portfolio companies • Business owner • Lead acquisition projects • Support acquisition process development Business Segments • Generate internal leads • Business owner • Support acquisition projects Countries • Drive the effort to generate external leads • Support internal lead generation • Lead acquisition projects • Support in projects where local knowledge and touch is helpful
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57 EU Value of sold industrial production, by country, 2024 (% of total value of sold production)* Italy is the second industrial economy in Europe with 14% of the overall production Germany; 26% Italy; 14% France; 12%Spain; 9%Poland; 6% Netherlands; 4% Rest of EU; 28% Industrial production in Europe and Italy *Source: Eurostat
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58 Focus on Northern Italy ▪ Italy is divided into 20 regions, with the highest GDP in the Northern regions ▪ The regions with highest number of mid-size industrial companies are Lombardy (Milan), Emilia Romagna (Bologna) and Veneto (Venice) GDP per capita in EU regions, 2019* (in PPS, EU=100) *Source: Eurostat
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Opportunities for Indutrade in Italy 59 0 20,000 40,000 60,000 80,000 100,000 120,000 Micro (<9 resources) Small (10-49 resources) Medium (50-249 resources) Large (> 250 resources) North Center South ▪ There are a total of about 180,000 manufacturing companies in Italy ▪ Out of 67,000 Small Medium Enterprises (SME’s), 44,000 are located in Northern Italy ▪ 77% of the manufacturing SME’s are family owned Number of Industrial companies in Italy, 2022* *Source: Istat.it
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Approach to acquisitions in Italy 60 Business Areas and Segments Scouting Brokers • Regular contact with Business Areas • Work with Business Segment Leaders to identify potential targets in Italy • Involvement of the Business Areas and Segments in the analysis of potential acquisitions • Scouting of potential targets based on Indutrade’s acquisition selection criteria • Ongoing contact with potential targets, also supported by industrial associations and local network • Built a broker network of 50+ firms, including both local and European-wide networks • Continuous update with brokers • Ongoing inflow of opportunities • Since 2024 signed NDAs to analyse 50+ companies
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Feedback from Entrepreneurs 61 • The long-term investor model in Italy was not known and is a new opportunity for entrepreneurs facing business succession • Entrepreneurs appreciate the presence of an Italian organisation to understand local business culture and needs • Positive feedback of Indutrade’s values (Entrepreneurship, Decentralisation, Long Term, People) for the future of their family business • Positive perception of the organisation, including the possibility to work with similar companies in the various segments Positive feedback of Indutrade in Italy
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My journey in Indutrade 62 Began at Gustaf Fagerberg AB in Göteborg 2003 Managing Director Gustaf Fagerberg AB 2021 Appointed Business Segment Leader 2024 • Various positions including sales, product management, purchasing and logistics, and business area manager for measurement technology • Experience from food and beverage to nuclear power Key focus: • Ensure the acquired company can achieve sustainable profitable growth and thrive in the Indutrade family • Acquisitions
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• Strategic acquisition plan and assessment • Develop and maintain a pipeline of internal leads • Proactively build relationship with potential targets • Support the acquisition projects and take ownership of the strategical and cultural evaluation • Responsible for the company post acquisition My acquisition role and objective 63 Appointed Business Segment Leader 2024 Acquire at least one new company into my segment every year
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Greatest assets in finding acquisition targets 64 Business Segment Leader Our Managing directors People in our companies Our suppliers Our customers Other contacts in the industry Indutrade team
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Building a pipeline of internal leads 65 Opportunistic leads Strategic leads from white spot analysis and cluster groups Network of employees and partners ▪ Explore acquisition prospects near our existing companies ▪ White spot analysis ‒ Markets, Products, sub-segments ▪ Employing AI speed up market analysis and lead generation ▪ Our employees are our superior quality control mechanism to secure high quality internal leads
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Add-on example ▪ The first interaction between Fagerberg AS and Pemac AS occurred at an exhibition ▪ Complementary product portfolios and covering different areas of the Norwegian market ▪ Contact between owner of Pemac and Fagerberg Managing Director ▪ Business plan was presented to Business Segment Leader ▪ Acquisition finalised in January 2025, 18 months after initial meeting Growth example Add-on acquisition Pemac AS Analysing aquaculture ▪ Investigation of what products are used within aquaculture ▪ Identifying possibilities ▪ Creating longlist ▪ Reviewing list together with the team ▪ Find ways to make further contact and understand the company better
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Summary ▪ We stay the course! ▪ Continue to acquire Indutrade type of companies ▪ Opportunistic and open minded ▪ Leverage the team ▪ Strengthen pro-active lead generation ▪ Stepwise increase no of acquisitions per year 67
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Joakim Skantze Senior Vice President Life Science
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My journey within Indutrade Pre Indutrade ‒ Electrical Engineer, KTH ‒ Accenture ‒ Schneidler Grafiska AB ‒ Traction 70 1987-2016 2016-2024 2024- Industrial Components ‒ Business Area Manager ▪ Net sales: 2.5 BSEK → 6.2 BSEK ▪ EBITA margin: 10.6% → 15.9% ▪ 19 acquisitions, 45 companies Life Science ‒ Business Area Manager ▪ Net Sales: 7.4 BSEK 2024 ▪ EBITA margin: 16.6% 2024 ▪ 35 companies Indutrade
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Our Life Science companies 71 Net Sales, % Share of net sales per geographical region Split by company size, Q3-25 YTD 1 >500 MSEK 10 200-500 MSEK 24 <200 MSEK 20% Sweden 26% Rest of Nordic 46% Rest of Europe 2024 14% Organic growth 5Y avg. 32% EBITA CAGR -5Y 17.8% EBITA margin 5Y avg.
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Strong position within Pharma production 72 Trading & assembly Manufacturing Manufacturing & contracting Outsourcing Supply chain resilience Regulatory challenges Examples of trends • Supplier to Pharma manufacturers and CMOs • Flow related products, assemblies and SU-systems • High validation and quality driven processes • Huge market and good underlaying growth trend
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Examples Pharma applications 73 Single Use Flow components Purification skid
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Niched Medical companies 74 Diabetes Medtech Diagnostics & Labtech Health Care / Aid care Ageing population Shortage of resources Diagnostics Examples of trends • Diversified market and multiple segments • Our position: stronger in the Nordics but many geographical white-spots • Interesting areas: Diagnostics and Labtech, driven by therapies like cancer treatment, diabetes, health etc.
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Examples Medical applications 75 Diabetes Medical technology Laboratory equipment
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Strong and lean international team 76 ”We have the freedom and autonomy to act and develop the BA ourselves, with good support of the Indutrade framework and network.” ▪ Driven by a strong Purpose ▪ Enable Business Segments to be engines! ▪ Professional owner and Partner
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77 Develop Acquire Leading a Business Area within Indutrade
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Developing towards the ideal company Market opportunity Focus and offer Internal structure Leadership Management Team Growth companies Growth candidates High performing cash generators Stable performers Loss makers Problem companies
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Developing our people 79 Indutrade Academy IBP / ILP / IBCP Succession planning Internal vs external Development plans Judgement / Drive / Influence Culture
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Proactive acquisition agenda 80 Opportunity-oriented approach AcquireLeveraging the business segment structure Bottom up Prioritised areas Top down
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Q1 Q2Q3 Q4 81 FY evaluation and next year activities FY evaluation Strategy and strategy process expectations Company analysis and priorities StrategyBA / BS strategy People development Budget Business Area Business Area Business Area Business Area Boards Boards Boards Cluster meetings in various forms MD conference ”Driving value creation in a structured way”
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Key takeaways 82 Full autonomy but benefitting from the Indutrade infrastructure Strong position in pharma and medical with significant growth potential Full responsibility for developing our companies and value- accretive acquisitions Lean international team driven by a strong purpose
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Fredrik Alexandersson Managing Director Miclev AB Jan-Erik Larsson Managing Director Alnab AB Declan Field Business Segment Leader prev. Managing Director ESI Technologies Group Anders Hegaard Business Segment Leader Managing Director Klokkerholm Karosseridele A/S
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Q&A
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