Slides
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STRICTLY PRIVATE & CONFIDENTIAL Q1 PresentationJanuary-March 2025
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Today’s presenter 2 Jan-Olof SvenssonCEO and founder, acting CFO PREVIOUS EXPERIENCEFounder of IMAP Sweden and Pamica, before that auditor and CFO
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Agenda 3 01. Key highlights Q1Jan-Olof Svensson02.FinancialsJan-Olof Svensson03.SummaryJan-Olof Svensson05. Q&A
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•Uncertain economic and geopolitical situation–Mixed impact on our companies•Net sales increased 23% to MSEK 1,210.2–Organic growth –2%•Adjusted EBITA increased 34% to MSEK 52.6–Organic EBITA growth –43% –Adjusted EBITA margin 4% (4)•Operating cash flow from operating activities MSEK –0.4 (106.5)–Changes in working capital had a positive contribution in the first quarter totaling MSEK –46.2 (65.8) •Leverage ratio amounted to 3.5x at the end of the quarter –3.7x in the comparative quarter and 3.3x in the preceding quarter 4 Financial development Q1 2025KEY PERFORMANCE INDICATORS 024681012 0 30 60 90 120 Q1- 24Q2- 24Q3- 24Q4- 24Q1- 25 %MSEKADJUSTED EBITA PER QUARTER Adjust ed EBI TAMargin MSEK Q1’25Q1’24ΔNet sales1,210.2985.123%Organic net sales growth, %–2%1%Adjusted EBITA52.639.334%Adjusted EBITA margin, %4%4%Cash flow from operating activities–0.4106.5–100% * Excluding discontinuing operations
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•Pamica Group’s bonds were admitted to trading–On the Transfer Market segment of the Nasdaq First North Bond Market•Pamica Group divested all subsidiaries owned by Safe Solutions Consulting iSverige Holding AB•EDAB received a notice of arbitration from the SCC Arbitration institute –Claim of MSEK 50 for alleged breach of the SPA–Both EDAB and Pamica assess the claim as unfounded and have contested it•CFO Anders Maiqvist resigned –Jan-Olof Svensson interim CFO–Recruitment process for a new CFO ongoing 5 Key highlights during Q1
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•Structural plan for higher margins and lower leverage–Streamlining portfolio of companies–Acquiring companies that strengthen our existing portfolio of companies, mainly through add-on acquisitions•Pamica 5 AB established–Vehicle to increase the Group’s EBITA margin and balance the portfolio through acquisitions–Fund structure outside Pamica Group–Commitment to invest up to MSEK 340–87% of the capital comes from Pamica Group’s current owners and 13% from new investors–Pamica Group sells management services to Pamica 5–Pamica Group has the option to acquire the companies in Pamica 5 based on a non-cash issue –Subject to a decision/approval of the shareholders of Pamica Group and Pamica 5 and Pamica Group’s lenders 6 Key highlights after Q1
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•Pamica 5’s first acquisition of just over 75% of the shares in HTSM Eskilstuna announced today–Main supervisor in Sweden in close collaboration with the Swedish Transport Administration–Traffic coordinator and construction traffic manager in connection with work being performed on and around railway tracks–The business reports healthy growth and generated sales of just over MSEK 64 in 2024 7 Key highlights after Q1
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Agenda 8 01. Key highlights Q4 and FY 2024Jan-Olof Svensson02.FinancialsJan-Olof Svensson03.SummaryJan-Olof Svensson05. Q&A
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KEY PERFORMANCE INDICATORS 9 Financial development Q1 2025 024681012 0 30 60 90 120 150 Q1- 24Q2- 24Q3- 24Q4- 24Q1- 25 %MSEKADJUSTED EBITA PER QUARTER* Adjust ed EBI TAMargin MSEK Q1’25Q1’24ΔNet sales 1,210.2985.123%Organic net sales growth, %–2%1%Adjusted EBITA52.639.334%Adjusted EBITA margin, %4%4%Cash flow from operating activities–0.4106.5–100%Net debt / proforma EBITDA R12M, x3.5x3.7x * Excluding discontinuing operations
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Net sales development Q1 10 10 244 -21730 985 2461210 Q1 2023Organic growthAcquired growthQ1 2024Organic growthAcquired growthQ1 20250 200 400 600 800 1000 1200 1400 NET SALES, MSEK
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Adjusted EBITA development Q1 11 54 -28 13 39 -17 3053 Q1 2023Organic growthAcquired growthQ1 2024Organic growthAcquired growthQ1 20250 10 20 30 40 50 60 ADJUSTED EBITA, MSEK
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R12M per quarter for the Group 12 •Adjusted EBITA growth and net sales growth trend positive for the last four quarters•EBITA-margin flat y/o/y but with significant differences within the three segments:•Industry segment reported adjusted EBITA margin of 9%, compared to 1% in the comparative quarter•Innovations segment reported adjusted EBITA margin of 11%, compared to 31% in the comparative quarter Pamica Group: Net sales R12MPamica Group: Adjusted EBITA and margin R12M
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SEGMENT INDUSTRY •Net sales in Q1 increased 93% to MSEK 419.7 (217.4)–Organic net sales growth –9%–Acquired net sales growth in Q1 from SKAB-Gruppen •Adjusted EBITA increased significantly to MSEK 38.3 (3.2)–Adjusted EBITA-margin 9% (1) –SKAB-Gruppen, acquired in Sep’24, contributed MSEK 27.7in adjusted EBITA in Q1’25–Organic adjusted EBITA growth was MSEK 7.4 Q1MSEK20252024ΔNet sales419.7217.493%Adjusted EBITA38.33.21.107%Adj. EBITA margin9%1%8 pp KEY PERFORMANCE INDICATORS ADJUSTED EBITA R12M, MSEK
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SEGMENT SERVICES •Net sales in Q1increased 5% to MSEK 641.2 (608.0)–Organic net sales growth 2%–Acquired net sales growth in Q1 from HGM, an add-on acquisition to Beans in Cup, consolidated from Jun’24 •Adjusted EBITA increased to MSEK 1.1 (–6.3)–Adjusted EBITA-margin 0% (–1)–Organic adjusted EBITA growth was MSEK 4.8–Improved profitability in the Services segment primarily attributable to Houser and PPP Q1MSEK20252024ΔNet sales641.2608.05%Adjusted EBITA1.1–6.3naAdj. EBITA margin0%–1%1 pp KEY PERFORMANCE INDICATORS ADJUSTED EBITA R12M, MSEK
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SEGMENT INNOVATIONS •Net sales in Q1decreased –8% to MSEK 147.5 (159.9)–Organic net sales growth also –8% •Adjusted EBITA decreased –66% to MSEK 16.5 (49.2)–Adjusted EBITA-margin 11% (31)–The lower profitability in the Innovations segment is primarily attributable to Stapp Group and Delta as well as minor impact from Waboba Q1MSEK20252024ΔNet sales147.5159.9–8%Adjusted EBITA16.549.2–66%Adj. EBITA margin11%31%–20 pp KEY PERFORMANCE INDICATORS ADJUSTED EBITA R12M, MSEK
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0 100 200 300 400 Q1- 23Q2- 23Q3- 23Q4- 23Q1- 24Q2- 24Q3- 24Q4- 24Q1- 25 MSEK TOTAL AVAILABLE CASH, INCLUDING UNUTILISED CREDIT FACILITIES Cash and cash equivalents and unutilized credit facilities Cash flow and cash position 16 -20104070100130160190 Q1- 22Q2- 22Q3- 22Q4- 22Q1- 23Q2- 23Q3- 23Q4- 23Q1- 24Q2- 24Q3- 24Q4- 24Q1- 25 MSEK CASH FLOW FROM OPERATING ACTIVITIES Cash flow from operating activitiesAdj. EB ITDAAdj. EB ITA Cash conversion R12M Q1’25: 62% (65)•Previous quarter R12M Q4’24: 88% (45)Refinancing completed in Dec’24•MSEK 1,200 in senior secured bonds–Term of three years and floating interest rate of 3M Stibor + 550 bps•MSEK 500 in SSRCF in Nordea Bank•Used to refinance previous bank debt and vendor loans Cash conversion R12M: Cash flow from operating activities R12M / Reported EBITDA R12M
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Net debt and leverage ratio 17 2,02,53,03,54,04,55,0 02505007501 0001 2501 5001 7502 0002 2502 500 Q42021Q12022Q2Q3Q4Q12023Q2Q3Q4Q12024Q2Q3Q4Q12025 xMSEK NET DEBT AND LEVERAGE RATIO Net debtLevera ge ratio NET DEBT AND LEVERAGE RATIO NOW INCLUDES CASH PURCHASE PRICE LIABILITIES–Leverage ratio of 3.5x (3.7x)–Change made to increase transparency and reflect bond terms–Excluding purchase price liabilities, leverage ratio is 3.3x–Net debt includes 32.5 MSEK in cash purchase price liabilities due after 2027
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Agenda 18 01. Key highlights Q4 and FY 2024Jan-Olof Svensson02.FinancialsJan-Olof Svensson03.SummaryJan-Olof Svensson05. Q&A
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Focus 2025 19 Lay the ground for the IPO•Improve adj. EBITA margin•Decrease leverageActions•Continued focus on profitability and streamlining•Capital injection to finance additional acquisitions of high margin businesses•Sale of selected companies
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Summary 20 Development in Q1 2025•Healthy net sales development•Strong adjusted EBITA improvement but too low adjusted EBITA margin •Operating cash flow from operating activities negative•Structural plan for higher margins and lower leverage–Streamlining portfolio of companies–Acquiring companies that strengthen our existing portfolio of companies, mainly through add-on acquisitions–Pamica5 AB established–Strong support from PamicaGroup´s owners •Pamica5’s first acquisition completed•Recruitment process for a new CFO ongoing
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Agenda 21 01. Key highlights Q4 and FY 2024Jan-Olof Svensson02.FinancialsAnders Maiqvist03.SummaryJan-Olof Svensson05. Q&A