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Susanna Zethelius CFO Bengt Lejdström President & CEO Interim Report Fourth Quarter October – December 2024 Creating sustainable, efficient and safe societies
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Sources: Sdiptech Financial reports, LTM Q4 2024 2 5,166 MSEK Net Sales (LTM Q4 2024) 1,010 MSEK Adj. EBITA (LTM Q4 2024) 100% of acquired units contribute to the SDGs (2017 – 2024) 823 MSEK Cash flow from operating activities Highlights ▪ Net sales increased by 13%, of which 3% was organic excl. currency ▪ Adjusted EBITA increased by 10%, of which -2% was organic excl. currency ▪ Adjusted EBITA margin of 19.6% ▪ Strong cash flow with a cash conversion of 83% ▪ Five high-quality acquisitions ▪ SEK 109 million added EBITA on an annual basis ▪ Debt ratios increased short term ▪ several acquisitions in a short period of time where the profits have not yet fully been included in the books ▪ Reduced CO2e/turnover from base year 2021 with 24% ▪ 10% during 2024 Summary of 2024
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3 Summary of the fourth quarter Highlights Continued solid demand ▪ Net sales increased with 3% ▪ -6% organic, +2% currency effects and +7% acquired growth ▪ Tough comps (20% organic growth last year) ▪ Adjusted EBITA increased with 2% ▪ -8% organic, +2% currency effects and +8% acquired growth ▪ Weaker performance in units exposed to construction sector ▪ Largely a one-off effect ▪ Solid 19.5% (19.5) profit margin Strong cash flow generation ▪ SEK 302m in cash flow ▪ 109% in cash generation Acquisitions ▪ SEK 49m in added EBITA on an annual basis ▪ Eagle Automation Systems Ltd in UK: Oct-24 ▪ Dado Labs Srl in Italy: Nov-24 ▪ Wintex Agro in Denmark: Dec-24 Sources: Sdiptech Financial reports, LTM Q4 2024
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0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28% 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 0 MSEK 14.4% 2019 16.6% 2020 18.7% 2021 19.1% 20.1% 2023 20.0% LTM Q1 2024 19.9% LTM Q2 2024 19.6% LTM Q3 2024 19.6% LTM Q4 2024 1,825 2,088 2,719 3,505 4,581 4,843 5,050 5,132 5,166 2022 4 Net Sales Adj. EBITA margin Quarter ▪ Net sales increased by 3% and -6% organic ▪ Adj. EBITA margin 19.5% 2024 ▪ Net sales increased by 13% and 3% organic ▪ Adj. EBITA margin 19.6% Long term ▪ CAGR 25% (2017-2024) ▪ 6% organic sales growth in average since 2019 Net sales & Adj. EBITA margin Sources: Sdiptech Financial reports, LTM Q4 2024. Note that numbers refer to continuing operations from 2023 and onwards. 18% 3% 0% 11% 4% 0% Organic growth
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5 Geographical distribution of sales Sources: Sdiptech Financial reports, LTM Q4 2024 18% 42%4% 4% 5% 5% 16% 7% Sweden United Kingdom USA Germany Norway Italy Other, Europe Other, rest of the world 61%16% 23% Proprietary products Installation Service 0% Distribution Turnover by type of revenue Sales split
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6 Quarter ▪ Adj. EBITA increased with 2%, -8% organic growth, excl currency 2024 ▪ Adj. EBITA increased by 10%, whereof -2% organic, excl currency Long term ▪ CAGR 34% (2017-2024) ▪ 5% organic adj. EBITA growth in average since 2019 262 347 509 671 920 968 0 300 600 900 1,200 MSEK 2019 2020 2021 2022 2023 LTM Q1 2024 LTM Q2 2024 LTM Q3 2024 LTM Q4 2024 1,007 1,006 1,010 Adj. EBITA Adj. EBITA Sources: Sdiptech Financial reports, LTM Q4 2024. Note that numbers refer to continuing operations from 2023 and onwards. Organic growth 13% -2% -10% 8% 11% 9%
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Bio economy & Waste management 641 616 1 028 1 270 1 650 1 800 123 128 250 276 366 394 19,1% 20,8% 24,3% 21,7% 22,2% 21,9% 2019 2020 2021 2022 2023 2024 Power & Energy Water & Sanitation Quarter Sales flat at SEK 459m (460) Adj. EBITA decreased by -16% to SEK 88m (104) Adj. EBITA margin at 19.1% (22.6) Business units ▪ Several comparable units had good demand ▪ E.g., smaller units in water purification and unit for charging equipment for electric vehicles ▪ Others had a more challenging quarter with tough comparable numbers ▪ Adj. EBITA increased with 80% in Q4-23 ▪ Units exposed to the construction sector performed weaker compared to last year Net sales (SEKm) Adj. EBITA margin (%) 7 Adj. EBITA (SEKm) Safety & Security Transport & Logistic Air & Climate Resource Efficiency Sources: Sdiptech Financial reports, LTM Q4 2024.
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1 184 1 473 1 691 2 235 2 931 3 366 151 257 314 452 621 692 14,1% 17,5% 18,6% 20,2% 21,2% 20,5% 2019 2020 2021 2022 2023 2024 Net sales (SEKm) Adj. EBITA margin (%) 8 Adj. EBITA (SEKm) Quarter Sales increased by 4% to SEK 877m (842) Adj. EBITA increased by 15% to SEK 193m (168) Adj. EBITA margin at 22.0% (19.9) Business Units ▪ Solid sales growth in several units ▪ E.g., units for transport refrigeration, underground infrastructure repair, winter road maintenance equipment ▪ Acquisitions also contributed ▪ Units with sales growth further boosted profitability through strong scalability ▪ Unit with exposure to the construction sector had a weak development of one-off nature Bio economy & Waste management Power & Energy Water & Sanitation Safety & Security Transport & Logistic Air & Climate Special Infrastructure Solutions Sources: Sdiptech Financial reports, LTM Q4 2024. Note that numbers refer to continuing operations from 2023 and onwards.
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70 89 313 451 385 565 628 823 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 110% 120% 130% 0 150 300 450 600 750 900 MSEK 63.0% 2017 56.0% 2018 115.0% 2019 109.0% 2020 71.0% 2021 80.0% 2022 68.0% 2023 83.0% 2024 Cash flow from operations Cash conversion Quarter ▪ Cash flow from operations amounted to MSEK 302, corresponding to 109% cash conversion ▪ Improvements in working capital efficiency, including lower inventory levels YTD ▪ Cash flow from operations amounted to MSEK 823, corresponding to 83% cash conversion Cash flow & Cash conversion Sources: Sdiptech Financial reports, LTM Q4 2024. Note that numbers refer to continuing operations from 2023 and onwards.
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Oct-Dec 2024 Oct-Dec 2023 Jan-Dec 2024 Jan-Dec 2023 Profit after tax, (SEK million) 108 96 436 450 Earnings per ordinary share after dilution (SEK) 2.73 2.43 11.00 11.44 Financial net debt/Adjusted EBITDA, multiple 2.25 2.03 2.25 2.03 Net debt/Adjusted EBITDA, multiple 3.30 3.09 3.30 3.09 Additional metrics Sources: Sdiptech Financial reports, LTM Q4 2024. Note that numbers refer to continuing operations.
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Additional metrics Oct-Dec 2024 Oct-Dec 2023 Jan-Dec 2024 Jan-Dec 2023 Profit after tax, (SEK million) 108 96 436 450 Earnings per ordinary share after dilution (SEK) 2.73 2.43 11.00 11.44 Financial net debt/Adjusted EBITDA, multiple 2.25 2.03 2.25 2.03 Net debt/Adjusted EBITDA, multiple 3.30 3.09 3.30 3.09 Sources: Sdiptech Financial reports, LTM Q3 2024. Note that numbers refer to continuing operations.
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Acquisition ambitions ▪ 2023: Slower pace due to higher cost of capital, and to decrease debt levels ▪ 2024: 100-120 MSEK acquired EBITA on rolling 12 months ▪ 2025->: 120-150 MSEK acquired EBITA on rolling 12 months Current situation ▪ Acquisition pipeline is solid ▪ Prioritised geographies: ▪ UK ▪ Italy ▪ Nordics ▪ NL ▪ Financial position is good ▪ Credit lines from financial institutions ▪ Sustainability-link bond 150m 120m 90 83 67 93 94 158 161 50 109 40 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 EBITA MSEK 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Acquired EBITA Sources: Sdiptech Financial reports, LTM Q4 2024 Acquisitions Target
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13 Three quality acquisitions in Q4 Eagle Automation Systems Ltd in UK ▪ Approx. GBP 2 million in annual EBIT ▪ Security- and hostile vehicle mitigation (HVM) products ▪ SDG 16.A prevent violence and combat terrorism and crime ▪ Special Infrastructure Solutions Oct-24 9.4 Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation 3.9 By 2030, substantially reduce the number of deaths and illnesses from hazardous chemicals and air, water and soil pollution and contamination Dado Labs Srl in Italy ▪ Approx. EUR 800k annual EBIT ▪ Instruments used in stack emission and environmental sampling ▪ SDG: 3.9 reduce illnesses from hazardous chemicals and air ▪ Special Infrastructure Solutions Nov-24 Wintex Agro in Denmark ▪ Approx. DKK 5 million annual EBIT ▪ A leading manufacturer of automatic soil samplers for the agricultural sector ▪ SDG 12.4: Responsible consumption and production ▪ Resource Efficiency Dec-24
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14 Acquisition in Q1: Welcome Phase 3 Connectors Ltd ▪ Approx. GBP 3 million in annual EBIT ▪ Designs, manufactures, and supplies high-quality single-pole power connectors for industrial and event sectors, meeting the highest standards of safety and performance ▪ Supports SDG 9.4 by delivering advanced connector solutions that enhance energy efficiency and reliability in industrial infrastructure ▪ Included in the Energy & Electrification from February 2025
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From two to four business areas 15 Supply chain & Transportation Energy & Electrification Quick facts 2024 ▪ Business units: 11 ▪ Net sales: 1 361 MSEK ▪ Adj. EBITA: 287 MSEK ▪ Adj. EBITA margin: 21.1% Opportunities ▪ Niche solutions in energy efficiency, electrification, power supply, and temporary electricity ▪ Driven by the transition to a sustainable and efficient energy system EVP & Head of: Anders Mattson Safety & Security Quick facts 2024 ▪ Business units: 10 ▪ Net sales: 465 MSEK ▪ Adj. EBITA: 120 MSEK ▪ Adj. EBITA margin: 25.8% Opportunities ▪ Solutions for personal safety, workplace and public security and information protection ▪ Driven by technological advancements, evolving societal needs, and stricter security requirements Head of: Johan LahiriHead of: Amanda Berninger Water & Bioeconomy Quick facts 2024 ▪ Business units: 11 ▪ Net sales: 1 067 MSEK ▪ Adj. EBITA: 254 MSEK ▪ Adj. EBITA margin: 23.8% Opportunities ▪ Systems and technologies for water, waste management, and circular resource use ▪ Driven by urbanization, rising consumption, and regulatory demands for infrastructure modernization Head of: Sara Ström Quick facts 2024 ▪ Business units: 9 ▪ Net sales: 2 271 MSEK ▪ Adj. EBITA: 425 MSEK ▪ Adj. EBITA margin: 18.7% Opportunities ▪ Innovative solutions for modernizing and streamlining transport and supply chains ▪ Driven by the demand for sustainable and efficient logistics
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16 Looking ahead Sources: Sdiptech Financial reports, LTM Q4 2024 Highlights Conditions for continued growth: ▪ Solid acquisition pipeline and financial position ▪ Entrepreneurs recognize the value of Sdiptech’s governance model, strategic support, and market expertise ▪ Despite geopolitical and economic uncertainties, strategic positions supports continued long-term growth New organizational structure: ▪ Enhances governance and supports growth ▪ Peter Helsing joins as Head of M&A in May to strengthen acquisition capacity Diversification and risk mitigation: ▪ Growth in new industries, end markets, and geographies strengthens the group’s resilience
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17 Consistency & diligence = a high-quality group of companies
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Appendix
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Management Board of Directors Susanna Zethelius CFO since 2024 3,000 (Class B) 0 (Warrants) Pricer, Clear Channel, BNP Paribas M.Sc. Stockholm School of Economics Bengt Lejdström CEO since Dec 2023 85,740 (Class B) 500 (Pref) 50,000 (Warrants) Lagercrantz Group, Interim Justitia, Acando M.Sc. Stockholm School of Economics Anders Mattson EVP - Head of Supply chain & Transportation since 2018 50,003 (Class B) 25,000 (Warrants) Munters, Roland Berger, Bearingpoint M.Sc. Chalmers University of Technology Johnny Alvarsson Board Member 8,000 (Class B) Indutrade, Bejier Alma, Ericsson, Instalco, VBG M.Sc. Engineering Linköping University Jan Samuelson Chairman 326,000 (Class B) Resurs Holding, Stillfront Group, Accent Equity Partners, EF Education M.Sc. Stockholm School of Economics, LL.M. Stockholm University Joakim Landholm Board Member 2,943 (Class B) SKF, Hector Rails, Scandinavian Airlines, General Electric, M.Sc. Stockholm School of Economics Birgitta Henriksson Board Member 4,600 (Class B) Fogel & Partner, Stillfront Group, Carnegie B.Sc. Business Administration Uppsala University Kristina Schauman Board Member Current Management Team and Board of Directors 19 3,000 (Class B) Carnegie, Afry, Coor Service, Viaplay, Ellos, M.Sc. Stockholm School of Economics My Lundberg Head of Sustainability & IR since 2020 8,866 (Class B) 13,000 (Warrants) Agency, Smartclip, Kärnhuset B.Sc. Business Administration Mälardalen University Peter Helsing Head of Acquisitions as of May 2025 0 (Class B) 0 (Warrants) Essity, KPMG M.Sc. Business Administration Örebro University
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Ownership 31 December 2024 Sources: Modular Finance Owner SDIP A SDIP B PREF CAPITAL % VOTES % Vulcan Value Partners, LLC 3,990,132 10,04% 8,22% Handelsbanken Fonder 3,277,517 8,25% 6,75% Swedbank Robur Fonder 3,205,847 8,07% 6,60% Cliens Fonder 2,089,035 5,26% 4,30% Ashkan Pouya 1,424,000 592,967 5,08% 30,54% SEB Investment Management 1,607,419 4,04% 3,31% Vanguard 1,365,590 3,44% 2,81% Nordnet Pensionsförsäkring 1,197,170 56880 3,16% 2,58% Invesco 1,227,739 3,09% 2,53% Avanza Pension 1,045,692 172390 3,06% 2,51% Danske Invest 783,082 1,97% 1,61% Case Kapitalförvaltning 606,033 1,52% 1,25% Deka Investments 587,500 1,48% 1,21% Carnegie Investment Fund 545,602 1,37% 1,12% FORUM Family Office GmbH 501,444 1,26% 1,03% Total 1,424,000 36,567,938 1,750,000 100.00% 100.00% 20
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Adjusted EBITA → Net profit 21 MSEK 2024 Q4 2023 Q4 2024 Full year 2023 Full Year Continued operations Net Sales 1,336 1,302 5,166 4,582 Operational costs -1,076 -1,047 -4,156 -3,663 Profit from operations, adjusted EBITA 260 255 1,010 919 Acquisition costs -8 -6 -17 -13 Direct costs related to acquisitions/divestments Earn-out debt adjustments/divestments 2 -7 7 17 Adjustment of debt related to conditional considerations (“earn-out”) for acquisitions, booked as other revenue or external cost. Change of discount rate per 30 Sep 2023 decreased the booked value. Add back amortisations non acquisition 10 11 42 38 Add back amortisation of intangible non-current asset non acquisition related EBITA 265 252 1,041 961 Amortisations & write-downs of intangible fixed assets -39 -34 -146 -127 EBIT 226 218 895 834 Net financial income/expense -48 -44 -186 -152 Currency effects 1 -16 -8 -14 Discounted interest -16 -16 -66 -52 Discounted interest on conditional considerations (“earn-out”) for acquisitions and discounted interest for leases according to IFRS 16 EBT 163 143 635 615 Tax -55 -47 -200 -165 Net profit 108 96 436 450 Discontinued operations -13 -4 -79 -4