Slides
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Capital Markets Day 2025
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Today’s agenda and speakers 28 NOVEMBER 2025 CAPITAL MARKETS DAY 2025 Anders Mattson President & CEO Roger Wood Acting Head of Energy & Electrification Amanda Berninger Head of Safety & Security Sarah Ström Head of Water & Bioeconomy Daniel Unge Head of Supply Chain & Transportation Michael Lund MD, e-l-m Kragelund Peter Helsing Head of M&A Bengt Lejdström CFO
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CEO Update Anders Mattson, CEO
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28 NOVEMBER 2025 *ACTING **PARENTAL LEAVE CMD 2025 | CEO UPDATE 4 President & CEO Anders Mattson Head of M&A Peter Helsing CFO Bengt Lejdström SC&T Daniel Unge E&E Roger Wood* W&B Sarah Ström S&S Amanda Berninger Head of Strategy & Corporate Development Peter Stegersjö Head of IR & Sustainability My Lundberg** Sdiptech management 2025
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Sdiptech – an infrastructure technology group 28 NOVEMBER 2025 5 Note: Only ”Core operations” included. All figures are LTM as per Q3 2025. Nordics 16% UK 49% Italy 7% US 5% Other Europe 15% Other, RoW 9% Geographical distribution of sales Supply Chain & Transportation Energy & Electrification Water & Bioeconomy Safety & Security 443 Adj. EBITA (SEKm) 57% ROCE 21% Adj. EBITA % 215 Adj. EBITA (SEKm) 110% ROCE 24% Adj. EBITA % 265 Adj. EBITA (SEKm) 46% ROCE 26% Adj. EBITA % 129 Adj. EBITA (SEKm) 155% ROCE 30% Adj. EBITA % CMD 2025 | CEO UPDATE
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Sdiptech’s segments driven by fundamental and sustainable growth trends 1. Aging infrastructure Europe’s transport, energy, and water systems are old and require large-scale replacement, modernisation, and digital upgrades 2. Rising population & urbanisation A rising population—especially in urban areas— is demanding an expansion of transportation, energy supply and water systems 3. Increasing regulatory & safety requirements Stricter standards on sustainability, efficiency and safety is driving mandatory investments across key segments 28 NOVEMBER 2025 6 CMD 2025 | CEO UPDATE
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Strong foundation Fundamental and sustainable growth drivers High-quality portfolio since 2018 Strong internal M&A capabilities Decentralised operating model with strong local leadership Strong culture and passionate owners A strong foundation and a proven decentralised operating model 28 NOVEMBER 2025 7 Long track record of earnings growth 262 347 509 671 920 1,010 995 0 150 300 450 600 750 900 1050 1200 MSEK 2019 2020 2021 2022 2023 2024 LTM Q3 2025 Adj. EBITA CMD 2025 | CEO UPDATE
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Several challenges identified and being addressed 28 NOVEMBER 2025 CMD 2025 | CEO UPDATE 8 Identified challenges Portfolio of business units not aligned with investment criteria (proprietary products) Volatile growth with limited visibility Insufficient balance between EBITA growth and capital efficiency (CAPEX and working capital) Too hands-off and distant in our governance Negative organic EBITA growth trend Ongoing strategic initiatives Portfolio assessment finalised, non-core business units to be divested Strengthen business area organisation Strategy work to ensure return to long-term organic EBITA growth with improved returns (ROCE)
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Increased ROCE Leverage Adj. EBITA growth with sustained profitability 1,000 2,000 Today LTM Q3 2025 2030 Financial target 28 NOVEMBER 2025 CMD 2025 | CEO UPDATE 9 New financial targets focusing on profitable growth at attractive returns with a decreasing leverage >15% Return on capital employed (ROCE) (EBITA/Fixed assets + working capital) <3x Total net debt/EBITDA
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28 NOVEMBER 2025 CMD 2025 | CEO UPDATE 10 Strategic pillars to reach the financial targets Cluster strategy to accelerate both organic and M&A-driven growth 4 Enhanced portfolio management Disciplined and return-focused M&A Proactive ownership 1 32
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Enhanced portfolio management 28 NOVEMBER 2025 CMD 2025 | CEO UPDATE 11 Framework External Conditions Internal capabilities Strengthen: Take actions needed Accelerate: Invest for growth Harvest: Optimise for higher returns 1 2 3 Portfolio management to improve capital allocation ~30% ~60% ~10% of core portfolio Divest: Assessment of strategic fit 11 One-off of core portfolio of core portfolio Divest Harvest Strengthen Accelerate 1 2 3
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Proactive ownership paired with decentralised leadership 28 NOVEMBER 2025 CMD 2025 | CEO UPDATE 12 Capital turnover EBITA Margin ROCE 50% Proactive ownership Active board work with high level of strategic involvement Strategic plans for each company based on Du- Pont framework Aligned objectives & ways of working Clear incentives Decentralised operating model Day-to-day operations managed locally Ensure strong local leadership Clear KPI:s aligned with incentives Disciplined CAPEX and working capital to improve cash conversion Initiate selective growth investments
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Disciplined and return-focused M&A 28 NOVEMBER 2025 CMD 2025 | CEO UPDATE 13 In-house M&A capabilities in close collaboration with business areas Increased sector expertise and experience in business areas Disciplined valuation principles (20% IRR) Increased focus on cash flow and returns Geographic expansion Entering new markets Open for new geographical opportunities M&A a core part of the Sdiptech model
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Cluster strategy to accelerate both organic and M&A-driven growth 28 NOVEMBER 2025 CMD 2025 | CEO UPDATE 14 Collaboration opportunities Improved sector expertise M&A drivers BA BA BA Collaboration within and across business areas Identification of M&A candidates
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Milestones towards 2030 28 NOVEMBER 2025 CMD 2025 | CEO UPDATE 15 Formulating strategy and priorities Back on the growth path New team in place Improved Balance Sheet Performing at full potential 2025 2026 2027 and onwards 2030 Meeting the targets
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Financial targets focused on profitable growth at attractive returns with a healthy balance sheet 28 NOVEMBER 2025 CMD 2025 | CEO UPDATE 16 Return on capital Stable organic EBITA growth Stable M&A EBITA growth Robust and healthy balance sheet <3 leverage >15% 15% total (CAGR 2025-2030) Organic growth • Sdiptech’s segments to grow faster than GDP growth • Organic performance M&A growth • Organic cash flow generation key for M&A growth
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Key takeaways 28 NOVEMBER 2025 CMD 2025 | CEO UPDATE 17 Strong core portfolio of high-quality companies Well positioned within key infrastructure segment, driven by fundamental and sustainable growth trends Financial targets focused on profitable growth, ROCE and a healthy balance sheet Growth agenda built on proactive ownership and disciplined M&A
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Water & Bioeconomy Sarah Ström
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28 NOVEMBER 2025 CMD 2025 | WATER & BIOECONOMY 19 Water & Bioeconomy at a glance • Niche technologies and systems for water treatment, waste management and circular resource management • Portfolio of 9 business units with ~400 employees based in Sweden, Norway, Denmark, Italy and UK • Portfolio characterised by high return on capital employed and attractive margins. 110% ROCE2) +11% Revenue CAGR1) 743 870 897 2023 2024 Q3 2025 LTM 195 225 215 26% 26% 24% 0% 5% 1 0% 15% 20% 25% 30% 35 % 40% 45 % 50% 0 50 1 00 150 200 250 2023 2024 Q3 2025 LTM +6% Adj. EBITA CAGR1) 25% Adj. EBITA margin1) Note: All data items relates to ”Core operations” and excludes ”Other operations”. 1) 2023-Q3 2025 LTM; 2) Q3 2025 LTM. 20% 20% Share of total EBITA Revenue Adj. EBITA and margin Share of Total Revenue
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Water and Bioeconomy – a sub-segment driven by structural growth trends and regulatory demands Market drivers 28 NOVEMBER 2025 SOURCES: COGNITIVE MARKET RESEARCH WATER AND WASTEWATER MARKET R EPORT 2025 REPORT ID: CMR782292 CMD 2025 | WATER & BIOECONOMY 20 Well positioned within attractive sub-segments in the urban water cycle Collection Treatment Discharge/recycle Wastewater Treatment Stormwater Management Storage Growing water demand By 2030 global water demand will exceed available resources by 40% Resource scarcity Only 27% of surface water in EU has good chemical status Increased regulatory demand, and development of infrastructure requires investments and innovation. Distribution Treatment/Use
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Two clusters demonstrating continuous improvements and selective M&A opportunities 28 NOVEMBER 2025 21 1. Water treatment cluster • Four companies collaborate closely on sourcing, R&D, and product expertise • Generating stronger local market position and improved profitability • Selective M&A opportunities 1 2 CMD 2025 | WATER & BIOECONOMY 2. Wastewater treatment cluster • Two companies, UK and Sweden, exploring partnership around product expertise and strengthened local market offering • Pilot planned in 2026
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Summary 28 NOVEMBER 2025 CMD 2025 | WATER & BIOECONOMY 22 Highly attractive segment driven by structural, technical, regulatory and environmental demand Established clusters and collaboration driving continuous improvements and area expertise Increased focus on M&A opportunities, supported by clusters
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Energy & Electrification Roger Wood
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23% 25% Share of total EBITA 28 NOVEMBER 2025 CMD 2025 | ENERGY & ELECTRIFICATION 24 Energy & Electrification at a glance • Niche technologies and products for the efficient generation, transmission and consumption of energy • Portfolio of 6 business units with ~430 employees • Portfolio characterised by variation in individual company performance, but stable margins overall • High growth sub-segments • International growth opportunities 46% ROCE2) +3% Revenue CAGR1) Revenue 984 986 1032 2023 2024 Q3 2025 LTM 256 244 265 26% 25% 26% 0% 5% 1 0% 15% 20% 25% 30% 35 % 40% 45 % 50% 0 50 1 00 150 200 250 300 2023 2024 Q3 2025 LTM Adj. EBITA and margin +2% Adj. EBITA CAGR1) 26% Adj. EBITA margin1) Note: All data items relates to ”Core operations” and excludes ”Other operations”. 1) 2023-Q3 2025 LTM; 2) Q3 2025 LTM. Share of Total Revenue
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Generation Increasing global demand for green energy Market drivers 28 NOVEMBER 2025 CMD 2025 | ENERGY & ELECTRIFICATION 25 Positioned in attractive sub-segments Infrastructure – ageing and transitioning to low emission energy sources – solar, wind, hydro Significant consumption increases – data centres, EV’s, global warming and urbanisation Energy intensity drive in the face of increasing energy costs Consumption Distribution Transmission
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RDM – shareholder and management transition at work 28 NOVEMBER 2025 CMD 2025 | ENERGY & ELECTRIFICATION 26 3. MD recruitment: Recruitment of experienced MD who has been empowered and incentivised to develop long-term growth strategy 1. Owner reliance: Typical entrepreneurial organisation - broad management structure, but growth bottleneck at the top of the organisation. External finance function 2. Board development: Regular and broader commercial input and greater focus on long term growth strategies 4. Functional heads: Motivated and expert functional heads enables RDM to deliver efficiently on operational priorities Resource Data Management, RDM, has a strong presence in food retail and fast-food sectors, also hospitality and leisure, fuel retail, smart buildings and cold chain. MD Director Chairperson FinanceSupply Chain US MD (TBC) Customer SuccessTechnology DirectorDirector Owner Ops US Finance Asia S&M NB – Illustrative structures
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The journey ahead 28 NOVEMBER 2025 1) INTERNATIONAL ENERGY AGENCY FORECAST CMD 2025 | ENERGY & ELECRTIFICATION 27 Focus on operational strategies for more stable financial performance and improve working capital efficiency Targeted investment in international growth opportunities Identify products and technologies that could be added to existing global distribution channels Increasing global energy demand
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Safety & Security Amanda Berninger
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28 NOVEMBER 2025 CMD 2025 | SAFETY & SECURITY 29 Safety & Security at a glance • Solutions for protecting physical and digital assets, people and the environment – For a more safe society • 7 business units with ~130 employees • Portfolio consisting of market leaders in specific niches with distribution networks that enable export • Attractive portfolio characterised by strong growth, profitability, and high cash conversion Note: All data items relates to ”Core operations” and excludes ”Other operations”. 1) 2023-Q3 2025 LTM; 2) Q3 2025 LTM. 247 306 433 2023 2024 Q3 2025 LTM 83 101 12934% 33% 30% 0% 5% 1 0% 15% 20% 25% 30% 35 % 40% 45 % 50% 0 20 40 60 80 1 00 120 140 2023 2024 Q3 2025 LTM 155% ROCE2) +38% Revenue CAGR1) +29% Adj. EBITA CAGR1) 32% Adj. EBITA margin1) 10% 12% Share of total EBITA Revenue Adj. EBITA and margin Share of Total Revenue
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Four key sub-segments with sustainable growth Market drivers 28 NOVEMBER 2025 CMD 2025 | SAFETY & SECURITY 30 Positioned within attractive sub-segments Clean Air Cyber Security Fire Safety Infrastructure expansion Geopolitical uncertainty and threat increase Regulatory compliance – EU data protection standards – Foreign intelligence surveillance act – Martyn’s law (terrorism act, UK) – EU ambient air quality directive – Occupational safety directives Perimeter Security
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Scaling through partners Smart pricing Own design, outsourced production Accelerating growth while improving cashflow in Temperature Electronics (TEL) 28 NOVEMBER 2025 CMD 2025 | SAFETY & SECURITY 31 ➜ Global leader in airflow controls and monitors ➜ Meets latest safety regulation requirements ➜ Reduces energy usage by up to 85% ➜ Reduces operating costs and carbon footprint Company and business model Return on Capital Employed Development Sectors Products >30% >3.0 EBIT Margin Capital Turnover 134% 2023 206% 2025 LTM Strong local leadership
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The journey ahead 28 NOVEMBER 2025 CMD 2025 | SAFETY & SECURITY 32 Opportunites to drive recurring services and software offerings Continued growth while maintaining great capital efficiency Growth through acquisitions in identified and adjacent attractive sub-segments
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Supply Chain & Transportation Daniel Unge
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28 NOVEMBER 2025 CMD 2025 | SUPPLY CHAIN & TRANSPORTATION 34 Supply Chain & Transportation at a glance • Portfolio characterised by stable growth and diversified exposure to several growing segments • Portfolio of 8 business units with ~800 employees 1648 2073 2100 2023 2024 Q3 2025 LTM 331 445 443 20% 22% 21% 0% 5% 1 0% 15% 20% 25% 30% 35 % 40% 45 % 50% 0 50 1 00 150 200 250 300 35 0 400 45 0 500 2023 2024 Q3 2025 LTM Note: All data items relates to ”Core operations” and excludes ”Other operations”. 1) 2023-Q3 2025 LTM; 2) Q3 2025 LTM. 57% ROCE2) +15% Revenue CAGR1) +18% Adj. EBITA CAGR1) 21% Adj. EBITA margin1) Share of total EBITA Revenue Adj. EBITA and margin Share of Total Revenue 47% 42%
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Last-mile distribution. (Cold chain cluster) Solid market drivers in our sub-segments Market drivers 28 NOVEMBER 2025 CMD 2025 | SUPPLY CHAIN & TRANSPORTATION 35 Positioning focused on attractive sub-segments with resilient end-customer needs Rail & Marine Intra-hub logistics Hub to hub logistics E-commerce and Cold chain expansion Regionalisation of Production & Supply chain resilience Regulatory demands within sustainability
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Service sales growth >30% New markets and segments Pharma 20% of revenue Value based pricing impact >5% ➜ Niche leader within cold chain logistics with a strong position in the UK ➜ Several “blue chip” customers with recurring contracts including service ➜ Part of a growing cluster driven by the expansion of E-commerce ➜ This sub-segment is experiencing stricter regulatory demands within temperature control Value creation and profit growth in GAH through pro-active ownership 28 NOVEMBER 2025 CMD 2025 | SUPPLY CHAIN & TRANSPORTATION GAH Value creation initiative 76% EBITA Growth 2020 2025 LTM
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The journey ahead 28 NOVEMBER 2025 CMD 2025 | SUPPLY CHAIN & TRANSPORTATION Continue to invest in company specific growth levers to facilitate organic growth – maintain capital efficient approach Enhance value creation through pro-active ownership Strengthen market cluster formation and focus on M&A activities in the most attractive niches 37
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e-l-m Kragelund Presentation WE CREATE STRONG PARTNERSHIPS THAT DRIVE MUTUAL GROWTH AND LONG-TERM SUCCESS
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GOAL 03 THE STORY OF Our Company Since our founding in 1967, we have aimed for perfection. Whatever if it comes to our design of products, ways we produce or how we promote our solutions. Today, our team consists of 200 dedicated employees across two plants – Løsning in Denmark and Prešov in Slovakia. OWNERSHIP Since 2022, Sdiptech AB has been the owner of e-l-m Kragelund A/S We are part of the business area “Supply Chain and Transportation”. 01 e-l-m
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Our Employees Our sales force is locally based in all our key markets, ready to provide premium support. In addition, over the past decades, we have worked hard to establish strong partnerships with major OEM partners. 02 Sales Managers OEM Partners
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“Ever since the founding of our company 56 years ago, our mission has remained the same: To develop the perfect attachment to ensure efficient and safe internal logistics and handling solutions.” - Michael Lund, MD Our Products 03
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ADVANTAGES: • High flexibility • Standardized and available for fast delivery • Can be reused for other models • Tradition ADVANTAGES: • Optimal visibility • Increased productivity • Improved safety and ergonomics • Higher residual capacity • Smaller turning radius • Lower noise level 04 Hook-on Integrated
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05 Safety is crucial to us. That’s why safety has long been a key focus in our product development. With an e-l-m attachment, you get the best visibility on the market – and therefore, safety. Great visibility also ensures optimal ergonomic comfort. SAFETY We build equipment that lasts – even under maximum pressure. Our products are designed with a high safety factor of 4.5 to 5.8 as standard. That’s well above the CE requirement of minimum 3. QUALITY We know that sustainability matters to several of our customers – and it matters to us too. That’s why we measure our CO₂ emissions and have committed to reducing them by 50% by end of 2026 – compared to 2022. CLIMATE IMPACT Our Standards
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Our Financials 06 We aim to be the best, within our niche. We don’t aim for growth – we aim for sustainable growth – growth within our niche! That’s why we can reach significant higher EBIT levels compared to our competitors. After Sdiptech acquired our company, we have gained a more nuanced understanding of financial performance. Thanks to that, we perform today at a significant better level. ROCE = 60% ROCE = 50% ROCE = 40% ROCE = 30% 2 1 22 23 24 ROCE = 72% 10 15 20 1 2 3 4 25 EBIT MARGIN CAPITAL TURNOVER
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07 Our Ownership
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06 We actively seek for M&A activities. Companies that would fit our development and companies that would fit into the investment principles in Sdiptech. SUPPORT M&A Obviously, we have been able to improve our financial performance We share our experiences within our Business Area and actively take part in their development. SUPPORT BA We know that sustainability matters to several of our customers – and it matters to us too. There is no “Planet B”, and we feel a strong responsibility to minimize our CO₂ footprint. That’s why we measure our CO₂ emissions and have committed to reducing them by 50% by end of 2026 – compared to 2022. CLIMATE IMPACT Our Journey 08
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Thank you for your time
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M&A Peter Helsing Head of M&A
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28 NOVEMBER 2025 CMD 2025 | M&A 49 Sdiptech’s cornerstones for M&A success In-House Sourcing Great Home for Entrepreneurs Disciplined M&A Execution M&A Value Creation
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Innovative leaders Companies with products or solutions that contribute to sustainable, safe and efficient societies Niche experts Companies that are experts within Water & Bioeconomy, Safety & Security, Supply Chain & Transportation and Energy & Electrification European footprint Companies based in the Nordics, UK, Italy, Netherlands, Germany and other well developed European markets Stable financials Companies with a proven track record and attractive growth outlook: EBIT ~20-50 MSEK, ROCE ≥50% (or clear path to reach it) Resilient markets Companies operating in a market with low cyclicality and strong underlying drivers for long-term growth Aligned incentives Deal structures where both the entrepreneurs (former owners) and Sdiptech will benefit from future value creation 28 NOVEMBER 2025 CMD 2025 | M&A 50 What do we look for?
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In-house sourcing capabilities We have a dedicated sourcing team supported by advanced AI tools to identify the most attractive opportunities across our focus markets Proactive outreach Building long-term relationships with company owners and management teams, enabling us to initiate bilateral discussions and successful partnerships Collaboration within the group We actively collaborate with the business areas and our group companies to identify opportunities in attractive niches and clusters Participation in structured processes We selectively take part in structured sales processes when attractive companies become available, leveraging our efficient evaluation process to act decisively when the fit is right Sourcing Outreach Inbound opportunities How do we source our deals? 28 NOVEMBER 2025 CMD 2025 | M&A 51 Bilateral deals Structured deals Finding great companies first!
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We actively pursue 813 companies in total from the internal sourcing alone Sdiptech Total Sdiptech totalEnergy & ElectrificationSupply Chain & Transportation Water & Bioeconomy Safety & Security 188 178 214 233 813 24 22 44 64 8 5 6 15 14 14 57 69 2 1 9 12 41 31 59 56 4 3 12 8 20 28 55 96 4 1 9 20 99 95 215 285 18 10 36 55 Solid pipeline – Consistently looking at 500 companies per week has led to a strong pipeline 28 NOVEMBER 2025 CMD 2025 | M&A 52
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We invest with a long- term, buy-and-hold philosophy that provides lasting stability and continuity for the business. We appreciate and strive to preserve the unique identity, culture, and brand of each company, ensuring continuity for employees, customers, and partners. Companies operate independently, with decisions made closest to the customer and supported by the group to reach their full potential. Earn-outs allow owners to take part in the company’s future success and remain motivated and vested in its continued growth. Our cluster and network structure promotes collaboration across companies, enabling knowledge sharing and operational synergies. Long-term ownership Value brand and culture Empowered, decentralised structure Aligned incentivesCollaboration A Great Home for Entrepreneurs 28 NOVEMBER 2025 CMD 2025 | M&A 53 How do we win the deal?
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GAH Enterprise Value of GBP 33 million Earn-out 50% - GBP 7 million Forecasted profit growth 7.5% Cash Conversion 90% EV / EBIT multiple (Yr 0) 7.0x EV / EBIT multiple (Yr 4) 5.2x IRR 24% Enterprise Value of GBP 40 million Earn-out 100% - GBP 14 million Actual profit growth 16.2% Cash Conversion 110% EV / EBIT multiple (Yr 0) 8.5x EV / EBIT multiple (Yr 4) 5.2x IRR 28% 28 NOVEMBER 2025 CMD 2025 | M&A 54 Earn-outs to maximise value Business Case (2020) Outcome (2025) No earn out (fictive case) Enterprise Value of GBP 26 million Earn-out 0% - GBP 0 million Profit growth 0.0% Cash Conversion 90% EV / EBIT multiple (Yr 0) 5.5x EV / EBIT multiple (Yr 4) 5.5x IRR 20% Company overview GAH is a UK leader in the design, manufacture and service of last mile transport refrigeration solutions The company was acquired by Sdiptech and added to the Special Infrastructure Solutions business area, now Supply Chain & Transportation as of December 2020 Transaction structure Maximum purchase price GBP 26m + GBP 14m in earn-out The anticipated purchase price, in Dec. 2020, was GBP 33m - Day one, GBP 26m and GBP 7m (50%) in earn-out The final purchase price reached GBP 40m, incl. maximum earn-out of GBP 14m, at the end of the four year earn-out period, due to exceptional performance
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Key takeaways 28 NOVEMBER 2025 CMD 2025 | M&A 55 Great home for entrepreneurs Attractive to join the Sdiptech family. We balance risk and upside through a mix of day-one payments and earn-outs. Aligned interest with the former owners who are often active and keep being the the driving force Win-win solutions In-House Sourcing We have a structured, in-house process to identify, evaluate, and validate investment opportunities, ensuring disciplined decision- making and a high-quality deal flow At Sdiptech, we all think about M&A and the next deal Finding great companies first IRR >20% Leverage <3x Disciplined M&A Execution We invest in businesses with growth trajectories that can deliver an IRR above 20%, and contributing to the group’s ROCE target of over 15% within five years Run fast but with a strong balance sheet at all times
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CFO Update Bengt Lejdström
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Key financial priorities to reach our financial targets CMD 2025 | CFO UPDATE 57 GROWTH LEVERAGE RETURNS FINANCING
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Demonstrated history of organic EBITA growth – key for reaching the financial targets CMD 2025 | CFO UPDATE 58 Sdiptech’s core business units have a demonstrated track record of organic EBITA growth ➜ Many of the core units have had a 10+ % organic growth since 2020 ➜ The core units had a 14% organic EBITA growth 2023 and 5% in 2024 ➜ Units in our “sweet spot”, EUR 2–4m EBIT when acquired, performing well We will continue to report on organic growth 0,0% 5,0% 10,0% 15,0% 20,0% 25,0% 30,0% 0 10 000 20 000 30 000 40 000 50 000 60 000 70 000 80 000 CAGR 2020 - 2025 EBITA 2020 A selection of Sdiptech core business units’ EBITA size 2020 and CAGR from 2020 to 2025* *Based on verified data availability for core units with positive CAGR
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90 90 10 10 25 Enterprise Value at acquisition day Enterprise Value adjustment after earn-out 100 125 Potential upside for acquired company Sdiptech’s downside protection Payment at acquisition day 4-5 year earn-out period Conditional considerations (Earn-outs) ➜ An important tool for risk reduction and cost- efficient funding ➜ Final payment depending on profit growth ➜ The downside protection paid if the acquisition is performing as planned ➜ The potential upside paid if substantial profit growth Interest cash-free debt an important source of funding A proven M&A model providing efficient funding and supporting returns CMD 2025 | CFO UPDATE 59
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Ensuring a healthy total leverage CMD 2025 | CFO UPDATE 60 Leverage ratio historically impacted by ➜ Aggressive M&A agenda up to 2022 ➜ New issues of shares (2021 and 2022) ➜ Volatile organic EBITA growth Leverage ratio towards target of <3.0, driven by ➜ Organic EBITA growth ➜ Improved cash flow ➜ Selective M&A ➜ Temporary variations over the period in connection with larger acquisitions *) Net debt in relation to adjusted EBITDA for the last four quarters. Net debt includes all interest-bearing debt including provisions for future conditional earn-out payments and IFRS related leasing debt. 0,0 0,5 1,0 1,5 2,0 2,5 3,0 3,5 4,0 4,5 5,0 Leverage ratio (Total net debt / Adjusted LTM EBITDA)*
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Improved cash flows for reduced leverage CMD 2025 | CFO UPDATE 61 FCF per share and EPS historically impacted by ➜ Higher interest costs ➜ Earnings in high-tax countries ➜ Slow/negative organic growth last quarters EPS also negatively affected by increased IFRS non-cash cost items (currently SEK 60m per year (SEK -1.60/share)). FCF will continue to improve, driven by ➜ Acquisitions ➜ Improved WC efficiency ➜ Selective CAPEX Targeting a cash conversion between 70-90%, currently at 81% 0,00 2,00 4,00 6,00 8,00 10,00 12,00 14,00 16,00 18,00SEK/share FCF LTM per share EPS LTM *) Cash flow from operations less CAPEX and amortisation of leasing. Free cash flow (FCF)* per share and EPS
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Capital efficiency for return on investments CMD 2025 | CFO UPDATE 62 Average weighted, ROCE of 64% for a selection of core business units Disciplined investment allocation CAPEX for organic growth in the business units when; ➜ ROCE is solid ➜ Cash flow is steady ➜ Clear business case 0,00 1,00 2,00 3,00 4,00 5,00 6,00 7,00 8,00 9,00 10,00 0% 10% 20% 30% 40% 50% 60% CAPITAL TURNOVER EBITA% ROCE=50% ROCE=100% ROCE=200% Sdiptech’s core business units, EBITA % and capital turnover (a selection)* Note: Capital turnover = Sales/Avg (Fixed assets + net working capital), EBITA % = EBITA/Sales, ROCE = EBITA/Avg (Fixed assets + net working capital) * Graph containing business units acquired before 2024, excluding units with negative capital employed.
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Financing – financial headroom to deliver on the strategy CMD 2025 | CFO UPDATE Total financial headroom (cash flow + funding) will pave the way for ➜ Selective M&A ➜ Earn-out payments ➜ Return-focused CAPEX ➜ Amortisation of leases Illustrative financing bridge up until 2030 Note: Financial headroom: cash flow from operations + available funding headroom in existing facility Cash 2509 Cash flow from ops Funding headroom M&A CAPEX Leases
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Organic growth within core portfolio will remain key Strong cash flow and capital efficiency for improved leverage and ROCE A proven M&A model providing efficient funding and supporting returns Solid financial headroom to deliver on the strategy Sdiptech’s financial priorities – a clear path for reaching the financial targets 28 NOVEMBER 2025 64 To summarise CMD 2025 | CFO UPDATE
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28 NOVEMBER 2025 CAPITAL MARKETS DAY 2025 65 Summary of today Sdiptech’s focus areas going forward Well positioned within key infrastructure segment, driven by fundamental and sustainable growth trends Structural growth drivers Financial targets focused on total growth, ROCE and a robust balance sheet Clear path to the financial targets Based on comprehensive in-house sourcing and return-focused valuation principles Disciplined M&A agenda Strong core portfolio of high-quality companiesStrong core Proactive ownership and improved focus on ROCE for growthOrganic growth agenda
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28 NOVEMBER 2025 CAPITAL MARKETS DAY 2025 Thank you!
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Q&A