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Susanna Zethelius CFO Bengt Lejdström President & CEO Interim Report First Quarter January – March 2025 Creating sustainable, efficient and safe societies
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41 Business units Sources: Sdiptech Financial reports, LTM Q1 2025 2,185 Employees Q1 2025 2 24% Reduced CO2e/turnover from base year 2021 34% CAGR Adj. EBITA (2017 – Q4 2024) Key drivers ▪ Thrive for more sustainable, efficient and safe societies ▪ Aging infrastructure assets ▪ Increasing consumption ▪ Increasing regulations Well positioned for sustained good demand and stable org. growth Creating sustainable, efficient and safe societies An infrastructure technology group Sdiptech in short Sdiptech’s infrastructure segments Energy & Electrification Water & Bioeconomy Safety & Security Supply Chain & Transportation
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3 Summary of the first quarter Highlights Continued demand ▪ Net sales increased with 4% ▪ -4% organic, +1% currency effects and +3% acquired growth ▪ Ongoing global turbulence has created a cautious, wait-and-see stance ▪ Adjusted EBITA unchanged ▪ -8% organic, +1% currency effects and +7% acquired growth ▪ Negative effects from new regulation in UK regarding increased minimum wages ▪ Stable 18.9% (19.6) profit margin Solid cash flow generation ▪ SEK 170 in cash flow ▪ 74% in cash generation Acquisitions ▪ Phase 3 in the UK ▪ Approx. GBP 3 million in annual EBIT ▪ Supplai in the NL ▪ A small add-on acquisition to Certus Sources: Sdiptech Financial reports, LTM Q1 2025
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0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28% 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 14.4% 2019 16.6% 2020 18.7% 2021 19.1% 2022 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 MSEK 3,505 4,581 4,843 5,050 2,719 5,166 LTM Q1 2025 5,213 19.4% 5,132 4 Net Sales Adj. EBITA margin Quarter Net sales increased by 4% and -4% organic ▪ Impact from recent escalation of trade barriers and geopolitical unrest, particularly in Supply Chain & Transportation ▪ Exposure to the US is limited, approx. 4% of sales ▪ Close dialogue with these units Adj. EBITA margin 18.9% (19.6) ▪ Focused on initiatives linked to profitability Over time ▪ CAGR 24% between 2017 and Q1-25 Net sales & Adj. EBITA margin Sources: Sdiptech Financial reports, LTM Q1 2025. Note that numbers refer to continuing operations from 2023 and onwards. 18% 0% 0% 11% 4% 0% Organic growth 3%
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5 Geographical distribution of sales Sources: Sdiptech Financial reports, LTM Q1 2025 Sweden United Kingdom USA Norway Italy Other, Europe Other, rest of the world 4.9% 16.7% 45.2% 4.3% 5.5% 16.4% 6.9% Proprietary products Installation Service 0.0% Distribution 62.4%14.3% 23.3% Turnover by type of revenue Sales split
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6 Quarter ▪ Adj. EBITA similar levels as Q1-24 ▪ Acquisitions contributed positive ▪ -8% organic growth, excl currency ▪ Some positive contribution mainly from E&E, and SC&T ▪ Some negative contribution mainly from W&B ▪ New legislation in the UK led to wage increases Over time ▪ CAGR 34% between 2017 and Q1-25 262 347 509 671 920 968 0 300 600 900 1,200 MSEK 2019 2020 2021 2022 2023 LTM Q1 2024 LTM Q2 2024 LTM Q3 2024 LTM Q4 2024 LTM Q1 2025 1,007 1,006 1,010 1,009 Adj. EBITA Adj. EBITA Sources: Sdiptech Financial reports, LTM Q1 2025. Note that numbers refer to continuing operations from 2023 and onwards. Organic growth 13% -2% -10% 8% 11% 9% -7%
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Business areas Q1 7 Supply Chain & Transportation Energy & Electrification EVP & Head of: Anders Mattson Safety & Security Head of: Johan LahiriHead of: Amanda Berninger Water & Bioeconomy Head of: Sara Ström 41% 29% 20% 10% Supply chain & Transportation Energy & Electrification Water & Bioeconomy Safety & Security Net sales 34% 31% 22% 13% Supply chain & Transportation Energy & Electrification Water & Bioeconomy Safety & Security Adj. EBITA Sources: Sdiptech Financial reports, LTM Q1 2025.
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Quarter Net sales decreased with 2% to SEK 541m (553) ▪ Uncertainty in the world around us had a small negative effect on sales, e.g., postponed orders ▪ Underlying demand fundamentally stable Adj. EBITA increased with 2% to SEK 93m (91) ▪ Good demand primarily in units with efficient and safe transport solutions Adj. EBITA margin at 17.2% (16.5) 8 Supply Chain & Transportation Sources: Sdiptech Financial reports, LTM Q1 2025. 367 452 450 562 553 610 539 569 541 20% Q2-23 17% Q3-23 19% Q4-23 17% Q1-24 20% Q2-24 18% Q3-24 20% Q4-24 17% Q1-25 17% Q1-23 Adj. EBITA margin Net Sales
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Quarter Net sales increased with 6% to SEK 389m (365) ▪ Several units performed well, supported by underlying trends in energy efficiency and electrification ▪ Mild winter compared to the previous year affected single units negatively Adj. EBITA increased with 11% to SEK 83m (75) ▪ Growth mainly in units with higher profit margins than average Adj. EBITA margin at 21.3% (20.5) 9 Energy & Electrification Sources: Sdiptech Financial reports, LTM Q1 2025. 326 330 320 375 365 339 317 340 389 22% Q2-23 23% Q3-23 21% Q4-23 21% Q1-24 21% Q2-24 22% Q3-24 21% Q4-24 21% Q1-25Q1-23 23% Adj. EBITA margin Net Sales
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10 Water & Bioeconomy Sources: Sdiptech Financial reports, LTM Q1 2025. 211 237 245 257 262 282 256 268 261 22% Q2-23 27% Q3-23 23% Q4-23 29% Q1-24 22% Q2-24 23% Q3-24 22% Q4-24 23% Q1-25Q1-23 24% Adj. EBITA margin Net Sales Quarter Net sales similar levels as previous year SEK 261m (262) ▪ Acquisitions contributed Adj. EBITA decreased with 19% to SEK 61m (75) ▪ Some units had a challenging quarter with tough comparable numbers ▪ New legislation in the UK led to wage increases ▪ increased costs gradually to be passed on to customers, will take time in some units with longer contracts Adj. EBITA margin at 23.3% (28.5) ▪ Resulted in a lower margin compared to the unusually high level in Q1-24
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11 Safety & Security Sources: Sdiptech Financial reports, LTM Q1 2025. 117 111 114 107 103 106 98 158 139 26% Q2-23 27% Q3-23 27% Q4-23 28% Q1-24 28% Q2-24 23% Q3-24 25% Q4-24 25% Q1-25Q1-23 28% Adj. EBITA margin Net Sales Quarter Net sales increased with 35% to SEK 139m (103) ▪ Acquisitions a large contributor ▪ Continued focus on safety has led to good demand especially within fire protection and personal safety units Adj. EBITA increased with 22% to SEK 35m (29) ▪ Some units affected by new legislation in the UK Adj. EBITA margin at 25.2% (27.8) ▪ Significant growth in a few units, although with lower-than-average profit margins
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70 89 313 451 385 565 628 823 822 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 83.0% LTM Q1-25 Cash flow from operations Cash conversion Quarter ▪ Cash flow from operations amounted to MSEK 170, corresponding to 74% cash conversion LTM Q1-25 ▪ Cash flow from operations amounted to MSEK 822, corresponding to 83% cash conversion Cash flow & Cash conversion Sources: Sdiptech Financial reports, LTM Q1 2025. Note that numbers refer to continuing operations from 2023 and onwards.
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Jan-Mar 2025 Jan-Mar 20241 LTM Mar 2025 Jan-Dec 2024 Profit after tax, (SEK million) 74 110 399 436 Earnings per ordinary share after dilution (SEK) 1.83 2.80 10.05 11.00 Financial net debt/Adjusted EBITDA, multiple 2.25 2.17 2.25 2.25 Net debt/Adjusted EBITDA, multiple 3.31 3.33 3.31 3.30 Additional metrics Sources: Sdiptech Financial reports, LTM Q1 2025. Note that numbers refer to continuing operations. 1) Comparative figures have been updated for comparability as the Group’s elevator operations from Q3 2024 are reported as discontinued operations according to IFRS 5
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Jan-Mar 2025 Jan-Mar 20241 LTM Mar 2025 Jan-Dec 2024 Profit after tax, (SEK million) 74 110 399 436 Earnings per ordinary share after dilution (SEK) 1.83 2.80 10.05 11.00 Financial net debt/Adjusted EBITDA, multiple 2.25 2.17 2.25 2.25 Net debt/Adjusted EBITDA, multiple 3.31 3.33 3.31 3.30 Additional metrics Sources: Sdiptech Financial reports, LTM Q1 2025. Note that numbers refer to continuing operations. 1) Comparative figures have been updated for comparability as the Group’s elevator operations from Q3 2024 are reported as discontinued operations according to IFRS 5
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Return on capital employed Sources: Sdiptech Financial reports, LTM Q1 2025. Note that numbers refer to continuing operations. 12.1% 2020 10.0% 2021 12.2% 2022 13.0% 2023 12.6% 2024 12.5% LTM Q1 2,726 4,144 5,996 7,414 8,257 8,358 Return on capital employed Capital employed Quarter ▪ ROCE decreased slightly compared to Q1-24, primarily due to a modest increased capital employed due to acquisitions Business units ▪ Average ROCE of 56% for the underlying business
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▪ Acquisition pipeline solid, but, important to balance pace of acquisitions against external factors and uncertainties ▪ Prioritised geographies: ▪ UK ▪ Italy ▪ Nordics ▪ NL ▪ Germany ▪ Financial position is good ▪ Renewed and expanded our bank financing ▪ 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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17 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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18 Key takeaways Sources: Sdiptech Financial reports, LTM Q1 2025 ▪ Continued good operational cash flow ▪ Positive contributions from acquisitions ▪ Good development in several business units with strong underlying trends and drivers, while as some business units have had a softer development ▪ Full focus on profitability, efficiency and selective growth going forward ▪ Cost increases in the UK will continue during Q2 ▪ Several business units working to adapt operations and cost levels based on prevailing market situation for respective operations ▪ Review of portfolio based on today's strict criteria has been carried out ▪ Separate plans for those companies that do not fully meet these criteria – possible divestments
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19 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 21 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, SCA, Sandvik, KPMG M.Sc. Business Administration Örebro University
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Ownership 31 March 2025 Sources: Modular Finance Owner SDIP A SDIP B PREF CAPITAL % VOTES % Vulcan Value Partners, LLC 3,915,639 9.85% 7.45% Handelsbanken Fonder 3,774,206 9.50% 7.18% Swedbank Robur Fonder 2,239,860 5.64% 4.26% Cliens Fonder 2,089,035 5.26% 3.97% Ashkan Pouya 1,424,000 592,967 5.08% 28.22% Avanza Pension 1,714,704 166,064 4.73% 3.58% SEB Funds 1,804,397 4.54% 3.43% Vanguard 1,394,378 3.51% 2.65% Nordnet Pensionsförsäkring 1,262,388 54,566 3.31% 2.51% Invesco 921,670 2.32% 1.75% Case Kapitalförvaltning 664,368 1.67% 1.26% Grandeur Peak Global Advisors, LLC 612,367 1.54% 1.17% Länsförsäkringar Fonder 559,836 1.41% 1.07% Investering & Tryghed A/S 515,738 1.30% 0.98% FORUM Family Office GmbH 501,444 1.26% 0.95% Övriga 14,060,141 1,529,370 39,23% 29,66 Total 1,424,000 36,567,938 1,750,000 100.00% 100.00% 22
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23 MSEK (Continued operations) 2025 Q1 2024 Q1 2025 LTM 2024 Full Year Net Sales 1,330 1,283 5,213 5,166 Operational costs -1,079 -1,031 -4,205 -4,156 Profit from operations, adjusted EBITA 251 252 1,009 1,010 Acquisition costs -8 -7 -18 -17 Direct costs related to acquisitions/divestments Earn-out debt adjustments/divestments - - 7 7 Adjustment of debt related to conditional considerations (“earn-out”) for acquisitions, booked as other revenue or external cost. Add back amortisations non acquisition 13 11 44 42 Add back amortisation of intangible non-current asset non acquisition related EBITA 255 255 1,041 1,041 Amortisations & write-downs of intangible fixed assets -41 -35 -152 -146 EBIT 214 221 888 895 Net financial income/expense -48 -45 -189 -186 Currency effects -25 3 -36 -8 Discounted interest -18 -17 -67 -66 Discounted interest on conditional considerations (“earn-out”) for acquisitions and discounted interest for leases according to IFRS 16 EBT 123 162 597 635 Tax -50 -52 -198 -200 Net profit 74 110 399 436 Discontinued operations -2 -3 -78 -79 Adjusted EBITA → Net profit