Slides
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THIS IS TROAX »TROAX GROUP« THIRD QUARTER 2025 PRESENTATION 29th of October, 2025 MARTIN NYSTRÖM, PRESIDENT AND CEO ANDERS EKLÖF, CFO
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Summary Q3, 2025 Strong in APAC, delayed recovery in Europe, and hesitant Americas • APAC continued strongly – significant growth in all countries • Europe largely continued as in Q2 - overall slow and waiting for recovery • Some early signs of recovery for the warehousing segment • Somewhat lower demand in automotive • Still slow in construction • The order intake is negatively impacted by ~3M due to cutoff effects from the factory transfer from Poland to Sweden • Americas continued to decline – higher quoting activity but customers hesitate to make decisions Low volumes, production transfer and operational issues in US lowers profitability • Overall acceptable gross margin despite volume drop, factory transfer, and operational challenges in North America • The temporary effect from the factory move from Poland to Sweden diluted the EBITA by approximately ~100 bps • Delayed pricing implementation in Americas diluted the EBITA-margin by ~100 bps • The cost reduction program initiated in Q2 delivers as planned – sales and admin costs are starting to reduce underlyingly Strong cash flow • Continued discipline for inventory management, accounts receivables, and accounts payables • Our balance sheet continues to enable growth investments Overall solid progress on strategic priorities -7% Order intake growth 16.1% EBITA margin (excl. one-off items) 1.0 Net debt / EBITDA
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New financial targets for 2030 Sales growth Profitability Capital structure Dividend policy 20% over the cycle Adjusted EBITA margin PREVIOUS TARGETS > Market growth growth through the cycle <2,5x Net debt to EBITDA 50% Pay-out ratio NEW FINANCIAL TARGETS Sales of 550 MEUR (2030) - corresponding to 15% sales growth (CAGR) 2025 net sales as baseline At least 20% over the cycle Adjusted EBITA margin <2.5x Net Debt to EBITDA over time Interval 40-60% Pay-out ratio of adjusted Earnings Per Share (EPS) Capital markets day 5th November will provide additional insights
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Market development Q3 (Order intake, YoY) Northern Europe Americas Share of sales (2024) Automotive ~15% Warehouse ~35% Construction ~10% Process ~10% Other ~30% APAC 16% 5% Total 100% -5% to 5%< -5% >5% Southern Europe 79% -7% -26% 66% -4% OI change (YoY) Total -7%
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Order intake development 20-Q3 21-Q3 22-Q3 23-Q3 67,0 24-Q3 24-Q4 25-Q1 25-Q2 62,2 25-Q3 -7% Order intake by quarter (MEUR) Bridge Order intake (MEUR) 62.2 (-7%) 24-Q3 Organic Structure FX 25-Q3 67,0 62,2 OI bridge -7% -6% +0% -1% NOTE: One-off impact from factory transfer of ~3MEUR
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Net sales development 20-Q3 21-Q3 22-Q3 23-Q3 69,0 24-Q3 24-Q4 25-Q1 25-Q2 64,2 25-Q2 -7% Sales by quarter (MEUR) Bridge Sales (MEUR) 64.2 (-7%) 24-Q3 Organic Structure FX 25-Q3 69,0 -4,4 0,5 -0,9 64,2 -7% -6% +0% -1%
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Adj. EBITA margin (%) 16.1% • Sequential improvement to H1 • Lower volumes in EMEA and Americas put pressure to the EBITA-margin • Factory transfer in Europe diluted the EBITA with ~100 bps • Delayed pricing adjustments in Americas diluted the EBITA with ~100 bps • High sales and admin costs in relation to sales, underlyingly decreasing EBITA (adj) development 0 5 10 15 20 25 0 5 10 15 20 20-Q3 21-Q3 22-Q3 23-Q3 13,6 19,7 24-Q3 17,2 24-Q4 14,0 25-Q1 14,3 25-Q2 10,3 16,1 25-Q3
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Operating cash flow development • Strong cash flow generated from operations • Cash conversion rate of 122% Free operating cash flow 12.6 MEUR 0 20 40 60 80 100 120 140 160 0 5 10 15 20 25 20-Q3 21-Q3 22-Q3 23-Q3 24-Q3 24-Q4 25-Q1 25-Q2 12,6 25-Q3 Operating cash flow (MEUR) R3 Cash conversion % 122 101
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Net debt development (excl. IFRS16) 40 60 80 100 120 140 160 180 200 220 0,0 0,5 1,0 1,5 2,0 2,5 20 3,5 4,0 4,5 5,0 3,0 20-Q4 0,6 21-Q4 0,4 22-Q4 0,7 23-Q4 0,7 24-Q4 1,0 25-Q3 1,0 Financial net debt Net debt/EBITDA Financial Net debt / EBITDA 1.0 (R12) • Net debt kept stable and well below target • Significant fire power for acquisitions • Market for acquisitions is becoming somewhat more active Target: Net debt/EBITDA <2.5
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Financial summary, Q3 2025 KEY FINANCIALS (MEUR) Q3 2024 Q3 2025 Order intake 67.0 62.2 Sales 69.0 64.2 Adj. EBITA 13.6 10.3 Adj. EBITA (%) 19.7% 16.1% Net debt / EBITDA 0.9 1.0 EPS (adjusted) 0.16 0.12 GROWTH (YoY) OI Sales Organic -6 -6 Structure +/-0 +/-0 Organic + structure -6% -6% Currency -1 -1 Total -7% -7%
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Summary Q3, 2025 Strong in APAC, delayed recovery in Europe, and hesitant Americas • APAC continued strongly – significant growth in all countries • Europe largely continued as in Q2 - overall slow and waiting for recovery • Some early signs of recovery for the warehousing segment • Somewhat lower demand in automotive • Still slow in construction • The order intake is negatively impacted by ~3M due to cutoff effects from the factory transfer from Poland to Sweden • Americas continued to decline – higher quoting activity but customers hesitate to make decisions Low volumes, production transfer and operational issues in US lowers profitability • Overall acceptable gross margin despite volume drop, factory transfer, and operational challenges in North America • The temporary effect from the factory move from Poland to Sweden diluted the EBITA by approximately ~100 bps • Delayed pricing implementation in Americas diluted the EBITA-margin by ~100 bps • The cost reduction program initiated in Q2 delivers as planned – sales and admin costs are starting to reduce underlyingly Strong cash flow • Continued discipline for inventory management, accounts receivables, and accounts payables • Our balance sheet continues to enable growth investments Overall solid progress on strategic priorities -7% Order intake growth 16.1% EBITA margin (excl. one-off items) 1.0 Net debt / EBITDA
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Troax Group Capital Markets Day 2025 – November 5th • Presentation of our business and future ambitions • New financial targets • Meet group management members • Factory tour and product • Q&A • When: 5 November 2025, 12-16 • Where: Hillerstorp, Sweden • More information available @ troax.com