Sp Group A/S

The Q1 2025 report from SP Group that was published yesterday. My name is Rasmus Køyborg and I have the pleasure of welcoming both CEO Lars Behring and CFO Tille Keilhoff. They promised to take us through the quarterly numbers here, the recent highlights. So a warm welcome to you two. Thank you. And before I hand over, also a warm welcome to all of those of you who signed up for today's presentation. As usually, you can ask your questions in the chat room. You can either do it in English or you can do it in Danish and we'll help with the translation. And should you miss anything, we will record the presentation here and publish it on different platforms afterwards. But with that, I'll leave it to you, Lars and Tilde.

Thank you very much, Rasmus. And first of all, thank you very much to all of you listening in. We'll start with an ultra short intro, but as always, if anyone behind the screen wants to hear more about SP Group and what we do, please feel free to reach out. We are always available for a call or a Teams meeting. We are a global manufacturer of plastic solutions with 31 factories around the world. We have 2,400 employees. We have increased the amount of employees a little bit since New Year, and this is mainly in the United States. Our revenue comes from being a sub-supply of plastic parts. That is 71% of our revenue in the first quarter. And then we have our own brands, a number of niche products within the plastics industry that goes for 29% of the revenue in the first quarter. We group our products in healthcare, clean tech, food tech and others. And especially in the first quarter here, we have had a good increase in the healthcare part, which I'll come back to later. If you take the highlights, please change Rasmus, for the first quarter, We have had a strong growth, especially within the health care. The growth has been both in the sub supplier business that we have, but also in our own branch. In fact, the first quarter has been record high in revenue and record high on the bottom line. So all in all, we are very happy with this first quarter. However, we have also had a lot of discussions with our customers about tariffs, trade wars and the uncertainty related to all of this. We see that there is a risk of customers pulling the brakes a little bit and that could have an influence in the coming months. We are in a very close dialogue with all our customers about making sure that we are producing their parts in the right location. So we avoid tariffs. But as everyone probably just have seen on the news right now, it can change rapidly the picture that we are looking into. Since we were here the last time, we have started up a share buyback program. We have started a 40 million Danish crown share buyback program in order to reduce the share capital. And if we go to the figures, we had 8.8% increase in revenue from 723 to 786 millions in first quarter. We realized an EBDA at 166 millions, which is 12% more than same time last year. Depreciations were kept at the same level, and that resulted in an EBIT at 117 million, which is an increase on almost 19%. The sales of our own products increased 10% to 226 million, which was an all time high in the first quarter for our own products. And the reason for me mentioning the own products is that they are very important for us because we are able to have margins that are better than being a sub supplier on these types of products. So they are very important for us and it's very important that we can grow these own products a little bit faster than the whole business in average. That was. Yes, that was the right one. Thank you, Rasmus. This revenue led to a profit before tax on a 101 million Danish, which is 19.2% more than same time last year. It is for the first time we have had earnings before tax at this level above 100 million. So we are very, very pleased with this. It gave earnings per share in the level of 6.51. an increase of 19%, and we have been able to reduce the debt to 764 million. The equity grew 69 million to the level 1,766,000,000. So all in all, a very strong and nice quarter for us. Our biggest investment in 2024 and so far also in 2025 is going really well. We have started up a new injection molding plant in Peachtree City and just outside Atlanta, which now is in operation. We have 14 injection molding machines running. We have 40 employees. We have passed the ISO certification for medical production. We have established 1000 square meter class eight clean for medical device production. And we see possibilities for maintaining a very strong growth for production of components for the healthcare industry. Until now and in the coming months, we have focused a lot starting up the company SP Meditech, which is focusing solely on components for medical devices. Later this year, we will also start up with SP Moulding, focusing on technical parts for the broader industry. But all in all, this has been a very big part of the investments that we have done last year and also the first quarter this year. So we are very pleased that it runs well and follows the schedule. When it comes to our own products, as I mentioned before, we have had a nice increase. And as you can see here on the graph, 226 best first quarter ever. And this was realized by selling more guide wires from SP Medical, more wires from MedicoPark and last but not least, more products for industrial work environments from Ergomats. And all of these were in the healthcare sector and has contributed a lot to the good increase in the industries, the healthcare industry that we focus on. However, we have also had a very nice growth for the sub-supplier business for the healthcare industry, where we are producing plastic components for medical devices. So in first, we were able to increase the health care part of our revenue from 280 million to 335, 17.1%. On the other hand, it was more slow on the cleantech side, where we saw some stopping in the demand we had we have had a lot of new parts coming in but we have also seen lack of demands in other places so it's a blurry picture but all in all basically on the same level as last year the food tech was a little bit Going backwards, on the other hand, the group, the rest, which we call other, had a nice increase, mainly due to some very big projects within satellite communication, which were delivered in Q1, and also some nice project orders on furniture. Then we come to you, Tilde.

Yes. As Lars already explained, we had a very nice Q1. The top line was up by 8.8% to 786. The EBITDA was up by 12% to 166. We had an EBIT on 117. And then we have earnings before tax on 101 million. The earning per share was 6.5. It's increased on 19%. If you look at the cash flow, then cash flow from operation was 131. We used 58 million for investments. That's a lot of investments in the US plant. And then we had 107 for paying up debt and also buying back shares. The net interest bearing debt was 764. It has a gearing at 1.3. And it's also worth mentioning that here in Q2, we paid dividend to all our shareholders for 50 million. And if you take the next one. The light blue that shows the last 12 months, we almost had a revenue on 3 billion and Historically, the growth has been driven by acquisition and organic growth. EBITDA and EBITDA margin performance. The last 12 months, the EBITDA was 606. It's the first time that it's above 600. The increase is mainly driven by more self-owned products and also better use of our capacity. Earnings before tax in the last 12 months was 361. Here it's the same story that the increase during the years that have been due to increased sales of own products and also capacity, better use of capacity.