Sp Group A/S

Hi and good afternoon on behalf of Hans Christian Andersen Capital. I would like to welcome you all to this presentation of the report for Q2 and thus also first half of 2026 from SP Group that was published yesterday. My name is Rasmus Køyborg and I have the pleasure of welcoming CEO Lars Bering and CFO Allen Jeppesen. They promised to take us through the numbers and recent highlights, so a warm welcome to you. Thank you. Before I hand over, also a warm welcome to all those of you who signed up for today's presentation. You can, as usual, ask questions in the chat room below and I'll make sure to publish them and we will do a Q&A in the end of the presentation. And should you want to see the presentation again, it will be available afterwards on different platforms. With that, I will turn off my camera and I'll revert for the Q&A. And for now, I'll leave it to you, Lars and Allan.

Thank you very much, Lars Mus. And welcome to SP Group's presentation of the results of the first half year of 2026. My name is Lars Bering, and I'm Chief Executive Officer of SP Group.

Yeah, and I'm Allan Jeppesen, and I'm CFO of SP Group.

And together with our colleagues Soren Ulstrup, we make up the Executive Board of the Group. We will start with a short introduction of SP Group for those of you who might be listening in for the first time and then move on to a review of the first half year where we have set records in several ways. Allan and I will be sharing the presentation today and we will complement each other along the way. SP Group develops, manufactures and sells plastic solutions for a wide range of industries. Our focus is technical components, typically for single use in the healthcare sector, or plastic components that are built into our customers' products and used for many years. In the first half of 2026, 76% of the revenue came from customer-specific sub-supplier tasks, where the remaining 24% came from our own brands. We have a global setup, with 35 factories around the world and more than 3,000 employees. Finally, we are focused on increasing the share of recycled plastics in our production. We have reached 18% of the raw materials that we are using and we have a target of reaching 25% by 2030.

Yes, and as you can see on the right of the screen, our sales are spread across several product groups. 35% of the company revenue is generated within the healthcare product group, a product group that includes medical devices, packaging, as well as economic products. At 29% is Cleantech, which is the second largest product group and covers products within renewable energy, energy production, and insulation. Foodtech accounts for 14% and includes livestock, housing, ventilation, and measuring equipment, among other things. The remaining 22% of the products fall under the category Other, which comprises of maritime products, automotive, and products for the defense industry. We will return to the development within the four categories on the following slides.

Yes, an SP Group is organized into a number of independent units which own its customers and relationships and its technology. The light green units on the left hand side is our own products, including Ergomat, SP Medical and MedicoPak. On the right are the sub-supply units from injection molding at SP Molding and composites and polyurethanes from SP Tinby. The decentralized structure This ensures proximity to customers, fast decisions and a very good day-to-day agility. And then we work deliberately on creating synergies across the group, particularly within procurement, knowledge sharing and cross-selling.

With the addition of OGM this week, our global presence has been extended to the UK and we are now present in 14 countries. Of the 14 countries, we currently have production in 10. Production that spreads across 35 factories, as Lars also just mentioned. As you can see on the world map, the group sales are split with 10% in Asia, 16% in North and South America, 47% in Europe, excluding Denmark, and the remaining part, 27% in Denmark. We have created a robust global platform where the international spread provides a good basis for growth and reduces the dependencies on individual markets.

And then let's look at the highlights. First the second quarter and then the first half. It has gone really well. The second quarter of 2026 was record strong. We had a revenue growth of 44.6%, of which the organic growth was 29.4%. We realized an EBITDA margin at 20.3% and an EBT margin of 12.4%. For the first half of 2026 as a whole, revenue growth 32.9% of which organic growth accounted for 19.7% with an EBDA margin of 20.3% and an EBT margin of 12.7%. We have seen good growth coming from both our own products and from our customer specific supplier tasks. The integration We have expanded our MedScale device production in Poland so that we can keep the pace with demand from our customers. The integration of eDepot is proceeding as planned. It is the first time an acquired company in SP Group has interacted so quickly with virtually all companies in the Group, which is very pleasing. And then we have just announced the acquisition We are proud and pleased of the acquisition and look very much forward to welcoming OGM's management and talented employees into SP Group.

In connection with the acquisition of OGM, we upgraded our outlook for the full year 26. We now expect revenue growth in the level of 24 to 30%. We maintain our expectations on EBTA margin of 19 to 21% and an EBT margin of 11 to 13%.

Sales of own products rose 21.6% to 472 million Danish in the first half of 2026, which is a new record. There was a strong progress in sales of components for livestock, housing, ventilation, and in the ergonomics products from Ergomat, while the developments were more flat for MedicoPak's packaging products and for our guide wires. For MedicoPak, it was a significant customer that has chosen to phase out a product and leave the market altogether. The sales of guide wires are characterized by a greater focus on high-margin products while the capacity being utilized in full. For the sub-supplier tasks, we have also seen a good growth. We had a strong growth in the first half of 2026. The development is of course significantly affected by the addition of eDepot, but there was also a strong underlying growth in SP Group in general. We have sold sub-supplier tasks for 1,478,000,000, equivalent to a growth of 37%.

Developments in our product groups are shown on this slide. At the top, you see each of the product groups' share of the revenue in the first half of 26 and examples of products in the individual categories. Below each product group, you can see the development in revenue, where the first half of 25 is compared with the first half of 26. As the figures show, all four product groups developed positively in first half of 26. Healthcare grew 18% to 688 million and as mentioned earlier accounts for 35% of the revenue. In several respects the categories project driven and timing can affect individual quarters. We have had a strong intake of customers and projects in the healthcare area and the pipeline in this area is very strong. The other product categories grew between 37% and 61%. Cleantech with 40%, Foodtech with 61%, and Other with 37%. Driven by a good combination of the acquisition of eDepot and strong organic growth within the individual areas.

Yes, and then we come to OGM. The acquisition of OGM Moulding in the UK was announced Wednesday, August 19, and OGM has a production in Oxford and in South Wales with 190 employees that are working with injection moulding and assembly. They have a modern production setup serving customers within medical devices, diagnostics and safety equipment. The company is characterized by a very long-standing customer relationship where they are producing very complex products. Let me briefly go through the strategic rationale for the acquisition. First and foremost, it strengthens medical devices as a strategic growth area, one of SP's most important growth areas, and it supports also our one-stop Next, we gain box build as a new competence, sourcing, testing and assembly of electronic and metal components into plastic boxes that are produced at OGM, delivered, tested, fully packaged to the customer as a finished product. At the same time, OGM gives us a bridgehead into the UK, a well-established platform in a market where the group has not previously had production. This means local service for British customers at a time where many want production closer to their markets. The main factory in Oxford is close to the universities in Oxford, Cambridge and London, which gives access to a strong technology region with qualified labour and ongoing development projects. Finally, OGM's customers gain access to SP Group's global production setup, so OGM can follow the customers outside Great Britain when they're successful.

Yes, well, let me briefly run through the transaction. The fixed part of the purchase price amounts to 18 million pounds, approximately 158 million Danish kroner, on a cash and debt-free basis, and the amount was paid at the completion mid this week. In addition, there is an earn-out of up to 6 million pounds, approximately 53 million Danish kroner. For the seller to obtain this, OGM must meet certain earning expectation in the calendar year 27 and 28. OGM expects to achieve an EBITDA of 3.5 to 3.7 million in 27 and for its 25-26 fiscal year, which ended end of May this year, OGM reported an EBITDA of approximately 4.4 million pounds. If the earn-out is realized in full, this corresponds to an enterprise value to EBITDA of approximately 4.8 times. The acquisition is financed through an acquisition loan. And as a consequence, the net debt to EBITDA ratio measured as a net interest bearing debt to EBITDA has increased by slightly more than 0.1 times. Yes.

And as Allan mentioned, the EBITDA in the most recent financial year of OGM was 4.4 million and we expect 3.5 to 3.7 in 2027. This requires some explanation. OGM's major challenge in recent years has been to retain successful projects and tasks The customers are large international medical and technology companies that also have large demand outside the UK and would like to have production in areas like Eastern Europe, the United States or even in India. Some projects are scheduled to move away and therefore we expect the activity level to decline slightly However, we also know that many exciting new projects are coming into OGM, which makes us believe in a solid positive development for the years ahead. Then we come to Poland. As we previously have mentioned, we are working on an expansion in Poland for the medical device production and it's very well underway. We are converting a 7000 square meter building into medical device production with a focus on capacity, efficiency and a better use space. And we have finalized a new clean room of 1700 square meters. It was completed on August 7 and it's already in use. On the picture on the right side you can perhaps see some of the machines that are standing in the back and they are now running production. This investment is very important in order to deliver on agreements already entered and on the same time strengthens our position within the healthcare where it enables us to meet a rising demand.

Yes, let's look a little bit more at the figures and the financial results for the second quarter of 26, where revenue, EBITDA, EBIT and EBT all developed positively. Revenue growth was 44.6% in the second quarter of 26, which equals to a total of 984 million. The growth was both organic, 29.4% in the quarter, and driven by acquisition, which contributed with 15.2%. It should be noted that the basis for comparison is a weak quarter of 25, which amplifies the growth percentage into 2.26. EBITDA rose 59.9% to 200 million, equivalent to an EBITDA margin of 20.3%. EBIT increased 86.4% to 140 million. And EBT increased 91.9% to 122 million Danish kroners. On the next slide, we will look more closely on development in the first half year of 26. And let's start with the revenue, which in the first half of 26 was 1,950,000,000 DKK and a growth of 32.9%. We touched briefly on the positive development by product areas early. A development that for the half year was also driven by organic growth and growth from acquisitions. We note with great satisfaction that organic growth has driven around two-thirds of the growth of 32.9% achieved in this period, precisely 19.7% organic growth in the first half. Growth from acquisition accounted for 13.2%, which also means that eDepot is largely on plan. Looking at the development in operating earnings, EBITDA, we still see a positive trend where growth of 36.2% to 397 million compared with the year before. The EBITDA margin came to 20.3% for this first half, which is within the range announced for the full year and better than the same period last year in 2025. EBIT increased 45.4% to 280 million Danish kroner. Profit before tax increased 50.3% in the first half to 248 million, with an EBT margin of 12.7%. On this slide, at the top of the screen, you see the development in cash flows from operating activities. At the right you have earnings per share and at the bottom you see development in net interest bearing debt and equity. The strong results from operations is also reflected in the cash flows from operating activities, which is 291 million in the first half of 26, an improvement of 62 million compared with the same period last year. Earnings per share rose 55.1% to 16.49 Danish kroners. In 2025, our net interest-bearing debt increased as a natural result of the acquisition of Edebro end of 2025. When we look at the first half, we reduced the debt as expected by 119 million Danish kroners and end June we had a debt of 1.341 million. The net debt to EBITDA ratio measured as the net interest bearing debt related to EBITDA has thereby been reduced to 1.9 times against 2.4 at the end of 2025. The equity increased 91 million to 1.9 billion, so we continue to have a solid capital base.

Yes, but then let's look at a little longer period. SP Group has grown consistently since the financial crisis, both organically and through acquisitions. The average annual growth rate over this period has been 9.1% relative to the past 12 months revenue. We have completed more than 20 larger or smaller acquisitions and we have taken an active part in the consolidation of the plastics industry. We are convinced that this approach, a combination of organic growth and strategic acquisitions, will continue to be a central part of our growth strategy. Over the past 10 years, we have lifted the EBDA margin from 14% in 2016 to 24.4% for the past 12 months. An improvement of 6.4% EBDA growth in the first half of 2026 was 36.2% and EBD now amounts for 701 million measured over the past 12 months. The marketing improvement has been achieved through a focus on four drivers. First, an increased share of own products, which is very important. Here we are able to have a higher margin than we are on our sub-supplier tasks. Second, we have increased production in Eastern Europe, which strengthens our competitiveness. And third, we have increased the automation in our production. Fourth, which is relatively new, we are focused on getting a larger share of the value chain, where we take more processes in-house. As an example, we have now tool production with the acquisition of eDepot, and we have increased opportunities to build finished products with the acquisition of OGM. And we expect that all four drivers will continue to contribute positively to margin development going forward. The same picture applies to the EBT margin, which has been lifted from 8% in 2016 to 12.5% for the past 12 months, an improvement on 4.5 percentage points. EBT growth in the first half of 2026 was 50.3%, even stronger than the EBDA growth. And EBT amounts now for 428 million measured on a 12-month rolling basis. The margin improvement was driven by the same four factors, increased share of own products, a larger share of the value chain, increased production in Eastern Europe, and optimization. And our ambition is clear. We want to be our customers preferred supplier with a strong competitiveness and healthy earnings. That requires a good mix between sub-supplier tasks where we continuously improve our processes and our own products where we create innovation and we have high margins.

Well, here we have a combined overview of the financial ratios and key figures, several of which we have already touched on in the previous slides. As mentioned earlier, cash flow from operation was positive by 291 million in the first half of 26 and contributed significantly to the change in cash, which in the first half of 26 was positive by 54 million against a negative of 25 million last year in the same period, an improvement of 79 million. Our equity end of June was 1.9 billion And this equals to an equity ratio of 46% against the equity ratio and 25 of 45.3%. When we look at the outlook for 26, we have upgraded our outlook for the fiscal year 26 twice this summer. The first time was July 10th. On the basis of the first half development, we lifted and narrowed the expectation for revenue growth to 22 to 28%. The second time was Wednesday this week, when we upgraded again in connection with the acquisition of OGM. We therefore now expect revenue growth of 24 to 30%, equivalent to a revenue between 3.6 to 3.8 billion. Of this growth, 16 to 17% comes from acquisitions, and the remainder is organic. The margin expectations are unchanged, an EBITDA margin of 19 to 21% and an EBT margin of 11 to 13%. The geopolitical tensions and the conflict in the Middle East still plays a role. Our growth in the first half has been very strong and primarily driven by new projects across a large part of our business. Our order horizon is not long and there may be a minor element of stockpiling in Q2. We therefore take a cautious approach to guidance for the year of 26.

Yes, and then it is time to summarize. First half year of 2026 was record strong with revenue growth of 32.9% of which 19.7% was organic growth. We are seeing a good growth in both our own products and in our sub-supply tasks. With the acquisition of OGM Moulding, we gained access to a new market and we gained new customers in the United Kingdom. And we have upgraded the guidance twice and now we expect, as Allan just said, a growth of trade in a level of 24 to 30% with unchanged market expectations. The underlying business is very strong and SP Group is ready for continuous growth. Thank you for your attention. And now we are ready for questions.

Thank you very much, Lars and Allan. And I will just rejoin here with sound on camera. And yes, let's jump into some of those questions that came during your presentation. Go a few slides back. We do have a question on the outlook. It says here, if we bridge from the H1 revenue of 195 million Danish to the guided full year range, the second half looks materially slower than the first, even with the OGM added. Is this guidance built on a junior expectation of lower activity, or is there room in the range?

Well, as mentioned, we have chosen a cautious approach due to the geopolitical tensions we have seen in the first half of 26. We strongly believe that 24 to 30% is achievable.

Thank you and then a question also on the ambitions you have further out and actually think we have a slide here that could support this if you look at your ambitions for the period to 2030 and let me just find the question here again there so in financial year 2026 you're guiding for these 3.65 to 3.85 billion while your 2030 target still stands at 4.5 billion Looking at your current trajectory, it seems like that target will be hit in financial year 27 or latest in financial year 28, while the goal is for 2030. Will that figure be updated later?

When we set our targets towards 2030, They said we could we believe we could grow the business in the range six to nine percent annually and we might be able to do it faster if we were able to complete larger acquisitions. We have done so with with both IDEPO and with OGM and now yes as you say it looks like we are going towards this goal faster than expected. And when we get there, then we will of course set us some new high-level goals for the future. That is for sure.

Thank you. And then we'll move a little back here on the slides again to your EBITDA margin here. Because there's a question here that goes, EBITDA margin has come down a little in H1. 2026 at a level of around 20.3 versus the levels you entered 2025 at in Q4 2025, you were around 21.5% in EBITDA margin. Is it mixed effects and or has the Depot acquisition also been dilutive?

It's a mixed effect. We are in a situation now where the Subsupplier tasks are having a bigger share of the revenue and our own products has been reduced in the total volume and we do have a lower level on the sub-supplier work compared with our own products. It's completely natural and we of course will work hard to increase the share of our own products again while we on the same time also work hard to improve the overall business and we improve our margins.

Thank you and a further follow up on the EBITDA margin. How much operational leverage is there in the coming years? Can you strengthen your margin even more than the 22% in the future and which levers are needed then?

The margin levels is highly as I said before highly affected of the product mix especially if we were able to increase the share of our own products then we are also able to increase the margin levels. Very much of our sub-supplier work is very competitive and here we work really really hard to become more efficient in all our processes in our purchasing every single day. On the same time we are also in a world where This business is not something you just are given. This is where we are competing hard against other competitors in the business.

Thank you. And then a couple of questions on the OGM moulding acquisition. There's a question here. What is the earn-out structure tied to? Is that to EBITDA, EBT or revenue in 27 and 28? And how ambitious are the targets that would trigger the full payout?

Well, it's related to EBDA, the operating profit, and then the targets are ambitious and the team of OGM needs to achieve a level of operating income that they have done in the past and actually also a bit more. So they are ambitious.

Thank you. And then a more general question. Could you provide a little more insight into the UK market? Can we take this as a sign that you expect your next acquisitions to be more likely in the UK market? And what percentage of OJ's revenue comes from the outside of the UK?

We can start with the last thing first. OGM has limited sales outside the UK and the sales that they have outside UK is for their customers in the UK. They have factories outside UK. We think that the UK is a very interesting market where there definitely are possibilities in the future, but not Having said that it is automatically becoming the new place for the next acquisition, we have a good pipeline of interesting targets and we will now take time and start working with this again for the future.

Thank you. And then a question related to the healthcare segment. I'll just move back here. And the question goes here. Healthcare grew only 0.6% in Q1, but 18%, as we can see here on first half, which implies around 40% growth in Q2 alone. What has turned out around so markedly and is that a sustainable level into second half of 26?

When you compare with the figures from the different quarters then you must remember that quarter one last year was actually very very strong and at the time the best quarter ever. where quarter two was very poor, especially on the healthcare part where we saw some projects had been postponed. It was a time when we learned for the first time a lot about tariffs and trade wars. So you would say on an overall basis that the healthcare part has grown as the rest in our organic growth. We have had an organic growth on the first half of 19.7% and here we have grown in the first half with 18% on the healthcare part.

Thank you. And then a question on geopolitics. How do geopolitics and the conflict in the Middle East affect you today compared with back in April?

To a great extent. Today we have, I would say, more certainty that we can get the materials that we need. We have seen a stabilization of prices that has flattened out and we are certain that we can continue if nothing major happens. But we fear that the situation could escalate and then we will be in a new situation for sure.

Good and then a follow-up here on the ambitions or perhaps more clarifying because it was here. Was the six to nine percent CAGR for FY 2030 goal, was that purely organic?

We stated at the time that it was organic growth with minor acquisitions. If we were able to do larger acquisitions we could do more and I would characterize both OGM and eDepot as larger acquisitions compared to what we have done in the past in SP Group.

Very good and there are no further questions so we're about to end the presentation here. So thank you very much for listening in and thank you Lars and Allan for joining us here today.

Thank you very much, Rasmus, and thank you to all of you who has been taking time to listen.

Thank you. Thank you and have a nice weekend. Thank you.