Idun Industrier AB (publ)

Hello and welcome to the conference call. My name is Carl Korsiaden and I work as an equity research analyst here at the D&B Carnegie. With me today I have the management team here from Idun Industries who is here to talk about their third quarter of 2025. I would like to remind you just that If you're listening in, we have a chat function, so if you have any questions, please feel free to type them there in the chat, and I will then read out the questions here in the room to the management. With that said, I'll leave the word over to you.

Welcome to this third quarter presentation with Idon. And as we have some shareholders that do not understand Swedish and also some potential shareholders, we will for the first time then conduct this presentation in English. And I will start out with some repetition about Eden Industrier, who we are. So Eden Industrier, we are an industrial group of companies consisting of 18 rather independent group companies. And our net sales is about 2.2 billion Swedish SEK and operating profit slightly more than 300 million Swedish kronor. If we look geographically, Eden is mainly a Swedish or Nordic company. All of our 18 group companies have their base in Sweden and some three quarters of sales is generated in Sweden. If you look slightly broader, more than 90 percent of sales is generated in the Nordic countries. But we do, of course, have import export and we have subsidiaries in, for example, also Norway, Finland and all the three Baltic countries. If we look at our sales and profit, roughly 60% is in the business area manufacturing and 40% in the business area service and maintenance. So we divide our group companies into those two business areas. As an investor, IDON invests in market leading business to business companies and it's in manufacturing, industrial trade and industrial services and the companies with strong market positions in their respective areas. One more area where Eden stands out has to do with the pilot school, where we use it in a very consistent, even dogmatic way. So from the board of directors, where everybody's a shareholder of Eden Industry, to us working in the mother company, where all of us have the majority of our private capital invested in Eden shares, And then in all 18 group companies, without exception, we have management ownership in their respective group company. So in terms of alignment of interest from you as an external shareholders down to all group companies in Eden, there is actually a very good, similar interest all the way. since the first investment in 2015 we have made slightly more than 30 investments both in group companies and then some add-on acquisitions on average that means two to four investments per year and you if you look at the curve here you can even graphically see that sometimes the growth is faster and sometimes it's slightly slower but on average between 2018 and 2024 the average growth rate in EBITDA has been actually 30%. That is nothing that we guarantee, but one of our financial objectives is to grow on average 15% per year EBITDA and that is something we are convinced that we will be able to do over a cycle. Yes, over to you, Oskar.

Thanks, Henrik. In the quarter, both sales and EBITDA grew and the business area manufacturing maintains sales and increased EBITDA both organic and through acquisitions and mainly from Finteragro Skog. Meanwhile, the business area service and maintenance saw a drop both in sales and EBITDA. For the group, sales is up 4.5% and EBITDA is up by 5.6%. Although organic sales is down 2.2% and for EBITDA it's down by 9.2%. As mentioned, business area manufacturing sales are maintained and organic EBITDA growth by 3%. Barem and Interagroskog contribute to both sales and EBITDA. In the quarter over 10 million EBITDA plus from mainly interagro-skog since Barem had a neutral result due to seasonal variation in the quarter. Within service and maintenance, we have a drop of 5% or 10 to 11 million SEK in revenue and EBITDA is down by 8 million. Several companies showed or delivered slightly weaker earnings and including Ståtthöga Emma Teknik, active within Heavy industrial maintenance, Elema miljöteknik that offers measurement for air emission control and Triton valsteknik that manufactures and services roles for the process industry. Gross margin improved from 58.5% to 58.7%. And if we would exclude Inter Agro Skog that was added in the quarter for the first time and that has a lower gross margin than the rest of the group due to trading, we would actually have reached 59% gross margin for the quarter compared to 58.5% last year. And if you're looking at the last 12 months, we continue to strengthen the gross margin. It's now in September 2025, 60.6% compared to 60% in September 2024. Other external costs decreased in the quarter. Meanwhile, personal costs continued to increase in the quarter and where we saw organic drop in sales. To sum up, sales up 4.5% to 521 million and EBITDA is up by 5.6% to 74 million. The EBITDA margin for the quarter is now 14.1 compared to 14% last year. And looking at the last 12 months, revenue is up 3.7% and 1.3% organic. And EBITDA is up corresponding 3.7% and organic 0.2%. Cash flow from operations amounted to 41 million compared to 44 million last year and was impacted by a temporary increase in working capital mainly due to vacation payouts in the summer period. Also glad to see that earnings per share adjusted for goodwill continue to increase from 2.9 Swedish kronor to 3.6. Here we see the corresponding charts for the business areas and in manufacturing we continue to see growth both in sales and earnings driven by organic development and as well as acquisition from both Barem and Interagro Skog. In total, the increase in EBITDA was 12 million SEK and where plus 10 million came from Interagro Skog in the quarter and the rest from the other companies. And the business area delivered a strong EBITDA margin of 16.5% compared to 14.1 at the third quarter last year. Turning to service and maintenance, we saw organic decline in sales or revenue by around 5%, from 204 million to 193 million. However, the acquisition from Prestec added another 4 million in sales and around half a million in EBITDA in the quarter. The gross margin was strengthened from around 63% in the quarter to 65% within service and maintenance, but the gross margin expansion wasn't fully compensating the operation expenses that has increased in the quarter with around 6 million. As a result, we see lower EBITDA margin in the quarter and the EBITDA going from 34 million to 26 million. Looking at the year to date, we see a EBITDA margin of 14.9% for service and maintenance. And for manufacturing, we have a EBITDA margin year to date of 15.7%. Regarding cash generation, cash generation continue and remains in solid line with the historical performance. It was slightly lower than last year and mainly due to increased working capital and some capex. For example, we had a panel bending machine investment in Kulina products in the quarter.