Idun Industrier AB (publ)

Hello and welcome to Idun Industries conference call for the fourth report of 2025. My name is Carl Korsheden and I work here as an equity research analyst at the DNB Carnegie with a focus on these more acquisition driven companies. With me here in the studio I have the CEO and CFO of Idun which will talk a little bit about the quarter and then we will follow up with a Q&A session in during which you are highly encouraged to participate we have a chat function so if you type your questions there i can read them up here in the studio to to the management team uh yeah so with that i hand over to you and then fourth quarter

So welcome to the presentation of the fourth quarter. I will start with a brief introduction or repetition, if you will, of Eden Industriet, who we are. So we are an industrial group of company with a turnover of some 2.3 billion Swedish and Ebitda slightly above 300 million. Eden is primarily a Swedish or Nordic company. Three quarters of sales is generated in Sweden and more than 90% in the Nordic countries. And we do have subsidiaries in Norway, Finland, Denmark and all three Baltic countries. We consist of two business areas manufacturing and service and maintenance and we have 20 group companies our companies we invest in manufacturing industrial trading companies and industrial services companies and if there is one thing also to remember about eden it's that we really use the the pilot school we have in the board of directors of eden Everyone is an owner, shareholder, owner of Eden. In the mother company, all of us have the bulk of our private capital invested in Eden shares. If we look at the group companies, all the 20 group companies, we have co-ownership in each respective company in the management team in 100% of the companies. and in total we have more than 100 owners managing directors and other key employees in the companies so we think that in eden industry we have a unique link and in terms of alignment of interest from you as external shareholders and down to the management group in each of the eden group companies Over to the fourth quarter and some highlights. So net sales increases by 8.4%, EBITDA up 2% to 76 million in the quarter. We have a good high cash conversion. We have earnings per share that increases more than 20%. And in this quarter, we made... two investments. One is an add-on investment in Meab Stainless, a company based in Malmö, a trading company with mainly stainless steel fasteners, some specialized equipment and components. And this was an add-on acquisition to Eugène Wiberger, our group company in Gothenburg. And it should be said that there is a really good strategic fit between Wiberger and Meab. Then we invested in, we bought 80% of the shares in Tricoby. It's a new Eden Group company. And Tricoby is the leading Swedish manufacturer of knitted fabrics and jersey fabrics. So quite a specialized position where they control the whole value chain and we are really proud of welcoming these two companies to the Eden family. If we take a look from the first investment in 2014, we have continuously invested in two to four companies, either new group companies or add-on acquisitions per year. It has been a rather stable development. If we look back five years, for example, 2020 to 2025, EBITDA has increased 30% per year on average. So sometimes the pace is faster, sometimes like this year it's slightly slower because we are hopefully towards the end of a weaker market. And if we take a look at how each quarter and the rolling 12 months and what it looks like for the six years, we again, we see a quite stable growth year on year and quarter by quarter. And to the right in the This picture will also break down the sales growth in 2025 compared to 2024. And we see that this 8.4% consists of 4.8% is organic growth and the rest comes from investments in new group companies. And the same picture, but with operating profit, again, a rather stable development year per year. But here we can see 2025 compared to 2024, that organically, it was actually a slight decrease compared to last year, but including acquisitions growth by 2%. And here, this slide, the message here is really stability. We see rolling 12-month figures for five years for sales, gross profit, and operating profit. We see that gross profit is really stable at around 60%. And if we look at the EBITDA figures, it's not like it's going up and down. It's really gradually and it's growing in a stable fashion from quarter to quarter. So that is the message in this picture. So with that, we will also now look at the business areas and over to you, Oskar.

Thanks. Starting with manufacturing, sales is up 8.1% or it goes from 337 million to 364 million, driven mainly by acquisitions and a margin that is slightly below last year with 11.1% compared to 11.7%. Viberger and the add-on acquisitions, MEAB, that Henrik already mentioned, performed well in the quarter and also for the full year 2025. Intermecato on the other hand, load attachments for forestry, material handling and so on experience a weak market and demand. So both the quarter and the full year were a bit disappointing, but we see that the figures will turn in 2026. Looking at the service and maintenance, here we have a sales growth of 8.8% and mainly organic growth in sales and EBITDA margin somewhat lower with 16.1% compared to 17.4%. Stega företagen that deliver car washing services among other things have had a strong performance both in the quarter and for the full year of 2025 and driven by good car wash volumes. We have previously mentioned Triton, the service and manufacturing rollers for the process industry. They've had a challenging 2025, but we have now reduced cost in the quarter and had a better profitability than compared to a weak ending of 2024. And also mention, we see that the customers within the process industries, many of our companies within this area, for instance, Stortag Amateknik, we have Triton, we have Lema, service this area and we saw that they have reduced maintenance somewhat or slightly compared to previous years. But we see that this will increase in 2026 compared to 2025. We had a good cash conversion in the quarter around 84% and for the full year around 59%. And going ahead we should be able to reach 60% or more in cash conversion. And looking at the net depth, we increased net depth in the quarter with around 150 million SEK, mainly due to the new acquisitions mentioned by Henrik Tricobi and Meab Stainless. Our interest costs continue to decrease and decrease with 4 million in the quarter and we see that we will lower the interest costs with another 5 million here in Q1. And going ahead here in the second quarter we will continue to evaluate our bond that is callable from the 30th of June. Looking at our financial targets, we have a financial target of EBITDA growth of 15% over year, over time. We can see that we didn't manage to get at this level for 2025, but With our current or the acquisitions made and also Moldex made here in Q1 and together with Organic Growth we see that we will be back on track here in 2026. Net debt to EBITDA should be lower than 3.5 and reported now at the end of 2024 it's 2.4 but then not including EBITDA from the acquisitions made. We have a dividend policy maximum of 10% of the yearly profit and it has been between 8 and 10% and we will have a dividend of 1.15 SEK here at the annual general meeting in the spring.