Idun Industrier AB (publ)

Hello and welcome to IDEN Industriers conference call here for the first quarter of 2026. My name is Carl Korsheden and I work as an equity research analyst here at DNB Carnegie with a focus on these more acquisition intensive companies such as IDEN. I would just like to remind you that there is a chat function, so if you have any questions, please feel free to send them into the chat and then I will read them out here to the management team in the room. But with that said, I will leave over to you on the first quarter.

Thank you and welcome to the presentation of the first quarter of 2026 results of Idel Industrier. And I will start for those of you who are new to Eden with a very brief repetition of who we are. So Eden is an industrial group of companies with net sales of about 2.4 billion with EBITA around 330 million. We consist of 20 group companies that we divide into manufacturing which is about 60% of sales and profit, and service and maintenance, which is about 40% of sales and profit. IDON is primarily a Swedish and Nordic organization. All of our 20 group companies have their base in Sweden, and three quarters of sales is generated in Sweden. More than 90% of sales is generated in the Nordic countries, and we have subsidiaries in all the Nordic and all the Baltic countries. A few words about Eden as an investor. We look for market leading companies. Market leading companies within manufacturing, industrial trading and industrial services companies. and if there is one thing to remember about our business model is that we really work actively with a pilot school. It is starting from that we prefer to invest in some 80-85% of new companies so we have lots of former owners on the board of directors and still operating in our companies and we have co-ownership in all of our group companies in the management. In total more than 100 shareholders in the group. And in the management team, all of us are quite substantial owners in terms of how much money we have to invest in the company. So for you as an external shareholder, there's a quite unique alignment of interest between you and all the way down to each individual group company in Eden. With that said, over to the first quarter results. So it was a strong quarter for Eden, sales growing almost 16% and EBITDA even a bit more with plus 17% in the period. We had really good earnings per share, 30% up. and also organically sales and profit is growing in the quarter. We had a solid cash flow and we made one acquisition of a new group company in the quarter in January, Muldex Sweden, which provides services and spare parts to sawmills, particularly planes and mainly in Sweden. and our group company Stega Företagen made two add-on acquisitions. Since the first investment in 2014, we have continuously made two to four investments per year up until now, and EBITDA growth from 2020 up to 2025 has actually been 30% per year. This is not a pace we can guarantee to continue with. It will be faster in some periods and slower in others, but historically profit growth has been quite strong. We are not the fastest growing compounder, so we are quite happy if we make those two to four acquisitions per year and growing sales and profit step by step. Here we see sales per quarter six years back, and to the right you see the split between organic and acquired growth. It could be noted here that it's quite a stable growth year on year, and we see some slight seasonality with typically the second and the fourth quarter being slightly stronger than the rest, but it's not so big differences. And then the same picture with EBITA rolling 12 months and profit per quarter. Step by step growing and it could be mentioned here on the split organic acquired we also added that the parent company cost... Actually, they went down by one million, so contributed positively in the quarter. And it's not that we are cutting costs in the mother company. It was the case that in Q1, we had some additional legal costs related to the central refinancing that we made end of March, and that was around one million SEK. But on the other hand, we are saving 20 million SEK annually on lower interest costs. And this slide, it shows rolling 12 months, sales, gross profit, and EBITDA-EBITDA margin, and The message here is stability. So it is not like the margins are jumping up and down. So you can see that in 2021, 22, part of 23, the growth was slightly faster. We all know that the last years have been more tough in terms of the economic environment, but we keep growing slightly slower, but the margins are really stable. With that, over to you, Oskar.

Thanks, Henrik. Startinging off with our business area manufacturing. We can see that both sales and EBITDA are increasing. Sales up by 15.8% from 366 million to 424 million. And for EBITA, we went from 52 million to 64 million with improved margins. As mentioned in the CEO letter, Fredalder Dens that deliver Koffin and Ernst had a strong performance in the quarter, also our group company Turab. Turbines for hydropower plants achieved improved results. This is also the first quarter where we had Tricobi, our acquisition from the fourth quarter 2025, contributing in the full quarter. And can be mentioned for Tricobi that they have a lower gross margin, but the EBITDA margin is better than the group in average, so that helps us going forward. And the other companies within manufacturing they face, some group companies face markets where the customers tend to remain cautious and continue to work on the market there. Our other business area Service and maintenance Also here we see that net sales goes from 203 million to 235 improving 15.6% and the EBITDA margin it goes down a bit from Q1 2025 it's in the same level or almost in the same level as the year before 2024 14.2 compared to 14.4 but then last quarter was up on 16.4 And last year was a strong quarter. Stega företagen that has a lot of car washing had good volumes throughout 2025, but also in the quarter and with good gross margin and EBITDA margin. So hard comparison period. In the quarter, here in 2026, Ståtöga Embateknik, maintenance for heavy industry here in Sweden, so they started the year very strong and hopefully that can be seen as a sign of a better economic environment going ahead. We have also mentioned in previous reports, we have had some struggling with profits in Triton, still black figures, and we can see that they continue to improve profitability and we are glad to see. On the other hand, ILEMA, Air Emission Measurements and POL Nordic, a competence tool system for industrial companies and also service program for practical upper secondary schools in Sweden have met lower market demand mainly from the end users within pulp and paper industry. But all the companies still achieve good profitability and are also well placed to meet further demand going ahead. Looking at our cash conversion and net debt, net debt increased by 66 million in the quarter and mainly due to the acquisition made in the quarter mainly with Moldex Sweden AB mentioned by Henrik and also that Stega företagen did to add on acquisitions. Jomi System & Ecosign. Since we have done quite a few investments during the last 12 months we have another 40 million in EBITDA that is not in the books yet so looking at the leverage at the moment reported is 2.5 but given that extra EBITDA into account we will end up at around 2.2 or 2.3. We also lowered our interest cost by another 7 million in the quarter. So from a rolling 12 months period we have went from 75 million to 55 million on an annual basis. We also have the opportunity to redeem our last outstanding bond here at the 30th of June this year and if nothing changes we have the opportunity to save another 8 million SEK on an annual basis. Looking at the cash conversion, rolling 12 months we are at the level of 58%. We see going ahead that we should be able to go above 60% so over the next 12 months we see that we should be able to increase this level from this point. Just a reminder of our financial targets. We have a beta growth of 15% where we see that 10% should come from acquisitions and 5% from organic growth. As mentioned in the first slide, looking at the 2020 to 2025, we have achieved 30%. and we hope that we can continue to deliver on high levels but at least these 15% over a period of time. Net debt under 3.5 times and at the moment we are reported at 2.5 but then taking into account the new companies we would go to 2.2 or 2.3. And dividend policy this year we have a dividend of 1.15 SEK per share.