Idun Industrier AB (publ)

Hello and welcome to the conference call. My name is Carl Korsheden and I work as an equity research analyst here at the D&B Carnegie focusing on acquisition driven compounders with Eden being one of the companies I have the pleasure of of following with me in the studio. I'm joined here by Iduns CEO and CFO, Henrik Mella and Oskar Samuelsson, who will walk us through the quarter, which will be followed by a Q&A session. And during this Q&A session, you are very much encouraged to participate. We do have a chat function. So if you have any questions, feel free to type them in the chat and we will make sure to cover them here in the studio. So with that said, I'll leave the word over to you and the second quarter.

Thank you and welcome to this Q2 call for IDEN Industrier. A few quick words about IDEN Industrier. We are a growing group of industrial companies, 22 companies in total, with a net sales of 2.5 billion and a VITA of rolling 12-month 336 million. We have those two business unit manufacturing and service and maintenance companies and we, in terms of being an investor, we invest in market leading companies and for us the pilot school is very important to our business model. We are a primarily Nordic group of companies and more than 90% of our sales is generated in the Nordics. With that introduction, let's go to this quarter. So second quarter 2026, net sales growth 12.7% to 668 million, EBITDA growth to 96 million or up 7.4%. The organic sales growth was rather slow at about 1%. However, we had a negative organic EBITDA growth this quarter of 7.7% or 7 million. That is not something we were very happy with and due to basically a couple of companies performing worse than expected in this quarter. We had a solid cash flow of 74 million, slightly more than last year, and also good growing profit per share. In the quarter, we made two acquisitions, one of a company called AGB Service based in Kalmar. What they do is service and calibration of press tools for technicians What they call in Swedish VVS technicians. And the second one is a trading company Nordbergs Tekniska here in Valentuna, north of Stockholm. And they provide highly technical TECHNICALLY SPECIALIZED POLYMER MATERIALS AND ALSO MAKE SOME CONVERSION OF THEM TO VERY PROFITABLE AND WELL RUN GOOD COMPANIES THAT WE ARE HAPPY TO WELCOME TO EDEN. ONE MORE THING THAT IS WORTH MENTIONING ON THIS SUMMARY SLIDE IS THAT WE made an early redemption of our last outstanding bond loan of 220 million SEK and this we did end of June and in the coming 12 months this should save us almost 8 million SEK in interest. Just to give the overview, the growth is continuing. We used to say that we make two to four acquisitions of companies per year, and this is exactly what we do, and the journey is continuing. If we take a look at quarter per quarter, here we see the illustration to the right, where we see that we had 12.7% growth, but the absolute majority of this growth comes from the newly acquired companies. And if we take the same look and look at EBITA, we actually see that we had a nice development of the acquired growth, but the organic growth in the period was actually negative. And I mentioned this was due to a couple of company-specific factors. One of them was Stega Företagen, our car washing business. They had a quite strong 2025 and are meeting challenging comparison figures. Then we have the LME group of companies, where we have the company Interagro Skog selling products to protect the forest for damages, and here we were actually affected by the spring storms, and we sold less of a quite profitable product, and that actually had an impact on that quarter, because the second quarter is a very important one for that company. Finally, we had Ekab, our business with service technicians in high-voltage electricity in the greater Stockholm area. This is normally a company with very stable profit levels, but as you say, in Swedish, even the sun has spots. And this was a quarter where Ekab had... did not earn as much money as they did in the Q2 2025. I should say that for none of these three companies, we have no worries in terms of the long-term development and not even when it comes to the development in the fall. With that, yes, I will show this slide as well with rolling 12 minds figures for sales, gross profit, EBITDA and also the gross profit and EBITDA in percent. And we like to show this because it really gives a sign of the stability of the Eden business model because as you can see here, it's the growth, we keep growing and the margins are very, very stable over time and We intend to continue with that development. And I should say that the recently acquired companies, Meab, the add-on acquisitions to V-Barrier, and also Tricobi, Muldex, AGB, and Nordbergs, they will contribute positively in the next quarters. And if we add those in the... the rolling 12 months, or the coming months, those recently acquired companies will contribute another almost 50 million EBITDA on a yearly basis. So with that, over to you, Oskar.

Thanks. We will start with manufacturing that covers two-thirds of our sales and EBITDA, roughly. Net sales is up 15.3% to 435 million SEK. And the margin came out at a similar level as last Q2, 16.8% compared to 16.7%. As Henrik already mentioned, we had lower sales within the sister company of LMI, Interagroskog. And on the positive end, we see that Viberger and Fredal Rydéns continue to deliver strong performance. Tricobi Knitted Technical Textile acquired in December continued to add a good contribution to EBITA and EBITA margin, though on a lower gross margin than the group. and can also mention in service and maintenance we had a small decline in organic sales but here in manufacturing we had a positive organic sales and EBITDA were down just a few percent. So in line with last year and can continue to develop in a good way. Service and maintenance, we had a setback. Sales is up 8.1% and it's driven by the two new group companies Moldex acquired in January and AGB acquired in May. and they will help us to improve margins and EBITDA going ahead. Sadly, we had both a decline in sales and EBITDA organic and around 3% down in sales and then double digits on EBITDA declining. And the main drivers for this, as mentioned, was Stiga Företagen that has had comparable in 2025 due to good volumes in car washes with good gross profit and EBITDA margin. And also ECAB that had a somewhat weaker Q2 compared to a strong Q1. And if you look at the figures going back even to 2024, we can see that we have increased sales. from that period but at the same time lowered EBITDA with more than 10 million. And what can be added that in 2024, we had a really good economic environment for Storthög Amateknik, heavy maintenance for Swedish industry. The same were for POL Nordic. learning system for both school but the process industry here in Sweden. And also Elema Miljöanalys had a great 2024, where they had a lot of assignments going in 2024. So we see a decline from the peak in 2024, I think in that year we had a beta margin in service and maintenance of around 16.5% and now on a rolling 12 months basis we are on 14.1% and of course we want to improve from this level and hopefully we will see that the customers will continue and improve their investments level from where we stand today. Going to cash conversion and leverage, we have a cash conversion of 58%, 225 million, rolling 12 months or 74 million. We have increased our net debt to 1 billion and 70 million SEK from Q1. That's an increase with 131 million and it comes from the acquisitions made in the quarter. But on the other hand, we have the full balance sheet in place, but then we will be able to, in the next 12 months, add just under 50 million in EBITDA. So we will go from a leverage of 2.8 down to 2.4. We had a bit increased interest cost in the quarter due to the early redemption of the bond. But going ahead, we will be able to save another 8 million CX with the new bank financing in place. Just quickly on our financial targets, nothing has changed. We want to increase EBITDA growth by 15% over a period of time, where we see that 5% should come from organic growth, which we have succeeded in. during the last five or even a longer period of time so we feel comfortable of achieving even we are not there today. Net depth divided by EBITDA less than 3.5 and where we today on pro forma basis are at 2.8 and then the dividend should be a maximum of 10% of the yearly profit.