Idun Industrier AB (publ)

Hello and welcome to IDUN Industriers conference call for the third quarter of 2026. My name is Carl Korsheden and I work as an equity analyst here at DNB Carnegie. with a focus on acquisition driven compounders and I'm here to moderate this session. With me today we are as per usual joined by Iduns CEO and CFO Henrik Mella and Oskar Samuelsson who will take us through the quarter briefly after which we will follow that up by a Q&A section and during this Q&A section Those of you who are dialing in are very much encouraged to participate and feel free to shoot your questions in the chat function and we will make sure to cover them here in the studio. So with that said, I'll leave the word over to you.

Thank you and welcome to the Q3 results for IDUN Industrier. As usual, I will start with a brief introduction or repetition of IDUN, who we are and how we work. So in Industrier, an industrial group of companies, sales roughly 2.6 billion Swedish kronor and EBITDA 360 million. On a rolling 12-month basis, we have some 14% EBITDA margin. Eden consists of 22 group companies. We divide these 22 companies into two business areas. Manufacturing which is roughly 60% of sales and profit and service and maintenance roughly 40% of sales and profit. Eden is mainly a Swedish and or Nordic group of companies. Three quarters of sales is generated in Sweden and more than 90% in the Nordic countries. And we have subsidiaries outside Sweden in Norway, Finland, Denmark, and all the three Baltic countries. A few words about Eden as an investor or a compounder. We have a lot of investment criteria, but our single most important investment criteria is that we look for profitable market leaders, and then market leaders in small sectors within manufacturing, industrial trading, industrial services, only B2B. And to say one thing about our business model, meaning the way that we manage our 22 group companies, We make very consistent and active use of the pilot school. That is, we believe that managers should have an ownership stake in the companies they lead. And we see on a daily basis what this brings in terms of energy and enthusiasm in the companies. After that introduction, let's go over to the third quarter and some key figures. I should first say this is a strong quarter for Eden. Net sales growth by 26% and EBITDA by more than 36%. thereby reaching 101 million Swedish kronor. And this is actually the first quarter or the first time where we in a single quarter have EBITDA of more than 100 million. So it's a nice milestone for us. Equally important, organic growth is back on track, double-digit organic growth, both sales and EBITDA growth by roughly 11%. So the EBITDA margin in the quarter was 15.3%. Cash flow growth and earnings per share as well. In this quarter, we also made one rather small but still add-on acquisition to our group company Prudent by buying the Finnish company Safety Reflector. They are offering reflectors, and reflectors is an important product category for Prudent. Since the first investment in 2014, we have made 35 investments. That's in new group companies and add-on acquisitions. Actually, more than 35 if you would include some really small add-on acquisitions. But this means that we've made on average two to four investments per year, and we aim to continue in this pace. So we have no objective of being the fastest growing compounder, but we want to make this number of investments steadily, year by year, continue to grow. And if we look back a couple of years to 2020, we've managed to grow EBITDA by 30% per year. We don't promise to keep up that pace, but that is where we have been so far. On this slide, you see sales growth per quarter during the last seven years. And in the green-blue line, you have the rolling 12-month figures. To the right, you see the sales growth split between organic and acquired growth. So, well, you basically see a nice split steady growth going forward. And the same figures but for EBITA. We also here see that the new add-on or new companies that have joined the group contribute in a very good way with 19 million in additional EBITA. And on this picture, you see rolling 12-month figures for sales, gross profit, EBITDA, as well as the gross margin and EBITDA margin. And the message here is stability. Sometimes the growth is faster, sometimes it's still growth but a bit slower, and now it's picking up again. But from quarter to quarter, we keep... increasing profits. And it could then be mentioned also here that if we look at the recently acquired companies, well, some of them, Miab Stainless, Tricobi, Moldex, AGB, and most recently Nordbergs, these companies will contribute another roughly 30 million in EBITDA going forward as the full-year figures come into the reported ones. With that, over to you, Oskar.

Thanks. Going to our two business areas, starting with the manufacturing Net sales grew by 22.8%, up to 398 million, and EBITDA increased to 66 million from 53 million, driven both by acquisitions but also organic growth. The EBITDA margin of 16.5% is in line with last year. Our group company Fredalry Dens delivered another strong quarter, both in sales and earnings. And we now see results from the investment we did in the new handle line for coffins some time ago. Interagroskog had a setback in wildlife protection products in the quarter and has not yet recovered its root rot production sales that were weak in the second quarter. Kulina products see fewer public sector kitchen or tenders for the public sectors and is adjusting cost and also customer focus and among other areas for private restaurants. The newly acquired companies Tricobi and Norbeis contributed positively. They have lower gross margin than the current group, and that's also the main reason we see that we have some lower gross margin on the group level. But on the other hand, they have a higher EBITDA margin that contribute positively. And finally, in the end of the quarter, as Henrik mentioned, we did small add-on acquisitions in Safety Reflector in Finland for Prudent. Going to service and maintenance that had a really strong quarter. Sales grew by 31.5% driven both by the acquisitions of Moldex and AGB that came in well and from organic growth. The margin improved from 13% up to 16% or a bit up from 26 million to 41 million. Stortag Amateknik had a good quarter with a high number of projects within composite treatment of water and waste water facilities. And what could be mentioned is that the project's volume may vary between quarters, but a nice contribution. Triton also contributed to improve its result and has done so for some time, so that we are glad to see. Also, Stega Företagen delivered a stronger quarter than last year, with higher car washing volumes and EBITDA growth in both the Swedish and the Finnish market, while they continue to work to strengthen the margin within insulation and service going ahead. And as mentioned, the acquired companies also contributed both to results and margins. Cash conversion and net debt operating cash flow was 38 million up from 33 million but low relatively to EBITDA of 116 million in the quarter. Two effects mainly explain this. The first one was that the tax paid in the quarter was 36 million compared to 40 million last year, partly due to the newly acquired companies, but also due to temporary high tax payments. In addition, accrued, not just invoiced, income has increased with 31 million due to current projects that has not yet been invoiced. We see that both two things will normalize as the projects will be invoiced and conversed to cash flow. On a rolling 12 months basis, our cash conversion of 58% are unchanged and historically we have been well above 60% and we don't see any structural changes that wouldn't make us go up to above 60% going forward. Net debt decreased by 21 million SEK in the quarter and the net debt is now 1049 million SEK. Net debt to EBTA is 2.5 or 2.3 if you add the roughly 30 million in EBTA from recent acquisitions that has not been with us the full rolling 12 months. Good. And the interest cost has decreased from 13 to 12 million and mainly due to the early bond redemption that was carried out in the end of June. Looking at our financial target, they are unchanged. First, EBITDA growth of at least 15% over time. On a rolling 12-month basis, we now have 15.3%, mainly driven from acquisitions. Organic contribution is only 0.9%, even though the quarter was alone 10.9%. Second, net debt to EBITDA below 3.5 times. We are now at 2.5 at reported pace. And the final one, dividend up to 10% of the yearly profit adjusted for goodwill amortization. And with that, I hand over to Henrik again.