Indutrade AB (publ)

Welcome and good morning on our behalf as well. As usual, let's start with the overall highlights.

In terms of order intake, we had a total growth of 5%, organically an increase of 1%, despite the uncertain market situation. Good demand from customers within pharmaceutical production, the process industry more broadly, and also the energy sector. And the majority of companies had organic order intake growth. Net sales increased 4% in total, organically it was unchanged. The EBITDA margin came in at 13.6%, excluding some one-offs, 13.3%. And continued improvement in working capital efficiency and record one operational cash flow of 644 million SEK. And three acquisitions completed so far in 2025. And the pipeline remains good. If we then turn to order intake and sales, as mentioned on the previous slide, demand was good with organic order intake growth, despite the increased market uncertainty. We had a positive book to bill with orders being 5% higher than sales. And there was continued variation between companies, segments and countries. with the strongest growth in medtech and pharmaceuticals, the process industry and the energy sector. Demand within infrastructure and construction was stable, while the general engineering customer segment continue in general to be somewhat weaker. In terms of sales, we grew 4% during the quarter, all related to acquisitions. Organically, it was flat. on the back of the lower order backlog coming into the quarter. During Q1 last year, we were negatively affected by the Easter holiday. And also this year, we had no help in terms of number of working days. If we then look at sales in a geographic perspective, the development within the Nordics was on an aggregated level flat from last year. Finland continued to be a bit weaker while sales to Norway was strong. And in Norway we had good development within valves and other flow related components as well as filters to mention some product areas. Benelux and UK Ireland were stable and Germany was a bit weaker. For Switzerland and Austria, the sales growth was high, driven by good development within the process industry and the pharma-related single-use area. In North America, sales was down. A difficult reference linked to last year with some larger projects during that time period was the sort of key reason. And sales in Asia was higher than last year. driven for instance by good development for products within the marine segment. I also want to briefly address the tariff situation, which so far have only had a marginal impact on demand. Our direct exposure to the US is limited, with total sales to North America in 2024 corresponding to less than 6% of the group net sales. As most of you know, we are mostly a Western European business group with many companies being strong local players. However, this situation is creating increased uncertainty and the effect on the global economy and thus the indirect effect is hard to predict. Our companies are proactively implementing appropriate measures, for example, review and trade flows, supply chains and commercial agreements. If we then turn to our profits, our EBITDA increased 6% in total to 1.1 billion SEK, and the EBITDA margin came in at 13.6%, however, supported by some one-off items. The underlying EBITDA margin was 13.3%, same level as last year. Our ambition and objective is to be at a higher margin level but this was not a complete surprise or unexpected. At the end of last year and also the first part of Q1, we expected a gradually better demand situation during the year. And a large part of our companies were therefore geared up in terms of initiatives for organic growth to increase. This somewhat higher expense level and the flat top line explains the EBITDA margin. The market risk and volatility have now obviously increased and many companies are now actively working to align costs to the situation prevailing in their respective markets. On a positive note, our gross margin was record high for a Q1 and acquisitions divestment margin accreted. Then we turn to the business areas and start with sales. As mentioned, we had no help from more working days during the quarter, despite Easter taking place in April instead of March. On an aggregated level, half of the company's organic sales growth in the quarter. Business area life science was the only BA with organic sales growth, mainly driven by sales of equipment for pharmaceutical production, including single use equipment. Infrastructure and construction was flat from last year. while the other three BAs show declining organic sales, mainly due to the generally weaker business climate and the lower order book coming into the quarter. Business area technology and system solutions is standing out negatively. They are the most global business area and are slightly more dependent on investments and CapEx decisions on the customer side, which is making their current demand situation more challenging than the other business areas. And then EBITDA profit in terms of business areas. The EBITDA margin improved in business areas infrastructure and construction and also life science. Infrastructure and construction is on a positive EBITDA margin trend, mainly due to effects from acquisitions and divestments. However, many company specific initiatives and other organic BA actions during last year also contributes. The main driver for the margin increase in life science was a strong organic sales growth and the other three BAs had a lower EBITDA margin than last year with the largest decline in process energy and water due to the organic sales decline and higher expense levels mainly linked to a higher activity level and inflation. Regarding acquisitions, we have made three acquisitions so far this year with an annual turnover of 390 million SEK. The first company is Ecoroll in Germany, which is a manufacturing company offering highly technical tools for mechanical surface treatment to a wide range of industrial segments and geographies globally. We also signed an agreement to acquire IPP on Ireland, which has an extensive machine product offering targeting the electronics and life science sectors. And finally, we also welcomed the Swedish technical trading company Ideus, who is specialized in customer specific metal components. Following the high acquisition pace in 2024, the pace has now been slightly slower. However, nothing dramatic. This can fluctuate over quarters. Despite ongoing market uncertainty, we feel that the acquisition climate in 2025 remains positive. We have a good activity in our acquisition processes and a strong financial position. So we are looking forward to welcoming more companies during the year. It's always relevant to repeat that the number of acquisitions should be followed over a longer period of time. As mentioned, high pace in 2024 and good contributions in Q1. Looking at the bridge effects from acquisitions over the last 12 months, we have added 55 million SEK to the group's EBITDA in the quarter. Furthermore, we can also see that the acquisitions are margin accretive. with an accumulated EBITDA margin of 15.9% for the quarter and over 17% rolling 12 months. Now I leave the word over to Patrick to comment more on the financials.

Yes, thank you, Bo. Yes, then total growth for orders and sales was 5% and 4% respectively in the quarter. Book to bill was positive, orders 5% higher than sales and above one in four out of five business areas. And as Bo previously mentioned, our gross margin was strong, record high actually for Q1, 35.4%. EBITDA increased with 6% in the quarter, driven by effects from acquisitions and currency, but negatively affected by the dampened organic sales development and slightly higher expenses. The Vita margin improved to 13.6 in the quarter. But again, then, as Bo mentioned, we had some one-offs during the quarter, primarily connected to earn-out revolutions, which had the net positive effect of 27 million. So if you exclude these, the margin was 13.3 in line with last year. We, of course, then aim to be on a higher margin than this. But the important note is that Q1 is historically seasonally low margin quarter for us and additionally the backlog coming into the year was slightly lower than last year. Moving further down in the P&L the finance net increased with three percent and if you look at the interest net included in the finance net It was lower than last year, but this was offset by other financial items, primarily financial currency effects. Tax cost increased by 5% for the quarter, corresponding to a tax rate of 23%, which is in line with last year. Earnings per share increased with 6% in the quarter, and we will look at the separate slide on that later. Return on capital employed, amounted to 19% that's slightly lower than our target and in terms of cash flow Q1 is seasonally the weakest quarter but we had a good development during the quarter up as much as 32% lastly the net debt to EBITDA ratio was at historically low level of 1.3 by the end of Q1 so move on and look to look on the cash flow more in detail and it is as i said then record high for the q1 amounting to 644 million in the quarter and the improvement versus last year relates to both the slightly higher result and in combination with more favorable working capital movements during the quarter So diving into the capital side slightly more, the organic inventory levels are basically unchanged since year end, but we've had an underlying decreasing trend on the inventory side since beginning or mid-2023. So the level at the end of Q1 this year is around 5% lower than the same period last year. As we mentioned before our companies are relatively capitalized and there is a continuously strong underlying operational cash flow coming into the group and that's reflected in a good cash conversion as you can see from the slide. Right now trending on a rolling four quarter basis at 137% compared to net profit less capex. and in terms of working capital efficiency and that also improved compared to the same period last year so earnings per share the EPS development has as you can see from this slide flattened out the last two years due to the the weak organic development but also then increased interest costs this quarter we managed to increase earnings per share in line with a beta improvement and that's an increase of six percent from 1.61 to 1.71 per share and looking at the zooming out and looking at the long-term perspective the the growth in the three and five year rolling four quarter eps uh we were uh seven percent up on the three-year trend and 13% on the five-year trend. Then lastly, looking at the financial position, the debt development, the interest bearing net debt decreased since same period last year, but also sequentially, despite MQ1 being a seasonally low cash flow quarter. Improvement in cash flow is, of course, the main driver for this reduction, but also then a slightly lower acquisition pace in the beginning of the year. So looking at debt ratios, historically low, I would say, net debt equity ratio at 47% compared to 55 last year, and net debt EVTA 1.3 versus 1.5 last year. And if you exclude earn out liabilities, which we of course include in the measurement, then it would have been 1.2 versus 1.4 last year. summarize debt ratios are low debt maturity profile is well balanced and we have a strong financial position going forward so by that i move on we move over to boo again thank you then time to conclude in terms of the takeaway message here organic order intake growth