Indutrade Ab · OMXSTO:INDT
Indutrade Ab — Investor Day (2025)
87 slides from Indutrade Ab's investor day presentation, 2025
Slide 1: Capital Markets Day 2025
CAPITAL MARKETS DAY 2025
Slide 2: Agenda
13:05 Strategic update Bo Annvik 13:50 Financial update Patrik Johnson 14:15 Q&A Bo Annvik, Patrik Johnson 14:30 Break 14:50 Acquisition strategy Gustav Ruda, Andrea Imbriani, Richard Denlin 15:30 Business Area perspective Joakim Skantze Anders Hegaard, Declan Field, Fredrik Alexandersson, 16:00 Pan
Slide 3: Bo Annvik, President and CEO
Bo Annvik President and CEO Board member
Slide 4: Group Management
Group Management Göte Mattsson Juha Kujala Joakim Skantze Per-Olow Jansson* Peter Laveson Industrial & Infrastructure & Life Science Process, Energy & Technology & Systems Engineering Construction Water Solutions --------------------------------------------------------------- ----- - - - - Åsa Wirse
Slide 5: Per Lidström, new head of Process, Energy & Water
Per Lidström From April 2026 Senior Vice President, Process, Energy & Water Education: M.Sc. in Chemical Engineering Previous experience: CEO of Cibes Lift Group and senior positions in Seco Tools and Sandvik (Alleima). Born: 1976
Slide 6: Strong performance last five years
Strong performance last five years… Net sales Organic growth 35000 16% 30000 32.3 +5% 14% 25000 20000 12% 15000 Billion SEK, R12Q3 p.a. last 5 years 10% 10000 8% 5000 0 6% 2020 2021 2022 2023 2024 No of companies EBITA margin added EBITA margin Net Sales, SEK m 14.6% CAGR last 5 years: ~70 Sales EBI
Slide 7: But weaker demand impacting short term
…but a weaker demand impacting short term Net sales & EBITA 10,000 20 9,000 19 8,000 18 7,000 17 6,000 16 5,000 15 4,000 14 3,000 13 2,000 12 1,000 11 0 10 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 2023 2023 2024 2024 2024 2024 2025 2025 2025 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 8: The balancing act – successful capital allocation
The balancing act – successful capital allocation Capital allocation, L10Y (MSEK) Strong cash flows from our existing 4,500 3 companies… 3,500 2 2,500 …enables company 1,500 1 acquisitions at well- 500 balanced valuations… 0 -500 -1,500 -1 …and steadily growing -2,500 dividends… -2 -3,500 -4,500 -3
Slide 9: Gradually increased acquisition pace
Gradually increased acquisition pace Number of acquired companies per year 20 18 16 14 12 10 8 6 4 2 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025-YTD No. of acquired companies No. of acquired companies (3 yr avg) 9
Slide 10: Group evolution last 10 years
Group evolution last 10 years Share of net sales per category Share of net sales per geographical region Share of net sales, 10 largest companies 60% 40% 30% Sweden 30% Other Nordic countries 43% Technical trading Companies with companies proprietary Outside Nordic 27% products Sweden 57% 43% Other
Slide 11: 5 international Business Areas
5 international Business Areas Each Business Area is sector focused, addressing a distinct set of customer segments and technology/product areas Infrastructure & Technology & Systems Industrial & Engineering Life Science Process, Energy & Water Construction Solutions Strengthened conditions for orga
Slide 12: Industrial & Engineering
Industrial & Engineering 9 65 24% Business Segments Companies Share of net sales, 2024 Net sales & EBITA Product areas Organic growth 2% -8% 13% 11% 5% -2% 8,000 20 7,000 18 16 6,000 14 5,000 Industrial components, Products and equipment Chemical technology and 12 filters, fasteners for automation/
Slide 13: Infrastructure & Construction
Infrastructure & Construction 8 41 15% Business Segments Companies Share of net sales, 2024 Net sales & EBITA Product areas Organic growth 8% -3% 8% 7% -1% -4% 8,000 20.0 7,000 18.0 16.0 6,000 14.0 5,000 Equipment, tools and 12.0 Products for ground and Input materials for consumables for infrastruc
Slide 14: Life Science
Life Science 7 35 23% Business Segments Companies Share of net sales, 2024 Net sales & EBITA Product areas Organic growth 9% 26% 14% 21% 8% 1% 8,000 20.0 7,000 18.0 16.0 6,000 14.0 5,000 12.0 Single Use products and Equipment and products Medical technology assemblies for pharma production distribut
Slide 15: Process, Energy & Water
Process, Energy & Water 7 44 23% Business Segments Companies Share of net sales, 2024 Net sales & EBITA Product areas Organic growth -1% 4% 1% 12% 9% 3% 8,000 20.0 7,000 18.0 16.0 6,000 14.0 5,000 12.0 Valves, pumps, pipe & Flow instrumentation Water & chemical pipe systems and measurement systems 4
Slide 16: Technology & Systems Solutions
Technology & Systems Solutions 4 33 15% Business Segments Companies Share of net sales, 2024 Net sales & EBITA Product areas Organic growth 2% -7% 9% 10% 5% -3% 8,000 20.0 7,000 18.0 16.0 6,000 14.0 5,000 Measurement 12.0 Instruments and Force & weighing technology for industrial sensors solutions 4
Slide 17: Set to double the size of Indutrade
70,000 16% SET TO DOUBLE THE SIZE OF 60,000 14% INDUTRADE 12% 50,000 10% Investments made into a 40,000 refined and strengthened platform 8% 30,000 6% Decentralisation and entrepreneurship 20,000 4% 10,000 2% Staying true to our core values and principles 0 0% 2005 2006 2007 2008 2009 2010 2011 2012
Slide 18: Supporting our companies for organic improvements
Supporting our companies for organic improvements KNOWLEDGE-SHARING • Segments & Networks • Indutrade Portal BOARD • Conferences & events INDUTRADE ACADEMY • Dedicated Business • Benchmarking & awards segment leader • Leadership development • Strategic engagement • Functional trainings • Structured
Slide 19: Strategic direction for acquisitions
Strategic direction for acquisitions Opportunity-oriented approach Stepwise expanding geographical scope with focus on Western Europe Leverage new acquisition resources and segment structure Further strengthening of structured pro-active lead generation Continue to be prudent on pricing 19
Slide 20: Leveraging the Business Segment structure
Leveraging the Business Segment structure Strengthened conditions for organic growth Increase internal pipeline generation Segment A • SE: 3 companies • DK: 2 companies • NE: 1 company More market specific Enable knowledge-sharing knowledge in the company between companies with boards similar busine
Slide 21: Lead generation network of targets
1 company 2 companies 2 companies 5 companies Customers Network List of targets 3 companies 1 company Alnab, 1994 1 company Hexagon Brokers Suppliers 8 companies 1 company 3 companies 2 companies 2 companies 1 company 1 company 21
Slide 22: Controlled organisational evolution and lean Group team
Controlled organisational evolution and lean Group team to facilitate efficient decision-making 25 55 9,777 Business Area staff Parent company Total number of and Business staff employees Segment Leaders Industrial & Engineering Process, Energy & Water 22 Infrastructure & Construction Technology & S
Slide 23: Sustainability as a business opportunity
Sustainability as a business opportunity PRODUCTS & PEOPLE OPERATIONS CUSTOMERS Engaged people that drive CO2 and resource efficient development and performance operations Increased customer value and reduced product footprint • Engagement and leadership • CO2 emissions • Low carbon and circular • P
Slide 24: Reconfirming financial objectives
Reconfirming financial objectives EBITA Return On Dividend Growth Net debt/Equity margin Capital Employed payout ratio ≥10% ≥14% ≥20% <100% 30%-50% of Net Profit Last 5 years 12% Last 5 years 14.6% Last 5 years 21% Last 5 years 49%-67% Last 5 years 38% Targets measured over a business cycle “An Indu
Slide 25: Key takeaways
Key takeaways 1 Staying true to our core values and principles Investments made into a refined and 2 strengthened platform 3 Increased internal pipeline generation SET TO through leveraging the Business segments DOUBLE THE SIZE OF 4 Decentralisation, entrepreneurship and high INDUTRADE strategic eng
Slide 26: MT indutrade
MT indutrade
Slide 27: Patrik Johnson, CFO
MT indutrade Patrik Johnson CFO
Slide 28: Short term trends in the right direction
Short term trends in the right direction Book-to-bill Organic order intake Gross margin and SG&A development growth 36.0% 24.5% 102% +3% 35.5% 24.0% 23.5% SG&A as percentage of sales 23.0% 35.0% Q325-YTD Q325 Gross margin% 22.5% 34.5% 22.0% 21.5% 34.0% 21.0% No of companies Continued strong 20.5% gr
Slide 29: Value creation – growing with stable high return
Value creation – growing with stable high return ROCE development 25% ✓ Smart capital allocation 20% Target ✓ Balance between acquisition and organic 15% growth 10% ✓ Prudent acquisition pricing 5% ✓ Organic operational return leverage 0% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 29
Slide 30: Acquisition pricing development
Acquisition pricing development Acquisition multiples 12 Weak performance in first year in a couple of larger acquisitions create higher post acquisition multiple during 2022 10 Strong performance in first year in a couple of larger acquisitions create lower post acquisition multiple during 2021 8 6
Slide 31: A broadened performance perspective
A broadened performance perspective Focus on working capital and investments Profit Capital EBITA / Operating working capital + Machinery & Equipment = Value The Indutrade measurement ROWC 31
Slide 32: Generating more operational return
Generating more operational return ROWC development 55% 50% ✓ Internal follow up ✓ Benchmark 45% ✓ Training 40% ✓ STI ✓ Acquisition criteria 35% 30% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 32
Slide 33: Continuous improvement mindset
Continuous improvement mindset Organic growth trend Margin trends 6% 16% 36% 5% 14% 35% 12% 15,0% 4% Gross margin 35% EBITA margin 10% 3% 8% 34% 2% 6% 34% 4% 1% 33% 2% 0% 0% 33% Organic growth, %, avg. 5Y Gross margin EBITA margin ✓ Individual ambitious target setting ✓ Focus on Y-o-Y improvements ✓
Slide 34: Strong cash flow generation
Strong cash flow generation Cash flow trend Free operating 5,000 160% cash flow, CAGR +17% 4,500 140% 4,000 120% 3,500 3,000 100% p.a last 10 years 2,500 80% 2,000 60% CAPEX/Sales 1,500 40% 1,000 <2% 500 20% 0 0% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Cash flow from operating activities F
Slide 35: High reinvestment rate
High reinvestment rate Capital deployment last 5 years Acquisition 120% spending ~9.1 100% 100% Increased net debt -9% 80% -14% BSEK, last 5 years 60% 40% Reinvestment rate* 71% 20% -56% -21% 0% Funds before NWC CAPEX Acquisitions Dividend changes in wc & CAPEX Avg. last 5 years 35 *Reinvestment rat
Slide 36: How do we allocate time, resources and capital
How do we allocate time, resources and capital in an optimal and common way between our companies? Industrial & Engineering Process, Energy & Water 36 Infrastructure & Construction Technology & Systems Solutions Life Science
Slide 37: Our portfolio model
Our portfolio model ▪ Established common Indutrade framework ‒ Categorising our companies in terms of financial and organisational capability ‒ Support in capital allocation decisions and for adaptation of coaching ▪ Priority is always to establish reliability in the basics and a good profitability
Slide 38: Overview portfolio model
Overview portfolio model High Growth Growth performing Companies with stable strong financials, companies candidates cash ready to qualify for growth generators Companies with stable solid financial Stable performers performance but further improvements needed to qualify for growth investments Compa
Slide 39: Portfolio model supporting decisions on capital and resource allocation
Portfolio model supporting decisions on capital and resource allocation High • Growth objectives and activities Growth Growth performing companies candidates cash • Investments and coaching to generators support growth capabilities and plans Stable • Profitability objectives and activities ”Alignmen
Slide 40: Strong financial position
Strong financial position Net debt development 10,000 2.5 ✓ Strong underlying cash flows and a 9,000 balanced acquisition and investment 8,000 2.0 rate 7,000 6,000 1.5 + ✓ Strong and stepwise increased bank MSEK 5,000 group 4,000 3,000 1.0 + 2,000 0.5 ✓ Expanded cash pooling 1,000 + 0 0.0 ✓ Investme
Slide 41: Key takeaways
Key takeaways Prudent and Focus on value Continuous Professional disciplined creation improvement owner buyer Maintain strong underlying cash flow to facilitate smart capital allocation in all levels throughout the Group 41
Slide 42: MT indutrade
MT indutrade
Slide 43: Q&A
MT indutrade Q&A
Slide 44: Agenda
13:05 Strategic update Bo Annvik 13:50 Financial update Patrik Johnson 14:15 Q&A Bo Annvik, Patrik Johnson 14:30 Break 14:50 Acquisition strategy Gustav Ruda, Andrea Imbriani, Richard Denlin 15:30 Business Area perspective Joakim Skantze Anders Hegaard, Declan Field, Fredrik Alexandersson, 16:00 Pan
Slide 45: Gustav Ruda, Andrea Imbriani, Richard Denlin
Gustav Ruda Andrea Imbriani Richard Denlin Senior Vice President Acquisitions Italy Business Segment Leader Acquisitions & Business Process & Energy Development
Slide 46: My journey to Indutrade
My journey to Indutrade Pre Indutrade ‒ Industrial Engineering, KTH ‒ Applied Value ‒ Karnell 46
Slide 47: What are we looking for?
What are we looking for? Characteristics Type Financials • Only B2B companies • Sales of 50-500 MSEK • Technical trading or manufacturing • Healthy gross margins • Stable earnings • A company and market that we can • Sustainable ROWC understand Gradually increased • Leading market position in its ni
Slide 48: Acquisitions under the hood
Acquisitions under the hood What? How? ▪ Meet with many potential targets ▪ Clear set of preferred ▪ Focus on people characteristics ▪ Relationships ▪ Focus on what matters ▪ Open minded ▪ Transparent ▪ Disciplined ▪ Pragmatic, solution based, flexible ▪ Opportunistic ▪ Brave enough to be different
Slide 49: Why do entrepreneurs sell to Indutrade?
Why do entrepreneurs sell to Indutrade? Long-term Stability New Owner? History/legacy Reputation Core Values Experience Relationships & trust – people sell to people! 49
Slide 50: ~70 acquisitions in the past five years
~70 acquisitions in the past five years 17 Acquisitions 2021 Acquisitions Pistesarjat Oy Business Area Finland Annual Sales 100 MSEK 16 Tecno Plast Industrietechnik GmbH Benelux 230 MSEK Q1 Fire Proof B.V. Benelux 70 MSEK Typhoon Group Efcon Water B.V. Acquisitions 2022 Benelux Benelux 40 MSEK 20 MS
Slide 51: Characteristics of the acquisitions in 2021-2025
Characteristics of the acquisitions in 2021-2025 Acquisitions per Business Area Acquisitions per Country Type of Company SE DK NL GB DE IE FI IE INC LS PEW TSS IT CH NO AT LI CZ PL Technical Trading Manufacturing Potential and activity high in all areas 51
Slide 52: Stepwise increasing pace and contribution
Stepwise increasing pace and contribution No. of acquired companies per year Financial effects acquisitions 18 350 25% 16 300 14 20% 250 12 EBITA (MSEK) EBITA margin 200 15% 10 8 150 10% 6 100 4 5% 50 2 0 0% 0 No. of acquired companies No. of acquired companies (3 yr avg) Acquired EBITA Acquired EBI
Slide 53: High hit rate when we are interested
High hit rate when we are interested 300+ companies Strong inflow from the external and internal network Rejected before NBO 200+ companies 21 DD processes initiated 18 Slang- KS West Hansa pure! MeHow Hemomatik C.H. Rustfri Tidyco specialisten Perslucht Technology Engineering SDT ATLINE Matriks Geo
Slide 54: Our approach to valuations
Our approach to valuations Standardized valuation model Disciplined buyer Differentiated pricing ▪ Straight forward and standardized ▪ Relevant benchmarks from 200+ ▪ Not the same multiples for all valuation model acquisitions acquisitions ▪ Seller’s financial plan scrutinized ▪ Earn-Out bridges val
Slide 55: Acquisition capability step-up
Acquisition capability step-up Business Areas Central Acquisitions Team Business Segments Geographical Central Acquisitions New responsibility acquisition Team Business Areas from 2024 specialists Acquired EBITA, 3Y avg. 55
Slide 56: Acquisition organisation
Acquisition organisation • Drive and coordinate pipeline management – external and internal leads • Lead acquisition projects Group • Develop acquisition process and toolbox • Assure quality throughout the acquisition process • Generate internal leads from Business Segments and portfolio companies •
Slide 57: Industrial production in Europe and Italy
Industrial production in Europe and Italy EU Value of sold industrial production, by country, 2024 (% of total value of sold production)* Italy is the second industrial Rest of EU; 28% Germany; 26% economy in Europe with 14% of the overall production Netherlands; 4% Italy; 14% Poland; 6% Spain; 9% F
Slide 58: Focus on Northern Italy
Focus on Northern Italy GDP per capita in EU regions, 2019* ▪ Italy is divided into 20 regions, with the (in PPS, EU=100) highest GDP in the Northern regions ▪ The regions with highest number of mid-size industrial companies are Lombardy (Milan), Emilia Romagna (Bologna) and Veneto (Venice) 58 *Sour
Slide 59: Opportunities for Indutrade in Italy
Opportunities for Indutrade in Italy Number of Industrial companies in Italy, 2022* ▪ There are a total of about 180,000 manufacturing companies in Italy ▪ Out of 67,000 Small Medium Large (> 250 resources) Enterprises (SME’s), 44,000 are located in Northern Italy Medium (50-249 resources) ▪ 77% of
Slide 60: Approach to acquisitions in Italy
Approach to acquisitions in Italy • Regular contact with Business Areas Business Areas • Work with Business Segment Leaders to identify and Segments potential targets in Italy • Involvement of the Business Areas and Segments in • Ongoing inflow the analysis of potential acquisitions of opportunities
Slide 61: Feedback from Entrepreneurs
Feedback from Entrepreneurs • The long-term investor model in Italy was not known and is a new opportunity for entrepreneurs facing business succession • Positive feedback of Indutrade’s values (Entrepreneurship, Decentralisation, Long Term, People) for the future of their family business Positive f
Slide 62: My journey in Indutrade
My journey in Indutrade 2003 2021 2024 Began at Gustaf Fagerberg AB in Managing Director Appointed Business Segment Leader Göteborg Gustaf Fagerberg AB • Various positions including sales, Key focus: product management, purchasing and logistics, and business area manager for • Ensure the acquired co
Slide 63: My acquisition role and objective
My acquisition role and objective 2024 • Strategic acquisition plan and assessment Appointed Business Segment Leader • Develop and maintain a pipeline of internal leads • Proactively build relationship with potential targets Acquire at least one new company into my • Support the acquisition projects
Slide 64: Greatest assets in finding acquisition targets
Greatest assets in finding acquisition targets Our Managing Our customers directors People in our Business Segment Other contacts in the companies Leader industry Our suppliers Indutrade team 64
Slide 65: Building a pipeline of internal leads
Building a pipeline of internal leads ▪ Explore acquisition prospects near our Opportunistic leads existing companies ▪ White spot analysis ‒ Markets, Products, sub-segments Network of employees and partners ▪ Employing AI speed up market analysis and lead generation ▪ Our employees are our superior
Slide 66: Analysing aquaculture and add-on acquisition
Growth example Add-on example Analysing Add-on acquisition aquaculture Pemac AS ▪ Investigation of what products are used within aquaculture ▪ The first interaction between Fagerberg AS and Pemac AS occurred at an exhibition ▪ Identifying possibilities ▪ Complementary product portfolios and covering
Slide 67: Summary
Summary ▪ We stay the course! ▪ Continue to acquire Indutrade type of companies ▪ Opportunistic and open minded ▪ Leverage the team ▪ Strengthen pro-active lead generation ▪ Stepwise increase no of acquisitions per year 67
Slide 68: MT indutrade
MT indutrade
Slide 69: Joakim Skantze, Senior Vice President Life Science
Joakim Skantze Senior Vice President Life Science
Slide 70: My journey within Indutrade
My journey within Indutrade Pre Indutrade Indutrade ‒ Electrical Engineer, KTH Industrial Components Life Science ‒ Accenture ‒ Business Area Manager ‒ Business Area Manager ‒ Schneidler Grafiska AB ▪ Net sales: 2.5 BSEK → 6.2 BSEK ▪ Net Sales: 7.4 BSEK 2024 ‒ Traction ▪ EBITA margin: 10.6% → 15.9%
Slide 71: Our Life Science companies
Our Life Science companies Net Sales, % 14% 32% 17.8% Organic growth EBITA CAGR EBITA margin 5Y avg. -5Y 5Y avg. Share of net sales per geographical region 2024 20% 26% 46% Sweden Rest of Nordic Rest of Europe Split by company size, Q3-25 YTD 1 10 24 >500 MSEK 200-500 MSEK <200 MSEK 71
Slide 72: Strong position within Pharma production
Strong position within Pharma production Manufacturing & Trading & assembly Manufacturing contracting • Supplier to Pharma manufacturers and CMOs • Flow related products, assemblies and SU-systems • High validation and quality driven processes • Huge market and good underlaying growth trend Examples
Slide 73: Examples Pharma applications
Examples Pharma applications Single Use Flow components Purification skid 73
Slide 74: Niched Medical companies
Niched Medical companies Diagnostics & Diabetes Medtech Health Care / Aid care Labtech • Diversified market and multiple segments • Our position: stronger in the Nordics but many geographical white-spots • Interesting areas: Diagnostics and Labtech, driven by therapies like cancer treatment, diabete
Slide 75: Examples Medical applications
Examples Medical applications Diabetes Medical technology Laboratory equipment 75
Slide 76: Strong and lean international team
Strong and lean international team ▪ Driven by a strong Purpose ▪ Enable Business Segments to be engines! ▪ Professional owner and Partner ”We have the freedom and autonomy to act and develop the BA ourselves, with good support of the Indutrade framework and network.” 76
Slide 77: Leading a Business Area within Indutrade
Leading a Business Area within Indutrade Develop Acquire 77
Slide 78: Developing towards the ideal company
Developing towards the ideal company High Growth Growth performing companies candidates cash generators Management Team Market opportunity Stable performers Leadership Focus and offer Internal structure Problem Loss companies makers
Slide 79: Developing our people
Developing our people Indutrade Academy IBP / ILP / IBCP Culture Succession planning Internal vs external Development plans Judgement / Drive / Influence 79
Slide 80: Proactive acquisition agenda
Proactive acquisition agenda Opportunity-oriented approach Bottom up Top down Leveraging the business Acquire Prioritised areas segment structure 80
Slide 81: Driving value creation in a structured way
”Driving value creation in a Business Area structured way” FY evaluation and next year activities Boards Boards Budget FY evaluation Strategy and strategy process expectations Cluster Q4 Q1 meetings Business Area in various Business Area forms People development Q3 Q2 Company analysis and priorities
Slide 82: Key takeaways
Key takeaways Strong position in pharma Full responsibility for and medical with Lean international team developing our driven by a strong significant growth companies and value- purpose potential accretive acquisitions Full autonomy but benefitting from the Indutrade infrastructure 82
Slide 83: MT indutrade
MT indutrade
Slide 84: Panel: Fredrik Alexandersson, Jan-Erik Larsson, Declan Field, Anders Hegaard
Fredrik Alexandersson Jan-Erik Larsson Declan Field Anders Hegaard Managing Director Managing Director Business Segment Leader Business Segment Leader Miclev AB Alnab AB prev. Managing Director Managing Director ESI Technologies Group Klokkerholm Karosseridele A/S
Slide 85: MT indutrade
MT indutrade
Slide 86: Q&A
MT indutrade Q&A
Slide 87: MT indutrade
MT indutrade