Slide 1: MEKO April – June 2025
MEKO April – June 2025 July 25, 2025
Slide 2: Q2 2025 – Cautious market and initiatives to increase profitability
Q2 2025 – Cautious market and initiatives to increase profitability Lower demand in cautious market impacted sales and profitability across our markets New efficiency measures launched, targeting an additional 100 MSEK in savings annually Efforts to increase sales - renewed focus on exclusive brands
Slide 3: Building a stronger MEKO – and taking it further
Building a stronger MEKO – and taking it further Degree of Degree of implementation benefit realization Cost reduction and efficiency - Consolidation of Branch network in (NO/SE) • EBIT improvement of SEK ~200m - Cost reduction and org simplification (SE/FI/DK) realized to date in program - New/auto
Slide 4: Strategic logistics upgrade near completion
Strategic logistics upgrade near completion • All warehouses were completed on time • We also went live in Norway in Q2 • All expected to be fully operational in Q3 • Will result in a significant upgrade of our logistics 4
Slide 5: Reinforced focus on exclusive brands
Reinforced focus on exclusive brands • Clear demand among all customer groups • Expanded product range across all markets • From premium to more affordable brands • Strong leadership under Henrik Pettersson • Fully aligned with MEKO’s sustainable growth strategy 5
Slide 6: Milestone in advancing MEKO's sustainability strategy
Milestone in advancing MEKO’s sustainability strategy • MEKO climate targets approved by SBTi • Commitment to reduce all emissions by 2050 • Targets set for both near-term and long-term progress • Intensified efforts to turn ambitions into concrete action 6
Slide 7: Strong demand for successful SEK 1.25 billion bond issue
Strong demand for successful SEK 1.25 billion bond issue • Proactive approach for managing maturity debt profile, proceeds used to finance tender offer of the existing 2021/2026 bonds • Oversubscribed bond reflects confidence in MEKO’s business fundamentals • Initial aggregate amount of SEK 1.25 bil
Slide 8: Subdued performance in the second quarter
Subdued performance in the second quarter Negative organic sales growth due to continued macro-economic uncertainty Gross margin impacted by a changed sales mix and intense price competition in Denmark and Poland Declining adjusted EBIT following lower volumes and gross margin pressure Rolling
Slide 9: Gross margin impacted by price competition and mix effects
Gross margin impacted by price competition and mix effects Gross margin (%) bridge 2024 Q2 to 2025 Q2 • Negative effect from strong price 42,9 41,8 competition in Poland and Denmark 1,0 0,1 0,1 0,3 • Supplier bonus accruals adjusted to reflect lower anticipated FY volumes • “Other” include a 1.1 ppt
Slide 10: Profitability impacted by low volumes and price competition
Profitability impacted by low volumes and price competition Adjusted EBIT (SEK M) bridge 2024 Q2 to 2025 Q2 • Poland/the Baltics impacted by intense price competition and effects 357 from acquisition of Elit Polska 63 • Denmark burdened by a cautious 59 market and fierce price competition 49 • Swede
Slide 11: Solid financial position and strong liquidity
Solid financial position and strong liquidity Net debt Net debt/ MSEK EBITDA* 5,000 12,0 x 11,0 10,0 4,000 Q2 net debt of 2,861 (2,545) MSEK 9,0 and a leverage of 2.7 times (excl 8,0 IFRS 16) 3,000 6.4 7,0 6,0 Net debt reduced by approximately 2,000 3.7 5,0 150 MSEK during Q2 3.4 4,0 2.7 3.1 2.5
Slide 12: Denmark – Soft outcome and currency headwind
Denmark – Soft outcome and currency headwind • Reported net sales growth of -14 per cent, of which -8 per cent organic. Sales impacted by strong competition and subdued demand • Adjusted EBIT declined primarily due to a lower gross margin and higher depreciation related to the new warehouse. Gross m
Slide 13: Finland – Challenging market and FX impacting development
Finland – Challenging market and FX impacting development • Reported net sales growth of -13 per cent, of which -7 per cent organic. Development affected by a continued cautious market and competitive pressure 8% • Adjusted EBIT impacted by a lower gross margin and temporary higher warehouse and IT
Slide 14: Poland/The Baltics – Competition weighing on sales and margins
Poland/The Baltics – Competition weighing on sales and margins • Reported net sales growth of 24 per cent, mainly driven by the acquisition of Elit Polska. Organic growth of 1 per cent, supported by volume growth in the Baltics • Adjusted EBIT burdened by lower gross margin, the Elit Polska acquisit
Slide 15: Sweden/Norway – Sales drop puts pressure on profitability
Sweden/Norway – Sales drop puts pressure on profitability • Reported net sales growth of -9 per cent, of which -6 percent organic. Net sales negatively impacted by generally low workshop activity and weak consumer sales in both Sweden and Norway 37 % • Adjusted EBIT declined mainly due to lower gros
Slide 16: Sørensen og Balchen – Lower sales due to cautious market
Sørensen og Balchen – Lower sales due to cautious market • Reported net sales growth of -10 per cent, of which -3 per cent organic. Weak market held back consumer demand and workshop 6% competition increased with more market players • The continued high profitability is mainly explained by effective
Slide 17: Q2 2025 – Cautious market and initiatives to increase profitability
Q2 2025 – Cautious market and initiatives to increase profitability Lower demand in cautious market impacted sales and profitability across our markets New efficiency measures launched, targeting an additional 100 MSEK in savings annually Efforts to increase sales - renewed focus on exclusive brands
Slide 18: Q&A
Q&A 18
Slide 19: We enable mobility - today, tomorrow and in the future
WE ENABLE MOBILITY - TODAY, TOMORROW AND IN THE FUTURE 19
Slide 20: Appendix
APPENDIX 20
Slide 21: Strong Group footprint
Strong Group footprint Market shares per geography Net sales per geography, 2025Q2 Denmark 28% Number of branches: 48 (25Q1: 48) Number of affiliated workshops: 907 (25Q1: 948) Finland 25% Number of branches: 157 (25Q1: 161) Number of affiliated workshops: 450 (25Q1: 437) Norway 25% Number of branch
Slide 22: Largest owners 2025-06-30
Largest owners 2025-06-30 Voting rights and share capitals, % LKQ Corporation 26,6 Swedbank Robur Fonder 8,9 Fjärde AP-fonden 7,9 Nordea Funds 4,6 Carnegie Fonder 3,5 Unionen 3,3 Eva Fraim Påhlman 3,1 AFA Försäkring 3,1 Vanguard 3,0 Dimensional Fund Advisors 2,8 Total 10 largest shareholders 66,8 Ot
Slide 23: Long term financial targets
Long term financial targets Sales growth Adjusted EBIT growth Annual sales growth of at least 5 percent Annual adjusted EBIT growth of at least 10 percent. - through a combination of organic growth and smaller acquisitions, but excluding selective M&A. Net debt/EBITDA Dividend policy Net debt/EBITDA