Ing-grad D.d. · ZSE:IG
Ing-grad D.d — IPO Roadshow (February 2025)
32 slides from Ing-grad D.d's IPO roadshow presentation, February 2025
Slide 1: IPO - Investor Presentation
IPO - Investor Presentation February 2025 We restore Croatia’s greatest heritage – Saint Mark’s Church, Zagreb
Slide 2: Disclaimer
Disclaimer This presentation was made by ING-GRAD d.d. (hereinafter referred to as “Company"). Its content may not be further distributed, duplicated or reproduced in whole or in any part, in any way. If the presentation is not intended for you, and you are in its possession, you are bound by the sa
Slide 3: Management Team
Management Team Branislav Brizar Miljenko Zovko Srđan Jončić Patrik Klarić Chief Executive Officer Board Member Board Member Board Member ▪ Founder and majority ▪ Board member ▪ Board member ▪ Board member owner of the responsible for responsible for sales responsible for Company since 1985 operatio
Slide 4: Agenda
Agenda 1 Introduction 5 2 Company Overview 9 3 Construction Sector Overview and Macroeconomic Outlook 13 4 IPO Considerations 19 5 Offering Structure and Timetable 25 6 Appendix 30 4
Slide 5: I. Introduction
I. Introduction We restore Croatia’s greatest heritage – Archbishop’s Palace, Zagreb
Slide 6: Company Snapshot
Company Snapshot Company Overview History of the Company ▪ ING-GRAD (the “Company”) is one of the leading construction companies in 1985 Branislav Brizar establishes a construction trade company Croatia, founded in 1985 and headquartered in Zagreb ▪ Company specializes in three key segments: (i) cul
Slide 7: Historical Financials
Historical Financials Key Financials Key Comments EURm 2021 2022 2023 2024 ▪ In 2024, the Company generated revenues of EUR 129 million, which Revenues 58.6 82.3 97.6 129.4 represents a 33% increase compared to previous year and is a continuation YoY % +11.5% +40.4% +18.6 +32.6% of the strong busine
Slide 8: Key Investment Highlights
Key Investment Highlights High Margins and Significant Recognized Brand with Diversified 1 Fast-Growing Construction Company 2 3 Dividend Potential Structure of Projects ▪ Revenues have been growing on average by ▪ Company achieves high cash and profit ▪ ING-GRAD has become the go-to company in 25%
Slide 9: II. Company Overview
II. Company Overview We restore Croatia’s greatest heritage – Mimara Museum, Zagreb
Slide 10: Business Segments (I) – Cultural Heritage Renovation
Business Segments (I) – Cultural Heritage Renovation Key Comments Projects & Clients ▪ ING-GRAD specializes in restoration and reconstruction of monumental Name / Year Description Client heritage of exceptional historical and artistic significance. This includes historically significant buildings, p
Slide 11: Business Segments (II) – Energy & Infrastructure
Business Segments (II) – Energy & Infrastructure Key Comments Projects & Clients ▪ With over three decades of experience working on a range of highly Name / Year Description Client demanding energy and infrastructure projects, ING-GRAD has successfully completed the entire energy production process
Slide 12: Business Segments (III) – Commercial & Residential Buildings
Business Segments (III) – Commercial & Residential Buildings Key Comments Projects & Clients ▪ The Company regularly carries out construction works on some of the Name / Year Description Client most notable commercial and residential buildings in Croatia. This includes different types of facilities,
Slide 13: Human Resources
Human Resources Workforce Development (2021-2024) Employee Structure (2024) 164 183 205 221 82% 76% 69% 72% 5 18% 24% 31% 28% 9 Operations 2021 2022 2023 2024 Support functions 10 182 Management Domestic employees Foreign employees 15 Contracting Bidding ▪ Out of 221 of employees in 2024, 147 employ
Slide 14: III. Construction Sector Overview and Macroeconomic Outlook
III. Construction Sector Overview and Macroeconomic Outlook We restore Croatia’s greatest heritage – Croatian State Archives
Slide 15: Development of Construction Sector in Croatia
Development of Construction Sector in Croatia Construction Sector Share in GDP by country 2003 Entry of comparable 2013 Croatia's accession to the EU countries into the EU 2008 Romania: 12.7% Slovakia: 9.1% Slovenia: 8.3% Poland: 8.2% 2015 Poland: 8.7% 2023 2003 Croatia: 7.7% Slovakia: 7.9% Slovakia
Slide 16: Overview of Damages from Zagreb and Petrinja Earthquakes
Overview of Damages from Zagreb and Petrinja Earthquakes ▪ In 2020, central Croatia was hit by two major earthquakes which played a major role in the momentum of the construction industry. The first earthquake, measuring 5.5 on the Richter scale, severely damaged Zagreb, and nine months later, a dev
Slide 17: Development of Key Materials Indices in Croatia
Development of Key Materials Indices in Croatia Armouring Steel Bars and Nets Steel Profiles and Plates Steel Bar B500B Steel Net B500B Steel profiles Steel plates Key Concrete Cement Types Key Comments ▪ Key construction materials that the Company uses are steel and concrete cement. Namely, the mos
Slide 18: Macroeconomic Outlook
Macroeconomic Outlook Real GDP Growth per Country (2019-2023 CAGR%) Real GDP Growth Forecast for CEE Countries 3.4% 3.4% 3.5% 2.9% 3.0% 2.8% 2.6% 2.4% 2.4% 2.4% 2.2% 2.2% 2.3% 2.3% 2.2% 2.2% 1.3% 1.4% 1.2% 0.9% 1.0% 1.0% 0.9% 0.3% Germany Czech Italy EU-27 Hungary CEE Romania Slovenia Poland Croatia
Slide 19: Comparison with Peer Group in Croatia
Comparison with Peer Group in Croatia Revenue and EBITDA in 2023 3-year Revenue and EBITDA CAGR 264.0 30.8 22.9% 22.6% 33.5% 30.5% 164.6 19.5% 19.8% 107.7 101.5 97.6 15.5 14.2 12.8% 9.5% 61.6 8.8 9.5% 5.9 5.8 2.5% 1.6% Revenue EBITDA Revenues EBITDA -0.3% KAMGRAD RADNIK GIP PIONIR ING-GRAD RADNIK GP
Slide 20: IV. IPO Considerations
IV. IPO Considerations We restore Croatia’s greatest heritage – Oktogon, Zagreb
Slide 21: Going Public
Going Public Rationale for Going Public 1 The Company plans to use IPO proceeds to finance strategic acquisitions with a focus on the geotechnical sector in Croatia, including other smaller construction-engineering operations 2 ING-GRAD intends to reserve a part of ownership of the company for key e
Slide 22: IPO Proceeds
IPO Proceeds Consolidation Potential of Geotechnical Industry in Croatia ▪ Through co-ownership in ING-JET (50%1), which is closely specialized in in the field of geotechnical activities, the Company identified consolidation potential in the geotechnical sector in Croatia ▪ Considering the large num
Slide 23: Trading Multiples of the European Peer Group
Trading Multiples of the European Peer Group Company name Country Market Cap EV EV/EBITDA P/E Dividend yield Free float Sweden 8,475 7,835 11.8x 18.9x 2.4% 83.7% Sweden 1,972 3,258 9.5x 14.4x 2.0% 57.6% Sweden 1,373 1,881 7.5x 12.0x 2.6% 90.9% Norway 1,652 1,485 6.3x 14.2x 5.7% 79.3% Switzerland 593
Slide 24: Valuation Expectations
Valuation Expectations Valuation Overview Key Valuation Comments Net Debt EqV in EURm Multiple 2024 EV In the valuation, we used average multiples of the European 2024 (100%) peer group, which is trading at 7.1x EV/EBITDA and 11.8x EV/EBITDA 7.1x 21.9 156.3 -5.5 161.8 P/E, and averaged the value for
Slide 25: Long-Term Financial Guidelines
Long-Term Financial Guidelines Return on Equity > 20% Payout ratio 33 – 67 % until 2028 Long Term EBITDA margin > 10% Long Term leverage < 1x EBITDA 25
Slide 26: V. Offering Structure and Timetable
V. Offering Structure and Timetable We restore Croatia’s greatest heritage – Erdödy Castle , Jastrebarsko
Slide 27: Offering Structure
Offering Structure Offer Type ▪ Initial Public Offering Issuer ▪ ING-GRAD d.d. (IG-R-A) ▪ Institutional Investors Offering in Croatia and EEA Distribution ▪ Retail Investors Offering in Croatia including Employees Listing ▪ Official Market of the Zagreb Stock Exchange Offer Size ▪ EUR 44 – 55 millio
Slide 28: Offering Timetable
Offering Timetable February 2025 March 2025 Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun 1 2 1 2 3 4 5 6 7 8 9 3 4 5 6 7 8 9 10 11 12 13 14 15 16 10 11 12 13 14 15 16 17 18 19 20 21 22 23 17 18 19 20 21 22 23 24 25 26 27 28 24 25 26 27 28 29 30 24 February – 6 March Book-building 6 March
Slide 29: Why is ING-GRAD unique to invest?
Why is ING-GRAD unique to invest? 1 High dividend potential (high margins, strong B/S, light CAPEX requirements for growth) 2 All-time high backlog and foreseeable medium-term growth 3 Accretive consolidation opportunities for growth 4 Excellent business mix with high operational leverage (lean busi
Slide 30: VI. Appendix
VI. Appendix We restore Croatia’s greatest heritage – Pula Amphitheatre
Slide 31: Historical Key Financials
Historical Key Financials in EURm 2021 2022 2023 2024 3y. CAGR Total revenue 58.6 82.3 97.6 129.4 30.2% Operating revenue 57.5 81.3 97.1 120.9 Other revenue 1.1 1.0 0.5 8.5 Material costs 45.7 64.6 66.5 92.1 26.3% Cost of subcontractors 39.2 54.1 59.6 75.2 Other material costs 6.5 10.5 6.9 16.9 Pers
Slide 32: Hvala na pažnji!
Hvala na pažnji! Obnavljamo najvrjednije što Hrvatska ima – Pulski amfiteatar