Hello and welcome to Idun Industrier's conference call for the fourth report of 2025. My name is Carl Korsheden and I work here as an equity research analyst at DNB Carnegie with a focus on these more acquisition-driven companies.

With me here in the studio, I have the CEO and CFO of Idun, which will talk a little bit about the quarter, and then we will follow up with a Q&A session during which you are highly encouraged to participate. We have our chat function, if you type your questions there, I can read them up here in the studio to the management team.

With that, I hand over to you and fourth quarter.

Welcome to the presentation of the fourth quarter. I will start with a brief introduction or repetition, if you will, of Idun Industrier, who we are.

We are an industrial group of company with a turnover of some 2.3 billion Swedish and an EBITA slightly above 300 million. Idun is primarily a Swedish or Nordic company.

Three quarters of sales is generated in Sweden and more than 90% in the Nordic countries, and we do have subsidiaries in Norway, Finland, Denmark, and all three Baltic countries. We consist of two business areas, Manufacturing and Service and Maintenance, and we have 20 group companies.

We invest in manufacturing, industrial trading companies, and industrial services companies. If there is one thing also to remember about Idun, it's that we really use the pilot school.

We have in the Board of Directors of Idun, everyone is a shareholder owner of Idun. In the mother company, all of us have the bulk of our private capital invested in Idun shares.

If we look at the group companies, all the 20 group companies, we have co-ownership in each respective company, in the management team in 100% of the companies, and in total we have more than 100 owners, managing directors and other key employees in the companies. We think that in Idun Industrier we have a unique link in terms of alignment of interest from you as external shareholders and down to the management group in each of the Idun group companies.

Over to the fourth quarter and some highlights. Net sales increases by 8.4%, EBITA up 2% to 76 million in the quarter.

We have high cash conversion. We have earnings per share that increases more than 20%, and in this quarter we made two investments.

One is add-on investment in MEAB Stainless, a company based in Malmö, trading company with mainly stainless steel fasteners, some specialized equipment and components. This was an add-on acquisition to HNV Barrier, our group company in Gothenburg.

It should be said that there is a really good strategic fit between Barrier and MEAB. Then we bought 80% of the shares in Trikåby, it's a new Idun group company, and Trikåby is the leading Swedish manufacturer of knitted fabrics and jersey fabrics.

Quite a specialized position where they control the whole value chain, and we are really proud of welcoming these two companies to the Idun family. If we take a look from the first investment in 2014, we have continuously invested in two to four companies, either new group companies or add-on acquisitions per year.

It has been a rather stable development. If we look back five years, for example, 2020 to 2025, EBITA has increased 30% per year on average.

Sometimes the pace is faster, sometimes like this year it's slightly slower because we are hopefully towards the end of not a recession, but a weaker market. If we take a look at how each quarter and the rolling 12 months, what it looks like for the six six years, again we see a quite stable growth year-on-year and quarter-by-quarter.

To the right in this picture, we also break down the sales growth in 2025 compared to 2024, and we see that this 8.4% consists of 4.8% is organic growth and the rest comes from investments in new group companies. The same picture, but with operating profit, again, a rather stable development year per year, but here we can see 2025 compared to 2024 that organically it was actually a slight decrease compared to last year, but including acquisitions growth by 2%.

Here this slide, the message here is really stability. We see rolling 12-month figures for five years for sales, gross profit, and operating profit.

We see the gross profit is really stable at around 60%. If we look at the EBITA figures, it's not like it's going up and down.

It's really gradualist and it's growing in a stable fashion from quarter to quarter. That is the message in this picture.

With that, we will also now look at the business areas. Over to you, Oskar.

Thanks. Starting with Manufacturing, sales is up 8.1%, or it goes from 337 million to 364 million, driven mainly by acquisitions and and a margin that is slightly below last year with 11.1% compared to 11.7.

Barrier and the add-on acquisitions MEAB that Henrik already mentioned performed well in the quarter and also for the full year 2025. Intermercato, on the other hand, load attachments for forestry, material and handling, and so on, experience a weak market and and demand, both the quarter and the full year were a bit disappointing, but we see that the figures will turn in 2026.

Looking at Service and Maintenance, here we have a sales growth of 8.8% and mainly organic growth in in sales and EBITA margin somewhat lower with 16.1% compared to 17.4. Stegaföretagen, that deliver car washing services, among other things, have had a strong performance both in the quarter and for the full year of 2025 and and driven by good car wash volumes.

We have previously mentioned Triton. They service and and manufacturing rollers for the process industry.

They've had a challenging 2025, but we have now reduced costs in the quarter and had a better profitability than compared to a weak ending of 2024. Also mentioned we we see that the customers within the process industries Many of our companies within this area, for instance, Stortorgets Gummiteknik, we have Triton, we have LEMA, service this area, and we saw that they have reduced maintenance somewhat or slightly compared to previous years, but we will we see that this will increase in 2026 compared to 2025.

We had a good cash conversion in the quarter, around 84%, and for the full year, around 59%. Going ahead, we should be able to reach 60% or more in cash conversion.

Looking at net debt, we increased net debt in the quarter with around 150 million SEK, mainly due to the new acquisitions mentioned by Henrik, Trikåby and MEAB Stainless. Our interest costs continued to decrease and decreased with 4 million in the quarter, and we see that we will lower the interest cost with another 5 million here in in Q1.

Going ahead here in in the second quarter, we will continue to evaluate our bond that is callable from the 30th of of June. Looking at our financial targets, we have a financial target of EBITA growth of 15% over year, over time, and we can see that we didn't manage to get at this level for 2025.

With our current or the the acquisitions made and also Moldex made here in in Q1 and together with organic growth, we see that we will be back on track here in 2026. Net debt to EBITDA should be lower than 3.5, and reported now at the end of 2024 it's 2.4, but then not including EBITDA from the acquisitions made.

We have a dividend policy maximum of 10% of the yearly profit, and it has been between 8% and 10%, and we will have a dividend of 1.15 SEK here at the annual general meeting in in the spring.

Last slide, and let's repeat some key takeaways and say some words about the future. Fourth quarter for Idun: net sales increased by 8.4%, EBITA increased by 2%, earnings per share more than 20%.

In the quarter, we made two investments, MEAB Stainless and Trikåby, and also in January, as Oskar mentioned, we invested in Moldex Sweden, which is a company that offers services and spare parts to the sawmill industry and for planes, they have the leading position in Sweden. We're happy, very happy with that investment as well.

If we look ahead, we saw that in the end of 2025, it was a continued subdued economic environment and it looks quite different from company to company. We have 20 group companies.

Some of them meet quite strong headwinds, whereas for others, looks quite good, it's mixed signals. Overall, we do feel that there are positive indications, and it's becoming gradually more positive over the year, and we see specifically that we will be able to increase the operating margin in 2026 compared to 2025.

Again, we have a very strong and stable group of companies. They are prepared to take advantage of the year to come.

Idun Industrier centrally, we have a strong financial position, and we see continued opportunities for more investments. I think that's it.

Thank you very much for that. Again, if you have any questions, feel free to type them in the chat, and yeah, we'll try to answer them here in the room.

If we start off maybe on the Service and Maintenance division, we saw quite a nice, I guess, recovery here in the quarter after a few quarters where it has been a bit sluggish. Is there anything to highlight there?

Is it mostly related to, you talked about some cost savings here taken effect in some companies recently, but maybe also on the demand side, if that has something to do with it, or yeah, how would you break that up in terms of the improvements?

I guess it could be mentioned Triton has performed strongly in the quarter compared to Q4 2024. That is certainly one part of it, to mention one example.

Also, Stega performs very well.

On Triton, then, maybe, is that primarily a function on the margin side, from taking these costs, etc., or are you also seeing any improvements on the demand side for that business?

It's both, but short-term, it's certainly we have taken out quite a lot of costs during the year in Triton, because we had to. In parallel, the management there has worked very actively with sales, meeting customers.

We have employed new personnel actually there, at the same time taking out some employees and adding in the sales area. It's both, but the short-term effect, of course, has more to do with cost reduction.

Yeah. Cool.

Maybe if you have any comments on the sort of general market situation overall. You obviously have a lot of different companies with different growth drivers, etc., etc.

If we just try to generalize a little bit, you obviously saw quite a step change here in organic growth coming up to almost 5%, and it was I believe minus 2 1-2% or so in Q3. Would you say that sort of change is reflective of how the underlying market has developed, or are there any extraordinary items or extraordinary circumstances here we should keep in mind?

As Henrik mentioned, we we had a good volumes within car wash during the full 2025, both for the full year, but also in in the Q4, late Q4. That's contributed positive.

I would say that, yes, we believe that during 2026, it is hard because, as you mentioned, you have very different companies and, by purpose, exposed to different market situations. In general, if we are to generalize, it is gradually becoming better.

If You never know with Iran and other if there will be a new crisis of some kind, but if not, we believe that gradually it will become better during 2026.

That's encouraging. Mostly I guess it's the Service and Maintenance division, but overall, you have a few companies exposed to the Nordic process industry.

Are you seeing any signs of improvement there, or is that still sluggish, and hopefully demand will pick up there as well, or?

I guess that is still sluggish. These companies, the sawmills, for examples, and paper mills, have been reducing personnel in the fall, and it's not like they're en masse starting to employ new ones yet.

I guess that is still to be seen. Yeah.

We talk a lot about this. There's both the defense-related exposures, but also energy grids, we have all this AI investments, etc.

Do we have any angle there in Idun? Do you have any of your companies anyhow exposed to those, I guess, more fast-growing segments?

2B Best Business for instance, have a lot of articles for the power grids and electrification in general.

Actually we do have some companies with defense-related customers, but it is not the case that that is a very big sector for us. That's actually not so.

You obviously mentioned also in the CEO letter that you expect margins to gradually expand over time. Is that a function more of, I guess, this cost savings you have been taking recently?

Is that more of a near-term statement, or is that more long-term, and if so, what do you think will be the key levers to over time increase that margin?

I think there are several factors here, actually. One is the cost reductions, as you mentioned.

The other is that we work, and we always do, actively both with pricing towards customers, but also purchasing to work on the gross margin side. The third thing, in addition to expenses and gross margin, would be that if you look at the three most recent acquisitions, MEAB, Trikåby, and now Moldex Sweden, all these three companies jointly adding some 50 50 million SEK in additional EBITA, have actually higher EBITA margin than the Idun group before they joined.

There are lots of reasons why we feel rather confident that we should be able to increase at least somewhat the EBITA margin.

Yeah. That's clear.

I guess maybe on the topic of M&A, it's been, here just in the last couple of months, we've seen quite a step change in M&A pace. Is that a coincidence that all of a sudden you have a couple of processes happening to get closed and quite a similar window, or have you changed anything internally, or, yeah, how?

No, it is actually a coincidence. When you work with investments in the way we do, and we source mostly the opportunities ourselves, it is often the case that sometimes we make many investments in a short period of time, and then it could go sometime in between, and that's okay with us.

Because for us, it's more important to make the right investments that are suitable for Idun and not make as many as possible. Also, I think I made that comment before, we have to have discipline in walking away from the table if we feel during a due diligence process that something is not right.

For these reasons, it's actually very difficult to say exactly when there will be the next investment. We are very happy with the three most recent ones.

Yeah. Do you see now following all these deals in quite a short window, do you still feel you have the financial capacity and the pipeline to execute any further deals, perhaps during H1 or somewhere in the near term, or?

Absolutely, and yes to both questions. We both have the financial resources, we think that the leverage is fully under control, and we have the pipeline to do that.

Whether that will be in the first year or later, I cannot say, of course, but that we see opportunities and that we will be making more investments, absolutely.

On these recently acquired companies, is there any seasonality there we should keep in mind, or is it a fairly even split throughout the year?

Fairly stable between the quarters.

Yeah. Thanks.

Also if we look a little bit into the future, maybe Q1, Q2 or so, is there anything to be said in terms of the comparisons from a year-on-year point of view, anything that's standing out we should keep in mind, or similar, or is it business as usual?

Maybe I would say that, and that is linked to what I said in the presentation, that we believe that 2026 will gradually become stronger. In that comment, I guess you see that If I would have to bet today, will Q1 be better than Q1 last year or Q2 better than Q2, I would place my bet on Q2.

We don't give specific forecast, but we think it should gradually improve.

Got it. Maybe I take a final question from my side if we look at the Manufacturing division.

In this quarter, I think the Service and Maintenance was probably the clearer step-up, our Manufacturing still developing well, but somewhat lower margins year-over-year. What is the key reason for that?

Is it mix, or any of the companies coming into the group having dilutive margins, or, yeah, how should we view that when we model ahead?

I would say that, and please complement, Oskar, but this is, I'd say, a couple of company-specific reasons. Intermercato had a tough quarter, for example, and so did Sjöbergs.

We are 20 group companies, if you have fewer per business area, if you have a couple of them with more headwinds in a quarter, you can see it. I'd say, I think that is the reason.

Thank you very much. That was all from my side.

I don't think we have any further questions more than the ones I've already asked here, yeah, if you have any final remarks or so, please go ahead.

No, only that we think it was a decent, solid, good quarter, and we feel very confident when we look into 2026, and thank you for watching.

Thank you.