Duroc (DURC) investor relations material

Executive summary

• Strong cash generation and structural actions characterized the year, with a clearer group structure and improved underlying profitability in the Core Business.

• Ambition to grow Core Business revenue by at least 20% annually through organic and acquired growth, targeting an operating margin above 10%.

• The year was marked by divestments of non-strategic units and acquisitions of profitable businesses, strengthening the financial position.

Financial highlights

• Net sales decreased by 8% year-over-year to SEK 2,767.4m (3,013.8m); organic growth was -3%.

• Adjusted EBIT was SEK 27.8m (33.3m), with a margin of 1.0% (1.1%).

• Reported EBIT was SEK -82.9m (32.1m), impacted by SEK 109.0m in restructuring costs.

• Earnings per share were SEK -2.59 (-0.05).

• Operating cash flow was SEK 138.3m (129.2m).

• Net debt excluding IFRS16 lease liabilities was SEK -60.1m (net cash) compared to SEK 61.8m.

• Equity at period end was SEK 1,042.4m (1,112.3m), with an equity ratio of 52% (58%).

Outlook and guidance

• Core Business expected to continue developing in line with expectations, with a budgeted operating profit of about SEK 100m before central costs for the coming year.

• Trading Companies and Industrial Companies have favorable prospects; Broddson and Duroc Rail are well positioned.

• Non-strategic units remain challenging but show signs of improvement.