Idun Industrier (IDUN) investor relations material

Business model and investment approach

• Operates as a group of 22 independent companies, mainly in manufacturing and service/maintenance, with over 90% of sales in the Nordics and about three-quarters in Sweden.

• Focuses on acquiring companies with high market share in niche industrial sectors, avoiding consumer goods, biotech, and medical services.

• Employs a 'pilot school' model, encouraging management and key employees to retain minority ownership and invest in their own companies, fostering alignment and engagement.

• Prefers direct, bilateral deal-making with company owners, conducting in-house due diligence and maintaining a steady pace of 2–4 acquisitions per year.

• Targets companies with strong, long-term profitability, healthy cash flows, and robust margins, with an average gross margin of 60% and EBITDA margin of 14%.

Recent performance and financial developments

• Group profit grew by 11% in the first half of the year, though organic operating profit declined by 3.6%.

• Acquired three new companies: Mouldex Sweden (sawmill services), AGB Services (press tool calibration), and Nordbergs Tekniska (special technical polymers).

• Early redemption of SEK 220 million bond, replaced with bank debt, expected to reduce annual interest expenses by nearly SEK 8 million.

• Cash pool implementation and currency management improvements have enhanced balance sheet efficiency.

• Some group companies performed strongly, while others faced a challenging start to the year.

Strategic outlook and M&A plans

• Maintains a cautious optimism for the second half, expecting improved margins and gradual market recovery.

• New acquisitions, especially those with higher EBITDA margins, are expected to boost group profitability.

• Plans to increase add-on acquisitions as existing group companies mature and management teams become more experienced in M&A.

• Over the next five years, anticipates expanding beyond the Nordics, with a likely increase in brokered deals for international acquisitions.

• Committed to maintaining strict investment criteria and risk awareness, even as geographic scope broadens.