Latour (LATO) investor relations material

Executive summary

• Organic growth in order intake and net sales was achieved across several business areas despite challenging market and geopolitical conditions.

• Multiple acquisitions were completed, adding SEK 1.8 billion in annual sales and strengthening core business areas.

• Net asset value per share decreased by 1.9% to SEK 207 at the end of June, underperforming the SIXRX index.

• Listed portfolio value declined by 4.2% in H1, while wholly owned industrial operations performed well.

• Profit after tax fell to SEK 2,290m from SEK 3,651m year-over-year.

Financial highlights

• Order intake increased by 9% (3% organic), and net sales rose 9% (2% organic) year-over-year in Q2; H1 net sales reached SEK 13,980m, up 11%.

• Adjusted operating profit for Q2 was SEK 989m (up 4%), with an operating margin of 13.9%.

• EBIT margin for the last twelve months was 14.1%, and return on operating capital was 14.3%.

• Net debt increased to SEK 18,521m, mainly due to acquisitions and dividends, with an equity ratio of 79%.

• Total return for the listed portfolio was -4.2%, compared to the SIXRX benchmark at 2.3%.

Outlook and guidance

• Order backlog increased, supporting a stable net sales outlook for the remainder of the year.

• Management remains confident in navigating market uncertainty, with a strong order book supporting future invoicing.

• Financial targets remain: annual growth above 10%, operating margin and return on operating capital above 15%.

• Continued investments in companies to enable future growth and value creation.

• Acquisition activity may remain subdued due to economic uncertainty, but financial strength allows for continued investment.