Bergman & Beving (BERG) SEB Nordic Seminar presentation summary

Historical milestones and growth

• Founded in 1906, listed on the stock exchange in 1976, and executed several spin-offs including Momentum Group, Lagercrantz, and Addtech, which now have significant market capitalizations.

• Recognized as a pioneer in the Nordic industrial sector, often referred to as the 'ancestor of stock market rockets.'

Business model and strategy

• Operates as an industrial compounder with a decentralized governance model, focusing on both organic and acquisition-driven growth.

• Prioritizes profit expansion over revenue growth, with a disciplined, rule-based acquisition process and capital allocation guided by a company-by-company strategy.

• Emphasizes acquiring highly profitable B2B companies in niche markets and maintaining profitability before pursuing top-line growth.

Financial performance and targets

• Achieved 23 consecutive quarters of increased EBITA, with an 11% year-over-year increase and an adjusted EBITA margin of 11.8%.

• Maintains a minimum target of 15% EBITA growth per annum, self-financed, and a minimum 45% P/WC ratio over a business cycle.