Byggmästare A J Ahlström H (AJA) DNB Carnegie Micro Cap Day Conference summary

Portfolio overview and investment strategy

• Focused portfolio of six holdings, with a preference for significant ownership and active involvement.

• Core holdings represent 76% of net assets, with ongoing search for a fourth core holding.

• Utilizes a strict 4M filter (man, moat, money, market) for both new and existing investments.

• Targets IRR of 20% and invests SEK 50–300 million per ticket, often in tranches.

• Maintains strong liquidity, avoids debt at the holding level, and leverages cash for flexibility.

Core holdings and recent developments

• Safe Life, the largest holding, has grown through 51 acquisitions since 2020 and is transitioning to a recurring revenue model.

• DP Patterning has scaled rapidly, opening a new factory and increasing turnover from SEK 12 million to SEK 122 million in the first half of the year.

• Green Landscaping is undergoing governance changes, including a new chair and CEO, to improve growth and margins.

• Divested GT Media to Bonnier News and continues to streamline the portfolio.

Infrea and Netel merger

• Infrea and Netel are merging to achieve greater scale, diversify operations, and address industry megatrends like infrastructure, power, and digitalization.

• The merger will create a group with 1,200 employees and 60 offices, aiming for a balanced contract portfolio.

• SEK 50 million in synergies expected, mainly from cost reductions in offices, group functions, and procurement.

• A directed share issue in Netel will reduce group debt by SEK 200 million.

• Merger completion is planned for the first week of November.