Green Landscaping Group (GREEN) ABGSC Investor Days summary

Business overview and strategy

• Operates in ground maintenance and green space management, serving public and private sectors across six European countries.

• Market estimated at SEK 370 billion, with 65% of revenue from public sector contracts, providing stability and predictability.

• Decentralized business model empowers local entrepreneurs and supports margin enhancement through best practice sharing.

• Proven M&A strategy, targeting stable, profitable companies with strong corporate cultures; reinvests free cash flow into acquisitions.

• Ownership is concentrated, with board, management, and entrepreneurs holding about 50% of shares.

Financial performance and market conditions

• Year-to-date growth is flat, with 9% M&A-driven growth offset by -9% organic decline, mainly due to tough markets in Sweden and Norway.

• EBITDA margin declined to 7.5%, below the 8% target, impacted by negative organic growth and a SEK 21 million project write-down in Norway.

• Operating cash flow remains strong at SEK 390 million, with a capex-light model and low working capital needs.

• Leverage stands at 3.0x, above the preferred 2.5x, but expected to improve as the company enters historically strong quarters.

• Margin improvement initiatives include closing loss-making entities and focusing on cost and contract structure, especially in Sweden and Norway.

Market outlook and operational focus

• Structural growth drivers remain, with expected annual market growth of 3%-5% over the next five to seven years.

• No significant behavioral changes observed between public and private customers or between maintenance and landscaping segments.

• Maintenance segment offers higher stability; current portfolio is balanced 50/50 between maintenance and landscaping.

• Margin prioritized over volume, with underperforming entities focusing on profitability rather than growth.

• DACH region (Germany, Austria, Switzerland) prioritized for M&A due to high margins and growth potential; Nordic M&A on hold until margin stability improves.