Green Landscaping Group (GREEN) ABGSC Investor Days summary

Business model and strategy

• Operates a decentralized model with 56 entities across six European countries, each maintaining local brands and entrepreneurial leadership.

• Focuses on knowledge sharing and rapid improvement of subsidiaries to drive profitability and margin improvement.

• Growth is accelerated through a disciplined M&A strategy, targeting 8-10 acquisitions per year, with a focus on stable, profitable companies and aggressive expansion in DACH.

• Acquisition targets are typically around SEK 100 million in sales and 10% EBITDA, with purchase multiples of 5-6x EBITDA.

• Emphasizes cultural fit, leadership quality, and strategic alignment in addition to financial performance when acquiring companies.

Market environment and performance

• Operates in a SEK 350 billion market with 4% annual growth, primarily serving government and municipal clients, providing stability and predictability.

• Market characterized by steady growth, low cyclicality, and favorable megatrends like urbanization and climate adaptation.

• Long-term contracts (typically four years plus two-year extension options) and low cyclicality shield the business from economic swings.

• Urbanization and climate change are key demand drivers, with milder winters expected to extend profitable landscaping seasons.

• Increased competition from construction sector entrants is seen as temporary, with no permanent impact on project wins.

Financial performance and targets

• Achieved industry-leading profitability, exceeding 8% EBITDA target for three consecutive years.

• Q1 2025 net sales up 4% to SEK 6,192m; EBITA down 8% to SEK 477m; cash flow from operations at SEK 532m.

• Q1 2024 saw a 12% sales decline and margin halved to 3.2% due to the mildest winter in 15 years, but cash flow remained stable at SEK 532 million.

• Financial targets: 10% annual sales growth, 8% EBITA margin, net debt/EBITDA ≤2.5x, and ~40% profit as dividends (no dividend for 2024).

• Maintains stable leverage around 2.5-2.6x, with ongoing deleveraging through operating cash flow and flexibility for M&A.