Green Landscaping Group (GREEN) ABGSC Investor Days summary

Market overview and growth drivers

• Operates in grounds maintenance, green space management, and landscaping for urban areas, with a highly fragmented and local market structure.

• Market has shown steady annual growth of over 4% for more than a decade, driven by population growth, urbanization, and increasing demands for safety, security, and attractiveness of outdoor spaces.

• Climate change is creating both immediate and long-term demand for maintenance and preventive services, further supporting market growth.

• The addressable market is estimated at SEK 350 billion and expands as new countries are added.

• Local reputation and knowledge create significant entry barriers, limiting external competition and supporting the dominance of small, local companies.

Business model and strategy

• Transitioned from a centralized to a decentralized model, allowing subsidiaries to retain local brands and autonomy, which improved financial performance.

• Focuses on acquiring top-tier, culturally compatible companies with strong local presence and profitability.

• Aggressively expanding in the DACH region (Germany, Austria, Switzerland) while remaining opportunistic in the Nordics and active in the Baltics.

• Targets 8–10 acquisitions per year, leveraging strong internal processes and financial capacity.

• Aims to become the European leader in the sector, with the DACH region as a strategic centerpiece.

Financial performance and targets

• Achieved an EBIT margin of 8.5%, above the industry average of 4–5%, and revenue growth exceeding 10%.

• Considers revising financial targets to better reflect current and future potential, as current targets set at IPO are now being consistently surpassed.

• High-margin acquisition opportunities exist due to the large number of profitable companies in the market.

• Organic growth has remained resilient at 3–5% despite broader market challenges, attributed to favorable megatrends and the quality of acquired companies.

• Cash flow generation is strong due to the service-based model, low capital requirements, and predictable seasonal variations.