I-Tech (ITECH) GoCo Investor Day 2025 summary

Strategic direction and market overview

• Focus on maritime shipping, addressing fuel efficiency and emissions through antifouling solutions.

• IMO targets net zero emissions by 2050, driving demand for energy-efficient technologies.

• Market opportunity centers on shipbuilding and maintenance, with 2,000 new ships and 20,000 dry dockings annually.

• Asia dominates shipbuilding and dry docking, with China, Japan, and Korea as key markets.

• Regulatory compliance is resource-intensive, especially in fragmented leisure boat markets.

Product innovation and business model

• Selektope, based on medetomidine, offers non-lethal, highly effective barnacle prevention at low concentrations.

• Commercial sales began in 2014; now used on 3,000 vessels, with products available from six of nine global paint companies.

• Asset-light model with outsourced production, focusing on R&D and close collaboration with paint companies.

• Revenue streams include product sales and IP licensing; 10 customers represent nearly the full addressable market.

• IP portfolio remains strong despite original patent expiry, with ongoing formulation and production patents.

Financial performance and growth

• Revenue grew from SEK 30 million in 2018 to SEK 180 million in 2024, with a 36% CAGR.

• Gross margin at 53%, operating profit SEK 45 million, and free cash SEK 100 million in 2024.

• Operating costs have declined, with further improvements targeted.

• Dividend policy initiated in 2023, with a proposed increase to SEK 1.75 per share in 2024.

• Asia accounts for 97% of sales; Europe is only 3%, limiting short-term regulatory risk from EU reapproval.