Inission (INISS) CMD 2025 summary

Strategic direction and business model

• Focus on high-end, customized industrial electronics through two business areas: EMS and Enedo, with strong value-driven culture and sustainability integration.

• Ongoing efforts to achieve full CSRD compliance by 2025, with sustainability goals aligned to business objectives.

• Decentralized structure with company managers responsible for P&L and incentivized on profit and cash flow, supported by centralized sourcing and sales.

• Expansion of employee shareholding and annual warrant program to align interests.

• Transition of the Tunis factory from Enedo to EMS to enhance manufacturing capabilities and customer offerings.

Growth, acquisitions, and market positioning

• Achieved 25% average annual growth since 2015, with a strategy of one acquisition per year and a focus on both organic and acquisitive growth.

• Targeting 10% organic growth (currently at 4%) and 15% total annual growth (10% organic, 5% acquisitions) mid-term.

• Actively scouting for acquisitions in northern Europe, especially Denmark and northern Germany, with a pipeline supporting at least one acquisition per year.

• Recent investments in factory upgrades and capacity expansion, with future CapEx expected to slow as utilization increases.

• Well-diversified customer base across industrial, lighting, infrastructure, and transportation sectors, with no single customer exceeding 10% of sales.

Financial performance and targets

• 2024 revenue near SEK 2.2 billion, with EBITDA margin at 5.8%; 2025 targets set at SEK 2.2 billion revenue and 6% EBITDA margin.

• Mid-term targets: 9% EBITDA margin, net debt/EBITDA below 2.5x, equity ratio above 30%, and dividend payout up to 30% of earnings.

• Strong cash conversion (~80%) and disciplined financial management support ongoing investments and M&A.

• Net working capital optimization ongoing, with inventory levels decreasing and CapEx at 2% of net sales.