SinterCast (SINT) ABGSC Investor Days summary

Business overview and technology

• Developed technology for compacted graphite iron (CGI), enabling stronger, lighter, and more efficient engines for heavy-duty applications.

• Business model is royalty-based, with 95% recurring revenue from production fees and consumables.

• High scalability with SEK 5 million revenue and SEK 1.5 million operating result per employee; operating margin above 30%.

• Over 1.5 million engines produced annually using CGI, with major customers in commercial vehicles.

Market position and environmental impact

• CGI engines deliver up to 8% fuel savings and significant CO2 reductions, saving 10 million tons annually and 66 million tons to date.

• Main market segments: heavy-duty trucks (50%), super duty trucks (30%), full-size pickups (notably Ford F-150), and off-road applications.

• CGI adoption is driven by stricter emissions regulations and the need for higher engine pressures.

Industry trends and future outlook

• Electrification in heavy-duty vehicles remains minimal; diesel dominates, with future growth in renewable fuels and hydrogen.

• OEMs are shifting focus from powertrain type to energy source, emphasizing clean fuels for internal combustion engines.

• CGI penetration in new engines expected to reach 80% by 2028–2029 as more OEMs adopt the technology to meet Euro 7 standards.

• Industry leaders (Toyota, Ford, Volvo) foresee a long-term mix of powertrains, with internal combustion engines remaining vital.