Storskogen Group (STOR) CMD 2024 summary

Looking back

• Four development phases since 2012: foundation, accelerated growth, international expansion, and current focus on operational excellence and portfolio review.

• Diversification and active ownership have been key to growth, with a shift to more operational focus and cash flow management in recent years.

• Historical resilience demonstrated through diversified business units, withstanding macroeconomic turbulence.

• Net sales grew from SEK 8.2bn in Q3 2020 to SEK 34.6bn in Q3 2024, with adjusted EBITA peaking at SEK 3.5bn in Q3 2023.

• Selective divestment of underperforming units began in 2023-2024, refining the portfolio.

Where we are

• Operates a decentralized model, acquiring and developing leading SMEs in selected industries with a long-term ownership horizon.

• Portfolio is diversified across services (30%), trade (28%), and industry (42%), with 46% of sales in Sweden and growing international presence.

• Strong operational cash flow, with LTM cash flow at SEK 2.9bn in Q3 2024 and adjusted cash conversion above 70%.

• Focus on organic growth through sales initiatives, margin protection, investments in scalability, and cost control.

• Collaboration and networking among business units drive cost savings, sales growth, and best practice sharing.

Strategic direction and future plans

• Refined strategy focuses on increasing exposure outside Sweden, reducing cyclicality, and investing in long-term growth themes such as health, automation, energy, digitalization, and infrastructure.

• Portfolio reshaping will prioritize less cyclical businesses and geographies with higher growth potential, while maintaining a disciplined approach to leverage and capital allocation.

• Acquisitions will target companies with SEK 20–50 million EBITDA, prioritizing add-ons and platforms in existing core markets and themes, with a target acquisition multiple of 7x EBITDA.

• Add-on acquisitions are expected to account for 30–40% of capital allocation over the next three years, with a focus on synergies and strategic fit.

• No expansion into new geographies or verticals is planned; focus remains on current markets and adjacent areas within existing business themes.