Storskogen Group (STOR) SEB Nordic Seminar presentation summary

Business overview and strategy

• Operates as an international group acquiring and developing small and medium-sized businesses, with 160 business units and ~11,000 employees across industry, trade, and services sectors.

• Focuses on companies with strong cash flows, long-term potential, and compounding growth opportunities, both organically and through acquisitions.

• Targets sustainable growth in an evergreen market, aiming for 15% annual EBITA growth, leveraging a large pool of potential acquisition targets in Europe.

• Business model emphasizes long-term perspective, decentralization, active ownership, and financial governance to drive diversification and resilience.

• Growth journey includes foundational growth, hypergrowth, systematic growth, and a future focus on capital allocation and operational consolidation.

Segment performance and portfolio

• Services segment includes 54 business units in 12 markets, exposed to trends like urbanization, sustainability, and digitalization, with ~3,100 employees.

• Trade segment operates 25 business units in 12 markets, focusing on professional and consumer products aligned with health and lifestyle trends, employing ~2,100 people.

• Industry segment comprises 35 business units in 23 markets, with ~4,800 employees, targeting automation, digitalization, and sustainability.

• Portfolio includes market leaders in various sectors, with the ten largest business units generating significant sales and holding top market positions.

Financials and capital allocation

• Last twelve months (LTM) sales reached SEK 33bn, with LTM EBITA of SEK 3.2bn and solid operational cash flow, though cash flow is seasonal.

• Debt amortization has been prioritized, with most capital allocated to debt reduction and a focus on free cash flow after leasing.

• Capital allocation supports both organic and acquired growth, with investments in new platforms, add-ons, and business units.

• High exposure to Sweden and cyclical businesses impacts organic growth and volatility.