Redeye Serial Acquirers Conference 2024

Magnus Söderlind – CEO

March 6, 2024
YSTAD 2023
 B&B WALKS / YSTAD / 2023

2018-19
‘Regroup’
2017
‘ORIGINAL BLUEPRINT Spin off-Momentum Group

OF THE SERIAL 2001 2020-

ACQUISTION MODEL’ Spin off-Lagercrantz & Addtech
Profit expansion

1906 1976
1976 2001 2017 2018–19 2020–
Listed on the stock exchange

1906
B&B founded Listed on the stock
exchange
Spin off – Lagercrantz
& Addtech
Spin off – Momentum
Group
Regroup Profit expansion

Company founded MOMENTUM SWEDOL

LAGERCRANTZ GROUP
500 MSEK
ADDTECH

~25
Lagercrantz: Momentum: Profit (EBIT)
~25BN Market Cap
BN
Market Cap
Addtech:
~50 ~4BN Market Cap
BN
Market Cap
~50BN Market Cap
ALLIGO
Addlife:
~15BN Market Cap
ADDLIFE
~6 BN
MOMENTUM

~15
Market Cap
Group

Market Cap
BN
~4 BN
Market Cap
 29 AUTONOMOUS COMPANIES
Building Materials
Group Figures Solutions and necessities for the construction industry

Revenue 1,443 MSEK - EBITA 144 MSEK – EBITA margin 10,0%

R12 Dec 2023 (Dec 2022)

4,746(4,717)
Revenue (MSEK)
R12 Q3 FY2223

426(366)
4,717
EBITA (MSEK)
Revenue (MSEK) Workplace Safety
Personal Protective Equipment and Work environment safety

9.0 (7.8)
32
616 Revenue 1,617 MSEK - EBITA 122 MSEK – EBITA margin 7,5%
EBITA (MSEK)
Profitability EBITA %
(P/WC) %
7.90
2.3 (2.6)
Earnings perexcl.
Net Debt/EBITDA share, SEK
IFRS16

7.30 (7.90)
1,285
Earnings perEmployees
share, SEK Tools & Consumables
Hand tools, Machines and Supplies

707 (152)
BERGB Revenue 1,720 MSEK - EBITA 173 MSEK – EBITA margin 10,1%
Operating
Mid Cash Flow,
Cap Stockholm MSEK
Nasdaq
 WORKPLACE SAFETY

Leading specialist within height safety solutions

Designs, develops, manufactures and sells rescue and fall protection products

Add-on acquistions 350

Revenue (MSEK)

Well above
average margin %

150
Employees
 GROUP TARGETS

500 MSEK
EBIT latest FY2526
COMBINED ANNUAL

”500/ten/45”
50-80 EARNINGS MSEK
ACQUISITIONS PA
EBIT- >10%
margin latest FY2526

PERCENTAGE OWN
75% PRODUCTS
45% latest FY2526
P/ WC latest FY2627
IMPROVED RESULTS 16 CONSEQUENT QUARTERS
EBITA by Quarter (MSEK)
EBITA by Quarter (MSEK) 120
110 110
107104 105
110
103 104 105103
94 94 100 100
91 91
88 88
84 84 90 90
84 81 84
81
78 78
80 80
73 73
66 68 68
64 66 70 70
64
57 57 60 60
50
50
37 40
37 40
30
30
20
20
10
10
0
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 0
2019/2020
Q3 Q4 Q1 2020/2021 2021/2022
Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022/2023
Q1 Q2 Q3 Q4 2023/2024
Q1
2019/2020 2020/2021 2021/2022 2022/2023 2023/2024
IMPROVED PROFIT MARGINS
EBITA-margin per quarter %, R12
10
8,8 9,0
9
8,3
7,8 8,0
7,5 7,5 8
7,0 7,2
6,8 7
6,3 6,5
5,9
5,4 6
5,2 5,1 5,1 2,0 percentage units during 2 years
5
1,2 percentage units 1 year
4

0
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2019/2020 2020/2021 2021/2022 2022/2023 2023/2024
 IMPROVED GROSS MARGIN

Gross margin % per quarter, R12

48
46,8
45,8
46
45,2
44,7
44,3
43,9
43,3 44
42,6 4,6 percentage units during 2 years
42,2
41,6 41,8
42 2,5 percentage units during 1 years
41,2 41,1
40,3 40,2 40,2 40,3
40

38

36
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2019/2020 2020/2021 2021/2022 2022/2023 2023/2024
ACQUIRED MSEK 440 REVENUE WITH PROFIT MARGIN > 15%

New Companies

April 23
45 June 23 40 July 23
75 Aug 23 60 Nov 23
50 Dec 23
170
Revenue Revenue Revenue Revenue Revenue Revenue
(MSEK) (MSEK) (MSEK) (MSEK) (MSEK) (MSEK)
______________ ______________ ______________ ______________ ______________ ______________
~15% >>15% >15% ~15% >>15% >>15%
Margin % Margin % Margin % Margin % Margin % Margin %

>>45% >>45% >>45% >>45% >>45% >>45%

P/WC P/WC P/WC P/WC P/WC P/WC
ACQUISITIONS – THE B&B WAY

Social, ‘down to earth’ people with strong acquisition track record

Clear, focused acquisition strategy, strictly adhered to

Standardized simple process & procedure

Risk management

Compelling ‘soft’ offering to sellers

Disciplined in valuation
PRIORITIES GOING FORWARD ”500/ten/45”

WHAT WE ALWAYS DO
v Prioritizing profit expansion over revenue expansion
v Concrete short- and long-term goals and activities –
”keep their eyes on the path without losing sight of the summit”
v Company-by-company strategy – B&B Focus Model for capital allocation
v Group support – B&B Tool Box
B&B FOCUS MODEL – WAY WE ALLOCATE CAPITAL
MAJORITY OF OUR COMPANIES >45%

B&B F CUS MODEL

BY 231231

NO ADD-ONS MAYBE ADD-ONS ADD-ONS

PROFIT GROWTH POTENTIAL

4
9 3 17
3

2
P/WC 25% 45%
PRIORITIES GOING FORWARD ”500/ten/45”
WHAT WE ALWAYS DO
v Prioritizing profit expansion over revenue expansion
v Concrete short- and long-term goals and activities
”keep their eyes on the path without losing sight of the summit”
v Company-by-company strategy – B&B Focus Model for capital allocation
v Group support – B&B Tool Box

CURRENT GROUP THEMES

v Increase liquidity
v Cautious asset investments
v Tight Cost Control (COS%) / Cost Saving Programs
v Cost growth < Revenue growth
v Gross margin protection