STRONG CASH FLOW, SOLID DEMAND AND STABLE ORGANIC GROWTH

SECOND QUARTER 2024

• Net sales increased by 19% to SEK 1,392 million (1,169). In total for the Group, organic sales growth was 9%, excluding currency effects.

• EBITA, increased by 17% to SEK 275 million (236), corresponding to an EBITA margin of 19.8% (20.1)

• Adjusted EBITA increased by 13% to SEK 260 million (231), corresponding to an adjusted EBITA margin of 18.7% (19.7). Organic adjusted EBITA growth for the Group was 1%, excl. currency effects.

• Profit before tax for the Group amounted to SEK 167 (169) million and profit after tax amounted to SEK 118 million (126), of which SEK 116 million (126) was attributable to the Parent Company’s shareholders.

• Cash flow from operating activities amounted to SEK 197 million (67), corresponding to a cash conversion of 83% (33).
• Earnings per ordinary share (average number), less minority interests and dividends on preference shares, amounted to SEK 2.95 (3.22). After dilution, earnings per ordinary share amounted to SEK 2.95 (3.22).

• During the quarter, the acquisition of WaterTech of Sweden AB was completed and Frigotech AB was divested.

FIRST SIX MONTHS

• Net sales increased by 22% to SEK 2,727 million (2,245). In total for the Group, organic sales growth was 9%, excluding currency effects.

• EBITA, increased by 20% to SEK 531 million (443), corresponding to an EBITA margin of 19.5% (19.7)

• Adjusted EBITA increased by 18% to SEK 512 million (434), corresponding to an adjusted EBITA margin of 18.8% (19.3). Organic adjusted EBITA growth for the Group was 3%, excl. currency effects.

• Profit before tax for the Group amounted to SEK 326 (303) million and profit after tax amounted to SEK 224 million (222), of which SEK 222 million (221) was attributable to the Parent Company’s shareholders.

• Cash flow from operating activities amounted to SEK 365 million (165), corresponding to a cash conversion of 78% (39).
• Earnings per ordinary share (average number), less minority interests and dividends on preference shares, amounted to SEK 5.66 (5.65). After dilution, earnings per ordinary share amounted to SEK 5.66 (5.65).

• During the period, the acquisition of JR Industries Ltd in the UK and WaterTech of Sweden AB was completed and Frigotech AB was divested.

SIGNIFICANT EVENTS AFTER THE END OF THE REPORTING PERIOD
No significant events after the end of the reporting period.

COMMENTS BY THE CEO

With niche solutions in infrastructure that always need to work, Sdiptech is well positioned to benefit from solid demand. For the quarter, we can present an organic sales growth of 9 percent, excl. currency. At the same time, we had a strong cash generation of 83 percent, which resulted in a cash flow from operating activities of SEK 197 million in the quarter.

QUARTER
We are pleased to report another quarter with positive organic growth. Sales increased by 19 percent, of which 9 percent was organic. This is mainly because demand remains solid with an increased sales in most of our units. Profit in adjusted EBITA amounted to SEK 260 million and increased by 13 percent, of which 1 percent organic excl. currency.

Organic profit growth was impacted by restructuring measures taken in our remaining elevator business, which has been taking longer than expected. Despite this, we maintained a profit margin of 18.7 percent in adjusted EBITA for the quarter, and 18.9 percent on an annual basis.

With solid sales growth, we are also pleased to show a strong cash generation of 83 percent for the quarter, and 84 percent for the past twelve months. This strengthens our financial position and enables continued investments in growth.

Resource Efficiency's sales growth of 15 percent in the quarter was mainly driven by volume increases within multiple business units, but also the effect of price increases. At the same time, adjusted EBITA increased by 24 percent, which was partly due to particularly good profitability in a couple of units. For example, IDE, the unit for temporary electricity, had a strong quarter driven by several large projects. IDE also continued its successful cooperation with Rolec, as their offerings complements each other.

Special Infrastructure Solutions had a sales increase of 21 percent during the quarter, mainly due to strong growth in several of the large comparable units. However, the profit in the business area was weighed down by the restructuring carried out in the elevator operations, which resulted in the business area's adjusted EBITA increasing by 8 percent. We continue to work with the company with the ambition to reach profitability before the end of the year. In addition, some units showed a lower margin than last year due to strong comparative numbers.

ACQUISITION
In April, WaterTech, which specializes in water chemistry for industrial water systems, was acquired. The company has started collaborating with Kemi-tech and Water Treatment Products, our two other companies in the same area. This strengthens the three units' offering in industrial water treatment in Northern Europe. WaterTech is part of the Resource Efficiency business area.

In June, Frigotech, the Group's refrigeration service unit, which accounted for less than 1 percent of the Group's total profit and sales, was divested.

OUTLOOK
We continue to leverage our positions in sectors that are less sensitive to economic fluctuations, giving us an advantageous market position and increasing our resilience to cyclical changes.

We are currently well diversified with our 40 units. None of these account for more than 10 percent of the group's total EBITA. Our 10 largest units each represent between 4 and 10 percent of the profit. This gives us a good spread of risk.

Our acquisition strategy is based on quality over quantity, creating sustainable organic development and long-term profitability. With our focus on niche solutions in infrastructure, new acquisitions add new technology and customer segments, creating added value for both new and existing units. We have a solid pipeline and look forward to welcoming more companies that strengthen our offerings and position in the market.

Finally, I would like to thank our customers, shareholders and dedicated employees for your continued trust and commitment.

Bengt Lejdström
President and CEO

For additional information, please contact:
Susanna Zethelius, CFO, +46 704 44 00 92, susanna.zethelius@sdiptech.com
My Lundberg, Head of Sustainability & IR, +46 703 61 18 10, my.lundberg@sdiptech.com

Sdiptech’s common shares of series B are traded on Nasdaq Stockholm under the short name SDIP B with ISIN code SE0003756758. Sdiptech’s preferred shares are traded under the short name SDIP PREF with ISIN code SE0006758348. Further information is available on the company's website: www.sdiptech.se

Sdiptech is a technology group that acquires and develops market-leading niche operations that contribute to creating more sustainable, efficient and safe societies. Sdiptech has approximately SEK 5,300 million in sales and is based in Stockholm.