Presentation of Infrea AB An industrial group with a clear market - - PowerPoint PPT Presentation

Presentation of Infrea AB

An industrial group with a clear market niche

Tony Andersson, CEO and President

2020-02-17 2

>>Play our short video (With subtitles in English).

Infrea’s timeline

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Strategy

Infrastructure contracts are generally long-term projects, which provides stability over time. Infrea is therefore a good alternative for investors seeking a lower-risk stock for their portfolio, in a long-term perspective.

Cyclically stable with loyal customers and long contracts

Infrea’s view of entrepreneurship and leadership is at core of the company. Increased value for shareholders is created by modernization and development of subsidiaries.

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Infrea creates value over time

• Leadership.
• Growth, Profitability and Cash Flow.
• Acquisition and development of unlisted

companies.

• Infrea’s vision is to play an integral role in

making society work and develop sustainably into places where people want to be and live.

We are looking for cash-flow-positive industrial and service companies in infrastructure, with a turnover in the range of SEK 30 to SEK 300 million. Infrea's continued growth will consist of a combination of organic growth and acquisitions of companies.

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Infrea creates value over time

• Leadership.
• Growth, Profitability and Cash Flow.
• Acquisition and development of unlisted

companies.

• Infrea’s vision is to play an integral role in

making society work and develop sustainably into places where people want to be and live.

Infrea’s acquisition process is transparent and honest. This means that the Group is

• pen about the conditions that newly

acquired companies can expect when Infrea takes over. We seek out cash-flow-positive industrial and service-providing companies with a turnover in the range of SEK 30 to 300 million, primarily in Sweden but also in the Nordic market. Infrea will continue to grow through a combination of organic growth and complementary company acquisitions.

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Transparent acquisition process

Al All acquisition

• ns require that the pros
• spective com
• mpany:

The entire Fire business area was divested as part of our strategy to focus strongly on the infrastructure niche and to free up capital for new acquisitions there. The four companies acquired in 2019 are Anläggningsgruppen AB in Skaraborg, Mark & VA i Göteborg AB in Götaland, Siljan Schakt AB in Dalarna and Tälje Mark AB in Södertälje. Tälje Mark was acquired in two stages: 70% at the end of 2018 and the remaining 30% in 2019. All group companies were thus wholly owned by the end of the year.

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Divestments and acquisitions in 2019

Koncernens omsättning för kvarvarande verksamheter uppgick till 167,0 Mkr (116,8), affärsområdet Brandskydd redovisas som avvecklad verksamhet från och med första kvartalet 2019.

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Market

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Our business areas

Earthworks and laying asphalt are important elements as communities grow and expand their

• infrastructure. Infrea’s subsidiaries

have the skills to handle the entire chain in earthworks and construction. Infrea has its own construction equipment and resources for asphalt production, which ensures great flexibility and control. Customers include states and municipalities, as well as private companies and organizations.

Wa Water & Sewage

Civil en engineer eering & Pu Public works

Clean water from the tap and pipes that carry away our wastewater are taken for granted in society today. Infrea’s subsidiary offers water and sewage services to ensure that what we don’t see still works. Infrea carries out pipe inspections with cameras, slurry removal, high- pressure flushing, dry suction, feeding of pipes and transport of hazardous waste and residual

• water. Customers include states,

municipalities, county councils, industry and the private sector.

When society makes extensive investments in infrastructure in line with urbanization, it tends to make a positive contribution to the general construction climate. This in turn benefits Infrea by raising demand for earthworks, construction, water works and sewage facilities. In addition, the infrastructure market is still fragmented and unconsolidated, which creates opportunities for Infrea: when there are many smaller players they may not always have the resources to compete for contracts.

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Market overview

Market overview - Forecast Center’s analysis Segments, MSEK

SE SEKTOR 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020 2020 2021 2021 MS MSEK Other transport 4,402 4,479 4,859 5,931 6,312 5,956 5,545 1,8% 8,5% 22,1% 6,4%

• 5,6%
• 6,9%

Railroads 17,758 19,444 20,027 21,028 24,172 26,706 29,701 9,5% 3,0% 5,0% 15,0% 10,5% 11,2% Roads and bridges 21,794 22,905 24,396 36,686 29,376 30,096 31,283 5,1% 6,5% 9,4% 10,0% 2,5% 3,9% Telecommunication 6,824 6,719 6,361 6,252 6,374 6,745 7,203

• 1,5%
• 5,3%
• 1,7%

2,0% 5,8% 6,8% Energy (electricity and heating) 31,142 29,166 29,811 31,369 32,205 33,345 35,693

• 6,3%

2,2% 5,2% 2,7% 3,5% 7,0% Water (fresh water and sewage) 9,069 9,646 10,189 10,529 10,962 10,480 10,199 6,4% 5,6% 3,3% 4,1%

• 4,4%
• 2,7%

Other 8,436 8,806 9,183 9,543 9,691 9,506 9,297 4,4% 4,3% 3,9% 1,6%

• 1,9%
• 2,2%

To Total 99, 99,424 424 101, 101,164 164 104, 104,827 827 111, 111,338 338 119, 119,083 083 122, 122,835 835 128, 128,923 923 1, 1,8% 8% 3, 3,6% 6% 6, 6,2% 2% 7, 7,0% 0% 3, 3,2% 2% 5, 5,0% 0%

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Civil engineering & Public works Water & Sewage

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Infrea’s portfolio companies

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Infrea’s portfolio companies

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Govermance

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Infrea’s Business Model

“Infrea currently has over 1,100 owners and I welcome many more. We have started the journey and I am very pleased that you want to be part of it”.

Tony Andersson, CFO and President Infrea

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Owners

Infrea's dividend policy is to distribute approximately 30% of the parent company’s profit after tax to shareholders. Primarily the stock will be a growth share, with an annual growth target of around 15–20%. Compound interest: “15% return on equity for five years = 100% gain”. Multiple arbitrage: “Buy for 5, list for 12”. Grow to lower risk with returns: “Good annual return with high share reinvestment”, in a more cyclically stable industry.

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Infrea’s stock, a growth investment

Management

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Boa Board of

• f Director
• rs

Ur Urban Stu turk Chairman El Elsa sa Widding Board member Er Erik Lindeblad Board member Po Pontus Lindva vall Board member To Tomas Ber ergström Boardmember

Management

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Ex Executi tive Team

Hen Henrik ik Nordin in CFO Hen Henriet etta Fo Forsber erg Head of Group Accounting Jo Johan Re Reideby Analyst To Tony An Ander ersson CEO and President

Management

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Ex Extended Management t Team

Ja Jan Ar Arnesson CEO, Siljan Schakt Ja Jan Ar Arvidsson CEO, Anläggningsgruppen Al Alfred Ca Carinder CEO, Asfaltsgruppen Pe Per Ola Be Berthelse sen CEO, Cleanpipe An Anders Hen Henlö löv CEO, Tälje Mark Ma Mart rtin Bern rntsson CEO, Mark & VA i Göteborg

We believe that Infrea is different from

• ther industrial groups.

Our core pillar is Entrepreneurship. We have extensive experience in developing businesses to profitability. Through genuine commitment and long- term effort we create prosperous businesses in industries that are growing, and so deliver return to stockholders. That’s why we think you should invest in Infrea and grow with us.

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Infrea is not like other industrial groups

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Tony Andersson, CEO and President Infrea

+46 (0)8-401 01 81 tony.andersson@infrea.se in infr frea. ea.se