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

>>Play our short video (With subtitles in English). 2 2020-02-17

Infrea’s timeline 3 2020-02-17

Strategy 4 2020-02-17

Cyclically stable with loyal customers and long contracts 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.

Infrea creates value over time 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. • 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. 6 2020-02-17

Infrea creates value over time 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. • 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. 7 2020-02-17

Transparent acquisition process All acquisition Al ons require that the pros ospective com ompany: Infrea’s acquisition process is transparent and honest. This means that the Group is open 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. 8 2020-02-17

Divestments and acquisitions in 2019 Koncernens omsättning för kvarvarande verksamheter uppgick till 167,0 Mkr (116,8), The entire Fire business area was divested as part of our strategy to focus strongly on the affärsområdet Brandskydd redovisas som avvecklad infrastructure niche and to free up capital for verksamhet från och med första new acquisitions there. kvartalet 2019. 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. 9 2020-02-17

Market 10 2020-02-17

Our business areas Clean water from the tap and pipes that carry away our wastewater are taken for granted in society today. Civil en engineer eering & Infrea’s subsidiary offers water and sewage services to ensure that what Public works Pu we don’t see still works. Earthworks and laying asphalt are important elements as communities grow and expand their Water & Sewage Wa infrastructure. Infrea’s subsidiaries have the skills to handle the entire chain in earthworks and construction. Infrea carries out pipe inspections Infrea has its own construction with cameras, slurry removal, high- equipment and resources for pressure flushing, dry suction, asphalt production, which ensures feeding of pipes and transport of great flexibility and control. hazardous waste and residual Customers include states and water. Customers include states, municipalities, as well as private municipalities, county councils, companies and organizations. industry and the private sector. 11 2020-02-17

Market overview 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. 12 2020-02-17

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 99,424 99, 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% 7,0% 7, 0% 3, 3,2% 2% 5, 5,0% 0% 13 2020-02-17

Infrea’s portfolio companies Civil engineering & Public works Water & Sewage 14 2020-02-17

Infrea’s portfolio companies 15 2020-02-17

Govermance 16 2020-02-17

Infrea’s Business Model 17 2020-02-17

Owners “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 18 2020-02-17

Infrea’s stock, a growth investment 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. 19 2020-02-17

Management Boa Board of of Director ors Ur Urban Stu turk El Elsa sa Widding Er Erik Lindeblad Po Pontus Lindva vall To Tomas Ber ergström Chairman Board member Board member Board member Boardmember 20 17 feb. -20

Management Ex Executi tive Team Jo Johan Re Reideby To Tony An Ander ersson Hen Henrik ik Nordin in Hen Henriet etta Fo Forsber erg CEO and President CFO Analyst Head of Group Accounting 21 17 feb. -20

Management Ex Extended Management t Team Al Alfred Ca Carinder Ja Jan Ar Arnesson Ja Jan Ar Arvidsson CEO, Asfaltsgruppen CEO, Siljan Schakt CEO, Anläggningsgruppen Pe Per Ola Be Berthelse sen Ma Mart rtin Bern rntsson An Anders Hen Henlö löv CEO, Cleanpipe CEO, Tälje Mark CEO, Mark & VA i Göteborg 22 2020-02-17

Infrea is not like other industrial groups We believe that Infrea is different from other 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. 23 17 feb. -20

Tony Andersson, CEO and President Infrea +46 (0)8-401 01 81 tony.andersson@infrea.se in infr frea. ea.se 24 2020-02-17