Troax Group AB: Interim Report January - December 2024

Hillerstorp 7th of February 2025, 12:30 CET

OCTOBER - DECEMBER

• Order intake in the quarter increased by 12 percent compared with the same period last year and amounted to 68,0 (60,6) MEUR. Adjusted for currency and acquisitions the order intake increased by 5 percent.
• Sales in the quarter increased by 0,1 percent compared with the same period last year and amounted to 66,7 (66,6) MEUR. Adjusted for currency and acquisitions sales decreased by 7 percent.
• Operating profit before amortizations (EBITA) decreased to 11,5 (13,4) MEUR.
• Operating margin before amortizations (EBITA margin) decreased to 17,2 (20,1) percent.
• Financial net was -0,4 (-0,7) MEUR.
• Profit after tax decreased to 8,2 (8,9) MEUR.
• Adjusted earnings per share after dilution amounted to 0,15 (0,16) EUR.
• Earnings per share after dilution amounted to 0,14 (0,15) EUR.

JANUARY - DECEMBER

• Order intake in the period increased by 7 percent compared with the same period last year and amounted to 276,9 (258,2) MEUR. Adjusted for currency and acquisitions the order intake decreased by 2 percent.
• Sales in the period increased by 5 percent compared with the same period last year and amounted to 278,5 (264,3) MEUR. Adjusted for currency and acquisitions sales decreased by 4 percent.
• Operating profit before amortizations (EBITA) decreased to 48,2 (51,9) MEUR.
• Operating margin before amortizations (EBITA margin) decreased to 17,3 (19,6) percent.
• Financial net was -4,3 (-2,6) MEUR.
• Profit after tax decreased to 31,3 (35,8) MEUR.
• Adjusted earnings per share after dilution amounted to 0,57 (0,63) EUR.
• Earnings per share after dilution amounted to 0,52 (0,60) EUR.
• The Board of Directors suggests a dividend of 0,34 (0,34) EUR per share

COMMENTS FROM THE PRESIDENT AND CEO

As I conclude Q4 as well as the full year of 2024, I look back at a period characterized by uncertainty and mixed customer demand across segments and geographical markets. The overall picture from the previous quarter largely remained - North America and APAC with stronger activity while Europe continued at a somewhat slower pace.

During the quarter we have continued to build the Troax Group stronger for the future. To meet the customer and market expectations of the future, we have revised our strategy and adjusted our organization. In December we announced the acquisition of ST&L who are experts in safety consulting and risk assessment. With ST&L in the Group, we will strengthen our ability to act as a true safety partner to our customers and provide additional value. We have also progressed according to plan with our investment into North America where we intend to increase capacity and efficiency and ramp up during 2026.

Improved order intake, but lower sales resulted in lower EBITA-margin

Despite the market situation it is pleasing to report a total order intake growth of 12 percent whereof the organic growth accounted for 5 percent. The demand picture continued to be mixed between geographic and customer segments. It is pleasing to see the organic growth turning positive after a few quarters of decline. Similar to the third quarter we experienced increasing activity within the automated warehouse segment as well as within the active safety segment compared to the first half of 2024.

Europe continued to be challenged by low demand generally in the quarter. On the positive side we saw the automotive sector in Continental Europe continue relatively strongly, but also the UK market grew nicely. On the negative side we noticed Continental Europe and Nordics continued to decline in total driven by general industry, the warehousing and construction segments. North America developed well during the quarter with automotive and warehousing orders. New markets incl. APAC declined in the quarter due to timing of orders but has all-in-all had solid growth for the full year.

Sales wise we were flat in the quarter comparing to 2023 in total. The organic element declined by 7 percent due to timing of deliveries. The gross margin continued to be solid in line with our internal target despite lower volume. Pricing discipline, stable low input costs and continuous improvements in our supply chain compensated for the under-absorption effects steaming from the lower volumes.

Our selling and administrative expenses continued to be in line with our plan but are proportionally too high given sales volumes. We have during 2024 deliberately invested in new sales capabilities and new markets to capture market share, but we are not yet at a point where we are able to fully benefit. As mentioned in the previous quarter, the sales efficiency needs to improve going forward.

Overall, our EBITA margin was 17,2% comparing to 20,1% last year. Our comparable EBITA margin (i.e. excluding our Garantell acquisition) would have been 18,3%. Aside of the dilution from structure, we also had a negative currency impact of close to one percentage point impacting our EBITA-margin negatively.

Strong operational cash flow and continued reduction in net debt

We continued to deliver strong operating cash flow, and our net debt to EBITDA-ratio continued to decrease to 0,8. Overall, the Group continues to have a stable and strong financial position enabling further investments into profitable organic and acquired growth.

In summary

The fourth quarter again demonstrated that the Troax Group is well-positioned to deliver growth and a solid margin despite challenging markets. We have made good progress in articulating the strategic direction and aligned our organization. Together we will continue to strive for our customers' safety in everyday life - just as we have done so for almost 70 years.

Thank you for your continued trust in the team at Troax Group,

Martin Nyström, President and CEO

TEAMS WEBINAR

Invitation to presentation of the latest quarter result:

Martin Nyström, CEO, and Anders Eklöf, CFO, will present the results at a Teams webinar on the 7th of February 2025 at 16:00 CET. The conference will be held in English. For more information, please refer tohttps://www.troax.com/investors/press-releases/

For additional information, please contact:

Martin Nyström
President and CEO
[e-mail]
Tel: [phone]

Anders Eklöf
CFO
[e-mail]
Tel [phone]

This information is information that Troax Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation 596/2014. The information was submitted for publication, through the agency of the contact person set out above, at 12:30 CET on the 7th of February 2025.

About Troax

Troax Group is the leading global supplier of indoor perimeter protection for manufacturing and warehousing environments.

Troax develops high quality and innovative safety solutions to protect people, property and processes.

Troax Group AB (publ), Reg. No. 556916-4030, is a global company with a strong sales force and efficient supply chain. With local presence we offer excellent customer service and quick deliveries. We are represented in 42 countries and employ roughly 1200 people. The Company's head office is located in Hillerstorp, Sweden and our sales amounted to 279 MEUR (2024)