Ferronordic (FNM) ABGSC Investor Days summary

Business overview and recent developments

• Exited Russian market in 2022, retaining operations in Kazakhstan and expanding into Germany and the U.S. with the acquisition of Rudd Equipment Company in late 2023.

• U.S. operations now span nine Midwest states, focusing on Volvo, Hitachi, Link-Belt, Bergmann, and Sandvik equipment.

• Revenue for the first nine months was SEK 3.4 billion, with Germany underperforming in new equipment sales but aftermarket services remaining strong.

• Aftermarket (service and parts) is the core, providing stability and recurring revenue, with a goal for gross profit from this segment to cover fixed costs.

• Strategic focus on being the leading service provider in each market, not necessarily the largest.

Strategic objectives and growth plans

• Aims to leverage existing infrastructure by adding complementary brands and expanding sustainable transport services, especially electric trucks in Germany.

• Pursuing industry-leading digital platforms for preventive maintenance and customer proximity.

• Geographic expansion remains a priority, with ongoing evaluation of new opportunities post-U.S. acquisition.

• Customer centricity, strong brand partnerships, and operational excellence are core pillars.

• Sustainability is integrated, focusing on decarbonization, operational efficiency, and circular economy practices.

Market trends and regional performance

• Green transition and electrification, especially in trucks, are key trends, with growing customer interest and a target of 100 electric trucks in Germany by year-end.

• U.S. market benefits from large government infrastructure programs, expected to drive demand and provide resilience across political cycles.

• Equipment-as-a-service is a growing trend, with flexible rental and full-service offerings gaining traction.

• Germany’s network is largely built out, with focus shifting to optimization, cost control, and increasing aftermarket sales; recent cost savings of SEK 60 million annually.

• Kazakhstan remains a small but promising market, driven by mining and infrastructure investments.