Ferronordic (FNM) Company Presentation summary

Business model and strategic positioning

• Operates as a dealer for leading brands in construction equipment and trucks across the US, Germany, and Kazakhstan, offering sales, rentals, service, and parts.

• Focuses on aftermarket services, which account for a significant share of sales, leveraging dense service networks and digital platforms for customer integration.

• Strategic objectives include market leadership, expansion into related business areas, and geographic growth, with sustainability and digitalization as core pillars.

• Emphasizes operational excellence, customer centricity, and building on strong brands to drive value creation and growth.

• Pursues organic growth and bolt-on acquisitions, with openness to strategic M&A and a strong, experienced management team.

Market presence and regional highlights

• US: Strong market with growth potential, 13 outlets, and a focus on rental, service, and parts; market share slightly decreased due to fewer new machines added to rental fleet.

• Germany: Covers 18% of the heavy truck market, 20 outlets, increased new truck sales by 53% in Q2 2025 despite overall market decline, and improved gross margin.

• Kazakhstan: Four outlets, market for larger machines declined, but service and parts sales grew by 65% year-over-year in Q2 2025.

• Positioned to benefit from trends in electrification, infrastructure investment, and shared asset models.

Financial performance and objectives

• Q2 2025 revenue was SEK 1,088m, down 2% year-over-year; operating profit at SEK -5m, net income at SEK -51m, and net debt reduced to SEK 1,679m.

• US revenue decreased 4% (but up 4% in USD), German revenue increased 10%, and Kazakhstan revenue fell 54%.

• Group gross margin stable at 16.3%; SG&A expenses decreased by 6%.

• Financial objectives include doubling 2024 revenue in five years, maintaining an operating margin above 6%, and net debt/EBITDA below 3x.

• Dividend policy targets at least 50% payout if net debt/EBITDA is below 1.0x, and at least 25% if above.