Prevas (PREV) ABGSC Investor Days summary

Company overview and market position

• Nordic engineering consultancy with 1,100 employees, strong in Sweden, Denmark, Norway, and recent expansion into Finland.

• 2023 turnover of SEK 1.5 billion and EBITDA of SEK 169.4 million, with an 11.4% margin.

• Focuses on advanced technical solutions for demanding industrial customers.

• Long-term relationships with multinational clients, with no single customer exceeding 25% of turnover.

• Well-positioned in growth sectors: defense, energy, life science, and digitalization.

Strategic direction and business model

• Emphasizes co-creation with partners, universities, and customers to drive innovation.

• Operates in sustainable product and production development, with expertise in regulatory compliance and industrial IT.

• Decentralized organization allows units to tailor strategies and offerings.

• Diversified business models, including long-term partnerships and maintenance contracts, support profitability.

• Strategy focuses on being best-in-class and highly customer-centric.

Financial performance and targets

• First three quarters of the year: SEK 1,155 million turnover, 6.6% growth (20% organic, 80% acquisitions).

• EBITDA margin at 10.1% for the period, below the 12% target but resilient in a tough market.

• Strong balance sheet with net liabilities/EBITDA at 0.99%, and dividend payout at 50%.

• Profitability has improved significantly since 2017, despite recent margin pressure.

• Cash flow remains strong, supporting ongoing and future acquisitions.