<a id="bm-comp-ca8a2f8d-f07a-478f-8917-73f76776cce9" name="bm-comp-ca8a2f8d-f07a-478f-8917-73f76776cce9" class="BMCustomAnchor"></a><table><tr><td bm-component-id="ca8a2f8d-f07a-478f-8917-73f76776cce9" style="vertical-align: top; width:100.000000%;"><ul><li>EBITA margin above 6%</li><li>No more than 1.5x Net debt/EBITDA RTM</li><li>Dividend at ~30% of net profit</li></ul></td></tr></table><a id="bm-comp-95b32694-454b-4767-9f08-a626f5e193cd" name="bm-comp-95b32694-454b-4767-9f08-a626f5e193cd" class="BMCustomAnchor"></a><table><tr><td bm-component-id="95b32694-454b-4767-9f08-a626f5e193cd" style="vertical-align: top; width:100.000000%;"><h3 class="bm-h3">Ambitious margin target</h3><p>Infrea sets financial targets for the first time, with all targets to be achieved medium term. The first target, an EBITA margin above 6%, is 3pp above our 27e estimates of 2.9%. Assuming the target is achieved in 27e although medium term is not specified, this implies an EBITA CAGR 24-27e of 65% and EBITA of SEK 136m, compared with CAGR of 29% and SEK 65m in our current estimates. The second target, the leverage ratio target of 1.5x net debt/EBITDA RTM, is already in line with our estimates at 25e in the absence of M&A activity. Thirdly, the dividend target of 30% of net profit is in line with what has been communicated previously.</p><h3 class="bm-h3">Target implies profitability focus</h3><p>Infrea's targets support management's core focus on strengthening profitability rather than focusing on growth. During 2024, Infreas began an ambitious internal work to strengthen the group, and we believe these targets further show Infreas ambitions going forward.</p><h3 class="bm-h3" style="text-align:left;">Implications of financial targets</h3><p style="text-align:left;">Should Infrea achieve its EBITA margin target of above 6%, assuming by '27e, and an EBITA to FCF conversion rate of 120% would imply a '27e EV/EBITA multiple of 3.0x (6.2x on current estimates).</p></td></tr></table>