The car fleet grows in focus markets with a limited vehicle inspection culture in emerging countries. The car fleet in Opus geographic areas grew with 3% leading to an increased demand and possibility for organic sustainable growth. An increased demand for vehicle inspection together with Opus establishment in new geographic areas with newly established and underdeveloped vehicle inspection requirements, enables an estimated growth of 4,3% CAGR within the Vehicle Inspection division until 2021E.

Growing need for workshops with capabilities of handling software complexity. McKinsey predicts future workshops need to adapt to a new customer service mindset, able to handle the increased complexity of cars. Opus Intelligent Vehicle Support are right in time with the increased complexity of vehicles, software and new electronic technologies. Intelligent Vehicle Support division is expected to grow by 20,9% CAGR to 2021E. A total growth for Opus of 7,2% CAGR 2021E.

The recent years growth is mainly related to high M&A activity. With a current  ND/EBITDA of 3.4x and a stated max level of 3.0 the possibility of future acquisitions is limited. Opus has made 12 acquisitions since 2012 when the Swedish vehicle inspection monopoly ended.

Analysts: Emma Engfelt Telhag and Rikard Jannesson