Wetteri PLC — M&A Activity 2024

Nov 21, 2024

Inside information: Wetteri Plc sells Wetteri Power Oy to Swedish Persson Invest AB, purchase price approx. EUR 32.5 million

Inside information: Wetteri Plc sells Wetteri Power Oy to Swedish Persson Invest AB, purchase price approx. EUR 32.5 million

The transaction strengthens the Group's financial position significantly

Wetteri Plc Insider information 21 November 2024 at 14.00

Automotive growth company Wetteri Plc sells its subsidiary Wetteri Power Oy to
Swedish Persson Invest Ab. Closing is expected to occur approx. on 31 December
2024. Transaction price is app. EUR 32,5 million, depending on e.g. Wetteri
Power Oy's result in 2025.

Following the transaction, Wetteri will continue its used truck sales, bodywork
business, and existing maintenance and repair operations for brands other than
Volvo and Renault.

Wetteri Group's ability to invest in growth strengthens significantly through
this transaction. The current acquisition strengthens the company's equity and
provides excellent opportunities to invest in the development and growth of both
the passenger car business and the heavy equipment business.

In the future, the items in Wetteri Power Oy's income statement will be
presented in the Group's financial reporting as part of the result of the
Group's discontinued operations separately from the result of the Group's
continuing operations. The financial information for the comparison period will
also be adjusted accordingly.

The transaction has no impact on Wetteri's 2024 financial guidance, which
includes revenue and adjusted profit combined from continuing and discontinued
operations.

Aarne Simula, CEO & President, Wetteri Plc:

" This transaction is very positive for Wetteri's shareholders. The acquisition
significantly strengthens Wetteri's balance sheet as well as its ability to
execute strategic acquisitions and thus provides excellent support for the
company's growth strategy. Profitable growth also opens opportunities to pay
dividends in the future.

The automotive industry is going through a historical transformation and the
operations will be focused on a few big players. Our goal is to grow into
Finland's largest full-service multi-brand car company, and this transaction
takes us towards this goal. We see that now is the right time to invest in the
growth of the passenger car business.

We will continue to develop the heavy equipment business, for which we have
excellent prerequisites thanks to this transaction. We have a strong position in
the used truck trade and expanded our business by starting to import earthmoving
machinery. Truck maintenance will continue with five brands.”

We estimate that the impact of this transaction on Wetteri's net sales and
profit will be quite short-lived, new growth will arise from new passenger car
brand representatives and market growth.”

Persson Invest Ab is one of the largest companies operating with Volvo trucks
and buses in the Nordic countries, and operates in both Sweden and Norway. The
company employs about 1400 people.

Björn Rentzhog, Group CEO Persson Invest AB

"The acquisition of Wetteri Power enables us to enter the Finnish market
immediately on a significant scale. We have been following Power for a long time
and are familiar with its high-quality way of working. We look forward to
learning more about Power's operations, customers and staff and sharing good
practices on both sides.”

Terms of transaction

The purchase price consists of a base price of EUR 27.0 million, adjusted based
on Wetteri Power Oy's net profit for 2024, and an earn-out component based on
EBITDA for 2025, which can either increase or decrease the base price by up to
EUR 5.5 million. The company estimates the total purchase price to be
approximately EUR 32.5 million. The base price, including adjustments, will be
paid at the time of the transaction, and the additional earn-out component is
expected to be paid during Q2/2026.

As part of the transaction, it has been agreed that Wetteri Group will continue
to provide Wetteri Power's administrative services in the future.

Information about Wetteri Power Oy's business

Wetteri Power Oy is one of the largest operators in the industry in Finland,
selling and servicing Volvo and Renault trucks in five locations. Wetteri
Power's (FAS-compliant) revenue was EUR 73.8 million in 2023. Wetteri Power's
FAS-compliant operating profit was EUR 2.9 million in 2023. FAS-compliant
revenue in January-June 2024 was EUR 33.6 million and operating profit EUR 1.0
million. Wetteri Power employs 150 people and all employment relationships will
continue with the transaction.

Wetteri Power Oy (FAS) 2024 H1 2023 2022
Income statement, EUR thousand unaudited audited audited
Revenue 33 581 73 797 77 474
Operating profit (loss) 988 2 893 2 460
Profit before appropriations and taxes 1 469 3 563 2 405
Profit for the period -5 69 1 234

                           2024 H1    2023     2022

Balance sheet, EUR thousand unaudited audited audited
Non-current assets 1 322 1 424 988
Inventories 5 890 7 067 6 329
Current receivables 12 164 9 621 7 788
Cash in hand and at bank 81 10 72
Total assets 19 457 18 122 15 178

Equity 9 960 9 965 9 896
Long-term liabilities 0 0 1
Short-term liabilities 9 497 8 157 5 280
Total equity and liabilities 19 457 18 122 15 178

More information

Aarne Simula, CEO and President, Wetteri Plc:

Tel. +358 400 689 613, aarne.simula@wetteri.fi

Wetteri Plc - an entrepreneur-driven growth company in the automotive sector

Wetteri Plc is an entrepreneur-driven growth company in the automotive sector.
The company engages in the retail sales of passenger cars, commercial vehicles
and heavy vehicles, and produces maintenance and repair shop services for
vehicles, from passenger cars to heavy vehicles. Headquartered in Oulu, the
company has 50 locations in Finland. The company employs app. 1,000 people, of
whom around 76% work in maintenance and repair services. Wetteri promotes
digitalisation in the automotive sector and is an important player on the common
journey towards emission-free motoring. More information:
sijoittajat.wetteri.fi/en/