Quarterly Report • Feb 17, 2023
Quarterly Report
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2022
Vestum AB (publ)
10.1 % EBITA margin, Oct-Dec 2022
| SEK million (unless otherwise stated) | Oct-Dec 2022 |
Oct-Dec 2021 |
Jan-Dec 2022 |
Jan-Dec 2021 |
|---|---|---|---|---|
| Net sales | 2,025 | 987 | 6,930 | 1,316 |
| EBITA | 205 | 72 | 679 | 100 |
| EBITA margin, % 1) | 10.1 | 7.3 | 9.8 | 7.6 |
| Adjusted EBITA 1) | 200 | 79 | 672 | 116 |
| Adjusted EBITA margin, % 1) | 9.9 | 8.0 | 9.7 | 8.8 |
| EBITA per share, SEK 1) | 0.56 | 0.21 | 1.86 | 0.53 |
| Earnings per share, SEK 2) | 0.13 | -0.01 | 0.41 | 0.01 |
| Operating profit (EBIT) | 125 | 30 | 378 | 45 |
| Cash flow from operating activities | 211 | 11 | 421 | -10 |
1) See pages 26-28 for definitions and reconciliation of alternative performance measures
2) Attributable to remaining operations and Parent company's shareholders
This report is a translation of the Swedish original. In the event of discrepancies, the Swedish version shall prevail.
Vestum delivered solid volumes and stable cash flow in the fourth quarter. Net sales for the quarter amounted to SEK 2,025 million and EBITA amounted to SEK 205 million, corresponding to an EBITA margin of 10.1%. The quarter showed strong organic growth of 20%, corresponding to 19% of the total increase in net sales. The organic growth continues to be driven primarily by the Infrastructure segment, and especially our operations within road maintenance, railways, water and sewage, and public transport. Our listing on Nasdaq Stockholm's main list was completed during the quarter, which we view as a mark of quality and a natural step in Vestum's growth journey. Being listed on Nasdaq Stockholm provides better conditions for long-term value creation for our shareholders, and is another step for Vestum toward becoming the leading Nordic industrial group within civic infrastructure.
The fourth quarter's EBITA of SEK 205 million was primarily driven by solid demand within all three segments with high organic growth, driven in particular by the Infrastructure segment. Profitability within the Infrastructure segment remains stable with an EBITA margin of 10.7%. Within the Services segment, the EBITA margin amounted to 12.1%, which is a clear sequential improvement compared to the third quarter and in line with the expected seasonal pattern. The Water segment was negatively impacted by a few assignments within the
public sector, which led to an EBITA margin of 8.0%. These assignments will finish during the first quarter xof 2023 and are not expected to have any significant impact on profitability during the coming quarters.
We are experiencing some continued disruptions on the cost side due to high inflation, as well as within certain customer segments where the challenging macro situation has been noticeable. At the same time, we have carried out price adjustments since the turn of the year which are expected to be reflected in our profitability during the year. Several of our larger businesses have gained market shares during the year and thereby strengthened their market positions. We believe this can also have positive effects on profitability when the market situation stabilizes.
The operating cash flow was stable during the quarter and amounted to SEK 258 million, which corresponds to a cash conversion of 95%. We decreased our level of tied-up capital and released working capital, which is the combined result of seasonal effects and a continued internal focus on improving the Group's cash flow generation. We see further potential for improving the optimisation of working capital. Net debt in relation to pro forma EBITDA amounted to 2.9x at the end of the quarter, which is within the range of our financial target of 2.5-3.5x.
We maintained a reserved approach when it comes to making new acquisitions during the quarter, but have since the end of the quarter completed the acquisition of Markvaruhuset, where we see great potential for high organic growth through additional establishments. Our evaluation of potential acquisition candidates continues to be focused on add-on acquisitions and acquisitions that are complementary to our existing portfolio.
We are experiencing continued solid demand for our services and products within civic infrastructure and look back on a quarter with strong volumes and stable cash flow. The long-term trend looks solid with an increasing need for our specialist services, but in the short-term we are humble about the state of the economy and the effects of high inflation and energy prices which to some extent affected our profitability in 2022.
We are continuously working on improving collaboration between Vestum's businesses and have accelerated this work during the beginning of 2023 with the aim of extracting synergies. Our focus going forward will primarily be on driving margin improvements, but also capital structure efficiencies, and there are good
conditions for increasing the Group's profitability and cash flow generation in the coming years.
Overall, we have delivered stable volumes and cash flow during the quarter, and with strong organic growth and gained market shares during the year, we look forward to 2023.
Conny Ryk Chief executive officer, Vestum AB (publ)
Vestum is an industrial group that provides services and products to civic infrastructure. We have the most prominent specialists on the market with extensive industry experience and strong local presence within our business areas. Vestum has over 2,300 employees in the Nordics, Germany and the UK.
Vestum's organisation has extensive experience in starting, developing and acquiring businesses. Entrepreneurship is in our DNA and it is important that the entrepreneur's driving forces and customer focus permeate the entire organisation. Therefore, we believe that operational decisions should be made in the operating unit rather than at group level. At the same time, we work closely with our entrepreneurs where experienced representatives from Vestum can participate in making strategic decisions in order to optimise the time for financial, commercial and operational development.
Our ambition is to grow to become the leading Nordic industrial group with a distinct focus on niched services and products for civic infrastructure. We do this by developing and acquiring well-managed and profitable businesses where, together with ambitious entrepreneurs and company management, we can work for continued development and sustainable profitable growth.
SEK million SEK million
Vestum's overall goal is to create longterm profitable growth by acquiring and developing high-quality companies with proven business models, strong market positions and solid cash flows. Vestum's current financial targets are as follows:
Vestum's target is to generate an average annual growth in EBITA per share of at least 15,0 percent.
Vestum's target is to achieve an adjusted EBITA margin of at least 10,0 percent.
Vestum's target is to have a financial net debt in relation to EBITDA of 2.5-3.5x.
All of Vestum's profits and available cash flows will be reinvested in the business and/or used for new acquisitions.
Sustainability is a strategically important issue for Vestum and we have made a long -term commitment to contribute to a sustainable society.
Vestum submits an annual sustainability report that describes Vestum's efforts within areas such as the envi ronment, human rights and corruption. The sustainability report is published together with Vestum's annual report. Vestum's quarterly reports focus on describing the ongoing sustainability work that is taking place to ensure that Ves tum can reach the long-term sustainability targets that have been set by the board for Vestum's operations. This includes describing the interim targets that have been set, the activities that have been carried out and the central key performance indicators that are being used to monitor progress.
Since the end of the fourth quarter, Vestum's board has set long-term sustainability targets for Vestum's operations. The purpose of the sustainability targets is to create a clear picture for Vestum's stakeholders, both internal and exter nal, when it comes to Vestum's long-term sustainability work. The targets extend to 2040 and focus on areas that are deemed to be especially important from a sustainabil ity perspective for the operations that Vestum conducts. The set sustainability targets are described below.
The climate is one of the biggest challenges of our time and Vestum is active in sectors that are currently responsi ble for considerable climate emissions. Vestum must there fore act to decrease its negative impact on the climate,
and any unavoidable negative impact on the climate must be offset through measures that bind carbon diox ide. The target is for Vestum to reach net zero climate impact by 2040 (applies to scope 1, 2 and 3). Vestum's board has also decided that Vestum shall set sciencebased climate targets, and a process will be initiated to have these targets approved by the SBTi (Science Based Targets initiative).
Biodiversity is, along with the climate issue, of central importance to the future stability of our societies. Vestum's businesses must therefore take into account the environment, nature and ecosystems they operate in to minimise the negative impact on biodiversity from Vestum's own operations and value chains. Any una voidable negative impact needs to be offset through measures that promote biodiversity. The target is for Vestum to reach net zero impact on biodiversity by 2040.
The framework for Vestum's operations includes jobs that are physically challenging or expose workers to other forms of increased risk. Work environment issues therefore have the highest priority for Vestum. The tar get is for Vestum to have no serious accidents at work by 2040 at the latest.
It is of central importance to Vestum's success that all available skills are utilised and that Vestum provides a gender equal and inclusive work environment. Vestum also operates in sectors where there is a general need for improved gender equality, which Vestum wants to actively contribute toward. The target is for Vestum to have an even gender balance by 2040, in terms of the total number of employees in the Group.
Vestum wants to contribute to social sustainability by offering internships and apprenticeships. Vestum can thereby contribute to increased employment opportunities and diversity, while also lowering unemployment. The target is for Vestum to have created 1,000 internships and apprenticeships by 2040.
In previous quarterly reports, Vestum has presented key performance indicators for certain selected sustainability areas. Vestum will continue to use KPI's to monitor the sustainability work, but the KPI's will in future be adapted to the set sustainability targets. New KPI's will be introduced successively. During 2023, interim targets will also be established for the respective sustainability targets. The purpose of the interim targets is to clarify what must be implemented and achieved in the short term in order for Vestum to have the opportunity to reach its long-term sustainability targets.
The Group's net sales for the remaining operations for the fourth quarter amounted to SEK 2,025 (987) million. The growth from the same period last year consists of acquired net sales of SEK 833 million, organic growth of SEK 193 million, and exchange rate effects of SEK 11 million. The organic growth corresponds to a growth in net sales of 20% and is driven primarily by high demand but also by price increases.
For the period January - December 2022, the Group's net sales for the remaining operations amounted to SEK 6,930 (1,316) million. The growth from the same period last year consists of acquired net sales of SEK 5,308 million, organic growth of SEK 294 million, and exchange rate effects of SEK 11 million.
Vestum's activities are affected by seasonality due to weather conditions and number of working days. The Group's diversified structure, regarding both market offering and geographical presence, limits exposure to seasonality to some extent. Typically, the second, third and fourth quarters are relatively stable in terms of volume, while the first quarter is the weakest. This generally means that cash flow is at its strongest during the first quarter.
Profit before amortisation and write-downs of acquired surplus value (EBITA) for the remaining operations for the fourth quarter amounted to SEK 205 (72) million which corresponds to an EBITA margin of 10.1% (7.3%). Adjusted EBITA amounted to SEK 200 (79) million and operating profit (EBIT) amounted to SEK 125 (30) million.
Extraordinary items that are adjusted in EBITA affected the quarter positively by SEK 5 (-7) million. These consisted of revaluation of contingent consideration which affects the result positively with SEK 8 million and costs related to preparation for change of listing of SEK 4 million.
Net financials for the fourth quarter amounted to SEK -57 (-27) million of which interest costs for loans and leasing amounted to SEK 57 (29) million and interest income amounted to SEK 2 (0) million.
The increase is explained by interest on bond loans, which were added during the fourth quarter of 2021. The period's profit after tax for the remaining operations amounted to SEK 49 (-2) million, which corresponds to a profit per share attributable to remaining operations and the Parent company's shareholders before and after dilution of SEK 0.13 (-0.01).
Earnings before amortisation and write-downs of acquired surplus value (EBITA) for the remaining operations for January - December 2022 amounted to SEK 679 (100) million, which corresponds to an EBITA margin of 9.8% (7.6%). Adjusted EBITA amounted to SEK 672 (116) million and operating profit (EBIT) amounted to SEK 378 (45) million. Net financial items amounted to SEK -190 (-37) million of which interest costs for loan and leasing amounted to SEK 190 (39) million. The period's profit after tax for the remaining operations amounted to SEK 150 (2) million which corresponds to a profit per share attributable to remaining operations and the Parent Company's shareholders before and after dilution of SEK 0.41 (0.01).
Extraordinary items that are adjusted in EBITA affected the period January-December 2022 positively by SEK 7 (-16) million. These consisted of revaluation of contingent consideration which affects the result positively by SEK 32 million, acquisitionrelated transaction costs of SEK 11 million, costs related to preparation for change of listing of SEK 8 million and restructuring costs of SEK 6 million.
Within Water, we offer specialised services and products in water technology that focus on improving the water infrastructure. Customers consist partly of public clients in need of pumping water from one place to another in wastewater systems and maintaining the water supply of various infrastructure facilities, partly of prop erty owners and HVAC operators responsible for water distribution and wastewater management in commercial properties, and partly of industrial companies in need of water filters, water pumps and irrigation systems for various applications. A significant part of the segment consists of maintenance, aftermarket services and product sales of water pumps, water filters and irrigation systems.
| SEK million | Oct-Dec 2022 |
Oct-Dec 2021 |
Jan-Dec 2022 |
Jan-Dec 2021 |
|---|---|---|---|---|
| Net sales | 375 | 211 | 1,440 | 211 |
| EBITA | 30 | 8 | 142 | 8 |
| EBITA margin | 8.0% | 3.8% | 9.9% | 3.8% |
The quarter has shown solid demand for our products and services. The quarter has been affected by increased raw material prices which, however, have had an insig nificant impact on margins as the price increases continuously have been passed on to customers. The quarter has been negatively affected by a few assignments to the public sector, which to some extent weighed on the EBITA margin. These assign ments will end in the first quarter of 2023 and are not expected to affect profitability during the next quarters.
Net sales for the fourth quarter amounted to SEK 375 (211) million, and for the period January - December 2022 net sales amounted to SEK 1,440 (211) million. The increase compared to prior year refers mainly to acquired net sales but also organic growth, and to a lesser extent, exchange rate effects.
EBITA for the fourth quarter amounted to SEK 30 (8) million, corresponding to an EBITA margin of 8.0% (3.8%). EBITA for the period January-December 2022 amounted to SEK 142 (8) million, corresponding to an EBITA margin of 9.9% (3.8%).
Within Services, we offer niche services and products to commercial properties. End customers are primarily commercial property owners in need of improving energy efficiency and making adjustments to meet stricter environmental and accessibility requirements, but also municipal clients in need of installation work. Product- and services primarily consist of installation and maintenance within, for example, plumbing, electricity, suspended ceilings, climate control and technical insulation, but also product sales of security doors and glass- and aluminum parts.
| SEK million | Oct-Dec 2022 |
Oct-Dec 2021 |
Jan-Dec 2022 |
Jan-Dec 2021 |
|---|---|---|---|---|
| Net sales | 575 | 271 | 1,951 | 400 |
| EBITA | 69 | 23 | 211 | 34 |
| EBITA margin | 12.1% | 8.5% | 10.8% | 8.5% |
Demand for our services and products during the fourth quarter has in general con tinued to be strong. Single operations with indirect exposure to private customers have seen weaker demand in this customer segment. The segment's operations have gradually increased the ability to limit the effects from increased material prices by passing on price increases to the customer and finding alternative solu tions in their supply chain.
Net sales for the fourth quarter amounted to SEK 575 (271) million, and for the period January - December 2022 net sales amounted to SEK 1,951 (400) million. The increase compared with prior year is primarily driven by acquired net sales and organic growth.
EBITA for the fourth quarter amounted to SEK 69 (23) million, corresponding to an EBITA margin of 12.1% (8.5%). EBITA for the period January - December 2022 amounted to SEK 211 (34) million, corresponding to an EBITA margin of 10.1% (8.5%).
Since prior year several acquisitions have been added to the segment and the acquisitions which made up the segment as of December 31, 2021 did not contribute to the segment's results during the entire period, hence the periods are not completely comparable.
Within Infrastructure, we offer niche work in land & civil engineering, railways and other infrastructure. Customers are primarily public clients, but also private opera tors, who invest in and maintain various parts of the infrastructure such as railways, subways, schools, hospitals, perimeter security and water and wastewater systems. The segment is mainly made up of specialists, which include maintenance work on railways, above and below ground work, courtyard renovations, foundation laying, concrete renovation in garages and product sales of moisture protection and sew age treatment systems.
| SEK million | Oct-Dec 2022 |
Oct-Dec 2021 |
Jan-Dec 2022 |
Jan-Dec 2021 |
|---|---|---|---|---|
| Net sales | 1,075 | 505 | 3,539 | 704 |
| EBITA | 115 | 51 | 374 | 87 |
| EBITA margin | 10.7% | 10.1% | 10.6% | 12.4% |
Demand has remained strong and we have had high occupancy within the seg ment during the quarter. The quarter has been affected by increased raw material prices, which however, had an insignificant impact on margins as the price increases to a large extent were carried over to customer. The segment's EBITAmargin in the quarter has to some extent been negatively affected by weather effects from a cold December month.
Net sales for the fourth quarter amounted to SEK 1,075 (505) million, and for the period January - December 2022 net sales amounted to SEK 3,539 (704) million. The increase compared with prior year is primarily driven by acquired net sales but also by organic growth.
EBITA for the fourth quarter amounted to SEK 115 (51) million, corresponding to an EBITA margin of 10.7% (10.1%). EBITA for the period January - December 2022 amounted to SEK 374 (87) million, corresponding to an EBITA margin of 10.6% (12.4%).
Since prior year several acquisitions have been added to the segment and the acquisitions which made up the segment as of December 31, 2021 did not contribute to the segment's results during the entire period, hence the periods are not completely comparable.
Cash flow from operating activities during the fourth quarter amounted to SEK 211 (11) million, of which changes in working capital amounted to SEK 12 (-77) million. The operating cash flow amounted to SEK 258 (-31) million, which corresponds to a cash conversion of 95% (-28%). For the period January - December 2022, cash flow from operating activities amounted to SEK 421 (-10) million, changes in working capital amounted to SEK -151 (-128) million and operating cash flow amounted to SEK 713 (-42) million, which corresponds to a cash conversion of 77% (-26%). The Group's working capital varies over the quarters, mainly due to fluctuations in the items ongoing projects, accounts receivable and accounts payable. The decrease in working capital in the fourth quarter was mainly driven by decreased accounts receivables and contract assets, though this was to some extent offset by decreased accounts payable and contract liabilities.
The Group's investments during the fourth quarter excluding acquisitions amounted to SEK 26 (65) million, and SEK 59 (75) million for January - December 2022. During the quarter no acquisitions of subsidiaries have been completed. Total purchase price for the acquisition of subsidiaries for January - December 2022 amounted to 1,874 (4,171) million. For more information, see the section Acquisitions. Paid contingent consideration amounted to SEK 0 (0) million in the fourth quarter and SEK 143 (0) million for January - December 2022.
Equity at the end of the period amounted to SEK 4,377 (3,593) million. Equity in the Parent company amounted to SEK 4,266 (3,552) million.
The Group's cash and cash equivalents at the end of the period amounted to SEK 608 (1,518) million. The interest-bearing liabilities, including lease liabilities, amounted to SEK 3,378 (3,003) at the end of the period. At the end of the period, the Group had a net financial debt, defined as interest-bearing liabilities less cash and cash equivalents, of SEK 2,770 (1,486) million. The net financial debt in relation to pro forma EBITDA was 2.9x (2.3x). Contingent consideration by the end of the fourth quarter amounted to SEK 399 (465) million. Total liabilities amounted to SEK 5,573 (4,726) million as of December 31, 2022.
Vestum has a credit facility agreement with Danske Bank A/S, Denmark, Swedish Branch and Skandinaviska Enskilda Bank AB (publ) and Swedbank AB (publ) as creditors. The facility amounts to a total of SEK 900 million, of which Vestum has utilized SEK 106 million at the end of the period. Total available liquidity at the end of the period, defined as cash and cash equivalents and unutilized credit facilities, amounted to SEK 1,402 million at the end of the period.
The number of full-time employees as of December 31, 2022 amounted to 2,323 (1,764) people.
During the Extraordinary General Meeting in Vestum AB (publ) at December 17, 2021, it was decided to establish a warrant-based incentive program by issuing a maximum of 3,520,193 warrants, to key people in the Group and the portfolio companies. The warrants have been transferred on market terms at a price that was established based on an estimated market value calculated by an independent valuation institute. The payment of the incentive program starting in the first quarter of 2022, has been recorded against equity and increases equity by SEK 11,475,831.
At the annual general meeting in May 23, 2022, it was decided to introduce another incentive program by issuing a maximum of 3,650,000 warrants, to key people in the Group and the portfolio companies. The warrants have been transferred on market terms at a price that was established based on an estimated market value calculated by an independent valuation institute. The payment of the incentive program starting in the second quarter of 2022, has been recorded against equity and increases equity by SEK 8,103,000. As of December 31, 2022 the incentive programs do not have a diluting effect on equity.
| Outstanding program |
Number of options |
Corresponding number of shares |
Redemption rate per option (SEK) |
Redemption period |
Maximum increase in share capital (SEK) |
|---|---|---|---|---|---|
| 2021/2025 | 3,520,193 | 3,520,193 | 70.9 | 1 Jan 2025 - 31 Mar 2025 |
1,161,664 |
| 2022/2025 | 3,650,000 | 3,650,000 | 31.4 | 1 Jun 2025 - 31 Aug 2025 |
1,216,667 |
The Parent company's net sales during the fourth quarter amounted to SEK 6 (7) million. Operating profit amounted to SEK -17 (-6) million. Net financial items amounted to SEK -41 (-18) million and consisted mostly of interest on loans. Profit for the period amounted to SEK 174 (-16) million, the increase is due to group contributions received.
For January - December 2022, net sales amounted to SEK 23 (7) million, operating profit amounted to SEK -60 (-15) million and net financial items amounted to SEK -78 (-26) million. Profit for January - December 2022 amounted to SEK 112 (-32) million, the increase is due to group contributions received.
The balance sheet total as of December 31, 2022, amounted to SEK 6,810 (5,552) million, of which equity amounted to SEK 4,266 (3,552) million. Cash and cash equivalents in the Parent Company amounted to SEK 443 (1,244) million.
Since the end of the period Vestum has completed the acquistion of MDT Markvaruhuset AB.
After the end of the period, Vestum has established the group's sustainability strategy including overall sustainability goals.
During the period January - December 2022, 21 acquisitions were agreed, of which 20 were completed. In all cases, 100 percent of the shares were acquired. Total purchase price for the acquisition of subsidiaries amounted to SEK 1,874 million, of which SEK 585 million has been paid with equity shares, and the remaining part has or will be paid with cash and cash equivalents. Equity interests are calculated based on a volume weighted average share price over ten days for the Vestum share. A total of 15,737,515 shares have been issued to settle these commitments.
| Closed by the end of the period (SEKm) | Segment Completed | Annual net sales |
Number of employees |
|
|---|---|---|---|---|
| Mobile Container Repair AB | Infrastructure | January | 120 | 36 |
| NA Altanglas AB | Services | January | 35 | 14 |
| Mälarmontage Glas & Metall AB | Services | January | 23 | 11 |
| KvalitetsMark R AB | Infrastructure | January | 224 | 11 |
| Västsvensk Byggskruv AB | Services | January | 185 | 19 |
| Galore i Uppsala AB | Services | February | 94 | 44 |
| Lerums Tekniska Isolering LTI AB | Services | February | 71 | 37 |
| Scanregn A/S | Water | February | 122 | 18 |
| KylKontroll Göteborg AB | Services | February | 106 | 32 |
| Marbit AB | Infrastructure | March | 272 | 49 |
| ABAX Dörrsystem AB | Services | April | 73 | 19 |
| Fibber A/S | Infrastructure | April | 45 | 25 |
| Kjellgrens El i Tumba AB | Services | April | 34 | 18 |
| Spännbalkkonsult SBK AB | Infrastructure | April | 80 | 24 |
| Østcom A/S | Infrastructure | April | 95 | 56 |
| Pordrän AB | Infrastructure | April | 82 | 10 |
| Högsbo El AB | Services | April | 41 | 23 |
| ABR Mark & Järnväg AB | Infrastructure | May | 62 | 13 |
| Rockcon AB | Infrastructure | June | 11 | 2 |
| Akershus Elektro A/S | Services | June | 66 | 35 |
1,839 496
Transaction costs for the acquisitions of SEK 11 million have been charged to the Group's earnings during the period January - December 2022. These are reported under Other operating expenses in the income statement. The goodwill of SEK 1,095 million that was generated by the acquisitions is attributable to synergy effects, employees and future financial benefits that are not individually identified and reported separately.
In accordance with agreements on contingent considerations, the Group must pay cash compensation and/or with the issue of shares linked to future earnings. Equity interests are calculated based on a volume weighted average share price over 10 days for the Vestum share. The maximum non-discounted amount that may be paid to the previous owners amounts to SEK 609 million, of which SEK 137 million refers to acquisitions made during 2022. The likely outcome of the contingent consideration is based on the Group's forecast of future development and earnings in each entity. Total contingent consideration liability amounts to SEK 399 million, of which SEK 89 million refers to acquisitions completed in 2022. During the year, contingent consideration of SEK 143 million was paid. Paid and revalued contingent consideration had a positive net impact of SEK 31 (0) million on the period's result, which is reported in Other operating income and Other operating expenses in the income statement. The current part of the liability amounts to SEK 240 million. The fair value of the contingent consideration is at level 3 in the fair value hierarchy. Contingent consideration payments are reported in Other current liabilities and Other long-term liabilities in the balance sheet.
| SEK million | 31 dec 2022 | 31 dec 2021 |
|---|---|---|
| Opening balance | 465 | 0 |
| Acquisitions during period | 104 | 467 |
| Paid contingent consideration | -143 | - |
| Revaluation of contingent consideration, via operating profit | -31 | - |
| Exchange rate difference | 2 | -2 |
| Closing balance at period end | 399 | 465 |
The acquisitions made during the period January to December 2022 have had the following effects on the Group's assets and liabilities. The effects are preliminary as the Group has not received final audited information from the acquired companies. Any adjustments in connection with the final PPA are not expected to have a significant impact on the Group's earnings or financial position. Equity interests are calculated based on a volume weighted average share price over 10 days for the Vestum share.
| SEK million | Total |
|---|---|
| Intangible assets | 588 |
| Other non-current assets | 47 |
| Other current assets | 419 |
| Cash and cash equivalents | 117 |
| Non-current liabilities | -6 |
| Deferred tax liabilities | -136 |
| Current liabilities | -251 |
| Non-controlling interests | - |
| Net assets and liabilities | 778 |
| Goodwill | 1,095 |
| Total purchase price | 1,874 |
| Impact on cash and cash equivalents | |
|---|---|
| Total purchase price | 1,874 |
| Conditional purchase price | -104 |
| Settlement in shares | -585 |
| Cash and cash equivalents in acquired units |
-117 |
| Impact on cash and cash equivalents |
1,068 |
| Paid contingent consideration | 143 |
| Total impact on cash and cash equivalents |
1,211 |
| Jan-Dec 2022 | |
|---|---|
| Net sales | 1,404 |
| EBITA | 186 |
| Operating profit (EBIT) | 116 |
| Profit/loss for the period | 71 |
| the acquisitions had been part of | ||
|---|---|---|
| the Group on January 1, 2022 |
| Net sales | 1,839 |
|---|---|
| EBITA | 202 |
| Operating profit (EBIT) | 192 |
| Profit/loss for the period | 115 |
Vestum entered into one acquisition after the end of the period. The acquisition was completed in January and consolidated from February. 100 percent of the shares were acquired.
| Completed after the end of the period |
Segment | Completed | Annual net sales | Number of employees |
|---|---|---|---|---|
| MDT Markvaruhuset AB | Infrastructure | January | 143 | 19 |
| 143 | 19 |
| SEK million | Oct-Dec 2022 |
Oct-Dec 2021 |
Jan-Dec 2022 |
Jan-Dec 2021 |
|---|---|---|---|---|
| Remaining operations | ||||
| Net sales | 2,025 | 987 | 6,930 | 1,316 |
| Total operating income | 2,025 | 987 | 6,930 | 1,316 |
| Materials and purchased services | -1,090 | -505 | -3,765 | -662 |
| Other external costs | -192 | -92 | -600 | -128 |
| Personnel costs | -487 | -270 | -1,673 | -349 |
| Other operating income | 21 | -1 | 69 | - |
| Other operating expenses | -7 | -8 | -37 | -16 |
| Total operating expenses and other operating income |
-1,754 | -877 | -6,007 | -1,155 |
| EBITDA | 271 | 111 | 923 | 161 |
| Depreciation excl. acquired surplus value |
-66 | -39 | -244 | -61 |
| EBITA | 205 | 72 | 679 | 100 |
| Amortisation attributable to acquired surplus value |
-80 | -42 | -301 | -55 |
| Operating profit (EBIT) | 125 | 30 | 378 | 45 |
| Financial items net | -57 | -27 | -190 | -37 |
| Earnings before tax | 68 | 3 | 188 | 9 |
| Income tax | -19 | -5 | -38 | -6 |
| Profit/loss for the period from con tinuing operations |
49 | -2 | 150 | 2 |
| Profit/loss from operations held for sale |
-11 | -4 | -7 | 4 |
| Profit/loss for the period | 38 | -5 | 142 | 6 |
| SEK million | Oct-Dec 2022 |
Oct-Dec 2021 |
Jan-Dec 2022 |
Jan-Dec 2021 |
|---|---|---|---|---|
| The profit/loss for the period attributable to: |
||||
| Parent company shareholders | 37 | -5 | 141 | 5 |
| Non-controlling interests | 1 | - | 1 | 1 |
| Average number of shares during the period 1) 2) |
367,645,024 | 336,005,504 | 364,508,628 | 188,831,121 |
| Number of shares issued at the end of the period 1) |
367,645,024 | 351,907,509 | 367,645,024 | 351,907,509 |
| Profit/loss attributable to remaining operations and the Parent compa ny's shareholders per share 2), SEK |
0.13 | -0.01 | 0.41 | 0.01 |
| Profit/loss attributable to Parent company's shareholders per share 2), SEK |
0.10 | -0.02 | 0.39 | 0.03 |
1) Number of shares is adjusted based on reverse split 2021 2) Before and after dilution
| SEK million | Oct-Dec 2022 |
Oct-Dec 2021 |
Jan-Dec 2022 |
Jan-Dec 2021 |
|---|---|---|---|---|
| Profit/loss for the period | 38 | -5 | 142 | 6 |
| Other comprehensive income | ||||
| Exchange differences on translation of foreign operations |
27 | 25 | 41 | 25 |
| Total comprehensive income for the period |
65 | 20 | 183 | 31 |
| Total comprehensive income for the period attributable to: |
||||
| Parent company's shareholders | 64 | 20 | 182 | 30 |
| Non-controlling interests | 1 | - | 1 | 1 |
| Total comprehensive income attributable to Parent company's shareholders, originated from: |
||||
| Remaining operations | 76 | 23 | 190 | 27 |
| Operations held for sale | -11 | -4 | -7 | 4 |
| SEK million | 31 Dec 2022 | 31 Dec 2021 |
|---|---|---|
| Assets | ||
| Intangible assets | 6,276 | 4,813 |
| Property, plant and equipment | 304 | 271 |
| Right of use assets | 740 | 486 |
| Financial assets | 8 | 7 |
| Deferred tax assets | 24 | - |
| Other non-current assets | 3 | 2 |
| Total non-current assets | 7,354 | 5,580 |
| Inventories | 429 | 197 |
| Accounts receivable | 1,063 | 680 |
| Contract assets | 243 | 116 |
| Other current assets | 80 | 50 |
| Prepaid expenses and accrued income | 120 | 133 |
| Cash and cash equivalents | 608 | 1,518 |
| Assets held for sale | 52 | 45 |
| Total current assets | 2,596 | 2,738 |
| Total assets | 9,950 | 8,318 |
| SEK million | 31 Dec 2022 | 31 Dec 2021 |
|---|---|---|
| Equity and liabilities | ||
| Equity attributable to owners of the company | 4,374 | 3,591 |
| Non-controlling interests | 3 | 2 |
| Total equity | 4,377 | 3,593 |
| Non-current provisions | 22 | 7 |
| Non-current interest-bearing liabilities | 2,638 | 2,510 |
| Non-current lease liabilities | 543 | 362 |
| Deferred tax liabilities | 575 | 454 |
| Other non-current liabilities | 160 | 334 |
| Total non-current liabilities | 3,938 | 3,667 |
| Current provisions | 2 | 1 |
| Current interest-bearing liabilities | 3 | 12 |
| Current lease liabilities | 194 | 119 |
| Accounts payable | 528 | 322 |
| Contract liabilities | 119 | 68 |
| Other current liabilities | 437 | 315 |
| Accrued expenses and deferred income | 340 | 209 |
| Liabilities relating to assets held for sale | 11 | 13 |
| Total current liabilities | 1,635 | 1,059 |
| Total liabilities | 5,573 | 4,726 |
| Total equity and liabilities | 9,950 | 8,318 |
| Equity attributable to the Parent company's shareholders | ||||||
|---|---|---|---|---|---|---|
| SEK million | Share capital | Share premium reserve |
Reserves | Retained earnings incl. profit/loss for the period |
Non-controlling interests |
Total equity |
| Opening balance as of January 1, 2021 | 13 | 274 | -14 | -281 | - | -9 |
| Profit/loss for the period | - | - | - | 5 | 1 | 6 |
| Other comprehensive income for the period |
- | - | 25 | - | - | 25 |
| Total comprehensive income | - | - | 25 | 5 | 1 | 31 |
| Total transactions with owners | 104 | 3,465 | - | - | 1 | 3,570 |
| Closing balance as of December 31, 2021 | 117 | 3,739 | 11 | -276 | 2 | 3,593 |
| Opening balance as of Janury 1, 2022 | 117 | 3,739 | 11 | -276 | 2 | 3,593 |
| Profit/loss for the period | - | - | - | 141 | 1 | 142 |
| Other comprehensive income for the period |
- | - | 41 | - | - | 41 |
| Transfer to other reservs | - | - | 1 | -1 | - | - |
| Total comprehensive income | - | - | 42 | 140 | 1 | 183 |
| Total transactions with owners | 5 | 597 | - | - | -1 | 601 |
| Closing balance as of December 31, 2022 | 123 | 4,335 | 53 | -136 | 3 | 4,377 |
| SEK million | Oct-Dec 2022 |
Oct-Dec 2021 |
Jan-Dec 2022 |
Jan-Dec 2021 |
|---|---|---|---|---|
| Earnings before tax | 68 | 3 | 188 | 9 |
| Adjustment for non-cash items | 150 | 83 | 526 | 115 |
| Income tax paid | -19 | 2 | -142 | -5 |
| Changes in working capital | 12 | -77 | -151 | -128 |
| Cash flow from operating activities | 211 | 11 | 421 | -10 |
| Purchase and sale of intangible assets | -2 | -33 | -2 | -33 |
| Purchase of property, plant and equipment | -24 | -32 | -58 | -42 |
| Purchase of subsidiaries and activities | - | -1,256 | -1,211 | -2,133 |
| Proceeds from other financial assets net | - | - | 1 | 1 |
| Cash flow from investing activities | -26 | -1,321 | -1,269 | -2,207 |
| Proceeds from borrowings | -95 | 678 | 108 | 1,526 |
| Repayments of lease liabilities | -49 | -23 | -169 | -37 |
| Proceeds from capital increase | - | 1,988 | 20 | 2,288 |
| Changes in other non-current liabilities | -3 | 4 | -7 | 3 |
| Cash flow from financing activities | -146 | 2,647 | -48 | 3,780 |
| Net cash flow from continuing operations | 39 | 1,338 | -896 | 1,563 |
| Net cash flow from operations held for sale | -15 | -4 | -18 | -49 |
| Net cash flow for the period | 24 | 1,334 | -914 | 1,515 |
| Cash and cash equivalents at the beginning of the period | 581 | 183 | 1,518 | 2 |
| Cash flow for the period | 24 | 1,334 | -914 | 1,515 |
| Exchange rate difference in cash and cash equivalents | 2 | - | 4 | 1 |
| Cash and cash equivalents at the period end | 608 | 1,518 | 608 | 1,518 |
| Cash flow regarding interest | ||||
| Interest paid | -43 | -14 | -145 | -17 |
| Interest received | 2 | - | 2 | - |
Vestum divides its operations into three segments: Water, Services and Infrastructure. Vestum has identified these three segments as complementary, both over a business cycle and seasonally.
The tables below only include the financial outcome for the periods in which each portfolio company was part of the Vestum Group.
| SEK million | Oct-Dec 2022 |
Oct-Dec 2021 |
Jan-Dec 2022 |
Jan-Dec 2021 |
|---|---|---|---|---|
| Net sales per geographic market |
||||
| Sweden | 1,637 | 815 | 5,542 | 1,143 |
| Norway | 163 | 58 | 543 | 58 |
| Other countries | 226 | 114 | 845 | 114 |
| Total net sales | 2,025 | 987 | 6,930 | 1,316 |
| SEK million | Oct-Dec 2022 |
Oct-Dec 2021 |
Jan-Dec 2022 |
Jan-Dec 2021 |
|---|---|---|---|---|
| Net sales per segment | ||||
| Water | 375 | 211 | 1,440 | 211 |
| Services | 575 | 271 | 1,951 | 400 |
| Infrastructure | 1,075 | 505 | 3,539 | 704 |
| Total net sales | 2,025 | 987 | 6,930 | 1,316 |
Cost for Group functions refers to group management, IT, legal, M&A and group finance functions. Costs related to operating group functions (country- and division managers, business control, HR and sustainability) have been distributed to each segment.
All segment's have revenue recognition at a point in time, and over time.
| Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec | |
|---|---|---|---|---|
| SEK million | 2022 | 2021 | 2022 | 2021 |
| EBITA per segment | ||||
| Water | 30 | 8 | 142 | 8 |
| Services | 69 | 23 | 211 | 34 |
| Infrastructure | 115 | 51 | 374 | 87 |
| Group functions | -15 | -4 | -56 | -14 |
| Adjusted EBITA | 200 | 79 | 672 | 116 |
| Adjustments | 5 | -7 | 7 | -16 |
| EBITA | 205 | 72 | 679 | 100 |
| Amortisation attributable to acquired |
||||
| surplus value | -80 | -42 | -301 | -55 |
| Operating profit (EBIT) | 126 | 30 | 378 | 45 |
| Financial items net | -57 | -27 | -190 | -37 |
| Earnings before tax | 68 | 4 | 188 | 9 |
| Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec | |
|---|---|---|---|---|
| SEK million | 2022 | 2021 | 2022 | 2021 |
| Net sales | 6 | 7 | 23 | 7 |
| Total operating income | 6 | 7 | 23 | 7 |
| Other external expenses | -8 | -8 | -27 | -15 |
| Personnel costs | -11 | -4 | -44 | -6 |
| Other operating income | - | - | - | - |
| Other operating expenses | -4 | - | -10 | - |
| Depreciation | - | - | -1 | - |
| Total operating expenses and | ||||
| other operating income | -23 | -12 | -82 | -21 |
| Operating profit/loss | -17 | -6 | -60 | -15 |
| Financial items net | -41 | -18 | -78 | -26 |
| Appropriations | 286 | - | 286 | - |
| Earnings before tax | 228 | -24 | 149 | -41 |
| Income tax | -54 | 8 | -37 | 8 |
| Profit/loss for the period | 174 | -16 | 112 | -32 |
| SEK million | Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec |
|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |
| Profit/loss for the period and total comprehensive income for the period |
174 | -16 | 112 | -32 |
| Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec | SEK million | 31 Dec 2022 | 31 Dec 2021 | |
|---|---|---|---|---|---|---|---|
| SEK million | 2022 | 2021 | 2022 | 2021 | Assets | ||
| Net sales | 6 | 7 | 23 | 7 | Intangible assets | 2 | |
| Total operating income | 6 | 7 | 23 | 7 | Property, plant and equipment | 8 | |
| Other external expenses | -8 | -8 | -27 | -15 | Financial assets | 5,712 | |
| Personnel costs | -11 | -4 | -44 | -6 | Deferred tax asset | - | |
| Other operating income | - | - | - | - | Non-current intercompany receivables | 155 | 3,067 |
| Other operating expenses | -4 | - | -10 | - | Total non-current assets | 5,877 | 4,183 |
| Depreciation | - | - | -1 | - | Current intercompany receivables | 476 | |
| Total operating expenses and | Other current receivables | 2 | |||||
| other operating income | -23 | -12 | -82 | -21 | Prepaid expenses and accrued income | 12 | |
| Operating profit/loss | -17 | -6 | -60 | -15 | Cash and cash equivalents | 443 | |
| Financial items net Appropriations |
-41 286 |
-18 - |
-78 286 |
-26 - |
Total current assets | 933 | 1,369 |
| Earnings before tax | 228 | -24 | 149 | -41 | Total assets | 6,810 | 5,552 |
| Income tax | -54 | 8 | -37 | 8 | Equity and liabilities | ||
| Profit/loss for the period | 174 | -16 | 112 | -32 | Equity attributable to owners of the company | 4,266 | 3,552 |
| Total equity | 4,266 | 3,552 | |||||
| Untaxed reserves | |||||||
| 46 | |||||||
| The Parent company report on comprehensive income in summary | Non-current interest-bearing liabilities | 1,484 | |||||
| Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec | Other non-current liabilities | 111 | ||
| SEK million | 2022 | 2021 | 2022 | 2021 | Total non-current liabilities | 1,641 | |
| Profit/loss for the period and total comprehensive income for |
Current intercompany liabilities | 677 | |||||
| the period | 174 | -16 | 112 | -32 | Accounts payable | 8 | |
| Other current liabilities | 194 | ||||||
| Accrued expenses and deferred income | 26 | ||||||
| Total current liabilities | 904 | ||||||
| Total liabilities | 2,544 | 1,479 1,779 2,000 |
The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and the interpretations provided by the IFRS Interpretations Committee (IFRIC) that have been adopted by the European Commission for use within the EU. The standards and interpretations applied are those valid as of January 1, 2022, and which were adopted by the EU. The Group's interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and RFR 1, Supplementary Accounting Rules for Groups. The interim report for the Parent Company has been prepared in accordance with the Annual Accounts Act and RFR 2, Accounting for Legal Entities. The interim report uses the same accounting principles and valuation methods as were used in the annual report for 2021.
Amounts in tables and calculations can be rounded, which means the stated total amounts are not always an exact sum of the rounded individual amounts.
From January 1, 2022, other standards, amendments and interpretations of existing standards that have not yet entered into force or been published by the IASB have also not been applied by the Group.
Vestum's main risk factors consist of market risks such as changes in the macro economic environment and/or the current competitive situation. In addition, the Group is exposed to operational risks such as project, customer and quality risks. The Group is also exposed to financial risks such as currency, interest rate, counterparty and credit risks.
Vestum continuously monitors the development of the war in Ukraine and its effects on raw material prices, energy prices, and supply chains disruptions.
During 2022, inflation has increased significantly on the markets where Vestum operates, which has led to higher prices on materials and labour. Vestum compensates
for the main part of these cost increases by increasing prices against customers which, however, takes affect with a certain delay.
The Group's interest-bearing liabilities are to some extent exposed to floating interest rates. Increased steering interest rate affects Vestum's floating interest rates. Vestum strives to, at all times, have a structured and efficient management of financial risks in accordance with the Group's finance policy.
Due to the changes in the risk factors described above, Vestum has evaluated the assumptions made regarding the valuation of assets and liabilities in the Group, and assesses that the changes of these assumptions do not have any significant impact.
The Parent company is affected by the above risks and uncertainties through its function as owner of the Group's subsidiaries. For more information on Vestum's risks and risk management please refer to the Annual report for 2021.
During the period, there were no transactions between Vestum and related parties that had a significant impact on the Company's financial position or earnings. For more information on related parties, refer to the annual report for 2021, note 28.
Contingent consideration that is valued at fair value in the balance sheet amounts to SEK 399 (465) million and is classified in level 3 according to the fair value hierarchy. The section Acquisitions presents how fair value is determined. Revaluation of the contingent consideration recorded in operating profit had a positive effect on the quarter result of SEK 8 (0) million. Financial assets in the form of non-current securities holdings valued at fair value in the balance sheet are classified in level 1 according to the fair value hierarchy. The non-current securities holdings amount to SEK 8 (7) million. For assets and liabilities reported at amortized cost, the carrying value corresponds to its fair value since the interest rate is at par with current market interest rates, or because the item is short-term.
The WeSC brand's operations delivered net sales for the full year of SEK 118 (98) million. The increase in net sales is attributable to the North American market. The earnings for January - December 2022 amounted to SEK -7 (4) million.
In connection with changing the operations, it was determined that the subsidiary WeSC is no longer part of the Group's core business. Due to the fact that the brand's operations are not part of the Group's core business, the Board has decided that the business will be divested. The process of divesting WeSC has been delayed, primarily due to a challenging macro economic environment, but the Board's assessment is that a divestment will take place within the coming twelve months, and therefore the results from the business are reported separately in the income statement in accordance with IFRS 5 regarding discontinued operations. Furthermore, assets and liabilities attributable to the business are reported as assets held for sale and liabilities that are directly related to assets held for sale.
| SEK million | Oct-Dec 2022 |
Oct-Dec 2021 |
Jan-Dec 2022 |
Jan-Dec 2021 |
|---|---|---|---|---|
| Total net sales from operations held for sale | 19 | 11 | 118 | 98 |
| Total costs from operations held for sale | -30 | -15 | -126 | -94 |
| Tax attributable to operations held for sale | - | - | - | - |
| Profit/loss from operations held for sale | -11 | -4 | -7 | 4 |
The ten largest shareholders as of December 31, 2022, according to Monitor.
| Name | Number of shares | Share of total |
|---|---|---|
| Conny Ryk | 56,550,000 | 15% |
| Anders Rosenqvist | 29,686,350 | 8% |
| Per-Arne Åhlgren | 22,897,442 | 6% |
| Handelsbanken Fonder | 22,255,789 | 6% |
| Swedbank Försäkring | 18,724,941 | 5% |
| Avanza Pension | 14,298,148 | 4% |
| Futur Pension | 13,832,429 | 4% |
| Olle Nykvist | 13,577,586 | 4% |
| Simon Göthberg | 13,500,000 | 4% |
| Olof Andersson | 13,500,000 | 4% |
| Total for the 10 largest shareholders based on no. of shares | 218,822,685 | 60% |
| Total number of shares, other shareholders | 148,822,339 | 40% |
| Total number of outstanding shares at the end of the period | 367,645,024 | 100% |
| SEK million (unless otherwise stated) | Oct-Dec 2022 |
Oct-Dec 2021 |
Jan-Dec 2022 |
Jan-Dec 2021 |
|---|---|---|---|---|
| Net sales | 2,025 | 987 | 6,930 | 1,316 |
| EBITDA 1) | 271 | 111 | 923 | 161 |
| EBITA1) | 205 | 72 | 679 | 100 |
| Operating profit/loss (EBIT) | 125 | 30 | 378 | 45 |
| EBITA margin %1) | 10.1 | 7.3 | 9.8 | 7.6 |
| EBIT margin % | 6.2 | 3.0 | 5.5 | 3.4 |
| Adjusted EBITA1) | 200 | 79 | 672 | 116 |
| Adjusted EBITA margin %1) | 9.9 | 8.0 | 9.7 | 8.8 |
| Financial net debt1) | 2,770 | 1,486 | 2,770 | 1,486 |
| Pro forma EBITDA1) | 948 | 643 | 948 | 643 |
| Financial net debt in relation to pro forma EBITDA1) |
2.9x | 2.3x | 2.9x | 2.3x |
| Number of employees at end of period1) | 2,323 | 1,764 | 2,323 | 1,764 |
| Average number of shares during the period 2) |
367,645,024 | 336,005,504 | 364,508,628 | 188,831,121 |
| EBITA per share, SEK 1) | 0.56 | 0.21 | 1.86 | 0.53 |
| Adjusted EBITA per share, SEK 1) | 0.54 | 0.23 | 1.84 | 0.61 |
| Earnings per share attributable to remaining operations and Parent company's shareholders, SEK |
0.13 | -0.01 | 0.41 | 0.01 |
| Earnings per share attributable to Parent company's shareholders, SEK |
0.10 | -0.02 | 0.39 | 0.03 |
| Operating cash flow 1) | 258 | -31 | 713 | -42 |
| Cash conversion % 1) | 95 | -28 | 77 | -26 |
1) The alternative performance measure (APM) is an alternative performance measure according to ESMA's guidelines. For reconciliation of alternative APMs, see pages 27-28
2) Average number of shares is adjusted based on reverse split 2021
| Performance measure | Definition | Purpose | Performance measure | Definition | Purpose | |
|---|---|---|---|---|---|---|
| EBITDA | Earnings before taxes, financial items and depreciation of tangible and intangible fixed assets and |
EBITDA is used to measure profit/loss from operating activities, independent of depreciation. |
EBIT margin | EBIT as a percentage of net sales. | EBIT margin is used to put the underlying operating profit/loss in relation to net sales. |
|
| EBITA | consolidated surplus value. Operating profit before amortisation of consolidated surplus values. |
EBITA is used to measure the underlying operating profit/loss before amortisation of consolidated |
Financial net debt | Non-current and current interest bearing liabilities (including lease liabilities) less cash and cash equivalents. |
The performance measure is used to show the size of the debt minus current cash (which in theory could be used to repay loans). |
|
| surplus value from operating activities. |
Pro forma EBITDA | EBITDA as if all acquisitions were a part of the Group during the last |
The performance measure is used to provide an indication of the Company's ability to pay its debt. |
|||
| EBITA margin | EBITA as a percentage of net sales. | EBITA margin is used to put the underlying operating profit/loss |
twelve months, adjusted with adjustment items. |
|||
| before amortisation on consolidated surplus value in relation to net sales. |
Financial net debt in relation to pro |
Refers to financial net debt divided by pro forma EBITDA. |
The performance measure can be used to assess the Group's financial |
|||
| Rolling 12 months | Refers to the last twelve months | Rolling 12 months is used to evaluate | forma EBITDA | leverage. | ||
| Adjustment items | from period end. Adjustment items refers to |
the latest twelve-month period. The performance measure is used |
Net sales growth | Refers to net sales growth for one period compared to the same period prior year. |
The performance measure is used to follow up the development in net sales between two comparable periods. |
|
| acquisition-related transaction costs, revaluation of contingent consideration, cost related to the forma EBITDA. change of listing to Nasdaq Stockholm, and restructuring costs. |
when calculating adjusted EBITA, adjusted EBITA margin and pro |
Organic net sales growth |
Refers to net sales growth, excluding exchange rate and acquisition effects, compared to same period prior year. Acquired |
The performance measure illustrates the underlying net sales development. |
||
| Adjusted EBITA | Refers to EBITA adjusted with adjustment items. |
Adjusted EBITA is used by management to measure the underlying earnings development. |
companies are included in organic growth from the point they have comparison figures for the actual period. |
|||
| Adjusted EBITA margin |
Adjusted EBITA as a percentage of net sales. |
Adjusted EBITA margin is used to put adjusted EBITA in relation to net sales. |
Operating cash flow |
EBITDA reduced by net investment in intangible |
The performance measure shows the cash flow from operations and is used when calculating cash conversion. |
|
| EBIT | Operating profit. Profit before tax on income for the period and financial items. |
EBIT is used to measure the underlying operating profit/loss from operating activities. |
and tangible fixed assets and change in working capital. |
|||
| Cash conversion | Operating cash flow as a percentage of EBITDA. |
Cash conversion is used to monitor cash generation from operations. |
Vestum presents a number of performance measures that are not defined in accordance with IFRS. The Company considers these measures to provide valuable supplementary information to investors and the management as they allow an evaluation of trends and performance. As not all companies calculate these measures in the same way, they are not always comparable with those used by other companies. These measures should therefore not be regarded as replacing measures that are defined in accordance with IFRS. Reconciliation of these measures is presented below. For definitions of performance measures, se previous page.
| SEK million | Oct-Dec 2022 |
Oct-Dec 2021 |
Jan-Dec 2022 |
Jan-Dec 2021 |
|---|---|---|---|---|
| Earnings measures | ||||
| (A) Net sales | 2,025 | 987 | 6,930 | 1,316 |
| Operating expenses and other operating income | -1,754 | -877 | -6,007 | -1,155 |
| (B) EBITDA | 271 | 111 | 923 | 161 |
| Depreciation excl. acquired surplus values | -66 | -39 | -244 | -61 |
| (C) EBITA | 205 | 72 | 679 | 100 |
| (C/A) EBITA margin | 10.1% | 7.3% | 9.8% | 7.6% |
| Adjustments items | ||||
| Acquisition-related transaction costs | - | 7 | 11 | 16 |
| Impact on profit/loss from contingent consideration | -8 | - | -31 | - |
| Costs related to preparations for change of listing | 4 | - | 8 | - |
| Restructuring costs | - | - | 6 | - |
| Total adjustments | -5 | 7 | -7 | 16 |
| (D) Adjusted EBITA | 200 | 79 | 672 | 116 |
| (D/A) Adjusted EBITA margin | 9.9% | 8.0% | 9.7% | 8.8% |
| (E) Average number of shares during the period 1) | 367,645,024 | 336,005,504 | 364,508,628 | 188,831,121 |
| (C/E) EBITA per share | 0.56 | 0.21 | 1.86 | 0.53 |
| Net sales growth | ||||
| Organic net sales growth | 193 | - | 294 | - |
| Exchange rate effect | 11 | - | 11 | - |
| Net sales from acquired companies | 833 | 987 | 5,308 | 1,316 |
| Net sales growth | 1,038 | 987 | 5,614 | 1,316 |
1) Average number of shares is adjusted based on reverse split 2021
| SEK million | Oct-Dec 2022 |
Oct-Dec 2021 |
Jan-Dec 2022 |
Jan-Dec 2021 |
|---|---|---|---|---|
| Balance measures | ||||
| Non-current interest-bearing liabilities |
2,638 | 2,510 | 2,638 | 2,510 |
| Current interest-bearing liabilities | 3 | 12 | 3 | 12 |
| Lease liabilities | 737 | 481 | 737 | 481 |
| Cash and cash equivalents | -608 | -1,518 | -608 | -1,518 |
| (F) Financial net debt | 2,770 | 1,486 | 2,770 | 1,486 |
| (G) Pro forma EBITDA | 948 | 643 | 948 | 643 |
| (F/G) Financial net debt in relation to pro forma EBITDA , times | 2.9x | 2.3x | 2.9x | 2.3x |
| Cash conversion | ||||
| (B) EBITDA | 271 | 111 | 923 | 161 |
| Net investment in intangible assets and property, plant and equipment |
-26 | -65 | -59 | -75 |
| Change in working capital | 12 | -77 | -155 | -128 |
| (H) Operating cash flow | 258 | -31 | 713 | -42 |
| (H/B) Cash conversion | 95% | -28% | 77% | -26% |
The Board of Directors and the CEO ensure that the interim report gives a true and fair view of the Parent Company's and the Group's operations, position and results and describes the significant risks and uncertainties faced by the Parent Company and the companies that are part of the Group.
Conny Ryk CEO
This report has not been subject to review by the company's auditors.
This information is information that Vestum AB (publ) is obliged to publish in accordance with the EU Market Abuse Regulation. The information was provided by the contact person below for publication on February 17, 2023 at 07:00 CET.
The financial statements for 2022 will be published on April 6, 2023. Interim report for the first quarter 2023 will be published on May 12, 2023. The Annual General Meeting 2023 will be held in May 23, 2023. Interim report for the second quarter 2023 will be published on August 18, 2023. Interim report for the third quarter 2023 will be published on November 17, 2023.
Conny Ryk; CEO Olof Andersson; CFO: Olle Nykvist; Head of communications and IR: [email protected] [email protected] [email protected]
Vestum AB (publ) Riddargatan 10 114 35 Stockholm Sweden
E-mail: [email protected] Website: www.vestum.se
Company information Org nr 556578-2496 Registered office: Stockholm Vestum's share is traded under the short name VESTUM on Nasdaq Stockholm Main Market
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