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Vestum AB
Quarterly Report • Aug 15, 2024
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Quarterly Report
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INTERIM REPORT JANUARY– JUNE 2024
Vestum AB (publ)
VESTUM Interim report January – June 2024
ACQUISITION AGENDA RESUMED
April–June 2024
- Net sales amounted to SEK 1,373 (1,534) million
- Operating profit before depreciation attributable to acquired surplus value (EBITA) amounted to SEK 136 (172) million
- Adjusted EBITA amounted to SEK 133 (178) million
- Operating profit (EBIT) amounted to SEK 60 (96) million
- Earnings per share2) before and after dilution amounted to SEK-0.01 (0.21)
- Cash flow from operating activities amounted to SEK 27 (78) million
- In April, Vestum completed the strategic review initiated in August 2023.In connection with this, the divestment of Plåtslagaren
Vestum in summary
SEK million
G.H Johansson AB and of the WesCbusiness was completed
• In April 2024, Vestum redeemed its SEK 900 million bond, which was set to mature in October 2024, using bank financing and cash resources. In connection with this, Vestum has updated the existing credit facility by adding another lender, Svensk Exportkredit, and increased the credit facility framework from SEK 1,200 million to SEK 1,800 million.
January–June 2024
Jan-Jun 2024
- Net sales amounted to SEK 2,613 (2,811) million
- Operating profit before depreciation attributable to acquired surplus value (EBITA) amounted to SEK 222 (299) million
Jan-Jun 2023
Rolling 12 months
Jan-Dec 2023
- Adjusted EBITA amounted to SEK 233 (297) million
- Operating profit (EBIT) amounted to SEK 70 (148) million
- Earnings per share2) before and after dilution amounted to SEK-0.10 (0.31)
- Cash flow from operating activities amounted to SEK 223 (210) million
- In January 2024, the divestment of Arctic Infra AB including subsidiaries, which was announced on December 2023, was completed
Subsequent events
• On August 9, Vestum, through its subsidiary Pump Supplies Ltd, acquired PDAS Holdings Ltd, including its subsidiaries
9.7 % Adjusted EBITA-margin April-June 2024
62 %
Cash conversion April-June 2024
2.7x
Financial net debt/ EBITDA June 2024, R12
This report is a translation of the Swedish original. In the event of discrepancies, the Swedish version shall prevail.
| EBITA margin % 1) | 9.9 | 11.2 | 8.5 | 10.6 | 9.8 | 10.8 |
|---|---|---|---|---|---|---|
| Adjusted EBITA 1) | 133 | 178 | 233 | 297 | 558 | 622 |
| Adjusted EBITA margin % 1) | 9.7 | 11.6 | 8.9 | 10.5 | 10.0 | 10.8 |
| EBITA per share before dilution, SEK 1) | 0.36 | 0.46 | 0.59 | 0.80 | 1.45 | 1.66 |
| Earnings per share before/after dilution, SEK 2) | −0.01 | 0.21 | −0.10 | 0.31 | −0.14 | 0.28 |
| Operating profit (EBIT) | 60 | 96 | 70 | 148 | 240 | 318 |
| Cash flow from operating activities | 27 | 78 | 223 | 210 | 646 | 634 |
| Operating cash flow 1) | 118 | 174 | 328 | 339 | 813 | 824 |
| Cash conversion % 1) | 62 | 77 | 100 | 83 | 107 | 98 |
Apr-Jun 2024
Net sales 1,373 1,534 2,613 2,811 5,563 5,762 EBITA 1) 136 172 222 299 545 623
Apr-Jun 2023
1) See pages 22-23 for definitions and reconciliation of alternative performance measures 2) Attributable to remaining operations and Parent company´s shareholders
COMMENTS BY THE CEO
STRONGEST SEGMENT DEVELOPMENT IN WATER
The second quarter has been characterised by a continued challenging market environment with lower volumes and profitability compared to the previous year. Organic growth amounted to -9%, but despite lower revenue we managed to reduce the financial net debt including contingent considerations by SEK 53 million to SEK 2,129 million. It is exciting that we are back in the acquisition market through the acquisition of PDAS, a UK market leader in wastewater pumping stations. The acquisition strengthens our already strong position in water infrastructure in the structurally growing UK market, while the Water segment approaches SEK 1 billion in revenue on a rolling 12-month basis. The acquisition was completed after the end of the quarter and will be consolidated into Vestum in the third quarter.
The Water segment continues to develop strongly, although we face tough reference figures as April-May 2023 was marked by extreme drought in the Nordics, which drove up volumes and profitability. Extreme weather was absent this quarter, but thanks to strong demand in the UK, the EBITA margin was strengthened from 22.2% to 23.7%. The segment is expected to develop steadily going forward.
In the Services segment, the weak property market has continued to negatively impact the segment's volumes and profitability, where primarily the product companies, which constitute 25% of the segment, have driven the weaker development. The segment's EBITA
margin amounted to 6.9% compared to 9.2% in the previous year. The product companies are more positive about the coming quarters, while the installation companies are relatively neutral with an expected return to growth in the latter part of the second half of the year.
The Infrastructure segment offers specialised work in selected parts of the infrastructure where the investment need is significant. Generally, the segment is positioned later in the economic cycle than Services and Water, and some companies face tough reference figures. Overall, this means that volumes have decreased for the first time since the economic downturn, which has also negatively impacted profitability. The segment generates an EBITA margin of 9.1% compared to 11.8% in the previous year. Like the first quarter, we have won several fine projects, and although the segment's weaker development in the quarter is expected to spill over into the second half of the year, we remain confident that the significant need for infrastructure investments will lead to stable growth going forward.
The cost efficiency measures communicated earlier this year have begun to show effect with reduced costs for central functions during the quarter. Furthermore, the work to strengthen cash flow has continued, and the operating cash flow amounted to SEK 118 million, corresponding to a cash conversion of 62%, which is admittedly weaker than the previous year driven by the volume decline. Over the past
twelve months, operating cash flow amounted to SEK 813 million, or a cash conversion of 107%. Free cash flow was affected by one-off costs of SEK 15 million from the refinancing process and amounted to SEK -29 million in the quarter.
Acquisition agenda resumed
The improved capital structure, achieved in connection with the strategic review, has allowed us to lower the group's capital cost and enabled acquisitions. This led to our first acquisition in two years, which was completed after the end of the quarter within the Water segment. The acquired company, PDAS, is an excellent add-on acquisition to Vestum's largest company, Pump Supplies. There are concrete synergies on both the revenue and cost side, and through the acquisition, we demonstrate our strategy to grow the Water segment, both through high organic growth and acquisitions. The ambition is for Water to become Vestum's largest segment over time.
We financed the acquisition through our own cash and existing credit facilities, rather than issuing shares as in previous acquisitions. The financial net debt excluding contingent considerations in relation to EBITDA amounts to 2.7x in the second quarter, which is above our financial target of 2.5x. We expect leverage to remain at a level above our financial target for the rest of 2024, but we believe that from a capital allocation perspective, it is right to invest in growth within the rapidly growing Water segment.
Market outlook
During the quarter, we have seen a generally positive trend shift in how our businesses view their future prospects. Vestum's main end-markets are driven by investments in construction and infrastructure, as well as climate change. These investments hit early in the economic cycle, which means that Vestum is affected before other sectors, but it also means that we return to growth earlier. At the same time, a part of Vestum is relatively independent of economic fluctuations as climate change and investments in water infrastructure are driving factors, which is reflected in the improved EBITA margin in the Water segment during the quarter.
We are humble about the short-term market development and expect a continued challenging market during the current quarter, but at the same time, our businesses are more optimistic about their market outlook now than earlier during the year.
Simon Göthberg CEO, Vestum AB (publ)
VESTUM Interim report January – June 2024 3
ABOUT VESTUM
Vestum consists of more than 60 niche companies with 1,800 employees providing services and products to the infrastructure sector. We specialise in sustainable development and, through our robust presence in the United Kingdom and Scandinavia, have a strong position in the Northern European market.
We develop and acquire niche companies with proven business models, sustainable competitive advantages, and strong local presence within the segments of Water, Services, and Infrastructure. Vestum's business model is based on decentralised governance, strong industry and customer focus, and entrepreneurial drive. Our ambition is to grow and become the leading Northern European industrial group in providing specialised services and products for a sustainable infrastructure.
With a clear focus on business development and sustainability as driving forces, we are developing and constructing a climateadapted, more sustainable, and vital infrastructure that meets the needs of tomorrow. Through long-term commitment and a commitment to acting responsibly throughout the value chain, Vestum contributes to sustainable development and long-term value creation.
Vestum´s share is traded on Nasdaq Stockholm, Mid Cap, with the shortname VESTUM. See further information on page 20, Owners.
Development per quarter
Net sales, rolling 12 months
Adjusted EBITA, rolling 12 months
Adjusted EBITA margin, rolling 12 months
Note: Reported figures are not adjusted according to IFRS 5 1) The decrerase in revenue in Q1 2023 and Q4 2023 is driven by divested operations.
FINANCIAL TARGETS
Vestum´s overall target is to create longterm profitable growth by acquiring and developing high-quality companies with good cash flows and strong market positions
Profit Growth
Vestum´s target in the medium term is to generate an average annual growth in EBITA per share of at least 15.0 percent.
Profitability
Vestum´s target in the medium term is to achieve an EBITA margin of at least 12.0 percent.
Capital structure
The financial net debt in relation to EBITDA shall be maximum 2.5x.
Dividend policy
Vestum´s dividend policy is that all profits and available cash flows will be re-invested in the business and/or used for new acquisitions.
2024 VESTUM´S SUSTAINABILITY WORK
Vestum's quarterly reporting describes selected parts of the work being carried out to ensure Vestum achieves its short-term and long-term sustainability goals, as well as providing a picture of Vestum's progress.
Internal sustainability reporting
During the second quarter, we continued our efforts to improve data quality in our sustainability reporting. To achieve this, it is important that our internal reporters understand the reporting process and the purpose of the metrics we use. To ensure this understanding, we organized a sustainability forum focused on quarterly reporting and the challenges that companies often face in this process. At the sustainability forum, we discussed specific, recurring challenges and methods to address them.
Workplace environment
Work-related injuries have increased compared to the same period last year. During the second quarter of 2024, the Lost Time Injury Frequency Rate (LTIFR)1) amounted to 5.4. For the same quarter of the previous year, the LTIFR was 4.4. It should also be noted regarding the LTIFR measurement that, starting from this report, we calculate LTIFR based on 1,000,000 hours worked, instead of the 200,000 hours worked we previously used. This change aligns with ESRS, where 1,000,000 hours worked is used as the standard.
- 1) LTIFR (Lost Time Injury Frequency Rate) refers to the number of accidents that have resulted in at least one day of sick leave per 1,000,000 hours worked. Serious accidents are defined as work-related incidents that result in at least one day of sick leave.
- 2) Managers in the Vestum Group refer to employees at the group level with personnel or functional responsibilities, as well as the CEO and CFO of Vestum's operating companies.
Skills recruitment
During the second quarter, we provided 16 internships and apprenticeships, compared to 37 internships and apprenticeships in the same quarter the previous year. This decrease is partly due to Vestum divesting certain companies that previously offered many internships and apprenticeships, and partly because Vestum's remaining companies have had fewer internships and apprenticeships than the previous year. Vestum has a shortterm goal of providing 400 internships and apprenticeships between 2023 and 2026.
At the end of the period, Vestum has provided a total of 173 positions, which means we are aligned with our targets.
Gender equality Gender distribution as of June 30, 2024
Gender equality
The proportion of female managers within the group has decreased slightly compared to the gender distribution reported at the end of the same quarter last year. The gender distribution for Vestum's board and employees in the group remains unchanged compared to the same quarter the previous year.
SUSTAINABILITY TARGETS
Climate
- By 2026, Vestum shall reduce CO2e-emissions by 25%
- By 2040, Vestum shall have net-zero climate impact
Biodiversity
- By 2026, Vestum shall have mapped its impact on biodiversity
- By 2040, Vestum shall reach net-zero impact on biodiversity
Work environment
- By 2026, Vestum shall establish a groupwide structure and culture that both ensures accurate reporting of incidents and accidents, and encourages individual employees to speak up if the workplace is perceived as unsafe
- By 2040, Vestum shall eliminate serious work accidents
Gender equality
- By 2026, at least 35% of Vestum managers shall be female and at least 15% of total employees in the Group shall be female
- By 2040, Vestum shall have an even gender distribution
Skills recruitment
- By 2026, Vestum shall have provided at least 400 internship and apprenticeship positions
- By 2040, Vestum shall have provided at least 1,000 internship and apprenticeship positions
THE VESTUM GROUP´S DEVELOPMENT
Comments on the Vestum Group´s development refer to the remaining operations unless otherwise is stated.
Net sales
The Group´s net sales for the second quarter amounted to SEK 1,373 (1,534) million, which is a decrease of 10.5 % compared to the same period last year. In April, Plåtslagaren G.H. Johansson AB was divested, which impacts the revenue by -1.5 %. The organic decrease of net sales was -9.1 %. Exchange rate effects had a positive impact of SEK 2 million.
For the period January–June 2024, the Group´s net sales amounted to SEK 2,613 (2,811) million. The decrease relates to acquired and divested net sales of -0.6 % as well of organic growth of -6.6 %. Exchange rate effects had a positive impact on the period of SEK 3 million.
Seasonality
Vestum´s activities are affected by seasonality due to weather conditions and number of working days. The Group´s diversified struc ture, regarding both market offering and geographical presence, limits exposure to seasonality to some extent.
Earnings
Profit before amortisation and write-down of acquired surplus value (EBITA) for the second quarter amounted to SEK 136 (172) million, which corresponds to an EBITA margin of 9.9 % (11.2 %). Adjusted EBITA amounted to SEK 133 (178) million, which corresponds to an adjusted EBITA margin of 9.7 % (11.6 %). Operating profit (EBIT) amounted to SEK 60 (96) million.
Extraordinary items that are adjusted in EBITA affected the quarter by SEK 3 (-6) million. These consisted of revaluation of contingent
consideration. Net financials for the second quarter amounted to SEK -51 (-2) million of which interest costs for loans and leasing amounted to SEK 44 (58) million. The quarter's net financials is affected by a one-off costs for the redemp tion of bonds of SEK 12 million. Other changes in the net financials are primarly explained by the exchange rate gain of SEK 40 million from the previous year, which occurred due to cur rency hedging in preparation for the repay ment of a bond in July 2023. The period´s profit for remaining operations amounted to SEK -5 (79) million, which corresponds to a profit per share attributable to remaining operations and the Parent company´s shareholders before and after dilution of SEK -0.01 (0.21).
Profit before amortisation and write-down of acquired surplus value (EBITA) for January - June 2024 amounted to SEK 222 (299) million, which corresponds to an EBITA margin of 8.5 % (10.6 %). Adjusted EBITA amounted to SEK 233 (297) million and operating profit (EBIT) amounted to SEK 70 (148) million. Net financials amounted to SEK -99 (-10) million, of which interest costs for loans and leasing amounted to SEK 94 (116) million. The peri ods profit for remaining operations amounted to SEK -39 (118) million which corresponds to a profit per share attributable to remaining operations and the Parent company´s shareholders before and after dilution of SEK-0.10 (0.31).
Extraordinary items that are adjusted in EBITA affected the period January - June negatively by SEK -11 (3) million. These consisted of revaluation of contingent consideration which affects the result positive by SEK 3 million and restructuring costs of SEK -14 million.
Net sales per segment, Q2 2024
SEGMENT WATER
The Water segment consists of market-leading niche companies focused on improving water infrastructure. The businesses are characterised by structural growth and specialise in pump technology, irrigation systems, water filters and drilling equipment.
Our market
Customers in this segment include both public clients in need of water pumping for various infrastructure facilities such as sewage sys tems and water supply, property owners and HVAC (Heating, Ventilation, and Air Condition ing) operators in need of water distribution and wastewater management, and industrial companies requiring water filters, water pumps, and irrigation systems for various applications. A significant portion of the seg ment consists of product sales of water pumps, drilling equipment, water filters, and irrigation systems. By offering pumps and irrigation sys tems that reduce customers' energy consump tion and water usage, Vestum contributes to reducing climate impact and promoting a more sustainable societal development.
Development during the period
Net sales for the second quarter amounted to SEK 203 (217) million and net sales for the period January - June amounted to SEK 418 (393) million.
EBITA for the second quarter amounted to SEK 48 (48) million, corresponding to an EBITA margin of 23.7 % (22.2 %). EBITA for the period January - June amounted to SEK 91 (79) million, corresponding an EBITA margin of 21.7 % (20.0 %).
Sales were slightly lower than the reference period, which was characterized by extreme weather in the Nordics. The UK operations con tinued to perform strongly, and profitability for the segment as a whole during the period was solid, with an improved EBITA margin. The seg ment is expected to develop steadily moving forward.
Net sales Q2 SEK million
203
EBITA marginl Q2 % 23.7
Earnings development
| SEK million | Apr-Jun 2024 |
Apr-Jun 2023 |
Jan-Jun 2024 |
Jan-Jun 2023 |
Rolling 12 months |
Jan-Dec 2023 |
|---|---|---|---|---|---|---|
| Net sales | 203 | 217 | 418 | 393 | 763 | 737 |
| EBITA | 48 | 48 | 91 | 79 | 155 | 142 |
| EBITA margin % | 23.7 | 22.2 | 21.7 | 20.0 | 20.3 | 19.3 |
Net sales per quarter SEK million
EBITA per quarter
32
43
48
SEK million
31
Q3 -23 Q4 -23 Q1 -24 Q2 -24
2024 SEGMENT SERVICES
The Services segment offers specialised services and products for primarily private and public property owners. The segment has a strong local presence in the Nordic region.
Our market
The product and service offerings primarily consist of installation and maintenance in areas such as HVAC, electricity, ceiling systems, climate control, and technical insulation. The end customers are mainly private and municipal property owners in need of adaptation to meet increased environmental and accessibility requirements, as well as energy efficiency. By offering services and products that reduce customers' energy consumption and climate impact, Vestum contributes to sustainable societal development.
Development during the period
Net sales for the second quarter amounted to SEK 414 (488) million and net sales for the period January - June amounted to SEK 829 (993) million.
EBITA for the second quarter amounted to SEK 29 (45) million, corresponding to an EBITA margin of 6.9 % (9.2 %). EBITA for the period January - June amounted to SEK 61 (86) million, corresponding an EBITA margin of 7.3 % (8.7 %). Demand and profitability in the quarter were weaker than in the same period prior year, driven by a weaker market for the segment's operations, particularly for the product companies. However, the product companies have a more positive outlook for the upcoming quarters, while the installation companies remain relatively neutral about the outlook, with expected growth returning in the later part of the second half of the year.
414
EBITA margin Q2
Earnings development
| SEK million | Apr-Jun 2024 |
Apr-Jun 2023 |
Jan-Jun 2024 |
Jan-Jun 2023 |
Rolling 12 months |
Jan-Dec 2023 |
|---|---|---|---|---|---|---|
| Net sales | 414 | 488 | 829 | 993 | 1,715 | 1,880 |
| EBITA | 29 | 45 | 61 | 86 | 162 | 187 |
| EBITA margin % | 6.9 | 9.2 | 7.3 | 8.7 | 9.4 | 10.0 |
Net sales per quarter SEK million EBITA per quarter SEK million
SEGMENT INFRASTRUCTURE
The Infrastructure segment offers specialised work within railway, water & sewage and other infrastructure.
Our market
The segment primarily consists of specialists performing railway services, courtyard renovations, foundation work, concrete renovations, as well as product sales of moisture protection and sewage treatment systems. The end customers are mainly public clients, but also private entities investing in and maintaining various parts of the infrastructure. The segment contributes to sustainable societal development through a wide range of services that for example enable transportation with reduced climate impact.
Development during the period
Net sales for the second quarter amounted to SEK 756 (829) million and net sales for the period January - June amounted to SEK 1,366 (1,425) million.
EBITA for the second quarter amounted to SEK 69 (98) million, corresponding to an EBITA margin of 9.1 % (11.8 %). EBITA for the period January - June amounted to SEK 105 (160) million, corresponding an EBITA margin of 7.7 % (11.2 %).
Sales and profitability in Infrastructure were weaker compared to the same quarter last year, driven by tough comparables, a shortterm challenging market environment, and to some extent, increased competition. Although the segment's weaker performance in the quarter is expected to carry over into the second half of the year, we remain confident that the significant need for infrastructure investments will lead to stable growth moving forward.
69
Q2 -24
Net sales Q2 SEK million
756
EBITA margin Q2 %
Earnings development
| SEK million | Apr-Jun 2024 |
Apr-Jun 2023 |
Jan-Jun 2024 |
Jan-Jun 2023 |
Rolling 12 months |
Jan-Dec 2023 |
|
|---|---|---|---|---|---|---|---|
| Net sales | 756 | 829 | 1,366 | 1,425 | 3,085 | 3,144 | |
| EBITA | 69 | 98 | 105 | 160 | 294 | 349 | |
| EBITA margin % | 9.1 | 11.8 | 7.7 | 11.2 | 9.5 | 11.1 | Q2 |
Net sales per quarter SEK million EBITA per quarter SEK million
Cash flow from operating activities during the second quarter amounted to SEK 27 (78) million, of which changes in working capital amounted to SEK -54 (-34) million. The operating cash flow amounted to SEK 118 (174) million, which corresponds to a cash conversion of 62 % (77 %). For the period January–June 2024, the cash flow from operating activities amounted to SEK 223 (210) million, changes in working capital amounted to SEK 24 (-33) million and the operating cash flow amounted to SEK 328 (339) million, which corresponds to a cash conversion of 100 % (83 %).
The Group´s working capital varies over the quarters, mainly due to fluctuations in the items ongoing projects, accounts receivable and accounts payable. The change in working capital in the second quarter was primarily driven by reduced accounts payable which were offset by reduced accounts receivable.
Investments
The Group´s investments during the second quarter excluding acquisitions amounted to SEK 18 (18) million and SEK 25 (34) million for the period January–June 2024. Paid and re valued contingent consideration for previous years acquisitions amounted to SEK 113 (99) million in the second quarter. Paid contingent consideration amounted to SEK 124 (132) million in January - June 2024.
Financial position and liquidity
Equity at the end of the period amounted to SEK 3,926 (4,057) million. Equity in the parent company amounted to SEK 4,102 (4,402) million.
The Group´s cash and cash equivalents at the end of the period amounted to SEK 252 (345) million.
The interest-bearing liabilities, inclusive leasing liabilities amounted to SEK 2,301 (2,450) million at the end of the period. By the end of the period, the Group had a financial net debt, defined as interest-bearing liabilities less cash and cash equivalents of SEK 2,049 (2,105) million. The financial net debt in relation to reported EBITDA was 2.7x.
Total contingent consideration liability amounted to SEK 80 (207) million at the end of the period. The current liability of the total contingent consideration liability amounted to SEK 65 million. For more information, see the section Acquisitions and divestments. Total liabilities amounted to SEK 3,926 (4,322) million as of June 30, 2024.
At the end of the quarter, Vestum had outstanding bonds of SEK 600 million due in April 2026 and with a variable interest rate of 3 months' STIBOR plus 637.5 basis points. The bonds are reported in the item Long-term and Short-term interest-bearing liabilities in the balance sheet.
During the quarter, Vestum has updated the existing credit facility by adding another lender, Svensk Exportkredit, and increased the credit facility framework from SEK 1,200 million to SEK 1,800 million.
Staff
The number of full-time employees for the remaining operations as of June 30, 2024 amounted to 1,675 (1,833) people.
Parent company
The Parent company´s net sales during the second quarter amounted to SEK 5 (5) million. Operating profit amounted to SEK -12 (-18) million. Net financial items amounted to SEK -214 (12) million and consisted of interest costs of SEK 53 million and a write-down of shares in subsidiaries of SEK 153 million. Profit for the period amounted to SEK -226 (-7) million and the decrease was mainly due to increased interest expense and write-down of shares in subsidiaries.
For January – June 2024, net sales amounted to SEK 9 (9) million, operating profit amounted to SEK-33 (-35) million and net financial items amounted to SEK -267 (-21) million. Profit for January – June amounted to SEK -300 (-57) million.
The balance sheet total as of June 30, 2024, amounted to SEK 6,723 (7,586) million, of which equity amounted to SEK 4,102 (4,402) million. Cash and cash equivalents in the Parent company amounted to SEK 88 (230) million.
Significant event after the end of the period
On August 9, Vestum, through its subsidiary Pump Supplies Ltd, acquired PDAS Holdings Ltd, including its subsidiaries.
Related party transactions
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 2023, note 28.
Incentive program
Vestum has three incentive programs corresponding to a total of 9,920,193 warrants. The warrant programs are aimed at senior executives and 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.
| Outstanding program |
Number of options |
Correspon ding 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 |
| 2023/2026 | 2,750,000 | 2,750,000 | 6.46 | 1 Dec 2026 31 Dec 2026 |
916,667 |
THE GROUP´S CONSOLIDATED INCOME STATEMENT IN SUMMARY
| SEK million | Apr-Jun 2024 |
Apr-Jun 2023 |
Jan-Jun 2024 |
Jan-Jun 2023 |
Rolling 12 months |
Jan-Dec 2023 |
|---|---|---|---|---|---|---|
| Remaining operations | ||||||
| Net sales | 1,373 | 1,534 | 2,613 | 2,811 | 5,563 | 5,762 |
| Total operating income | 1,373 | 1,534 | 2,613 | 2,811 | 5,563 | 5,762 |
| Materials and purchased services | −702 | −818 | −1,347 | −1,481 | −2,938 | −3,072 |
| Other external costs | −122 | −113 | −227 | −228 | −481 | −482 |
| Personnel costs | −366 | −373 | −713 | −709 | −1,408 | −1,403 |
| Other operating income | 9 | 4 | 19 | 23 | 43 | 47 |
| Other operating expenses | −1 | −7 | −16 | −11 | −19 | −14 |
| Total operating expenses and other operating income |
−1,182 | −1,307 | −2,284 | −2,404 | −4,803 | −4,924 |
| EBITDA | 190 | 227 | 329 | 407 | 760 | 838 |
| Depreciation excl. acquired surplus value. | −55 | −55 | −107 | −108 | −215 | −215 |
| EBITA | 136 | 172 | 222 | 299 | 545 | 623 |
| Amortisation attributable to acquired surplus value |
−76 | −76 | −152 | −151 | −305 | −304 |
| Operating profit (EBIT) | 60 | 96 | 70 | 148 | 240 | 318 |
| Financial items net | −51 | −2 | −99 | −10 | −268 | −179 |
| Earnings before tax | 8 | 94 | −29 | 138 | −27 | 140 |
| Income tax | −13 | −16 | −11 | −20 | −27 | −36 |
| Profit/loss for the period from continuing operations |
−5 | 79 | −39 | 118 | −53 | 104 |
| Profit/loss from operations held for sale and divested operations |
19 | −31 | −107 | −62 | −522 | −476 |
| Profit/loss for the period | 14 | 48 | −147 | 56 | −575 | −373 |
| SEK million | Apr-Jun 2024 |
Apr-Jun 2023 |
Jan-Jun 2024 |
Jan-Jun 2023 |
Rolling 12 months |
Jan-Dec 2023 |
|---|---|---|---|---|---|---|
| The profit/loss for the period attributable to: | ||||||
| Parent company shareholders | 14 | 47 | −148 | 55 | −577 | −374 |
| Non-controlling interest | 0 | 0 | 1 | 1 | 2 | 1 |
| Average number of shares during the period, before dilution |
375,809,468 375,809,468 375,809,468 374,134,702 375,809,468 374,978,968 | |||||
| Average number of shares during the period, after dilution |
378,559,468 375,809,468 378,559,468 374,134,702 377,369,057 375,174,858 | |||||
| The profit/loss per share for the period attributable to: |
||||||
| Remaining operations and the Parent company's shareholders, before dilution, SEK |
−0.01 | 0.21 | −0.10 | 0.31 | −0.14 | 0.28 |
| Remaining operations and the Parent company's shareholders, after dilution, SEK |
−0.01 | 0.21 | −0.10 | 0.31 | −0.14 | 0.28 |
| Parent company's shareholders, before dilution, SEK |
0.04 | 0.13 | −0.39 | 0.15 | −1.54 | −1.00 |
| Parent company's shareholders, after dilution, SEK |
0.04 | 0.13 | −0.39 | 0.15 | −1.53 | −1.00 |
The income statement has been recalculated for all periods based on current accounting principles for the operations held for sale and divested operations. See page 18 for accounting principles and page 19 for the income statement in summary for the operations held for sale and divested operations.
Consolidated statement of comprehensive income in summary
| SEK million | Apr-Jun 2024 |
Apr-Jun 2023 |
Jan-Jun 2024 |
Jan-Jun 2023 |
Rolling 12 months |
Jan-Dec 2023 |
|---|---|---|---|---|---|---|
| Profit/loss for the period | 14 | 48 | −147 | 56 | −575 | −373 |
| Other comprehensive income | ||||||
| Exchange differences on translation of foreign operations |
−11 | 67 | 17 | 50 | −108 | −76 |
| Profit/loss on derivatives held for cash flow hedging |
0 | - | 0 | - | 0 | - |
| Total other comprehensive income | −11 | 67 | 17 | 50 | −108 | −76 |
| Total comprehensive income for the period | 3 | 115 | −130 | 106 | −683 | −448 |
| Total comprehensive income for the period attributable to: |
||||||
| Parent company's shareholders | 2 | 115 | −131 | 105 | −685 | −449 |
| Non-controlling interests | 1 | 0 | 1 | 1 | 2 | 1 |
| Total comprehensive income attributable to Parent company's shareholders, originated from: |
||||||
| Remaining operations | 2 | 119 | −131 | 121 | −672 | −421 |
| Operations held for sale and divested operations |
1 | −5 | 1 | −15 | −11 | −27 |
THE GROUP´S CONSOLIDATED BALANCE SHEET IN SUMMARY
| SEK million | 30 Jun 2024 | 30 Jun 2023 | 31 Dec 2023 |
|---|---|---|---|
| Assets | |||
| Intangible assets | 5,350 | 6,317 | 5,522 |
| Property, plant and equipment | 227 | 277 | 236 |
| Right of use assets | 525 | 662 | 520 |
| Financial assets | 3 | 8 | 3 |
| Deferred tax assets | 6 | 20 | 6 |
| Other non-current assets | 2 | 2 | 2 |
| Total non-current assets | 6,113 | 7,285 | 6,289 |
| Inventories | 316 | 351 | 318 |
| Accounts receivable | 808 | 1,019 | 867 |
| Contract assets | 149 | 265 | 134 |
| Other current assets | 62 | 64 | 59 |
| Prepaid expenses and accrued income | 151 | 188 | 118 |
| Cash and cash equivalents | 252 | 607 | 345 |
| Assets held for sale | 0 | 639 | 249 |
| Total current assets | 1,739 | 3,133 | 2,090 |
| Total assets | 7,852 | 10,418 | 8,379 |
| SEK million | 30 Jun 2024 | 30 Jun 2023 | 31 Dec 2023 |
|---|---|---|---|
| Equity and liabilities | |||
| Equity attributable to owners of the company | 3,923 | 4,606 | 4,053 |
| Non-controlling interests | 4 | 3 | 3 |
| Total equity | 3,926 | 4,609 | 4,057 |
| Non-current provisions | 16 | 19 | 21 |
| Non-current interest-bearing liabilities | 1,767 | 2,848 | 590 |
| Non-current lease liabilities | 387 | 488 | 392 |
| Deferred tax liabilities | 477 | 561 | 512 |
| Other non-current liabilities | 15 | 64 | 61 |
| Total non-current liabilities | 2,662 | 3,980 | 1,575 |
| Current provisions | 2 | 1 | 2 |
| Current interest-bearing liabilities | 0 | 3 | 1,334 |
| Current lease liabilities | 146 | 174 | 135 |
| Accounts payable | 414 | 559 | 430 |
| Contract liabilities | 59 | 91 | 81 |
| Other current liabilities | 306 | 372 | 358 |
| Accrued expenses and deferred income | 337 | 339 | 293 |
| Liabilities that are directly related to assets held for sale |
0 | 290 | 114 |
| Total current liabilities | 1,264 | 1,830 | 2,747 |
| Total liabilities | 3,926 | 5,809 | 4,322 |
| Total equity and liabilities | 7,852 | 10,418 | 8,379 |
2024 THE GROUP´S CHANGES IN EQUITY IN SUMMARY
| SEK million | Equity attributable to the Parent company´s shareholders | |||||
|---|---|---|---|---|---|---|
| Share capital | Share premium reserve |
Reserves | Retained earnings incl. profit/loss for the period |
Non-controlling interests |
Total equity | |
| Opening balance as of 1 January 2023 | 123 | 4,335 | 53 | -136 | 3 | 4,377 |
| Profit/loss for the period | - | - | - | 56 | 1 | 56 |
| Other comprehensive income for the period |
- | - | 50 | - | - | 50 |
| Transfer to other reserves | - | - | - | - | - | 0 |
| Total comprehensive income | - | - | 50 | 56 | 1 | 106 |
| Total transactions with owners | 3 | 122 | - | - | - | 125 |
| Closing balance as of December 2023 | 125 | 4,458 | 103 | -80 | 3 | 4,609 |
| Opening balance as of 1 January 2024 | 125 | 4,460 | -23 | -509 | 3 | 4,057 |
| Profit/loss for the period | - | - | - | -148 | 1 | -147 |
| Other comprehensive income for the period |
- | - | 17 | - | - | 17 |
| Transfer to other reserves | - | - | 0 | 0 | - | - |
| Cash flow hedges net of tax | - | - | 0 | - | - | 0 |
| Total comprehensive income | - | - | 17 | -148 | 1 | -130 |
| Total transactions with owners | - | - | - | - | -1 | -1 |
| Closing balance as of June 30, 2024 | 125 | 4,460 | -6 | -657 | 4 | 3,926 |
THE GROUP´S CASH FLOW STATEMENT IN SUMMARY
| SEK million | Apr-Jun 2024 |
Apr-Jun 2023 |
Jan-Jun 2024 |
Jan-Jun 2023 |
Rolling 12 months |
Jan-Dec 2023 |
|---|---|---|---|---|---|---|
| Earnings before tax | 8 | 94 | −29 | 138 | −27 | 140 |
| Adjustment for non-cash items | 116 | 94 | 246 | 174 | 603 | 531 |
| Income tax paid | −43 | −76 | −18 | −68 | −41 | −90 |
| Cash flow from operating activities before changes in working capital |
81 | 113 | 199 | 244 | 536 | 581 |
| Changes in working capital | ||||||
| Change in inventories | 17 | 30 | 5 | 1 | 28 | 25 |
| Change in operating receivables | −144 | −192 | −1 | −145 | 99 | −46 |
| Change in operating liabilities | 72 | 128 | 20 | 111 | −17 | 74 |
| Cash flow from changes in working capital | −54 | −34 | 24 | −33 | 111 | 54 |
| Cash flow from operating activities | 27 | 78 | 223 | 210 | 646 | 634 |
| Purchase and sale of intangible assets | 0 | −3 | 0 | −3 | −3 | −6 |
| Purchase of a property, plant and equipment |
−18 | −15 | −24 | −32 | −55 | −62 |
| Purchase of subsidiaries and activities | −113 | −99 | −124 | −256 | −216 | −348 |
| Divestment of subsidiaries and activities | 70 | - | 69 | −1 | 441 | 371 |
| Proceeds from other financial assets net | 0 | −1 | 0 | 0 | 0 | −1 |
| Cash flow from investing activities | −61 | −117 | −81 | −292 | 166 | −45 |
| Net change in borrowings | −137 | 247 | −167 | 247 | −1,130 | −716 |
| Repayments of lease liabilities | −38 | −34 | −75 | −73 | −147 | −146 |
| Proceeds from capital increase | −1 | 1 | −1 | 1 | 1 | 2 |
| Changes in other non-current liabilities | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash flow from financing activities | −175 | 213 | −242 | 174 | −1,276 | −860 |
| Net cash flow from continuing operations | −210 | 174 | −100 | 92 | −463 | −271 |
| Cash flow from operations held for sale and divested operations |
- | −11 | 2 | −34 | 49 | 13 |
| Net cash flow for the period | −210 | 163 | −98 | 58 | −414 | −258 |
| SEK million | Apr-Jun 2024 |
Apr-Jun 2023 |
Jan-Jun 2024 |
Jan-Jun 2023 |
Rolling 12 months |
Jan-Dec 2023 |
|---|---|---|---|---|---|---|
| Cash and cash equivalents at the beginning of the period |
457 | 502 | 345 | 608 | 607 | 608 |
| Cash flow from the period | −210 | 163 | −98 | 58 | −414 | −258 |
| Exchange rate difference in cash and cash equivalents |
5 | 6 | 5 | 3 | 2 | - |
| Cash and cash equivalents from operations held for sale |
- | −63 | - | −63 | 57 | −6 |
| Cash and cash equivalents at the period end |
252 | 607 | 252 | 607 | 252 | 345 |
Cash flow regarding interest
| Interest paid | −51 | −51 | −94 | −98 | −188 | −193 |
|---|---|---|---|---|---|---|
| Interest received | 2 | 3 | 6 | 5 | 14 | 14 |
The cash flow statement has been recalculated for all periods based on current accounting principle for operations held for sale. See page 18 for accounting principles and page 20 for a summarized cash flow statement for the operations held for sale and divested operations.
SEGMENT REPORTING
Vestum divides its operations into three segments: Water, Services and Infrastructure. These three segments complement each other, both over a business cycle and seasonally.
folio company was part of the Vestum Group. The segments have been recalculated in accordance to IFRS 5, to describe the continuing operations.
The tables below only include the financial outcome for the periods in which each portCost for Group functions refers to group management, IT, legal, M&A and group finance functions. Costs related to operating group
functions, such as division managers and business control, have been distributed to each segment.
All segment´s have revenue recognition at a point in time, and over time.
| SEK million | Apr-Jun 2024 |
Apr-Jun 2023 |
Jan-Jun 2024 |
Jan-Jun 2023 |
Rolling 12 months |
Jan-Dec 2023 |
|---|---|---|---|---|---|---|
| Net sales per geographic market | ||||||
| Sweden | 1,143 | 1,284 | 2,150 | 2,364 | 4,693 | 4,907 |
| Other countries | 230 | 250 | 462 | 447 | 870 | 855 |
| Total net sales | 1,373 | 1,534 | 2,613 | 2,811 | 5,564 | 5,762 |
| SEK million | Apr-Jun 2024 |
Apr-Jun 2023 |
Jan-Jun 2024 |
Jan-Jun 2023 |
Rolling 12 months |
Jan-Dec 2023 |
|---|---|---|---|---|---|---|
| Net sales per segment | ||||||
| Water | 203 | 217 | 418 | 393 | 763 | 737 |
| Services | 414 | 488 | 829 | 993 | 1,715 | 1,880 |
| Infrastructure | 756 | 829 | 1,366 | 1,425 | 3,085 | 3,144 |
| Total net sales | 1,373 | 1,534 | 2,613 | 2,811 | 5,563 | 5,762 |
| SEK million | Apr-Jun 2024 |
Apr-Jun 2023 |
Jan-Jun 2024 |
Jan-Jun 2023 |
Rolling 12 months |
Jan-Dec 2023 |
|---|---|---|---|---|---|---|
| EBITA per segment | ||||||
| Water | 48 | 48 | 91 | 79 | 155 | 142 |
| Services | 29 | 45 | 61 | 86 | 162 | 187 |
| Infrastructure | 69 | 98 | 105 | 160 | 294 | 349 |
| Group functions | −13 | −14 | −24 | −29 | −52 | −56 |
| Adjusted EBITA | 133 | 178 | 233 | 297 | 558 | 622 |
| Adjustments | 3 | −6 | −11 | 3 | −13 | 1 |
| EBITA | 136 | 172 | 222 | 299 | 545 | 623 |
| Amortisation attributable to acquired surplus value | −76 | −76 | −152 | −151 | −305 | −304 |
| Operating profit (EBIT) | 60 | 96 | 70 | 148 | 240 | 318 |
| Financial items net | −51 | −2 | −99 | −10 | −268 | −179 |
| Earnings before tax | 8 | 94 | −28 | 138 | −27 | 140 |
THE PARENT COMPANY´S INCOME STATEMENT
| SEK million | Apr-Jun 2024 |
Apr-Jun 2023 |
Jan-Jun 2024 |
Jan-Jun 2023 |
Rolling 12 months |
Jan-Dec 2023 |
|---|---|---|---|---|---|---|
| Net sales | 5 | 5 | 9 | 9 | 17 | 17 |
| Total operating income | 5 | 5 | 9 | 9 | 17 | 17 |
| Other external expenses | −7 | −7 | −12 | −16 | −29 | −33 |
| Personnel costs | −9 | −13 | −18 | −25 | −38 | −45 |
| Other operating income | 0 | 0 | 0 | 0 | 0 | 0 |
| Other operating expenses | 0 | −3 | −12 | −3 | −12 | −3 |
| Depreciation | 0 | −1 | −1 | −1 | −2 | −2 |
| Total operating expenses and other operating income |
−17 | −23 | −42 | −44 | −81 | −83 |
| Operating profit/loss | −12 | −18 | −33 | −35 | −64 | −66 |
| Financial items net | −214 | 12 | −267 | −21 | −415 | −170 |
| Appropriations | 0 | 0 | 0 | 0 | 278 | 278 |
| Earnings before tax | −226 | −7 | −300 | −57 | −201 | 42 |
| Income tax | 0 | 0 | 0 | 0 | −33 | −33 |
| Profit/loss for the period | −226 | −7 | −300 | −57 | −235 | 9 |
The Parent company report on comprehensive income in summary
| SEK million | Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Rolling 12 | Jan-Dec |
|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | months | 2023 | |
| Profit/loss for the period and total comprehensive income for the period |
-226 | -7 | -300 | -57 | -235 | 9 |
THE PARENT COMPANY´S BALANCE SHEET
| SEK million | 30 Jun 2024 | 30 Jun 2023 | 31 Dec 2023 |
|---|---|---|---|
| Assets | |||
| Intangible assets | 4 | 2 | 2 |
| Tangible assets | 2 | 7 | 6 |
| Financial assets | 5,931 | 5,961 | 6,043 |
| Non-current intercompany liabilities | 693 | 180 | 734 |
| Total non-current assets | 6,630 | 6,150 | 6,785 |
| Current intercompany receivables | 558 | 55 | 565 |
| Other current receivables | −557 | 4 | 1 |
| Prepaid expenses and accrued income | 5 | 5 | 5 |
| Cash and cash equivalents | 88 | 490 | 230 |
| Total current assets | 93 | 554 | 801 |
| Total assets | 6,723 | 6,704 | 7,586 |
| Equity and liabilities | |||
| Equity attributable to owners of the company | 4,102 | 4,334 | 4,402 |
| Total equity | 4,102 | 4,334 | 4,402 |
| Untaxed reserves | 99 | 46 | 99 |
| Non-current interest-bearing liabilities | 1,767 | 1,737 | 590 |
| Other non-current liabilities | 4 | 25 | 20 |
| Total non-current liabilities | 1,772 | 1,762 | 610 |
| Current intercompany liabilities | 709 | 379 | 978 |
| Current interest-bearing liabilities | 0 | 0 | 1,334 |
| Accounts payable | 2 | 5 | 4 |
| Other current liabilities | 22 | 151 | 126 |
| Accrued expenses and deferred income | 18 | 27 | 33 |
| Total current liabilities | 751 | 562 | 2,475 |
| Total liabilities | 2,523 | 2,324 | 3,085 |
| Total equity and liabilities | 6,723 | 6,704 | 7,586 |
ADDITIONAL INFORMATION
ACCOUNTING PRINCIPLES
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 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 2023.
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, 2024, 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.
IFRS 5 - Divested operations and operations under divestment
During the first quarter 2024, the divestment of Arctic Infra AB, including subsidiaries (Infrastructure) were completed. In 2023, two strategic divestments were executed and an agreement was made regarding the sale of the WeSC-brand which was divested and completed in April, 2024. The income statement and cash flow statement for the companies are reported as operations held for sale and divested operations in accordance with IFRS 5. The balance sheet for these companies is reported as Assets held for sale and Liabilities that are directly related to assets held for sale, in accordance with IFRS 5.
Due to the above, Vestum has recalculated the comparative figures for 2023 regarding the income statement and cash flow statement. The balance sheet is not recalculated but reflects the businesses that were held for sale at respective balance sheet date.
RISKS AND UNCERTAINTIES
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, counter-party and credit risks.
The Group´s interest-bearing liabilities are to some extent exposed to floating interest rates. Increased policy interest rates affect 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.
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 2023.
FINANCIAL ASSETS AND LIABILITIES
Contingent consideration that is valued at fair value in the balance sheet amounts to SEK 80 (207) million and is classified in level 3 according to the fair value hierarchy. The section Acquisitions and divestments presents how fair value is determined. Revaluation of the contingent consideration recorded in operating profit had an effect on the quarter result of SEK 3 (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 3 (3) million. Financial assets/liabilities related to derivatives that
are measured at fair value in the balance sheet are classified as Level 2 in the fair value hierarchy. The derivative instruments amount to SEK 0 (-) 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 shortterm.
ACQUISITIONS AND DIVESTMENTS
Acquisitions completed during the period
On August 9, Vestum, through its subsidiary Pump Supplies Ltd, acquired 100 percent of the shares in PDAS Holdings Ltd, including its subsidiaries.
| Closed by the end of period | Segment | Completed | Annual net sales (SEKm) |
Number of employees |
|---|---|---|---|---|
| PDAS Holdings Ltd | Water | August | 210 | 63 |
| Total | 210 | 63 |
Contingent considerations
In accordance with agreements on contingent considerations, the Group must pay cash compensation linked to future earnings. The maximum non-discounted amount that may be paid to the previous owners amounts to SEK 118 million. 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 80 million. During 2024, contingent consideration of SEK 124 million was paid. Paid and revalued contingent
consideration had an impact of SEK 3 (11) 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 65 million and the likely timing for settlement is the third quarter of 2024 and the second quarter of 2025. The fair value of the contingent consideration is at level 3 in the fair value hierarchy. Contingent consideration liability are reported as Other current liabilities and Other non-current liabilities in the balance sheet.
Change in contingent consideration liability
| SEK million | 30 Jun 2024 30 Jun 2023 31 Dec 2023 |
|||
|---|---|---|---|---|
| Opening balance | 207 | 399 | 399 | |
| Acquisitions during period | - | 75 | 75 | |
| Paid contingent consideration | -124 | -132 | -223 | |
| Revaluation via operating profit | -3 | -11 | -11 | |
| Exchange rate difference | 0 | 0 | 0 | |
| Departs: Operations held for sale | - | -33 | -33 | |
| Closing balance at period end | 80 | 298 | 207 |
Divested operations and operations under divestment
During the first quarter of 2024 the divestment of Arctic Infra AB, including subsidiaries (Infrastructure), was completed which was announced during the fourth quarter of 2023. Received cash payment for Arctic Infra AB amounted to SEK 20 million. The sale resulted in a loss of SEK 131 million.
During the quarter, divestment of the WeSCbrand has also been completed. Received cash payment amounted to SEK 3 million. The sale resulted in a profit of SEK 4 million.
The income statement and cash flow state-
ment for Arctic Infra AB and WeSC-brand, are reported as divested operations in accordance with IFRS 5.
During the quarter, Plåtslagaren G.H. Johansson AB was divested. The divestment has not led to any restatement of historical figures according to IFRS 5 and is therefore not reported in the income statement and cash flow table below. Plåtslagaren had an annual net sales of SEK 103 million and 37 employees. The selling price amounted to SEK 85 million, and the profit amounted to SEK 15 million.
| Apr-Jun 2024 |
Apr-Jun 2023 |
Jan-Jun 2024 |
Jan-Jun 2023 |
Rolling 12 months |
Jan-Dec 2023 |
|---|---|---|---|---|---|
| 0 | 421 | 2 | 777 | 525 | 1,300 |
| 0 | -451 | 0 | -838 | -569 | -1,406 |
| 0 | -30 | 2 | -61 | -44 | -106 |
| 0 | -1 | 0 | -1 | -4 | -5 |
| 0 | -31 | 2 | -62 | -48 | -111 |
| 19 | 0 | -109 | 0 | -474 | -365 |
| 19 | -31 | -107 | -62 | -522 | -476 |
| 19 | -31 | -107 | -62 | -522 | -476 |
| 0.05 | -0.08 | -0.28 | -0.17 | -1.39 | -1.27 |
| Cash flow from divested operations SEK million |
Apr-Jun 2024 |
Apr-Jun 2023 |
Jan-Jun 2024 |
Jan-Jun 2023 |
Rolling 12 months |
Jan-Dec 2023 |
|---|---|---|---|---|---|---|
| Cash flow from operating activities | 0 | -9 | 2 | -16 | 88 | 70 |
| Cash flow from investing activities | 0 | 2 | 0 | -2 | -13 | -15 |
| Cash flow from financing activities | 0 | -5 | 0 | -16 | -26 | -42 |
| Total cash flow from divested operations | 0 | -11 | 2 | -34 | 49 | 13 |
Impact of the company portfolio on the balance sheet at the point of divestment SEK million
| Net assets | 226 |
|---|---|
| Total liabilities | -159 |
| Current operating liabilities | -126 |
| Current lease liabilities | -9 |
| Other non-current liabilities | 2 |
| Non-current lease liabilities | -15 |
| Deferred tax liabilities | -11 |
| Non-current interest bearing liabilities | 0 |
| Total assets | 390 |
| Cash and cash equivalents | 63 |
| Current operating assets | 126 |
| Other non-current assets | 0 |
| Right of use assets | 22 |
| Property, plant and equipment | 7 |
| Intangible assets | 171 |
| Balance sheet attributable to operations held for sale SEK million |
30 Jun 2024 |
30 Jun 2023 |
31 Dec 2023 |
|---|---|---|---|
| Non-current assets | - | 247 | 137 |
| Current assets | - | 392 | 111 |
| Non-current liabilities | - | -69 | -17 |
| Current liabilities | - | -222 | -96 |
| Net assets | - | 349 | 135 |
OWNERS
The ten largest shareholders as of 30 June 2024, according to Monitor.
| Name | Number of shares | Share of total |
|---|---|---|
| Conny Ryk | 65,000,000 | 17% |
| Anders Rosenqvist | 30,000,000 | 8% |
| Per-Arne Åhlgren | 24,199,390 | 6% |
| Nordea Fonder | 23,252,081 | 6% |
| Handelsbanken Fonder | 22,583,959 | 6% |
| Swedbank Försäkring | 14,942,862 | 4% |
| Avanza Pension | 13,814,513 | 4% |
| Simon Göthberg | 13,741,416 | 4% |
| Olle Nykvist | 13,600,000 | 4% |
| Olof Andersson | 13,530,000 | 4% |
| Total for the 10 largest shareholders based on no. of shares | 234,664,221 | 62% |
| Total number of shares, other shareholders | 141,145,247 | 38% |
| Total number of outstanding shares at the end of the period | 375,809,468 | 100% |
2024 PERFORMANCE MEASURES
| SEK million (unless otherwise stated) | Apr-Jun 2024 | Apr-Jun 2023 | Jan-Jun 2024 | Jan-Jun 2023 | Rolling 12 months | Jan-Dec 2023 |
|---|---|---|---|---|---|---|
| Net sales | 1,373 | 1,534 | 2,613 | 2,811 | 5,563 | 5,762 |
| EBITDA 1) | 190 | 227 | 329 | 407 | 760 | 838 |
| EBITA 1) | 136 | 172 | 222 | 299 | 545 | 623 |
| Operating profit/loss (EBIT) | 60 | 96 | 70 | 148 | 240 | 318 |
| EBITA margin % 1) | 9.9 | 11.2 | 8.5 | 10.6 | 9.8 | 10.8 |
| EBIT margin % | 4.4 | 6.3 | 2.7 | 5.3 | 4.3 | 5.5 |
| Adjusted EBITDA 1) | 187 | 233 | 340 | 404 | 773 | 837 |
| Adjusted EBITA 1) | 133 | 178 | 233 | 297 | 558 | 622 |
| Adjusted EBITA margin % 1) | 9.7 | 11.6 | 8.9 | 10.5 | 10.0 | 10.8 |
| Financial net debt 1) | 2,049 | 2,906 | 2,049 | 2,906 | 2,049 | 2,105 |
| Financial net debt in relation to EBITDA 1) | N/A | N/A | N/A | N/A | 2.7x | 2.5x |
| Financial net debt in relation to adjusted EBITDA 1) | N/A | N/A | N/A | N/A | 2.6x | 2.5x |
| Number of employees at end of period 1) | 1,675 | 1,833 | 1,675 | 1,833 | 1,675 | 1,787 |
| Number of shares issued at the end of the period | 375,809,468 | 375,809,468 | 375,809,468 | 375,809,468 | 375,809,468 | 375,809,468 |
| Average number of shares during the period, before dilution | 375,809,468 | 375,809,468 | 375,809,468 | 374,134,702 | 375,809,468 | 374,978,968 |
| Average number of shares during the period, after dilution | 378,559,468 | 375,809,468 | 378,559,468 | 374,134,702 | 377,369,057 | 375,174,858 |
| EBITA per share, before dilution, SEK 1) | 0.36 | 0.46 | 0.59 | 0.80 | 1.45 | 1.66 |
| EBITA per share, after dilution, SEK 1) | 0.36 | 0.46 | 0.59 | 0.80 | 1.44 | 1.66 |
| Adjusted EBITA per share, before dilution, SEK 1) | 0.35 | 0.47 | 0.62 | 0.79 | 1.49 | 1.66 |
| Adjusted EBITA per share, after dilution, SEK 1) | 0.35 | 0.47 | 0.62 | 0.79 | 1.48 | 1.66 |
| Earnings per share attributable to remaining operations and Parent company´s shareholders, before dilution, SEK |
−0.01 | 0.21 | −0.10 | 0.31 | −0.14 | 0.28 |
| Earnings per share attributable to remaining operations and Parent company´s shareholders, after dilution, SEK |
−0.01 | 0.21 | −0.10 | 0.31 | −0.14 | 0.28 |
| Earnings per share attributable to Parent company´s shareholders, before dilution, SEK | 0.04 | 0.13 | −0.39 | 0.15 | −1.54 | −1.00 |
| Earnings per share attributable to Parent company´s shareholders, after dilution, SEK | 0.04 | 0.13 | −0.39 | 0.15 | −1.53 | −1.00 |
| Operating cash flow 1) | 118 | 174 | 328 | 339 | 813 | 824 |
| Cash conversion % 1) | 62 | 77 | 100 | 83 | 107 | 98 |
| Free cash flow 1) | −29 | 26 | 123 | 103 | 441 | 421 |
| Free cash flow per share, before dilution, SEK 1) | −0.08 | 0.07 | 0.33 | 0.27 | 1.17 | 1.12 |
1) The alternative performance measure (APM) is an alternative performance measure according to ESMA´s guidelines. For reconciliation of APM´s, see page 23
N/A: The performance measure cannot be calculated fairly
DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
| Performance measure | Definition | Purpose |
|---|---|---|
| EBITDA | Earnings before taxes, financial items and depreciation of tangible and intangible fixed assets and consolidated surplus value. |
EBITDA is used to measure profit/loss from operating activities, independent of depreciation. |
| EBITA | Operating profit before amortisation of consolidated surplus values. |
EBITA is used to measure the underlying operating profit/loss before amortisation of consolidated surplus value from operating activities. |
| EBITA margin | EBITA as a percentage of net sales. | EBITA margin is used to put the underlying operating profit/loss before amortisation on consolidated surplus value in relation to net sales. |
| Rolling 12 months (R12) | Refers to the last twelve months from period end. |
Rolling 12 months is used to evaluate the latest twelve-month period. |
| Adjustment items | Adjustment items refers to acquisition related transaction costs, revaluation of contingent consideration, restructuring costs and one-time costs. |
The performance measure is used when calculating adjusted EBITDA, adjusted EBITA and adjusted EBITA margin. |
| Adjusted EBITDA | Refers to EBITDA adjusted with adjustment items. |
Adjusted EBITDA is used by management to measure the underlying earnings development. |
| Adjusted EBITA | Refers to EBITA adjusted with adjustment items. |
Adjusted EBITA is used by management to measure the underlying earnings development. |
| 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. |
| 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). |
| Performance measure | Definition | Purpose |
|---|---|---|
| Financial net debt in relation to EBITDA |
Refers to financial net debt divided by EBITDA. |
The performance measure can be used to assess the Group´s financial leverage. |
| Financial net debt in relation to adjusted EBITDA |
Refers to financial net debt divided by adjusted EBITDA. |
The performance measure can be used to assess the Group´s financial leverage. |
| 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. |
| Organic net sales growth |
Refers to net sales growth, excluding exchange rate and acquisition effects, compared to same period prior year. Acquired companies are included in organic growth from the point they have comparison figures for the actual period. |
The performance measure illustrates the underlying net sales development. |
| Operating cash flow | EBITDA reduced by net investment in intangible and tangible fixed assets and change in working capital. |
The performance measure shows the cash flow from operations and is used when calculating cash conversion. |
| Cash conversion | Operating cash flow as a percentage of EBITDA. |
Cash conversion is used to monitor cash generation from operations. |
| Free cash flow | Cash flow from operating activities (including taxes and capital costs), reduced by investments in intangible and tangible fixed assets as well as amortization of lease liabilities. |
The key figure shows the cash flow that the group can use for dividends, acquisitions, and/or debt repayment. |
| Per share | Selected performance measures divided by a weighted average of outstanding shares during the period. |
Used to display the earnings measures EBITA and Adjusted EBITA per share as well the cash flow measure Free cash flow per share. |
RECONCILIATION OF ALTERNATIVE PERFORMANCE MEASURES
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, see previous page.
| SEK million | Apr-Jun 2024 |
Apr-Jun 2023 |
Jan-Jun 2024 |
Jan-Jun 2023 |
Rolling 12 months |
Jan-Dec 2023 |
|---|---|---|---|---|---|---|
| Earnings measures | ||||||
| (A) Net sales | 1,373 | 1,534 | 2,613 | 2,811 | 5,563 | 5,762 |
| Operating expenses and other income | −1,182 | −1,307 | −2,284 | −2,404 | −4,803 | −4,924 |
| (B) EBITDA | 190 | 227 | 329 | 407 | 760 | 838 |
| Depreciation excl. acquired surplus values | −55 | −55 | −107 | −108 | −215 | −215 |
| (C) EBITA | 136 | 172 | 222 | 299 | 545 | 623 |
| (C/A) EBITA margin | 9.9% | 11.2% | 8.5% | 10.6% | 9.8% | 10.8% |
| Adjustments items: | ||||||
| Acquisition-related transaction costs | 0 | 0 | 0 | 2 | 0 | 2 |
| Impact on profit/loss from contingent consideration |
−3 | 0 | −3 | −11 | −3 | −11 |
| One-time costs | 0 | 6 | 15 | 6 | 17 | 8 |
| Total adjustments | −3 | 6 | 11 | −3 | 13 | −1 |
| (D) Adjusted EBITDA | 187 | 233 | 340 | 404 | 773 | 837 |
| (E) Adjusted EBITA | 133 | 178 | 233 | 297 | 558 | 622 |
| (E/A) Adjusted EBITA margin | 9.7% | 11.6% | 8.9% | 10.5% | 10.0% | 10.8% |
| (F) Average number of shares during the period, before dilution |
375,809,468 375,809,468 375,809,468 374,134,702 375,809,468 374,978,968 | |||||
| (C/F) EBITA per share, SEK | 0.36 | 0.46 | 0.59 | 0.80 | 1.45 | 1.66 |
| Net sales growth | ||||||
| Organic net sales growth | −140 | N/A | −185 | N/A | N/A | 183 |
| Exchange rate effect | 2 | N/A | 3 | N/A | N/A | 7 |
| Nets sales from acquired companies | −23 | N/A | −16 | N/A | N/A | 409 |
| Net sales growth | −161 | N/A | −199 | N/A | N/A | 600 |
| SEK million | Apr-Jun 2024 |
Apr-Jun 2023 |
Jan-Jun 2024 |
Jan-Jun 2023 |
Rolling 12 months |
Jan-Dec 2023 |
|---|---|---|---|---|---|---|
| Balance measures | ||||||
| Non-current interest-bearing liabilities | 1,767 | 2,848 | 1,767 | 2,848 | 1,767 | 590 |
| Current interest-bearing liabilities | - | 3 | - | 3 | - | 1,334 |
| Lease liabilities | 533 | 662 | 533 | 662 | 533 | 526 |
| Cash and cash equivalents | −252 | −607 | −252 | −607 | −252 | −345 |
| (G) Financial net debt | 2,049 | 2,906 | 2,049 | 2,906 | 2,049 | 2,105 |
| (G/B) Financial net debt in relation to EBITDA, times |
N/A | N/A | N/A | N/A | 2.7 | 2.5 |
| (G/D) Financial net debt in relation to adjusted EBITDA, times |
N/A | N/A | N/A | N/A | 2.6 | 2.5 |
| Cash flow measures | ||||||
| Operating cash flow | ||||||
| (B) EBITDA | 190 | 227 | 329 | 407 | 760 | 838 |
| Change in working capital | −54 | −34 | 24 | −33 | 111 | 54 |
| Net investment in intangible assets and property, plant and equipment |
−18 | −18 | −25 | −34 | −58 | −68 |
| (H) Operating cash flow | 118 | 174 | 328 | 339 | 813 | 824 |
| (H/B) Cash conversion | 62% | 77% | 100% | 83% | 107% | 98% |
| Free cash flow | ||||||
| Cash flow from operating activities | 27 | 78 | 223 | 210 | 646 | 634 |
| Net investment in intangible assets and property, plant and equipment |
−18 | −18 | −25 | −34 | −58 | −68 |
| Repayments of lease liabilities | −38 | −34 | −75 | −73 | −147 | −146 |
| (I) Free cash flow | −29 | 26 | 123 | 103 | 441 | 421 |
| (I/F) Free cash flow per share, SEK | −0.08 | 0.07 | 0.33 | 0.27 | 1.17 | 1.12 |
N/A: The performance measure cannot be calculated fairly
2024 BOARD OF DIRECTORS AND CEO APPROVAL
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.
2024-08-15
Conny Ryk Board chairman
Johan Heijbel Board member
Per Åhlgren Board member
Helena Fagraeus Lundström Board member
Siri Hane Board member Anders Rosenqvist Board member
Simon Göthberg 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 August 15, 2024 at 07:00 CET
UPCOMING REPORTS
Interim report for the third quarter 2024 will be published on October 25, 2024 Interim report for the fourth quarter 2024 will be published on February 13, 2025
TELECONFERENCE
On August 15, 2024 at 11:00 AM CET Simon Göthberg, CEO and Olof Andersson, CFO will present the report and answer questions via a webcasted conference call. The presentation is held in English.
Webcasting of the presentation (opportunity for written questions): https://ir.financialhearings.com/vestum-q2-report-2024/register
Teleconference (opportunity for oral questions): https://conference.financialhearings.com/teleconference/?id=50048447
The presentation slides used will be available during the webcast and will be published on Vestum´s website, https://www.vestum.se/en/ir/financial-reports/, before the start of the presentation.
FOR MORE INFORMATION, CONTACT:
Simon Göthberg, CEO: [email protected] Olof Andersson, CFO: [email protected]
COMPANY ADDRESS
Vestum AB (publ) Kungsgatan 26 111 35 Stockholm 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