Vestum Ab · OMXSTO:VESTUM
Vestum Ab — Q2 2024 Earnings Presentation
13 slides from Vestum Ab's earnings presentation, Aug 15, 2024
Slide 1: Interim report Q2 2024 presentation
Slide 2: Highlights Q2 2024
Highlights Q2 2024 Continued to reduce financial net debt including earn-outs Overall, more positive outlook but slower activity in the quarter with organic growth of -9% Continued strong development in the Water segment First acquisition in two years after end of quarter — further strengthens the W
Slide 3: Water segment
Water segment AY Market leading product technology specialists in improving water infrastructure Continued stable demand and improved profitability 2307 215 203 176 180 Geographically 157 163 strongest performance | a in the UK Expecting solid demand 31 31 48 31 32 43 as going forward Add-on acquisi
Slide 4: Services segment
Services segment aS Energy efficiency service and maintenance offering to property owners 546 505 488 493 304 i 414 oe 4 45 44 57 32 UJ 29 Q4 2022 Q12023 | Q22023} Q32023 Q42023 Q12024 | Q2 2024 SEK 1,715m SEK 162m 9.4% LTM net sales LTM EBITA LTM EBITA margin * Demand continued to be lower than pre
Slide 5: Infrastructure segment
Infrastructure segment Experts in improving civic infrastructure 886 829 834 806 756 | 596 610 [: if 98 |. i: i i: Q4 2022 Q12023 | Q22023} Q32023 Q42023 Q12024 |Q2 2024 9.5% SEK 3,085m LTM net sales JI SEK 294m LTM EBITA LTM EBITA margin * Lower volumes and profitability compared to last year drive
Slide 6: Acquisitions
Acquisitions * Completed first acquisition in two years after end of quarter - to be part of the Water segment * Acquisition is an add-on to Vestum’s largest company Pump Supplies Ltd - Acquired company is PDAS - a UK market leader in wastewater pumping stations - Majority of profits from intelligen
Slide 7: Net sales and adjusted EBITA per quarter
Net sales and adjusted EBITA per quarter Lower net sales and weaker adjusted EBITA development = Q, 5 SeEKm 116% | 11,4% 10,7% SEKm 1,559 4,240 9,3% 8.1% 1,534 1,392 1,278 : Q1 2023 (Q2 2023) Q3 2023 Q4 2023 Q12024 Q3 2023 Q4 2023 Q12024 Q2 2024 Q12023 (Q2 2023 Q3 2023 Q4 2023 Q12024 Q1 2023 VESTUM
Slide 8: Net sales growth
Net sales growth r 10% SEKm 1,534 140 eZ 1@ * Negative organic growth in Q2 of -9% Q2 2023 Divestments Fx Organic Q2 2024 growth VESTUM
Slide 9: LTM operating cash flow
LTM operating cash flow 899 869 824 2 684 645 Qi Q2 Q3 Q4 Qi Q2 2023 2024 Operating cash flow R12 months’ — Cash conversion rolling 12 months’ 1) Periods prior to Qa 2023 shown as reported, i.e. not adjusted for divestments (IFRS 5) * Onan LTM basis, cash conversion remains above 100% and amounted t
Slide 10: LTM free cash flow bridge
LTM free cash flow bridge SEKm ey * Cash flow from 58 . — 1" |_ss_| oe operating activities 5360 before NWC includes 147 . interest and tax 441 == payments * LTM free cash flow amounted to SEK 441m * LTM FCF/adj. EBITA of 82% CF Op Activities Change in NWC Capex Leasing amort. CIP before NWC VESTUM
Slide 11: Net debt and leverage
Net debt and leverage Financial net debt / EBITDA R12 months (Leverage) 3.5x 3.0x 2.9x 2.9x 2.5x -20% 2.0x 2.8 i 25 2 24 1.5x ail 1.0x, 0.5x 0.0x 2.0 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Financial net debt = Financial net debt / EBITDA R12 months (Leverage) ** Financial target, 2.5x Q1 2024 Q2 20
Slide 12: Summary
Summary . Lower volumes and profitability than previous year but reduced net debt including earn-outs Continued strong development in the Water segment with improved profitability Acquisition agenda resumed - will continue to evaluate targets in the Water segment Balanced capital allocation focus be
Slide 13: Q&A