Vestum Ab · OMXSTO:VESTUM
Vestum Ab — Q4 2022 Earnings Presentation
18 slides from Vestum Ab's earnings presentation, 2023
Slide 1: Vestum
VESTUM _— aa ~
Slide 2: This is Vestum
This is UVestum Specialists for sustainable development of our societies * Industrial group providing niche services and products to civic infrastructure * Local presence with a Northern European footprint * Over 2,300 employees in six countries * Decentralised leadership with strong local roots ena
Slide 3: Business segments: Water, Services, Infrastructure
Services & Specialised services and products in Specialised services and products to water technology focused on commercial properties improving the water infrastructure Segment share of Segment share of Group net sales Group net sales 28% Note: Share of Group net sales based on full year 2022. Roun
Slide 4: Q4 2022 key figures
Q4 2022 2, Ne EB EB 025 sales, SEKm 205 TA, SEKm 10.1% TA margin 258 Operating cash flow, SEKm 2,770 Financial net debt, SEKm 2.9x Leverage multiple VESTUM
Slide 5: Improving the service industry for water infrastructure
Improving the service industry for water infrastructure Q4 2022 figures 375 Net sales, SEKm 30 EBITA, SEKm 8 0% FY 2022 ° ° EBITA margin EBITA margin of 9.9% Niche service and maintenance offering to commercial property owners Q4 2022 figures 9/5 Net sales, SEKm 69 EBITA, SEKm 12.1% FY 2022 ol He) E
Slide 6: Quarterly sustainability reporting, challenges, collaborations and synergies
* Quarterly sustainability reporting with KPls for all companies in all six countries * Five new sustainability targets presented * Continued high inflation impacting profitability to some extent as well as challenges in certain customer segments * Mitigated by price adjustments and market share gai
Slide 7: Q4 highlights
Q4 highlights Q4 Q4 Y 2022 2021 2022 Net sales 2,025 987 6,930 4316 * Solid demand and stable profitability in the quarter EBITA 205 72 679 100 EBITA margin, % 104 73 98 76 * Strong growth vs. @4 last year driven primarily by acquisitions Adjusted EBITA 200 79 672 116 but also by strong organic Adju
Slide 8: Strong growth year-on-year in net sales and EBITA
& 3B Strong growth year-on-year in net sales and EBITA driven by a combination of acquisitions and organic growth EBITA EBITA margin 7,000 6,000 5,000 4,000 3,000 2,000 1,000 292 6,930 Net sales Rolling 12 months Net sales 1838 4797 2025 i [J ] | 987 O 0 Q3 2021 Q4 2021 Q12022 Q2 2022 Q3 2022 Q4 202
Slide 9: Net sales growth
Net sales growth SEKm (a3? \@108%)/ — —i——— Net sales growth for the quarter driven primarily 833 b ways y acquisitions __| _ Organic growth was 20%, 987 193 |@20%) representing 19% of total — net sales growth Q4 2021 Organic Acquired Fx Q4 2022 growth growth VESTUM
Slide 10: EBITA bridge
EBITA bridge SEKm * Total non-recurring items in the quarter amounted to SEK 5 million Margin 10.1% EBITA Contingent Listing costs Adj. EBITA consideration VESTUM
Slide 11: Strong sales performance in all segments, lower margin in Water
Strong sales performance in all segments, lower margin in Water due to a few assignments which will be completed in Q1 2023 Water Services Infrastructure Hl Net sales, SEKm EBITA, SEKm EBITA margin Hl Net sales, SEKm EBITA, SEKm EBITA margin Hil Net sales, SEKm EBITA, SEKm EBITA margin 575 1,075 529
Slide 12: Net debt and leverage
Net debt and leverage % 4,0 € 5 M $ a 3 33 Target leverage range = Leverage at period end oO 2 2,9 . 3,0 os 9 28 28 i was 2.9x ; = Target leverage range is xe} g £ Earn-out debt at period end was SEK 399m and leverage incl. earn-outs was 3.3x 27 2,8 2,8 2) 2,0 2,3 1,5 1,0 40 : ] , a ’ Q2 2021 Q32021
Slide 13: EBITDA to operating cash flow
i i 149 EBITDA EBITDA Change Capex OCF Leasing OCF incl. Paidinterest — Paid tax OCF incl. in NWC amort. leasing (net) leasing, amort. interest & tax VESTUM
Slide 14: Operating cash flow R12 months
Operating cash flow R12 months Operating cash flow R12, SEKm 77% 56% 50% 154 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Hl Operating cash flow rolling 12 months Cash conversion rolling 12 months Operating cash conversion R12, % * Operating cash flow rolling 12 months increased compared to the previous quarter
Slide 15: Cash and available liquidity
SEKm 794 581 2m a; 608 Cash and Operating Investing Financing Fx & Operations Cash and Unutilized — Total available cash equiv. activities activities activities held for sale cash equiv. credit facilities liquidity 30 Sep 2022 31 Dec 2022 31 Dec 2022 31 Dec 2022 VESTUM
Slide 16: Acquisition approach and pipeline
2 * Continued reserved approach to new platform acquisitions due to market conditions * Completed one acquisition since end of Q4 2022 S| * Current pipeline focused on add-on acquisitions VESTUM
Slide 17: Summary
* High organic growth and solid overall demand and cash flow * ESG — new targets presented * Continued challenges related to high inflation and within certain customer segments * Accelerated work related to portfolio collaborations and synergy extraction * Successful listing on Nasdaq Stockholm Main
Slide 18: Vestum
VESTUM _— aa ~