Vestum Ab · OMXSTO:VESTUM
Vestum Ab — Q1 2023 Earnings Presentation
18 slides from Vestum Ab's earnings presentation, 2023
Slide 1: Vestum Q1 2023
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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 1,900 employees in four countries * Decentralised leadership with strong local roots en
Slide 3: Q1 2023 key figures
1,400 Ne EB sales, SEKm 105 TA, SEKm 7% EB TA margin 1) Net debt adjusted for the announced divestment. s and are focused on the remaining otherwise state 143 Operating cash flow, SEKm 2,464 Financial net debt!, SEKm 2.7X Leverage multiple! VESTUM
Slide 4: Niche offering in water infrastructure
Niche offering in water infrastructure Q1 2023 figures 176 Net sales, SEKm 31 EBITA, SEKm 17.4% LTM Q1 2023 . ° EBITA margin EBITA margin of 19.9% Niche service and maintenance offering to commercial property owners Q1 2023 figures 529 Net sales, SEKm 43 EBITA, SEKm 8 0% LTM Q1 2023 . ° EBITA margin
Slide 5: Transaction overview
Transaction overview * Divestment of portfolio of 20 small companies within the Water segment * Local pump service companies in Sweden, Norway, Denmark, Finland and Germany * Intend to fully redeem secured bond of NOK 950m * Purchase price of c. SEK 335m * Closing expected in Q2 2023 * Streamlining
Slide 6: Segment overview
Segment ov: iew Geographical presence and key financials + Niche offering in water technology focused on improving the water : 9 Geographical presence infrastructure * Highly profitable product companies focused on water pumps, water LTM Q1 2023 filters, pump equipment and accessories to the water a
Slide 7: Strong growth and EBITA margin development Q1 2022 - Q1 2023
Strong growth and EBITA margin development Q1 2022 - Q1 2023 Hl Net sales, Rolling 12 months EBITA, Rolling 12 months. EBITA margin, Rolling 12 months 4387 179 B70) Q1 2022 Q2 2022 5 892 5 546 Q3 2022 Note: Historical figures shown as reported in each respective quarter, i.e. not adjusted for divest
Slide 8: Strong growth year-on-year in net sales and EBITA primarily driven by acquisitions
Strong growth year-on-year in net sales and EBITA primarily driven by acquisitions EBITA EBITA margin & 3B 7,000 6,000 5,000 4,000 3,000 2,000 1,000 Net sales Rolling 12 months Gps Hi Net sales 1,806 1,632 1,601 1400 1,067 (Q1 2022) Q22022 Q32022 Q42022 |Q12023} SEKm % 20 EBITA rolling 12 months MBE
Slide 9: Net sales growth
Net sales growth sekm (2233) (31%) ¢ Net sales growth for the quarter driven primarily Wer = a by acquisitions * Organic growth was 4.1%, representing 13% of total net sales growth Q1 2022 Organic Acquired Fx Q1 2023 growth growth VESTUM
Slide 10: EBITA bridge
EBITA bridge SEKm * Total non-recurring items in the quarter amounted to SEK 9 million Margin 7.5% EBITA Contingent Acquisition costs Adj. EBITA consideration VESTUM
Slide 11: Stable demand and profitability in Water and Services
Stable demand and profitability in Water and Services, while the development in Infrastructure in Q1 is impacted by seasonality. Water Services Infrastructure EBITA, SEKm = EBITA margin Hl Net sales, SEKm EBITA, SEKm EBITA margin Hl Net sales, SEKm EBITA, SEKm EBITA margin Hil Net sales, SEKm 575 1,
Slide 12: Net debt and leverage
Net debt and leverage a fo} Adjusted for agreed purchase price from divestment, net debt decreased from SEK 2.8bn to SEK 2.5b6n Leverage Leverage at period end was 2.7x adjusted for agreed 2.0 purchase price from divestment Sy N Financial net debt, SEK Bn Target leverage is <2.5x Earn-out debt at pe
Slide 13: Operating cash flow bridge
SEKm 166 A. 97 a EBITDA ee 56 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 83% * Operating cash flow rolling 12 months decreased compared to the previous quarter driven primarily by negative net working capital development compared to Q1 last year Z0% 720 53% 56% Saks Cash conversion R12 months decreased compared to the previous quarter, also
Slide 15: M&A update
M&A update A WY "ss * Completed one acquisition * Current pipeline focused on * Intend to reduce the WeSC in Q1 2023 add-on acquisitions operations with the aim of * Divestment announced no longer owning the after the end of Q1 2023 business post 2023 VESTUM
Slide 16: Updated financial targets
Updated financial targets GROWTH MARGIN >15% 212.0% Mid-term EBITA per share growth Mid-term EBITA margin Previous >10.0% EBITA margin CAPITAL STRUCTURE <2.5x Net debt / EBITDA Previous 2.5-3.5Xx Net debt / EBITDA DIVIDEND POLICY Reinvest all cash flows VESTUM
Slide 17: Summary 2023
Summary 1 2023 * Solid overall demand and profitability * Announced strategic divestment after end of quarter * Several successful portfolio collaborations * Continued focus on capital structure efficiency as well as improving profitability and cash flow generation VESTUM
Slide 18: Vestum
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