Vestum Ab · OMXSTO:VESTUM
Vestum Ab — Q4 2023 Earnings Presentation
17 slides from Vestum Ab's earnings presentation, 2024
Slide 1: Vestum Year-End Report 2023 presentation
Slide 2: Summary 2023
summary 2023 Streamlined structure Solid sales and EBITA Strong cash flow * Divestitures to streamline * Stable sales growth of 12%, of + Improved operational cash operations and to increase the which 4% organic growth flow to SEK 824m with cash level of specialisation * Sales of SEK 5.8bn conversio
Slide 3: Strategic positioning of Vestum
Strategic positioning of Vestum » © Market leading niche products in Water (©) Leading positions in civic infrastructure 3X Industry leading profitability in Services s Local champions in Infrastructure LTM EBITA margin development! Q1 2022-Q4 2023 © We’re on a margin expansion journey Q1 2022 Q2202
Slide 4: Market leading product companies
Market leading product companies - increasing share of Group EBITA Own products and value-added 44% distributors = share of Group LTM EBITA 5 Price leadership with oe high margins Nationwide customer 21% networks with potential to sell cross-border Synergy extraction with cross-selling FY2021 FY2022
Slide 5: Highlights Q4 2023
Highlights J4 2023 * Stable sales growth of 3%, of which 1% organic growth * Profitability in line with same period last year * Double digit margin in all three segments * Continued strong development in the Water segment * Strong operational cash flow of SEK 228m + Decreased leverage and now within
Slide 6: Water segment
Water segment AY Niche products in water infrastructure * Continued strong demand and 217 profitability 176 180 * High growth in the UK 157 163 market lJ [I * Exploring add-on acquisition opportunities 48 31 J 31 31 lJ 32 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 SEK 737m SEK 142m 19.3% FY2023 net sal
Slide 7: Services segment
Services segment Niche service and maintenance offering to property owners * Demand continued to be lower than previous 546 ear 505 488 493 Y Stable margin in line 394 9 . with previous year f= Focus on gaining market share and maintaining profitability 64 57 l) 41 45 ai level Q4 2022 Q1 2023 Q2 202
Slide 8: Infrastructure segment
Infrastructure segment Experts within civic infrastructure * Solid overall demand * EBITA growth but 806 829 834 886 margin slightly lower than previous year poe J [J + Well-positioned with | high quality niche players in growing sector 88 62 98 98 91 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 SEK 3,14
Slide 9: Net sales and EBITA per quarter
Net sales and EBITA per quarter Stable net sales but slightly weaker EBITA margin development Net sales SEKm 1,509 Q4 2022 4,278 Q1 2023 1,534 Q2 2023 1,392 Q3 2023 Q4 2023 Q4 2022 127 Q1 2023 172 Q2 2023 158 Q3 2023 165 Q4 2023 SEkKm 11,2% Q4 2022 10,0% Q1 2023 11,2% Q2 2023 11.4% Q3 2023 EBITA EBI
Slide 10: Net sales growth
Net sales growth +3% * Net sales growth for the quarter driven primarily by the acquisition of Markvaruhuset Organic growth was 1%, representing 22% of total net sales growth Q4 2022 Organic Acquired Fx Q4 2023 growth growth VESTUM
Slide 11: Operating cash flow R12 months
Operating cash flow R12 months 899 824 * Strong operating cash flow and cash conversion in Q4 163 Qi Q2 Q3 Q4 Qi Q2 Q3 Q4 2022 2023 Operating cash flow R12 months" —Cash conversion rolling 12 months’ VESTUM 1) Periods prior to Qa 2023 shown as reported, i.e. not adjusted for divestments (IFRS 5)
Slide 12: Free cash flow in FY2023
Free cash flow in FY2023 SEKm = * Cash flow from ot = ee operating activities includes interest and ic tax payments 421 . a * Free cash flow in FY2023 amounted to SEK 421m CF Op Activities Change in NWC Capex Leasing amort. CIP before NWC VESTUM
Slide 13: Free cash flow development
Free cash flow development SEKm +75% = | * Free cash flow growth — 421 of SEK 180m in 2023, or | by 75% — * Free cash flow growth 133 per share of 70% 241 FCF 2022 CF Op Nwc CAPEX Leasing FCF 2023 Activities before NWC VESTUM
Slide 14: Capital allocation & liquidity
CAPITAL ALLOCATION Capital allocation & liquidity CASH & LIQUIDITY MANAGEMENT SER 1,045 421 74 608 345 ~~ Cash FCF Acquisitions & Debt Fx & Cash Unutilized Total 31 Dec 2022 divestments repayment Operations credit available held for sale facilities liquidity 31 Dec 2023 * Free cash flow for the year
Slide 15: Net debt and leverage
Net debt and leverage 3.5x 5 Vestum has reduced the financial net debt by 24% compared to last year 3.0x 2.9x Aes 28x 2.9x 2.9x 2.5x PPPeerTeSErerreerrerreerrerriry) Leverage at period end n Financial net debt, SEK Bn Financial net debt / EBITDA R12 months (Leverage) f ~24% Prarie 2.0x 27 2.8 2.8 3
Slide 16: Summary
Summary * Leading positions in growing niches of civic infrastructure across Northern Europe * Stable overall demand and profitability in 2023 * Product companies now represent 44% of Group EBITA - expected to continue to increase * Strong cash flow development - leverage within financial target * S
Slide 17: Q&A