Vestum (VESTUM) ABGSC Investor Days summary

Business model and strategy

• Focuses on compounding growth through acquisitions, organic development, and reinvestment of cash flows, emphasizing self-financed expansion.

• Operates in large, growing infrastructure markets, targeting selected niches and technologies with a decentralized model.

• Capital allocation has shifted toward acquisitions, especially in product companies with market-leading positions.

• Maintains a clean balance sheet to support ongoing growth initiatives.

Financial performance and structure

• Reported net sales of SEK 4,155 million and an EBITA margin of 10.9%.

• Comprises 34 companies with an average net sales of SEK 122 million and an average company age of 28 years.

• Net debt to EBITDA stands at 2.1x, with 70% of EBITA from services and 51% from niche products.

• EBITA margin and EBITA/NWC have shown consistent improvement, with over 60% of products exposed to water infrastructure.

Growth areas and acquisitions

• Flow Technology identified as a key growth area, driven by underinvestment and climate change, with a major regulatory investment cycle in the UK (AMP-8, £104 billion, 2025-2030).

• Recent acquisition of Nortech, a UK leader in Flow Technology, adds a new vertical and brings high margins and strong management.

• M&A strategy targets B2B companies in infrastructure niches, with strict financial and commercial criteria, including EBITA margins above 15% and disciplined valuations.