FOURTH QUARTER 2023

• Net sales amounted to EUR 51,585 thousand (59,783), a decrease of 13.7% compared with the corresponding period last year. Organic growth amounted to -9.8%.
• Operating earnings (EBIT) amounted to EUR 5,603 thousand (6,537), corresponding to an EBIT margin of 10.9% (10.9).
• Operating earnings before depreciation (EBITDA) amounted to EUR 7,389 thousand (8,020), corresponding to an EBITDA margin of 14.3% (13.4).
• Underlying earnings before depreciation (underlying EBITDA) amounted to EUR 8,563 thousand (8,587), corresponding to an underlying EBITDA margin of 16.6% (14.4).
• Order intake amounted to EUR 41,516 thousand (35,084), an increase of 18.3% compared with the same period last year. Organic growth amounted to 30.6%.
• The intensified efficiency work has now been fully implemented, with reduction of workforce completed according to plan.

JANUARY – DECEMBER 2023

• Net sales amounted to EUR 189,903 thousand (218,440), a decrease of 13.1% compared with the corresponding period last year. Organic growth amounted to -8.6%.
• Operating earnings (EBIT) amounted to EUR 13,162 thousand (16,758), corresponding to an EBIT margin of 6.9% (7.7).
• Operating earnings before depreciation (EBITDA) amounted to EUR 19,763 thousand (22,516), corresponding to an EBITDA margin of 10.4% (10.3).
• Underlying earnings before depreciation (underlying EBITDA) amounted to EUR 23,710 thousand (26,862), corresponding to an underlying EBITDA margin of 12.5% (12.3).
• Order intake amounted to EUR 199,275 thousand (215,767), a decrease of 7.6% compared with the same period last year. Organic growth amounted to -0.1%.
• Operating earnings for the year was negatively impacted by lower sales, mainly due to delays in customers’ financing of their projects, especially during the first half of the year. The situation improved during the second half of the year with increased order intake and improved margins.
• As of January 1, 2023, the accounting currency and presentation currency is Euro.

COMMENTS FROM THE CEO

In the fourth quarter of the year, ViaCon delivered a result (adjusted EBITDA) in line with the fourth quarter of 2022, which was the best fourth quarter for the Group to date. This means that the second half of 2023 shows a clear improvement in earnings compared with the previous year. Volumes have still not returned to 2022 levels, but just like in the third quarter, order intake in Q4 is increasing compared to the previous year. In addition, it is gratifying that order intake has also developed positively at the beginning of 2024. The efficiency work that was intensified during the summer has now been carried out according to plan, which means that ViaCon’s margins improved both in the quarter and for the full year 2023.

Sales for the quarter amounted to EUR 51,585 thousand (59,783), a decrease of 13.7% compared to the previous year. Although market activity is high, volumes have been lower in the fourth quarter compared to the previous year as a result of the uncertainty created by high interest rates and inflation levels during the year. Organic growth was -9.8%, adjusted for exchange rate effects, divestments and acquisitions.

Operating earnings (EBIT) amounted to EUR 5,603 thousand (6,537), corresponding to an EBIT margin of 10.9% (10.9). Adjusted operating earnings amounted to EUR 6,777 thousand (7,104), corresponding to an adjusted EBIT margin of 13.1% (11.9). Operating earnings have been affected by the lower volumes, but also by the reduced costs from the efficiency work. Cash flow from operating activities for the quarter was positive, mainly driven by operating profit and improved working capital.

There are several infrastructure investments taking place around Europe as there is a great need to renew and expand an aging infrastructure in many countries. Order intake during the quarter was strong and amounted to EUR 41,516 thousand (35,084), corresponding to organic growth of 30.6%. Our expectation is that order intake will remain at a good level in the coming period.

In June, we decided to intensify the efficiency work that was initiated in 2022 with the aim of streamlining the organization for increased agility and efficiency, with the goal of reducing the workforce by approximately 180 positions. The initiative has now been fully implemented and reduction of workforce have been completed according to plan. During the fourth quarter, the initiative has reduced our costs excluding non-recurring costs, compared to the costs we had planned for, by approximately EUR 3.0 million. For the full year 2023, the initiative has contributed to cost savings excluding non-recurring costs of approximately EUR 6.3 million. By the end of the fourth quarter, this means that the initiative will result in sustainable efficiency improvements corresponding to approximately EUR 10 million on an annual basis. The non-recurring costs related to this initiative amount to EUR 3.1 million, of which EUR 1.1 million was charged to earnings in the fourth quarter. These measures will strengthen ViaCon both in the short and long term.

With a continued increase in order intake and with positive cost effects from the efficiency work, we look forward with confidence to a successful 2024.

Stefan Nordström,
President and CEO, ViaCon Group

Presentation of the report

A live presentation of the financial results and development for the period followed by a Q&A session will be held as follows:

Date: February 23, 2024
Time: 11:00 -12:00 CET
Presenters: CEO Stefan Nordström and CFO Philip Delborn
Link to webcast: https://www.finwire.tv/webcast/viacon-group/year-end-report-2023/

The session will be recorded and available to watch on-demand via the link above.

The full report is published at www.viacongroup.com.

THIRD QUARTER

• Net sales amounted to EUR 57,710 thousand (62,607), a decrease of 7.8% compared with the corresponding period last year. Organic growth amounted to -1.5%.
• Operating earnings (EBIT) amounted to EUR 8,557 thousand (6,441), corresponding to an EBIT margin of 14.8% (10.3).
• Operating earnings before depreciation (EBITDA) amounted to EUR 10,246 thousand (7,842), corresponding to an EBITDA margin of 17.8% (12.5).
• Underlying earnings before depreciation (underlying EBITDA) amounted to EUR 11,492 thousand (8,937), corresponding to an underlying EBITDA margin of 19.9% (14.3).
• Order intake amounted to EUR 61,205 thousand (55,052), an increase of 11.2% compared with the same period last year. Organic growth amounted to 26.8%.
• During the quarter, the operating earnings were affected by the strong sales development in the Bridges & Culverts business unit, as well as by the ongoing efficiency improvement work in all three business units.

JANUARY – SEPTEMBER

• Net sales amounted to EUR 138,319 thousand (158,657), a decrease of 12.8% compared with the corresponding period last year. Organic growth amounted to -8.2%.
• Operating earnings (EBIT) amounted to EUR 7,559 thousand (10,221), corresponding to an EBIT margin of 5.5% (6.4).
• Operating earnings before depreciation (EBITDA) amounted to EUR 12,374 thousand (14,496), corresponding to an EBITDA margin of 8.9% (9.1).
• Underlying earnings before depreciation (underlying EBITDA) amounted to EUR 15,147 thousand (18,275), corresponding to an underlying EBITDA margin of 11.0% (11.5).
• Order intake amounted to EUR 157,760 thousand (180,683), a decrease of 12.7% compared with the same period last year. Organic growth amounted to -6.1%.
• The year’s operating earnings have been negatively affected by lower sales mainly due to delays in customers’ financing of their projects during the first half of the year. The situation improved during the third quarter, with increased order intake and earnings improvement.
• As of January 1, 2023, the accounting currency and presentation currency is Euro.

COMMENTS FROM THE CEO

During the third quarter, activity increased in most of ViaCon’s markets compared to the first half of the year. This is reflected in the group’s sales, results and order intake. The situation with delays in ViaCon’s customers’ financing solutions, which had a negative impact on the first and second quarters, improved in the third quarter. In addition, the intensified efficiency work launched at the end of the second quarter has had a positive effect on our costs during the period.

Sales for the quarter amounted to EUR 57,710 thousand (62,607), a decrease of 7.8% on the previous year. The sales development was related to GeoTechnical Solutions and StormWater Solutions, where we still have some effects from delays in customers financing solutions. Bridges & Culverts Solutions had a very good organic growth of 27.6%. ViaCon has chosen to leave, and divest, non-core operations with sales of around EUR 972 thousand in the corresponding period previous year. By continuing to leave product groups with low profitability, we increase our product margins. Organic growth amounted to -1.5% adjusted for currency effects, divestments and acquisitions.

The operating earnings (EBIT) amounted to EUR 8,557 thousand (6,441), corresponding to an EBIT margin of 14.8% (10.3). The adjusted operating earnings amounted to EUR 9,802 thousand (7,537), corresponding to an adjusted EBIT margin of 17.0% (12.0). The operating earnings have been affected by the strong sales development in the Bridges & Culverts business unit as well as by the ongoing efficiency work in all three business units. Cash flow for the quarter was positive, mainly driven by operating profit and changes in working capital.

There are several infrastructure investments taking place around Europe as there is a great need to renew and expand an ageing infrastructure in many countries. Order intake during the quarter was strong and amounted to EUR 61,205 thousand (55,052), corresponding to an organic growth of 26.8%. Our expectation is that order intake will remain at a good level during the autumn.

In June, we decided to intensify the efficiency work initiated in 2022 with the aim of slimming the organization for increased agility and efficiency, which means that ViaCon will reduce the workforce by approximately 180 positions. During the quarter,

the initiative progressed according to plan and by the end of September, the reduction of most of these positions was completed. The reduction of the remaining positions will be implemented during the fourth quarter. During the third quarter, the initiative has reduced our costs excluding non-recurring items, compared to the costs we had planned for, by approximately EUR 2.7 million. For the full year 2023, the initiative is expected to contribute to cost savings excluding non-recurring items of approximately EUR 6 million. At the end of the fourth quarter, we expect this initiative to result in sustainable efficiencies corresponding to approximately EUR 10 million on an annual basis. The non-recurring items linked to this initiative are expected to amount to EUR 2.5-3.0 million, of which EUR 1.2 million have burdened the result in the third quarter. These measures will strengthen ViaCon both in the short and in the long term.

With an increasing order intake and with the ongoing streamlining work, we confidently look forward to a good end to the year.

Stefan Nordström,
President and CEO, ViaCon Group

Presentation of the report

A live presentation of the financial results and development for the period followed by a Q&A session will be held as follows:

Date: November 17, 2023
Time: 10:00 -11:00 CET
Presenters: CEO Stefan Nordström and CFO Philip Delborn
Link to webcast: https://www.finwire.tv/webcast/viacon-group/q3-2023/

The session will be recorded and available to watch on-demand via the link above.

The full report is published at www.viacongroup.com.

SECOND QUARTER

• Net sales amounted to EUR 50,075 thousand (61,091), a decrease of 18.0% compared with the corresponding period last year. Organic growth amounted to -14.3%.
• Operating earnings (EBIT) amounted to EUR 2,603 thousand (6,536), corresponding to an EBIT margin of 5.2% (10.7).
• Operating earnings before depreciation (EBITDA) amounted to EUR 4,151 thousand (7,898), corresponding to an EBITDA margin of 8.3% (12.9).
• Underlying earnings before depreciation (underlying EBITDA) amounted to EUR 5,398 thousand (9,209), corresponding to an underlying EBITDA margin of 10.8% (15.1).
• Order intake amounted to EUR 53,225 thousand (61,412), a decrease of 13.3% compared with the same period last year. Organic growth amounted to -10.2%.
• ViaCon intensified the efficiency work initiated in 2022. The initiative is expected to result in reduced costs, excluding non-recurring items, of approximately EUR 5-6 million in 2023, compared to the planned costs for the year.

JANUARY – JUNE 2023

• Net sales amounted to EUR 80,609 thousand (96,050), a decrease of 16.1% compared with the corresponding period last year. Organic growth amounted to -12.6%.
• Operating earnings (EBIT) amounted to
• EUR -998 thousand (3,779), corresponding to an EBIT margin of -1.2% (3.9).
• Operating earnings before depreciation (EBITDA) amounted to EUR 2,128 thousand (6,655), corresponding to an EBITDA margin of 2.6% (6.9).
• Underlying earnings before depreciation (underlying EBITDA) amounted to EUR 3,655 thousand (9,339), corresponding to an underlying EBITDA margin of 4.5% (9.7).
• Order intake amounted to EUR 96,555 thousand (125,631), a decrease of 23.1% compared with the same period last year. Organic growth amounted to -20.5%.
• As of January 1, 2023, the accounting currency and presentation currency is Euro.

COMMENTS FROM THE CEO

Interest rate increases and high inflation during the first half of the year have entailed delays in ViaCon’s customers’ financing solutions for infrastructure projects. This shift in the customers’ projects has had a negative impact on the quarter’s turnover and results. Demand for ViaCon’s solutions is still high and during the summer months ViaCon has had a clearly increasing order intake. To ensure that 2023 will also be a strong year, ViaCon has, during the quarter, intensified the efficiency work initiated in 2022.

Sales for the quarter amounted to EUR 50,075 thousand (61,091), a decrease of 18.0% on the previous year. The sales development was related to Bridges & Culverts Solutions and GeoTechnical Solutions. StormWater Solutions had a good organic growth of 8.7%. ViaCon’s acquired operations have contributed to a turnover of EUR 229 thousand, but we have also chosen to leave, and divest, non-core operations with a turnover of around EUR 1,148 thousand in the corresponding period previous year. By continuing to leave product groups with low profitability, we increase our product margins. Organic growth amounted to -14.3% adjusted for divestments and acquisitions.

The operating earnings (EBIT) amounted to EUR 2,603 thousand (6,536), corresponding to an EBIT margin of 5.2% (10.7). The adjusted operating earnings amounted to EUR 3,850 thousand (7,848), corresponding to an adjusted EBIT margin of 7.7% (12.8). The operating earnings were affected by the lower sales, mainly as a result of delays in customer financing solutions. The quarter’s cash flow was improved compared to the corresponding period last year, where mainly the efficiency work with improving the working capital contributed positively.

There are several infrastructure investments taking place around Europe as there is a great need to renew and expand an ageing infrastructure in many countries. Order intake during the quarter amounted to EUR 53,225 thousand (61,415), corresponding to an organic growth of -10.2 percent. Demand and order intake for 2022 was high, but unevenly distributed between the quarters.

In June, we decided to intensify the efficiency work initiated in 2022 with the aim of slimming the organization for increased agility and efficiency, which means that ViaCon will reduce the workforce by approximately 180 positions. Through this initiative we expect to reduce our costs, excluding non-recurring items, compared to the costs we had planned for in 2023 by approximately EUR 5-6 million in 2023. The savings will be visible to some extent already in the third quarter and at the end of the fourth quarter, we expect this initiative to result in sustainable efficiencies corresponding to approximately EUR 10 million on an annual basis. The non-recurring items linked to this initiative are expected to amount to EUR 2.5-3.0 million, of which EUR 1.0 million will be charged to the result in the second quarter and the remaining costs will be charged to the third and fourth quarter of 2023. These measures will strengthen ViaCon both in the short and long term.

The increase in order intake we saw during the summer combined with the ongoing efficiency work means that we, with confidence, look forward to a continued good development as the leading European supplier with more sustainable solutions compared to alternative types of materials.

Stefan Nordström,
President and CEO, ViaCon Group

Presentation of the report

A live presentation of the financial results and development for the period followed by a Q&A session will be held as follows:

Date: August 30, 2023
Time: 14:00 -15:00 CET
Presenters: CEO Stefan Nordström and CFO Philip Delborn
Link to webcast: https://www.finwire.tv/webcast/viacon-group/q2-2023/

The session will be recorded and available to watch on-demand via the link above.

The full report is published at www.viacongroup.com.