FOURTH QUARTER 2021

• Net sales amounted to SEK 466.8 million (505.3), a decrease of 7.6% compared with the same period last year.

• Earnings before depreciation (EBITDA) amounted to SEK 14.9 million (30.7), corresponding to an EBITDA margin of 3.2 % (6.1).

• Operating earnings (EBIT) amounted to SEK 0.7 million (16.8), corresponding to an EBIT margin of 0.1% (3.3).

• Underlying earnings before depreciation (underlying EBITDA) amounted to SEK 31.7 million (41.8) , corresponding to an underlying EBITDA margin of 6.8% (8.3).

• Tubosider (United Kingdom) Limited was acquired.

• ViaCon issued senior secured bonds of EUR 100 million with variable interest rates.

JANUARY – DECEMBER 2021

• Net sales amounted to SEK 1,946.3 million (1,970.2), a decrease of 1.2 % compared with last year.

• Earnings before depreciation (EBITDA) amounted to SEK 200.9 million (177.9), corresponding to an EBITDA margin of 10.3 % (9.0).

• Operating earnings (EBIT amounted to SEK 143.7 million (125.0), corresponding to an EBIT margin of 7.4 % (6.3).

• Underlying earnings before depreciation (underlying EBITDA) amounted to SEK 239.1 million (205.5), corresponding to an underlying EBITDA margin of 12.3% (10.4).

• New organization with three business areas, Bridges & Culverts Solution, GeoTechnical Solutions and StormWater Solutions, was implemented at the beginning of the year.

• Hamco and associated companies was acquired.

• Tubosider (United Kingdom) Limited was acquired.

• ViaCon issued senior secured bonds of EUR 100 million with variable interest rates.

COMMENTS FROM THE CEO
Net sales for the year totalled SEK 1,946.3 million (1,970.2), a decline of 1.2% on the previous year. During the year, ViaCon acquired operations contributing to an annual sales of SEK 95.7 million, of which SEK 39.3 million in the fourth quarter, and has chosen to leave non-core business with an annual sales of approximately SEK 200 million, of which approximately SEK 55 million in the fourth quarter. Adjusted for divestments and acquisitions, organic growth was 4.5%. Underlying earnings before depreciation for the whole year amounted to SEK 239.1 million (205.5), equating to an underlying EBITDA margin of 12.3% (10.4). The increase in profitability is primarily driven by the strategic agenda of focusing on selected, more profitable business and product solutions. At the same time, we have successfully managed increased costs for input materials and longer lead times from suppliers while maintaining delivery precision to the customer. A dedicated efficiency programme with regard to both capital and costs, as well as structure and processes among others within our industrial system has also contributed to the improved profitability.

Net sales for the quarter amounted to SEK 466.8 million (505.3), a decrease of 7.6% compared to the corresponding period the previous year. The fourth quarter developed somewhat weaker than the previous year, mainly caused by delays in our customers’ infrastructure investments driven by a general cost increase of input materials. Adjusted for divestments and acquisitions, organic growth was -5.1%. Underlying earnings before depreciation for the quarter amounted to SEK 31.7 million (41.8), equating to an underlying EBITDA margin of 6.8% (8.3). The difference is largely attributable to lower volumes during the quarter.

The company has developed strongly based on its new strategic directives, with a new business unit structure in order to grow our core business. Furthermore, the operation has been further refined, and new financing via the issue of senior secured bonds has enabled completion of the separation from Saferoad.
In April, an acquisition was made of Hamco and related companies. The acquisition is part of the Group’s plans for further expansion in Western Europe. In December, Tubosider (United Kingdom) Limited was acquired, which further strengthens ViaCon’s market-leading position in Europe for corrugated steel-based civil engineering solutions.
We can look back on another record-breaking year, during which we have established a strong platform for delivering competitive and sustainable customer solutions. ViaCon is now an independent group of companies with a clearly defined agenda for the future.

Stefan Nordström, President and CEO, ViaCon Group

The Full Year Report is published at www.viacongroup.com.