ANNUAL
REPORT
Smart services for a sustainable world
2021
Table of
contents
4
6
8
9
10
14
16
18
20
29
31
34
42
74
77
CEO REVIEW
MARKET & TRENDS
STRATEGY
VISION & MISSION
OFFERING
SAFETY
SUSTAINABILITY
PEOPLE & CULTURE
SEGMENTS
CORPORATE GOVERNANCE REPORT
MANAGEMENT REPORT
FINANCIAL STATEMENTS
NOTES
AUDITOR’S REPORT
ALTERNATIVE PERFORMANCE
MEASURES
NET SALES PER SEGMENT
EUROPE & MIDDLEEAST EUROPE & MIDDLEEAST 41%41%
FINLAND & BALTICS FINLAND & BALTICS 35%35%
THIS IS
WORLD CLASS INDUSTRIAL
MAINTENANCE PROVIDER
Quant is the number one partner in supporting the customer
journey towards Smart Maintenance. Smart Maintenance is
achieved by a systematic maintenance approach with integrated
digital tools to drive sustainability, plant performance, cost
optimization, and safety. Our success is the result of strong
partnerships between Quant and our customers.
SWEDEN
HQ in Stockholm,
Sweden
MORE THAN
30
Years of experience
2,436
Number of
Employees
MEUR
164.4
2021 Full Year Revenue
77
Sites in operation
32
AMERICAS AMERICAS 24%24%
QUANT ANNUAL REPORT 2021 QUANT ANNUAL REPORT 2021
54
TOMAS RÖNN
CEO
Quant AB (publ)
CEO REVIEW
2021 was yet another year characterized by the pandemic and
its impacts. Although we had several positive developments,
such as increased portfolio value and much better customer
and employee satisfaction indices, we also had additional
pandemic-related costs which aected our proitability.
Safety is always at the top of our agenda, and we carried out
several initiatives during the year, most notably, the safety
week which was much appreciated by employees as well as
customers. Using the positive feedback and ideas we received,
we are excited to be oering an even better safety week in
2022.
We continued to execute on our strategy which has four main
areas:
• People
• Operational performance
• Digitalization
• Sales
Both the employee and customer satisfaction indices
improved substantially which is a good indication that our
strategy is working, and it is establishing a very good
platform for the future success of the company.
To put more emphasis on the digitalization we have
added a Chief Digital Oicer who is a member of the
Executive Management Team. Under her leadership
we will update our digitalization strategy and
accelerate our digitalization initiatives.
During the second half of 2020 we increased the
sales opportunity pipeline and some of these
opportunities materialized in orders during 2021.
As a result, we increased our portfolio value with
more than 20% in 2021.
Additional costs, related to the pandemic, continued
throughout the year and on most sites. Our priority was the
safety and wellbeing of our people but also to make sure we
could serve our customers according to the obligations under
the contracts. The additional costs resulted in a proitability
level below our target.
Towards the end of the year, we started work on the reinancing
of the company as the maturity date of our bonds was getting
closer. In March 2022 we were able to publish the result of this
work and I am looking forward to inalizing this plan in the near
future.
I would like to thank all my colleagues for the excellent work
during the past year, we made good progress and we will make
2022 an even better year.
I would also like to thank our customers, owners and lenders
for their continued trust and cooperation.
CEO REVIEW
54
On 24 March 2022 Quant AB (publ)
announced, as part of an initiation of a
written procedure in respect of its senior
bonds, that Permira Credit Solutions II Master
Sub S.A. (“Permira Credit”), the holder of the
junior bond, and Nordic Capital, the current
majority owner of Quant, have agreed
in principle to a conditional agreement
under which Permira Credit is expected to
become the new majority owner of Quant.
Nordic Capital is expected to remain as
a minority shareholder. The agreement
between Permira Credit and Nordic Capital
is conditional upon, amongst other things,
agreements and consents relating to an
extension and reduction of the existing
super senior revolving credit facility, and is
subject to formal approval of merger ilings
with competition authorities. Permira Credit
will, as part of the agreement with Nordic
Capital, provide EUR 10 million of new
capital as a cash injection on the balance
sheet. Amounts corresponding to the junior
bond and certain shareholder loans will, in
time, also be capitalized resulting in releases
of these debts.
In the written procedure the holders of the
senior bonds were requested to approve,
inter alia, (i) an unconditional extension (the
“Interim Amendment”) of the terms of the
senior bonds by three months, extending
the maturity date from 25 February
2023 to 25 May 2023, and (ii) conditional
amendments (the “Final Amendments”)
consisting of an extension of the term of
the senior bonds from 15 May 2023 to 15
November 2025, an amendment of the
control clause to allow for Permira Credit
to take over as the new majority owner of
Quant, a correction of wording to allow
non-wholly owned subsidiaries to make
pro-rata distributions to group companies
and joint venture partners, an undertaking
to achieve an increase of equity to an
amount corresponding to the junior bond
which is then extinguished, and an update
of the call structure of the Senior Bond. The
Final Amendments are conditional upon
the cash injection by Permira Credit and
the extension and reduction of the existing
super senior revolving credit facility.
On 7 April 2022 Quant received an approval
from the holders of the senior bonds in the
written procedure and on 21 April 2022 the
Interim Amendment was fully and inally
executed. At the time of the publication
of the Annual Report the company was
awaiting formal approval of merger control
ilings. For more information, please visit
www.quantservice.com/investors
REFINANCING AND A NEW
MAJORITY OWNER
QUANT ANNUAL REPORT 2021 QUANT ANNUAL REPORT 2021
76
MARKET & TRENDS
The industrial maintenance industry has four main categories
of providers:
1. Integrated maintenance service providers
2. Original equipment manufacturers (OEM)
3. Engineering, procurement and construction providers
(EPC)
4. Local contractors
Quant holds a leading market position in the global industrial
maintenance market as an integrated maintenance service
provider for management, development and execution of
maintenance at customer plants.
Integrated maintenance services providers, such as Quant,
oer services covering management, engineering, planning,
and execution of maintenance services, either provided through
a business process outsourcing setup, typically for the complete
plant, or via regional or local hub-based service organizations,
then responsible only for a certain process or asset class.
OEMs typically provide a portfolio of add-on services (specialist
support, spare parts, and training) when selling the equipment
to customers. Services expansion and spare parts supply are
clear focus areas for most OEMs. Some OEMs want to primarily
focus on spare parts and build up a network of associated
technical specialist irms serving their machinery in a speciic
market, while others have their own service organization.
EPCs can include maintenance services, typically until end of
commissioning, as one area of responsibility in turnkey projects.
However, this is often done through partnerships with OEMs or
integrated maintenance service providers.
Local contractors, often family-owned, compete through
price, closeness and responsiveness. They sometimes have a
local workshop supporting their repair activities.
In an environment of growing global competition, complexity and digitalization, the
market is driven by an ever growing need for cost eiciency, plant performance,
energy and resource eiciency, and health and safety.
Sustainable manufacturing
Sustainable manufacturing and industrial production means application of
economically sound processes which minimize negative environmental impacts
while conserving energy and natural resources. This increasingly leads to demands
for external partners such as Quant to provide modern, structured and eicient
maintenance services coupled with eective change management processes.
Extend asset life cycle
The need to extend the productive lifetime of assets and production equipment is
expected to continue to be strong, especially in mature industrial markets, meaning
continued need for professional maintenance services.
Increased technical complexity
As machinery and equipment become more complex, this forces companies to
source specialist maintenance services from external partners to a greater extent
than before. The maintenance budget allocated for external services is expected to
increase going forward.
More cost lexibility for the customer
Companies want to optimize their operational cost, and also align their costs to
varying production output and demand, making them less vulnerable to for example
economic downturns or other demand dips. Companies are expected to increase
the portion of maintenance services carried out by external service providers in order
to achieve a more lexible setup.
Growing need to reduce cost of unreliability and downtime
Industrial customers become more and more aware of the cost of unreliability
and downtime caused by unexpected and repetitive equipment failures. As a
consequence, preventive and predictive maintenance solutions will gain even more
traction to help enterprises optimize production output and cost, thereby lowering
cost of unit produced and increasing price competitiveness.
Continued digitalization
There is a signiicant potential in leveraging industrial Internet of Things (IoT) solutions
across most industries. Digital solutions providing decision support are now readily
available, can collect vast amount of data and transform them into meaningful
insights. Moreover, artiicial intelligence and machine learning approaches can be
integrated aiming at optimizing various aspects of service delivery, such as on-line
predictive maintenance and quality assessment. Real-time inputs from sensors,
actuators, and other control parameters could not only predict asset failures, but
also help companies monitor maintenance in real time and take proactive actions.
Improved sourcing of maintenance repair and overhaul services
Maintenance repair and overhaul (MRO) sourcing services will mature and develop.
Companies will look for master suppliers who can handle a larger and wider scope,
as well as manage multiple sub suppliers, thereby leveraging scale and know-how.
MARKET & TRENDS
MARKET & TRENDS
76
The main market players oering
industrial maintenance services
QUANT ANNUAL REPORT 2021 QUANT ANNUAL REPORT 2021
98
OUR VISION & MISSION
STRATEGY
STRATEGY
PROFITABILITY
The result of satisied employees, high operational
performance, digitalization and strong sales
is improved proitability. Our aim is to achieve
proitability above industry average.
PEOPLE
Our aim is to become the employer of choice. We listen to our employees through employee
satisfaction surveys and we strive to keep our employees healthy and safe by attaining the
highest possible safety standards. By building a strong company culture with shared values,
goals, attitudes and practices we create a team spirit which enables Quant employees to easily
work across regions and functions. Active and open communication with and among employees
is an essential goal in the Quant organization.
SALES
We customize our value proposition, tailored to the needs of each customer. Additionally, we
have expanded our strong sales team to generate more opportunities and increase sales.
OPERATIONAL PERFORMANCE
Our aim is to create value for our customers, exceed expectations and make every site a
reference site. We deliver our services with Pride, Professionalism and Passion.
DIGITALIZATION
Quant is focused on developing its current digital toolbox to expand into analytics and artiicial
intelligence. Our goal is to maintain our position at the forefront of digital technology for
industrial services.
Quant’s strategy is aimed at improving the group’s competitive edge and support
proitable growth.
OUR MISSION
Generate outstanding
customer value
through smart services, cost eiciency,
plant performance improvement in a
safe and sustainable way.
OUR VISION
Smart services for a
sustainable world
Smart services are services that are
delivered safely and eiciently, on
time every time.
9
VISION & MISSION
8
QUANT ANNUAL REPORT 2021 QUANT ANNUAL REPORT 2021
1110
OFFERING
Quant is a leader in the global industrial maintenance services
market, working in almost every industry. The core of our
value proposition consists of improving safety, creating
organizational equity, driving plant performance, and cost
alignment. The approach is to view the maintenance function
as a proit contributor, and not as a cost center, with Quant as
the partner driving this transformation.
Our partnership models are not one-size-its-all, they
are oered and tailored by combing Quant services and
contractual models in a way that suites each customer’s
unique needs, emphasizing shared risk and return, and
common objectives.
Generally, there two main categories of Quant - Customer
maintenance partnerships:
In the irst category, which can be seen as a form of business
process outsourcing, Quant takes on the maintenance
management responsibility for plant (“four walls” scope),
coupled with the provision of maintenance engineering,
planning & scheduling, and execution services. Maintenance
related material and sub-contracting can either go through
Quant’s books, or the customer’s. The pricing model is
either ixed price or cost-plus (or a combination of the two),
preferably combined with key performance indicator-based
beneit sharing model, for alignment of objectives.
In the second category are cases where the customer wants
to retain the maintenance management responsibility, Quant
focuses on maintenance execution for the plant, coupled
with team scheduling and team management, while most
engineering and planning remains with customer. Here the
commercial models are also always tailored to the speciic
customer situation.
Additionally, Quant can also take on smaller scope such
as maintenance of non-core processes and equipment
categories, such as utilities and facilities.
STEPS TO
SMART MAINTENANCE
OFFERING
SMART MAINTENANCE
Concepts & Tools
• Intelligence & Big data Analytics
• Multi-site maintenance optimization
• Advanced maintenance tools
PLANT PERFORMANCE FOCUSED MAINTENANCE
Concepts & Tools
• Predictive maintenance
• Reliability-centered maintenance
• OEE analysis
• Visualized & distributed maintenance KPIs, joint
reviews & planning
AVAILABILITY FOCUSED MAINTENANCE
Concepts & Tools
• Safety system
• 5S
• Preventive maintenance
• Root cause analysis
• Maintenance planning (MMMP)
• Maintenance management system (CMMS)
• Training and knowledge management
BASIC MAINTENANCE
Concepts & Tools
• Reactive maintenance
• Skilled maintenance professionals
• Regulatory maintenance
• Safety according to regulations
THE JOURNEY TO A PARTNERSHIP
Strong safety results, maintenance cost optimization and improved plant performance
A partnership starts with a review of the customer’s current maintenance maturity and their needs. Quant takes the customer on a journey by
putting basic maintenance such as skilled maintenance professionals and a good safety practice in place before moving up through availability
focused maintenance and plant performance focused maintenance to reach the goal of smart maintenance. This journey drives strong safety
results, maintenance cost optimization and improved plant eiciency.
FEASIBILITY STUDY BUSINESS CASE PARTNERSHIP
Preparation form
a hypothesis
• Customer and
Quant performs a
Engagement workshop
to form situation
based hypothesis for
improvement and
change of maintenance
operations
• Collection of quantitative
and qualitative data
• Audit maintenance
processes on site
• Interview key personnel
on site
• Benchmark performance
against Quant’s best
practice database
• Identify improvement
potential
• Safety
• Overall equipment
eiciency
• Reliability
• Overall Craft Eectiveness
• Cost optimization
• Finalize feasibility study
• Develop a business
case, often jointly with
dedicated customer
representatives
• Develop Quant’s
partnership proposal
• Present result of
feasibility study and
business case
• Organize a reference
site visit to an existing
Quant customer
• Present Quant’s
partnership proposal
to customer decision
makers
• Initiated partnership
development phase
• Sign maintenance
agreement
• Mobilize site and
initiate the journey with
Quant
Conduct study
on site
Develop business
case
Customer
presentation
Contract signing
and partnership
Quant go to site to review the state of
maintenance operations, operational
and nancial data. We identify
strengths and improvement potential
for both productivity and maintenance.
The outcome is benchmarked against
our database of feasibility studies
to nd a challenging but realistic
target for plant performance versus
maintenance spend.
Quant develop the business case,
often jointly with dedicated customer
representatives. The result of the
feasibility study and the business case
is presented to the customer. Often a
site reference visit is organized, where
a potential customer can visit and talk
to an existing Quant customer about
their maintenance journey with Quant.
A partnership proposal is presented to
the customer.
A letter of intent is signed. A
maintenance service agreement based
on Quant’s proposal is signed. The site
is mobilized, and the customer has
initiated the maintenance journey with
Quant.
OFFERING
QUANT ANNUAL REPORT 2021 QUANT ANNUAL REPORT 2021
1312
OFFERING
A LONGTERM MAINTENANCE PARTNERSHIP
WITH QUANT LEADS TO TANGIBLE RESULTS
Quant partners with customers for success – improving business as well as people and company culture
ENHANCED
SAFETY CULTURE
SAFETY
STEWARDSHIP
QUANT SMART MAINTENANCE
OPTIMIZED
COST
SKILLED
EMPLOYEES AND
LEADERSHIP
IMPROVED PLANT
PRODUCTIVITY
PROVEN
MAINTENANCE
PROCESSES
BETTER CONTROL
AND TRANSPARENCY
DIGITAL TOOLS AND
INTELLIGENCE
Outcome
Δ Decrease in
recordable
accidents
Δ Improved service
culture
Δ Optimization of
maintenance cost
Δ Increased preventive/
corrective
maintenance ratio
Δ Overall Equipment
Eectiveness (OEE)
increase
Δ Higher plant
availability
Δ Higher plant
performance
Δ Improved analysis and
monitoring of granular
data
Δ Reduction in
production downtime
Δ Increased customer
satisfaction index
(cNPS)
Tangible results
OFFERING
DIGITAL TOOLS FOR
OUTSTANDING PERFORMANCE
DIGITAL TOOLS SUITE
Digitalization is a key dierentiator between outsourced and
in-house industrial maintenance. The underlying technology is
developing very fast, making in-house development challenging.
Quant has the capability to identify, integrate and apply new
technology and solutions in an agile and cost-eicient manner.
Having a distinct and developed digital portfolio creates value
for both our customers and for Quant.
We are focused on developing our current digital toolbox to
expand into analytics and artiicial intelligence. Our goal is to
maintain our position at the forefront of digital technology for
industrial services.
quantEect
• Accurate and automatic
measurement of Overall Equipment
Eectiveness (OEE)
• Cloud-based solution with user
friendly interfaces, including on your
mobile
• Scalable from a single machine up
to multi-site production plants
• All industries supported
• Easy and quick implementation
quantWorx
• Improved operational eiciency
• Decreased administration activities
• Extended interface towards
operations
• Improved data management quality
• Convergence of information on a
single support
• Increased transparency
• Opportunity to detect and highlight
potentialities and new opportunities
quantPredict
• Cloud-based condition monitoring system
• Supports various sensor manufacturers
• Supports various sensor types (vibration,
pressure, temperature, current)
• Alarm limits for multiple machine health
parameters
• Automatic email notiication
• Automatic notiications to various maintenance
(CMMS) systems
• Running time-based maintenance support
quantNumbers
• In-depth analysis of operational and
business data
• Can be delivered to customers’
own business intelligence system
or viewed through Quant’s selected
software
• Complete key performance
indicator management
quantDrone
• Visual and thermal inspection of
various structures
• Early detection of structural issues
(structural integrity, corrosion)
• Improved asset reliability controlled
function deterioration
• Improved safety
quantShield
• Empowers the safety culture
• Gives instant information around
safety hazards
• Simpliies continuous improvement
and knowledge sharing
• Increased transparency and
performance management
13
QUANT ANNUAL REPORT 2021 QUANT ANNUAL REPORT 2021
1514
SAFETY  OUR
CHOICE
LTIR & TIR 2021
We expected 2021 to be the end
of the pandemic but during the
year we faced new restrictions
and recommendations at most
sites and countries where we
operate, which made us change
some procedures with regards
to safety. Before the pandemic
it was normal practice that the
company mangers made site
visits but that practice has been
restricted during the past two
years.
Due to this new scenario, we
implemented initiatives such as
the Quant Safety Week, which
was very much appreciated by
the organization, customers
and people who face risks
daily. The Quant Safety Week
has proven to be a unique
opportunity to approach safety-
related questions and issues
in a more playful way. Through
surveys, trainings, videos and
workshops we have gotten
closer to our sta. It is important
to remember that safety is not
only a number of rules and
restrictions as the topic covers
much more than that.
Although this activity does not
solve accidents at the root,
it does generate preventive
and awareness actions to
improve people’s behaviors in
terms of safety and health at
work. And it has allowed us to
generate knowledge that will
be replicated in actions in the
future.
In respect to the use of our
digital tools for safety, the use
of Quantshield increased, while
more people and leaders got
involved, reported and followed
up on threats.
We continue to work with Quant
Life Saving Rules, updating and
spreading them in dierent
sites. Quant Life Saving Rules is
a Quant Academy course that is
oered to all Quant employees.
We are not where we want
to be because our goal is
zero incidents, which has led
us to rethink the structure,
responsibilities, resources and
focus we want to have in safety,
because here in Quant, safety is
our choice.
SAFETY
QUANT LIFE SAVING RULES
Risk Assessment
Work Permit
Personal Protective
Equipment
Lock out - Tag out
Atmospheric Testing
Fall Protection
Hanging load
Moving Vehicles
Safe Driving
SAFETY
In May, we conducted Quant Safety Week 2021. In May, we conducted Quant Safety Week 2021.
This was a global event within Quant, aiming at This was a global event within Quant, aiming at
strengthening and improving our safety culture strengthening and improving our safety culture
even further to reach our target of zero accidents. even further to reach our target of zero accidents.
Having risk assessment as the main theme, Quant Having risk assessment as the main theme, Quant
employees participated in dierent activities related employees participated in dierent activities related
to safety during the entire week.to safety during the entire week.
At Quant safety is our choice, which means that At Quant safety is our choice, which means that
operations and safety are always interlinked and operations and safety are always interlinked and
that all of us share the belief that all injuries are that all of us share the belief that all injuries are
preventable. Moreover, our customers expect and preventable. Moreover, our customers expect and
demand a strong safety culture. Having safety as a demand a strong safety culture. Having safety as a
cornerstone in the development of our operational cornerstone in the development of our operational
processes is crucial!processes is crucial!
Quant’s maintenance team in Louisville, Kentucky, Quant’s maintenance team in Louisville, Kentucky,
have reached ive years without Lost Time Incidents have reached ive years without Lost Time Incidents
(LTI). Site manager Adam Finlay points out the (LTI). Site manager Adam Finlay points out the
strong safety culture, people empowerment and a strong safety culture, people empowerment and a
great team spirit as the keys to success.great team spirit as the keys to success.
The contract in Louisville, Kentucky started in 2017. In The contract in Louisville, Kentucky started in 2017. In
early 2022, the Quant maintenance team consisting of early 2022, the Quant maintenance team consisting of
25 employees celebrated ive years without Lost Time 25 employees celebrated ive years without Lost Time
Incidents (LTI)! Incidents (LTI)!
According to site manager Adam Finlay, this According to site manager Adam Finlay, this
achievement comes from constant education and achievement comes from constant education and
commitment to safety.commitment to safety.
- Since day one of this contract, we have always - Since day one of this contract, we have always
preached safety, walked safety, and talked safety. We preached safety, walked safety, and talked safety. We
stay completely up to date with all of our trainings, stay completely up to date with all of our trainings,
and it is basically about having a constant, ongoing and it is basically about having a constant, ongoing
discussion about safety, he says.discussion about safety, he says.
Safety is a team eort
Another key to the success is Another key to the success is
the strong safety culture on site, the strong safety culture on site,
coming from empowering the employees. Adam points coming from empowering the employees. Adam points
out the importance of having a group where each out the importance of having a group where each
individual dares to stop the work if noticing a potential individual dares to stop the work if noticing a potential
risk. risk.
- You have to give the employees empowerment, to let - You have to give the employees empowerment, to let
them know that if they see something unsafe, they can them know that if they see something unsafe, they can
and should bring it up. Everybody has the power to do and should bring it up. Everybody has the power to do
so, and whatever it is, it will be corrected. Everybody so, and whatever it is, it will be corrected. Everybody
knows that, and I think that helps a lot, he says.knows that, and I think that helps a lot, he says.
Being a relatively small group working closely together Being a relatively small group working closely together
has contributed to building a strong team spirit.has contributed to building a strong team spirit.
- This is a team eort. Nothing gets achieved without - This is a team eort. Nothing gets achieved without
everybody on board. And I am blessed to have this everybody on board. And I am blessed to have this
group as my team members, being able to achieve group as my team members, being able to achieve
these goals together, Adam says.these goals together, Adam says.
QUANT SAFETY
WEEK 2021
What can go wrong?
REACHING FIVE YEARS WITHOUT
LOST TIME INCIDENTS
NOTHING WILL GO WRONGNOTHING WILL GO WRONG
When you follow Quant Life Saving RulesWhen you follow Quant Life Saving Rules
0.43
0.55
0.52
0.53
0.58
0.62
0.63
0.68
0.64
0.69
0.66
0.71
1.01
1.14
1.16
1.18
1.23
1.25
1.30
1.28
1.17
1.22
1.11
1.17
0.20
0.40
0.60
0.80
1.00
1.20
1.40
2021/01 2021/02 2021/03 2021/04 2021/05 2021/06 2021/07 2021/08 2021/09 2021/10 2021/11 2021/12
LTIR TIR
QUANT ANNUAL REPORT 2021 QUANT ANNUAL REPORT 2021
1716
SUSTAINABILITY
Sustainability is an integral part of our strategy, exempliied
by various initiatives within Quant. As an example, in region
Americas, we have put a lot of eort in developing our
relations with the community through initiatives such as
educational projects and environmental campaigns.
It is important to understand that sustainability is not a trend.
As a company, we live with the communities in which we
operate and therefore, we must work together with them. It is
not about us as a company doing a favor to the community,
rather, it needs to be a “win-win”, that is, delivering new
opportunities to the communities where we operate and
recruiting new talents, people who want to work for us.
Safety is a top priority in our organization, so that we are
recognized by our customers and other stakeholders for
the importance we give to this matter. We are responsible
for protecting the people who work with us, and also,
for educating all stakeholders; employees, customers,
subcontractors, and ourselves, all with the aim of never stop
learning and developing the safety culture.
Safety is to a large extent the responsibility of each individual
and a result of people’s behavior. Therefore, we have placed
emphasis on carrying out a good process of selection of
personnel, not only focused on technical knowledge, but on
personal characteristics. As a service provider, our people are
our most valuable asset. Today, we cannot think that we have
employees, but rather, we as a company must be aware of
our great responsibility of taking care of the people who are
part of our organization. Our employees are not just numbers,
but dierent persons with dierent needs and wishes.
For more information about Quant’s sustainability work read
the 2021 Sustainability Report. The report can be found on
quantservice.com.
How a company operates in relation to ethical, social,
environmental and economic aspects should be fundamental
for any company. At Quant, sustainability is considered in
everything we do: how we design our services & oerings, how
we engage suppliers, how we assess risks and opportunities,
and how we interact in the communities where we operate.
We have deined processes which corresponds to key areas of
sustainability: Occupational Health and Safety, Environment,
Integrity and Business Ethics, and Quality. The Quant process
is aligned with the UN Sustainable Development Goals.
To further develop and improve as a company, we must
leverage the experiences and knowledge within our
global, diverse organization. We must survey the best
practices of our dierent regions and replicate them in
other places where we operate. While it is important
to continue learning and focus on best practices in
certain areas, we must also be innovative and show
respect for the dierent cultures within the company.
Regarding the environment, no matter how good our
processes are, there are always aspects to improve.
Protecting the environment means for instance saving
energy and natural resources and this is taken into
account in every aspect of our operations; from small
actions such as turning o the light when leaving an
oice to reviewing and improving our processes.
In conclusion, we are aligned with global sustainability
concepts and customer interests, and we are
determined to leave a positive impact on our people,
the environment, and the communities in which we
operate.
SUSTAINABILITY IS THE FOUNDATION
TO DEVELOP OUR OPERATIONS
PATRICIO IBARRA GOMEZ
Chief Human Resource Oicer (CHRO) and
Group Safety Manager
SUSTAINABILITY
Sustainability is core to Quant’s service oering. This means
that sustainability is considered in processes, methods and
policies. It is the basis for how we conduct business.
Our approach comes from our more than 30 years of
experience, and uses the skills and knowledge of our
employees, coupled with proven maintenance processes and
digital tools for our customers’ beneit. At every plant we want
to continuously improve safety, operational, environmental and
inancial performance.
We operate in close partnerships with our customers, some
spanning more than 20 years. These partnerships enable us to
make long-term plans for plant improvement and sustainable
solutions. This includes building up the safety culture,
optimizing maintenance cost, and improving production
eiciency.
People are at the core of our business
Our business relies on our passionate, professional, and proud
employees. We actively work to develop our employees’ skills
and know-how. Quant Academy, our learning platform, oers
a range of training sessions and programs for all employees.
In all our operating countries we ensure compliance with
local requirements and update our sta on the latest industry
standards.
We maintain a lat organization and we encourage open
dialogue between all levels in the organization. Our employees
are the ones improving our processes and systems, ensuring
that we ind practical and eicient, sustainable solutions for our
customers’ needs.
Reliability maintenance engineering contributes to
sustainability
Key to the reliability maintenance approach is understanding
how the plant operates. To increase plant reliability we review
everything from maintenance history to current maintenance
practices and operations. A maintenance plan is developed
and reined to support the journey towards improved technical
availability, plant performance, and energy eiciency. Reliability
maintenance also helps our customers extend the lifetime of
their plants and equipment. Planned preventive and predictive
maintenance contributes to cost and resource eiciency
by reducing equipment failures and corresponding repair
costs. This in turn helps to optimize inventory levels as well as
decreased environmental impact.
Plant performance improvement through digitalization
A continuous improvement of the customers’ plant
performance is integral to Quant’s maintenance partnership.
The basic elements include 5S (proper cleaning, housekeeping,
and organization) as well as RCA (root cause analysis), the latter
aimed at inding and eliminating repetitive faults and failures.
Overall, plant performance improvement aims at improving
the eectiveness of existing production facilities, resulting
in higher and better quality output, energy eiciency, and
reduced resource waste. We do this by focusing on improving
our customers’ overall equipment eectiveness (OEE) as well
as technical availability. This is achieved by systematically
identifying and eliminating losses, which reduces downtime,
increases average production rates, and improves yield and
output quality. The same approach applies to energy eiciency,
thus reducing emissions and waste.
Quant’s digital oerings provide a broad variety of tools, built in
proven methodologies and new technologies, which we adapt
and apply in order to generate customer value. We combine
leading maintenance practices with state-of-the-art digital tools,
such as quantEect™ and quantPredict™. The tangible outputs
of this approach include higher OEE and production output,
lower emissions, lower unit cost and added contribution.
Quality in operations through standardized approach
Quant group follows common policies such as our Code of
conduct, Occupational health and safety policy, Environmental
policy and Quality policy. We maintain standardized operational
processes and use quality assurance methods such as regular
internal audits, customer & employee feedback collection,
and resulting improvement actions, to ensure an eicient
and sustainable business. These processes contribute to the
overall development of our operational model, organization
and strategy. Moreover, most of Quant’s subsidiaries hold ISO
certiications.
SUSTAINABLE
QUANT
16
QUANT ANNUAL REPORT 2021 QUANT ANNUAL REPORT 2021
1918
QUANT AWARDS
2021
Quant is an entrepreneurial company and in order to be successful it is
essential that we all pull together and work as a team, helping wherever
it may be needed regardless of titles, hierarchy, or which part of the
organization an employee belongs to. The Quant Awards are a way in
which we celebrate individuals and teams that personify Quant values
and entrepreneurial spirit.
In the 2021 Awards, the following individuals and teams were
awarded for their work:
Keijo Setälä
– Exemplary Sustainability Behavior or Leadership
Eyvind Torsetnes
– Outstanding Customer Service
Terry Scott
– Best Collegial Support
Arindam, Somasundaram, George, Kedar,
Kumarappan, Vipul Anand
– Best Innovation of the year
Ricardo Perroni
– Growth Contributor of the year
PEOPLE & CULTURE
The purpose of Quant Academy is to educate our people with
professional and focused competence development programs.
People development is a commitment to our employees as well as to
our customers and other stakeholders, and one of the key initiatives in
our strategy. The Academy is in place to deliver on this commitment.
Quant Academy serves as a framework for our people to connect,
to learn, and to share knowledge and best practices. With its
oering Quant Academy is one of the key drivers of our Quant culture,
and hence contributes to a variety of topics such as leadership and
future talent development. The ultimate goal of the Academy is to
empower all our passionate and proud maintenance professionals to
deliver superior customer service.
QUANT
ACADEMY
- TO LEARN AND SHARE KNOWLEDGE
2021 was the second year of the global pandemic, and the majority
of our global training programs were carried out as virtual training
sessions. The shift to use digital tools to connect with each other
has worked well, and while taking virtual training courses on a variety
of topics our employees have also signiicantly improved their
computer and digital tools user skills.
In 2021 we successfully completed two Quant Site Management
training programs with over 50 trainees from many dierent
countries. A special highlight from this program is the interesting
and impressive course projects the trainees complete and present
at the end of the course; these projects truly demonstrate the talent
among our Quant colleagues!
One of the major milestones in Quant Academy during 2021 was to
implement a Learning Management System. The implementation
project was carried out with the support of our global and regional
HR teams, and during the second half of the year the irst e-learning
programs were rolled out from the system. The LMS supports us to
deliver focused and standardized training content for our employees
to study by themselves when most suitable for them. The new system
also supports us in getting better insight into people development
needs, and to further develop Quant Academy and its oering.
PEOPLE & CULTURE
Kristoer Granström is working
as a supervisor at one of Quant’s
sites in Finland. He enjoys his broad
and varied role but highlights his
colleagues and the strong team
spirit as the best things about the
job.
Kristoer Granström has worked at Quant
for about 20 years. During this time, he
has held several dierent roles, including
maintenance technician, welder, and team
leader. Today he works as a supervisor at
one of Quant’s Finnish sites.
- I really like my job because I rarely have
two identical working days. In addition,
we have an incredibly committed and
professional team working on this site, he
says.
And it is the team spirit and varied working
days that Kristoer thinks are some of the
biggest advantages about his job.
- One of the best things about this job is
that there are opportunities to move around
and solve dierent types of challenges on
dierent sites. It makes you develop in your
professional role.
”It says a lot about our
attitude and team spirit”
Already as a child, Kristoer was interested
in building and repairing things. His
grandfather worked as a supervisor in the
industry for over 40 years and Kristoer
was happy to visit him at work.
- He always said that it is important to be
honest, fair and to say how things really are
to the employees. To show appreciation
and give praise when things are going well,
and to give constructive feedback when
needed. That is the key to development,
says Kristoer.
His grandfather is a role model for
Kristoer, and he highlights that a company
cannot succeed without taking care
of its employees. The employees are a
company’s most important asset and that
is why Kristoer is happy to feel such a
strong team spirit among his colleagues on
the site.
- A good example is that we go to a local
café at 05:30 in the mornings to drink
coee together. To me, that says a lot
about the attitude and team spirit we have,
he says.
Pr
of
e
ss
i
o
n
a
l
Proud
Pa
ss
i
o
n
at
e
OUR CORE
VALUES
We are passionate
We are passionate about safety,
sustainability and reliability.
We are professional
We deliver smart services and
innovative solutions.
We are proud
We are proud to partner with our
customers for mutual success.
”To me, that says a lot
about the attitude and
team spirit we have.”
IT MAKES YOU
DEVELOP AT WORK”
”
18
QUANT ANNUAL REPORT 2021 QUANT ANNUAL REPORT 2021
2120
AMERICAS
We are in the second year of the Pandemic,
still with restrictions and quarantines that have
consequences in our business. In Americas,
we can be proud of the ability we have had to
adapt to these new circumstances. The way we
work, we live, and travel changed 180 degrees.
However, we have found the way to continue
growing and searching for opportunities.
In fact, during 2021, we celebrated the signing
of new contracts, Gala in the United States, Vale
Vitoria and Vale Itabira in Brazil, CAP in Chile;
and we were also conducting feasibility studies
for new business leads.
Safety has always been in our DNA, and we have
demonstrated our commitment to reach the
highest standards for health and safety on our
operations. All the eorts have been worthwhile,
we have reached records in days without Lost
Time Incidents (LTI) in many contracts in the
region. We have also been recognized by our
clients and various institutions for our safety and
occupational health standards.
We have shown how we value our employees,
training our teams in the Implementation of
ISO Standards 9001:2015ISO 14001:2015ISO
45001:2018, which was held simultaneously
in USA, Peru, Mexico, and Chile. Moreover we
launched a new program of education in a
variety of areas related to the business, aiming
to reduce knowledge gaps, and giving technical
knowledge to our people.
In terms of sustainability, we have shown
our passion in making a positive impact in
the places where we work: technical days,
internships, solidarity campaigns to help and
support the communities we work in, with great
results and a real beneit to society. We are also
aware of the climate crisis, which is why we are
always improving our processes, trying to ind
solutions in energy saving and reduction in the
use of plastic as well as other type of initiatives.
We will continue to work hard to reach the
inancial goals we have set, to continue with the
great teamwork we have, and go on with the
good practices that enable us to continue being
leaders in the market.
SEGMENTS
QUANT ANNUAL REPORT 2021
20
SEGMENTS
KEUR 2021 2020
Net sales 39,249 42,512
Operating profit (loss) 1,383 1,647
Adjusted EBITDA 1,762 2,177
Adjusted EBITDA % 4.5% 5.1%
NET SALES
EBITDA & EBITDA MARGIN
Net sales 2021 decreased to EUR 39.3 million, from EUR 42.5 million prior
year, due to two lost contracts in Chile and one in Mexico, partially oset
by new contracts and higher upsell in running contracts.
Adjusted EBITDA 2021 was EUR 1.8 million compared to EUR 2.2
million prior year. This is a result of increased gross profit due to new
contracts and demobilization cost prior year, oset by higher general,
administration and sales expenses. General, administration and sales
expenses last year were lower due to positive adjustments as part of the
transformation program. Additionally, the increase in overhead costs is
a result of investments in sales.
AMERICAS
In December, Quant Quality Engineer Constanza
Matus was chosen as one of the 100 Inspiring
Women in Mining 2021 by the NGO Women in Mining.
Constanza, who is working at our Andina site in Chile,
was recognized in the Emerging Talent category for
her work to improve the warehouse system in the
Andina underground mine.
By implementing a solution to keep better track of warehouse
changes, time is saved both in the daily work but also in general, as
inventory is now done automatically.
- More than saving time, this also improves the communication and
handover between dierent shifts. Everyone has easy access to the
information needed, which I think is the biggest beneit with this,
Constanza says.
“This is the best job can have“
When studying at the university, Constanza was one of ten female
students out of a total of one hundred mining students. Back then,
she followed Women in Mining and got inspired by the awarded
women. Now, whe is one of them.
- I am really happy, and I am so proud! Every year, I saw these women
with their prizes and wanted to be one of them. And now I am, she
says.
- Seeing them inspired me, and now I hope I can inspire others to join
the mining industry!
Working as a Quality Engineer at the Andina site is a varied job. That
is one reason to why Constanza loves her role – and why she would
recommend others to join the industry as well.
- I see dierent things every day. Every day is an adventure, this is the
best job you can have, she says.
- It is like a dierent world. When you enter the mine, you enter a
dierent world!
Increasing eciency in the underground mine’s
warehouse system
-
10,000
20,000
30,000
40,000
50,000
2020 2021
KEUR
Net sales
0%
2%
4%
6%
-
500
1,000
1,500
2,000
2,500
2020 2021
KEUR
Adjusted EBITDA EBITDA Margin (%)
QUANT ANNUAL REPORT 2021 QUANT ANNUAL REPORT 2021
2322
SEGMENTS
QUANT ANNUAL REPORT 2021
EUROPE &
MIDDLE EAST
Entering into 2021 Quant Group adjusted
the regional split and region Europe and
Quant Gulf merged and formed the new
region Quant Europe and Middle East.
Europe - the year in short:
Year 2021 started with two new contracts in
the contract portfolio. Contracts with Alcoa
in Norway and with Spaljisten in Sweden
were started in December 2020, but the
real start was in the beginning of 2021.
Start-up with these new contracts became
challenging, in particular because of travel
restrictions due to Covid-19. Especially in
Norway we have had delays in the startup
which has aected our inancial results
during 2021.
Safety is and has been in focus during the
year. Extensive eorts and attention were
put on preventive safety actions and last
minute risk assessments during the year.
At the end of April, we in the region joined
a global Safety week where all employees
were involved in several preventive safety
trainings and information sessions. Many
units in the Region Europe have had several
thousand days without incidents. As a
company and as a region, we aim for zero
incidents. However, during 2021 there were
nine recordable accidents in the region.
Covid-19 impacted our business in Europe
during 2021. We had a higher sick leave
percentage than in earlier years and we
needed to temporarily replace those
technicians on sick leave particularly during
the Spring of 2021, which resulted in added
expenses.
It has also been diicult to meet with new
and existing customers because of the
pandemic but we nevertheless succeeded
to win two new contracts and renew all
contracts which were up for renewal.
Contract renewals are the evidence
that Quant’s services bring value to our
customers and that the Quant partnership
concept is a successful solution. When
it comes to new sales one of the new
contracts was a second contract with an
already existing customer who was ready
to scale up the partnership. Such second
contract wins are conirmation of good
existing customer relations.
Middle East - the year in short:
Safety and sta wellbeing is and has been
in focus during the year. Extensive eorts
and attention were put on preventive safety
actions; as a Company and business unit
we are committed to reach zero incidents.
Covid-19 restrictions continued to impact
our business in the Middle East particularly
due to the strict isolation requirements
for those in close contact with aected
individuals. There were no serious health
incidents related to Covid-19 in the Middle
East.
The year started with a mobilization and kick-
o of a contract to operate and maintain two
district cooling plants – this was a strategic
move considering the potential size of the
market for similar services.
During 2021 we had a change in
management when the incumbent general
manager retired. This created a few
months gap in sales and pipeline building,
also impacted by the fact that business
development activities were restricted to
remote communications. During the last
quarter of 2021 we focused on re-building
the sales pipeline based on new and existing
opportunities.
Quant Middle East delivered stable and
good inancial results with proitability in
line with the planned budget.
The Region:
In region Europe and Middle East, we
employ around 600 people in seven
dierent countries. Our customers are
located throughout the region where
we have several partnership contracts
stretching back many years in time.
Through smart services and cost eiciency,
we strive to generate outstanding customer
value in our partnerships and to improve
plant performance in a safe and sustainable
way.
We always tailor our oerings and business
model to meet and exceed our customers’
expectations. As a global leader in industrial
maintenance, we have the resources and
experience needed to deliver world-class
services to our customers.
22
NET SALES EBITDA & EBITDA MARGIN
EUROPE & MIDDLE EAST
KEUR 2021 2020
Net sales 66,882 60,162
Operating profit (loss) 3,523 5,607
Adjusted EBITDA 3,657 5,856
Adjusted EBITDA % 5.5% 9.7%
Net sales 2021 increased to EUR 66.9 million, from EUR 60.2 million last
year, due to a new Norwegian contract, partially oset by contracts prior
year, change in scope and lower upsell on existing contracts.
Adjusted EBITDA 2021 was EUR 3.7 million, down from EUR 5.9 million,
due to lower than expected profitability in a Norwegian contract caused
primarily by eects by the pandemic, and contracts lost prior year.
SEGMENTS
When it unexpectedly got much colder than normal
and started snowing in Spain, it caused problems at
one of our customers’ sites. By being innovative and
using the quantDrone, we found a way to support
our customer in a safe and eicient way.
The city of Toledo is located in central Spain, about an hour from
Madrid. Snow is not very common here, so when there was a heavy
snowfall in January 2021 it made the situation diicult. One of many
aected was our customer, as the snow and cold weather caused
some equipment to break down. Using quantDrone, we could
safely and eectively help our customer make inspections at height
despite the challenging situation.
– The equipment was at a high level, making it diicult and risky
to access. Therefore, we decided to use this digital tool, the
quantDrone, says Rodrigo Souza, Reliability Engineer at Quant, who
together with Quant Site Manager Igor Marzolla took initiative to
start using the drone at site.
Positive feedback from the customer
Rodrigo sees several advantages with using the drone for
maintenance tasks as this is a safe way to work, but also cost-
eective.
– It reduces the risk of accident as we do not need to work at high
levels ourselves. But using the drone can also reduce costs, as we
do not have to rent extra equipment for working at elevated levels.
The quantDrone is a relatively new tool on this site. But Rodrigo
believes that there are many situations in which the drone can
be useful. At other Quant sites, it has for example been used to
inspect machines that are spread out over a large area, as well as for
inspecting conined spaces. After starting to use the quantDrone at
the site in Spain, the customer feedback has been positive.
– When we used it to inspect a cooling tower, the customer was
very impressed of how quickly we could ind the problem and start
working on a solution, Rodrigo says.
– The light time is generally around 10 minutes. But before and after
the light we need to do an inspection of the drone, to make sure it
is not damaged in any way. It is very important that we can always
perform a safe light.
Safe and cost-eective inspections using quantDrone
0%
2%
4%
6%
8%
10%
0
2,000
4,000
6,000
2020 2021
KEUR
Adjusted EBITDA EBITDA Margin (%)
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2020 2021
KEUR
Net sales
QUANT ANNUAL REPORT 2021 QUANT ANNUAL REPORT 2021
2524
FINLAND &
BALTICS
Safety is and will remain our irst priority, and successful
implementation of Quant Lifesaving rules certiication and positive
development in preventive safety measures in general, are both
concrete evidence of this. At the end of April, we in the region joined
a global Safety week where all employees were involved in several
preventive safety courses and information sessions. However, the
actions taken above are not yet translated into lower incident rates,
which were on a similar level as in 2020 with 16 incidents in 2021. The
work towards zero incidents continues.
Our operations were still impacted by Covid, but we have managed
to ind a way to operate eectively despite not being able to travel
and meet customers and our own employees as frequently as we
would have liked to. Fortunately, we had no serious illnesses, but
still needed to temporarily replace technicians on sick leave or
quarantine, which resulted in some added costs.
Sta wellbeing and improved employee engagement was raised as
another focus area last year, and to support this, several leadership
and competence development programs were introduced. We also
did some organizational ine-tuning with deployment of an area and
account management model, as well as strengthening of the sales
team and development function for digital tools and oering. During
2021 the region had a change in management, when a new Region
Manager was introduced in August.
During 2021, we saw a step change improvement in customer
satisfaction, with the main drivers being safety and quality of the
services we provide. This is a result of successful execution of
operations improvement programs and alignment of targets with the
customers. Together with improved cost control practices, this was
also imperative for proitability improvement for the whole region.
Quant Finland & Baltics region delivered stable inancial results with
proitability somewhat improved compared to 2020.
Markets for outsourced maintenance were rather quiet, with focus
being mid- and long-term sales pipeline development. The fact
that business development activities were restricted to remote
communications, made new sales eorts rather challenging.
Nevertheless, we still managed to sign a Total Maintenance
Partnership agreement for BASF Battery Chemical Plant in Harjavalta,
and are now in the process of securing successful ramp up of the
operations. This is a strategic agreement considering the potential
size of the future battery market and greenield projects being
planned in the region.
We also had great success with contract renewals with nine out of
ten contracts up for renewal. Contract renewals are evidence that
Quant’s services bring value for our customers and that the Quant
total maintenance partnership concept is a successful solution.
Nevertheless, we do realize the market is shifting and that customers
have various needs, and we need to adjust our value proposition
accordingly.
24
SEGMENTS
QUANT ANNUAL REPORT 2021
KEUR 2021 2020
Net sales 58,304 60,822
Operating profit (loss) 2,181 1,283
Adjusted EBITDA 2,479 1,817
Adjusted EBITDA % 4.3% 3.0%
NET SALES EBITDA & EBITDA MARGIN
Net sales 2021 decreased to EUR 58.3 million, from EUR 60.8 million,
due to exited contracts and change in scope for one contract. This was
compensated by upsell in certain contracts and revenue from one new
contract.
Adjusted EBITDA 2021 was EUR 2.5 million, up from EUR 1.8 million,
as many contracts increased profitability due to good contract
management and mutually beneficial discussions with customers.
FINLAND & BALTICS
SEGMENTS
Maintenance partners Quant and Oras Oy have Maintenance partners Quant and Oras Oy have
already cooperated over ten years regarding the already cooperated over ten years regarding the
production plant in Rauma, Finland. During the years, production plant in Rauma, Finland. During the years,
we have succeeded to improve several dierent we have succeeded to improve several dierent
areas to make the production more eicient. Strong areas to make the production more eicient. Strong
trust and open discussion have made this mutual trust and open discussion have made this mutual
success story possible.success story possible.
Quant and Oras Oy signed a new agreement at the end of 2021, and
the development of the maintenance function will continue in close
cooperation at the Rauma plant. During the years, our mutual success
can be seen in terms of for example optimized maintenance costs and
increased technical availability.
- During our long maintenance partnership, we have succeeded to make
signiicant improvements in technical availability, and nowadays we
are turning our focus more and more to the quality of the productivity.
When things move forward together, it enables common development
and success. We can truly talk about our cooperation as a maintenance
partnership, says Jari Laksi, Site Manager, Quant Finland Oy.
A step towards modern maintenance
Quant and Oras Oy share the same values, and safety is always priority
number one. This can be seen from the numbers and reports related to
safety, and how safety is considered in the discussions.
- Our team actively take preventive safety actions to make continuous
improvements. Several years have passed since the last accident
resulting in absence at our site, which shows that we genuinely take
care of each other, says Laksi.
He continues:
- We have built a great foundation for the future development of
maintenance, and now we are able to take the proactive and predictive
maintenance to the next level together with the customer.
- Our cooperation is a true maintenance partnership. During the coming
years, directing maintenance to suit the changing factory environment
will play an important role, says Janne Nieminen, Plant Manager, Oras
Oy.
Mika Puontila Development Director, Quant Finland:
- The new agreement is a great sign of a strong and long-lasting
maintenance partnership between Quant and Oras Oy. In the coming
years, Quant will focus on the areas of safety, a cost-eective and lexible
service, as well as on the development of expertise and the integration
of digital maintenance solutions.
Strong maintenance partnership leads to increased
production eciency
KEUR
Net sales
0%
1%
2%
3%
4%
5%
0
500
1,000
1,500
2,000
2,500
3,000
2020 2021
KEUR
Adjusted EBITDA EBITDA Margin (%)
QUANT ANNUAL REPORT 2021 QUANT ANNUAL REPORT 2021
2726
CONTRACT PORTFOLIO
CONTRACT PORTFOLIO
At 31 December 2021, Quant had 77 sites in operation worldwide. A
standard contract has a duration of three to ive years, usually with
extension possibilities after the initial period. In outsourced main-
tenance, changes to the contract portfolio are a natural part of doing
business, as contracts are won and lost. New contract wins and losses
of existing contracts do not coincide in the short term, whereby it is
necessary to consider the long-term trend. Contracts with annualized
net sales of EUR 42.3 (45.2) million are scheduled for renewal during
2022.
During 2021 eight new contracts with annualized net sales of EUR 23.5
million were won, six contracts were renewed with decreased scope of
EUR 0.4 million, and ive contracts were lost or exited with annualized
net sales of EUR 3.0 million. The combined eect of these changes,
including contracted scope changes and exchange rate eects,
amount to an increase in the contract portfolio annualized net sales
of EUR 32.3 million to end of period annualized run rate of EUR 172.8
(140.5) million.
2020
Contract
Portfolio
Won
contracts
Exited
contracts
Lost
contracts
Renewed
contracts
Change in
existing
2021
Contract
Portfolio
140.5
-1.6
172.8
+23.5
-0.4
-1.4
+12.2
MEUR
QUANT ANNUAL REPORT 2021
EXECUTIVE MANAGEMENT TEAM
Anders Karlsson
GENERAL COUNSEL
Nationality: Swedish
Location: Sweden
Qualiications/Education:
Considerable experience from
corporate and commercial law
matters, including both public
and private debt inancing, most
recently from White & Case LLP.
Master of Laws and Bachelor
of Science in Business
Administration.
André Strömgren
CFO
Nationality: Swedish
Location: Sweden
Qualiications/Education:
Long experience from inance
positions (treasury, investor
relations) in international
companies within E&P Oil & Gas,
White Goods and Pharmaceuticals.
BSc in Business Administration and
Economics.
Maja Robertsson
CHIEF DIGITAL OFFICER
Nationality: Swedish
Location: Sweden
Qualiications/Education:
Broad experience from digital
strategy development and
execution at management level in
various industries.
Bachelor Degree in Computer and
Systems Sciences.
Pekka
Venäläinen
REGION MANAGER
EUROPE & MIDDLE EAST
Nationality: Finnish
Location: Sweden
Qualiications/Education:
Broad experience in industrial
customer relations, business
development and maintenance
management. 27 years in ABB.
BSc in Industrial Automation.
Business Administration, General
Management.
EXECUTIVE MANAGEMENT TEAM
Tomas Rönn
CEO
Nationality: Finnish
Location: Sweden
Qualiications/Education:
Extensive international
experience in industrial
business development, sales
and operations with Wärtsilä,
most recently as Vice President
Americas for Energy Business
based in Houston, Texas.
BSc, Electrical and Electronics
Engineering
Sebastian
Storbacka
REGION MANAGER
FINLAND & BALTICS
Nationality: Finnish
Location: Finland
Qualiications/Education:
Broad global experience in
mining and metals business
management, sales and services
with Metso Outotec, most
recently as Vice President for Plant
Solutions Business.
MSc, Process and Chemical
Engineering.
Maximiliano
Aqueveque
REGION MANAGER
AMERICAS
Nationality: Chilean
Location: Chile
Qualiications/Education:
Metallurgical Engineer, has more
than 18 years of experience in
mining and minerals industry,
including overseas assignments in
dierent industries.
MBA.
Patricio Ibarra
Gomez
CHIEF HUMAN RESOURCES
OFFICER & SAFETY MANAGER
Nationality: Chilean
Location: Chile
Qualiications/Education:
Industrial Engineer, has more than
18 years of experience in mining
and service industry, including
overseas assignments in dierent
industries.
Master in Safety and Quality
systems MBA.
27
QUANT ANNUAL REPORT 2021 QUANT ANNUAL REPORT 2021
2928
BOARD OF DIRECTORS
Casper Lerche
Germany
Has been a member of the
board of the Company
since 2018.
MSc in Finance and Accounting,
Copenhagen Business School.
Joakim Havby
Sweden
Has been a member of the
board of the Company
since 2022, as employee
representative.
Pierre Schöld
Sweden
Has been a member of the
board of the Company
since 2021, as employee
representative.
Henrik Sandréus
Sweden
Has been a member of the
board of the Company
since 2019.
MSc in Industrial Engineering
and Management, Linköping
Institute of Technology.
Mikael Norin
USA
Has been a member of the
board of the Company
since 2015 and is also the
chairman of the board.
BSc in Business Administration
and Economics, Lund University.
Olof Faxander
Sweden
Has been a member of the
board of the Company
since 2017.
MSc in Engineering, Swedish
Royal Institute of Technology, B A
Economics, Stockholm University.
Per Hallius
Sweden
Has been a member of the
board of the Company
since 2015.
MBA, Harvard Business School,
MSc in Economics and Business
Administration, Stockholm
School of Economics.
QUANT ANNUAL REPORT 2021
BOARD OF DIRECTORS
External governance systems
The external governance systems that constitute the framework for
corporate governance at Quant consist primarily of the Swedish
Companies Act, the Swedish Annual Accounts Act, the Luxemburg
Stock exchange rules and regulations, as well as other applicable
regulations and relevant legislation.
Internal governance systems
The Articles of Association adopted by the shareholders, the Quant
Charter of the Board of Directors adopted by the Board, the instructions
for the CEO and the instructions for the Board Committees constitute
the key internal governance systems. The People Committee sets the
remuneration for the CEO, the management team and oversees the
overall remunerations of the group. The Commercial Sign-o Committee
reviews and decides on larger contract pursuits and negotiations. The
Finance and Audit Committee prepares matters relating to inance
and audit. In addition to this, the Group has a number of policies and
instructions with rules and principles for the Group’s operations and
employees, for example, the Code of Conduct, Anti-Bribery Manual,
Competition Manual, Data Protection Manual, Trade Sanction Manual,
Whistleblowing Policy and the Insider Policy.
Quant Articles of Association
Quant Articles of Association were adopted at an Extraordinary
General Meeting on November 28, 2017 and were registered at the
Swedish Companies Registration Oice on the same date. In Quant’s
Articles of Association, there is no limitation on how many votes each
shareholder can represent at a general meeting. On the Annual General
Meeting (AGM), the shareholders’ elect the board of directors. Between
AGMs, Extraordinary General Meetings can be held to elect new board
members. Any General Meeting will be summoned at least 2 (two) and
no more than 6 (six) weeks before the meeting, including for changes
of the Articles of Association. Summoning is made by post. There is no
outstanding delegation to the board to issue or acquire own shares.
Shareholders
Quant’s shares are privately held. All shares are of the same type and
have equal rights in every respect. Quant AB is owned by Cidron FS
Holding AB. The group’s parent company is Cidron FS Top Holding AB,
which owns 100% of the shares in Cidron FS Holding AB. The ultimate
beneicial owner of Cidron FS Top Holding AB is Nordic Capital Fund VIII.
Quant AB (publ) (Quant, or “the Company”) is a Swedish public company, with privately held shares, and a senior and a junior bond listed on
Bourse de Luxembourg (the Luxemburg Stock Exchange). Corporate governance is primarily regulated by the Swedish Companies Act and
other Swedish legislation and by Rules and Regulations of the Luxemburg Stock Exchange.
QUANT AB (publ) CORPORATE
GOVERNANCE REPORT
CORPORATE GOVERNANCE REPORT
The Quant corporate governance structure
Stakeholders
General Meeting
Board of Directors
Commercial Sign o
Committee
External
auditor
People
Committee
Finance and Audit
Committee
CEO
Management team
28
QUANT ANNUAL REPORT 2021 QUANT ANNUAL REPORT 2021
3130
Engagement and responsibility
It is the board of directors who is responsible for the corporate
governance statement for the year 2021 (the inancial year 2021) on
pages 2930 and that it has been prepared in accordance with the
Annual Accounts Act.
The scope of the audit
Our examination has been conducted in accordance with FAR’s
auditing standard RevR 16 The auditor’s examination of the corporate
governance statement. This means that our examination of the
corporate governance statement is different and substantially less
in scope than an audit conducted in accordance with International
Standards on Auditing and generally accepted auditing standards
in Sweden. We believe that the examination has provided us with
suficient basis for our opinions.
Opinions
A corporate governance statement has been prepared. Disclosures
in accordance with chapter 6 section 6 the second paragraph points
26 the Annual Accounts Act and chapter 7 section 31 the second
paragraph the same law are consistent with the annual accounts
and the consolidated accounts and are in accordance with the
Annual Accounts Act.
Stockholm, April 28, 2022
Öhrlings PricewaterhouseCoopers AB
Nicklas Kullberg
Authorized Public Accountant
Auditor’s report on the Corporate Governance Statement
To the general meeting of the shareholders in Quant AB (publ), corporate identity number 556975-5654
Internal control of the inancial reporting
The Board of Directors is responsible for establishing fundamental rules
and guidelines for internal control. The Finance and Audit Committee
(the “Committee”) is appointed by the Company’s Board of Directors,
with the task of preparing matters relating to inance and audit,
monitoring the work of the auditors and the Company’s internal control
systems, monitoring the current risks (Operational, Legal / Regulatory
/ Policy and Financial), follow-up of external audits and the Company’s
inancial information, reviewing and approving the Company’s quarterly
reports for Q1 and Q3, reviewing integrity cases and other issues the
Board assigns the Committee to prepare. The Board of Directors and the
inance and audit committee interact directly with the external auditors.
The Board of Directors is overall responsible for establishing fundamental
rules and guidelines, and the CEO is ultimately responsible for the
eectiveness, implementation and supervision of monitoring of the
internal control environment within the Group. The CFO is responsible
for the operational eectiveness of the internal control environment
within the Group. At a local level, the regional managers and regional
controllers are responsible for the internal control.
Financial reporting competencies
The Group Management Team and local management teams ensure
that the company has employees with the right competency in all key
inancial positions and that there are procedures in place to ensure that
employees in key inancial positions have the requisite knowledge and
skills.
Reporting routines
The inancial reporting should provide suicient, up-to-date and reliable
information of a inancial and non-inancial nature. As far as possible,
management reporting is directly linked to the inancial reporting and
to the consolidation tool.
Local management and accounting teams report their inancial results
and key performance indicators (KPIS) monthly and in accordance with
the Group’s accounting and reporting policies. This reporting is the
basis for Quant’s internal and external reporting and serves as a basis
for legal and business reviews. The business reviews, in the form of
monthly inancial and operational reviews, are carried out according to
a structure in which sales, earnings, cash low and other key measures
and trends of importance to the Group are compiled and form a basis
for analysis and actions by the management and controllers at dierent
levels. Other important and group-wide components of the reporting
routines are the annual budgeting process, the quarterly forecasting,
and the weekly cash low forecast process.
To ensure the eiciency of internal control over inancial reporting,
reviews are carried out by the Board, the audit committee, the CEO,
the Group Management Team, the central inance and treasury team
and the Group’s various subsidiaries. Every month, inancial reports are
reviewed against budget and established targets and risks related to the
inancial reporting are assessed.
Basis for inancial reporting risk assessment
• Existence; reported assets and liabilities exist on the reporting date.
• Completeness; all transactions during the reporting period are
recorded and reported.
• Rights and obligations; Assets are the rights of the organization
and the liabilities are its obligations as of a given date.
• Valuation and allocation; all items in the inancial reporting are
reported in conformity with IFRS valuation principles and are
correctly calculated and summarized and appropriately recorded.
• Presentation and disclosure; items in the inancial reports are
properly described, sorted and classiied.
CORPORATE GOVERNANCE REPORT MANAGEMENT REPORT
MANAGEMENT REPORT
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Quant is a supplier of industrial maintenance services and
is the global leader within the area. The business currently
operates in 17 countries in its continuing operations. The
service is linked to the customers’ production facilities and
the offer includes proven maintenance processes and
maintenance expertise, safety and digital tools, which
results in improved productivity at an optimized cost of
maintenance safety and transparency.
As of 30th of December 2014 Nordic Capital (“Nordic
Capital Fund VIII”) acquired the business unit ABB Full
Service from ABB. In connection with the acquisition, ABB
Full Service changed name to Quant. This is the seventh
year Quant operates and the eighth financial year for Quant.
On 24 June 2014, Quant AB was formed with its registered
office in Stockholm. The company is responsible for
headquarter functions for the group and includes group
management as well as group-wide functions. Quant AB is
owned by Cidron FS Holding AB. The group's parent
company is Cidron FS Top Holding AB, which owns 100% of
the shares in Cidron FS Holding AB. The acquisition from
ABB took place on 30 December 2014 when Quant AB
acquired all the shares in ABB FS holding Sweden AB. A
company in the United States were also created, which took
over the service business in the American market. After the
acquisition, ABB FS Holding Sweden AB was renamed
Quant Sweden Holding AB.
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All reported figures refer to continuing operations unless
otherwise stated.
Net sales amounted to EUR 164.4 (163.5) million. The
increase was due to new contracts in Europe & Middle East
and Americas and increased scope in certain contracts in
region Americas. The increase was offset by lost contracts,
and contracts with decreased scope. Organic growth was
flat. Gross profit for the year was EUR 21.2 million, up from
EUR 19.5 million last year. The impact from changes in
currency rates were EUR 0.2 million compared to EUR -2.0
million last year. The gross profit was positively impacted
by start-up of new contracts and improved performance on
existing contracts in region Finland & Baltics which was
somewhat offset by decreased profitability in region
Americas and Europe & Middle East, lost contracts and
change in scope of certain existing contracts.
Operating loss for year was EUR -2.8 million, compared to a
loss of EUR -3.7 million prior year due to the positive change
in gross profit offset by higher general, administration and
sales expenses. General, administration and sales expenses
last year were lower due to adjustment as part of the
transformation program. Additionally, the change in
overhead costs is a result of increased cost connected to
start-up of larger new contracts, and investments in sales
partially offset by lower management costs as one regional
manager position was open for the first half of the year.
Adjusted EBITDA, excluding the impact from IFRS 16, for the
full year was EUR 7.2 million, up from EUR 7.0 million prior
year due to due to higher gross profit, partially offset by
higher general, administration and sales expenses. In
constant currency the adjusted EBITDA was EUR 7.3 (7.0)
million.
Financial items amounted to EUR -14.1 (-16.2) million. The
improvement compared to the previous year is primarily
due to a net positive impact from revaluations of internal
loans to subsidiaries from foreign exchange rate
fluctuations during the period.
Net loss for the year amounted to EUR -15.5 million
compared to a loss of EUR -18.1 million prior year due to
higher gross profit and lower financial expenses.
Cash flow from operating activities in 2021 amounted to
EUR -1.8 (7.7) million. Change in working capital was EUR -
3.1 (3.2) million. The negative change in working capital was
due to a decrease in current liabilities during 2021, while
change in working capital prior year was positively
impacted by the collection of trade receivables originating
in 2019.
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Interest-bearing liabilities after deduction of financing
costs, and excluding lease liabilities, amounted to EUR
144.9 (144.9) million. Net debt excluding the impact of IFRS
16 implementation amounted to EUR 135.3 (123.5) million,
whereas Net debt with IFRS 16 effects included (Net Debt
IFRS 16) amounted to EUR 138,7 (128.3) million. In the first
quarter of 2020 a EUR 9 million draw on the revolving
working capital facility was made. Given the uncertainties
brought by the coronavirus pandemic to general business
and the financial markets during the first quarter 2020, the
decision was taken to secure significant liquidity as a
precaution. In October 2020 Quant repaid EUR 5 million of
the drawn amount of the revolving working capital facility.
With EUR 21.4 (13.2) million in cash and bank at the end of
the year the Group had a good liquidity position and an
additional EUR 9 million of the drawn amount has been
repaid in the first quarter of 2021. On 31 December 2021 the
amount drawn on the revolving working capital facility
amounted to EUR 4 million compared to EUR 11 million prior
year.
QUANT ANNUAL REPORT 2021 QUANT ANNUAL REPORT 2021
3332
MANAGEMENT REPORTMANAGEMENT REPORT
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The Adjusted EBITDA for discontinued operations 2021 was
EUR -0.9 (-0.8) million and net loss was EUR -7.4 (-0.3)
million. The change in net loss for discontinued operations
compared to the previous year was due to a write down of
intangible assets.
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Net Sales
165.4 171.2 204.7 197.7 186.1
Operating
profit/loss
-10.2 -4.6 -18.4 -7.2 -5.9
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FTE
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On 1 January 2021, Quant’s organizational structure was
changed. United Arab Emirates, previously reported in
segment Rest of World, is now included in segment Europe
& Middle East. Quant has taken the decision to exit China,
therefore China, previously reported under segment Rest of
World, is reported in segment Other and reported as
discontinued operations.
On 29 March 2021 it was announced that Quant has signed
a six-year maintenance service contract with Exalmar, a
leading company in the fishing industry in Peru, for
maintenance execution at multiple plants. During the first
year of the contract, starting 1 December 2020, Quant will
review the current maintenance operations and prepare for
full responsibility for maintenance execution. Starting
2022, Quant will be fully responsible for maintenance
execution. The contract increased Quant’s contract
portfolio by EUR 12 million.
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On 8 February 2022 it was announced that Quant had
signed a renewal of an existing Total Maintenance
Partnership with Metsä Wood. The agreement covers
industrial maintenance on five production sites in Finland
and Estonia. The agreement renewal contains scope
changes beneficial to both parties, which increase Quant’s
contract portfolio by EUR 2 million in the first quarter of
2022.
On 24 March 2022 Quant AB (publ) announced, as part of
an initiation of a written procedure in respect of its senior
bonds, that Permira Credit Solutions II Master Sub S.A.
(“Permira Credit”), the holder of the junior bond, and Nordic
Capital, the current majority owner of Quant, have agreed
in principle to a conditional agreement under which
Permira Credit is expected to become the new majority
owner of Quant. Nordic Capital is expected to remain as a
minority shareholder. The agreement between Permira
Credit and Nordic Capital is conditional upon, amongst
other things, agreements and consents relating to an
extension and reduction of the existing super senior
revolving credit facility, and is subject to formal approval of
merger filings with competition authorities. Permira Credit
will, as part of the agreement with Nordic Capital, provide
EUR 10 million of new capital as a cash injection on the
balance sheet. Amounts corresponding to the junior bond
and certain shareholder loans will, in time, also be
capitalized resulting in releases of these debts.
In the written procedure the holders of the senior bonds
were requested to approve, inter alia, (i) an unconditional
extension (the “Interim Amendment”) of the terms of the
senior bonds by three months, extending the maturity date
from 25 February 2023 to 25 May 2023, and (ii) conditional
amendments (the “Final Amendments”) consisting of an
extension of the term of the senior bonds from 15 May 2023
to 15 November 2025, an amendment of the change of
control clause to allow for Permira Credit to take over as the
new majority owner of Quant, a correction of wording to
allow non-wholly owned subsidiaries to make pro-rata
distributions to group companies and joint venture
partners, an undertaking to achieve an increase of equity to
an amount corresponding to the junior bond which is then
extinguished, and an update of the call structure of the
Senior Bond. The Final Amendments are conditional upon
the cash injection by Permira Credit and the extension and
reduction of the existing super senior revolving credit
facility.
On 7 April 2022 Quant received an approval from the
holders of the senior bonds in the written procedure and on
21 April 2022 the Interim Amendment was fully and finally
executed. At the time of the publication of the Annual
Report the company was awaiting formal approval of
merger control filings. For more information, please visit
www.quantservice.com/investors
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The effects of the global Covid-19 pandemic continue,
resulting in supply chain disruptions and continued global
economic uncertainty. Quant is leveraged because we have
customers in a wide range of industries and geographies.
Some of these industries and geographies are negatively
impacted by Covid-19, where government response has
affected our operations, while other areas have not
experienced significant negative impact. Periods with high
sick leave vacancies which cannot be filled by temporary
staff will have an effect on Quant’s ability to perform its
services, and the profitability of the Group. Quant has also
experienced higher cost for safety and transportation as we
made sure to keep our employees safe and healthy, and for
replacing employees unable to make themselves available
at work. Achieving new sales also proves challenging when
travel is limited and abilities to meet and review sites are
restricted, but Quant has won new contracts during the
pandemic and is still focused on building a robust pipeline
that will lead to higher sales.
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The group has operations in 17 countries with 14 different
currencies, which means that changes in currency rates
can have a significant impact on its result. The group is also
exposed to changes in market interest rates. For more
information, see note 3.
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Global economic and market risks
The Group's business is highly dependent on its customers’
demand for its services and their ability and willingness to
meet their payment obligations under existing contracts in
a timely manner, and accordingly its revenues are to a large
extent dependent on the strength of the markets its
customers are engaged in. While the Group’s customer base
is spread across a number of different global markets and a
diversified set of product markets, it is ultimately dependent
on macro-economic factors including the global economic
situation which is outside the Group's control. Changes in
the geopolitical situation, such as the war in Ukraine, has an
impact on the world economy through changes in inflation
expectations, disturbances, sanctions, and shortages in
supply chains and labor markets, as well as changes in
behavior which may adversely affect Quant’s business
model and profitability.
Operational risks
The operational risks in Quant’s business is primarily
attributable to contractual commitments in customer
contracts for responsibility and service performance. Quant
performs its services in an environment where customers
place high demands on safety when performing the service
to ensure minimal negative impact on people, environment
and business process. Since Quant’s services are mainly
performed by personnel, there is a risk that injuries and
damages may occur due to negligence or other lack of
performance of the service. Quant does its utmost to
minimize the occurrence of these types of risk through, inter
alia, risk analysis, training, certification, follow-up of
performance of service, and through careful contract
management with clear liability limits.
As a maintenance services business, the Group is highly
dependent on retaining its customer portfolio as well as its
ability to attract new customers on a regular basis in order
to secure both short and long-term profitability. The Group
currently faces competition from both global and local
providers of maintenance services and is also facing the risk
of its customers deciding to in-source the services
provided. The loss of larger contracts or a loss of a number
of less significant contracts, without the replacement with
new contracts, would have a significant impact on the
Group’s profitability. Any demobilization from a customer
site is required to be managed in an organized manner that
allows for exit costs to be minimized and, unless lost
contracts are replaced by new contracts, that the group’s
operations are adjusted to reduced earnings. To manage the
risk of loss of contract Quant is ensuring value-add for the
customer by, for instance, maintaining motivated and well-
trained personnel, a continuous development of services
and processes and an active customer relationship
dialogue.
Quant has a number of pricing models in its contracts,
including primarily fixed price contracts but also cost-plus
pricing models. While the Group has compiled an extensive
qualitative and quantitative database of industry
benchmarks over recent decades, resulting in a robust
pricing process, the Group's operations and financial
position may be impacted negatively if the total effective
maintenance costs are above the agreed fixed price level, if
cost increases occur which exceed price indexation in
customer contracts, or if price pressures hinders Quant
from applying a profit margin which it considers satisfactory
in order to win or keep a contract.
The risk of cost overruns, which may have a significant
impact on the profitability of contracts, are most prominent
at the start-up and/or termination stages of a contract, or in
periods of site maintenance shut-down during the contract
term. To manage this risk Quant has well-defined processes
and procedures for these key parts of the contract life, as
well as operational, financial and legal risk reviews of
contracts before entering into new customer partnerships.
The group operates in a relatively specialized business, and
the possibility to retain key persons as well as the ability to
attract qualified personnel is crucial for the group’s
success.
3534
QUANT ANNUAL REPORT 2021 QUANT ANNUAL REPORT 2021
MANAGEMENT REPORT FINANCIAL STATEMENTS
Digitalization
In an increasingly digitalized world, one of the Group's
focus areas in order to ensure long-term profitability is to
stay ahead of technological advances and to offer cutting-
edge technology as part of its services. While the group
currently uses advanced technology for its industrial
maintenance services to its customers, the pace of
advances in technology is increasing, and any failure by the
Group to keep up with such advances may result in not
being able to offer the most up to date technology, and/or
to fall behind the services offered by its competitors.
IT and cyber risks
The digital transformation leads to great opportunities with
new technology to speed up the transfer of information, but
it also opens up for new risks. Quant continuously monitor
its IT structure and applications for cyber security risks to
remediate where recommended and proactively manages
its defense. Cyber security control failures is an emerging
risk closely monitored by Quant. IT failures, for example in
key applications, may have significant impact on Quant’s
ability to carry out its services. Quant’s IT department
constantly work to proactively eliminate these risk as well
as, as one part of this, perform regular end-user trainings.
Disputes and litigations
The Group regularly review significant outstanding claims
and disputes to determine the need for provisions. Among
the factors considered in such an assessment are the type
of litigation or summons, the amount of any damages, the
development of the case, perceptions of legal professionals
and other advisers, experience from similar cases, and
decisions of Group management regarding the Group’s
actions concerning these claims or disputes. Estimates do
not necessarily reflect the outcome of pending litigation,
and differences between outcome and estimate may
significantly affect the company’s financial position and
have an unfavorable impact on operating income and
liquidity.
Financial risks
Through its operations, Quant is exposed to a number of
different financial risks: market risk (primarily currency risk
and interest rate risk), financing risk, credit risk and liquidity
risk. Financial risks arise when refinancing and credit risks
as well as changes in interest rates and exchange rates
affect the group's earnings, cash flow and value. The
continued development of the global economy, including
interest rate and currency risk, is an uncertainty factor for
earnings performance. In the event of non-completion or
material changes to the proposal announced on 24 March
2022 (see Not 36 Events after the reporting period for more
information) this may have significant negative effects on
the Group’s ability to finance its operations. A more detailed
description of Quant’s financial risks and how the group
manage these risks is found in note 3.
Insurable risks
Usage of insurance is governed by central guidelines.
These include professional indemnity and product liability,
property, disruption, transport, crime, CEO and board
responsibilities and liability insurance for employment-
related requirements. Most insurance policies are
managed centrally by the Group.
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Financial instruments derive from interest-bearing
borrowing from bank and currency hedging of
intercompany loans. Quant may use hedging instruments,
but currently chooses not to use it. As of December 31,
2021, there is no currency swaps hedging for intercompany
loans.
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The Group does not operate a business that requires any
permit or notification.
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Quant's Sustainability Report 2021 is reported separately
from this Annual Report. The Sustainability Report is found
on Quant's homepage at www. quantservice.com/investors
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Non-restricted equity in the parent company at the disposal
of the Annual General Meeting:
Retained earnings 59,801
Loss for the year -14,371
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The board of Directors and the CEO propose this amount be
appropriated as follows:
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For further information regarding the parent company's
profit and financial position, information can be found in
the following income statement, balance sheet and cash
flow statement.
KEUR Note 2021 2020
Continuing operations
Net sales 164,435 163,497
Cost of sales -143,207 -143,962
Gross proit 21,228 19,535
General and administrative expenses -21,209 -20,628
Selling expenses -2,466 -2,294
Research and development expenses -294 -255
Other operating income 0 30
Other operating expenses -37 -88
Operating Loss 6, 7, 8, 19 -2,778 -3,699
Proit/Loss from inancial items
Interest income and similar proit/loss items 9 22 43
Interest expense and similar proit/loss items 10 -13,595 -13,137
Foreign exchange gains and losses 9, 10 -575 -3,149
Total inancial items -14,148 -16,243
Proit/loss after inancial items -16,926 -19,942
Taxes 11 1,426 1,867
Loss for the year, continuing operations -15,500 -18,074
Net proit (loss), discontinued operations 35 -7,358 -288
Net proit (loss), Group total -22,858 -18,362
Basic earnings per share*, EUR 12
Continuing operations -30.92 -37.31
Discontinued operations -14.72 -0.58
Group total -45.63 -37.89
Consolidated Income Statement
FINANCIAL STATEMENTS
*The Group has no employee incentive program that would have a dilutive eect on the Parent company’s ordinary shares outstanding.
Therefore, only Earnings per share basic is presented, and diluted Earnings per share is not calculated.
3736
QUANT ANNUAL REPORT 2021 QUANT ANNUAL REPORT 2021
FINANCIAL STATEMENTS FINANCIAL STATEMENTS
Consolidated Statement of Comprehensive Income
KEUR Note 2021 2020
Loss for the year -22,858 -18,362
Other comprehensive income
Items that have been or could be reallocated to profit/loss
Translation dierences pertaining to foreign operations
245 2,428
Items that could not be reallocated to profit/loss
Revaluation of defined benefit plans 1,287 -302
Tax pertaining to items that could not be reallocated to profit/loss -252 58
1,035 -245
Total other comprehensive income 1,280 2,183
Comprehensive income for the period -21,578 -16,180
Attributable to:
Shareholders of the parent company -21,578 -16,180
Non-controlling interest
- -
Consolidated Statement of Financial Position
KEUR Note Dec 31 2021 Dec 31 2020
ASSETS
Non-current Assets
Intangible assets
Goodwill 13,17 72,527 77,887
Other intangible assets 14, 15, 16, 17 13,898 24,301
Total Intangible assets 86,424 102,188
Property, plant and equipment
Property, plant and equipment 18 1,598 1,453
Right of use assets 19 3,185 4,583
Total property, plant and equipment 4,783 6,036
Deferred tax asset 22 1,742 1,924
Other non-current receivables 26 678
Total non-current assets 92,975 110,825
Current Assets
Inventories
Raw materials and consumables 916 822
Products in progress 486 653
Total inventories 1,402 1,475
Current receivables
Accounts receivable - trade 23 24,498 26,403
Current tax assets 711 1,325
Other receivables 1,200 1,683
Prepaid expenses and accrued income 24 5,686 5,089
Total current receivables 32,095 34,501
Cash and bank 25 9,648 21,351
Assets held for sale 35 457 378
Total current assets
43,601 57,705
TOTAL ASSETS 136,576 168,530
Consolidated Statement of Financial Position, continued
KEUR Note Dec 31 2021 Dec 31 2020
EQUITY AND LIABILITIES
Equity
Share capital 53 53
Other added capital 94,500 94,500
Reserves -613 -858
Loss brought forward, incl. net loss for the year -149,171 -127,348
Total Equity -55,231 -33,653
Non-current liabilities
Liabilities to credit institutions 136,341 129,471
Provisions for pensions and similar obligations 26 2,441 4,261
Provisions for taxes 22 3,443 5,518
Leasing liabilities 1,502 2,328
Total non-current liabilities 143,727 141,578
Current liabilities
Liabilities to credit institutions 3, 28 8,602 15,385
Accounts payable - trade 8,298 10,802
Leasing liabilities 19 1,869 2,496
Current tax liability 508 584
Other provisions 27 515 759
Other current liabilities 21 7,840 7,566
Accrued expenses and deferred income 29 19,751 22,688
Liabilities related to assets held for sale 35 698 326
Total current liabilities 48,080 60,605
TOTAL EQUITY AND LIABILITIES 136,576 168,530
KEUR Share capital Other Reserves Retained Total Equity
Opening balance 2020-01-01 53 94,500 -3,286 -108,741 -17,474
Profit/loss for the year -18,362 -18,362
Other comprehensive income/loss - - 2,428 -245 2,183
Total comprehensive income/loss for the year - - 2,428 -18,607 -16,180
Closing balance 2020-12-31 53 94,500 -858 -127,348 -33,653
Profit/loss for the year -22,858 -22,858
Other comprehensive income/loss - - 245 1,035 1,280
Total comprehensive income/loss for the year - - 245 -21,823 -21,578
Closing balance 2021-12-31 53 94,500 -613 -149,171 -55,231
Statement of Changes In Consolidated Equity
3938
QUANT ANNUAL REPORT 2021 QUANT ANNUAL REPORT 2021
FINANCIAL STATEMENTS FINANCIAL STATEMENTS
Parent company income statement
KKEEUURR
Note
22002211
22002200
Net sales
10,752
10,792
Cost of sales
-2,496
-2,502
GGrroossss pprrooffiitt
88,,225566
88,,229900
General and administrative expenses
-5,189
-4,456
Selling expenses
-303
-564
Research and development expenses
-310
-205
Other operating income
-
-
Other operating expenses
43
-535
OOppeerraattiinngg LLoossss
6, 7, 8, 19
22,,449977
22,,553300
Profit/Loss from financial items
Interest income and similar profit/loss items
9
2,845
3,403
Interest expense and similar profit/loss items 10 -12,259
-12,383
Other financial items
9, 10
-7,333
2,254
Foreign exchange gains and losses
9, 10
24
-3,616
TToottaall ffiinnaanncciiaall iitteemmss
--1166,,772244
--1100,,334433
PPrrooffiitt//lloossss bbeeffoorree ttaaxx
--1144,,222266
--77,,881133
Taxes
11
-145
-144
LLoossss ffoorr tthhee yyeeaarr
--1144,,337711
--77,,995577
Parent Company Statement of Comprehensive Income
KKEEUURR
22002211
22001199
Net profit/loss for the year
-14,371
-7,957
TToottaall ccoommpprreehheennssiivvee iinnccoommee
--1144,,337711
--77,,995577
Statement of Consolidated Cash Flows
KEUR Note 2021 2020
Continuing operations
Operating activities
Loss after financial items -16,926 -19,942
Adjustments for non-cash items
Depreciation and amortization 9,784 10,539
Depreciation and amortization, right of use assets 2,158 2,954
Change in provisions -1,546 733
Unrealized exchange rate dierences 607 5,449
Other non-cash items 33 7,609 5,561
Total adjustments not included in cash flow 18,612 25,235
Income tax paid -342 -805
Cash flow from operating activities before changes in working capital 1,345 4,488
Changes in working capital
Increase (-) / Reduction (+) of inventories -24 214
Increase (-) / Reduction (+) of current receivables -2 4,865
Increase (+) / Reduction (-) of current liabilities -3,099 -1,879
Cash flow from changes in working capital -3,125 3,200
Cash flow from operating activities -1,781 7,688
Investing activities
Investments in intangible assets 17 -50 -19
Investments in tangible assets 19 -894 -693
Investments in financial fixed assets 7 -135
Cash flow from investing activities -937 -848
Financing activities
New loans taken 28 - 4,000
Repayment of loans 28 -7,000 -
Amortization lease liabilities 28 -1,369 -2,020
Cash flow from financing activities -8,369 1,980
Cash flow for the year, continuing operations -11,087 8,820
Discontinued operations
Cash flow from operating activities -827 47
Cash flow from investing activities - 10
Cash flow from financing activities - -234
Cash flow for the year, discontinued operations -827 -177
Group total
Cash flow from operating activities -2,607 7,735
Cash flow from investing activities -937 -838
Cash flow from financing activities -8,369 1,746
Cash flow for the year, Group total -11,914 8,643
Cash and cash equivalents at the beginning of the year 25 21,351 13,190
Exchange rate dierences in cash and cash equivalents 210 -482
Cash and cash equivalents at the end of the year
25
9,648 21,351
4140
QUANT ANNUAL REPORT 2021 QUANT ANNUAL REPORT 2021
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
Parent Company Statement of Financial Position
KKEEUURR
Note
DDeecc 3311 22002211
DDeecc 3311 22002200
A
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T
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NNoonn--ccuurrrreenntt aasssseettss
PPrrooppeerrttyy,, ppllaanntt aanndd eeqquuiippmmeenntt
Property, plant and equipment
19
–
6
Right of use assets
19 519
667
TToottaall pprrooppeerrttyy,, ppllaanntt aanndd eeqquuiippmmeenntt
551199
667733
FFiinnaanncciiaall aasssseettss
Participations in group companies
21
96,285
101,285
Deferred tax asset
224
–
Other non-current receivables
–
645
TToottaall ffiinnaanncciiaall aasssseettss
9966,,550099
110011,,993300
TToottaall nnoonn--ccuurrrreenntt aasssseettss
9977,,002277
110022,,660033
CCuurrrreenntt AAsssseettss
CCuurrrreenntt rreecceeiivvaabblleess
Receivables from group companies
106,343
107,101
Other receivables
23
171
220
Prepaid expenses and accrued income
24 421
695
TToottaall ccuurrrreenntt rreecceeiivvaabblleess
110066,,993355
110088,,001155
Cash and bank
25
1,393
7,814
TToottaall ccuurrrreenntt aasssseettss
110088,,332288
111155,,882299
TTOOTTAALL AASSSSEETTSS
220055,,335555
221188,,443322
EEQQUUIITTYY AANNDD LLIIAABBIILLIITTIIEESS
DDeecc 3311 22002211
DDeecc 3311 22002200
EEqquuiittyy
NNoonn--rreessttrriicctteedd eeqquuiittyy
Share capital
53
53
NNoonn--rreessttrriicctteedd eeqquuiittyy
Profit or loss brought forward
59,801
67,758
Net profit/loss for the year
-14,371
-7,957
TToottaall nnoonn--rreessttrriicctteedd eeqquuiittyy
4455,,443300
5599,,880011
TToottaall EEqquuiittyy
4455,,448833
5599,,885544
PPrroovviissiioonnss
Provisions for pensions and similar obligations
–
793
TToottaall PPrroovviissiioonnss
––
779933
N
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Liabilities to credit institutions
136,341
129,471
Leasing liabilities
353
491
TToottaall nnoonn--ccuurrrreenntt lliiaabbiilliittiieess
113366,,669933
112299,,996622
CCuurrrreenntt lliiaabbiilliittiieess
Liabilities to credit institutions
3, 28 8,602
15,385
Accounts payable - trade
208
547
Liabilities to group companies
11,173
8,361
Leasing liabilities
178
178
Other current liabilities
437
376
Accrued expenses and deferred income
2,580
2,976
TToottaall ccuurrrreenntt lliiaabbiilliittiieess
2233,,117799
2277,,882233
TTOOTTAALL EEQQUUIITTYY AANNDD LLIIAABBIILLIITTIIEESS
220055,,335555
221188,,443333
Parent Company Statement of Change in Equity
K
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CClloossiinngg bbaallaannccee 22002200--0011--0011
5533
6677,,775588
6677,,881111
Total comprehensive income for the period
-
-7,957
-7,957
CClloossiinngg bbaallaannccee 22002200--1122--3311
5533
5599,,880011
5599,,885544
Total comprehensive income for the period
-
-14,371
-14,371
CClloossiinngg bbaallaannccee 22002211--1122--3311
5533
4455,,443300
4455,,448833
Parent Company statement of cash flows
KKEEUURR
NNoottee
22002211
22002200
CCoonnttiinnuuiinngg ooppeerraattiioonnss
OOppeerraattiinngg aaccttiivviittiieess
LLoossss aafftteerr ffiinnaanncciiaall iitteemmss
--1144,,222266
--77,,881133
Adjustments for non-cash items
Depreciation and amortization
6
21
Depreciation and amortization, right of use assets
148
148
Write-down shares in subsidiaries
5,000
-
Unrealized exchange rate differences
-9
4,239
Change in provisions
-148
209
Other non-cash items
33
5,112
6,579
TToottaall aaddjjuussttmmeennttss nnoott iinncclluuddeedd iinn ccaasshh ffllooww
1100,,110099
1111,,119955
IInnccoommee ttaaxx ppaaiidd
--227722
--115555
CCaasshh ffllooww ffrroomm ooppeerraattiinngg aaccttiivviittiieess bbeeffoorree cchhaannggeess iinn wwoorrkkiinngg ccaappiittaall
--44,,338899
33,,222288
CChhaannggeess iinn wwoorrkkiinngg ccaappiittaall
Increase (-) / Reduction (+) of inventories
-
-
Increase (-) / Reduction (+) of current receivables
1,940
1,560
Increase (+) / Reduction (-) of current liabilities
-791
-4,716
CCaasshh ffllooww ffrroomm cchhaannggeess iinn wwoorrkkiinngg ccaappiittaall
11,,114499
--33,,115566
CCaasshh ffllooww ffrroomm ooppeerraattiinngg aaccttiivviittiieess
--33,,224400
7722
IInnvveessttiinngg aaccttiivviittiieess
Investments in financial fixed assets
-
-173
CCaasshh ffllooww ffrroomm iinnvveessttiinngg aaccttiivviittiieess
--
--117733
FFiinnaanncciinngg aaccttiivviittiieess
New loans taken
28
-
4,000
Repayment of loans
28
-7,000
Change in loans to group companies
28
3,955
3,408
Amortization lease liabilities
28
-138
-128
CCaasshh ffllooww ffrroomm ffiinnaanncciinngg aaccttiivviittiieess
--33,,118833
77,,228800
CCaasshh ffllooww ffoorr tthhee yyeeaarr
--66,,442233
77,,117799
Cash and cash equivalents at the beginning of the year
25
7,814
769
Exchange rate differences in cash and cash equivalents 2
-133
CCaasshh aanndd ccaasshh eeqquuiivvaalleennttss aatt tthhee eenndd ooff tthhee yyeeaarr
25
11,,339933
77,,881144
43
NOTES
QUANT ANNUAL REPORT 2021
42
QUANT ANNUAL REPORT 2021
NOTES
NNoottee 11 Accounting principles
The parent company, Quant AB (publ), Swedish corporate
ID no. 556975-5654 is a limited liability company registered
in Sweden, having its registered office at the address: S:t
Göransgatan 66, 112 33 Stockholm. Since Feb 7, 2019
Quant AB (publ) has its bonds registered on the EU
regulated market of the Luxembourg Stock Exchange.
Quant AB is a wholly-owned subsidiary of Cidron FS
Holding AB, org no 556968-8905 with its registered office
in Stockholm. Cidron FS Holding AB is part of a group of
companies in which Cidron FS Top Holding AB, org no
556985-2287, based in Stockholm, reports consolidated
financial statements for the largest group.
The consolidated financial statements have been prepared
in accordance with EU-approved International Financial
Reporting Standards (IFRS) issued by the International
Accounting Standards Board (IASB). In addition, the Group
applies the Swedish Financial Reporting Board's
recommendation RFR 1 supplementary accounting
regulations for corporate conglomerates, which specifies
the supplements to IFRS required pursuant to the
stipulations of the Swedish Annual Accounts Act.
The parent company applies the same accounting
principles as the group except in the cases listed below
under the section "Parent Company Accounting
Principles".
The Annual Report was approved for issue by the Board of
Directors and the CEO on 28 April 2022. The Balance Sheets
and Income Statements will be subject to approval by the
Annual General Meeting on 28 April 2022.
B
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Assets, provisions and liabilities have been valued at
acquisition values unless otherwise stated below.
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The functional currency of the parent company is the Euro
(EUR), which is also the reporting currency for the parent
company and the Group. This means that the financial
statements are presented in Euro. Unless otherwise stated,
all otherwise stated all amounts are rounded to the nearest
thousand (EUR thousand). Amounts in parentheses refer to
the previous year. Income statement items refer to the
period January 1 – December 31, while balance sheet items
refer to December 31.
A
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To prepare the financial statements in accordance with
IFRS requires management to make assessments and
estimates and to make assumptions that affect the
application of accounting principles and the reported
amounts of assets, liabilities, income and expenses. The
actual outcome may deviate from these estimates and
assessments.
The estimates and assumptions are reviewed regularly.
Changes to estimates are reported in the period in which
the change is made if the change only affected this
period, or in the period the change is made and future
periods if the change affects both the current period and
future periods.
D
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No other changes to accounting standards with future
application are considered to have any material effect on
the consolidated accounts.
C
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The classification of fixed assets and non-current
liabilities consists substantially of amounts that are
expected to be recovered or paid more than 12 months
from the balance sheet date. Current assets and current
liabilities consist substantially of amounts that are
expected to be recovered or paid within 12 months of the
balance sheet date.
C
C
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s
Subsidiaries
Subsidiaries are companies that are under a controlling
influence from Quant AB. Controlling influence exists if
Quant AB has power over the investee company, is
exposed to, or has the right to, variable returns from its
engagement with the company and can use its influence
over the investment to influence the return. When
assessing whether a controlling influence exists, potential
voting shares are taken into account and if de facto
managerial control exists.
Subsidiaries are reported according to the acquisition
method. The method implies that the acquisition of a
subsidiary is regarded as a transaction whereby the group
indirectly acquires the subsidiary's assets and assumes its
liabilities. In the acquisition analysis, the fair value of the
acquisition date is determined by the identifiable assets
and liabilities assumed, as well as any non-controlling
interest. Transaction expenditure, with the exception of
transaction expenditure relating to the issue of equity
instruments or debt instruments, that arises is reported
directly in profit or loss for the year. In the case of
business combinations where transferred remuneration,
possible non-controlling interest and value of previously
owned share (in the case of incremental acquisitions)
exceed the fair value of acquired assets and assumed
liabilities that is recognized separately, the difference is
recognized as goodwill. When the difference is negative,
so-called acquisition at low price, this is reported directly
in profit or loss for the year.
Contingent consideration is reported at fair value at the
time of acquisition. Where the contingent consideration is
classified as an equity instrument, no revaluation and
regulation is made within equity. For other contingent
considerations, these are revalued at each reporting date
and the change is reported in profit or loss for the year.
In cases where the acquisition does not relate to 100% of
the subsidiary, non-controlling interest is acquired. There
are two options for reporting non-controlling interests.
These two options are to report non-controlling interest in
net proportional assets or that non-controlling interests are
recognized at fair value, which means that non-controlling
interests have share in goodwill. The choice between the
different options to report non-controlling interests can be
made depending on the acquisition.
Transactions eliminated on consolidation
Intercompany receivables and liabilities, income or
expenses and unrealized gains or losses arising from intra-
group transactions between business units are eliminated
in full when the consolidated financial statements are
prepared.
F
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Transactions in foreign currency
Transactions in foreign currency are translated into the
functional currency at the exchange rate prevailing on the
transaction date. Functional currency is the currency of the
primary economic environments in which the companies
conduct their business. Monetary assets and liabilities
denominated in foreign currency are converted into
functional currency at the balance sheet date and
exchange rate differences are recognized. Exchange rate
differences arising from translation are reported in profit or
loss for the year. Non-monetary assets and liabilities that
are reported at historical acquisition values are translated
with the exchange rate at the transaction. Non-monetary
assets and liabilities that are recognized at fair value are
translated into the functional currency at the rate prevailing
at the time of measurement at fair value.
Financial statements of foreign operations
Assets and liabilities in foreign operations, including
goodwill and other group surplus and discount values,
are translated from entity functional currency to the
group's reporting currency, euro, at the exchange rate
prevailing on balance sheet date. Income and expenses
in a foreign operation are translated into euro at an
average rate that is an approximation of the exchange
rates prevailing at the time of the respective transaction.
Translation differences arising from currency translation
of foreign operations are recognized in other
comprehensive income and accumulate in a separate
component of equity, the term "translation reserve".
When controlling influence or significant influence
ceases for a foreign operation, they are realized in the
operations related to accumulated translation
differences, which are reclassified from the translation
reserve in equity to the profit/loss for the year. Where
disposal occurs but controlling influence remains, the
proportional share of accumulated translation
differences from the conversion reserve is transferred to
non-controlling interests. In the case of disposal of parts
of associates, but significant influence remains, the
proportionate share of the translation differences is
reclassified to profit for the year.
R
R
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n
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e
Quant is a supplier of industrial maintenance services
whose customers are comprised of industrial facilities
such as production factories, pulp and paper mills and
mining operations to name a few. Quant enters into long-
term contracts with its customers, in which Quant
commits to maintaining the facility, including areas such
as maintaining production equipment, and improving the
safety, performance, reliability and energy efficiency of
the facility. The performance of facility maintenance
services is a single performance obligation which is
delivered over a period of time, the contract period.
For more information about the Group’s revenue
accounting principles and reporting, see Note 5 Revenue.
L
L
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a
a
s
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n
g
g
When entering into an agreement an assessment is made
as to whether the agreement is a lease or contains a lease.
If the agreement transfers the right for a determined
period to control the use of an identified asset the Group
recognizes a right-of-use asset and associated liability.
For all lease agreements the Group accounts for the lease
and non-lease components of a contract separately.
Quant’s lease agreements comprise office space,
vehicles and equipment. Typically lease periods are 3
years, which is in line with or shorter than its underlying
customer contract. Initially the liability is valued at the
present value of the remaining lease payments for the
estimated lease period, using the value of lease payments
discounted at Quant’s marginal borrowing rate for each
country of operation.
4544
QUANT ANNUAL REPORT 2021
NOTES NOTES
QUANT ANNUAL REPORT 2021
The liability is recognized in the Statement of financial
position and divided between current and non-current
parts. In the Income statement each lease payment is
distributed between amortization of the debt and
financial expense, which is the amount corresponding to
a fixed interest rate for the liability. Right-of-use assets are
initially valued at the value of the liability plus lease
payments paid upon or before the start date, plus any
initial direct payments. The right-of-use asset is
recognized as Property, plant and equipment in the
Statement of financial position and is depreciated on a
straight-line basis over the term of the lease.
The term of the lease comprises the non-cancellable period
plus additional periods in the agreement if it is deemed at
the start date reasonably certain these will be used.
No right-of-use asset or lease liability is recognized for
leases with a term of 12 months or less or with underlying
assets of low value. Lease payments for such leases are
recognized as a cost on a straight-line basis over the term
of the lease.
F
F
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Financial income consists of interest income on invested
funds and gain on the change in value of financial assets
valued at fair value through profit or loss.
Interest income on financial instruments is reported
according to the effective interest method. Dividend
income is recognized when the right to receive dividends
is determined. The result of the disposal of a financial
instrument is recognized when the risks and benefits
associated with ownership of the instrument are
transferred to the buyer and the group no longer has
control over the instrument.
Financial expenses consist of interest expenses on loans,
the effect of the dissolution of the present value calculation
of provisions, loss on changes in value of financial assets
valued at fair value through profit or loss, impairment of
financial assets and such losses on hedging instruments
reported in profit or loss for the year. Borrowing costs are
recognized in profit or loss using the effective interest
method, except to the extent that they are directly
attributable to the purchase, construction or production of
assets that take a significant amount of time to complete
for their intended use or sales, in which case they are
included in the acquisition value of the assets.
The effective interest rate is the interest rate discounting
the estimated future cash receipts and disbursements for
the expected maturity of the financial assets or liabilities of
the net carrying amount of the asset or liability. The
calculation includes all fees paid or received by the
contracting parties that are part of the effective interest
rate, transaction costs and all other surplus or deficit rates.
T
T
a
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x
x
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s
s
Income taxes consist of current tax and deferred tax.
Income taxes are reported in the income statement
except where the underlying transaction is recognized in
other comprehensive income or in equity, whereby the
related tax effect is recognized in other comprehensive
income or equity.
Current tax is tax that is to be paid or received in the current
year, based on the tax rates enacted or substantively
enacted at the end of the reporting period, including
adjustments of current tax in respect of prior periods.
Deferred tax is calculated using the balance sheet
method on the basis of temporary differences between
the carrying amounts and the tax values of assets and
liabilities. Temporary differences are not taken into
consideration that occurred when goodwill was first
recognized, nor for the difference arising from the initial
recognition of assets and liabilities that are not business
combinations that at the time of the transaction do not
affect either the accounting taxable profit or loss.
Furthermore, temporary differences attributable to
shares in subsidiaries and associates that are not
expected to be reversed in the foreseeable future are also
not considered. The valuation of deferred tax is based on
how the underlying assets or liabilities are expected to be
realized or settled. Deferred tax is calculated by applying
the tax rates and tax rules adopted or adopted in practice
decided at the reporting date.
Deferred tax assets relating to deductible temporary
differences and loss carryforwards are recognized only to
the extent that it is probable that they will be utilized. The
value of deferred tax assets is reduced when it is no
longer deemed likely that they can be utilized.
Any additional income tax arising from dividends is
recognized at the same time as the dividend is
recognized as a liability.
F
F
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Financial instruments are any form of contract that gives
rise to a financial asset in a company and a financial
liability or an equity instrument of another company.
A financial asset or financial liability is included in the
statement of financial position when the company
becomes a party under the contractual terms of the
instrument. A claim is raised when the company has
performed, and a contractual obligation exists for the
counterparty to pay, even if the invoice has not yet been
sent. Accounts receivable are included in the statement
of financial position when the invoice has been sent. Debt
is raised when the counterparty has performed, and
contractual obligation exists to pay, even if the invoice
has not yet been received. Accounts payable are entered
when the invoice is received.
A financial asset is removed from the statement of
financial position when the rights in the agreement are
realized, expired or the company loses control of them.
The same applies to parts of financial assets. A financial
liability is removed from the statement of financial
position when the contractual obligation is fulfilled or
otherwise extinguished. The same applies to parts of
financial liabilities.
A financial asset and a financial liability are offset and
reported with a net amount in the statement of financial
position only when there is a legal right to offset the
amounts and that there is an intention to regulate the
items with a net amount or to simultaneously realize the
asset and settle the debt.
Acquisitions and divestments of financial assets are
reported on the trade date. The business day constitutes
the date on which the company commits to acquire or
divest the asset.
F
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Quant has no financial assets that are measured at fair
value through profit and loss or other comprehensive
income. All financial assets are classified and valued at
amortized cost, therefore there is no hierarchy level used
for these assets as described in IFRS 9. Financial assets
are comprised of:
Accounts receivable and other receivables
Cash and cash equivalents
A
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The expected maturity of accounts receivable and other
receivables is short, and values are recognized at nominal
amounts with no discounts.
C
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Cash and cash equivalents consist of cash and bank
balances at financial institutions are are recognized at
their nominal amount.
Impairment
Financial assets carried at amortized cost are assessed for
impairment based on expected credit losses. The
expected credit loss allowance is based on the current
financial situation of each customer.
F
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Interest-bearing liabilities are initially recognized at fair
value net of transaction costs incurred. After initial
recognition, interest-bearing liabilities are valued at
amortized cost using effective interest method.
Other financial liabilities
Other financial liabilities are classified and subsequently
measured at amortized cost, and are comprised of
Accounts payable
Other non-current financial liabilities
P
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Property, plant and equipment are reported in the group
at cost less accumulated amortization and any
impairment losses. The cost includes the purchase price
and expenditure directly attributable to the asset to bring
it into place and in condition to be used in accordance
with the purpose of the acquisition. Accounting
principles for depreciation are shown below.
Borrowing costs that are directly attributable to the
purchase, construction or production of assets that take
a significant amount of time to complete for their
intended use or sale are included in the acquisition value.
Additional expenditure
Additional expenditure is added to the acquisition value
only if it is probable that the future economic benefits
associated with the asset will be realized and the cost can
be calculated reliably. All other additional expenditure is
recognized as an expense in the period in which it arises.
An additional expense is added to the acquisition value if
the expenditure relates to the exchange of identified
components or parts thereof. Even where new
components have been created, the expenditure is
added to the acquisition value. Any values of replaced
components, or parts of components, not written off are
decommissioned and expensed in connection with the
exchange. Repairs are expensed continuously.
Depreciation Principles
Depreciation is linear over the estimated useful life of the
asset.
USEFUL LIFE
IT and office equipment
3
-5 years
Machinery and other technical facilities
3
-15 years
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Goodwill
Goodwill is valued at acquisition value less any
accumulated impairment losses. Goodwill is allocated to
cash- generating units and is tested at least annually for
impairment. Goodwill incurred in the acquisition of
associates is included in the carrying amount of
participations in associates.
4746
QUANT ANNUAL REPORT 2021
NOTES NOTES
QUANT ANNUAL REPORT 2021
Other intangible assets
Other intangible assets acquired by the group consist of
client contracts, customer relationships and computer
systems and are reported at cost less accumulated
amortization (see below) and any impairment losses.
Costs incurred for internally generated goodwill and
internally generated trademarks are reported in profit or
loss for the year when the cost arises.
Additional expenditure
Additional expenditure on capitalized intangible assets is
recognized as an asset in the statement of financial
position only when they increase the future economic
benefits for the specific asset to which they relate. All
other expenditure expensed when they arise.
Amortization
Amortization is reported in the income statement on a
straight-line basis over the estimated useful lives of
intangible assets, unless such useful lives are
unquantifiable. The useful life periods are reviewed at
least annually. Amortization is recognized as a whole as
administrative expenses. Goodwill and other intangible
assets with an indefinite useful life or which are not yet
ready for use are tested annually for impairment as well
as at any point in time when there is an indication that the
asset in question has decreased in value. Intangible
assets with nondescript useful lives are depreciated from
the time they are available for use. The estimated useful
life periods are:
USEFUL LIFE
Customer contract
7 years
Customer relations
11 years
IT Licenses
3 years
Software
3-5 years
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The group's reported assets are assessed at the end of each
reporting period to assess whether there is an indication of
an impairment requirement. IAS 36 applies to impairment
of assets other than financial assets, that are accounted for
under IFRS 9 Financial instruments and is described in the
Financial Instruments section above.
Write-down of tangible and intangible assets and
participations in associated companies
If there is an indication of impairment, the asset's
recoverable amount is calculated (see below). For goodwill,
other intangible assets with indefinite useful lives and
intangible assets that are not yet ready for use, the
recoverable amount is calculated annually. If it is not
possible to determine essentially independent cash flows
to an individual asset, and its fair value minus the cost of
selling costs cannot be used, the assets are grouped when
assessing impairment at the lowest level where it is
possible to identify essentially independent cash flows – a
so-called cash-generating unit.
An impairment loss is recognized when the carrying
amount of an asset or a cash-generating unit (group of
units) exceeds the recoverable value. An impairment loss is
recognized as an expense in profit or loss.
The recoverable amount is the highest of fair value minus
selling costs and value in use. In calculating the value,
future cash flows are discounted by a discount factor
taking into account the risk-free interest rate and the risks
associated with the specific asset.
Reversal of impairment losses
An impairment loss on assets included in the scope of IAS
36 is reversed if there is both an indication that the
impairment no longer exists and there has been a change
in the assumptions that formed the basis for the calculation
of the recoverable value. However, impairment of goodwill
is never reversed. A reversal is only made to the extent that
the carrying amount of the asset after reversal does not
exceed the carrying amount that would have been
recognized, less depreciation, where applicable, if no
impairment was made.
Write-downs of loan receivables and accounts receivables
that are recognized at amortized cost are reversed if the
earlier reasons for impairment are no longer present and
full payment from the customer is expected to be received.
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Inventories are valued at the lower of cost and net
realizable value. The cost of inventories is calculated by
applying the first-in, first-out (FIFO) method and includes
expenditure incurred in the acquisition of the inventory
assets and transporting them to their current location and
condition.
Net realizable value is the estimated selling price in the
ordinary course of business, after deduction of estimated
costs for completion and for the purpose of obtaining a
sale.
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Dividends are recognized as a liability after the Annual
General Meeting approves the dividend.
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Short-term remunerations
Short-term employee benefits are calculated without
discounting and are recognized as an expense when the
related services are received.
A provision is recognized for the expected bonus payments
when the group has an existing legal or constructive
obligation to make such payments as a result of services
received from employees and the obligation can be
calculated reliably.
Defined contribution pension plans
The plans in which the company’s obligation is limited to
the fees that the company has undertaken to pay is
classified as a defined-contribution pension plan. In such a
case, the amount of the employee's pension depends on
the fees paid by the company to the plan or to an insurance
company and the return on capital provided by the
contributions. Consequently, it is the employee who bears
the actuarial risk (that the compensation is lower than
expected) and the investment risk (that the assets invested
will be insufficient to provide the expected benefits). The
company's obligations for contributions to defined
contribution plans are recognized as an expense in the
profit or loss for the year as they are earned by the
employees carrying out services to the company over a
period of time.
Defined benefit pension plans
Defined benefit plans are other post-employment benefit
plans than defined contribution plans. The Group has one
significant such plan in Switzerland. The group's net
obligation for defined benefit plans is calculated separately
for each plan by estimating the future remuneration that
employees earned through their employment in both
current and previous periods; This compensation is
discounted to a present value. The discount rate is the
interest rate on the balance sheet date of an investment
grade corporate bond, including mortgage bonds, with a
maturity corresponding to the group's pension obligations.
When there is no viable market for such corporate bonds,
the market rate is instead used on government bonds with
a corresponding maturity. The calculation is performed by
a qualified actuary, using the projected Unit Credit Method.
Furthermore, the fair value of any plan assets is calculated
as of the reporting date.
The group's net obligation comprises the present value of
the obligation, minus the fair value of the plan assets
adjusted for any asset constraints.
Interest expense/revenue net of the defined benefit
obligation/asset is reported in profit or loss for the year
during net financial items. Net interest income is based on
the interest that arises when discounting the net obligation,
i.e. interest on the obligation, plan assets and interest on
the effect of any asset constraints. Other components are
reported in operating income.
Revaluation effects consist of actuarial gains and losses,
difference between the actual return on management
assets and the amount included in net interest income and
any changes in the effects of asset restrictions (excluding
interest included in net interest income). The revaluation
effects are recognized in other comprehensive income.
When the calculation results in an asset for the group, the
carrying amount of the asset is limited to the lower of the
surplus in the plan and the asset restriction calculated
using the discount rate. The asset restriction is the present
value of the future economic benefits in the form of
reduced future fees or cash refunds. For the calculation of
the present value of future refunds or payments, any
requirements for minimum funding are taken into account.
Changes or curtailments of a defined benefit plan are
recognized at the earliest of the following dates: A) when
the change in the plan or reduction occurs or (b) when the
entity reports related restructuring costs and termination
benefits. The changes/reductions are reported directly in
profit or loss for the year.
The special payroll tax is part of the actuarial assumptions
and is therefore accounted for as part of the net
obligation/asset. The part of the special payroll tax that is
calculated on the basis of the safeguarding law of a legal
person is recognized for reasons of simplification as
accrued expense instead of as part of the net
obligation/asset.
Return tax is reported on an ongoing basis in profit or loss
for the period in which the tax relates and is thus not
included in the liability calculation. In the case of funded
plans, the tax is charged on the return on plan assets and is
recognized in other comprehensive income. In unfunded or
partly unfunded plans, the tax is charged to net profit for
the year.
Termination benefits
A cost of remuneration in connection with redundancies is
recognized at first when the company can no longer
withdraw the offer to the employees or when the company
recognizes restructuring costs. The benefits that are
expected to be settled after 12 months are reported at its
present value. Benefits that are not expected to be settled
entirely within twelve months are reported according to
long-term benefits.
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A provision differs from other debts in that there is
uncertainty about the period of payment or the amount to
regulate the provision. A provision is recognized in the
statement of financial position when there is an existing
legal or constructive obligation as a result of a past even,
and it is probable that an outflow of financial resources will
be required to regulate the obligation and a reliable
estimate of the amount can be made.
Provisions are made with the amount that is the best
estimate of what is required to settle the existing obligation
at the balance sheet date. Where the effect of when
payment is made is material, provisions are calculated by
discounting the expected future cash flow at a pre-tax rate
that reflects current market assessments of the time value
of money and, if applicable, the risks associated with the
debt.
4948
QUANT ANNUAL REPORT 2021
NOTES NOTES
QUANT ANNUAL REPORT 2021
A provision for restructuring is recognized when the Group
has adopted a comprehensive and formal restructuring
plan, and the restructuring has either been started or
published. No provisions are made for future operating
expenses.
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To qualify as Discontinued operations, an entity or
operational segment of the Quant Group must be classified
as held for sale or be part of a plan to dispose of the entity
or operational segment. In May of 2019 Quant took the
decision to sell or discontinue operations in a number of
countries and these are reported as Discontinued
operations in the Statement of Consolidated
Comprehensive Income and Statement of Consolidated
Cash Flows with historical comparisons. The Consolidated
Statement of Financial Position reports Assets and liabilities
for Discontinued operations in the current year, with no
historical comparisons. For further information see note 35
Business combinations, discontinued operations and
assets and liabilities held for sale.
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A contingent liability is recognized when there is a possible
commitment arising from past events and whose existence
is confirmed only by one or more uncertain future events
outside the group's control or when there is a commitment
that is not recognized as a liability or provision because it is
not probable that an outflow of resources will be required
or cannot be calculated with sufficient reliability.
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Calculation of earnings per share is based on consolidated
profit or loss for the period attributable to shareholders of
the parent and on the weighted average number of
outstanding shares during the period. The Group has no
employees share plans or other type of share program that
would cause a dilutive effect on ordinary shares. Therefore,
Earnings per share after dilution is not calculated.
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The parent company has prepared its annual report in
accordance with the Swedish Annual Accounts Act
(1995:1554) and the Swedish Financial Reporting Board's
recommendation RFR 2 Accounting for legal entities.
Statements issued by the Swedish Financial Reporting
Board for listed companies are also applied. RFR 2 means
that the parent company in the annual report of the legal
entity shall apply all IFRS and statements adopted by the EU
as far as possible within the framework of the Annual
Accounts Act, the Security Law and with regard to the
relationship between accounting and taxation. The
recommendation specifies the exceptions and additions to
IFRS which should be made.
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The differences between the group's and the parent
company's accounting principles are shown below. The
accounting principles for the parent company described
below have been applied consistently to all periods
presented in the parent company's financial statements.
Classification and presentation forms
The parent company uses the terms balance sheet and
cash flow statement for the reports reported in the Group
as the statement of financial position and the statement of
cash flows. The income statement and balance sheet are
for the parent company in accordance with the annual
Accounts Act schedule, while the statement of income and
other comprehensive income, the statement of changes in
equity and the cash flow analysis is based on IAS 1
Presentation of Financial statements and IAS 7 Statement
of Cashflows. The differences with the group's reports that
are made in the parent company's income statement and
balance sheet consist mainly of accounting for financial
income and expenses, fixed assets, equity and the
existence of provisions as own heading in the balance
sheet.
Subsidiaries
Shares in subsidiaries are reported in the parent company
according to the cost method. This means that transaction
expenses are included in the carrying amount of
investments in subsidiaries. In the consolidated financial
statements, transaction expenses attributable to
subsidiaries are reported directly in the result when these
are incurred.
Financial instruments
As a result of the relationship between accounting and
taxation, the rules on financial instruments is not applied in
the parent company as a legal entity.
In the parent company, financial fixed assets are valued at
cost less any impairment losses and financial current assets
according to the lowest value principle. The acquisition
value of interest-bearing instruments is adjusted for the
accrued difference between what was initially paid, after
deduction of transaction costs, and the amount paid on the
due date (premium or discount).
Anticipated dividends
Anticipated dividends from subsidiaries are reported in
cases where the parent company has the right to decide on
the size of the dividend and the parent company has
decided on the size of the dividend before the parent
company publishes its financial statements.
Tangible fixed Assets
Tangible fixed assets in the parent company are reported
at cost less accumulated amortization and any impairment
losses in the same way as for the group but with additions
for any write-ups.
Leased assets
The new policies on leases, in accordance with IFRS 16, that
went into effect on 1January 2019 and which the Group
complies with are also applied in the parent company.
Group contributions
Group contributions are reported as financial
appropriation.
NNoottee 22 Estimates and assumptions
The estimates and assumptions that Quant's management
and Board of Directors mention below are those that are
deemed most important to obtain an understanding of
Quant's financial reporting. The information is limited to
areas that are essential, taking into account the degree of
impact and underlying security. Estimates and assumptions
are based on historical experience and assumptions that
management and the Board of Directors consider reasonable
under the relevant circumstances. Drawn conclusions form
the basis of the carrying amounts of assets and liabilities,
where these cannot be determined by information from
other sources. Actual outcome may differ from these
through estimates and assumptions.
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Within the group, defined benefit pension plans have
significant commitments for future benefits to current and
former staff. Quant has one significant commitment in
Switzerland. To carry out the calculation of the pension
liability, actuarial assumptions are of great importance for
the outcome of the calculation. The assessments mainly
concern the discount rate on commitments and expected
return on plan assets, but also assumptions about the rate
of wage increases, staff turnover and estimated life
expectancy. A reduced discount rate increases the
reported pension liability. The actual outcome may deviate
from the accounts in the case where the assumptions
applied have been shown to be incorrect. See Note 26
Pensions to see the assumptions used to determine future
pension obligations.
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Intangible assets mainly refer to goodwill, customer
contracts and customer relations. Goodwill with an
indefinite life expectancy is not subject to annual
depreciation. Insofar as the underlying activities develop
negatively, an impairment loss may arise. An impairment
test is carried out annually mainly based on the value of use,
with assumptions about sales development, profit margins,
current investments, changes in working capital and more.
It is our assessment that the going concern exists in all
Quant companies remaining in continued operations. On
24 March 2022 Quant announced a written procedure in
respect to its senior bonds which was approved on 7 April
2022. The approved amendments have consequences for
the majority ownership and external financing for the
Quant Group as a whole. Please see Note 36 Events after
the reporting period for more information.
NNoottee 33 Financial risk management framework
Through its operations, Quant is exposed to a number of
different financial risks: market risk (primarily currency risk
and interest rate risk), financing risk, credit risk and liquidity
risk. Financial risks arise when refinancing and credit risks
as well as changes in interest rates and exchange rates
affect the group's earnings, cash flow and value.
Quant has a central treasury function whose overall
objective is to act as the group's internal bank, to provide a
cost-effective and secure financing of the group, manage
interest rate and currency risks and ensure effective
liquidity management for the group. Treasury identifies,
evaluates and secures financial risks in close co-operation
with the group's operating units.
Quant has a finance policy approved by the Board whose
purpose is to limit the financial risks that Quant is exposed
to and determine how financial risks are to be controlled
and managed. The financial policy is revised annually. Risk
management and financing activities are reported
continuously to management and the Board of Directors.
The Board reviews and decides on strategies for managing
financial risks as summarized below.
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Currency risk
Quant's operations are conducted in several countries. The
Group is thereby exposed to currency risks, both through
transactions in foreign currencies and through the
translation of income statements and balance sheets into
euro. Quant's assets are contracts for the outsourcing of
industrial maintenance, which generate revenues and costs
mainly in SEK, EUR and USD but there is exposure in other
currencies as well. Changes in exchange rates in the
aforementioned non-euro currencies thus entail changes in
Quant's operating profit.
Sensitivity analysis exchange rate risk
Assuming that the currencies, significant for Quant's
earnings and cash flow, are weakened by 10% against the
group's functional currency, the group's EBITDA is affected
8% (11%). External borrowing is entirely in Euro which is the
Group’s functional currency and therefore there is no
exchange rate risk on external borrowing.
Transaction exposure
The group is exposed to different types of currency risks.
Transaction exposure is derived from the group's sales and
purchases in foreign currencies. These currency risks
consist partly of the risk of fluctuations in the value of
accounts receivable or accounts payable, and the currency
risk in expected and contracted cash flows.
5150
QUANT ANNUAL REPORT 2021
NOTES NOTES
QUANT ANNUAL REPORT 2021
Quant's operations are largely local in the countries where
the group is active. This means that the transaction
exposure risk is limited for the group. Quant's finance policy
stipulates no minimum for currency hedging of transaction
exposure, at the end of the year Quant had no transaction
exposure derivatives outstanding. The group's treasury
function evaluates the ongoing transaction exposure risk
and proposes hedging strategies.
Translation exposures
Currency risks are also found in the translation of foreign
subsidiaries' assets and liabilities to the parent company's
functional currency. Quant's exposure to translation risk
arises because a large proportion of the subsidiaries have a
functional currency that deviates from the accounting
currency of the group. In accordance with the financial
policy, Quant had not hedged the translation exposure at
the end of the financial year.
Financial currency exposure
The group is also exposed to currency risks with respect to
payment flows for loans and investments in foreign
currency. In accordance with the finance policy, the goal is
to limit currency effects on financial investments and loans.
Group companies lend and deposit liquidity internally in the
local currency of the respective borrowers to the extent
possible, depending on the local currency regulations and
or the convertibility of the currencies. The net exposure of
financial assets and liabilities is centralized to the parent
company and currency can be hedged according to the
group's finance policy. At the end of the period, Quant had
no financial hedge derivatives outstanding.
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Interest rate risk is the risk that market rates fluctuate in
such a way that Quant's net interest expense develops
negatively. The effect on the group's result of a change in
interest rates depends on the fixation periods of the loans
and investments and the current share of fixed and variable
interest rates. Since the group does not hold any significant
interest-bearing assets, in addition to bank balances, the
group's income from operating activities is essentially
independent of changes in market interest rates. Quant is
exposed to interest rate risk through interest-bearing
borrowing, which is one of the group's sources of finance
in addition to equity and cash flow from operating activities.
Interest-bearing borrowing consists mainly of centrally
agreed bonds, which runs both on fixed margin on floating
market rates, and on a fixed interest rate. In order to limit
interest rate risk, Quant has the policy option of entering
into interest rate derivatives in order to reduce the effects
of future interest fluctuations by changing parts of the
variable interest rate at a fixed rate. On December 31, 2021
there were no such interest rate derivative outstanding.
The average fixation period for the group's borrowings
(excluding shareholder loans) at the end of 2021 was 1.2
(2.0) years. On the basis of interest rate exposure as of
December 31, 2021, a change in market interest rates of one
percentage point would affect the group's net financial
items by EUR +/- 1.0 (1.0) million. The simulation assumes a
parallel shift of all interest rate curves and does not take into
account any currency and maturity differences.
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The credit risk on financial assets arises related to cash and
cash equivalents and accounts receivable from customers.
Credit risk related to bank balances are limited to where the
Group has bank accounts. The group's liquidity is
concentrated, according to the Group’s finance policy, to
the parent company and banks with a high rating. The
liquidity that remains in the group companies within Quant
is usually spread evenly across companies and thus evenly
spread on different banks in different geographical areas.
Responsibility for credit risk related to accounts receivable
and accrued income lies with individual group companies.
The credit risk for each new customer is analyzed before
the customer contract is finalized. A risk assessment of
creditworthiness is carried out regularly by observing the
customer’s financial position and other influencing factors,
as well as previous experience.
Impairment of financial assets must be based on expected
credit losses for the remaining term of the financial asset.
In compliance with IFRS 9 Financial Instruments, Quant
applies a simplified impairment model for accounts
receivable, whereby the expected credit loss is recognized
for the estimated remaining lifetime of the receivable. The
provision for doubtful accounts receivable is based on an
individual assessment of overdue receivables for each
customer. A continuous assessment is made of the credit
risk in receivables outstanding and at December 31, 2021
the provision for bad debts amounted to EUR 0.0 (0.8)
million. Further information regarding Accounts receivable
and contract assets and provision for bad debts are found
in note 23.
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Liquidity risk is defined as the risk that Quant cannot fulfil
its obligations to pay debts on time or at a reasonable cost.
The group's capital management aims to create a balance
between equity and loan financing so that financing of
operations is secured at a reasonable cost of capital. The
aim is to finance growth and normal investments with own
generated cash flow as far as possible. Risks are managed
centrally for the entire group by the central treasury
function. The group's goal is to always have sufficient funds
in available liquidity and unused loan facilities, a so- called
liquidity reserve, to cover 45 days of the group's
disbursement needs. Liquidity is monitored continuously to
meet expected disbursement needs.
Refinancing is defined as the risk that financing or
refinancing is difficult or costly to obtain. Quant has access
to funding through the money market and the Board of
Directors continuously monitors and evaluates the group's
financing and refinancing possibilities over time.
F
F
i
i
n
n
a
a
n
n
c
c
i
i
a
a
l
l
c
c
o
o
v
v
e
e
n
n
a
a
n
n
t
t
s
s
The group's bonds and its bank facility contain financial commitments, so called covenants, where the group has committed
to maintain financial ratios. The bond agreements contain covenants where the group's borrowing against the result does not
exceed certain ratios. These covenants are measured only under certain circumstances. The working capital facility contains
covenants where drawn working capital facility loans against the group's results may not exceed certain ratios and which are
measured quarterly in connection with the quarterly report. The bond and facility agreements are also restrictive in relation
to, inter alia, borrowings, the establishment of security or guarantees, acquisitions and sales of companies.
M
M
a
a
t
t
u
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r
r
i
i
t
t
y
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s
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l
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l
i
i
a
a
b
b
i
i
l
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t
t
i
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e
e
s
s
–
–
u
u
n
n
d
d
i
i
s
s
c
c
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d
d
c
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f
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w
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The table below shows the undiscounted cash flows relating to the group's interest-bearing financial liabilities based on the
remaining maturities of the annual accounts. Variable interest flows with future rate setting days are based on interest rates
at year-end. Cash flows in foreign currencies are converted to euro at the balance rates.
2
2
0
0
2
2
1
1
Nominal amount, K
Total KEUR
<1 year
1-5 years
> 5 years
Senior Secured Bonds (EUR)
92,000
92,000
–
92,000
–
Junior Secured Bonds (EUR)
46,927
46,927
–
46,927
–
Super Senior RCF (EUR) 4,000
4,000
4,000
–
–
External loan (SEK)
25,718
2,509
2,509
–
–
Shareholder loan (intragroup) (EUR)
2,093
2,093
2,093
–
–
Capitalized borrowing costs
-2,587
-1,951
-635
–
Leasing liabilities
3,371
1,869
1,502
–
Trade payables
8,298
8,298
–
–
Other
7,840
7,840
–
–
TToottaall
116644,,445500
2244,,665566
113399,,779944
––
Interest expense
16,565
11,362
5,203
–
TToottaall
118811,,001155
3366,,001188
111144,,999977
––
2
2
0
0
2
2
0
0
Nom. amount, K local ccy
Total KEUR
<1 year
1-5 years
> 5 years
Senior Secured Bonds (EUR)
92,000
92,000
–
92,000
–
Junior Secured Bonds (EUR)
40,894
40,894
–
40,894
–
Super Senior RCF (EUR)
11,000
11,000
11,000
–
–
External loan (intragroup) (SEK)
23,813
2,373
2,373
–
–
Shareholder loan (intragroup) (EUR)
2,012
2,012
2,012
–
–
Capitalized borrowing costs
-3,423
-824
-2,599
–
Leasing liabilities
4,823
2,496
2,328
–
Trade payables
10,802
10,802
–
–
Other liabilities
7,566
7,566
–
–
TToottaall
116688,,004488
3355,,442255
113322,,662233
––
Interest expense
28,778
10,784
17,993
–
TToottaall
119966,,882266
4466,,220099
115500,,661177
––
Capital management
The group's goal is to generate returns to its owners while maintaining a good financial position, which helps to maintain
the confidence of investors, creditors, customers and suppliers. In addition to equity, the group is financed through the
bank facilities, which contains financial commitments, so called covenants, which limits the group's ability to act freely. For
more information, see note 28 Interest-bearing liabilities.
5352
QUANT ANNUAL REPORT 2021
NOTES NOTES
QUANT ANNUAL REPORT 2021
N
N
o
o
t
t
e
e
4
4
Segment reporting
EEuurrooppee
AAmmeerriiccaass
FFiinnllaanndd && BBaallttiiccss
22002211
22002200
22002211
22002200
22002211
22002200
Net sales external
66,882
60,162
39,249
42,512
58,304
60,822
Net sales intra-segment
794
1,010
74
64
970
712
TToottaall nneett ssaalleess
6677,,667755
6611,,117722
3399,,332233
4422,,557766
5599,,227744
6611,,553344
Cost of sales
-56,362
-47,992
-33,825
-37,514
-51,984
-55,074
GGrroossss pprrooffiitt
1111,,331133
1133,,118811
55,,449988
55,,006622
77,,229911
66,,446600
Operating expenses
-7,791
-7,574
-4,115
-3,415
-5,110
-5,178
OOppeerraattiinngg pprrooffiitt ((lloossss))
33,,552233
55,,660077
11,,338833
11,,664477
22,,118811
11,,228833
Depreciation
91
89
357
506
227
253
Amortization
21
49
22
24
71
65
Write-down of intangible assets
22
-
-
-
-
-
EEBBIITTDDAA bbeeffoorree nnoonn--rreeccuurrrriinngg iitteemmss
33,,665577
55,,774444
11,,776622
22,,117777
22,,447799
11,,660011
Non-recurring items
-
111
-
-
-
216
AAddjjuusstteedd EEBBIITTDDAA IIFFRRSS1166
AAddjjuusstteedd EEBBIITTDDAA mmaarrggiinn
IFRS 16 impact on EBITDA
AAddjjuusstteedd EEBBIITTDDAA
33,,665577
55,,885566
11,,776622
22,,117777
22,,447799
11,,881177
AAddjjuusstteedd EEBBIITTDDAA mmaarrggiinn
55..55%%
99..77%%
44..55%%
55..11%%
44..33%%
33..00%%
Financial items*
PPrrooffiitt//lloossss bbeeffoorree ttaaxxeess
Taxes*
LLoossss ffoorr tthhee yyeeaarr
OOtthheerr aanndd eelliimmiinn
GGrroouupp ((CCoonnttiinnuuiinngg ooppeerraattiioonnss))
22002211
22002200
22002211
22002200
Net sales external
-
-
164,435
163,497
Net sales intra-segment
-1,837
-1,786
-
-
TToottaall nneett ssaalleess
--11,,883377
--11,,778866
116644,,443355
116633,,449977
Cost of sales
-1,037
-3,383
-143,207
-143,962
GGrroossss pprrooffiitt
--22,,887744
--55,,116688
2211,,222288
1199,,553355
Operating expenses
-7,409
-7,534
-24,425
-23,701
OOppeerraattiinngg pprrooffiitt ((lloossss))
--1100,,228833
--1122,,770022
--33,,119977
--44,,116666
Depreciation
6
15
681
863
Amortization
8,968
9,537
9,082
9,676
Write-down of intangible assets
-
-
22
-
EEBBIITTDDAA bbeeffoorree nnoonn--rreeccuurrrriinngg iitteemmss
--11,,331100
--33,,115500
66,,558888
66,,337733
Non-recurring items
621
348
621
675
AAddjjuusstteedd EEBBIITTDDAA IIFFRRSS1166
99,,778866
1100,,446699
AAddjjuusstteedd EEBBIITTDDAA mmaarrggiinn
66..00%%
66..44%%
IFRS 16 impact on EBITDA
-2,577
-3,421
AAddjjuusstteedd EEBBIITTDDAA
--668888
--22,,880022
77,,220099
77,,004488
AAddjjuusstteedd EEBBIITTDDAA mmaarrggiinn
44..44%%
44..33%%
Financial items*
-14,148
-16,243
PPrrooffiitt//lloossss bbeeffoorree ttaaxxeess
--1166,,992266
--1199,,994422
Taxes*
1,426
1,867
LLoossss ffoorr tthhee yyeeaarr
--1155,,550000
--1188,,007744
*
*
Group management does not follow up Financial items and Taxes per segment.
Operating segments are reported in a manner consistent
with the internal reporting presented to the chief operating
decision maker. The chief operating decision maker is the
function responsible for allocation of resources and
analysing the segment’s performance and profitability. At
Quant, this function has been identified as the CEO who is
responsible for and deals with the day-to-day
administration of the Group based on guidelines and
instructions from the Board of Director’s. The Group
management team supports the CEO in this endeavour.
Quant's operations are organized geographically and
management follows up the business in three operating
geographic regions: Europe, Americas, and Finland &
Baltics. Region Other refers primarily to costs for
headquarter functions that have not been operationally
allocated to the geographic segments. The Group’s
segments are structured geographically because Quant
delivers its services locally with Quant teams at sites in each
country. Regional management is responsible for all
operations, new sales, budgets, and outcomes.
Quant’s business offering is entirely related to the supply of
industrial maintenance services to its customers, therefore
there is no further split of revenues into different types of
services supplied.
For 2021, there is no customer who accounts for more than
10% of Quant’s external revenue.
G
G
e
e
o
o
g
g
r
r
a
a
p
p
h
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i
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c
a
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a
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s
s
Sales figures are based on the country in which the
customer is located. Assets are reported based on the
location of the asset.
RReevveennuuee
KKEEUURR
22002211
22002200
Sweden
31,159
30,745
Finland
52,181
54,419
Chile
22,519
29,908
Other countries
58,577
48,426
TToottaall
116644,,443355
116633,,449977
NNoonn--ccuurrrreenntt aasssseettss**
KKEEUURR
22002211
22002200
Sweden
1,580
2,609
Finland 1,062
1,147
Chile
925
1,391
Other 1,346
1,313
TToottaall
44,,991122
66,,446600
*Excluding pension assets but including right-of-use assets
5554
QUANT ANNUAL REPORT 2021
NOTES NOTES
QUANT ANNUAL REPORT 2021
NNoottee 55 Revenue
Quant is a supplier of industrial maintenance services
whose customers are comprised of industrial facilities such
as production factories, pulp and paper mills and mining
operations. Quant enters into long-term contracts with its
customers, in which Quant commits to maintaining a
facility, including areas such as maintaining production
equipment, and improving the safety, performance,
reliability and energy efficiency of the facility. Quant’s
revenue is comprised solely of the performance of facility
maintenance services and these are a single performance
obligation which is delivered over a period of time, the
contract period.
The main type of customer contract is fixed price for a
period of normally 3 to 5 years, where a yearly fixed price is
determined in return for agreed upon maintenance
services. Revenue for these contracts is recognized on a
straight-line basis evenly over the year when the delivery of
services and corresponding costs incurred are stable
throughout the year. However, in some production facilities
there may be a period during the year of more intense
maintenance service requirements during production
shutdowns, with a higher portion of the annual revenue
recognized in these periods. In such cases the input
method is used whereby revenue is recognized on the basis
of the inputs toward the total yearly contract commitment
during these periods relative to the total expected inputs
toward the total contract commitment for the year. The
inputs are costs incurred and are comprised primarily of
labor hours expended and materials consumed.
In a fixed price contract, Quant’s sole commitment and
performance obligation to the customer is the maintenance
services of the facility, including the reparation of
equipment and machinery. Therefore, revenue is not
recognized separately for spare parts used in the
maintenance process. Spare parts procured to maintain the
facility are reported as cost of sales by Quant as part of the
cost of fulfilling its total maintenance commitment and are
not sold separately to the customer at a profit.
To a lesser extent, Quant enters into cost-plus customer
contracts, where an agreed upon profit margin is added to
the incurred cost of maintenance services during the
period, such as employee costs and materials. The amount
of cost-plus profit is the revenue recognized during the
period, together with the related costs incurred during that
period. Hybrid contracts of both a fixed price element and
a cost-plus element exist.
Customer contracts can include variable considerations in
the form of bonuses or penalties based on agreed and pre-
determined performance objectives (KPIs). Revenue
recognition is based on the most likely amount method
based on performance outcome during the period.
For new contracts where Quant assumes the start-up costs
these costs, such as employee recruitment and education,
are recognized as an asset in statement of financial position
and recognized over the contract period as an expense in
the income statement. Investments in equipment and tools
are recognized as fixed assets and depreciated over the
contract period. In some cases, invoices are not sent in the
same period as the service rendered but are reported in the
statement of financial position as accrued or deferred
revenue.
O
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Quant’s customer contracts mainly consist of multi-year
contracts, where the customer may or may not have the
possibility to terminate prematurely. To give an accurate
view of the order backlog, it is management’s view that a
better representation than the aggregate value of all
contract revenue is the Contract portfolio. At 31 December
2021, Quant’s contract portfolio was EUR 172.8 (140.5)
million.
Quant’s definition of contract portfolio is the annualized
value of current customer contracts, adjusted for
Signed new contracts, included at date of contract
signing, irrespective of start date
Terminated contracts, excluded at date of formal
notification, irrespective of end date
Changes formally agreed with the customers of
existing contracts, included at date of agreement.
This includes changes due to renewals of contracts
or other reasons
N
N
o
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6
6
Employees and personnel costs
A
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22002211
ooff wwhhiicchh mmeenn,, %%
22002200
ooff wwhhiicchh mmeenn,, %%
PPaarreenntt
Sweden
7
58%
9
67%
TToottaall iinn tthhee ppaarreenntt ccoommppaannyy
7
58%
9
67%
GGrroouupp
Sweden
259
89%
256
91%
Denmark
11
100%
28
99%
Estonia
102
78%
110
80%
Finland
458
97%
511
96%
Germany
1
100%
1
100%
Czech Republic
23
100%
47
100%
Poland
10
95%
18
95%
Hungary
5
100%
5
100%
Peru
11
95%
0
-
Norway
141
96%
18
106%
Switzerland
25
87%
28
86%
Great Britain
0
-
3
100%
Spain
24
84%
30
86%
Italy
0
-
5
92%
United Arab Emirates
118
100%
109
100%
Mexico
11
70%
10
68%
USA
33
97%
29
96%
Argentina
23
100%
24
100%
Brazil
487
91%
278
91%
Chile
610
95%
714
96%
South Africa
0
-
1
100%
China
15
77%
123
88%
TToottaall GGrroouupp iinncclluuddiinngg PPaarreenntt ccoommppaannyy
22,,337733
9933%%
22,,335577
9944%%
Of which discontinued operations
16
78%
129
96%
Continuing operations
2,357
93%
2,228
94%
TToottaall GGrroouupp iinncclluuddiinngg PPaarreenntt ccoommppaannyy
22,,337733
22,,335577
GGeennddeerr ddiissttrriibbuuttiioonn iinn oonn tthhee BBooaarrdd ooff DDiirreeccttoorrss aanndd iinn GGrroouupp mmaannaaggeemmeenntt
22002211
22002200
Of which women,
%
Of which women, %
Board of Directors
0%
0%
Other senior executives
0%
20%
5756
QUANT ANNUAL REPORT 2021
NOTES NOTES
QUANT ANNUAL REPORT 2021
SSaallaarriieess,, ootthheerr rreemmuunneerraattiioonnss aanndd ssoocciiaall eexxppeennsseess
KKEEUURR
22002211
22002200
Salaries and
remuneration
Social security
contributions
Salaries and
remuneration
Social security
contributions
Parent company
1,450
896
2,093
1,014
of which pension costs, 1)
539
550
Subsidiaries
79,186
21,071
73,633
21,461
of which pension costs
6,572
6,176
GGrroouupp iinn TToottaall
8800,,663366
2211,,996677
7755,,772277
2222,,447755
Of which Discontinued operations 2)
619
145
3,447
569
Continuing operations 2)
80,017
21,822
72,279
21,906
of which pension costs continuing operations
7,090
6,688
1) Of the Parent company's pension costs, EUR 351 (388) thousand is for senior management, in total 4 (5) persons. CEO pension costs
amounted to EUR 162 (123) thousand. In 2021 an adjustment for previous years’ pension tax amounted to EUR 34 thousand
and is included
in the 2021 CEO pension costs.
2) Restated figures for 2020 due to discontinuing of China operations from January 2021.
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KKEEUURR
22002211
22002200
Board and CEO
Other senior
executives
Board and CEO
Other senior
executives
Group
518
499
553
857
of which bonus, etc
8
9
87
41
GGrroouupp iinn TToottaall
551188
449999
555533
885577
oo
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KEUR
22002211
22002200
Mikael Norin, Chairman
54
53
Olof Faxander
11
11
Per Hallius
25
24
Casper Lerche
10
10
Henrik Sandréus
10
10
Pierre Schöld
-
-
TToottaall BBooaarrdd ooff DDiirreeccttoorrss
110099
110077
In 2021, the CEO was entitled to a maximum of 10 monthly salaries as a bonus. Other senior executives were entitled to
between 25% and 40% of annual salary (defined as monthly salary times twelve). Total remuneration to the CEO including
bonus for the financial year 2021 amounted to EUR 0.4 (0.4) million. Salaries and remuneration for senior executives,
excluding the Board of Directors and the CEO, amounted to EUR 0.5 (0.9) million. During the year, senior executives
consisted of CEO, CFO, COO (January 1 through August 31) and General Counsel.
From 2015 through 2020, management has been offered to purchase common shares and preferred shares in Cidron Full
Service Top Holding AB. As the acquisition of these shares has been made at market value, no cost is incurred.
S
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The new CEO has a 6 months’ notice period and the right to 6 months’ severance. Other senior executives have up to 6
months’ notice period and up to 6 months’ severance pay.
NNoottee 77 Auditors' fees
Group
Parent company
KKEEUURR
22002211
22002200
22002211
22002200
PPrriicceewwaatteerrhhoouusseeCCooooppeerrss
Audit engagement
292
292
112
82
Audit activities not including audit engagement
4
-
-
-
TToottaall PPrriicceewwaatteerrhhoouusseeCCooooppeerrss
229966
229922
111122
8822
OOtthheerr aauuddiittoorrss
Audit engagement
50
33
-
-
Audit activities not including audit engagement
17
19
-
-
Other services
-
8
-
-
TToottaall OOtthheerr aauuddiittoorrss
6677
6611
--
--
TToottaall AAuuddiittoorrss'' ffeeeess
336633
335533
111122
8822
N
N
o
o
t
t
e
e
8
8
Expenses by Nature
CCoonnttiinnuuiinngg ooppeerraattiioonnss
Group
Parent company
KKEEUURR
22002211
22002200
22002211
22002200
Materials and consumables
17,779
19,424
-
-
Personnel expenses
107,538
104,451
2,393
3,171
Other external expenses
29,954
29,771
5,708
4,940
Depreciation, amortization and impairment
11,942
13,492
154
169
TToottaall eexxppeennsseess
116677,,221133
116677,,113388
88,,225544
88,,228800
N
N
o
o
t
t
e
e
9
9
Interest income and similar profit/loss items
CCoonnttiinnuuiinngg ooppeerraattiioonnss
Group
Parent company
KKEEUURR
22002211
22002200
22002211
22002200
Interest income, external
22
43
2
-
Group contributions received
-
-
-
2,701
Interest income, group companies
-
-
2,843
3,403
Foreign exchange gains
-
-
24
-
TToottaall
2222
4433
22,,886688
66,,110044
5958
QUANT ANNUAL REPORT 2021
NOTES NOTES
QUANT ANNUAL REPORT 2021
N
N
o
o
t
t
e
e
1
1
0
0
Financial expenses
C
C
o
o
n
n
t
t
i
i
n
n
u
u
i
i
n
n
g
g
o
o
p
p
e
e
r
r
a
a
t
t
i
i
o
o
n
n
s
s
Group
Parent company
KKEEUURR
22002211
22002200
22002211
22002200
Interest expense, external
-12,222
-12,318
-12,164
-12,250
Interest expense, group companies
-
-
-47
-74
Interest expense leasing
-351
-506
-48
-59
Write down of shares in subsidiaries
-
-
-5,000
-
Write down of loan to subsidiary
-
-
-330
-
Foreign exchange losses
-575
-3,149
-
-3,616
Other
-1,022
-313
-977
-447
TToottaall ffiinnaanncciiaall ccoossttss
--1144,,117700
--1166,,228866
--1188,,556666
--1166,,444466
GGrroouupp ccoonnttrriibbuuttiioonnss ppaaiidd
--
--
-1,026
--
GGrroouupp ccoonnttrriibbuuttiioonnss rreecceeiivveedd
--
--
--
--
N
N
o
o
t
t
e
e
1
1
1
1
Taxes
Group
Parent company
KKEEUURR
22002211
22002200
22002211
22002200
Current tax
-674
-504
-369
-144
Current tax attributable to previous year
-191
-94
-
-
Deferred tax
2,291
2,465
224
-
TToottaall ttaaxxeess
11,,442266
11,,886677
--114455
--114444
RReeccoonncciilliiaattiioonn ooff eeffffeeccttiivvee ttaaxx
GGrroouupp
KKEEUURR
22002211 %%
22002211
22002200 %%
22002200
PPrrooffiitt bbeeffoorree ttaaxx
--2244,,334477
--2200,,005533
Tax according to applicable tax rates for the parent
21%
5,210
21%
4,291
Effect of other tax rates on foreign subsidiaries
2%
478
2%
356
Non-deductible costs
-28%
-6,821
-28%
-5,559
Non-taxable income
0%
12
2%
451
Withholding tax
1%
277
1%
144
Deferred tax on temporary differences
9%
2,292
12%
2,464
Effects of loss carryforward, net
1%
95
-2%
-484
Tax attributable to previous years
0%
-118
0%
27
RReeppoorrtteedd eeffffeeccttiivvee ttaaxx**
66%%
11,,442266
88%%
11,,669911
PPaarreenntt ccoommppaannyy
KKEEUURR
2
2
0
0
2
2
1
1
%
%
2
2
0
0
2
2
1
1
2
2
0
0
2
2
0
0
%
%
2
2
0
0
2
2
0
0
PPrrooffiitt bbeeffoorree ttaaxx
--99,,222266
--77,,881133
Tax according to applicable tax rates for the parent
21%
1,974
21%
1,672
Non-deductible costs
-29%
-2,636
-27%
-2,132
Withholding tax
3%
277
2%
144
Deferred tax on temporary differences
2%
224
-
Utilization of tax loss carryforwards not previously
0%
16
2%
172
RReeppoorrtteedd eeffffeeccttiivvee ttaaxx
--22%%
--114455
--22%%
--114444
*Of which EUR 1,362 (1,867) thousand is continued operations and EUR 64 (-177) thousand related to discontinued operations.
The Group’s unutilized loss carry-
forwards for which no deferred tax assets are recognized amount to EUR 34 (36) million. Of this amount,
EUR 14 million has no expiration date, EUR 17 million expires in 5 to 10
years and EUR 3 million expires in less than 5 years. The Group’s
consolidated statement of financial position currently contains no deferred tax assets relating to accumulate loss carry-forwards.
N
N
o
o
t
t
e
e
1
1
2
2
Earnings per share
GGrroouupp ttoottaall
Group
KKEEUURR
22002211
22002200
Net loss for the year attributable to Parent company shareholders
-22,858
-18,362
Weighted average number of shares outstanding during the year
500,000
500,000
**EEaarrnniinnggss ppeerr sshhaarree bbaassiicc,, EEUURR
--4455..7722
--3377..8899
CCoonnttiinnuuiinngg ooppeerraattiioonnss
KEUR
2021
2020
Net loss for the year attributable to Parent company shareholders
-15,500
-18,074
Weighted average number of shares outstanding during the year
500,000
500,000
EEaarrnniinnggss ppeerr sshhaarree bbaassiicc,, EEUURR
--3300..9922
--3377..3311
DDiissccoonnttiinnuueedd ooppeerraattiioonnss
KEUR
2021
2020
Net loss for the year attributable to Parent company shareholders
-7,358
-288
Weighted average number of shares outstanding during the year
500,000
500,000
EEaarrnniinnggss ppeerr sshhaarree bbaassiicc,, EEUURR
--1144..7722
--00..5588
The Group has no employee incentive program that would have a dilutive effect on the Parent company's ordinary shares outstanding.
Therefore, only Earnings per share basic is presented, and diluted Earnings per share is not calculated.
NNuummbbeerr ooff sshhaarreess aanndd sshhaarree ccaappiittaall
The total number of shares in the Parent company is 500,000 (500,000) and the entire amount is comprised
Share capital in the Parent company is EUR 52,733 (52,733).
N
N
o
o
t
t
e
e
1
1
3
3
Goodwill
Group
KKEEUURR
22002211
22002200
Opening acquisition cost
86,029
87,345
Translation differences
93
-1,316
Closing acquisition cost 86,122
86,029
Opening accumulated impairment losses
-8,142
-9,300
Impairment losses
-5,161
-
Translation differences
-293
1,158
Closing accumulated impairment losses
-13,596
-8,142
NNeett ccaarrrryyiinngg aammoouunntt aatt yyeeaarr--eenndd
7722,,552277
7777,,888877
6160
QUANT ANNUAL REPORT 2021
NOTES NOTES
QUANT ANNUAL REPORT 2021
N
N
o
o
t
t
e
e
1
1
4
4
Customer contracts
Group
KKEEUURR
22002211
22002200
Opening acquisition cost
49,895
58,624
Acquisitions
0
0
Disposal
-
-7,937
Translation differences
185
-792
Closing acquisition cost
50,080
49,895
Opening accumulated amortization
-37,559
-33,619
Disposal
-
2,462
Amortization for the period
-6,701
-7,052
Translation differences -147
650
Closing accumulated amortization
-44,407
-37,559
Opening accumulated impairment losses -1,303
-6,610
Impairment losses -394
-
Translation differences
-22
-168
Closing accumulated impairment losses
-1,718
-1,303
NNeett ccaarrrryyiinngg aammoouunntt aatt yyeeaarr--eenndd
33,,995544
1111,,003333
For information regarding impairment testing see note 17.
NNoottee 1155 Customer relations
Group
K
K
E
E
U
U
R
R
2
2
0
0
2
2
1
1
2
2
0
0
2
2
0
0
Opening acquisition cost
28,735
33,522
Disposal
-
-3,995
Translation differences
34
-792
Closing acquisition cost
28,769
28,735
Opening accumulated amortization
-13,947
-13,507
Disposal
-
1,781
Amortization for the period
-2,267
-2,614
Translation differences
-8
393
Closing accumulated amortization
-16,222
-13,947
Opening accumulated impairment losses
-1,913
-4,384
Disposal
-
2,214
Impairment losses -753
-
Translation differences -42
258
Closing accumulated impairment losses
-2,707
-1,913
NNeett ccaarrrryyiinngg aammoouunntt aatt yyeeaarr--eenndd
99,,884400
1122,,887766
N
N
o
o
t
t
e
e
1
1
6
6
Other intangible assets
Group
Parent company
KKEEUURR
22002211
22002200
22002211
22002200
Opening acquisition cost
9,549
9,539
7,676
7,676
Investments
50
19
-
-
Disposals -6
-5
-
-
Reclassifications to discontinued operations
-715
-
7,676
7,676
Translation differences
-19
-4
0
0
Closing acquisition cost
8,858
9,549
7,676
7,676
Opening accumulated amortization
-9,156
-8,967
-7,676
-7,670
Disposals
4
2
-
-
Amortization for the year
-112
-188
-
-5
Reclassifications to discontinued operations
513
-3
-7,676
-7,676
Translation differences
18
-3
-
-
Closing accumulated amortization
-8,734
-9,156
-7,676
-7,676
Opening accumulated impairment losses
Impairment losses
-22
-
-
-
Closing accumulated impairment losses
-22
-
-
-
NNeett ccaarrrryyiinngg aammoouunntt aatt yyeeaarr--eenndd
110033
339922
--
--
NNoottee 1177 Impairment
On 1 January 2021, Quant’s organizational structure was
changed. United Arab Emirates, previously reported in
segment Rest of World, is now included in segment Europe
& Middle East. Quant has taken the decision to exit China,
therefore China, previously reported under segment Rest of
World, is reported in segment Other and reported as
discontinued operations. The segment reporting has been
updated to reflect the change in organizational structure
which is as follows:
Europe & Middle East
Americas
Finland & Baltics
Quant carried out its annual impairment test on Goodwill as
of 31 December 2021. Quant tested if the carrying amount
of the cash-generating units exceeded their recoverable
amount. The recoverable amount represents the highest of
the net realizable value of an asset and its value in use, i.e.
the discounted present value of future cash flows.
The recoverable amount of these cash-generating units is
based on the calculation of value through the use of cash
flow forecasts based on budgets approved by management
that spans a period of three years. Impairment tests are
carried out by each region (each a cash generating unit)
using the following assumptions:
Europe & Middle East
Cash flow forecasts for the three-year period are based on
an average annual growth rate of 13 percent. Cash flows
beyond the three-year period are extrapolated using an
estimated long-term growth rate of 2 percent. The discount
rate used for calculating recoverable amounts is 8.1 percent
before tax. Due to the new CGU structure implemented in
2021 a previous year comparison is not available.
Americas
Cash flow forecasts for the three-year period are based on
an average annual growth rate of 35.1 (27.8) percent. Cash
flows beyond the three-year period are extrapolated using
an estimated long-term growth rate of 2 (2) percent. The
discount rate used for calculating recoverable amounts is
9.4 (8.2) percent before tax.
Finland and Baltics
Cash flow forecasts for the three-year period are based on
an average annual growth rate of 6.3 (8.1) percent. Cash
flows beyond the three-year period are extrapolated using
an estimated long-term growth rate of 2 percent. The
discount rate used for calculating recoverable amounts is
8.7 (7.8) percent before tax.
The result of the impairment test has meant that the
management did not identify any impairment, with respect
to any CGU.
6362
QUANT ANNUAL REPORT 2021
NOTES NOTES
QUANT ANNUAL REPORT 2021
R
R
e
e
p
p
o
o
r
r
t
t
e
e
d
d
v
v
a
a
l
l
u
u
e
e
s
s
o
o
f
f
h
h
o
o
w
w
G
G
o
o
o
o
d
d
w
w
i
i
l
l
l
l
a
a
n
n
d
d
o
o
t
t
h
h
e
e
r
r
i
i
n
n
t
t
a
a
n
n
g
g
i
i
b
b
l
l
e
e
a
a
s
s
s
s
e
e
t
t
s
s
h
h
a
a
v
v
e
e
b
b
e
e
e
e
n
n
a
a
l
l
l
l
o
o
c
c
a
a
t
t
e
e
d
d
t
t
o
o
t
t
h
h
e
e
C
C
G
G
U
U
22002211
KEUR
Customer contracts
Customer relations
Goodwill
Total
Europe
-
2,416
30,298
32,714
Americas
-
2,358
8,601
10,959
Finland & Baltics
3,954
5,066
33,628
42,648
TToottaall
33,,995544
99,,884400
7722,,552277
8866,,332211
22002200
KEUR
Customer contracts
Customer relations
Goodwill
Total
Europe
1,691
3,002
30,574
35,268
Americas
1,376
3,027
8,778
13,181
Finland & Baltics
7,591
6,130
33,628
47,350
TToottaall
1100,,665588
1122,,116600
7722,,998800
9955,,779988
Significant assumptions used in the calculations of value for use
The calculations of carrying values for all CGU are most susceptible to deviations from the following assumptions:
Forecasts, including operating margin and sales growth
Discount rate
Growth rates used to extrapolate cash flows beyond the forecast period
D
D
i
i
s
s
c
c
o
o
u
u
n
n
t
t
r
r
a
a
t
t
e
e
s
s
The discount rate represents the financial market’s
assessment of the risks specific to the company, taking into
account both the time value of money and individual risks.
The calculation of the discount rate is based on specific
circumstances attributable to the company and originates
in it weighted average cost of capital (WACC). The
calculation of the WACC takes into account that the
operations are both leveraged and financed with equity.
The cost of equity is based on the expectation of a certain
return on capital invested in the financial market. Specific
risks are included in the calculation by applying an
individual beta value. Beta value is updated annually based
on publicly available market data.
G
G
r
r
o
o
w
w
t
t
h
h
t
t
h
h
a
a
t
t
i
i
s
s
u
u
s
s
e
e
d
d
t
t
o
o
e
e
x
x
t
t
r
r
a
a
p
p
o
o
l
l
a
a
t
t
e
e
c
c
a
a
s
s
h
h
f
f
l
l
o
o
w
w
s
s
b
b
e
e
y
y
o
o
n
n
d
d
f
f
o
o
r
r
e
e
c
c
a
a
s
s
t
t
p
p
e
e
r
r
i
i
o
o
d
d
s
s
Long-term growth rates are a conservative assessment as
they are set to anticipated long-term inflation.
S
S
e
e
n
n
s
s
i
i
t
t
i
i
v
v
i
i
t
t
y
y
t
t
o
o
c
c
h
h
a
a
n
n
g
g
e
e
s
s
a
a
n
n
d
d
a
a
s
s
s
s
u
u
m
m
p
p
t
t
i
i
o
o
n
n
s
s
With regard to the calculation of the carrying values, the
management considers that no reasonable changes to
any of the most important assumptions would result in a
materially higher value of the carrying amount of the
recoverable amount.
O
O
t
t
h
h
e
e
r
r
i
i
m
m
p
p
a
a
i
i
r
r
m
m
e
e
n
n
t
t
t
t
e
e
s
s
t
t
s
s
Other than the impairment previously mentioned on
customer relations due to the decision to exit certain
countries, other intangible assets with a definite useful life
were not tested for impairment as there was no indication
that an impairment test was necessary.
N
N
o
o
t
t
e
e
1
1
8
8
Property, plant and equipment
Group
Parent company
KKEEUURR
22002211
22002200
22002211
22002200
Opening acquisition cost
6,641
7,505
80
80
Investments
894
693
-
-
Discontinued operations
-182
-
-
-
Sold/Scrapped
-511
-1,204
-
-
Reclassifications
0
4
-
-
Translation differences -176
-357
-
-
Closing acquisition cost
6,668
6,641
80
80
Opening accumulated depreciation
-5,189
-5,240
-74
-59
Discontinued operations
171
-
Sold/Scrapped
479
709
-
-
Reclassifications
0
-4
-
-
Depreciation for the year
-686
-939
-6
-15
Translation differences
155
285
-
-
Closing accumulated depreciation
-5,070
-5,189
-80
-74
NNeett ccaarrrryyiinngg aammoouunntt aatt yyeeaarr--eenndd
11,,559988
11,,445533
--
66
N
N
o
o
t
t
e
e
1
1
9
9
Leases
Group
Parent company
KKEEUURR
22002211
22002200
22002211
22002200
Amounts related to leases recognized in the statement of financial position:
Right-of-use assets
Vehicles
2,143
3,201
-
-
Buildings 1,042
1,381
519
667
TToottaall
33,,118855
44,,558833
551199
666677
TToottaall rriigghhtt--ooff--uussee aasssseettss
33,,112266
44,,550044
447722
662200
Lease liabilities
Non-current
1,502
2,328
353
491
Current
1,869
2,496
178
178
TToottaall lliiaabbiilliittiieess
33,,337711
44,,882233
553300
666688
Amounts related to leases recognized in the income statement
Depreciation charge of right-of-use assets
Vehicles
1,500
2,298
-
-
Buildings
658
707
148
148
TToottaall
22,,115588
33,,000055
114488
114488
Interest expense (included in finance cost)
351
520
48
59
Expense relating to short-term leases
(included in cost of goods sold and administrative expenses)
318
117
-
-
Expenses relating to leases of low value assets that are not shown
above as short-term leases (included in administrative expenses)
54
77
4
11
TToottaall ccaasshh oouuttffllooww ffoorr lleeaasseess
22,,888811
33,,771199
220011
221188
Additions to the right-of use assets during 2021 amounted to EUR 1.6 (1.0) million
Currency exchange rates impacted the value of right of use assets by EUR -0.1 (-0.1) million
For maturity analysis of leasing liabilities, see Note 2 Financial risks.
6564
QUANT ANNUAL REPORT 2021
NOTES NOTES
QUANT ANNUAL REPORT 2021
N
N
o
o
t
t
e
e
2
2
0
0
Participation in Group companies
KKEEUURR
22002211
22002200
Acquisition cost
101,285
101,285
Impairment of shares in subsidiaries
-5,000
-
Closing acquisition cost
96,285
101,285
NNeett ccaarrrryyiinngg aammoouunntt aatt yyeeaarr--eenndd
96,285
101,285
PPaarreenntt ccoommppaannyy aanndd GGrroouupp hhoollddiinnggss ooff ppaarrttiicciippaattiioonnss iinn GGrroouupp ccoommppaanniieess
Subsidiary/ID no
22002211
22002200
Number of
shares
% share
Carrying
amount
% share
Carrying
amount
DDiirreecctt oowwnneerrsshhiipp
Quant US Corp., (5631810)
100%
2,087
100%
2,087
Quant Sweden Holding AB, (556981-3115, Västerås)
50,000
100%
94,198
100%
99,198
IInnddiirreecctt oowwnneerrsshhiipp
Quant Service GmbH, (CHE-344.849.137)
100%
100%
Quant Service Sweden AB, (556981-7652)
100%
100%
Quant Brasil Manutenção Industrial LTDA., (35.228.780-747)
100%
100%
Quant Italy S.R.L., (08789970962)
100%
100%
Quant Denmark ApS (38362291)
100%
100%
Quant Finland Oy, (2588556-2)
100%
100%
Quant Chile SpA, (76502)
100%
100%
Quant Argentina SA., (110570)
100%
100%
Quant Industrial Technology Services (Shanghai) Co., Ltd., (310141400017193)
100%
100%
Quant Maintenance Mexico S.A. DE C.V., (24061*7)
100%
100%
Quant Estonia OÜ, (12736628)
100%
100%
Quant Spain, S.L., (B-87116869)
100%
100%
Quant Germany GmbH, (HRB 133266)
100%
100%
Quant Service Hungary Kft, (Cg.01-09-197470)
100%
100%
Quant Netherlands B.V., (61625914)
100%
100%
Quant Norway AS, (914317061)
100%
100%
Quant Service Czech Republic s.r.o., (035 15 737)
100%
100%
Quant Service Poland sp.z.o.o., (KRS 0000741595)
100%
100%
Quant Service Peru S.A.C (145 98 429)
100%
100%
Quant South Africa, (1998/020657/07)
74%
74%
Quant Maintenance Service Namibia (Pty) Ltd, (2014/0522)
100%
100%
Quant Gulf Equipment and General Maintenance LLC, (1203868)
49%
49%
96,285
101,285
The ownership share of the capital corresponds to the proportion of the total number of shares. All companies listed in the
table above are consolidated as Subsidiaries using the consolidation method described under Accounting principles:
consolidation and business combinations “Subsidiaries” on page 42.
N
N
o
o
t
t
e
e
2
2
1
1
Financial assets and liabilities by valuation category in the group
KKEEUURR
22002211
22002200
Carrying amount
Fair Value
Carrying
Fair value
AAsssseettss
Non-current receivables
26
26
678
678
Accounts receivable
24,498
24,498
26,403
26,403
Other receivables
1,200
1,200
1,683
1,683
Accrued income
4,341
4,341
3,695
3,695
Liquid funds
9,648
9,648
21,351
21,351
TToottaall aasssseettss
3399,,771133
3399,,771133
5533,,881100
5533,,881100
LLiiaabbiilliittiieess
Interest-bearing liabilities
1)
144,943
144,943
144,857
144,857
Other non-current liabilities
1,502
1,502
2,328
2,328
Accounts payables
8,298
8,298
10,802
10,802
Other liabilities
3,263
3,263
4,721
4,721
Accrued expenses
19,751
19,751
22,688
22,688
TToottaall lliiaabbiilliittiieess
117777,,775566
117777,,775566
118855,,339955
118855,,339955
Quant has no financial instruments that are recognized at fair value through the income statement.
1) The carrying amount of the Group's interest-bearing liabilities are deemed to be a reasonable approximation of their fair value.
N
N
o
o
t
t
e
e
2
2
2
2
Deferred tax
D
D
e
e
f
f
e
e
r
r
r
r
e
e
d
d
t
t
a
a
x
x
a
a
s
s
s
s
e
e
t
t
s
s
a
a
n
n
d
d
l
l
i
i
a
a
b
b
i
i
l
l
i
i
t
t
i
i
e
e
s
s
The tax assets and provision for deferred tax relates to the following assets and liabilities:
KKEEUURR
22002211
22002200
G
G
r
r
o
o
u
u
p
p
Deferred tax
assets
Deferred tax
liability
Net
Deferred tax
assets
Deferred tax
liability
Net
Intangible assets
-
-2,922
-2,922
-
-5,097
-5,097
Pension contributions
469
0
469
672
-
672
Other
1,273
-521
752
1,252
-421
831
TToottaall
11,,774422
--33,,444433
--11,,770011
11,,992244
--55,,551188
--33,,559944
CChhaannggee iinn ddeeffeerrrreedd ttaaxx iinn tteemmppoorraarryy ddiiffffeerreenncceess aanndd lloossss ccaarrrryyffoorrwwaarrddss
GGrroouupp
Bal at 1 Jan
2021
Profit/loss for
the year
OCI
Reclass to
Discontin'd
Translation
differences
Bal at 31 Dec
2021
Intangible assets
-5,097
2,185
0
0
-10
-2,922
Pension contributions
672
29
-252
0
20
469
Other 831
78
0
-9
-147
752
TToottaall
--33,,559944
22,,229911
--225522
--99
--113388
--11,,770011
GGrroouupp
Bal at 1 Jan
2020
Profit/loss for
the year
OCI
Reclass to
Discontin'd
Translation
differences
Bal at 31 Dec
2020
Intangible assets
-7,321
2,048
-
-
175
-5,097
Pension contributions
549
53
59
-
12
672
Other
560
363
-
-
-92
831
TToottaall
--66,,221122
22,,446644
5599
--
9955
--33,,559944
6766
QUANT ANNUAL REPORT 2021
NOTES NOTES
QUANT ANNUAL REPORT 2021
N
N
o
o
t
t
e
e
2
2
3
3
Accounts receivable
A
A
c
c
c
c
o
o
u
u
n
n
t
t
s
s
r
r
e
e
c
c
e
e
i
i
v
v
a
a
b
b
l
l
e
e
m
m
a
a
t
t
u
u
r
r
i
i
t
t
y
y
a
a
n
n
a
a
l
l
y
y
s
s
i
i
s
s
KKEEUURR
Group
22002211
22002200
A
A
c
c
c
c
o
o
u
u
n
n
t
t
s
s
r
r
e
e
c
c
e
e
i
i
v
v
a
a
b
b
l
l
e
e
Not due
20,045
23,301
Overdue 1 - 30 days
2,282
1,680
Overdue 31 - 60 days
1,152
197
Overdue 61 - 90 days
76
12
Overdue 91 -180 days
54
40
Overdue > 180* days
890
1,943
TToottaall aaccccoouunnttss rreecceeiivvaabbllee bbeeffoorree pprroovviissiioonn ffoorr bbaadd ddeebbtt
2244,,449988
2277,,117733
P
P
r
r
o
o
v
v
i
i
s
s
i
i
o
o
n
n
f
f
o
o
r
r
b
b
a
a
d
d
d
d
e
e
b
b
t
t
a
a
c
c
c
c
o
o
u
u
n
n
t
t
s
s
r
r
e
e
c
c
e
e
i
i
v
v
a
a
b
b
l
l
e
e
Opening balance January 1
-770
-1,000
Provisions
-
-12
Reversals
770
241
C
C
l
l
o
o
s
s
i
i
n
n
g
g
b
b
a
a
l
l
a
a
n
n
c
c
e
e
D
D
e
e
c
c
e
e
m
m
b
b
e
e
r
r
3
3
1
1
00
--777700
T
T
o
o
t
t
a
a
l
l
A
A
c
c
c
c
o
o
u
u
n
n
t
t
s
s
r
r
e
e
c
c
e
e
i
i
v
v
a
a
b
b
l
l
e
e
2244,,449988
2266,,440033
*In January 2022 Quant received payment for Overdue > 180 overdue amounts of EUR 0.9 million.
N
N
o
o
t
t
e
e
2
2
4
4
Prepaid expenses and accrued income
Group
Parent company
KKEEUURR
22002211
22002200
22002211
22002200
Prepaid expenses
1,345
1,394
421
695
Accrued income
4,341
3,695
-
-
TToottaall pprreeppaaiidd eexxppeennsseess aanndd aaccccrruueedd iinnccoommee
55,,668866
55,,008899
442211
669955
N
N
o
o
t
t
e
e
2
2
5
5
Cash and cash equivalents
The following subcomponents are included in cash:
Group
Parent company
KKEEUURR
22002211
22002200
22002211
22002200
Bank deposits
9,648
21,351
1,393
7,814
TToottaall CCaasshh aanndd ccaasshh eeqquuiivvaalleennttss
99,,664488
2211,,335511
11,,339933
77,,881144
N
N
o
o
t
t
e
e
2
2
6
6
Pensions
Group defined benefit plans
C
C
h
h
a
a
n
n
g
g
e
e
s
s
i
i
n
n
t
t
h
h
e
e
p
p
r
r
e
e
s
s
e
e
n
n
t
t
v
v
a
a
l
l
u
u
e
e
o
o
f
f
t
t
h
h
e
e
o
o
b
b
l
l
i
i
g
g
a
a
t
t
i
i
o
o
n
n
f
f
o
o
r
r
d
d
e
e
f
f
i
i
n
n
e
e
d
d
b
b
e
e
n
n
e
e
f
f
i
i
t
t
p
p
l
l
a
a
n
n
s
s
KKEEUURR
22002211
22002200
OObblliiggaattiioonn ffoorr ddeeffiinneedd bbeenneeffiitt ppllaannss aass ooff 11 JJaannuuaarryy
33,,443366
22,,995599
Paid compensation
-178
-200
Cost recognized in profit for the year
325
373
Cost recognized in other comprehensive income
-1,287
294
Exchange rate differences
104
10
O
O
b
b
l
l
i
i
g
g
a
a
t
t
i
i
o
o
n
n
f
f
o
o
r
r
d
d
e
e
f
f
i
i
n
n
e
e
d
d
b
b
e
e
n
n
e
e
f
f
i
i
t
t
p
p
l
l
a
a
n
n
s
s
a
a
s
s
o
o
f
f
3
3
1
1
D
D
e
e
c
c
e
e
m
m
b
b
e
e
r
r
22,,440000
33,,443366
Provisions for Benefit Pension Plans
2,400
3,436
Provisions for other pensions
40
825
T
T
o
o
t
t
a
a
l
l
P
P
r
r
o
o
v
v
i
i
s
s
i
i
o
o
n
n
s
s
f
f
o
o
r
r
p
p
e
e
n
n
s
s
i
i
o
o
n
n
s
s
a
a
n
n
d
d
s
s
i
i
m
m
i
i
l
l
a
a
r
r
o
o
b
b
l
l
i
i
g
g
a
a
t
t
i
i
o
o
n
n
s
s
22,,444400
44,,226611
O
O
v
v
e
e
r
r
v
v
i
i
e
e
w
w
o
o
f
f
d
d
e
e
f
f
i
i
n
n
e
e
d
d
b
b
e
e
n
n
e
e
f
f
i
i
t
t
p
p
l
l
a
a
n
n
s
s
The group has one defined benefit plan that provides employee benefits to employees when they retire.
The plan
provides compensation based on average salary during the last ten years of employment
calculated with respect to
inflation.
KEUR
1
1
2
2
/
/
3
3
1
1
/
/
2
2
0
0
2
2
1
1
PPeennssiioonn oobblliiggaattiioonn
PPllaann aasssseettss
NNeett
Switzerland
10,913
8,513
2,400
Others
-
-
-
T
T
o
o
t
t
a
a
l
l
p
p
e
e
n
n
s
s
i
i
o
o
n
n
o
o
b
b
l
l
i
i
g
g
a
a
t
t
i
i
o
o
n
n
s
s
a
a
n
n
d
d
p
p
l
l
a
a
n
n
a
a
s
s
s
s
e
e
t
t
s
s
1100,,991133
88,,551133
22,,440000
1122//3311//22002200
PPeennssiioonn oobblliiggaattiioonn
PPllaann aasssseettss
NNeett
Switzerland
10,283
6,847
3,436
Others
-
-
-
TToottaall ppeennssiioonn oobblliiggaattiioonnss aanndd ppllaann aasssseettss
1100,,228833
66,,884477
33,,443366
The defined benefit plans are exposed to actuarial risks such as life expectancy, interest rate and investment risks.
TThhee ppllaann aasssseettss ccoonnssiisstt ooff eeqquuiittyy iinnssttrruummeennttss::
22002211
22002200
Currency (CHF)
3%
3%
Bonds
25%
33%
Equity instruments
31%
27%
Real estate
25%
27%
Mortgages
4%
-
Alternative investments
12%
11%
TToottaall
100%
100%
AAccttuuaarriiaall aassssuummppttiioonnss
The following significant actuarial assumptions have been applied in calculating the obligations:
(weighted average values)
22002211
22002200
Discount rate
0.3%
0.2%
Expected wage increase
1.0%
0.7%
Expected increase in pensions
0.0%
0.0%
6968
QUANT ANNUAL REPORT 2021
NOTES NOTES
QUANT ANNUAL REPORT 2021
SSeennssiittiivviittyy aannaallyyssiiss
The table below presents possible changes in actuarial assumptions at the balance sheet date, other assumptions
unchanged, and how these would affect the defined benefit obligation
2
2
0
0
2
2
1
1
2
2
0
0
2
2
0
0
Discount rate (- 0,25% change)
-4%
-3%
Discount rate (+ 0,25% change)
4%
3%
Expected increase in pensions (- 0,25% change)
2%
2%
Expected increase in pensions (+ 0,25% change) -2%
-2%
C
C
o
o
s
s
t
t
r
r
e
e
c
c
o
o
g
g
n
n
i
i
z
z
e
e
d
d
i
i
n
n
t
t
h
h
e
e
i
i
n
n
c
c
o
o
m
m
e
e
s
s
t
t
a
a
t
t
e
e
m
m
e
e
n
n
t
t
a
a
s
s
c
c
o
o
s
s
t
t
o
o
f
f
g
g
o
o
o
o
d
d
s
s
s
s
o
o
l
l
d
d
K
K
E
E
U
U
R
R
2
2
0
0
2
2
1
1
2
2
0
0
2
2
0
0
Costs concerning service for current period
-318
-363
Gain in regulation
-
-
Net interest income / interest expense
-7
-9
N
N
e
e
t
t
c
c
o
o
s
s
t
t
r
r
e
e
c
c
o
o
g
g
n
n
i
i
z
z
e
e
d
d
i
i
n
n
t
t
h
h
e
e
i
i
n
n
c
c
o
o
m
m
e
e
s
s
t
t
a
a
t
t
e
e
m
m
e
e
n
n
t
t
-
-
3
3
2
2
5
5
-
-
3
3
7
7
3
3
CCoosstt rreeccooggnniizzeedd iinn ootthheerr ccoommpprreehheennssiivvee iinnccoommee
KKEEUURR
22002211
22002200
Actuarial gains (-) and losses (+)
-377
192
Difference between actual return and return according to the discount rate on plan
assets
-910
102
Effects of change in asset limitation, excluding amounts reported in net interest
income
-
-
NNeett rreeppoorrtteedd iinn ootthheerr ccoommpprreehheennssiivvee iinnccoommee
--11,,228877
229944
N
N
o
o
t
t
e
e
2
2
7
7
Provisions
Group
KEUR
22002211
22002200
Other provisions
515
775
TToottaall pprroovviissiioonnss
551155
777755
Other provisions are comprised mainly of non-current employee-related liabilities.
N
N
o
o
t
t
e
e
2
2
8
8
Interest-bearing liabilities
Group
Parent company
KKEEUURR
22002211
22002200
22002211
22002200
Liabilities due within one year from the balance sheet date
10,470
17,881
8,779
15,563
Liabilities due within one to five years from the balance sheet date
140,429
135,222
139,280
133,385
Liabilities due later than five years from the balance sheet date
-
-
-
-
Capitalized borrowing costs
-2,587
-3,423
-2,587
-3,423
TToottaall iinntteerreesstt--bbeeaarriinngg lliiaabbiilliittiieess
148,313
149,680
145,473
145,525
Interest-bearing liabilities are comprised of liabilities to credit institutions and leasing liabilities. For information on leasing
liabilities, see Note 3 Financial risks.
C
C
r
r
e
e
d
d
i
i
t
t
f
f
a
a
c
c
i
i
l
l
i
i
t
t
i
i
e
e
s
s
On 24 March 2022 Quant announced a written procedure
in respect of its senior bonds which was approved on 7
April 2022. The approved amendments have
consequences for the senior bonds, the junior bonds and
the super senior working capital facility. Please see Note
36 Events after the reporting period for more information.
Senior bonds
Bonds of EUR 62.5 million was issued in the Swedish
capital market on 15 February 2018 and has an original
maturity of five years with maturity date on February 15,
2023. On 7 April 2022 the bondholders approved
amendments requested in a written procedure initiated
on 24 March 2022, which, among other things, extended
the maturity date of the senior bonds to 15 May 2023. The
bonds run on variable interest rate plus a margin of 6%,
which is paid quarterly. The bonds are issued by Quant
AB and are secured with shares in subsidiaries, which are
also jointly and severally liable for all obligations under
the bond agreement. The super senior working capital
facility has a substantive legal priority over the senior
bonds, which in turn have a substantive legal priority
over the junior bonds. The senior bonds were listed on
Luxembourg Stock Exchange on 7 February 2019. On 29
June 2018 Quant issued further bonds of EUR 29.5 million
under the senior secured bond agreement.
Junior bonds
Bonds of EUR 28.0 million was issued in the Swedish
capital market on 15 February 2018 and has a maturity of
five years and three months with maturity date on 15 May
2023. The bonds have a fixed interest rate of 14%, which
is capitalized quarterly. The bonds are issued by Quant
AB and are secured with shares in subsidiaries, which are
also jointly and severally liable for all obligations under
the Bond Agreement. The super senior working capital
facility has a substantive legal priority over the senior
bonds, which in turn have a substantive legal priority
over the junior bonds. The junior bonds were listed on
Luxembourg Stock Exchange on 7 February 2019.
Super senior working capital facility
The group has a working capital facility with Nordea Bank
AB (publ) of EUR 20 million, which is possible to use for
working capital requirements and as collateral for
guarantees issued within the framework of Quant's
operations. The working capital facility is possible to
utilize in many different currencies and drawn loans run
at variable interest rates for the loan period plus a margin
of 3.25%. Loans under the working capital facility are due
according to initial loan period requested by Quant.
Refunded amounts are re-available for borrowing until
the working capital facility’s final maturity date of August
15, 2022. The working capital facility is entered into by
Quant AB and secured with shares in subsidiaries, which
are also jointly and severally liable for all obligations
under the facility agreement. The super senior working
capital facility has a substantive legal priority over the
senior bond loan, which in turn has a substantive legal
priority over the junior bond loan.
NNoottee 2299 Accrued expenses and deferred income
Group
Parent company
KKEEUURR
22002211
22002200
22002211
22002200
Accrued interest expenses
1,634
1,573
1,788
1,689
Accrued restructuring costs
134
1,717
-
27
Accrued personnel expenses
13,780
14,290
596
709
Deferred income 2,049
1,619
-
-
Other accrued expenses 2,154
3,489
184
550
TToottaall aaccccrruueedd eexxppeennsseess aanndd ddeeffeerrrreedd iinnccoommee
1199,,775511
2222,,668888
22,,558800
22,,997766
N
N
o
o
t
t
e
e
3
3
0
0
Pledged assets and contingent liabilities
Cidron FS Top Holding AB has entered into
a security package with the security agent Nordic Trustee on behalf of the
bond investors and Nordea regarding the company's borrowing. The security is set for short and long-
term bank loans in
Sweden as stated in note 21. For these bank loans, the shares
in Quant AB and Quant Sweden Holding AB, via the
respective parent company, have been pledged.
The amount indicated as pledged assets in the parent company consists
of the parent company's carrying value of the shareholdings. The amount stated as pledged
assets in the group intends
to illustrate how the group's shareholders' equity is affected in the event that the pledged shares are to be mobilized.
7170
QUANT ANNUAL REPORT 2021
NOTES NOTES
QUANT ANNUAL REPORT 2021
PPlleeddggeedd aasssseettss aanndd ccoonnttiinnggeenntt lliiaabbiilliittiieess
Group
Parent company
KKEEUURR
22002211
22002200
22002211
22002200
PPlleeddggeedd aasssseettss
Bank guarantees
2,911
3,885
2,911
3,885
Shares in subsidiaries
11,899
13,028
96,285
101,285
TToottaall pplleeddggeedd aasssseettss
1144,,881100
1166,,991133
9999,,119966
110055,,117700
CCoonnttiinnggeenntt lliiaabbiilliittiieess
--
--
--
--
NNoottee 3311 Transactions with related parties
R
R
e
e
l
l
a
a
t
t
e
e
d
d
c
c
o
o
m
m
p
p
a
a
n
n
y
y
t
t
r
r
a
a
n
n
s
s
a
a
c
c
t
t
i
i
o
o
n
n
s
s
All transactions with the Board and the Group's senior executives have been reported in Note 6 Employee and personnel
costs. Other than the information in this note, there have been no transactions between any
members of the Board or the
Group's senior executives.
S
S
a
a
l
l
e
e
s
s
w
w
i
i
t
t
h
h
i
i
n
n
t
t
h
h
e
e
g
g
r
r
o
o
u
u
p
p
Of the parent company's total sales, 100% (100%) relate to sales to other companies within the Quant group.
N
N
o
o
t
t
e
e
3
3
2
2
Interest received and paid
Group
Parent company
KKEEUURR
22002211
22002200
22002211
22002200
Interest received
22
57
2,845
3,403
Interest paid
-12,161
-12,196
-12,150
-12,129
Leasing interest paid
-351
-520
-48
-59
TToottaall
--1122,,449900
--1122,,665599
--99,,335533
--88,,778855
N
N
o
o
t
t
e
e
3
3
3
3
Supplemental information to cash flow finance activities
RReeccoonncciilliiaattiioonn ooff iitteemmss iinncclluuddeedd iinn ffiinnaanncciinngg aaccttiivviittiieess -- GGrroouupp,, ccoonnttiinnuuiinngg ooppeerraattiioonnss
KEUR
GGrroouupp
Bal at
1 Jan 2021
Cash flow
effects
Non-cash
flow effects
Foreign
exchange
differences
Bal at
31 Dec 2021
Liabilities to credit institutions
144,857
-7,000
7,062
24
144,943
Lease liabilities
4,823
-1,369
-
-83
3,371
TToottaall
114499,,668800
--88,,336699
77,,006622
--5599
114488,,331133
GGrroouupp
Bal at
1 Jan 2020
Cash flow
effects
Non-cash
flow effects
Foreign
exchange
differences
Bal at
31 Dec 2020
Liabilities to credit institutions
134,311
4,000
6,613
-67
144,857
Lease liabilities
7,124
-2,192
-
-109
4,823
TToottaall
114411,,443355
11,,880088
66,,661133
--117766
114499,,668800
OOtthheerr aaddjjuussttmmeennttss ffoorr nnoonn--ccaasshh iitteemmss
CCoonnttiinnuuiinngg ooppeerraattiioonnss
Group
Parent company
KKEEUURR
22002211
22002200
22002211
22002200
Capitalized interest expense
6,249
6,213
6,249
6,213
Amortized borrowing costs
836
332
836
332
Pension revaluation direct to equity
1,287
220
-
-
Capital gain/loss from fixed assets
-800
-637
-
-
Changes accrued interest
61
121
-1,953
-19
Other
-24
-689
-21
53
TToottaall iitteemmss nnoott iinncclluuddeedd iinn ccaasshh ffllooww
77,,660099
55,,556611
55,,111122
66,,557799
N
N
o
o
t
t
e
e
3
3
4
4
Appropriation of Earnings
KEUR
Non-restricted equity in the Parent company at the disposal of the Annual General Meeting:
Retained earnings
59,801
Loss for the year
-14,371
TToottaall
45,430
The Board of Directors and the CEO propose that the amount be appropriated as follows:
AAmmoouunntt ccaarrrriieedd ffoorrwwaarrdd
4455,,443300
NNoottee 3355 Business combinations, discontinued operations and
assets and liabilities held for sale
A
A
c
c
q
q
u
u
i
i
s
s
i
i
t
t
i
i
o
o
n
n
s
s
2021
There were no acquisitions carried out during 2021.
2020
There were no acquisitions carried out during 2020.
In January 2021 Quant China was classified as a
discontinued operation. A decision was taken by
management to discontinue operations in China through
sales, non-renewal or termination of existing contracts.
This decision triggered a write down of Goodwill,
Customer relations and Customer contracts in the
amount of EUR 5.2 million, EUR 0.8 million and EUR 0.4
million, respectively. On December 31, 2021 operations in
China were closed and preparations were initiated to
enter liquidation.
With the addition of Quant China to Discontinued
Operations the historical figures in the 2020 income
statement have been adjusted accordingly. For these
figures, see Quant Q4 interim report, tables
“Restatement of Group Continuing and Discontinued
Operations 2020”. The earnings, assets and liabilities in
Quant China is reported as discontinued operations for
the full year 2021 in the tables below.
INCOME STATEMENT FOR DISCONTINUED
OPERATIONS
Group
KKEEUURR
22002211
22002200
Net sales
946
7,723
Cost of sales
-1,293
-7,659
GGrroossss pprrooffiitt
--334477
6644
General and administrative expenses
-684
-1,056
Selling expenses
-165
-119
Research and development expenses
-
-
Write-downs intangible assets and PPE
-6,510
-
Other operating income
317
207
Other operating expenses
-
-
OOppeerraattiinngg LLoossss
--77,,338888
--990033
Interest income and similar profit/loss
3
13
Interest expense and similar profit/loss
-36
-213
Foreign exchange gains and losses
-
992
TToottaall ffiinnaanncciiaall iitteemmss
--3333
779922
PPrrooffiitt//lloossss bbeeffoorree ttaaxx
--77,,442222
--111111
Taxes
63
-177
LLoossss ffoorr tthhee yyeeaarr
--77,,335588
--228888
QUANT ANNUAL REPORT 2021 QUANT ANNUAL REPORT 2021
7372
QUANT ANNUAL REPORT 2021
NOTES
Quant AB
5569755654
Stockholm, April 28, 2022
The Management Report, nancial statements and notes are a translation from the Swedish original.
The undersigned declare that the consolidated accounts and annual
report were prepared in accordance with IFRS, as approved by the EU,
and with generally accepted accounting practices, and give a true
and fair presentation of the position and performance of the Group
and the Parent company, and that the Management report includes
a fair view of the development and performance of the business and
position of the Group and the Parent company as well as describing
the material risks and uncertainty factors to which the Parent company
and subsidiaries that are members of the Group are exposed.
MIKAEL NORIN
CHAIRMAN OF THE BOARD
OLOF FAXANDER
BOARD MEMBER
PER HALLIUS
BOARD MEMBER
CASPER LERCHE
BOARD MEMBER
HENRIK SANDRÉUS
BOARD MEMBER
PIERRE SCHÖLD
BOARD MEMBER
JOAKIM HAVBY
BOARD MEMBER
TOMAS RÖNN CEOTOMAS RÖNN CEO
Our audit report has been submitted, April 28, 2022
Öhrlings Pricewaterhouse Coopers AB
NICKLAS KULLBERG
AUTHORIZED PUBLIC ACCOUNTANT
SIGNATURES
SIGNATURES
ASSETS AND LIABILITIES HELD FOR SALE
Group
KEUR
2021
2020
Property, plant and equipment
-
-
Right of use assets
-
-
Financial assets
217
217
Inventories
-
-
Accounts receivable
-
-
Other receivables
240
160
Prepaid expenses and accrued
income
-
1
TToottaall aasssseettss
445577
337788
Provisions
219
219
Leasing liablility
-
-
Other current liabilities
-
-
Accounts payable
8
4
Accrued expenses and deferred
income
108
95
Other non-interest-bearing
liabilities
364
8
TToottaall lliiaabbiilliittiieess
669988
332266
N
N
o
o
t
t
e
e
3
3
6
6
Events after the reporting period
On 8 February 2022 it was announced that Quant had
signed a renewal of an existing Total Maintenance
Partnership with Metsä Wood. The agreement covers
industrial maintenance on five production sites in Finland
and Estonia. The agreement renewal contains scope
changes beneficial to both parties, which increase
Quant’s contract portfolio by EUR 2 million in the first
quarter of 2022.
On 24 March 2022 Quant AB (publ) announced, as part
of an initiation of a written procedure in respect of its
senior bonds, that Permira Credit Solutions II Master Sub
S.A. (“Permira Credit”), the holder of the junior bond, and
Nordic Capital, the current majority owner of Quant, have
agreed in principle to a conditional agreement under
which Permira Credit is expected to become the new
majority owner of Quant. Nordic Capital is expected to
remain as a minority shareholder. The agreement
between Permira Credit and Nordic Capital is conditional
upon, amongst other things, agreements and consents
relating to an extension and reduction of the existing
super senior revolving credit facility, and is subject to
formal approval of merger filings with competition
authorities. Permira Credit will, as part of the agreement
with Nordic Capital, provide EUR 10 million of new capital
as a cash injection on the balance sheet. Amounts
corresponding to the junior bond and certain
shareholder loans will, in time, also be capitalized
resulting in releases of these debts.
In the written procedure the holders of the senior bonds
were requested to approve, inter alia, (i) an unconditional
extension (the “Interim Amendment”) of the terms of the
senior bonds by three months, extending the maturity
date from 25 February 2023 to 25 May 2023, and (ii)
conditional amendments (the “Final Amendments”)
consisting of an extension of the term of the senior bonds
from 15 May 2023 to 15 November 2025, an amendment
of the control clause to allow for Permira Credit to take
over as the new majority owner of Quant, a correction of
wording to allow non-wholly owned subsidiaries to make
pro-rata distributions to group companies and joint
venture partners, an undertaking to achieve an increase
of equity to an amount corresponding to the junior bond
which is then extinguished, and an update of the call
structure of the Senior Bond. The Final Amendments are
conditional upon the cash injection by Permira Credit
and the extension and reduction of the existing super
senior revolving credit facility.
On 7 April 2022 Quant received an approval from the
holders of the senior bonds in the written procedure and
on 21 April 2022 the Interim Amendment was fully and
finally executed. At the time of the publication of the
Annual Report the company was awaiting formal
approval of merger control filings. For more information,
please visit www.quantservice.com/investors
QUANT ANNUAL REPORT 2021 QUANT ANNUAL REPORT 2021
7574
Report on the annual accounts and consolidated
accounts
Opinions
We have audited the annual accounts and consolidated accounts of
Quant AB (publ), for the year 2021 except for the corporate governance
statement on pages 2930. The annual accounts and consolidated
accounts of the company are included on pages 3172 in this document.
In our opinion, the annual accounts have been prepared in accordance
with the Annual Accounts Act and present fairly, in all material respects,
the inancial position of parent company and the group as of 31
December 2021 and its inancial performance and cash low for the
year then ended in accordance with the Annual Accounts Act. The
consolidated accounts have been prepared in accordance with the
Annual Accounts Act and present fairly, in all material respects, the
inancial position of the group as of 31 December 2021 and their inancial
performance and cash low for the year then ended in accordance with
International Financial Reporting Standards (IFRS), as adopted by the EU,
and the Annual Accounts Act. Our opinions do not cover the corporate
governance statement on pages 2930. The statutory administration
report is consistent with the other parts of the annual accounts and
consolidated accounts.
We therefore recommend that the general meeting of shareholders
adopts the income statement and statement of inancial position for
the parent company and the group.
Our opinions in this report on the annual accounts and consolidated
accounts are consistent with the content of the additional report
that has been submitted to the parent company’s audit committee in
accordance with the Audit Regulation (537/2014) Article 11.
Basis for Opinions
We conducted our audit in accordance with International Standards on
Auditing (ISA) and generally accepted auditing standards in Sweden.
Our responsibilities under those standards are further described in
the Auditor’s Responsibilities section. We are independent of the
parent company and the group in accordance with professional ethics
for accountants in Sweden and have otherwise fulilled our ethical
responsibilities in accordance with these requirements. This includes
that, based on the best of our knowledge and belief, no prohibited
services referred to in the Audit Regulation (537/2014) Article 5.1 have
been provided to the audited company or, where applicable, its parent
company or its controlled companies within the EU.
We believe that the audit evidence we have obtained is suicient and
appropriate to provide a basis for our opinions.
Our audit approach
Overview
AUDITOR’S REPORT
(Translation from the Swedish original)
To the general meeting of the shareholders of Quant AB (publ), corporate identity number 5569755654
AUDITOR’S REPORT
AUDITOR’S REPORT
Other Information than the annual accounts and
consolidated accounts
TThis document also contains other information than the annual
accounts and consolidated accounts and is found on pages 328. The
Board of Directors and the Managing Director are responsible for this
other information.
Our opinion on the annual accounts and consolidated accounts does
not cover this other information and we do not express any form of
assurance conclusion regarding this other information.
In connection with our audit of the annual accounts and consolidated
accounts, our responsibility is to read the information identiied above
and consider whether the information is materially inconsistent with
the annual accounts and consolidated accounts. In this procedure we
also take into account our knowledge otherwise obtained in the audit
and assess whether the information otherwise appears to be materially
misstated.
If we, based on the work performed concerning this information,
conclude that there is a material misstatement of this other information,
we are required to report that fact. We have nothing to report in this
regard.
Key audit matter How our audit addressed the key audit matter
Recognition of revenue from the sale of maintenance and repair
services at the right amount and in the right period.
The Group’s revenues are mainly related to multi-year customer
contracts with manufacturing companies where Quant provides
maintenance and repair services for customers’ production facilities.
The contracts are mainly of standard nature and contain either
one main performance obligation for maintenance work, or several
performance obligations, which in addition to maintenance work also
includes eg additional work or sales of spare parts. Pricing can be both
ixed and variable. In some cases, the contracts have a ixed price
combined with certain variable parts such as bonuses based on agreed
KPIs. In these cases, management’s calculations and assumptions form
the basis for revenue recognition. For multi-year ixed-price contracts,
revenue is recognized evenly over the life of the contract. Invoicing
normally occurs in the month in which the services are performed. In
cases where invoicing diers from worked-up revenue for the period,
accrued revenue or prepaid income is reported to the extent that the
invoiced amount diers from the worked-up revenue. As a result of
manual calculations and assumptions being made in the accounts,
combined with the fact that the revenue low is signiicant, we have
assessed the revenue as an important area in the audit. For accounting
principles regarding the Group’s revenues, we refer to Note 5 in the
annual report for 2021.
How our audit addressed the key audit matter
We have focused a signiicant part of our audit on evaluating Quant’s
principles for revenue recognition. We have done this, among other
things, by performing the following audit procedures:
• Analysis of revenue during the year compared to the previous
year.
• Reviewed a selection of major contracts against the contract
terms and Quant’s guidelines for assessing revenue recognition.
• On a sample basis, tested that revenue is reported in the correct
period and at the correct amount.
• Reviewed credit notes after the end of the inancial year.
• Evaluated Quant’s accounting principles and the notes provided.
The performed audit procedures have not identiied any signiicant
observations related to this area.
Impairment testing of acquisition-related surplus values and
goodwill
In the consolidated balance sheet, acquisition-related surplus values
and goodwill are reported at a value of 86 424 KEUR. Goodwill and
acquisition-related surplus values correspond to the dierence between
the value of net assets and the purchase price paid in an acquisition.
Unlike other assets, there is no amortization of goodwill, which is tested
annually for impairment or when there is an indication of impairment.
Other acquisition-related surplus values are amortized over the
estimated useful life. When the company management examines cash-
generating units for impairment, the reported values are compared
with the estimated recoverable amount. If the recoverable amount is
substantially lower than the reported value, the asset is written down to
its estimated recoverable value. The recoverable amount is determined
by calculating the asset’s value in use. When calculating the value in
use, company management must make assumptions about future
growth and margin development. Future events and new information
may change these assessments and estimates, and it is therefore
particularly important for the management to continuously evaluate
whether the value of the acquisition-related intangible assets can be
justiied taking into account the assumptions made.
How our audit addressed the key audit matter
In our audit, we have focused on management´s assessment of
impairment and the identiied surplus values. We have, among other
things, performed the following procedures:
• Evaluated Quant’s process for testing acquisition-related surplus
values and goodwill for impairment.
• With the support of PwC’s internal valuation specialists, evaluated
the reasonableness of the discount rate used.
• Evaluated the reasonableness of assumptions made and
conducted sensitivity analyzes for changed assumptions.
• Evaluated management’s forecasting ability by comparing
previously made forecasts against actual outcomes.
• Based on materiality, conirmed that suicient note information is
provided in the annual report.
The performed audit procedures have not identiied any signiicant
observations related to this area.
Audit scope
We designed our audit by determining materiality and assessing the
risks of material misstatement in the consolidated inancial statements.
In particular, we considered where management made subjective
judgements; for example, in respect of signiicant accounting
estimates that involved making assumptions and considering future
events that are inherently uncertain. As in all of our audits, we also
addressed the risk of management override of internal controls,
including among other matters consideration of whether there was
evidence of bias that represented a risk of material misstatement due
to fraud.
We tailored the scope of our audit in order to perform suicient work
to enable us to provide an opinion on the consolidated inancial
statements as a whole, taking into account the structure of the Group,
the accounting processes and controls, and the industry in which the
group operates.
In addition to the parent company, Quant AB, the Group Audit has
included the operating companies in Sweden, Chile, Finland, Brazil,
Norway and Switzerland.
Materiality
The scope of our audit was inluenced by our application of
materiality. An audit is designed to obtain reasonable assurance
whether the inancial statements are free from material misstatement.
Misstatements may arise due to fraud or error. They are considered
material if individually or in aggregate, they could reasonably be
expected to inluence the economic decisions of users taken on the
basis of the consolidated inancial statements.
Based on our professional judgement, we determined certain
quantitative thresholds for materiality, including the overall group
materiality for the consolidated inancial statements as a whole as set
out in the table below. These, together with qualitative considerations,
helped us to determine the scope of our audit and the nature, timing
and extent of our audit procedures and to evaluate the eect of
misstatements, both individually and in aggregate on the inancial
statements as a whole.
Group Materiality 1 643 KEUR (1 705 KEUR)
Basis of Materiality 1% of total revenues
Rationale for Group
Materiality
The net sales were selected for our
benchmark of materiality due to luctuating
earnings before taxes.
We agreed with the Audit Committee that we would report to them
misstatements identiied during our audit above 82 KEUR as well
as misstatements below that amount that, in our view, warranted
reporting for qualitative reasons.
Key audit matters
Key audit matters of the audit are those matters that, in our
professional judgment, were of most signiicance in our audit of the
annual accounts and consolidated accounts of the current period.
These matters were addressed in the context of our audit of, and in
forming our opinion thereon, the annual accounts and consolidated
accounts as a whole, but we do not provide a separate opinion on
these matters.
• Overall materiality: 1 643 KEUR which
is 1% of total revenues.
• Recognition of revenue at the right
amount and in the right period.
• Impairment testing of acquisition-
related surplus values and goodwill
Materiality
Scope
Key Audit
Matters
QUANT ANNUAL REPORT 2021 QUANT ANNUAL REPORT 2021
7776
We believe that the evidence we have obtained is suicient and
appropriate to provide a basis for our opinion.
Responsibilities of the Board of Director’s and the
Managing Director
The Board of Directors and the Managing Director are responsible for
ensuring that the Esef report has been prepared in accordance with
the Chapter 16, Section 4(a) of the Swedish Securities Market Act
(2007:528), and for such internal control that the Board of Directors
and the Managing Director determine is necessary to prepare the Esef
report without material misstatements, whether due to fraud or error.
Auditor’s responsibility
Our responsibility is to form an opinion with reasonable assurance
whether the Esef report is in all material respects prepared in a format
that meets the requirements of Chapter 16, Section 4(a) of the Swedish
Securities Market Act (2007:528), based on the procedures performed.
RevR 18 requires us to plan and execute procedures to achieve
reasonable assurance that the Esef report is prepared in a format that
meets these requirements.
Reasonable assurance is a high level of assurance, but it is not a
guarantee that an engagement carried out according to RevR 18 and
generally accepted auditing standards in Sweden will always detect
a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in aggregate,
they could reasonably be expected to inluence the economic decisions
of users taken on the basis of the ESEF report.
The audit irm applies ISQC 1 Quality Control for Firms that Perform
Audits and Reviews of Financial Statements, and other Assurance
and Related Services Engagements and accordingly maintains a
comprehensive system of quality control, including documented
policies and procedures regarding compliance with professional
ethical requirements, professional standards and legal and regulatory
requirements.
The reasonable assurance engagement involves obtaining evidence,
through various procedures, that the Esef report has been prepared in a
format that enables uniform electronic reporting of the annual accounts.
The procedures selected depend on the auditor’s judgment, including
the assessment of the risks of material misstatement in the report,
whether due to fraud or error. In carrying out this risk assessment, and
in order to design procedures that are appropriate in the circumstances,
the auditor considers those elements of internal control that are relevant
to the preparation of the Esef report by the Board of Directors and the
Managing Director, but not for the purpose of expressing an opinion on
the eectiveness of those internal controls. The reasonable assurance
engagement also includes an evaluation of the appropriateness and
reasonableness of assumptions made by the Board of Directors and the
Managing Director.
The procedures mainly include a technical validation of the Esef report,
i.e. if the ile containing the Esef report meets the technical speciication
set out in the Commission’s Delegated Regulation (EU) 2019/815 and a
reconciliation of the Esef report with the audited annual accounts and
consolidated accounts.
Furthermore, the procedures also include an assessment of whether
the Esef report has been marked with iXBRL which enables a fair and
complete machine-readable version of the consolidated statement of
inancial performance, statement of inancial position, statement of
changes in equity and the statement of cash low.
The auditor’s examination of the corporate governance
statement
The Board of Directors is responsible for that the corporate governance
statement on pages 2930 has been prepared in accordance with the
Annual Accounts Act.
Our examination of the corporate governance statement is conducted
in accordance with FAR’s auditing standard RevR 16 The auditor’s
examination of the corporate governance statement. This means that
our examination of the corporate governance statement is dierent and
substantially less in scope than an audit conducted in accordance with
International Standards on Auditing and generally accepted auditing
standards in Sweden. We believe that the examination has provided us
with suicient basis for our opinions.
A corporate governance statement has been prepared. Disclosures
in accordance with chapter 6 section 6 the second paragraph points
26 of the Annual Accounts Act and chapter 7 section 31 the second
paragraph the same law are consistent with the other parts of the
annual accounts and consolidated accounts and are in accordance
with the Annual Accounts Act.
Auditor’s report on the statutory sustainability report
It is the board of directors who is responsible for the statutory
sustainability report and that it has been prepared in accordance with
the Annual Accounts Act.
Our examination has been conducted in accordance with FAR’s
auditing standard RevR 12 The auditor’s opinion regarding the statutory
sustainability report. This means that our examination of the statutory
sustainability report is substantially dierent and less in scope than an
audit conducted in accordance with International Standards on Auditing
and generally accepted auditing standards in Sweden. We believe that
the examination has provided us with suicient basis for our opinion.
A statutory sustainability report has been prepared.
Öhrlings PricewaterhouseCoopers AB, Torsgatan 21, was appointed
auditor of Quant AB (publ) by the general meeting of the shareholders
on the 20th of April 2021 and has been the company’s auditor since the
5 november 2019.
Responsibilities of the Board of Director’s and the
Managing Director
The Board of Directors and the Managing Director are responsible for the
preparation of the annual accounts and consolidated accounts and that
they give a fair presentation in accordance with the Annual Accounts
Act and, concerning the consolidated accounts, in accordance with
IFRS as adopted by the EU. The Board of Directors and the Managing
Director are also responsible for such internal control as they
determine is necessary to enable the preparation of annual accounts
and consolidated accounts that are free from material misstatement,
whether due to fraud or error.
In preparing the annual accounts and consolidated accounts, The
Board of Directors and the Managing Director are responsible for the
assessment of the company’s and the group’s ability to continue as a
going concern. They disclose, as applicable, matters related to going
concern and using the going concern basis of accounting. The going
concern basis of accounting is however not applied if the Board of
Directors and the Managing Director intend to liquidate the company,
to cease operations, or has no realistic alternative but to do so.
The Audit Committee shall, without prejudice to the Board of Director’s
responsibilities and tasks in general, among other things oversee the
company’s inancial reporting process.
Auditor’s responsibility
Our objectives are to obtain reasonable assurance about whether the
annual accounts and consolidated accounts as a whole are free from
material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinions. Reasonable assurance is a
high level of assurance, but is not a guarantee that an audit conducted
in accordance with ISAs and generally accepted auditing standards in
Sweden will always detect a material misstatement when it exists. Mis-
statements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to
inluence the economic decisions of users taken on the basis of these
annual accounts and consolidated accounts.
A further description of our responsibility for the audit of the annual
accounts and consolidated accounts is available on Revisorsinspek-
tionen’s website: www.revisorsinspektionen.se/revisornsansvar. This de-
scription is part of the auditor´s report.
Report on other legal and regulatory requirements
The auditor’s examination of the administration of
the company and the proposed appropriations of the
company’s prot or loss
Opinions
In addition to our audit of the annual accounts and consolidated
accounts, we have also audited the administration of the Board of
Director’s and the Managing Director of Quant AB (publ) for the year
2021 and the proposed appropriations of the company’s proit or loss.
We recommend to the general meeting of shareholders that the proit
be appropriated in accordance with the proposal in the statutory
administration report and that the members of the Board of Director’s
and the Managing Director be discharged from liability for the inancial
year.
Basis for Opinions
We conducted the audit in accordance with generally accepted
auditing standards in Sweden. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities
section. We are independent of the parent company and the group in
accordance with professional ethics for accountants in Sweden and
have otherwise fulilled our ethical responsibilities in accordance with
these requirements.
We believe that the audit evidence we have obtained is suicient and
appropriate to provide a basis for our opinions.
Responsibilities of the Board of Director’s and the
Managing Director
TThe Board of Directors is responsible for the proposal for appropriations
of the company’s proit or loss. At the proposal of a dividend, this includes
an assessment of whether the dividend is justiiable considering the
requirements which the company’s and the group’s type of operations,
size and risks place on the size of the parent company’s and the group’
equity, consolidation requirements, liquidity and position in general.
The Board of Directors is responsible for the company’s organization and
the administration of the company’s aairs. This includes among other
things continuous assessment of the company’s and the group’s inancial
situation and ensuring that the company´s organization is designed
so that the accounting, management of assets and the company’s
inancial aairs otherwise are controlled in a reassuring manner. The
Managing Director shall manage the ongoing administration according
to the Board of Directors’ guidelines and instructions and among other
matters take measures that are necessary to fulill the company’s
accounting in accordance with law and handle the management of
assets in a reassuring manner.
Auditor’s responsibility
Our objective concerning the audit of the administration, and thereby
our opinion about discharge from liability, is to obtain audit evidence to
assess with a reasonable degree of assurance whether any member of
the Board of Directors or the Managing Director in any material respect:
• has undertaken any action or been guilty of any omission which
can give rise to liability to the company, or
• in any other way has acted in contravention of the Companies Act,
the Annual Accounts Act or the Articles of Association.
Our objective concerning the audit of the proposed appropriations of
the company’s proit or loss, and thereby our opinion about this, is to
assess with reasonable degree of assurance whether the proposal is in
accordance with the Companies Act.
Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with generally accepted
auditing standards in Sweden will always detect actions or omissions
that can give rise to liability to the company, or that the proposed
appropriations of the company’s proit or loss are not in accordance
with the Companies Act.
A further description of our responsibility for the audit of the
administration is available on Revisorsinspektionen’s website: www.
revisorsinspektionen.se/revisornsansvar. This description is part of the
auditor’s report.
The auditor’s examination of the ESEF report
Opinion
In addition to our audit of the annual accounts and consolidated
accounts, we have also examined that the Board of Directors and the
Managing Director have prepared the annual accounts and consolidated
accounts in a format that enables uniform electronic reporting (the Esef
report) pursuant to Chapter 16, Section 4(a) of the Swedish Securities
Market Act (2007:528) for Quant AB (publ) for the inancial year 2021.
Our examination and our opinion relate only to the statutory
requirements.
In our opinion, the Esef report
#26bfc1c555aaebdf70bada780 2c2e024e3d65f8c28115ecf6b5b23124b0de61
has been prepared in a format that, in all material respects, enables
uniform electronic reporting.
Basis for Opinions
We have performed the examination in accordance with FAR’s
recommendation RevR 18 Examination of the Esef report. Our
responsibility under this recommendation is described in more detail
in the Auditors’ responsibility section. We are independent of Quant AB
(publ) in accordance with professional ethics for accountants in Sweden
and have otherwise fulilled our ethical responsibilities in accordance
with these requirements.
Stockholm, April 28, 2022
Öhrlings PricewaterhouseCoopers AB
Nicklas Kullberg
Authorized Public Accountant
AUDITOR’S REPORT AUDITOR’S REPORT
QUANT ANNUAL REPORT 2021 QUANT ANNUAL REPORT 2021
7978
ALTERNATIVE PERFORMANCE MEASURES
ALTERNATIVE PERFORMANCE MEASURES
Quant uses certain alternative performance measures (APMs) not deined in the rules for inancial reporting adopted by Quant. APMs, i.e.
performance measures not based on inancial statements standards, provide meaningful supplemental information by excluding items that may
not be indicative of the operating result or cash lows of Quant. Alternative performance measures enhance comparability from period to period
and are frequently used by analysts, investors and other parties. These APMs, as deined, cannot be fully compared with other companies’ APMs
and should not be considered as a substitute for measures of performance in accordance with IFRS.
ALTERNATIVE
PERFORMANCE MEASURE
DEFINITION REASON FOR USE
EBITDA Earnings before interest, tax, depreciation and amortization,
and before write-down of intangible and tangible assets.
Shows the operational proitability that the
business primarily can aect
Adjusted EBITDA EBITDA excluding items aecting comparability (non-recurring
items) and the eect of IFRS 16 Leases
Related to the underlying performance and
cash generation ability of the business
Adjusted EBITDA Margin Adjusted EBITDA as a percentage of Net Sales Enables comparability of underlying
proitability for dierent size segments
Adjusted EBITDA IFRS 16 EBITDA excluding items aecting comparability (non-recurring
items), but including the eect of IFRS 16 Leases, with
expenses related to leases in Depreciation and Interest cost
Related to the underlying performance
and cash generation ability of the business,
aligned with updated IFRS standards
Net debt Interest-bearing liabilities, excluding lease liabilities, less cash
and cash equivalents
Indicates how much debt the group has net
of cash and is an important measure for bond
holders
Net debt IFRS 16 Interest-bearing liabilities, including lease liabilities, less cash
and cash equivalents
Indicates how much debt the group has
net of cash, with lease liabilities recorded as
debt in accordance with IFRS 16, aligned with
adjusted EBITDA IFRS 16
Net debt/adjusted EBITDA /
Net Debt / Adjusted EBITDA
IFRS 16
Net debt in relation to adjusted EBITDA / Net debt IFRS 16 in
relation to adjusted EBITDA IFRS 16
Shows the ability to service debt, an
important measure for bond holders, both
without and with application of IFRS 16
Growth excluding structural
and other non-recurring
adjustments
Growth excluding structural changes and other non-recurring
adjustments shows the change in net sales, excluding
changes related to acquisitions, divestments, and other non-
recurring adjustments, such as accounting related changes
Shows the actual growth, including currency
eects, of the business
Organic growth Organic growth refers to growth in net sales excluding (i)
growth related to acquisitions and divestments and other non-
recurring adjustments and (ii) growth related to luctuations in
currency exchange rates
Shows the actual growth of the business,
excluding currency eects
Local currency/constant
currencies
Excludes the impact of changes in exchange rates when
translating net sales and proits of entities with reporting
currencies other than Euro, to the group currency Euro
Shows growth excluding currency eects
Contract Portfolio The annualized net sales of current customer contracts,
adjusted for (i) signed new contracts, included at date of
contract signing, irrespective of start date; (ii) terminated
contracts, excluded at date of formal notiication, irrespective
of end date; (iii) changes formally agreed with the customers
of existing contracts, included at date of agreement. This
includes changes due to renewals of contracts or other
reasons
Shows current recurring annual net sales
adjusted for short- and medium-term
changes
Items aecting
comparability/non-recurring
items
Items aecting comparability are of a one-o, non-recurring,
non-operational, extraordinary, unusual or exceptional nature
(including restructuring expenditures).
Shows the value of items which aect
the comparability of Quant’s result and
proitability between periods
RECONCILIATION OF ALTERNATIVE
PERFORMANCE MEASURES
Q4 Jan-Dec
KEUR 2021 2020 2021 2020
Continuing operations
Operating profit (loss)
-1,649 -1,530 -2,778 -3,699
Depreciation & amortization 2,918 3,316 11,921 13,492
Non recurring items 51 24 621 675
Reversal of Write-down tangible assets - - - -
Adjusted EBITDA IFRS 16
1,320 1,810 9,786 10,469
Eect from IFRS 16 -620 -756 -2,577 -3,421
Adjusted EBITDA 700 1,053 7,209 7,048
Net sales 41,887 41,676 164,435 163,497
Adjusted EBITDA margin 1.7% 2.5% 4.4% 4.3%
Discontinued operations
Operating profit (loss)
79 118 -7,388 -903
Depreciation & amortization 0 52 13 241
Non recurring items - 0 - 4
Reversal of Write-down intangible assets 93 - 6,510 -
Reversal of Write-down tangible assets - - - 0
Adjusted EBITDA IFRS 16
173 169 -865 -658
Eect from IFRS 16 - -15 - -147
Adjusted EBITDA
173 154 -865 -805
Net sales 14 1,714 946 7,723
Adjusted EBITDA margin 1,276.6% 9.0% -91.5% -10.4%
Group total
Operating profit (loss)
-1,570 -1,412 -10,166 -4,602
Depreciation & amortization 2,919 3,367 11,934 13,733
Non recurring items 51 24 621 679
Reversal of Write-down intangible assets 93 - 6,531 -
Reversal of Write-down tangible assets - - - 0
Adjusted EBITDA IFRS 16
1,493 1,979 8,921 9,810
Eect from IFRS 16 -620 -771 -2,577 -3,567
Adjusted EBITDA
873 1,208 6,344 6,243
Net sales 41,901 43,390 165,381 171,221
Adjusted EBITDA margin 2.1% 2.8% 3.8% 3.6%
RECONCILIATION OF ALTERNATIVE PERFORMANCE MEASURES
The product is
produced at an
ISO certiied
printing center.
www.quantservice.com
For further questions:
info@quantservice.com
FINANCIAL INFORMATION
Financial information and other relevant company
information is published on
www.quantservice.com/investor.
INVESTOR RELATIONS CONTACT
André Strömgren, CFO
ir@quantservice.com
FINANCIAL CALENDAR
Interim report Q1
(January – March 2022)
May 18, 2022
Interim report Q2
(April – June 2022)
August 26, 2022
Interim report Q3
(July – September 2022)
November 25, 2022
Interim report Q4
(October – December 2022)
February 24, 2023
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