Untitled

ANNUAL

REPORT

Smart services for a sustainable world

2022

QUANT ANNUAL REPORT 2022 QUANT ANNUAL REPORT 2022

2 3

SWEDEN

MORE THAN

3,100

MEUR

179

HQ in Stockholm,

Sweden

Years of

experience

Number of

Employees

2022 Full Year

Revenue

Sites in

operation

AMERICAS

FINLAND & BALTICS

EUROPE & MIDDLE EAST

OUR REGIONS

Table of

contents

CEO rewiew

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

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.

QUANT ANNUAL REPORT 2022 QUANT ANNUAL REPORT 2022

CEO REVIEW

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 then current

majority owner of Quant, agreed in principle to a

conditional agreement under which Permira Credit

was expected to become the new majority owner

of Quant. The agreement between Permira Credit

and Nordic Capital was conditional upon, amongst

other things, agreements and consents relating to

an extension and reduction of the existing super

senior revolving credit facility and was subject to

formal approval of merger ilings with competition

authorities. As part of the agreement Permira

Credit provided 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.

During the Spring of 2022 Quant requested and

received the approval of the proposal from the

senior bondholders, which, effective on 21 April 2022,

means that the senior bonds extended the maturity

date from 15 February 2023 to 15 November 2025,

and amended the bond agreement according to the

proposal. On 16 June 2022 the inal amendments to

became effective, and Permira Credit became the

majority owner of Quant. On 12 December the merger

of Quant AB (publ) and Quibot Bidco AB, where the

latter was absorbed by Quant, was inalized and

registered. The merger completed all obligations

under the transaction, for instance that junior bonds

and shareholder loans totaling EUR 59 million were

extinguished which meant an implicit contribution of

liabilities in Quant AB recorded in equity.

REFINANCING AND A NEW

MAJORITY OWNER

CEO REVIEW

2022 was a year with developments that increased the

uncertainty in the world, mainly caused by the war in

Ukraine. Sanctions, energy cost, inflation, increased

interest rate and supply chain challenges affected most

companies.

For Quant it meant a few lost customers and a more

careful investment strategy by other customers.

Despite these developments, we continued to increase

our portfolio value. The last two years our portfolio value

has increased by more than 40 % which provides us

with a good base for 2023. The biggest projects secured

during 2022 will start to show in the revenue numbers

during 2023.

Profitability during the year was not satisfactory, mainly

due to a delayed mobilisation of a large project in Brazil

and a changed scope of a contract in Chile which

resulted in substantial layoff costs. In the beginning of

the year, we also faced high absentee numbers due to

the pandemic.

A major event during the year was the extension of our

bonds and change of ownership of Quant AB and the

Quant Group.

Another important activity was the update of our strategy

which we launched in October. The updated strategy

focuses on the same pillars as the previous strategy:

• People Empowerment

• Digitalization

• Safety and Operational Excellence

• Commercial Excellence

In 2021, both the employee and customer satisfaction

indices improved substantially and in the survey we did

in 2022 both indices improved further which I take as an

indication that our strategy is working.

In May we held our annual Safety Week which was named

“Raise Your Hand”. The goal was to educate and train our

employees in the right and responsibility to stop work

activities that is perceived to be unsafe.

The Safety Weeks are getting very positive feedback

from both employees and customers and the 2023

Safety Week is is now in the final stages of preparation.

I would like to thank all my colleagues for the excellent

work during the past year, we faced several changes

and challenges, but we made good progress, and with a

large order book and the updated strategy I am looking

forward to make 2023 a successful year.

I would also like to thank our customers, owners and

lenders for their continued trust and cooperation.

“The last two years our portfolio value has

increased by more than 40 % ”

TOMAS RÖNN

CEO, Quant AB (publ)

QUANT ANNUAL REPORT 2022 QUANT ANNUAL REPORT 2022

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, offer 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 firms

serving their machinery in a specific 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 efficiency,

plant performance, energy and resource efficiency, 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 efficient maintenance services coupled with effective 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 flexibility 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 flexible 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 significant 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, artificial 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

THE MAIN MARKET PLAYERS OFFERING INDUSTRIAL

MAINTENANCE SERVICES

QUANT ANNUAL REPORT 2022 QUANT ANNUAL REPORT 2022

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 Empowerment

We want Quant to be an attractive workplace. We shall ind and attract new people

to strengthen our business. We will improve and increase opportunities for internal

training through smart, digital platforms. Good performance by employees should be

recognized and celebrated.

Commercial Exellence

Develop offering to prove value of maintenance. Ensure that agile service offerings

are developed through close collaboration between service and process owners

together with technology development. Engage in industries where Quant has

experience and can make a difference.

Digitalization

We will continue to develop digital tools that enable the delivery of smart services.

Clarify our digital offering, both internally and externally, and to all customers. We will

expand our partnerships with other leading companies to improve and develop our

digital platforms and standardize our solutions.

Safety and Operational Excellence

Business model, processes and capabilities that are it for purpose. Reined and

updated operating model through distributed process ownership and excellence

centers. Develop model and digital tools to capture delivered client value in a

stringent and eficient way.

We continue to build on the success from the previous strategy and will sharpen our

focus on areas where we have been less successful. We are still aiming for continued

growth, but now we will also have an increased focus on the successful delivery of

our contracts to ensure proitability.

OUR MISSION

We keep machines

working

through smart services, performance

improvements in a safe and sustainable

way.

OUR VISION

Smart services for

a sustainable world

Smart services are services that are

delivered safely and eficiently, on time

every time.

STRATEGY

VISION & MISSION

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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

offered and tailored by combining Quant services and

contractual models in a way that suits 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 eficiency.

FEASIBILITY STUDY BUSINESS CASE PARTNERSHIP

Preparation form a

hypothesis

• Customer and

Quant perform

an 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

eficiency

• Reliability

• Overall Craft

Effectiveness

• 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 inancial data.

We identify strengths and

improvement potential for both

productivity and maintenance. The

outcome is benchmarked against

our database of feasibility studies

to ind 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 2022 QUANT ANNUAL REPORT 2022

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

Effectiveness (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 differentiator 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-ef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.

quantEffect

• Accurate and automatic

measurement of Overall

Equipment Effectiveness (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 ef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 notification

• Automatic notifications 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

QUANT ANNUAL REPORT 2022

QUANT ANNUAL REPORT 2022 QUANT ANNUAL REPORT 2022

1514

New employees signing their commitment

the hand care campaign in Arauco site

During May 2022, we held our annual Safety Week campaign.

The theme we focused on this year was named: Raise your hand!

The goal was to educate and train our employees to have the

right and responsibility to stop any work and to report if the work

environment or activities is perceived as unsafe.

All Quant employees participated on the workshops, trainings,

and ield activities during the week.

We continue to strengthen our safety culture, which is an

important part of our daily operations and commitment to our

team, customers, and communities.

Quant Safety Week 2022

ARAUCO JOINS

OUR SAFETY

CULTURE

Quant Safety Week • 2022

In July 2022, Quant Chile, and global forest product

company Arauco signed a total maintenance

partnership contract for two mills, Licancel and

Constitución, in Chile. The contract scope includes

maintenance execution, spare parts, subcontracted

services, and shutdowns.

During the onboarding program, we prioritized

sharing of our Safety culture and best practices. In

December we started with a hand care campaign,

to raise awareness about one of the most common

accidents. The goal was to learn more and share our

knowledge in this area.

We are eager to engage the new team in the Quant

Safety Culture to reduce the probability of accidents

and promote regional and global performance and

the goal of zero accidents.

SAFETY SAFETY

SAFETY 

OUR CHOICE,

OUR CULTURE

LTIR & TIR 2022

Safety is embedded in Quant’s DNA. Safety is always

considered when taking actions and decisions, which

makes it an integral part of the Quant culture. We follow

our safety KPIs closely and we continually strive to improve

our safety performance.

One of the great challenges we addressed in 2022 was the

mobilization processes of employees, which implied that

the rate indicators were not as predicted. We are critical

about the results in this matter, but we also understand that

the accident rate has a directly proportional relationship

to the increase in Quant’s endowment, which went from

2,400 to 3,100 people.

Gathering and understanding data

We have also focused on analyzing the data of accidents,

to deine where we need to act. We have improved the

accident investigation and lessons learned process.

That means understanding what has happened in order

to mitigate or reduce the likelihood of facing a similar

situation in the future.

We are empowering and training our leaders to conduct

incident investigation processes. Furthermore, we have

started the Raise Your Hand initiative, giving Quant

employees the tools and mandate to report risk situations.

We continue with our improvement initiatives, such as

Safety Week, updating procedures and documentation,

while we focus on data analysis and incident investigation.

Safety is a continuous work that is done day-by-day in an

effort to reach our goal of zero accidents We hope and

trust that the safety culture we promote will permeate the

people who join our team, and we will continue to get

home safely.

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

0.75

0.66

0.69

0.73

0.68

0.71 0.71

0.67

0.78

0.74

0.73

0.80

1.12

1.11

1.02

1.09

1.04

1.11

1.14

1.10

1.21 1.21

1.19

1.26

0.20

0.40

0.60

0.80

1.00

1.20

1.40

2022/01 2022/02 2022/03 2022/04 2022/05 2022/06 2022/0 7 2022/08 2022/09 2022/10 2022/11 2022/12

LTIR TIR

QUANT ANNUAL REPORT 2022 QUANT ANNUAL REPORT 2022

1716

SUSTAINABILITY SUSTAINABILITY

SUSTAINABLE

QUANT

Within our strategy at Quant, we have incorporated several

sustainability concepts that become concrete actions that

are developed throughout the year.

One is the standardization of processes to work

synchronized and harmoniously throughout the

organization.

Another is that we promote equality and inclusion initiatives,

in fact, we celebrate gender diversity and have conducted

trainings to understand these concepts and adapt to new

generations.

In terms of process certiication, we have sought an external

entity to ensure that we work with the highest industry

standards. Thus, several countries and entire regions have

quality, environmental management, and health and safety

certiications.

In the environmental area we know that we still have a lot

to do, but we are determined to improve our environmental

impact, so we performed trainings, started to measure KPIs

and have trained people to manage this area within the

organization.

We want to work together and close to the

community

2022 was a special year because we had the opportunity

to work very closely to the communities in which we

have contracts, and in which we generate sources of

employment, for example: Vale Carajás, Vale Vitoria, in

Brazil, and Arauco Constitución, in Chile, among others.

Quant has reached these locations that are less developed

than large cities, we want to be part of this community and

promote sustainable development in these operations.

This is relected in the fact that more than 95% of our

workforce is locally hired. We have also developed social

actions in different countries and locations, and we are

working to close agreements with local technical schools

and universities to positively affect the communities.

People are important to our business

We have continued to take care of people, to raise

awareness, which is why we celebrated Pink October,

Breast Cancer Campaign, Blue November, Prostate Cancer

Campaign, and Red December, Aids Prevention Campaign;

events that we want to spread to all of Quant in the future.

Finally, we work on people’s Health and Safety, so we

have made progress in improving our processes, and

implementing initiatives such as the Safety Panel that allow

us to generate a dialogue in which we transmit the lessons

learned, and which this year went global within Quant.

For more information about Quant’s sustainability

work read the 2022 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 & offerings, how we engage suppliers,

how we assess risks and opportunities, and how we

interact in the communities where we operate. We

have defined 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.

Sustainability is the

basis for business

development

PATRICIO IBARRA GOMEZ

CHIEF HUMAN RESOURCE OFFICER (CHRO)

AND GROUP SAFETY MANAGER

Sustainability is core to Quant’s service offering,

and is thus considered in processes, methods,

and policies.

Our service offering approach comes from more than 30

years of experience, and uses the skills and knowledge

of our employees, coupled with proven maintenance

processes, methods, and digital tools for our customers’

beneit. We aim 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, such as driving safety culture,

optimizing maintenance cost, and improving production

eficiency.

People are at the core of our business

Quant’s business relies on passionate, professional,

and proud employees. We actively work to develop

our employees’ skills and expertise, including via the

Quant Academy learning platform. Moreover, we ensure

compliance with local requirements and update our staff

on the latest industry standards. It is through our employees

that we improve processes and systems, and ensure that

we ind practical, sustainable solutions for our customers.

We maintain a lat organization and we encourage open

dialogue between all levels in the organization.

Reliability maintenance engineering contributes

to sustainability

The reliability maintenance approach starts with

understanding plant operations, which leads to a

maintenance plan (preventive and predictive) driving

technical availability, plant performance, and energy

eficiency. Moreover, reliability maintenance helps our

customers extend plant and equipment lifetime.

Plant performance improvement through

digitalization

Continuous improvement of the customers’ plant

performance is integral to a Quant-Customer maintenance

partnership. The basics include 5S (proper cleaning,

housekeeping, and organization) and RCA (root cause

analysis), Overall, the plant performance improvement

process aims at improving the effectiveness of existing

production facilities, meaning higher and improved quality

output (OEE), energy eficiency, and reduced resource

waste. We do this by systematically identifying and

eliminating losses, which reduces downtime, increases

production rate, improves yield, and improves energy

eficiency.

Quant’s digital offerings provides state-of-the-art system

support for core processes, which we develop and apply

to generate customer value. The tangible outputs include

higher OEE and production output, lower emissions, lower

unit cost and added contribution.

Quality in operations through standardized

approach

In our Quant-Customer partnerships, standardized

operational processes and quality assurance methods are

applied to ensure an eficient and sustainable business.

QUANT ANNUAL REPORT 2022 QUANT ANNUAL REPORT 2022

1918

PEOPLE & CULTURE PEOPLE & CULTURE

QUANT AWARDS 2022

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 2022 Awards, the following individuals and teams

were awarded for their work:

Emicool site team – Exemplary Sustainability Behavior

and Leadership

Arnt Johnny Strand – Outstanding Customer Service

Kari Metsäjoki – Best Collegial Support

Matías Henríquez – Best Innovation of the year

Fabián Orellana – Growth Contributor of the year

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 offering, Quant Academy is one of the

key drivers of our Quant culture and hence contributes

to variety of topics such as leadership and future talent

development. The ultimate goal of the Academy is to

empower all of our passionate and proud maintenance

professionals to deliver superior customer service.

One of the major milestones in Quant Academy during

2021 was to implement a Learning Management System

(LMS). The LMS supports us to deliver focused and

standardized training content for our employees to study

by themselves when most suitable for them. The system

enables Quant to get better insight into the development

needs of employees, information which is used to further

improve Quant Academy and its offering.

In 2022 we have rolled out several e-learning courses

utilizing our LMS. The most important courses have been

QUANT

ACADEMY

- TO LEARN AND SHARE KNOWLEDGE

Maja Rosdal and Anette Wold Klæboe are two interns at our site in

Mosjøen, Norway. The internship lasts for about 2.5 years; Maja has two

years left and Anette only a couple of weeks.

Both were inspired by close relatives in the profession and later applied

for internship programs for aspiring electricians. Their work experience

really kicked off right at the start. Early in their practice, they had to start

by troubleshooting and learning repairs on different engines. It was a

lot about maintenance, replacing cables, and reviewing systems for the

parts.

During the internship, they always have supervisors, who clearly instruct

them and double-check that everything is done correctly before things

is restarted. They also receive a lot of support from colleagues with

many years of experience, and who are more than happy to help when

needed.

Four women work on site at Quant in Mosjøen, so it is a male-dominated

work environment. They encourage more women to apply for this kind

of work in the industry.

– It would be nice if more women applied for this profession. It would be

good for the mix. There is so much that you can learn, it’s fun, says Maja.

Both think there’s a good safety culture at the site. They feel that it’s okay

to stop work if something does not feel right with the asset, equipment

or tools. And that’s important for the work environment. When asked

about the future and their career at Quant, both are determined that

they want to stay.

– I’ll be done with my internship soon and I’m excited. I want to stay

many years. There are still lots of things to learn, Anette says.

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.

FROM SCHOOL TO

INTERNSHIP AT QUANT

Maja Rosdal and

Anette Wold

Klæboe

translated to our main languages to ensure all employees

receive the same information and are able to learn using

their own language. Special focus was placed on safety

training, explaining our Quant Life Saving Rules. This was

completed by over 750 students with nearly 800 hours

spent on learning. In addition to that there were over

300 other course completions and another 200 course

registrations for new courses done in the LMS during 2022.

Another major milestone within Quant Academy was

the launch of an updated Quant Smart Maintenance

Awareness training in 2022. This was completed as a

virtual program consisting of seven sessions during May –

June. Over 50 trainees from all over the world participated.

The program was also translated to Finnish and there was

a classroom session conducted in Finland in December

with another 17 students.

QUANT ANNUAL REPORT 2022 QUANT ANNUAL REPORT 2022

2120

AMERICAS

SEGMENTS

QUANT ANNUAL REPORT 2022

SEGMENTS

In 2022 we started to return to normalcy after the

pandemic. We have returned to traveling and meeting

in person, which has allowed us to visit the sites and be

closer to our teams and customers in the region.

We are proud that our commercial efforts have started

to show results. During the year we signed new

contracts with Vale in Brazil, and a total maintenance

agreement with Arauco in Chile. We carried out large

mobilization processes, becoming the biggest region

in the Group in terms of number of employees, growth

and revenue yet we still face many challenges. One

of them is to improve our operations in terms of

processes, cost control and company culture, that can

be achieved with the standardization of processes,

trainings and people empowerment. Proitability was

a challenge for the region in 2022 because the new

contracts mobilized many resources and required

large investments. This impacted proitability in some

of the key contracts and negatively affected the results

of the entire region.

In terms of safety, we did well, but good is not good

enough. Therefore we need to keep reinforcing the

safety culture every single day, so that every employee

is aware and feels comfortable about raising their

hand if an unsafe situation arises.

We are committed to our diversity goals, and strive to

build a diverse workforce to create a more equitable

and inclusive workplace for everyone. However, this

remains a challenge, as in many countries it is not very

easy to ind people with the skillset required for our

services.

During 2022, all Quant Americas contracts achieved

the certiication of the Integrated Management

System in accordance with the international standards

ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018.

This milestone reafirms our standing as a irst-class

maintenance asset management company.

2022 was also a special year because we had the

opportunity to get closer to the communities where we

have operations. We created sources of employment in

Carajás, Vitoria and Constitución, because 95% of our

workforce are local residents. We have also developed

social actions in various countries and locations where

we have a presence. In some site locations we are now

inalizing cooperation agreements with local technical

schools and universities.

We are looking forward to a better 2023, when we can

establish and consolidate our position in the market.

KEUR 2022 2021

Net sales 51,437 39,249

Operating profit (loss) -2,080 1,383

Adjusted EBITDA -1,714 1,762

Adjusted EBITDA % -3.3% 4.5%

Net sales 2022 increased to EUR 51.4 million, from EUR 39.2

million prior year, due to new sales and higher revenue

from existing contracts, partially offset by decreased

revenue from mainly one contract in Chile which was lost

in December 2020 and exited at the end of the first quarter

of 2021.

Adjusted EBITDA 2022 was EUR -1.7 million compared

to EUR 1.8 million prior year. This was primarily due to

mobilization of one Brazilian contract impacting the year

negatively, increased selling, general and administrative

expenses and lost contracts. In addition, layoff costs

relating to one renegotiated Chilean contract further

depressed the Adjusted EBITDA, partly compensated by

increased profitability in existing and new contracts.

AMERICAS

Quant’s team at GE Appliances, a Haier company, located

in Louisville, Kentucky, celebrated ive years without a lost

time incident, a remarkable record that shows how focused

we are regarding safety.

This is one of the reasons for the successful relationship

with the customer, which has led us to renew this contract

for three more years.

For Alan Ricchio, Site Manager at GE Appliances, this

accomplishment is due to the strong safety culture. “All our

shifts begin and end their day with a safety talk. Our team

members use digital tools to document safety hazards.

We then create ways to mitigate risk, whether through

process change, personal protective equipment, physical

protection, or safe behavior.”

Five years without LTI in our contract with GE

10,000

20,000

30,000

40,000

50,000

60,000

2021 2022

KEUR

Net sales

-5.0%

-2.5%

0.0%

2.5%

5.0%

-2,000

-1,000

1,000

2,000

2021 2022

KEUR

Adjusted EBITDA EBITDA Margin (%)

NET SALES EBITDA & EBITDA MARGIN

QUANT ANNUAL REPORT 2022 QUANT ANNUAL REPORT 2022

2322

SEGMENTS

QUANT ANNUAL REPORT 2022

EUROPE &

MIDDLE EAST

In region Europe & Middle East, we employ around 600 people,

spread out over six different countries. Our customers are located

all over region Europe & Middle East where we have several

partnership contracts stretching many years back in time.

Through smart services and cost eficiency, we strive to generate

outstanding customer value in our partnerships and to improve

plant performance in a safe and sustainable way.

We tailor our offering and business model to meet and exceed

our customers’ expectations and as a global leader in industrial

maintenance, we have the resources and experience needed to

deliver world-class services to our customers.

Safety was, as always, in focus during the year. Continued efforts

and attention were put on preventive safety actions and last minute

risk assessments during the year. In May, we in the region joined

the annual global Safety week where all employees were involved

in several preventive safety trainings and information sessions.

Several units in the Region Europe & Middle East have had several

thousand days without incidents. In the UAE we had no recordable

incidents during 2022. While several units had zero incidents, we

still had 10 recordable incidents in 2022. As a company and a

region we are aiming to reach zero incidents.

The region delivered good results when it comes to revenue,

EBITDA and cash low. All contracts performed well except for one

contract in Norway where a new wave of Covid-19 at the beginning

of 2022 negatively impacted our inancial result.

We won two contracts in 2022 and renewed four. To renew

a contract is evidence that our services bring value for our

customers and the Quant partnership concept is a successful

solution. When it comes to new sales one of the new contracts was

an addition to an already existing customer but at a new location.

A second contract win was also based on great existing customer

references. The two new contracts were offset by the loss of three

existing contracts causing a decrease in portfolio value for the

region during the year.

We continued our journey for improved productivity and cost

effectiveness through digitalization of maintenance processes.

We have also put a lot of effort into keeping and recruiting new

technicians and engineers and other key personnel. One initiative

in 2022 in this area is a leadership development program offered

to selected employees.

The business climate with inlation and the war in Ukraine have

not had any direct impact on our business but uncertain future

demand for our customers could potentially also inluence our

business.

SEGMENTS

EUROPE & MIDDLE EAST

KEUR 2022 2021

Net sales 69,060 66,882

Operating profit (loss) 3,944 3,523

Adjusted EBITDA 4,067 3,657

Adjusted EBITDA % 5.9% 5.5%

Net sales 2022 increased to EUR 69.1 million, from EUR

66.9 million last year, due to increased scope in existing

contracts and new contracts, partially offset by lost

contracts.

Adjusted EBITDA 2022 was EUR 4.1 million, up from EUR

3.7 million, driven by new contracts, less general and

administration expenses and higher upselling in existing

contracts. This was slightly offset by lost contracts and

higher selling expenses.

EMICOOL is one of the leading district cooling services providers in

UAE with multiple number of sites in Dubai and northern emirates.

District cooling means centralized production and distribution

of cooling energy - chilled water of around five degrees Celsius

that is delivered via an underground, insulated pipeline to offices,

industrial and residential buildings to cool the indoor air.

Total maintenance partnerships

Quant’s model of Total Operations and Maintenance Outsourcing

(TOMO) has been deployed at EMICOOL for their plants in Dubai

Investment Park to improve the overall performance of the plant

and to assure 24/7, plant availability, without disruption to the

cooling water supply and to ensure customer’s obligations as

per the respective contract’s terms and conditions in fulfilling

the agreed services. Our aim is to create value for our customers,

exceed expectations and make every site a reference site.

Key results achieved

Quant is using essential KPIs as an effective tool for improving the

performance in any process areas of the organization or business.

They are developed in consideration with customers processes,

along with the history, benchmark, our performance, and the

customer, to realize the improved results have been delivered.

Some of the great results that were achieved: superior safety

performances by the implementation and continual improvement

of a comprehensive set of safety procedures and processes;

cost savings due to improved energy performance; significant

reduction in plant downtime; and improved plant availability. This

is fully in line with Quant’s value proposition.

Cooling plant – EMICOOL in UAE

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2021 2022

KEUR

Net sales

10%

2,000

4,000

2021 2022

KEUR

Adjusted EBITDA EBITDA Margin (%)

NET SALES EBITDA & EBITDA MARGIN

QUANT ANNUAL REPORT 2022 QUANT ANNUAL REPORT 2022

2524

FINLAND & BALTICS

SEGMENTS

QUANT ANNUAL REPORT 2022

SEGMENTS

KEUR 2022 2021

Net sales 58,876 58,304

Operating profit (loss) 2,531 2,181

Adjusted EBITDA 2,820 2,479

Adjusted EBITDA % 4.8% 4.3%

NET SALES EBITDA & EBITDA MARGIN

Net sales 2022 increased to EUR 58.9 million, from EUR

58.3 million, due to lost contracts, partly compensated by

higher upsell in existing contracts.

Adjusted EBITDA 2022 was EUR 2.8 million, up from EUR 2.5

million, due to good contract management and increased

profitability, partially dampened by lower profitability

during the fourth quarter, as well as less general and

administrative expenses. This was slightly reduced by

higher selling expenses and lost contracts.

FINLAND & BALTICS

Service Center is a unique initiative on its own at Quant, a

concept that combines centralized project and engineering

teams and expertise from local Service Centers. We at

Quant strongly believe it is a successful combination, when

offering our services to current and new customers. We

have carefully planned the location of our current service

centers as well as the future expansion to several new

locations. With the founding of the service centers, we will

have centralized hub-based experts with industrial services

that are either too specific, expensive or would suffer from

low utilization rate at a customer site. In addition to that,

our TMP (Total Maintenance Partnership) sites and new

customers with specific needs for some of our services or

longer projects will have the benefits from the expertise

from the Service Center pool.

It is essential to have an attractive service offering, zero

accidents, be excellent on daily and planning operations,

and provide effective cooperation with our partners and

external customer base.

We strongly believe in this concept, and it will bring

attention to Quant and strengthen our brand and increase

the awareness of the company and our offerings. We also

believe that our services will be sharpened, and knowledge

will be increased and spread within co-workers. This will

continue for years we believe, and we will continue to

ensure that we keep the core of our value proposition that

consists of attractive service offering, improving safety,

creating organizational equity, driving plant performance,

and cost alignment.

Service center is being established in

the Finland & Baltics region

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2021 2022

KEUR

Net sales

Overall, it has been a very eventful year with the pandemic still hampering

daily operations, the war in Ukraine causing rapid market shifts and high

inlation, and the employee market continuing to be very tight. All this

turbulence has forced us to be fast and lexible in shifting our operations to

adapt to these developments. Despite this turmoil, the year has been very

successful on many fronts in the Finland & Baltics region.

Safety continued to be in focus with special emphasis on last minute risk

assessments and quality of preventive safety measures. However, our

incident rate slightly increased, and more investments (both time and

resources) and change management in terms of safety culture are needed

to improve the situation. The work towards zero incidents continues.

Our operations were still impacted by Covid at the beginning of the year.

Fortunately, we had no serious illnesses, but strict rules and caution when

any symptoms appeared resulted in relatively high sick leaves and added

costs. Towards the end of the year the situation normalized, enabling face-

to-face interaction within our own team as well as with customers. This was

one of the key factors in improved staff well-being this year, as well as large

investments in leadership training and improved leadership practices on all

levels of the organization. Our employee satisfaction survey reveals that we

have a motivated management and supervisor team, which is an important

irst step in getting the entire organization on board.

We made some organizational changes, such as ine-tuning the area and

account management model, and introducing a new business area with the

Service Center account. Since this is a cornerstone of our updated strategy

for 2025, a Service Center director was recruited to grow our capabilities in

the existing Service Center network, introduce new locations, and develop

new high-value service offerings such as project management, automation

troubleshooting and condition monitoring services.

During 2022, we saw a continued improvement in customer satisfaction,

with the main drivers being the quality of the services we provide and

our service attitude. This is a result of successful execution of operations

improvement programs and alignment of targets with the customers. There

is still room for improvement in our communication practices with our

customers, which will be relected in 2023 action plans across the region.

Markets for outsourced maintenance were still rather quiet except for

the energy and food sector, which continue to favour the outsourced

maintenance model. Sales focused on pipeline development and ine-

tuning of our value proposition. We did not add any new large customers

to our portfolio, but increased our portfolio value as the result of contract

renewals, scope additions and upselling to existing customers. Contract

renewals such as Metsä Wood and Lantmännen, are evidence that Quant’s

services bring value for our customers. However, we do notice that the

maintenance market is shifting somewhat, particularly in Finland, and we

need to adjust our offering and value proposition towards the more lexible

and complete offering that is requested by our customers. This is in the

core of our 2023 business plan.

Considering market circumstances, we are very pleased with our improved

proitability compared to 2021 – it is a remarkable achievement by the entire

Finland & Baltics organization.

500

1,000

1,500

2,000

2,500

3,000

2021 2022

KEUR

Adjusted EBITDA EBITDA Margin (%)

QUANT ANNUAL REPORT 2022 QUANT ANNUAL REPORT 2022

2726

CONTRACT PORTFOLIO

At 31 December 2022, Quant had 78 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 maintenance, 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 52.6 (42.3)

million are scheduled for renewal during 2023.

During 2022 ive contracts were won, with a combined

annualized net sales of EUR 46.6 million. Three contracts

were scaled down with an annualized net sales of EUR -5.9

million and 20 contracts were renewed with an increased

scope of EUR 3.2 million. Eleven contracts were lost with

annualized net sales of EUR -16.3 million. The combined

effect of these changes, including scope changes in

existing con tracts and exchange rate effects totalling EUR

9.2 million, amount to an increase in the contract portfolio

annualized net sales of EUR 36.8 million to end of period

annualized run rate of EUR 209.7 million, compared to EUR

172.8 million at the end of 2021.

2021

Contract

Portfolio

Won

contracts

Renewed

contracts

Lost

contracts

Scaled down

contracts

Change

in existing

contracts

2022

Contract

Portfolio

172.8

-16.3

209.7

+46.6

-5.9

3.2

+9.2

MEUR

EXECUTIVE MANAGEMENT TEAM

Anders Karlsson

GENERAL COUNSEL

Nationality: Swedish

Location: Sweden

Qualifications/Education:

Considerable experience from

corporate and commercial law

matters, including both public

and private debt financing,

most recently from White &

Case LLP.

Master of Laws and Bachelor

of Science in Business

Administration.

André Strömgren

CFO

Nationality: Swedish

Location: Sweden

Qualifications/Education:

Long experience from finance

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

Qualifications/Education:

Broad experience from digital

strategy development and

execution at management

level in various industries.

BSc in Computer and Systems

Sciences.

Pekka

Venäläinen

REGION MANAGER

EUROPE & MIDDLE EAST

Nationality: Finnish

Location: Sweden

Qualifications/Education:

Broad experience in industrial

customer relations, business

development and maintenance

management. 28 years in ABB.

BSc in Industrial Automation.

Business Administration, General

Management.

EXECUTIVE MANAGEMENT TEAM

Tomas Rönn

CEO

Nationality: Finnish

Location: Sweden

Qualifications/Education:

Extensive international

experience with industrial

business development, sales

and operations during 34 years

at Wärsilä.

BSc, Electrical and Electronics

Engineering

Sebastian

Storbacka

REGION MANAGER

FINLAND & BALTICS

Nationality: Finnish

Location: Finland

Qualifications/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

Qualifications/Education:

Metallurgical Engineer,

has more than 19 years of

experience in mining and

minerals industry, including

overseas assignments in

different industries.

MBA.

Patricio Ibarra

Gomez

CHIEF HUMAN RESOURCES

OFFICER & SAFETY MANAGER

Nationality: Chilean

Location: Chile

Qualifications/Education:

Industrial Engineer, has more

than 19 years of experience in

mining and service industry,

including overseas assignments

in different industries.

Master in Safety and Quality

systems MBA.

Total

Increase

Decrease

QUANT ANNUAL REPORT 2022 QUANT ANNUAL REPORT 2022

2928

BOARD OF DIRECTORS

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-off Committee

reviews and decides on larger contract pursuits and negotiations. The

Finance and Audit Committee prepares matters relating to finance

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 Office 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 Quibot Topco

AB which owns 100% of the shares in Quant AB. Quibot Topco AB is

owned by Permira Credit Solutions II Master Sub S.A.

Quant AB (publ) (Quant, or “the Company”) is a Swedish public company, with privately held shares, and a senior 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 off

Committee

External

auditor

People

Committee

Finance and Audit

Committee

CEO

Management team

Samuel Gross

UNITED KINGDOM

Board member

since 2022

Bo Elisson

SWEDEN

Chairman of the board

since 2022

Alexander Bell

UNITED KINGDOM

Board member

since 2022

Pierre Schöld

SWEDEN

Board member

since 2021,

Employee representative

Tomas Rönn

SWEDEN

Board member

since 2022,

CEO

QUANT ANNUAL REPORT 2022 QUANT ANNUAL REPORT 2022

3130

General about the business

Quant is a supplier of industrial maintenance services and is the global

leader within the area. The business currently operates in 12 countries

in its continuing operations, which are organized into three geographic

regions: Europe & Middle East, Americas, and Finland & Baltics. 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 and was owned until 2022 by Nordic Capital through its

subsidiary Cidron FS Holding AB. In 2022 the majority of shares in Quant

AB were acquired by Permira Credit Solutions II Master Sub S.A. with

Nordic Capital as minority owner. Since then, Quant AB is a wholly-

owned subsidiary of Quibot Topco AB, Swedish corporate ID no. 559374-

5150, which is a limited liability company registered in Sweden having

its registered office in Stockholm. Quibot Topco AB is owned by Permira

Credit Solutions II Master Sub S.A.

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,

Sweden. Since Feb 7, 2019, Quant AB (publ) has its bonds registered

on the EU regulated market of the Luxembourg Stock Exchange. The

company is responsible for headquarter functions for the group and

includes group management as well as group-wide functions.

Development of the company’s business, results and

position

All reported figures refer to continuing operations unless otherwise stated.

Net sales amounted to EUR 179.4 (164.4) million. The increase was due

to new contracts in Europe & Middle East and Americas and increased

upselling in certain existing contracts. The increase was partially offset by

lost contracts. Organic growth was 7.7%. Gross profit for the year was

EUR 20.0 million, a decrease from EUR 21.2 million last year, mainly

driven by lost contracts, the mobilization of one contract in Brazil and the

renegotiated underperforming contract in Chile. This was partially offset

by improved profitability in existing contracts, new contracts and changes

in currency fluctuations, which were EUR 0.5 million compared to EUR

0.2 million last year.

Operating loss for year was EUR -9.7 million, compared to a loss of

EUR -2.8 million prior year. This was driven by write-down of goodwill in

Finland & Baltics of EUR 10 million, lower gross profit and higher general,

administrative and sales expenses (excluding amortization).

Adjusted EBITDA, excluding the impact from IFRS 16, for the full year

was EUR 4.7 million, compared EUR 7.2 million prior year mainly due to

due to lower gross profit, and higher general, administration and selling

expenses. In constant currency the adjusted EBITDA was EUR 4.6 (7.3)

million.

Financial items amounted to EUR -13.2 (-14.1) million.

Net loss for the year amounted to EUR -21.9 million compared to a loss of

EUR -15.5 million prior year and was driven by a write-down of goodwill,

lower gross profit and higher general, administrative and sales expenses.

Cash flow from operating activities in 2022 amounted to EUR 7.7 (-1.8)

million. Change in working capital was EUR 9.8 (-3.1) million mostly due

to an increase in operational liabilities.

Financial position

Interest-bearing liabilities after deduction of financing costs, and excluding

lease liabilities, amounted to EUR 86.3 (144.9) million. Net debt excluding

the impact of IFRS 16 implementation amounted to EUR 71.9 (135.3)

million, whereas Net debt with IFRS 16 effects included (Net Debt IFRS

16) amounted to EUR 73.9 (138.7) million. With EUR 14,4 million in cash

at the end of 2022 the Group had a good liquidity position. The change

in ownership of Quant led to a significant decrease in interest-bearing

liabilities during 2022. This is explained in the section Significant events

during the fiscal year and in Note 28 Interest-bearing liabilities.

Discontinued operations

The Adjusted EBITDA for discontinued operations 2022 was EUR 0.5

(-0.9) million and net profit was EUR 0.6 (-7.4) million. The change in net

loss for discontinued operations compared to the previous year was due

to a write down of intangible assets in 2021.

Multi-year overview, Group including discontinued

operations

Engagement and responsibility

It is the board of directors who is responsible for the corporate governance

statement for the year 2022 (the financial year 2022) 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 sufficient 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 27, 2023

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 financial reporting

The Board of Directors are 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 finance 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 financial

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 finance 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

effectiveness, implementation and supervision of monitoring of the

internal control environment within the Group. The CFO is responsible

for the operational effectiveness 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 financial

positions and that there are procedures in place to ensure that employees

in key financial positions have the requisite knowledge and skills.

Reporting routines

The financial reporting should provide sufficient, up-to-date and reliable

information of a financial and non-financial nature. As far as possible,

management reporting is directly linked to the financial reporting and to

the consolidation tool.

Local management and accounting teams report their financial 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

financial and operational reviews, are carried out according to a structure

in which sales, earnings, cash flow 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 different levels. Other

important and group-wide components of the reporting routines are the

annual budgeting process, the quarterly forecasting, and the weekly cash

flow forecast process.

To ensure the efficiency of internal control over financial reporting,

reviews are carried out by the Board, the audit committee, the CEO, the

Group Management Team, the central finance and treasury team and the

Group’s various subsidiaries. Every month, financial reports are reviewed

against budget and established targets and risks related to the financial

reporting are assessed.

Basis for financial 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 financial reporting are

reported in conformity with IFRS valuation principles and are

correctly calculated and summarized and appropriately recorded.

• Presentation and disclosure; items in the financial reports are

properly described, sorted and classified.

CORPORATE GOVERNANCE REPORT

MANAGEMENT REPORT

MEUR 2022 2021 2020 2019 2018

Net sales 179.4 165.4 171.2 204.7 197.7

Operating profit/loss -9.2 -10.2 -4.6 -18.4 -7.2

Profit/loss for the year -21.3 -22.9 -18.4 -24.5 -21.6

Cash flow from

operating activities

8.1 -2.6 7.7 -1.9 -0.6

FTE 2,637 2,373 2,357 2,562 2,882

MANAGEMENT REPORT

QUANT ANNUAL REPORT 2022 QUANT ANNUAL REPORT 2022

3332

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.

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 modern services

where our services are not competitive in relation to those offered by our

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 monitors its IT infrastructure and

applications for cyber security risks to remediate where required and

proactively manage its defense. Cyber security control failures are 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 digital unit constantly works to proactively eliminate

these risks and, as one part of this, perform regular end-user trainings

to increase general awareness, as well as work with the organization to

continually avert risks.

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. 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.

Use of financial instruments

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,

2022, there is no currency swaps hedging for intercompany loans.

Permit or notification required under the Environmental

Code

The Group does not operate a business that requires any permit or

notification.

Sustainability report

Quant’s Sustainability Report 2022 is reported separately from this

Annual Report. The statutory Sustainability Report is found on Quant’s

homepage at www. quantservice.com/investors

Proposed appropriation of non-restricted equity

Non-restricted equity in the parent company at the disposal of the Annual

General Meeting:

Significant events during the fiscal year and after the end

of the financial year

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 was expected to become the new majority owner of Quant.

Nordic Capital was expected to remain as a minority shareholder. The

agreement between Permira Credit and Nordic Capital was 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, as part of the agreement with Nordic Capital,

provided EUR 10 million of new capital as a cash injection on the balance

sheet. Amounts corresponding to the junior bond and certain shareholder

loans were also be capitalized resulting in the release 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 were 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. On 16 June 2022 the final

amendments to became effective, and Permira Credit became the

majority owner of Quant. On 12 December the merger of Quant AB (publ)

and Quibot Bidco AB, where the latter was absorbed by Quant, was

finalized and registered. The merger completed all obligations under the

transaction, for instance that junior bonds and shareholder loans totaling

EUR 59 million were extinguished which meant an implicit contribution of

liabilities in Quant AB recorded in equity. Quibot Bidco AB was a wholly-

owned subsidiary of Quibot Topco AB and as a consequence of the

merger, Quant AB is now a wholly-owned subsidiary of Quibot TopCo AB.

On 22 June 2022 it was announced that Quant Brazil signed a

maintenance service contract with an international mining company.

The scope of the contract is three production facilities in Northern

Brazil for two years. The contract increased Quant’s contract

portfolio value by EUR 13 million in the second quarter of 2022.

On 29 July 2022 Quant announced that Quant Chile signed a total

maintenance contract with Arauco. The contract encompasses two

mills, Licancel and Constitucion I Chile. The contract increased Quant’s

contract portfolio by EUR 30 million during the third quarter of 2022.

Important events after the end of the fiscal year

There were no significants events that took place after the end of the

fiscal year.

Covid impact and risk for Quant

The effects of the global Covid-19 pandemic subsided during 2022 and

related risks were significantly decreased. Quant was impacted at the

beginning of the year with high employee sick leave which negatively

impacted our financial results in the first quarter but normalcy was

regained throughout the remainder of the year.

Important conditions

The group has operations in 12 countries with 12 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.

Expected future development and important risks and

insecurity factors

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 and macroeconomic

situation, among others, the war in Ukraine, higher inflation, high energy

prices, a higher trend in global interest rates, continued impact from the

global pandemic and the trend towards a more protectionist political

rhetoric 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

Share premium 9,525

Retained earnings 103,177

Loss of the year -24,160

Total 88,541

The board of Directors and CEO propose this amount be appropriated as

follows:

Amount carried forward 88,541

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.

MANAGEMENT REPORTMANAGEMENT REPORT

QUANT ANNUAL REPORT 2022 QUANT ANNUAL REPORT 2022

3534

FINANCIAL STATEMENTS

KEUR Note 2022 2021

Continuing operations

Net sales 179,374 164,435

Cost of sales -159,391 -143,207

Gross profit 19,983 21,228

General and administrative expenses -16,536 -21,209

Selling expenses -2,870 -2,466

Research and development expenses -297 -294

Other operating income 71 0

Other operating expenses -10,032 -37

Operating Loss 6, 7, 8, 19 -9,681 -2,778

Profit/Loss from financial items

Interest income and similar profit/loss items 9 86 22

Interest expense and similar profit/loss items 10 -14,949 -13,595

Foreign exchange gains and losses 9, 10 1,626 -575

Total financial items -13,236 -14,148

Profit/loss after financial items -22,917 -16,926

Taxes 11 1,033 1,426

Loss for the year, continuing operations -21,884 -15,500

Net profit (loss), discontinued operations 36 621 -7,358

Net profit (loss), Group total -21,263 -22,858

Basic earnings per share*, EUR 12

Continuing operations -7.44 -30.92

Discontinued operations 0.21 -14.72

Group total -7.23 -45.64

Consolidated Income Statement

FINANCIAL STATEMENTS

*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.

Consolidated Statement of Comprehensive Income

KEUR Note 2022 2021

Loss for the year -21,263 -22,858

Other comprehensive income

Items that have been or could be reallocated to profit/loss

Translation differences pertaining to foreign operations -2,424 245

Items that could not be reallocated to profit/loss

Revaluation of defined benefit plans 1,386 1,287

Tax pertaining to items that could not be reallocated to profit/loss -271 -252

1,114 1,035

Total other comprehensive income -1,310 1,280

Comprehensive income for the period -22,573 -21,578

Attributable to:

Shareholders of the parent company -22,573 -21,578

Non-controlling interest - -

Consolidated Statement of Financial Position

KEUR Note Dec 31 2022 Dec 31 2021

ASSETS 13,17

Non-current Assets 14, 15, 16, 17

Intangible assets

Goodwill 18 61,613 72,527

Other intangible assets 19 11,472 13,898

Total Intangible assets 73,084 86,424

Property, plant and equipment

Property, plant and equipment 18 2,597 1,598

Right of use assets 19 1,893 3,185

Total property, plant and equipment 4,490 4,783

Deferred tax asset 22 2,784 1,742

Other non-current receivables 35 26

Total non-current assets 80,394 92,975

Current Assets

Inventories

Raw materials and consumables 940 916

Products in progress 693 486

Total inventories 1,632 1,402

Current receivables

Accounts receivable - trade 23 19,945 24,498

Current tax assets 829 711

Other receivables 1,695 1,200

Prepaid expenses and accrued income 24 11,644 5,686

Total current receivables 34,113 32,095

Cash and bank 25 14,389 9,648

Assets held for sale 35 218 457

Total current assets 50,352 43,601

TOTAL ASSETS 130,746 136,576

FINANCIAL STATEMENTS

QUANT ANNUAL REPORT 2022 QUANT ANNUAL REPORT 2022

3736

FINANCIAL STATEMENTS

Consolidated Statement of Financial Position, continued

KEUR Note Dec 31 2022 Dec 31 2021

EQUITY AND LIABILITIES

Equity

Share capital 528 53

Other added capital 104,025 94,500

Reserves -3,037 -613

Loss brought forward, incl. net loss for the year -110,164 -149,171

Total Equity -8,649 -55,231

Non-current liabilities

Liabilities to credit institutions 86,327 136,341

Provisions for pensions and similar obligations 26 1,294 2,441

Provisions for taxes 22 2,809 3,443

Leasing liabilities 841 1,502

Total non-current liabilities 91,272 143,727

Current liabilities

Liabilities to credit institutions 3, 28 – 8,602

Accounts payable - trade 10,303 8,298

Leasing liabilities 19 1,148 1,869

Current tax liability 879 508

Other provisions 27 835 515

Other current liabilities 21 8,548 7,840

Accrued expenses and deferred income 29 25,753 19,751

Liabilities related to assets held for sale 35 656 698

Total current liabilities 48,123 48,080

TOTAL EQUITY AND LIABILITIES 130,746 136,576

KEUR Share capital Other Reserves Retained Total Equity

Opening balance 2021-01-01 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

Profit/loss for the year -21,263 -21,263

Other comprehensive income/loss - - -2,424 1,114 -1,310

Total comprehensive income/loss for

the year

- - -2,424 -20,149 -22,573

Directed share issue 475 475

Capital injection 9,525 - - 9,525

Merger result - 59,155 59,155

Closing balance 2022-12-31 528 104,025 -3,037 -110,165 -8,649

Statement of Changes In Consolidated Equity

FINANCIAL STATEMENTS

Statement of Consolidated Cash Flows

KEUR Note 2022 2021

Continuing operations

Operating activities

Loss after financial items -22,917 -16,926

Adjustments for non-cash items

Depreciation and amortization 14,679 9,784

Depreciation and amortization, right of use assets 1,689 2,158

Change in provisions -952 -1,546

Unrealized exchange rate differences -4,104 607

Other non-cash items 33 9,929 7,609

Total adjustments not included in cash flow 21,241 18,612

Income tax paid -439 -342

Cash flow from operating activities before changes in working capital -2,114 1,345

Changes in working capital

Increase (-) / Reduction (+) of inventories -293 -24

Increase (-) / Reduction (+) of current receivables -1,704 -2

Increase (+) / Reduction (-) of current liabilities 11,809 -3,099

Cash flow from changes in working capital 9,812 -3,125

Cash flow from operating activities 7,698 -1,781

Investing activities

Investments in intangible assets 17 -1,413 -50

Investments in tangible assets 19 -1,708 -894

Investments in financial fixed assets -8 7

Cash flow from investing activities -3,129 -937

Financing activities

Capital injection 9,525 -

New shares issued 12 475 -

Expenses related to extension of Senior Bond -4,779 -

Repayment of loans 33 -4,000 -7,000

Amortization lease liabilities 33 -1,777 -1,369

Cash flow from financing activities -555 -8,369

Cash flow for the year, continuing operations 4,013 -11,087

Discontinued operations

Cash flow for the year, discontinued operations 818 -827

Group total

Cash flow for the year, Group total 4,831 -11,914

Cash and cash equivalents at the beginning of the year 25 9,648 21,351

Exchange rate differences in cash and cash equivalents -89 210

Cash and cash equivalents at the end of the year 25 14,389 9,648

QUANT ANNUAL REPORT 2022 QUANT ANNUAL REPORT 2022

3938

FINANCIAL STATEMENTS

Parent Company Income Statement

KEUR Note 2022 2021

Net sales 9,932 10,752

Cost of sales -2,497 -2,496

Gross profit 7,435 8,256

Research and development expenses -4,272 -5,189

General and administrative expenses -403 -303

Selling expenses -302 -310

Other operating income - -

Other operating expenses 6, 7, 8, 19 231 43

Operating Loss 2,688 2,497

Profit/Loss from financial items

Interest income and similar profit/loss items 9 2,700 2,845

Interest expense and similar profit/loss items 10 -13,018 -12,259

Other financial items 9, 10 -17,295 -7,333

Foreign exchange gains and losses 9, 10 993 24

Total financial items -26,619 -16,724

Profit/loss before tax -23,931 -14,226

Taxes 11 -229 -145

Loss for the year -24,160 -14,371

Parent Company Statement of Comprehensive Income

KEUR Note 2022 2021

Net profit/loss for the year -24,160 -14,371

Total comprehensive income -24,160 -14,371

FINANCIAL STATEMENTS

Parent Company Statement of Financial Position

KEUR Note Dec 31 2022 Dec 31 2021

ASSETS

Non-current assets

Intangible assets

Other intangible assets 16 1,408 -

Total intangible assets 1,408 -

Property, plant and equipment

Right of use assets 19 370 519

Total property, plant and equipment 370 519

Financial assets

Participations in group companies 20 80,245 96,285

Deferred tax asset 22 225 224

Total financial assets 80,470 96,509

Total non-current assets 82,248 97,027

Current Assets

Current receivables

Receivables from group companies 106,855 106,343

Other receivables 311 171

Prepaid expenses and accrued income 24 664 421

Total current receivables 107,829 106,935

Cash and bank 25 2,546 1,393

Total current assets 110,376 108,328

TOTAL ASSETS 192,624 205,355

EQUITY AND LIABILITIES Dec 31 2022 Dec 31 2021

Equity

Restricted equity

Share capital 528 53

Reserve for development expenditures 1,408 -

Total Restricted equity 1,936 53

Non-restricted equity

Profit or loss brought forward 45,430 59,801

Merger result 59,155 -

Transfer to reserve for development expenditures -1,408 -

Net profit/loss for the year -24,160 -14,371

Share premium reserve 9,525 -

Total non-restricted equity 88,541 45,430

Total Equity 90,478 45,483

QUANT ANNUAL REPORT 2022 QUANT ANNUAL REPORT 2022

4140

KEUR Note Dec 31 2022 Dec 31 2021

Non-current liabilities

Liabilities to credit institutions 3, 26 86,327 136,341

Leasing liabilities 19 203 353

Total non-current liabilities 86,531 136,693

Current liabilities

Liabilities to credit institutions 3, 26 - 8,602

Accounts payable - trade 844 208

Liabilities to group companies 11,306 11,173

Leasing liabilities 19 178 178

Other current liabilities 555 437

Accrued expenses and deferred income 29 2,733 2,580

Total current liabilities 15,616 23,179

TOTAL EQUITY AND LIABILITIES 192,624 205,355

KEUR Share

Capital

Other

contributed

equity

Reserves Retained

earnings

Total Equity

Closing balance 2021-01-01 53 59,801 59,854

Total comprehensive income for the period -14,371 -14,371

Closing balance 2021-12-31 53 45,430 45,483

Total comprehensive income for the period -24,160 -24,160

Transfer from non-restricted to restricted equity,

reserve for development expenditures

1,408 -1,408 -

Merger result 59,155 59,155

Transactions with shareholders

Capital injection 475 9,525 10,000

Closing balance 2022-12-31 528 9,525 1,408 79,016 90,478

Parent Company Statement of Changes in Equity

FINANCIAL STATEMENTS

Parent Company Statement of Cash Flows

KEUR Note 2022 2021

Continuing operations

Operating activities

Loss after financial items -23,931 -14,226

Adjustments for non-cash items

Depreciation and amortization - 6

Depreciation and amortization, right of use assets 148 148

Write-down shares in subsidiaries 16,040 -

Unrealized exchange rate differences -1,272 -9

Change in provisions - -148

Other non-cash items

6,884 10,112

Total adjustments not included in cash flow 21,800 10,109

Income tax paid -191 -272

Cash flow from operating activities before changes in working capital -2,322 -4,389

Changes in working capital

Increase (-) / Reduction (+) of inventories - -

Increase (-) / Reduction (+) of current receivables -760 1,940

Increase (+) / Reduction (-) of current liabilities 2,818 -791

Cash flow from changes in working capital 2,058 1,149

Cash flow from operating activities -264 -3,240

Investing activities

Investments in intangible assets -1,408 -

Cash flow from investing actiivities -1,408 -

Financing activities

Capital injection 9,525 -

New shares issued 475 -

Expenses related to extension of Senior Bond -4,779 -

Repayment of loans

-4,000 -7,000

Change in loans to group companies

1,773 3,955

Amortization lease liabilities

-149 -138

Cash flow from financing activities 2,845 -3,183

Cash flow for the year 1,172 -6,423

Cash and cash equivalents at the beginning of the year

1,393 7,814

Exchange rate differences in cash and cash equivalents -18 2

Cash and cash equivalents at the end of the year

2,546 1,393

FINANCIAL STATEMENTS

4342

QUANT ANNUAL REPORT 2022

NOTES

QUANT ANNUAL REPORT 2022

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 27 April 2023. The Balance Sheets and Income Statements

will be subject to approval by the Annual General Meeting on 25 May

2023.

Basis for appraisal applied when establishing the financial

statements

Assets, provisions and liabilities have been valued at acquisition values

unless otherwise stated below.

Functional currency and reporting currency

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.

Assessments and estimates in the financial statements

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.

Disclosures of such IFRS standards or interpretations that

have entered into force in 2022

Disclosure of such IFRS standards or interpretations that

have not yet entered into force

No other changes to accounting standards with future application are

considered to have any material effect on the consolidated accounts.

Classification

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.

Consolidation principles and business combinations

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.

Foreign currency

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

NOTES

Note 1 Accounting principles

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.

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 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.

Leasing

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.

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.

Financial income and expenses

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.

Taxes

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

4544

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NOTES

QUANT ANNUAL REPORT 2022

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.

Financial instruments

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.

Financial assets – classification and subsequent

measurement

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

Accounts receivable and other receivables

The expected maturity of accounts receivable and other receivables is

short, and values are recognized at nominal amounts with no discounts.

Cash and cash equivalents

Cash and cash equivalents consist of cash and bank balances at financial

institutions 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.

Financial liabilities – classification and subsequent

measurement

Interest-bearing liabilities

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

Property, plant and equipment

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

Intangible assets

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.

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

Impairment

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, which 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.

Inventory

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.

Payment of capital to the owners

Dividends are recognized as a liability after the Annual General Meeting

approves the dividend.

Employee Benefits

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.

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NOTES

QUANT ANNUAL REPORT 2022

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.

Provisions

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.

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.

Discontinued operations

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.

Contingent liabilities

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.

Earnings per share

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.

Parent Company Accounting Policies

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.

Differences between the group’s and the parent company’s

accounting policies

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.

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QUANT ANNUAL REPORT 2022

NOTES

QUANT ANNUAL REPORT 2022

Note 2 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.

Pension obligations

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.

Intangible assets

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.

Note 3 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.

Market risk

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 non-euro currencies relevant for Quant

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 5% (8%).

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.

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.

Interest rate risk

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, 2022 there were

no such interest rate derivative outstanding.

The average fixation period for the group’s borrowings

(excluding shareholder loans) at the end of 2022 was 0.1 (1.2)

years. On the basis of interest rate exposure as of December

31, 2022, a change in market interest rates of one percentage

point would affect the group’s net financial items by EUR +/- 0.9

(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.

Credit risk

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, 2022 the provision for bad debts amounted

to EUR 0.2 (0.0) million. Further information regarding Accounts

receivable and contract assets and provision for bad debts are

found in note 23.

Liquidity risk and financing risk

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.

Financial covenants

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 as well as where the Group cash and bank balances and

available working capital facility may not go below certain

ratios, both of which are measured quarterly in connection with

the quarterly reports. 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.

5150

QUANT ANNUAL REPORT 2022

NOTES

QUANT ANNUAL REPORT 2022

Maturity structure financial liabilities – undiscounted cash flows

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.

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 bonds and a bank facility, which contains financial commitments,

so-called covenants, which limits the group’s ability to act freely. For more information, see the Financial covenants paragraph above.

Note 4 Segment reporting

Europe & Middle East Americas Finland & Baltics

2022 2021 2022 2021 2022 2021

Net sales external 69,060 66,882 51,437 39,249 58,876 58,304

Net sales intra-segment 533 794 7 74 1,072 970

Total net sales 69,593 67,675 51,444 39,323 59,948 59,274

Cost of sales -58,257 -56,362 -48,060 -33,825 -52,212 -51,984

Gross profit 11,335 11,313 3,385 5,498 7,736 7,291

Operating expenses -7,391 -7,791 -5,465 -4,115 -5,205 -5,110

Operating profit (loss) 3,944 3,523 -2,080 1,383 2,531 2,181

Depreciation 110 91 362 357 238 227

Amortization 13 21 4 22 52 71

Write-down of tangible assets - 22 - - - -

EBITDA before non-recurring items 4,067 3,657 -1,714 1,762 2,820 2,479

Non-recurring items - - -

Adjusted EBITDA IFRS16

Adjusted EBITDA margin

IFRS 16 impact on EBITDA

Adjusted EBITDA 4,067 3,657 -1,714 1,762 2,820 2,479

Adjusted EBITDA margin 5.9% 5.5% -3.3% 4.5% 4.8% 4.3%

Financial items*

Profit/loss before taxes

Taxes*

Loss for the year

2022

Nominal amount,

local currency

Total <1 years 1-5 years > 5 years

Senior Secured Bonds (EUR) 92,000 92,000 92,000

Junior Secured Bonds (EUR)

Super Senior RCF (EUR)

External loan (SEK)

Shareholder loan (EUR)

Capitalized borrowing costs -5,673 -801 -4,872

Leasing liabilities 1,990 1,148 841

Trade payables 10,303 10,303 -

Other liabilities 8,548 8,548 -

Total 107,169 19,199 87,970

Interest expense 16,100 4,891 11,209

Total 123,269 24,090 99,178

2021

Nominal amount,

local currency

Total <1 years 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 (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 liabilities 7,840 7,840 - -

Total 164,450 24,656 139,794 -

Interest expense 16,565 11,362 5,203 -

Total 181,015 36,018 114,997 -

5352

QUANT ANNUAL REPORT 2022

NOTES

QUANT ANNUAL REPORT 2022

Other and elimin Group (Continued operations)

2022 2021 2022 2021

Net sales external 0 - 179,374 164,435

Net sales intra-segment -1,611 -1,837 0 -

Total net sales -1,611 -1,837 179,374 164,435

Cost of sales -862 -1,037 -159,391 -143,207

Gross profit -2,473 -2,874 19,983 21,228

Operating expenses -11,928 -7,409 -29,990 -24,425

Operating profit (loss) -14,401 -10,283 -10,007 -3,197

Depreciation 0 6 709 681

Amortization 3,813 8,968 3,883 9,082

Write-down of tangible assets 10,087 - 10,087 22

EBITDA before non-recurr items -501 -1,310 4,672 6,588

Non-recurring items - 621 - 621

Adjusted EBITDA IFRS16 6,688 9,786

Adjusted EBITDA margin 3.7% 6.0%

IFRS 16 impact on EBITDA -2,015 -2,577

Adjusted EBITDA -501 -688 4,672 7,209

Adjusted EBITDA margin 2.6% 4.4%

Financial items* -13,236 -14,148

Profit/loss before taxes -22,917 -16,926

Taxes* 1,033 1,426

Loss for the year -21,884 -15,500

*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 & Middle East, 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 2022, there is no customer who accounts for more than 10%

of Quant’s external revenue.

Geographic areas

Sales figures are based on the country in which the customer is located.

Assets are reported in the location of the asset.

Revenue

KEUR

2022 2021

Sweden 32,653 31,159

Finland 52,584 52,181

Chile 26,881 22,519

Other countries 67,255 58,577

Total 179,374 164,435

Non-current assets *

KEUR

2022 2021

Sweden 2,300 1,580

Finland 1,022 1,062

Chile 652 925

Other 1,997 1,346

Total 5,971 4,912

*Excluding pension assets but including right-of-use assets

Note 5 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.

Order backlog (Unfulfilled performance obligations)

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 2022, Quant’s contract portfolio was

EUR 209.7 (172.8) 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

5554

QUANT ANNUAL REPORT 2022

NOTES

QUANT ANNUAL REPORT 2022

Note 6 Employees and personnel costs

Average number of full-time employees (FTEs)

2022 of which men, % 2021 of which men, %

Parent

Sweden 6 68% 7 67%

Total in the parent company 6 68% 7 67%

Group

Sweden 282 86% 259 89%

Denmark 0 11 100%

Estonia 99 78% 102 78%

Finland 444 97% 458 97%

Germany 1 100% 1 100%

Czech Republic - 23 100%

Poland - 10 95%

Hungary 5 100% 5 100%

Peru 10 93% 11 95%

Norway 139 95% 141 96%

Switzerland 26 87% 25 87%

Spain 28 86% 24 84%

United Arab Emirates 122 100% 118 100%

Mexico 13 68% 11 70%

USA 37 98% 33 97%

Argentina 8 100% 23 100%

Brazil 832 90% 487 91%

Chile 711 94% 610 95%

China - 15 77%

Total Group including Parent company 2,762 92% 2,373 93%

Of which discontinued operations 1 100% 16 78%

Continuing operations 2,761 92% 2,357 93%

Total Group including Parent company 2,762 2,373

Gender distribution in on the Board of Directors and in Group management

2022 of which women, % 2021 of which women, %

Board of Directors 0% 0%

Other senior executives 20% 0%

Salaries, other remunerations and social expenses

2022 2021

KEUR

Salaries and

remuneration

Social security

contributions

Salaries and

remuneration

Social security

contributions

Parent company 1,562 799 1,450 896

of which pension costs, 1) 444 539

Subsidiaries 89,015 24,167 79,186 21,071

of which pension costs 6,547 6,572

Group in Total 90,576 24,967 80,636 21,967

Of which Discontinued operations 2) 124 16 619 145

Continuing operations 2) 90,452 24,950 80,017 21,822

of which pension costs continuing operations 6,991 7,090

1) Of the Parent company’s pension costs, EUR 241 (351) thousand is for senior management, in total 2 (4) persons. CEO pension costs amounted

to EUR 170 (162) thousand.

Salaries, other remunerations allocated between Board members, CEO and other senior executives

2022 2021

KEUR Board and CEO

Other senior

executives

Board and CEO Other senior executives

Group 609 601 518 499

of which bonus, etc 111 66 8 9

Group in Total 609 601 518 499

of which bonus, etc 111 66 8 9

Salaries and other remunerations to Board of Directors

KEUR

2022 2021

Mikael Norin, Chairman 37 54

Olof Faxander 5 11

Per Hallius 17 25

Casper Lerche 5 10

Henrik Sandréus 5 10

Bo Elisson 61 -

Total Board of Directors 129 109

In 2022, the CEO was entitled to a maximum of 80% of annual salary as a bonus (defined as monthly salary times twelve). Other

senior executives were entitled to between 25% and 40% of annual salary. Total remuneration to the CEO including bonus for the

financial year 2022 amounted to EUR 0.5 (0.4) million. Salaries and remuneration for senior executives, excluding the Board of

Directors and the CEO, amounted to EUR 0.6 (0.5) million. During the year, senior executives consisted of CEO, CFO, COO (January

1 through August 31) and General Counsel.

Severance

The 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.

5756

QUANT ANNUAL REPORT 2022

NOTES

QUANT ANNUAL REPORT 2022

Note 10 Financial expenses

Group Parent company

KEUR 2022 2021 2022 2021

Interest expense, external -13,103 -12,222 -12,833 -12,164

Interest expense, group companies - - -147 -47

Interest expense leasing -229 -351 -37 -48

Write down of shares in subsidiaries - - -16,040 -5,000

Write down of loan to subsidiary - - - -330

Foreign exchange losses - -575 - -

Other -1,617 -1,022 -1,799 -977

Total financial costs -14,949 -14,170 -30,857 -18,566

Group contributions paid - -1,026

Note 11 Taxes

Group Parent company

KEUR 2022 2021 2022 2021

Current tax -923 -674 -244 -369

Current tax attributable to previous year 17 -191 14 -

Deferred tax 1,939 2,291 1 224

Total taxes 1,033 1,426 -229 -145

Reconciliation of effective tax

Group

KEUR 2022 % 2022 2021 % 2021

Profit before tax -22,454 -24,347

Tax according to applicable tax rates for the parent 21% 4,626 21% 5,210

Effect of other tax rates on foreign subsidiaries 2% 525 2% 478

Non-deductible costs -23% -5,191 -28% -6,821

Non-taxable income - 112 - 12

Withholding tax - -47 1% 277

Deferred tax on temporary differences 9% 1,939 9% 2,292

Effects of loss carryforward, net -4% -948 1% 95

Tax attributable to previous years 1% 175 - -118

Reported effective tax* 5% 1,191 6% 1,426

Parent company

KEUR 2022 % 2022 2021 % 2021

Profit before tax -23,931 -9,226

Tax according to applicable tax rates for the parent 21% 4,930 21% 1,974

Non-deductible costs -22% -5,239 -29% -2,636

Non-taxable income - 112 - -

Withholding tax - -47 3% 277

Deferred tax on temporary differences - 1 2% 224

Utilization of tax loss carryforwards not previously

recognized

- - - 16

Reported effective tax -1% -229 -2% -145

Note 8 Expenses by Nature

Continuing operations

Group Parent company

KEUR

2022 2021 2022 2021

Materials and consumables 18,716 17,779 - -

Personnel expenses 122,380 107,538 2,461 2,393

Other external expenses 31,661 29,954 4,638 5,708

Depreciation, amortization and impairment 16,368 11,942 148 154

Total expenses 189,126 167,213 7,247 8,254

Note 9 Interest income and similar profit/loss items

Group Parent company

KEUR

2022 2021 2022 2021

Interest income, external 86 22 11 2

Interest income, group companies - 2,689 2,843

Foreign exchange gains 1,626 - 993 24

Total 1,713 22 3,694 2,868

Group Parent company

KEUR

2022 2021 2022 2021

PricewaterhouseCoopers

Audit engagement 294 292 104 112

Audit activities not including audit engagement 5 4 5 -

Total PricewaterhouseCoopers 299 296 109 112

Other auditors

Audit engagement 61 50 - -

Audit activities not including audit engagement - 17 - -

Total Other auditors 61 67 - -

Total Auditors' fees 361 363 109 112

Note 7 Auditors’ fees

*Of which EUR 1,033 (1,362) thousand is continued operations and EUR 159 (64) thousand related to discontinued operations. The Group’s unutilized

loss carry-forwards for which no deferred tax assets are recognized amount to EUR 35 (34) million. Of this amount, EUR 15 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 stateme nt of financial position

currently contains no deferred tax assets relating to accumulate loss carry-forwards.

5958

QUANT ANNUAL REPORT 2022

NOTES

QUANT ANNUAL REPORT 2022

Note 12 Earnings per share

Group total

Group

KEUR 2022 2021

Net loss for the year attributable to Parent company shareholders -21,263 -22,858

Weighted average number of shares during the year 2,941,096 500,000

*Earnings per share, EUR -7.23 -45.72

Continuing operations

KEUR 2022 2021

Net loss for the year attributable to Parent company shareholders -21,884 -15,500

Weighted average number of shares during the year 2,941,096 500,000

Earnings per share, EUR -7.44 -30.92

Discontinued operations

KEUR 2022 2021

Net loss for the year attributable to Parent company shareholders 621 -7,358

Weighted average number of shares during the year 2,941,096 500,000

Earnings per share, EUR 0.21 -14.72

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.

Number of shares and share capital

The total number of shares in the Parent company is 5,000,000 (500,000) and the entire amount is comprised of common shares. 450,000 new shares

were emitted in June 2022 when Quant AB’s ownership structure changed. Share capital in the Parent company is EUR 527,727 (52,733).

Group

KEUR 2022 2021

Opening acquisition cost 86,122 86,029

Translation differences -1,010 93

Closing acquisition cost 85,112 86,122

Opening accumulated impairment losses -13,596 -8,142

Impairment losses -10,058 -5,161

Translation differences 153 -293

Closing accumulated impairment losses -23,500 -13,596

Net carrying amount at year-end 61,613 72,527

Note 13 Goodwill

Note 14 Customer contracts

Group

KEUR 2022 2021

Opening acquisition cost 50,080 49,895

Translation differences 9 185

Closing acquisition cost 50,089 50,080

Opening accumulated amortization -44,407 -37,559

Amortization for the period -1,531 -6,701

Translation differences -20 -147

Closing accumulated amortization -45,958 -44,407

Opening accumulated impairment losses -1,718 -1,303

Impairment losses - -394

Translation differences 11 -22

Closing accumulated impairment losses -1,707 -1,718

Net carrying amount at year-end 2,424 3,954

For information regarding impairment testing see note 17.

Note 15 Customer relations

Group

KEUR 2022 2021

Opening acquisition cost 28,769 28,735

Translation differences 68 34

Closing acquisition cost 28,836 28,769

Opening accumulated amortization -16,222 -13,947

Amortization for the period -2,283 -2,267

Translation differences -22 -8

Closing accumulated amortization -18,527 -16,222

Opening accumulated impairment losses -2,707 -1,913

Impairment losses -29 -753

Translation differences 29 -42

Closing accumulated impairment losses -2,707 -2,707

Net carrying amount at year-end 7,602 9,840

6160

QUANT ANNUAL REPORT 2022

NOTES

QUANT ANNUAL REPORT 2022

Note 16 Other intangible assets

Group Parent company

KEUR 2022 2021 2022 2021

Opening acquisition cost 8,858 9,549 7,676 7,676

Investments 50 -

Disposals 1,413 -6 1,408 -

Reclassifications to discontinued operations - -715 - -

Translation differences -34 -19 - -

Closing acquisition cost 10,238 8,858 9,408 7,676

Opening accumulated amortization -8,734 -9,156 -7,676 -7,676

Disposals - 4 - -

Amortization for the year -70 -112 - -

Reclassifications to discontinued operations - 513 - -

Translation differences 31 18 - -

Closing accumulated amortization -8,772 -8,734 -7,676 -7,676

Opening accumulated impairment losses -22 - -

Impairment losses - -22 -

Translation differences 2 -

Closing accumulated impairment losses -20 -22 -

Net carrying amount at year-end 1,446 103 -

Note 17 Impairment

Goodwill and other immaterial assets are allocated to three cash-

generating units (CGE) as follows:

Europe & Middle East

Americas

Finland & Baltics

Quant carried out its annual impairment test on Goodwill as of 30

November 2022. 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 and

one month, from 1 December 2022 until 31 December 2025. 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 and one month period are based

on an average annual growth rate of -0.9 (13) 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 10.6 (8.1) percent after tax.

Americas

Cash flow forecasts for the three-year and one month period are based

on an average annual growth rate of 27.8 (34.6) 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 15.2 (9.4) percent after tax.

Finland and Baltics

Cash flow forecasts for the three-year and one month period are based

on an average annual growth rate of 8.6 (6.3) 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 11.2 (8.7) percent after tax.

The result of the impairment test was that management identified a

need for impairment in CGU Finland and Baltics in the amount of EUR

10 million, which mainly relates to the 2018 acquisition of Sataservice

in Finland which has generated lower returns than initially forecasted.

The impairment was reported in December 2022 as Other operating

expenses in the Consolidated income statement.

Reported values of how Goodwill and other intangible assets have been allocated to the CGU

2022

KEUR Customer contracts Customer relations Goodwill Total

Europe - 1,750 28,973 30,724

Americas - 1,850 9,011 10,861

FBA 2,424 4,002 23,628 30,054

Total 2,424 7,602 61,613 71,639

2021

KEUR Customer contracts Customer relations Goodwill Total

Europe - 2,416 30,298 32,714

Americas - 2,358 8,601 10,959

FBA 3,954 5,066 33,628 42,648

Total 3,954 9,840 72,527 86,321

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

Discount rates

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.

Growth that is used to extrapolate cash flows beyond

forecast periods

Long-term growth rates are a conservative assessment as they

are set to anticipated long-term inflation.

Sensitivity to changes and assumptions

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.

Other impairment tests

In addition to the impairment of Goodwill in CGU Finalnd and

Baltics management has taken the decision to impair Goodwill

and Customer relations in CGU Americas in the amounts of EUR

58 thousand and EUR 29 thousand, respectively, as a result of a

lost contract in Argentina.

6362

QUANT ANNUAL REPORT 2022

NOTES

QUANT ANNUAL REPORT 2022

Note 18 Property, plant and equipment

Group Parent company

KEUR 2022 2021 2022 2021

Opening acquisition cost 6,668 6,641 80 80

Investments 1,708 894 - -

Discontinued operations - -182 - -

Sold/Scrapped -41 -511 - -

Translation differences 161 -176 - -

Closing acquisition cost 8,495 6,668 80 80

Opening accumulated depreciation -5,070 -5,189 -80 -74

Discontinued operations - 171 -

Sold/Scrapped 30 479 - -

Depreciation for the year -709 -686 - -6

Translation differences -149 155 - -

Closing accumulated depreciation -5,898 -5,070 -80 -80

Net carrying amount at year-end 2,597 1,598 - -

Note 19 Leases

Group Parent company

KEUR 2022 2021 2022 2021

Amounts related to leases recognized in the statement of financial position:

Right-of-use assets

Vehicles 1,227 2,143 -

Buildings 667 1,042 370 519

Total 1,893 3,185 370 519

Total right-of-use assets 1,844 3,126 324 472

Lease liabilities

Non-current 841 1,502 203 353

Current 1,148 1,869 178 178

Total liabilities 1,990 3,371 381 530

Amounts related to leases recognized in the income statement

Depreciation charge of right-of-use assets

Vehicles 1,208 1,500 -

Buildings 481 658 148 148

Total 1,689 2,158 148 148

Interest expense (included in finance cost) 229 351 37 48

Expense relating to short-term leases (included in cost of

goods sold and administrative expenses)

504 318 - -

Expenses relating to leases of low value assets that

are not shown above as short-term leases (included in

administrative expenses)

55 54 9 4

Total cash outflow for leases 2,478 2,881 195 201

Additions to the right-of use assets during 2022 amounted to EUR 0.4 (1.6) million. Currency exchange rates impacted the value of right of use assets

by EUR 0.0 (-0.1) million. For maturity analysis of leasing liabilities, see Note 3 Financial risks.

Note 20 Participations in Group companies

KEUR 2022 2021

Acquisition cost 96,285 101,285

Capital contributions -16,040 -5,000

Closing acquisition cost 80,245 96,285

Net carrying amount at year-end 80,245 96,285

Parent company and Group holdings of participations in Group companies

Subsidiary/ID no

2022 2021

Numbers

of shares

% share Carrying

amount

% share Carrying

amount

Direct ownership

Quant US Corp., (5631810) 2,087 100% 2,087

Quant Sweden Holding AB, (556981-3115, Västerås) 50,000 78,158 100% 94,198

Indirect ownership

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%

80,245 96,285

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.

6564

QUANT ANNUAL REPORT 2022

NOTES

QUANT ANNUAL REPORT 2022

Note 21 Financial assets and liabilities by valuation category in the Group

KEUR 2022 2021

Carrying amount Fair Value Carrying amount Fair value

Assets

Non-current receivables 35 35 26 26

Accounts receivable 19,945 19,945 24,498 24,498

Other receivables 1,695 1,695 1,200 1,200

Accrued income 10,196 10,196 4,341 4,341

Liquid funds 14,389 14,389 9,648 9,648

Total assets 46,261 46,261 39,713 39,713

Liabilities

Interest-bearing liabilities 1) 86,327 86,327 144,943 144,943

Other non-current liabilities 841 841 1,502 1,502

Accounts payables 10,303 10,303 8,298 8,298

Other liabilities 2,940 2,940 3,263 3,263

Accrued expenses 25,753 25,753 19,751 19,751

Total liabilities 126,165 126,165 177,756 177,756

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.

Note 22 Deferred tax

Deferred tax assets and tax liabilities

The tax assets and provision for deferred tax relates to the following assets and liabilities:

KEUR 2022 2021

Group Deferred tax

assets

Deferred tax

liability

Net Deferred tax

assets

Deferred tax

liability

Net

Intangible assets - -2,131 -2,131 - -2,922 -2,922

Pension contributions 241 - 241 469 - 469

Other 2,543 -678 1,865 1,273 -521 752

Total 2,784 -2,809 -25 1,742 -3,443 -1,701

Change in deferred tax in temporary differences and loss carryforwards

Group Bal at 1 Jan

2022

Profit/loss for

the year

OCI Reclass to

Discontinued

Translation

differences

Bal at 31 Dec

2022

Intangible assets -2,922 816 0 - -19 -2,125

Pension contributions 469 26 -271 - 17 240

Other 752 1,097 0 - 10 1,860

Total -1,701 1,939 -271 - 9 -25

Group Bal at 1 Jan

2021

Profit/loss for

the year

OCI Reclass to

Discontinued

Translation

differences

Bal at 31 Dec

2021

Intangible assets -5,097 2,185 - - -10 -2,922

Pension contributions 672 29 -252 - 20 469

Other 831 78 - -9 -147 752

Total -3,594 2,291 -252 -9 -138 -1,701

Note 23 Accounts receivable

Accounts receivable maturity analysis

Group

KEUR 2022 2021

Not due 17,066 20,045

Overdue 0 - 30 days 2,661 2,282

Overdue 31 - 60 days 103 1,152

Overdue 61 - 90 days 12 76

Overdue 91 -180 126 54

Overdue > 181 0 890

Total accounts receivable before provision for bad debt 19,967 24,498

Provision for bad debt accounts receivable

Opening balance January 1 - -770

Provisions -22 -

Reversals - 770

Actual losses - -

Closing balance December 31 -22 -

Total Accounts receivable 19,945 24,498

Note 24 Prepaid expenses and accrued income

Group Parent company

KEUR 2022 2021 2022 2021

Prepaid expenses 1,448 1,345 660 421

Accrued income 10,196 4,341 - -

Total prepaid expenses and accrued income 11,644 5,686 660 421

Note 25 Cash and cash equivalents

The following subcomponents are included in cash:

Group Parent company

KEUR 2022 2021 2022 2021

Bank deposits 14,389 9,648 2,546 1,393

Total Cash and cash equivalents 14,389 9,648 2,546 1,393

6766

QUANT ANNUAL REPORT 2022

NOTES

QUANT ANNUAL REPORT 2022

Note 26 Pensions

Group defined benefit plans

Changes in the present value of the obligation for defined benefit plans

KEUR 2022 2021

Obligation for defined benefit plans as of 1 January 2,400 3,436

Paid compensation -186 -178

Cost recognized in profit for the year 316 325

Cost recognized in other comprehensive income -1,386 -1,287

Exchange rate differences 93 104

Obligation for defined benefit plans as of 31 December 1,238 2,400

Provisions for Benefit Pension Plans 2,400 2,400

Provisions for other pensions 40 40

Total Provisions for pensions and similar obligations 2,440 2,440

Overview of defined benefit plans

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

12/31/2022 Pension obligation Plan assets Net

Switzerland 9,079 7,841 1,238

Others - - -

Total pension obligations and plan assets 9,079 7,841 1,238

12/31/2021 Pension obligation Plan assets Net

Switzerland 10,913 8,513 2,400

Others - - -

Total pension obligations and plan assets 10,913 8,513 2,400

The defined benefit plans are exposed to actuarial risks such as life expectancy, interest rate and investment risks.

The plan assets consist of equity instruments: 2022 2021

Currency (CHF) 4% 3%

Bonds 25% 25%

Equity instruments 29% 31%

Real estate 26% 25%

Mortgages 4% 4%

Alternative investments 12% 12%

Total 100% 100%

Actuarial assumptions

The following significant actuarial assumptions have been applied in calculating the obligations: (weighted average values)

2022 2021

Discount rate 2.3% 0.3%

Expected wage increase 2.0% 1.0%

Expected increase in pensions 0.0% 0.0%

Sensitivity analysis

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

2022 2021

Discount rate (- 0,25% change) -3% -4%

Discount rate (+ 0,25% change) 3% 4%

Expected increase in pensions (- 0,25% change) 2% 2%

Expected increase in pensions (+ 0,25% change) -2% -2%

Cost recognized in the income statement as cost of goods sold

KEUR 2022 2021

Costs concerning service for current period -308 -318

Gain in regulation - -

Net interest income / interest expense -8 -7

Net cost recognized in the income statement -316 -325

Cost recognized in other comprehensive income

KEUR 2022 2021

Actuarial gains (-) and losses (+) -2,488 -377

Difference between actual return and return according to the discount rate on plan assets 1,103 -910

Effects of change in asset limitation, excluding amounts reported in net interest income - -

Net reported in other comprehensive income -1,386 -1,287

Group

KEUR 2022 2021

Other provisions 835 515

Total provisions 835 515

Other provisions are comprised mainly of non-current employee-related liabilities.

Note 27 Provisions

Note 28 Interest-bearing liabilities

Group Parent company

KEUR 2022 2021 2022 2021

Liabilities due within one year from the balance sheet date 1,148 10,470 178 8,779

Liabilities due within one to five years from the balance sheet date 92,841 140,429 92,203 139,280

Liabilities due later than five years from the balance sheet date - - - -

Capitalized borrowing costs -5,673 -2,587 -5,673 -2,587

Total interest-bearing liabilities 88,317 148,313 86,708 145,473

Interest-bearing liabilities are comprised of liabilities to credit institutions and leasing liabilities. For information on leasing liabilities, see Note 3

Financial risks.

6968

QUANT ANNUAL REPORT 2022

NOTES

QUANT ANNUAL REPORT 2022

Credit facilities

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, agreed in principle to a conditional agreement

under which Permira Credit was expected to become the new

majority owner of Quant. Nordic Capital was expected to remain

as a minority shareholder. The agreement between Permira

Credit and Nordic Capital was 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, as part of the agreement with Nordic

Capital, provided EUR 10 million of new capital as a cash injection

on the balance sheet. Amounts corresponding to the junior bond

and certain shareholder loans were also capitalized resulting in

the release 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 were 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. On 16 June

2022 the final amendments to became effective, and Permira

Credit became the majority owner of Quant. On 12 December

the merger of Quant AB (publ) and Quibot Bidco AB, where the

latter was absorbed by Quant, was finalized and registered.

The merger completed all obligations under the transaction, for

instance that junior bonds and shareholder loans totaling EUR

59 million were extinguished which meant an implicit contribution

of liabilities in Quant AB recorded in equity. Quibot Bidco AB

was a wholly-owned subsidiary of Quibot Topco AB and as a

consequence of the merger, Quant AB is now a wholly-owned

subsidiary of Quibot TopCo AB.

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 16 June

2022 the amendments requested by the company in the written

procedure initiated on 24 March 2022 went into effect, which,

among other things, extended the maturity date of the senior

bonds to 15 November 2025. 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. On 16 June 2022 the amendments

requested by the company in the written procedure initiated on 24 March

2022 went into effect, which, among other things, caused the delisting

of the junior bonds from the Luxembourg Stock Exchange and were

extinguished, increasing Quant AB’s equity as a result of a merger with

Quibot Bidco AB in December 2022.

Super senior working capital facility

The group has a working capital facility with Nordea Bank AB (publ) of

EUR 10 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 4.25%. 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 16 September 2024. 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.

Note 29 Accrued expenses and deferred income

Group Parent company

KEUR 2022 2021 2022 2021

Accrued interest expenses 895 1,634 1,094 1,788

Accrued restructuring costs 70 134 - -

Accrued personnel expenses 16,413 13,780 898 596

Deferred income 3,299 2,049 - -

Other accrued expenses 5,075 2,154 741 184

Total accrued expenses and deferred income 25,753 19,751 2,733 2,580

Note 30 Pledged assets and contingent liabilities

Quibot Topco 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.

Pledged assets and contingent liabilities

Group Parent company

KEUR 2022 2021 2022 2021

Pledged assets

Bank guarantees 2,831 2,911 2,831 2,911

Shares in subsidiaries 14,176 11,899 80,245 96,285

Total pledged assets 17,007 14,810 83,076 99,196

Contingent liabilities - - - -

Note 31 Transactions with related parties

Related party transactions

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.

Sales within the group

Of the parent company’s total sales, 100% (100%) relate to sales to other companies within the Quant group.

Group Parent company

KEUR 2022 2021 2022 2021

Interest received 86 22 2,700 2,845

Interest paid -13,843 -12,161 -13,720 -12,150

Leasing interest paid -229 -351 -37 -48

Total -13,985 -12,490 -11,057 -9,353

Note 32 Interest received and paid

7170

QUANT ANNUAL REPORT 2022

NOTES

QUANT ANNUAL REPORT 2022

KEUR

Group

Bal at 1 Jan 2022 Cash flow effects Non-cash flow

effects

Foreign exchange

differences

Bal at 31 Dec 2022

Liabilities to credit institutions

144,943 -8,779 -49,892 55 86,327

Lease liabilities

3,371 -1,345 -36 1,990

Total

148,313 -10,123 -49,892 19 88,317

Group

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

Total

149,680 -8,369 7,062 -59 148,313

Note 33 Supplemental information to cash flow finance activities

Reconciliation of items included in financing activities - Group, continuing operations

Other adjustments for non-cash items

Continuing operations

Group Parent company

KEUR 2022 2021 2022 2021

Capitalized interest expense 7,828 6,249 7,828 6,249

Amortized borrowing costs 1,693 836 1,693 836

Pension revaluation direct to equity 1,386 1,287 - -

Capital gain/loss from fixed assets 11 -800 - -

Changes accrued interest -739 61 -2,383 -1,953

Other -249 -24 -254 -21

Total items not included in cash flow 9,929

7,609

6,884

5,112

Note 34 Appropriation of Earnings

KEUR

Non-restricted equity in the Parent company at the disposal of the Annual General Meeting:

Retained earnings 114,110

Loss for the year -24,160

Total 89,950

The Board of Directors and the CEO propose that the amount be appropriated as follows:

Amount carried forward 89,950

Note 35 Business combinations, discontinued operations and assets and liabilities held for

sale

Acquisitions

2022

There were no acquisitions carried out during 2022.

2021

There were no acquisitions carried out during 2021.

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.

INCOME STATEMENT FOR DISCONTINUED OPERATIONS

Group

KEUR 2022 2021

Net sales - 946

Cost of sales - -1,293

Gross profit - -347

General and administrative expenses -243 -684

Selling expenses - -165

Research and development expenses - -

Write-downs intangible assets and PPE - -6,510

Other operating income 704 317

Other operating expenses - -

Operating Loss 461 -7,388

Interest income and similar profit/loss items 1 3

Interest expense and similar profit/loss items - -36

Foreign exchange gains and losses - -

Total financial items 1 -33

Profit/loss before tax 462 -7,422

Taxes 159 63

Loss for the year 621 -7,358

QUANT ANNUAL REPORT 2022

7372

QUANT ANNUAL REPORT 2022

NOTES

Note 36 Events after the reporting period

There were no significants events that took place after the end

of the fiscal year.

Quant AB

556975-5654

Stockholm, April 27, 2023

The Management Report, financial 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.

Bo Elisson

CHAIRMAN OF THE BOARD

Samuel Gross

BOARD MEMBER

Alexander Bell

BOARD MEMBER

Pierre Schöld

BOARD MEMBER

Tomas Rönn

BOARD MEMBER AND CEO

Our audit report has been submitted, April 27, 2023

Öhrlings Pricewaterhouse Coopers AB

NICKLAS KULLBERG

AUTHORIZED PUBLIC ACCOUNTANT

SIGNATURES

ASSETS AND LIABILITIES HELD FOR SALE

Group

KEUR 2022 2021

Financial assets 217 217

Other receivables 1 240

Total assets 218 457

Provisions 219 219

Accounts payable 14 8

Accrued expenses and deferred income 19 108

Other non-interest-bearing liabilities 405 364

Total liabilities 656 698

QUANT ANNUAL REPORT 2022 QUANT ANNUAL REPORT 2022

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 2022 except for the corporate governance

statement on pages 29-30. The annual accounts and consolidated

accounts of the company are included on pages 31-73 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 financial position of parent company and the group as of 31 December

2022 and its financial performance and cash flow 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 financial position of the group as

of 31 December 2022 and their financial performance and cash flow 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 financial 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 fulfilled 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 sufficient and

appropriate to provide a basis for our opinions.

Our audit approach

Audit scope

Key audit matters

Key audit matters of the audit are those matters that, in our professional

judgment, were of most significance 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.

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

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 e.g. 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 differs from worked-

up revenue for the period, accrued revenue or prepaid

income is reported to the extent that the invoiced amount

differs 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 2022.

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 73 084 kEUR.

Goodwill and acquisition-related surplus values correspond

to the difference 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.

• Reviewed the accuracy of the calculation models by

using PwC’s internal specialists in company valuation.

• Evaluated the reasonableness of the discount rate used

• Veriied that identiied write-down needs were reported

correctly in the income statement.

• 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 suf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.

QUANT ANNUAL REPORT 2022 QUANT ANNUAL REPORT 2022

7776

AUDITOR’S REPORT

Other Information than the annual accounts and

consolidated accounts

The Board of Directors and the Managing Director are responsible for

this other information. The other information consists of an expanded

description of the group’s business during 2022 on pages 2-28 and

78-80 in the document “Annual report 2022”. The report is found at the

company’s website.

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 identified 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.

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.

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.

Misstatements can arise from fraud or error and are considered material

if, individually or in the aggregate, they could reasonably be expected to

influence 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 Revisorsinspektionen’s

website: www.revisorsinspektionen.se/revisornsansvar. This description

is part of the auditor´s report.

Report on other legal and regulatory requirements

The auditor’s audit of the administration of the company

and the proposed appropriations of the company’s profit 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 2022 and the proposed

appropriations of the company’s profit or loss.

We recommend to the general meeting of shareholders that the profit

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 financial 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 fulfilled

our ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and

appropriate to provide a basis for our opinions.

Responsibilities of the Board of Director’s and the

Managing Director

The Board of Directors is responsible for the proposal for appropriations

of the company’s profit or loss. At the proposal of a dividend, this includes

an assessment of whether the dividend is justifiable 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 affairs. This includes among other

things continuous assessment of the company’s and the group’s financial

situation and ensuring that the company´s organization is designed so

that the accounting, management of assets and the company’s financial

affairs 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 fulfill 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 profit 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 profit 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 financial year 2022.

Our examination and our opinion relate only to the statutory requirements.

In our opinion, the Esef report 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 fulfilled our ethical

responsibilities in accordance with these requirements.

We believe that the evidence we have obtained is sufficient 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 influence the economic

decisions of users taken on the basis of the Esef report.

The audit firm 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 examination 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 and

consolidated 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

effectiveness of those internal controls. The examination 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 validation that the Esef report has been

prepared in a valid XHTML format 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 consolidated statement of financial performance, financial position,

changes in equity, cash flow and disclosures in the Esef report has

been marked with iXBRL in accordance with what follows from the Esef

regulation.

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 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 sufficient 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.

Öhrlings PricewaterhouseCoopers AB, Torsgatan 21, was appointed

auditor of Quant AB (publ) by the general meeting of the shareholders

on the 28th of April 2022 and has been the company’s auditor since the

5 november 2019.

Stockholm, April 27, 2023

Öhrlings PricewaterhouseCoopers AB

Nicklas Kullberg

Authorized Public Accountant

AUDITOR’S REPORT

QUANT ANNUAL REPORT 2022 QUANT ANNUAL REPORT 2022

7978

ALTERNATIVE PERFORMANCE MEASURES

Quant uses certain alternative performance measures (APMs) not defined in the rules for financial reporting adopted by Quant. APMs, i.e. performance

measures not based on financial statements standards, provide meaningful supplemental information by excluding items that may not be indicative of

the operating result or cash flows of Quant. Alternative performance measures enhance comparability from period to period and are frequently used by

analysts, investors and other parties. These APMs, as defined, 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 affect

Adjusted EBITDA EBITDA excluding items affecting comparability (non-recurring

items) and the effect 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 different size segments

Adjusted EBITDA IFRS 16 EBITDA excluding items affecting comparability (non-recurring

items), but including the effect 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

effects, 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 effects

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 effects

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 affecting

comparability/non-

recurring items

Items affecting comparability are of a one-off, non-recurring,

non-operational, extraordinary, unusual or exceptional nature

(including restructuring expenditures).

Shows the value of items which affect

the comparability of Quant’s result and

proitability between periods

RECONCILIATION OF ALTERNATIVE

PERFORMANCE MEASURES

Jan-Dec

KEUR 2022 2021

Continuing operations

Operating profit (loss) -9,681 -2,778

Depreciation & amortization 6,281 11,921

Non recurring items - 621

Reversal of Write-down tangible assets - -

Adjusted EBITDA IFRS 16 6,688 9,786

Effect from IFRS 16 -2,015 -2,577

Adjusted EBITDA 4,672 7,209

Net sales 179,374 164,435

Adjusted EBITDA margin 2.6% 4.4%

Discontinued operations

Operating profit (loss) 461 -7,388

Depreciation & amortization - 13

Non recurring items - -

Reversal of Write-down intangible assets - 6,510

Reversal of Write-down tangible assets - -

Adjusted EBITDA IFRS 16 461 -865

Effect from IFRS 16 - -

Adjusted EBITDA 461 -865

Net sales - 946

Adjusted EBITDA margin - -91.5%

Group total

Operating profit (loss) -9,220 -10,166

Depreciation & amortization 6,281 11,934

Non recurring items - 621

Reversal of Write-down intangible assets 10,087 6,531

Reversal of Write-down tangible assets - -

Adjusted EBITDA IFRS 16 7,149 8,921

Effect from IFRS 16 -2,015 -2,577

Adjusted EBITDA 5,133 6,344

Net sales 179,374 165,381

Adjusted EBITDA margin 2.9% 3.8%

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 2023)

May 26, 2023

Interim report Q2

(April – June 2023)

August 25, 2023

Interim report Q3

(July – September 2023)

November 24, 2023

Interim report Q4

(October – December 2023)

February 23, 2024