Quant AB

ANNUAL

REPORT

Smart services for a sustainable world

2023

QUANT ANNUAL REPORT 2023 QUANT ANNUAL REPORT 2023

2 3

SWEDEN

MORE THAN

2,700

MEUR

206

HQ in Stockholm,

Sweden

Years of

experience

Number of

Employees

2023 Full Year

Revenue

Sites in

operation

AMERICAS

FINLAND & BALTICS

EUROPE & MIDDLE EAST

OUR REGIONS

2023

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 2023 QUANT ANNUAL REPORT 2023

CEO REVIEW

Reflecting on the year 2023, I am pleased to provide an overview of Quant’s journey amidst a dynamic

market landscape. As stewards of industrial maintenance excellence, our commitment to continued

improvement remained unwavering, guided by a steadfast dedication to our core values.

During the year, Quant delivered a robust financial performance. Our annual net sales surged impressively

by 15.3%, reaching EUR 205.9 million, driven by successful contract mobilizations from the previous

year. Notably, Adjusted EBITDA for the full year stood at EUR 9.2 million, a significant improvement

from the previous year’s EUR 4.7 million, and a testament to our strategic emphasis on profitability and

operational eiciency.

Ensuring safety remains at the forefront of our operations, it is not just a priority but a fundamental aspect

of our commitment to excellence. I am delighted to report a declining trend in our key safety indicator,

Lost Time Incidents (LTI), underscoring our commitment to a culture of safety. Our successful execution

of safety week activities further exemplified our dedication, engaging not only Quant colleagues but

also customers and stakeholders. Encouraged by the positive feedback from the safety week in 2023,

we turned this event into a safety month in 2024.

We observed improved profitability in all regions. While Europe & Middle East

faced declining net sales due to lost contracts, diligent contract management

led to improved profitability. In Americas, revenue surged significantly, driven

by new contracts, resulting in a remarkable turnaround in profitability for the

full year. Region Finland & Baltics presented higher net sales and profitability

attributed to eective contract management and upselling initiatives.

As we embark on the new fiscal year, our vision remains clear: to surpass

a portfolio value of EUR 200 million, excel in contract execution, and

optimize cost structures. These guiding principles will navigate us through

the ever-evolving industrial terrain, fostering sustainable growth and

value creation.

I extend my heartfelt gratitude to every Quant colleague for

their dedication and hard work. Together, we will continue

to overcome challenges, seize opportunities, and reinforce

Quant’s position as a leader in industrial maintenance

services.

With unwavering commitment and strategic focus, we

look forward to the opportunities and challenges that lie

ahead, confident in our ability to create long-term value

for all stakeholders.

CEO REVIEW

TOMAS RÖNN

CEO, Quant AB (publ)

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.

QUANT ANNUAL REPORT 2023 QUANT ANNUAL REPORT 2023

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 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 2023 QUANT ANNUAL REPORT 2023

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

We will develop our offering to prove the value of maintenance. We shall ensure that

agile service offerings are developed through close collaboration between service

and process owners, together with digital development. We shall engage in industries

here Quant has experience and can make a difference.

Digitalization

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

Internal eficiency, connecting with our customers, and expanding partnerships with

other leading companies are the three development areas that we focus on.

Safety and Operational Excellence

We shall have a business model, processes and capabilities that are it for purpose.

We will reine and update our operating model through distributed process ownership

and excellence centers, and develop a model and digital tools to capture delivered

client value in a stringent and eficient way.

We continue to implement our strategy with an increased focus on sales and growing

our portfolio while maintaining our focus on 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

QUANT ANNUAL REPORT 2023 QUANT ANNUAL REPORT 2023

1110

OFFERING

Quant is a leader in the 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 the 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 a 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 the customer. Here, the commercial

models are also always tailored to the speciic customer

situation.

Additionally, Quant can take on smaller scope projects

such as maintenance of non-core processes and

equipment categories, such as utilities and facilities.

Cornerstonesof

Quant Smart Maintenance concept

OFFERING

THE JOURNEY TO A PARTNERSHIP

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

STRATEGIC

MAINTENANCE

DEVELOPMENT &

PLANNING

RELIABILITY

AVAILABILITY

MAINTAINABILITY AND

SAFETY CENTRED

APPROACH

WORLD CLASS

MAINTENANCE

EXECUTION

PLANT

PERFORMANCE

ORGANIZATION –

PEOPLE AND CULTURE

EMBEDDED DIGITAL

SOLUTIONS

SUSTAINABILITY

FOCUSED ASSET LIFE

CYCLE MANAGEMENT

SUPPLY CHAIN & SPARE

PART MANAGEMENT

QUANT ANNUAL REPORT 2023 QUANT ANNUAL REPORT 2023

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

Smart maintenance

for outstanding plant performance

DIGITAL TOOLS SUITE

Quant Smart Maintenance is our way of combining

employee knowledge, leading processes and

methodologies, world-class safety stewardship, and

enabling these with a modern digital platform.

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 digital 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.

In 2023, we have strengthened our collaboration with

IBM. The in-depth collaboration makes it possible to

apply the latest technology and drive the development

of our services with digital solutions, such as

Augmented Reality (AR) and Artiicial Intelligence (AI).

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 2023 QUANT ANNUAL REPORT 2023

1514

In May, we conducted Quant Safety Week

2023. This is an annual, global event within

Quant, aiming at strengthening our safety

culture even further to reach our ultimate

target of zero accidents.

This year’s main theme was risk assessment,

and the slogan was “I care, we care”. Our

employees participated in different safety-

related activities during the entire week, and

the event provided a platform for valuable

learnings and knowledge sharing.

At Quant, safety is our choice and culture,

meaning that operations and safety are

always interlinked and that all of us share

the belief that all injuries are preventable.

Moreover, our customers expect and

demand a strong safety culture. Having

safety as a cornerstone in the development

of our operational processes is crucial!

Quant Safety

Week 2023

Quant‘s team

awarded by Vale

At the end of 2023, one of our teams working at the

Carajás site in Brazil was awarded by our customer Vale

for completing a project not only improving the safety

at site, but also making the production process more

eficient.

The Carajás mine is one of the largest iron ore mines in

the world, and it is run by our customer Vale. Last year,

one of the Quant teams at this site was awarded by Vale

for the completion of a spray system installation.

In the plant’s classiication circuit, there are screens

acting as ilters, separating materials of different sizes.

What passes through the screens are materials of

interest for the production, while the materials iltered

out is returned to be processed again. The Quant

team has installed a mechanic screen washing system,

eliminating the previous need of washing the screens

manually. This has not only improved safety at site, as

the operator’s exposure risk in the washing process

is now eliminated, but also reduced the washing time

from forty to six minutes, signiicantly improving the

eficiency in the production.

We are very proud of the Quant team receiving the

award from Vale. Big congratulations!

SAFETY SAFETY

Safety -

Our choice,

our priority

LTIR & TIR 2023

Safety is not just a priority for us at Quant; it is

fundamental to our corporate identity. Integrating new

individuals into our safety culture, aligning with the

standards of our customers who share our commitment

to operational safety, is a crucial part of this process.

We have updated our onboarding process with

increased focus on developing the safety culture before

employees commence their work. This initiative ensures

that every team member understands and fully adopts

our safety practices from the outset.

This year, we have intensiied our efforts to strengthen

awareness and knowledge in safety. Our safety week

was reinvented with a different approach, reducing

the number of activities to encourage more active

participation and greater awareness. This change

allowed the message and tools to reach a broader

audience, resulting in a more signiicant impact and

overall participation.

We are committed to continuing to strengthen our

safety culture and making it an integral part of every

aspect of our daily work.

Safety is not just an option; it is our choice and our

priority.

QUANT LIFE SAVING RULES

Risk

Assessment

Atmospheric

Testing

Work

Permit

Fall

Protection

Personal

Protective

Equipment

Lock out -

Tag out

Safe

Driving

Moving

Vehicles

Hanging

load

0.78

0.76

0.70

0.72

0.82

0.72

0.71

0.73 0.73

0.69

0.66

0.56

1.34

1.24

1.19

1.16

1.30

1.22

1.16

1.31

1.29

1.22

1.25

1.12

0.20

0.40

0.60

0.80

1.00

1.20

1.40

2023/01 2023/02 2023/03 2023/04 2023/05 2023/06 2023/07 2023/08 2023/09 2023/10 2023/11 2023/12

QUANT ANNUAL REPORT 2023 QUANT ANNUAL REPORT 2023

1716

SUSTAINABILITY SUSTAINABILITY

SUSTAINABLE

QUANT

For more information about Quant’s sustainability

work read the 2023 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 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.

THE ANDINA TEAM WINNING

QUANT AWARDS

Standardized processes for a Sustainable

Future

At Quant, sustainability is a fundamental pillar of our business

philosophy. We have implemented standardized processes

that synchronize operations across the entire company. This

holistic approach ensures coherence and a uniied worklow,

promoting sustainable practices in diverse projects and

regions.

Commitment to Equity Beyond the Workplace

Our dedication to sustainability extends beyond workplace

practices to promote principles of inclusion, diversity, and

gender identity. This year, we have undertaken substantial

initiatives to advance equal conditions across our operations,

addressing key areas such as the recruitment process,

working conditions, and career development. A primary focus

has been placed on fostering the growth of female talent

within our organization, even in the face of operating within

a traditionally male-dominated industry. As a global entity,

we celebrate the richness of various cultures, religions, and

backgrounds, promoting an environment where everyone

feels valued and respected.

Recertiication Excellence

We take pride in the certiications of our operations across

Quant, adhering to the stringent standards of ISO 9001, ISO

14001, and ISO 45001.

This reafirms our commitment to quality, environmental

responsibility, and occupational health and safety.

Minimizing Ecological Footprint

In our pursuit of sustainability, we have initiated environmental

programs aimed at reducing our ecological footprint.

Through responsible choices and mindful practices, we strive

to contribute positively to the well-being of our planet.

Corporate Social Responsibility and

Community Engagement

Our commitment to sustainability extends to corporate social

responsibility, with active engagement in local communities.

We support causes related to social welfare and solidarity,

collaborating with universities, social impact programs and

training, involving our customers.

In February, the runners-up and winners of Quant

Awards 2023 were announced. The Andina team in

Chile won the Sustainability Award, for consistent

and eficient management of the safety on the site,

achieving zero recordable incidents for 17 years.

Site Manager Mario Carvajal highlights the teamwork

behind this achievement, recognizing the contribution

from each member of the site team.

- Every member of the team, whether it is a worker,

technician, supervisor, or administrator, understands

the importance of their role in managing risks and

implementing improvements, he says.

- We are committed to following strict safety

management standards and tools, both from our

client and Quant, to ensure that we maintain a

disciplined approach to safety management. We have

also developed a strong collaborative relationship with

our client, allowing us to work together as a team in

effectively managing safety.

There are several safety related activities in the

underground mine performed daily to ensure a strong

safety culture. As an example, there are start-of-shift

meetings where both direct workers and supervisory

groups participate. During these meetings, the group

analyze safety events that occur at Quant, our client,

or in the industry.

- From these discussions, we learn and commit to

implementing necessary changes, Mario says.

- We also have daily safety analysis meetings between

our group of supervisors and our client. This is an

essential part of our safety management process, to

maintain alignment and focus on safety efforts from

the both of us.

A third example is the ield safety dialogues,

where workers and supervisors evaluate and share

impressions about the risks and interactions, the

status of tools, work complexities, and how to

control all risks detected. These are held before the

start of every work task.

- In conclusion, our dedication to safety is our irst

priority, and we believe that our daily activities are

essential to maintain safe work at our site, Mario

says.

He feels proud about receiving this award together

with his team.

- We are human, and errors can occur even with the

best practices or high safety standards. So in this

context, we feel proud, but always with our feet on

the ground. This is a collective achievement where

each and every one of us counts.

QUANT ANNUAL REPORT 2023 QUANT ANNUAL REPORT 2023

1918

PEOPLE & CULTURE PEOPLE & CULTURE

QUANT AWARDS 2023

Quant is an entrepreneurial company. 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

one belongs to. Through Quant Awards, we celebrate

individuals and teams that personify the Quant values

and entrepreneurial spirit.

Here are the winners and runners-up of Quant

Awards 2023. Big congratulations to all of you!

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 our passionate and proud maintenance

professionals to deliver superior customer service.

One of the major milestones in Quant Academy in 2023

was to implement a Learning Management System. The

LMS supports us to deliver focused and standardized

training content for our employees to study by themselves

when most suitable for them. Since the roll-out of the

system, we have introduced several e-learning courses

and translated the most important ones to our main

local languages. A special focus has been put on safety

QUANT ACADEMY

- To learn and share knowledge

Following a two-year apprenticeship, Felix Nguyen

was hired as a junior staff member of our team in

Baden, Switzerland. He gained a lot of experience

and knowledge during the apprenticeship and is now

looking forward to continuing his learning path.

– I get good support from my senior colleagues and

there is a good potential to develop in my professional

role, he says.

Last year, we welcomed Felix Nguyen as a new

member of our site team in Baden, Switzerland. Felix

had been doing an apprenticeship as a polymechanic,

which turned into an employment.

During his apprenticeship, Felix got support from

senior staff members to gain expertise. He worked

with maintaining and adjusting ixtures and was also

responsible for some smaller independent projects

regarding minor repairs and similar.

– I have learned a lot during this time. For example, I

have gained skills, knowledge, and competence, and

developed a structural approach to execute dedicated

tasks according to the job requirements, he says.

– Another aspect is the way of working – to think

before you act and to execute tasks in a correct and

safe manner.

Good potential to grow your career

Although the apprenticeship has now turned into an

employment, the learning path continues. Felix works

with senior engineers on a daily basis to learn and

develop even more, while his area of responsibility is

growing.

– I have started to take over more responsibility for

certain maintenance and repair tasks, and I can also

work more independently to develop myself.

He thinks Quant is a good place to work, highlighting

the teamwork and support from colleagues and

supervisors. The work tasks are varied, and there is a

good potential to grow in his professional role.

– I would recommend working at Quant. The team

spirit is good, and the work is lexible and varied which

is fun, he says.

– I think an open-minded person with a multicultural

mindset would enjoy working here. If you want to

take responsibility in your professional role and are

a service-minded person, Quant is a good place to

work.

From apprentice

to employee

Felix Nguyen

Category: Sustainability

Winner: The Andina Team, Chile

Runner up: Christian Suarez, CAP UPP site in Chile

Category: Collegial Support

Winner: Jucimar Alves de Carvalho, Vale Vittoria

site in Brazil

Runner up: Daniel Travis, Controller in Finland

Category: Customer Service

Winner: Jukka Kaunetsalo, Mölnlycke site in Finland

Runner up: Sebastian Pérez, Andina site in Chile

Runner up: Tommi Turunen, Suolahti site in Finland

Category: Innovation

Winner: Gulfex1 Extrusion maintenance &

Automation team, United Arab Emirates

Runner up: Jaime Villalobos,

Andina site in Chile

Category: Sales

Winner: Quant Gulf,

United Arab Emirates

courses, and for example our Quant Life Saving

Rules training course has been completed by over

1,700 employes with over 2,400 study hours since

its launch in 2021.

In 2023, one of our key focus areas related to

people development was leadership. A speciic

course was created, and then adopted and

rolled out in all our regions. This was a face-to-

face training course gathering our leaders from

different countries to discuss, share, learn, and

practice their skills.

Another major milestone within Quant Academy

has been to further develop our Smart Maintenance

Awareness training irst launched in 2022. The

global process owners took the initiative to review

some of our core execution processes and the

training packages around them. The updated

program was launched in October 2023 in Finland

with participants from all our regions.

QUANT ANNUAL REPORT 2023 QUANT ANNUAL REPORT 2023

2120

AMERICAS

SEGMENTS

QUANT ANNUAL REPORT 2023

SEGMENTS

The year 2023 has proven to be a challenging one, marked

by global economic uncertainties, inlation, catastrophies

such as El Niño and loodings. Financially, we ind ourselves

trailing our plan, having faced the loss of signiicant

contracts in Brazil, Chile, and Peru. The inability to make up

for this with new business ventures has added complexity

to our inancial landscape.

Safety has been another area where our performance did

not meet our expectations of zero accidents, nevertheless

we got good performance in all the countries of the region

with room for improvement in Chile. Acknowledging this,

we are actively working to empower our workforce in

matters of safety and health care. We are fostering a culture

that encourages employees to report risky situations and

promoting thorough investigations into the root causes of

incidents. This proactive approach is crucial in creating a

safer work environment.

Diversity and inclusion remain at the forefront of our

sustainability goals. We are determined in our commitment

to promoting a diverse workforce, believing that it

contributes to a more equitable and inclusive workplace.

By hiring individuals with varied backgrounds and

experiences, we aim to create an environment where

everyone feels valued and has equal opportunities for

growth.

Beyond our organizational boundaries, we continue to make

a positive impact in the communities where we operate.

As an example, we collaborated with our customer Vale,

we participated in social programs in Brazil, contributing to

community development and well-being. Additionally, our

Female Training Program in Andina has been instrumental

in empowering women in the workplace, among other

initiatives.

In the realm of health awareness, we organized a campaign

to educate our colleagues and customers on breast cancer

and prostate cancer by doing different activities in all the

sites of the region, through the Pink October and Blue

November campaigns. One of the most relevant activities

was online and in-person conferences.

To promote new technologies and to work with the

communities and the academia, we participated in a

workshop on Artiicial Intelligence at Los Andes, conducted

in collaboration with Codelco and Aconcagua University,

which relects our dedication to advancing knowledge and

innovation.

As relected in the challenges faced and lessons learned

in 2023, we remain optimistic about the transformative

opportunities that lie ahead, with a better safety culture,

strong pipeline and a lean structure that will lead us to be

successful and return to growth in 2024.

KEUR 2023 2022

Net sales 79,781 51,437

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

Adjusted EBITDA 2,280 -1,714

Adjusted EBITDA % 2.9% -3.3%

Net sales 2023 increased to EUR 80.1 million, from EUR

51.4 million prior year due to new contracts and higher

revenue from projects and upselling in existing contracts.

Adjusted EBITDA 2023 was EUR 2.6 million compared to

EUR -1.7 million prior year. This was due to new contracts

mobilizing at the end of 2022 and beginning of 2023 as well

as improved profitability in existing contracts offset by lost

contracts. Cost of EUR 2.9 million related to one customer’s

early termination as well as restructuring cost is classified

as non-recurring items in Adjusted EBITDA.

AMERICAS

In July, our team in Mexico exceeded three years without

Lost Time Incidents (LTI). Two of the keys behind this

success are the strong safety culture and the close

cooperation with our customer.

Another important factor is risk assessments, which has

been a focus area not only within the Quant team, but also in

the work done together with the customer. Combining the

Quant model with the customer’s model has contributed to

building a high safety awareness.

The partnership stretches back several years. During this

time, we have implemented our proven procedures and

processes, creating a solid foundation for improving and

developing the area of maintenance. While industrial

maintenance is our core business, we also take into account

other areas that may have an impact on the results. This way

of working, offering a wide range of maintenance-related

services, has been highly appreciated by our customer and

we are looking forward to continuing to strengthen and

develop our partnership.

Three years without Lost Time Incidents in Mexico

NET SALES EBITDA & EBITDA MARGIN

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

2022 2023

KEUR

Net sales

-5.0%

-2.5%

0.0%

2.5%

5.0%

-2,000

-1,000

1,000

2,000

2022 2023

KEUR

Adjusted EBITDA EBITDA Margin (%)

QUANT ANNUAL REPORT 2023 QUANT ANNUAL REPORT 2023

2322

SEGMENTS

QUANT ANNUAL REPORT 2023

EUROPE &

MIDDLE EAST

In region Europe & Middle East, we employ around 500

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.

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 sites in the Region Europe & Middle East have had

several thousand days without incidents. While several sites

had zero incidents, we still had 10 recordable incidents in

2023. As a company and a region we are aiming to reach zero

incidents bringing all our employees home without injuries.

The turnover for 2023 decreased compared to last year

mainly due to lost contracts, but also as a result of reduced

scope in certain contracts where the business climate has

impacted our customers with lower production volumes.

The loss in revenue was partially offset by new contracts and

increased upsell with customers experiencing all time high

production volumes. The region delivered good results when

it comes to EBITDA and cash low as all remaining contracts

performed well.

We won three new contracts in the year thanks to great

existing customer references. Expanding portfolio in existing

industry segments and diversifying portfolio in new business

areas aligning us with sustainable and innovative industry

trends. The three new contracts were offset by the loss of

two existing contracts causing a decrease in portfolio value

for the region during the year.

Demonstrating the trust and satisfaction our clients have in

our services, we successfully renewed six major contracts

for an extended period of three to ive years. These renewals

are a testament to our enduring partnerships and consistent

delivery of customer value. Renewing a contract is evidence

that our services bring value for our customers and the

Quant partnership concept is a successful solution.

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. We broadened our service offerings with the

successful launch of our Reliability Assets Management

Services (RAMS) vertical. This new venture caters to non-

Total Maintenance Partnership projects and short-term

engagements, showcasing our lexibility and commitment

to meeting diverse client needs.

SEGMENTS

EUROPE & MIDDLE EAST

KEUR 2023 2022

Net sales 62,058 69,060

Operating profit (loss) 4,281 3,944

Adjusted EBITDA 4,418 4,067

Adjusted EBITDA % 7.1% 5.9%

Net sales 2023 decreased to EUR 62.1 million, from EUR 69.1

million last year due to lost contracts, partially offset by new

contracts and increased upselling in existing contracts.

Adjusted EBITDA 2023 was EUR 4.4 million, compared to

prior year at EUR 4.1 million, driven by higher gross profit

due to higher profitability in existing contracts as well as

lower selling, general and administrative expenses partly

offset by lost contracts.

Last year, we started a project at one of our sites in Sweden where

the customer’s key machines have been connected to quantEffect.

By using this cloud-based solution for automatic measurement of

Overall Equipment Effectiveness (OEE), our customer easily gets

an overview of the production.

At this site, quantEffect has been used for another key machine in

the same department since 2018 and it is also used for machines

in another department. Now, yet another piece of equipment has

been connected to the system. Through sensors collecting the

requested data, the customer can monitor the machines in real-

time.

– It helps the customer to easily get a clear overview of the

productivity of their machines, how often they are running and

how much time they lose due to various reasons, says Andreas

Ekstrand Larsson, Operational Excellence Engineer at Quant.

Using a screen installed on the machines, the production staff can

easily monitor the productivity of the machines and manage any

outages. In addition to the benefits that quantEffect brings to the

customer, the system is also helpful for Quant’s maintenance staff.

Using the data collected via the system, Quant can implement

measures to increase the technical availability of each machine.

– When the system is set up, we define which errors are counted as

technical errors. We can then measure how many and what type

of technical errors a machine has and implement measures to

prevent problems and increase the technical availability, Andreas

says.

Digitalization project in Sweden

NET SALES EBITDA & EBITDA MARGIN

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2022 2023

KEUR

Net sales

10%

2,000

4,000

2022 2023

KEUR

Adjusted EBITDA EBITDA Margin (%)

QUANT ANNUAL REPORT 2023 QUANT ANNUAL REPORT 2023

2524

FINLAND & BALTICS

SEGMENTS

QUANT ANNUAL REPORT 2022

SEGMENTS

KEUR 2023 2022

Net sales 63,800 58,876

Operating profit (loss) 3,565 2,531

Adjusted EBITDA 3,759 2,820

Adjusted EBITDA % 5.9% 4.8%

NET SALES EBITDA & EBITDA MARGIN

Net sales 2023 increased to EUR 63.8 million, from EUR

58.9 million driven by annual contract inflation clauses

which went into effect early in the year and higher upsell in

existing contracts, partly dampened by lost contracts.

Adjusted EBITDA 2023 was EUR 3.8 million, up from EUR 2.8

million, due to the above-mentioned contract price inflation

clauses and higher upsell in existing contracts, partly offset

by higher general and administrative expenses.

FINLAND & BALTICS

To better meet the industry demands, Quant Finland

has developed its service offering by establishing a new

business unit - Service Center. Through Service Center,

Quant offers flexible industrial maintenance expertise,

project and engineering services, and resourcing to

support the core maintenance, whenever and wherever

our customers need it.

Whether the core maintenance is offered by a customer

or a Quant team on site, the Service Center concept suits

both. The core services can be expanded by a wide range

of industry repair and maintenance services, inspection

services, project and engineering services, predictive

maintenance, and condition monitoring.

- This is a unique concept, combining the expertise of

our centralized project and engineering teams with the

expertise of local Service Center units. This development of

our offering shows that Quant is more than just an ordinary

maintenance company. Our flexible Service Center model

makes a wide range of expertise and specialists available to

current and future needs, says Juho Jääskeläinen, Service

Center Director.

Quant Service Center – a new concept

In 2023, the market conditions for Quant in Finland and Estonia

became more turbulent as many customers were forced to

reduce production and start cost savings activities. Also, the

war in Ukraine was causing uncertainty and inlation was still

above average. Further, the employee market continued to be

very tight for positions related to electriication and automation

competences, as well as locations outside the large settlements.

Despite challenging external factors, the year was successful on

many fronts. Investment in additional resources and consistent

good work in preventative safety measures started to pay off, as

we saw decline in Lost Time Incident (LTI) rate. We are on the right

track, but still far from our ultimate target of zero incidents.

General pace of life increases all the time, and same applies for

work life with customers continuously asking for eficiency gains.

This puts a lot of pressure on us, and although improving at Quant,

we are still suffering from too high workload and stress as latest

engagement survey reveals. On the positive side, vast majority

of people feel respected and the overall employee satisfaction

and retention rate improved for the fourth consecutive year.

The main driver for this is consistent work in terms of leadership

development and having an engaged management and

supervisor workforce in place.

2023 was challenging for our customers, in particular in businesses

related to the construction industry. Consequently, we had to

adjust our operations, reorganize, and unfortunately lay off some

personnel in the end of the year. Despite successful shutdown

management and working hard on reducing backlogs, we saw

a decline in customer satisfaction. Customer expectations have

risen and today they expect us to actively provide suggestions and

to be proactive in helping customers develop their core business.

Here we need to respond. On the positive side, our availability and

ease of contact are largely appreciated by the customers.

The Service Center business development has picked some pace

with a new workshop in Pori opened and Oulu operations started,

offering development well on its way, and centralised project

and engineering team formed. The organization has grown with

more than 35 persons already and recruitments will continue,

new offering soon be launched, and opening of additional new

locations is in the planning phase. Naturally all this has come

with an upfront investment cost, but it has already helped us in

improved cross collaboration and effective use of capabilities

across sites. This is a great platform to build on for the future.

The maintenance market continues to change, and we need to

adjust our offering and operations towards more lexible and

data driven models. Sales is focused on inetuning of our value

proposition, numerous feasibility studies, and healthy pipeline

development. We did not add any large new accounts to our

portfolio but increased our portfolio value as the result of contract

renewals, scope additions, and upselling to existing customers.

Considering market circumstances, we are very pleased with

the growth and our improved proitability – it is a remarkable

achievement by the entire Finland & Baltics organization.

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2022 2023

KEUR

Net sales

1,000

2,000

3,000

4,000

2022 2023

KEUR

Adjusted EBITDA EBITDA Margin (%)

QUANT ANNUAL REPORT 2023 QUANT ANNUAL REPORT 2023

2726

CONTRACT PORTFOLIO

On 31 December 2023, Quant had 71 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 49.1 (52.6)

million are scheduled for renewal during 2024.

During 2023 four contracts were won, with a combined

annualized net sales of EUR 4.0 million. Seventeen contracts

were renewed with a reduced scope corresponding to

annualized nets sales of EUR -0.4 million. Eight contracts

were lost with annualized net sales of EUR -44.2 million.

The combined effect of these changes, including scope

changes in existing contracts of EUR 3.5 million and

exchange rate effects of EUR -4.4 million, amount to a

decrease in the contract portfolio annualized net sales of

EUR -41.5 million to end of period annualized run rate of

EUR 168.2 million, compared to EUR 209.7 million at the end

of 2022.

2022

Contract

Portfolio

New

contracts

Renewed

Contracts

Change

in running

contracts

Lost

Contracts

FX 2023

Contract

Portfolio

209.7

+3.5

168.2

+4.0

-44.2

-0.4

-4.4

MEUR

EXECUTIVE MANAGEMENT TEAM

Madelene Kärvin

CFO

Nationality: Swedish

Location: Sweden

Qualifications/Education:

Wide experience in Finance &

Management, across diverse

sectors like industrial processes,

pharmaceuticals, med-tech devices,

and retail. Most recently served as

VP & CFO/CIO at IPCO, a global

company specializing in sustainable

large-scale production.

Maja Robertsson

CHIEF DIGITAL OFFICER

Nationality: Swedishv

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

Patricio Ibarra

Gomez

REGION MANAGER

AMERICAS

Nationality: Chilean

Location: Chile

Qualifications/Education:

Industrial Engineer, has more

than 18 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 2023 QUANT ANNUAL REPORT 2023

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

Tomas Rönn

SWEDEN

Board member

since 2022,

CEO

QUANT ANNUAL REPORT 2023 QUANT ANNUAL REPORT 2023

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 adapted to suit the customers’ production facilities and includes

a combination of maintenance processes, maintenance expertise, safety

measures and a digital way of working. This comprehensive solution

leads to increased productivity through a more efficient cost structure for

maintenance, higher security and increased 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. 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 205.6 (179.4) million. The increase was due

to new contracts and increased upselling in certain existing contracts. The

increase was partially offset by lost contracts. Organic growth was 15.2%.

Gross profit for the year was EUR 22.5 million, an increase from EUR

20.0 million last year, mainly driven by new contracts in Region Americas,

improved profitability in existing contracts and inflation adjustments in

contracts in Region Finland & Baltics. This was partially offset by lost

contracts in Regions Americas and Europe & Middle East as well as

changes in currency fluctuations, which were EUR -0.3 million compared

to EUR 0.5 million last year.

Operating loss for year was EUR 1.6 million, compared to a loss of

EUR -9.7 million prior year. This increase was driven by write-down of

goodwill in Region Finland & Baltics of EUR 10 million last year as well as

improved profitability in existing contracts.

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

was EUR 8.9 million, compared to EUR 4.7 million prior year mainly due

to higher gross profit and offset by higher general, administrative and

selling expenses. In constant currency the adjusted EBITDA was EUR

8.4 (4.6) million. Adjusted EBITDA including the impact from IFRS 16 was

EUR 10.2 (6.7) million.

Financial items amounted to EUR -11.0 (-13.2) million. The improvement

was due to reduced interest expenses compared to the previous year. In

2022, interest-bearing liabilities were reduced significantly as an effect of

the change in ownership structure.

Net loss for the year amounted to EUR -8.2 million compared to a loss of

EUR -21.9 million prior year. The improvement was primarily due to EUR

10 million write-down of goodwill which burdened last year’s result and

lower interest expenses in 2023 compared to the previous year.

Cash flow from operating activities in 2023 amounted to EUR 1.5 (7.7)

million. Change in working capital was EUR 3.3 (9.8) million mostly due

to an increase in operational receivables.

Financial position

Interest-bearing liabilities after deduction of financing costs, and

excluding lease liabilities, amounted to EUR 87.1 (86.3) million. Net debt

excluding the impact of IFRS 16 implementation amounted to EUR 76.1

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

IFRS 16) amounted to EUR 77.5 (73.9) million. With EUR 13.0 (14,4)

million in cash at the end of 2023 the Group had a good liquidity position.

Discontinued operations

The Adjusted EBITDA for discontinued operations 2023 was EUR -0.3

(0.5) million and net profit was EUR -0.9 (0.6) million.

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 26, 2024

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 2023 2022 2021 2020 2019

Net sales 205.6 179.4 165.4 171.2 204.7

Operating profit/loss 1.4 -9.2 -10.2 -4.6 -18.4

Profit/loss for the year -9.1 -21.3 -22.9 -18.4 -24.5

Cash flow from

operating activities

1.1 8.1 -2.6 7.7 -1.9

FTE 3,002 2,637 2,373 2,357 2,562

MANAGEMENT REPORT

QUANT ANNUAL REPORT 2023 QUANT ANNUAL REPORT 2023

3332

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 includes advanced technology when delivering

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. In addition

to this, the increased development within and towards the connection

and interconnection of different parts of production and processes means

that the internet of things (IoT) takes a greater role and expands the work

area for Quant’s IT infrastructure. Quant’s digital unit constantly works to

proactively eliminate these risks and, as one part of this, performs regular

end-user trainings to increase general awareness, as well as works 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,

2023, 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 2023 is reported separately from this

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

homepage at www. quantservice.com/investors.

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.

Significant events during the fiscal year and after the end

of the financial year

On 28 April 2023 it was announced that Quant and Alcoa in Norway

will conclude their successful 3-year partnership. Alcoa will execute

maintenance operations internally from 1 December 2023.

On 29 May 2023 it was announced that Quant Service Peru S.A.C and

Pesquera Exalmar S.A.A. have mutually agreed to end the maintenance

service contract as of 31 May 2023 due to extreme weather conditions

affecting the entire fishing industry. Quant will reduce its contract portfolio

value with approximately EUR 10.9 million as a result of the terminated

contract.

On 22 September 2023 it was announced that Arauco, a global

manufacturer of forest products, has announced the decision to

indefinitely suspend cellulose production at the Licancél mill in Chile.

This move is a response to extreme weather fluctuations and natural

disasters. As a consequence of this suspension, a portion pertaining to

the Licancél mill of Quant’s ten-year maintenance partnership agreement,

which was initially signed in July 2022, was canceled. Quant’s work on

the Constitutión mill remains unaffected and continues operations as

planned. The impact of this closure will be a EUR 10.9 million decrease

in Quant’s contract portfolio.

On 18 December 2023 it was announced that Hitachi Energy and Quant

have agreed to renew partnership agreements which are expected to

generate an average annual revenue of SEK 130 million (EUR 11.5

million) until 2026 with an option for an extension for a further two years.

This renewal will not affect the value of Quant’s contract portfolio. As part

of the contract renewal, Hitachi Energy and Quant have agreed on a

long-term strategic development plan for how Quant will actively support

Hitachi Energy through its growth journey in the forthcoming years.

Important events after the end of the fiscal year

On February 9, 2024, it was announced that Metsä Wood, part of the

Metsä Group, has informed Quant Finland and Quant Estonia of its

intention to make a strategic decision to integrate the maintenance

functions internally, leading to the termination of the maintenance

service agreements with Quant. On 24 April, 2024, Metsä Wood signed

Business Purchase Agreements with Quant Finland and Quant Estonia,

specifying the handover date of 1 October, 2024. In Q2 of 2024, Quant’s

portfolio value will decrease by EUR 25 million as a result of this contract

termination.

Covid impact and risk for Quant

By 2023, the effects of the global Covid-19 pandemic had largely

subsided and the related risks were significantly decreased. Employee

sick leave and other effects returned to normal levels.

Important conditions

The group has operations in 12 countries with 10 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, behavorial changes after

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 and

local providers of maintenance services and is also facing the risk of its

customers make strategic decisions 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. 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-

MANAGEMENT REPORTMANAGEMENT REPORT

QUANT ANNUAL REPORT 2023 QUANT ANNUAL REPORT 2023

3534

FINANCIAL STATEMENTS

KEUR Note 2023 2022

Continuing operations

Net sales 4 205,638 179,374

Cost of sales -183,132 -159,391

Gross profit 22,506 19,983

General and administrative expenses -18,475 -16,536

Selling expenses -2,420 -2,870

Research and development expenses -4 -297

Other operating income 64 71

Other operating expenses -24 -10,032

Operating Loss 6, 7, 8, 20 1,647 -9,681

Profit/Loss from financial items

Interest income and similar profit/loss items 9 116 86

Interest expense and similar profit/loss items 10 -10,507 -14,949

Foreign exchange gains and losses 9, 10 -648 1,626

Total financial items -11,039 -13,236

Profit/loss after financial items -9,392 -22,917

Taxes 12 1,172 1,033

Loss for the year, continuing operations -8,220 -21,884

Net profit (loss), discontinued operations 36 -874 621

Net profit (loss), Group total -9,095 -21,263

Basic earnings per share*, EUR 13

Continuing operations -1.64 -7.44

Discontinued operations -0.17 0.21

Group total -1.82 -7.23

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 2023 2022

Loss for the year -9,095 -21,263

Other comprehensive income

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

Translation differences pertaining to foreign operations 243 -2,424

Items that will not be reclassified to profit/loss

Revaluation of defined benefit plans

-103

1,386

Tax pertaining to items that could not be reclassified to profit/loss

-271

-83 1,114

Total other comprehensive income 161 -1,310

Total comprehensive income -8,934 -22,573

Total comprehensive income continuing operations -8,060 -23,194

Total comprehensive income discontinued operations -874 621

Total comprehensive income -8,934 -22,573

Attributable to:

Shareholders of the parent company -8,934 -22,573

Non-controlling interest - -

Consolidated Statement of Financial Position

KEUR Note Dec 31 2023 Dec 31 2022

ASSETS

Non-current Assets

Intangible assets

Goodwill 14,18 61,154 61,613

Other intangible assets 15, 16, 17,18 9,756 11,472

Total Intangible assets 70,910 73,084

Property, plant and equipment

Property, plant and equipment 19 2,322 2,597

Right of use assets 20 1,379 1,893

Total property, plant and equipment 3,702 4,490

Deferred tax asset 23 3,407 2,784

Other non-current receivables 46 35

Total non-current assets 78,066 80,394

Current Assets

Inventories

Raw materials and consumables 894 940

Products in progress 733 693

Total inventories 1,627 1,632

Current receivables

Accounts receivable - trade 24 23,511 19,945

Current tax assets 803 829

Other receivables 1,960 1,695

Prepaid expenses and accrued income 25 14,332 11,644

Total current receivables 40,606 34,113

Cash and bank 26 13,004 14,389

Assets held for sale 36 45 218

Total current assets 55,281 50,352

TOTAL ASSETS 133,346 130,746

FINANCIAL STATEMENTS

QUANT ANNUAL REPORT 2023 QUANT ANNUAL REPORT 2023

3736

FINANCIAL STATEMENTS

Consolidated Statement of Financial Position, continued

KEUR Note Dec 31 2023 Dec 31 2022

EQUITY AND LIABILITIES

Equity

Share capital 528 528

Other added capital 104,025 104,025

Reserves -2,794 -3,037

Loss brought forward, incl. net loss for the year -119,342 -110,164

Total Equity -17,583 -8,649

Non-current liabilities

Liabilities to credit institutions 87,112 86,327

Provisions for pensions and similar obligations 28 1,574 1,294

Provisions for taxes 23 1,572 2,809

Leasing liabilities 703 841

Total non-current liabilities 90,962 91,272

Current liabilities

Liabilities to credit institutions 3, 29 2,000 –

Accounts payable - trade 12,368 10,303

Leasing liabilities 20 717 1,148

Current tax liability 1,115 879

Other provisions 28 1,235 835

Other current liabilities 10,483 8,548

Accrued expenses and deferred income 30 31,119 25,753

Liabilities related to assets held for sale 36 931 656

Total current liabilities 59,968 48,123

TOTAL EQUITY AND LIABILITIES 133,346 130,746

KEUR Share capital Other Reserves Retained Total Equity

Opening balance 2022-01-01 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 -110,164 -8,649

Profit/loss for the year - - - -9,095 -9,095

Other comprehensive income/loss - - 243 -83 161

Total comprehensive income/loss for the year - - 243 -9,178 -8,934

Closing balance 2023-12-31 528 104,025 -2,794 -119,342 -17,583

Statement of Changes In Consolidated Equity

FINANCIAL STATEMENTS

Statement of Consolidated Cash Flows

KEUR Note 2023 2022

Continuing operations

Operating activities

Loss after financial items -9,392 -22,917

Adjustments for non-cash items

Depreciation and amortization 4,620 14,679

Depreciation and amortization, right of use assets 1,031 1,689

Change in provisions 608 -952

Unrealized exchange rate differences 993 -4,104

Other non-cash items 34 985 9,929

Total adjustments not included in cash flow 8,237 21,241

Income tax paid -613 -439

Cash flow from operating activities before changes in working capital -1,768 -2,114

Changes in working capital

Increase (-) / Reduction (+) of inventories -2 -293

Increase (-) / Reduction (+) of current receivables -7,845 -1,704

Increase (+) / Reduction (-) of current liabilities 11,156 11,809

Cash flow from changes in working capital 3,309 9,812

Cash flow from operating activities 1,541 7,698

Investing activities

Acquisition/divestment in subsidiaries 36 -10 -

Investments in intangible assets 17 -2,143 -1,413

Investments in tangible assets 19 -925 -1,708

Sales of tangible assets 19 155 -

Investments in financial fixed assets 64 -8

Cash flow from investing activities -2,859 -3,129

Financing activities

Capital injection - 9,525

New shares issued 13 - 475

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

Repayment of loans 34 - -4,000

New loans taken 34 2,000 -

Amortization lease liabilities 34 -1,084 -1,777

Cash flow from financing activities 916 -555

Cash flow for the year, continuing operations -403 4,013

Discontinued operations

Cash flow for the year, discontinued operations 36 -296 818

Group total

Cash flow for the year, Group total -698 4,831

Cash and cash equivalents at the beginning of the year 26 14,389 9,648

Exchange rate differences in cash and cash equivalents -687 -89

Cash and cash equivalents at the end of the year 26 13,004 14,389

QUANT ANNUAL REPORT 2023 QUANT ANNUAL REPORT 2023

3938

FINANCIAL STATEMENTS

Parent Company Income Statement

KEUR Note 2023 2022

Net sales 12,499 9,932

Cost of sales -3,475 -2,497

Gross profit 9,024 7,435

General and administrative expenses -4,913 -4,272

Selling expenses Research and development expenses -289 -403

Research and development expenses - -302

Other operating expenses 6, 7, 8, 20 -112 231

Operating Loss 3,710 2,688

Profit/Loss from financial items

Interest income and similar profit/loss items 9 2,306 2,700

Interest expense and similar profit/loss items 10 -9,235 -13,018

Other financial items 9, 10 -3,992 -17,295

Foreign exchange gains and losses 9, 10 -1,114 993

Total financial items -12,034 -26,619

Appropriations 11 -259 -

Profit/loss before tax -8,584 -23,931

Taxes 12 -139 -229

Loss for the year -8,723 -24,160

Parent Company Statement of Comprehensive Income

KEUR Note 2023 2022

Net profit/loss for the year -8,723 -24,160

Total comprehensive income -8,723 -24,160

FINANCIAL STATEMENTS

Parent Company Statement of Financial Position

KEUR Note Dec 31 2023 Dec 31 2022

ASSETS

Non-current assets

Intangible assets

Other intangible assets 17 3,552 1,408

Total intangible assets 3,552 1,408

Property, plant and equipment

Right of use assets 20 222 370

Total property, plant and equipment 222 370

Financial assets

Participations in group companies 21 80,245 80,245

Deferred tax asset 23 241 225

Total financial assets 80,487 80,470

Total non-current assets 84,260 82,248

Current Assets

Current receivables

Receivables from group companies 104,982 106,855

Other receivables 302 309

Prepaid expenses and accrued income 25 830 664

Total current receivables 106,114 107,828

Cash and bank 26 1,097 2,546

Total current assets 107,211 110,376

TOTAL ASSETS 191,472 192,624

QUANT ANNUAL REPORT 2023 QUANT ANNUAL REPORT 2023

4140

KEUR Note Dec 31 2023 Dec 31 2022

EQUITY AND LIABILITIES

Equity

Restricted equity

Share capital 528 528

Reserve for development expenditures 3,316 1,408

Total Restricted equity 3,844 1,936

Non-restricted equity

Profit or loss brought forward 79,016 45,430

Merger result - 59,155

Transfer to reserve for development expenditures -1,907 -1,408

Net profit/loss for the year -8,723 -24,160

Share premium reserve 9,525 9,525

Total non-restricted equity 77,911 88,541

Total Equity 81,755 90,478

Untaxes reserves 539 -

Non-current liabilities

Liabilities to credit institutions 3, 29 87,112 86,327

Leasing liabilities 20 42 203

Total non-current liabilities 87,155 86,531

Current liabilities

Liabilities to credit institutions 3, 29 2,000 -

Accounts payable - trade 1,365 844

Liabilities to group companies 15,341 11,306

Leasing liabilities 20 178 178

Other current liabilities 764 555

Accrued expenses and deferred income 30 2,376 2,733

Total current liabilities 22,024 15,616

TOTAL EQUITY AND LIABILITIES 191,472 192,624

KEUR Share Capital Other

contributed

equity

Reserves Retained

earnings

Total Equity

Opening balance 2022-01-01 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

Total comprehensive income for the period -8,723 -8,723

Transfer from non-restricted to restricted equity,

reserve for development expenditures

1,907 -1,907 -

Closing balance 2023-12-31 528 9,525 3,315 68,386 81,755

Parent Company Statement of Changes in Equity

FINANCIAL STATEMENTS

Parent Company Statement of Cash Flows

KEUR Note 2023 2022

Continuing operations

Operating activities

Loss after financial items -8,045 -23,931

Adjustments for non-cash items

Depreciation and amortization - -

Depreciation and amortization, right of use assets 148 148

Write-down shares in subsidiaries - 16,040

Unrealized exchange rate differences 1,234 -1,272

Change in provisions - -

Other non-cash items

275 6,884

Total adjustments not included in cash flow 1,657 21,800

Income tax paid -24 -191

Cash flow from operating activities before changes in working capital -6,412 -2,322

Changes in working capital

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

Increase (-) / Reduction (+) of current receivables -2,369 -760

Increase (+) / Reduction (-) of current liabilities -472 2,818

Cash flow from changes in working capital -2,841 2,058

Cash flow from operating activities -9,253 -264

Investing activities

Investments in intangible assets

-2,143 -1,408

Cash flow from investing actiivities -2,143 -1,408

Financing activities

Capital injection - 9,525

New shares issued - 475

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

New loans taken

2,000

Repayment of loans

- -4,000

Change in loans to group companies

8,162 1,773

Amortization lease liabilities

-161 -149

Cash flow from financing activities 10,001 2,845

Cash flow for the year -1,395 1,172

Cash and cash equivalents at the beginning of the year

2,546 1,393

Exchange rate differences in cash and cash equivalents -54 -18

Cash and cash equivalents at the end of the year

1,079 2,546

FINANCIAL STATEMENTS

4342

QUANT ANNUAL REPORT 2023

NOTES

QUANT ANNUAL REPORT 2023

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 25 April 2024. The Balance Sheets and Income Statements

will be subject to approval by the Annual General Meeting on 26 April

2024.

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 2023

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

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NOTES

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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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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 36 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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NOTES

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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 27 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.