NYAB's settlement agreement with the City of Mikkeli entered into force

Translation: Original comment published in Finnish on 5/12/2023 at 6:39 am.

NYAB announced on Thursday that the settlement agreement signed between NYAB Finland and the City of Mikkeli in April became final yesterday. We had already taken the settlement agreement into account in our estimates earlier, so there is no pressure to revise them in this respect. However, NYAB will publish its Q1 report today, Friday, and we will look again at our estimates in more detail based on it. Our pre-comment on the result can be read here.

The settlement agreement will support the company's profit and cash flow for the current year

The settlement agreement was the result of a dispute between NYAB Finland, a member of the NYAB Group, and Mikkelin Vesilaitos, a public utility owned by the City of Mikkeli. Resolution of Mikkeli City Board on the approval of the settlement agreement became final yesterday, with which the agreement has been executed. Under the terms of the agreement, Mikkelin Vesilaitos will pay NYAB a total compensation of EUR 9.2 million. This is estimated to have a corresponding positive cash flow effect for NYAB in Q2 and a positive one-off effect of EUR 3.6 million on the result. We had already taken the settlement agreement into account in our estimates, so in this respect the decision has no impact on our estimates.