Vebego’s capital position remains strong. Solvency is 31.7% (2020: 29.3%). The increase is due to the positive result over 2021. The total guarantee equity (group equity minus goodwill plus a provision for deferred taxes) increased to €126 million (2020: €102 million). The increase in the guarantee equity is due to the increase in group equity. The balance sheet total increase was due primarily to an increase in cash and cash equivalents, short-term debt and higher group equity. On the balance sheet date, the cash and cash equivalents, after deducting short-term debt to credit institutions, was €172 million.
Vebego’s financial position improved further in 2021 relative to 2020, due to the greatly improved result, corrected for depreciation, the changes in the provisions and changes in the working capital. Increased income tax paid, fixed asset investments, long-term debt repayments and dividends paid had a dampening effect on improvement. The cash flow from investment activities in 2021 was around the same level as 2020. We have plenty of our own resources in order to finance Vebego’s strategic vision and the subsidiaries’ underlying plans.