Eltel Ab · OMXSTO:ELTEL
Eltel Ab — Q3 2020 Earnings Presentation
22 slides from Eltel Ab's earnings presentation, November 2020
Slide 1: Eltel AB Investor presentation November 2020
Eltel AB Investor presentation November 2020
Slide 2: Eltel in brief
Eltel in brief We secure power and Founded in 2001 communication networks for a more sustainable and Leading Nordic field service provider connected world. Operations throughout the Nordics, Lithuania, Poland and Germany Net sales EUR 1.1 billion, 6,000 employees UN Global Compact signatory since 20
Slide 3: Our purpose
Our purpose Securing the lifelines of modern society
Slide 4: Our vision
Our vision To be a front- runner
Slide 5: Sustainability − integrated in our way of working
Sustainability − integrated in our way of working Priority areas Focus areas Health & safety • Zero fatalities and disability cases • Reduce Lost Time Injury Frequency (LTIF) incl subcontractor employees People & society • Be the industry’s most attractive workplace in the infranet field • Contribut
Slide 6: Focus on segments
Focus on segments Net sales Q3/2020 Power and Communication* 2% 5% 6% The Nordics, Poland and Germany 31% 12% ▪ Grow in line with market ▪ Capitalise on trends ▪ Improve operational processes 20% ▪ Make selective acquisitions 24% ▪ Increase efficiency Finland Sweden Norway Denmark Germany Poland Oth
Slide 7: Eltel's business
Eltel’s business – driven by stable customers with long term investment needs Segments Drivers Power ▪ Regulatory demands ▪ Technical shift ▪ Ageing infrastructure ▪ Increasing end-customer demands Communication ▪ Outsourcing 7
Slide 8: Our long-term plan
Our long-term plan 2017–2018 2019–2021 2022–2023 House in order Operational Excellence Investing in sustainable profitable growth ▪ Reorganisation to strengthen ▪ Improve profitability ▪ Increased market share in the focus on local markets ▪ Prioritise core operational Nordics ▪ Increased focus on o
Slide 9: Delivering on the strategy
Delivering on the strategy ▪ Stronger position in the Nordics Net debt development (excluding leases) – Gained market share 240 – Expanded contracts with better terms and 200 conditions 200 ▪ Successful divestments/ramping-down 160 148 – Non-core business, incl. risky, unprofitable and EUR million 1
Slide 10: Eltel key focus areas 2021
Eltel key focus areas 2021 Continued operational focus ▪ Tender ▪ Right people ▪ Implementation & execution ▪ Production planning ▪ Training ▪ Improved profitability ▪ Upsell on existing customer base ▪ Improved quality ▪ High customer Strategic focus satisfaction ▪ Engaged employees ▪ Strengthen ou
Slide 11: Why invest in Eltel?
Why invest in Eltel? We secure power and communication networks for a more sustainable and connected world today and for future generations. Nordic market Trends supporting Focus on operational Quality-focused Cross-border leader growth excellence organisation synergies 11
Slide 12: Eltel AB Q3 2020 Presentation
Eltel AB Q3 2020 Presentation 5 November 2020
Slide 13: Today's presenters
Today’s presenters Casimir Lindholm Saila Miettinen-Lähde President and CEO CFO 13
Slide 14: Highlights
Highlights ▪ Gradual improvements in our operational performance ▪ Improved operative EBITA for the Group, despite lower net sales ▪ Divestments and currency effects have strong impact on net sales ▪ Stable balance sheet, clear improvements from previous years – Reduced net working capital – Reduced
Slide 15: COVID-19 impact
COVID-19 impact ▪ Continued moderate impact in Q3: – Project postponements and delays in High Voltage – Reduced and delayed investments from a large customer in the Communication segment in Norway – Increase in short-term sick leaves, which affects our utilisation rates 15
Slide 16: Large High Voltage and Power Transmission International projects
Large* High Voltage and Power Transmission International projects Project portfolio, EUR 26 million in estimated remaining net sales *High Voltage projects with net sales of more than EUR 10 million EURmillion million and all remaining Power Transmission International projects Year EUR,EUR, million
Slide 17: Total Group: Q3 2020
Total Group: Q3 2020 ▪ Net sales EUR 226.7 million (281.8), -19.6% ▪ Organic growth in Power and Communication* -12.3% ▪ Operative EBITA EUR 6.7 million (4.1) Total Group ▪ Operative EBITA margin 2.9% (1.5) ▪ Operating result (EBIT) EUR 5.8 million (3.9) ▪ Cash flow from operating activities EUR -16
Slide 18: Total Group: January-September 2020
Total Group: January-September 2020 ▪ Net sales EUR 708.8 million (808.8), -12.4% ▪ Organic growth in Power and Communication* -6.2% ▪ Operative EBITA EUR 7.5 million (3.6) Total Group ▪ Operative EBITA margin 1.1% (0.4) ▪ Operating result (EBIT)** EUR 26.7 million (2.5) ▪ Cash flow from operating a
Slide 19: Net sales segments: Q3 2020
Net sales segments: Q3 2020 ▪ Net sales EUR 84.9 million, -17.6% – Lower activity and COVID-19 related delays in High Voltage Power • The lower activity is partly attributable to our strategy of reducing exposure to capital-intensive business – Market leading position in Finland remained strong ▪ Or
Slide 20: Operative EBITA segments: Q3 2020
Operative EBITA segments: Q3 2020 ▪ Operative EBITA EUR 0.9 million (-3.6) ▪ Operative EBITA margin 1.0% (-3.5) Power – Sweden and High Voltage are recovering gradually and continue to reduce risks in the projects ‒ Finland improved despite negative effects from Build projects ‒ Two projects, which
Slide 21: Questions
Questions
Slide 22: ELTEL
ELTEL