Nordisk Bergteknik Ab Class B · OMXSTO:NORB_B
Nordisk Bergteknik Ab Class B — Q4 2023 Earnings Presentation
22 slides from Nordisk Bergteknik Ab Class B's earnings presentation, Feb 13, 2024
Slide 1: Nordisk Bergteknik Q4
FEBRUARY 13, 2024 Nordisk Bergteknik Q4
Slide 2: Table of contents
Table of contents Nordisk Bergteknik at a glance Financial targets and strategy to get there This is Nordisk Bergteknik Predicted continued growth Diversified project portfolio to lower risks Four main financial targets Operational synergies lead to attractive offering and high entry barriers Interi
Slide 3: This is Nordisk Bergteknik
This is Nordisk Bergteknik Was there a better way of building modern, sustainable SECTORS societies? We believed so. We also considered that a more Infrastructure, energy, real estate, mining consolidated market for rock and foundation solutions was part of the answer. So, in 2016, Nordisk Bergtekni
Slide 4: Leading the market in rock and foundation solutions
Leading the market in rock and foundation solutions 173m 1,195 FOUNDED IN 2016 SEK ADJ. EBIT 2023 # OF EMPLOYEES SEK 3,526m 4.9% 23 SALES 2023 ADJ. EBIT MARGIN 2023 OPERATING SUBSIDIARIES
Slide 5: Areas for our services and solutions
Areas for our services and solutions Rock Rock and concrete Drilling Rock excavation Prospecting, excavation and Excavation of rock, mainly reinforcement reinforcement through blasting Maintenance of rock and concrete constructions Foundation Foundation Piling Sheet piling Ensuring a stable and rein
Slide 6: Attractive business mix
Attractive business mix REVENUE BY SEGMENT, YTD 2023 EBIT PER SEGMENT, YTD 2023 29% 17% 46% 56% Rock Foundation Rock Rock Norway Sweden Sweden Sweden 27% Rock Norway 25% Foundation Sweden
Slide 7: Diversified project portfolio lower the risk level
Diversified project portfolio lower the risk level High revenue diversification and few projects with fixed price Few large projects spread Mining and prospect Direct exposure to No of projects yearly over several years accounts drilling becoming an construction of new to less than increased part of
Slide 8: Operational synergies lead to attractive offering and barriers to entry
Operational synergies lead to attractive offering and barriers to entry Synergies Barriers to entry • Knowledge sharing • Economies of scale • Flexible resource and machine • Strong market position and allocation track record • Centralised sourcing of raw • Highly experienced employees materials and
Slide 9: Interim Report Q4
Interim Report Q4 Strong cash flow and activities to adapt the operations to the current market climate and improved profitability
Slide 10: Financial performance (1/2)
Financial performance (1/2) 1200 20,0% 973 October – December 1000 888 800 • Net sales decreased by 9% and amounted to SEK 888m (973) 587 600 • Organic growth amounted to -15 (20) % 8,2% 7,7% 400 • Adjusted EBIT margin amounted to 3.5 (8.1) % 200 3,5% 0 0,0% Comments Q4 2023 Q4 2022 Q4 2021 • Higher
Slide 11: Financial performance (2/2)
Financial performance (2/2) Financials • Adjusted cash flow from operating activities 197 amounted to SEK 196m (197) during Q4. 197 • Net debt/adjusted EBITDA amounted to 3.2x (2.6x). • Cash and cash equivalents at the end of the 65 period SEK 115m (263). • Unused credit and overdraft facilities amo
Slide 12: Performance per segment – Rock Sweden
Performance per segment – Rock Sweden SEKm 500 445 421 420 422 400 356 366 344 309 • Rock Sweden’s external net sales were in line 300 with prior year and the segments organic growth amounted to -17%. 200 • During the quarter, the segment continued to be 100 negatively affected by the decline in hou
Slide 13: Performance per segment – Rock Norway
Performance per segment – Rock Norway SEKm 350 292 300 263 243 252 250 240 250 218 • Rock Norway’s external net sales decreased 205 200 with 8 %, primarily attributable to currency 150 effects. The organic growth amounted to -1%. 100 • The EBIT margin amounted to 2.5 (5.5) %. The 50 segment has been
Slide 14: Performance per segment – Foundation Sweden
Performance per segment – Foundation Sweden SEKm 350 305 274 289 292 300 250 224 210 • The external net sales during the fourth quarter 200 172 decreased by 22% and amounted to SEK 224.3 150 118 (288.7) million. The organic growth amounted to 100 -23%. The current economic situation, with a 50 sharp
Slide 15: Sustainable financial outlook
Sustainable financial outlook NET SALES DEVELOPMENT ADJUSTED EBITDA DEVELOPMENT ADJUSTED EBIT DEVELOPMENT 3 526 SEKm 3 402 SEKm 493 SEKm 244 485 173 281 134 1 918 145 102 43 55 1 008 7,2% 7,0% 710 6,0% 5,4% 14,3% 14,4% 14,6% 14,5% 13,7% 4,9% 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 202
Slide 16: Net debt and leverage
Net debt and leverage DEBT RATIO (NET DEBT/EBITDA) • Net debt amounts to SEK 1,558m (1,274). 3,4 3,2 3,2 3,1 • Machine loans amounts to 442m and lease liabilities to 366m. 2,7 2,6 2,6 2,5 2,5 • Debt ratio (net debt/EBITDA LTM) amounts to 3.2x (2.6x). • Cash and cash equivalents amounts to SEK 115m (
Slide 17: Performance in the Q4 business climate
Performance in the Q4 business climate • Continued strong demand for our services in infrastructure, mining/prospect drilling, operation and maintenance services as well as material handling services. Current trading • Continued challenging market conditions in housing construction in Q4 which also
Slide 18: Strategy and financial targets
Strategy and financial targets
Slide 19: Predicted continued growth (1/2)
Predicted continued growth (1/2) 3 GEOGRAPHICAL EXPANSION Future • Add additional steps in value chain to offering • Both backward and forward integration is possible 1 4 EXECUTE ON EXPLOIT EXISTING M&A CURRENT PIPELINE CAPABILITIES • Continued M&A journey • Unique collaborations through disciplined
Slide 20: Predicted continued growth (2/2)
Predicted continued growth (2/2) Future Successful operations in a niche market • Limited competition in a niche market with high barriers to entry since operations requires a high level of expertise, specialized 4 EXECUTE ON EXISTING M&A PIPELINE equipment and machine capacity • Additional upside w
Slide 21: Four main financial targets
Four main financial targets 40% Dividend 15% policy Growth 7% Profitability <2,5x Capital structure Achieve annual net sales growth of The Group targets an adjusted The net debt in relation to adjusted Nordisk Bergteknik aims to distribute 40 more than 15 percent over a business EBIT-margin of 7 per
Slide 22: Nordisk Bergteknik
NORDISK BERGTEKNIK