Slide 1: Continued growth and profitability at a good level
Year 2023 Continued growth and profitability at a good level March 11, 2024
Slide 2: Agenda
Stefan Nyström CEO Jasmine Jussila Head of Group Communications Agenda • Business Review 2023 • Events after the financial year • Financial Review 2023 • Outlook and strategic targets • Q&A Teemu Kraus CFO
Slide 3: We are
We are Solwers Plc is a growth-oriented group of expert companies. Solwers acts as a growth platform for the companies it owns. Our subsidiaries operate under their own brands and offer a wide range of design, engineering and project management services, challenging the traditional practices of the
Slide 4: Business review 2023
Business review 2023 Stefan Nyström, CEO
Slide 5: Year 2023 in brief 1/2
Year 2023 in brief 1/2 / Revenue growth 5.1% of which 50% is organic / Growth and profitability on a good level although below mid-term target / Weak Swedish krona has impacted the revenue / Equity ratio is above mid-term target / Four acquisitions, one merger / Group eNPS +33 classified as very goo
Slide 6: Year 2023 in brief 2/2
Year 2023 in brief 2/2 / Order stock has decreased, but is still at a good level / Invoicing rate has increased / Wide customer base, around 25 offices in two countries help keep workload up / 3,500+ different projects of which 2,500 are below €10k / About half of the sales from the public sector cl
Slide 7: Revenue growth, EBITA and equity ratio 2023
2023: Revenue growth +5.1% Equity 2023: EBITA 10.7% Ratio EBITA-% EBITA-% +5.1% +40.6% 8,0 11.5 % 10.7 % 70,0 2023 46.4% 7,0 60,0 66.0 7.2 62.8 EBITA-% 7.0 +36.8% 6,0 10.5 % 7,2 50,0 MEUR MEUR 5,0 7,4 62,8 66,0 40,0 44.7 4,0 4.7 2022 30,0 44,7 4,7 46.7% 3,0 20,0 2,0 10,0 1,0 0,0 2021 0,0 2021 2022 2
Slide 8: Acquisitions
Acquisitions 09/2023 12/2023 Arkman Arkkitehtuuri Oy Insinööritoimisto Plan-Air Kokkola, Finland Oy Oulu, Finland Subsidiary of Lukkaroinen Subsidiary of Insinööritoimisto Architects Meskanen Oy HVAC Architectural and interior design 02/2023 09/2023 TCG Nordic AB North 68 Consulting Stockholm, Swede
Slide 9: Interesting projects in 2023
Interesting projects in 2023
Slide 10: Strengthening Sweden's national grid systems
Strengthening Sweden’s national grid systems • ELE Engineering has been involved in several projects that strengthen Sweden's national grid which connects wind farms, solar power plants and battery energy storage systems (BESS). • ELE currently works with grid owners, entrepreneurs, contractors and
Slide 11: Green steel pilot project
Green steel pilot project • Licab AB assists H2GreenSteel in the upcoming steel plant project in Sweden that has lower emissions compared to traditional steel production • Licab provides project management, links the operations and constructions teams, plans, drives, coordinates the sub-projects, an
Slide 12: Removal of level crossings Jyväskylä-Pieksämäki, Finland
Removal of level crossings Jyväskylä- Pieksämäki, Finland • Finnmap Infra is responsible for planning the removal of a total of 15 grade crossings. • Planning for new road connections, bridge planning (total:10), geo-planning, water management and drainage planning, as well as the planning of cable
Slide 13: Keilaniemi hotel project, Espoo Finland
Keilaniemi hotel project, spatial planning and property development, Espoo Finland • A new area in Keilaniemi is to have offices, a hotel, a congress centre and apartments. The infill site is planned as a block formed by three separate sections. • Architects Davidsson Tarkela have designed a tall ho
Slide 14: Ahmo school center and Siilinlahti elementary school
Ahmo school center and Siilinlahti elementary school • Lukkaroinen architects won the life cycle competition for school projects in Siilinjärvi. The projects include two separate schools; Ahmo School Centre's facilities for upper secondary and high schools, as well as Siilinlahti Primary School. • L
Slide 15: Laakso Hospital and Old Vaasa Hospital
Laakso Hospital • Lukkaroinen Architect is part of the LATU design Group, consortium of four architecture companies. • LATU is preparing a project plan for the Laakso joint hospital, and a change to the town plan for the Laakso district of Helsinki. • Clients: City of Helsinki and the Hospital Distr
Slide 16: Events after the financial year
Events after the financial year
Slide 17: New acquisitions in January 2024
New acquisitions in January 2024 01/2024 Relitor AB • Luleå, Sweden • Plant engineering • 20+ employees 01/2024 WiseGate AB: WiseGate Consulting AB DEMAB AB • HQ Malmö + 7 cities, Sweden • Consulting and engineering for the energy and process industries • 50+ employees 01/2024 Kari & Pantsar Co. • H
Slide 18: Financial review 2023
Financial review 2023 Teemu Kraus, CFO
Slide 19: Key figures
Key figures Solwers Consolidated EUR thousand 2023 2022 H2/2023 H2/2022 Revenue 65 991 62 796 32 797 30 234 EBITDA 7 952 8 156 3 944 3 911 EBITDA-% 12,0% 13,0% 12,0% 12,9% EBITA 7 039 7 218 3 503 3 417 EBITA-% 10,7% 11,5% 10,7 % 11,3 % EBIT 4 845 5 091 2 362 2 283 EBIT-% 7,3% 8,1% 7,2% 7,6% Net Prof
Slide 20: Key figures, continued
Key figures, continued Solwers Consolidated EUR thousand 2023 2022 H2/2023 H2/2022 Revenue per person 108 105 53 50 Revenue growth 5,1 % 40,6 % 8,5 % 33,2 % Invoicing rate 81,5 % 80,0 % 81,3 % 79,5 % Adjusted Equity 40 409 38 158 40 409 38 158 Net debt 17 436 13 366 17 436 13 366 Equity Ratio, % 46,
Slide 21: Profit & Loss
Profit & Loss Solwers Consolidated EUR thousand 2023 2022 H2/2023 H2/2022 REVENUE 65 991 62 796 32 797 30 234 Other operating income 1 072 230 982 155 Materials and services -8 022 -8 342 -4 187 -1 883 Employee benefit expenses -41 993 -38 762 -20 734 -20 876 Amortization, depreciation and impairmen
Slide 22: Assets
Assets Solwers Consolidated EUR thousand 31.12.2023 31.12.2022 30.6.2023 30.6.2022 ASSETS NON-CURRENT ASSETS Intangible assets 42 984 39 122 40 875 36 507 Tangible assets 7 295 5 651 6 068 5 872 Investments 1 889 1 888 1 888 1 908 Receivables 1 337 1 451 1 355 1 396 NON-CURRENT ASSETS, TOTAL 53 505
Slide 23: Equity & liabilities
Equity & liabilities Solwers Consolidated EUR thousand 31.12.2023 31.12.2022 30.6.2023 30.6.2022 EQUITY AND LIABILITIES EQUITY Subscribed capital 1 000 1 000 1 000 1 000 Share premium account 20 20 20 20 Other reserves 36 473 35 903 36 290 31 509 Retained earnings -657 -2 816 -1 340 -2 041 Profit fo
Slide 24: Cash flow
Cash flow Solwers Consolidated EUR thousand 2023 2022 H2/2023 H2/2022 Cash flow from operating activities Profit for the financial year 3 208 3 574 1 732 1 655 Amortization, depreciation and impairment 3 107 3 065 1 721 1 628 Financial net 966 495 460 293 Income tax 670 1 022 170 334 Gain from sale
Slide 25: The Board's proposal for the distribution of profit
The Board’s proposal for the distribution of profit • At the end of the financial year 2023, Solwers Plc’s distributable funds amounted to EUR 37,367,260.68, of which the loss for the financial year was EUR 348,380.72. • The Board of Directors proposes to the Annual General Meeting that the loss for
Slide 26: Outlook and strategic targets
Outlook and strategic targets Stefan Nyström, CEO
Slide 27: Market outlook 2024 1/2
Market outlook 2024 1/2 • Forecasting is challenging. Short market visibility. • Workload is expected to drop in some areas for the next 6 months in Finland. A general pick-up in the market can be anticipated towards the end of 2024 – if/when the interest rates start to drop and investment willingne
Slide 28: Market outlook 2024 2/2
Market outlook 2024 2/2 • Industrial investments are expected to further increase particularly in the North of Sweden. Shortage of skilled professionals is the biggest challenge. • Variety of new energy production alternatives, energy storage, power transmission grids and automation solutions will i
Slide 29: Solwers outlook 2024 1/2
Solwers outlook 2024 1/2 • Our business is supported by the megatrend of urbanization, the green transition in Europe, tightening regulation on biodiversity, self-sufficiency in energy production, and especially in Sweden the increased orders of the defense equipment industry. • We continue with acq
Slide 30: Solwers outlook 2024 2/2
Solwers outlook 2024 2/2 • Wide client base, over 500 clients e.g. Trafikverket, Väylävirasto, LKAB, Senate Properties, ~50% public sector projects, of which ~50% infra projects • Diverse service portfolio consisting of many small projects ~70% below EUR 10,000 sales value • Continue to manage our b
Slide 31: Mid-term Financial Targets
Mid-term Financial Targets >20% >12% >40% revenue growth Equity EBITA % (12 months) ratio
Slide 32: Reporting 2024
Reporting 2024 • The Annual Report 2023, Financial Statements and the Report of the Board of Directors for 2023 will be published latest on 29 March • The Annual General Meeting is held on 25 April 2024. The official notice of the AGM will be presented later • Solwers publishes three interim reports
Slide 33: Q&A
Q&A