Eltel Ab · OMXSTO:ELTEL
Eltel Ab — Q4 2023 Earnings Presentation
20 slides from Eltel Ab's earnings presentation, Feb 14, 2024
Slide 1: 1
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Slide 2: Eltel AB Q4 2023 presentation
Eltel AB Q4 2023 presentation 14 February 2024 2
Slide 3: Today’s presenters
Today’s presenters Håkan Dahlström Tarja Leikas Elin Otter President and CEO CFO Director, Communications and Investor Relations 3
Slide 4: Highlights Q4 2023
Highlights Q4 2023 • Strong top-line development • Net sales was EUR 240.2 million (224.0). Total growth 7.2% • Growth in local currency 10.9% (2.5) in segments and 10.3% (1.7) for the Group • Growth mainly driven by Denmark with 34.9%, Finland with 22.4%. In Sweden growth in local currency was 5.8%
Slide 5: Highlights full-year 2023
Highlights full-year 2023 • Rough start of the year, good recovery during second half • Increased volume, restructuring and cost-saving programs, pricing and indexing • Reached our Group annual growth target: 3.2% • 8.8% growth in segments in local currency • Improved financial position – all time l
Slide 6: Margin improvements
Margin improvements Net sales Main drivers behind Q4 result: Cost of sales Delayed and incomplete cost compensation leading to margin squeeze • Renegotiations of existing contracts & • Initial renegotiations to add index / obtain fuel price indexation compensation / raise prices in existing agreemen
Slide 7: Strong demand for our services
Strong demand for our services Committed order backlog New commercial terms, EUR million / Growth % impact on portfolio 2022 2023 2024 2025 • Continued focus on commercial development 600 +13.7% 16% 44% 73% • New commercial terms since Q3 2022 500 • New pricing strategy • Cash flow optimization 400
Slide 8: Total Group January-December 2023
Total Group M€ Net sales M€ January-December 2023 250 210 860 850 170 840 Net sales Adjusted EBITA • Net sales growth accelerated in Q4 • Profitability improvement continued in Q4 130 830 • 7.2% reporting currency • Adjusted EBITA improved by EUR 6.8 million YoY 90 820 • 10.3% local currency • Impro
Slide 9: Finland January-December 2023
Finland M€ Net sales M€ January-December 2023 110 90 350 Net sales Adjusted EBITA 70 310 • Significant growth • Positive development in H2 • Q4: 22.4% 50 • Major improvement in Q4 YoY • FY: 18.7% • EUR 3.2 million (-1.2). 30 270 • Growth drivers Communication business and • Margin was 3.3% (-1.5) Q4
Slide 10: Sweden January-December 2023
Sweden M€ Net sales M€ January-December 2023 65 230 50 210 Net sales Adjusted EBITA • Net sales continued to grow in Q4 • Moderate improvement in Q4 YoY 35 190 • EUR 56.6 million (56.5) • EUR 1.3 million (1.2) • Growth in local currency 5.8% • Margin was 1.3% (1.2%) 20 170 • Strong development in Sm
Slide 11: Norway January-December 2023
Norway M€ Net sales M€ January-December 2023 50 40 250 200 30 150 Net sales Adjusted EBITA • Net sales decreased in Q4 • Negative result despite improvement in Q4 YoY 20 100 • EUR 33.8 million (44.3) • EUR -0.8 million (-2.2). 10 50 • Margin was -2.3% (-5.0) • Lower volumes of customer investments 0
Slide 12: Denmark January-December 2023
Denmark M€ Net sales M€ January-December 2023 30 25 100 90 Net sales Adjusted EBITA 20 80 • Significant growth • Major profitability improvement in Q4 and FY • Q4: 34.9% • Q4: 15 70 • FY: 25.3% • EUR 1.3 million (0.4). • Margin was 4.6% (1.9). 10 60 • Growth drivers were the expanded Power Q4 Q1 Q2
Slide 13: Other business January-December 2023
Other business M€ Net sales M€ January-December 2023 30 130 25 100 Net sales Adjusted EBITA • Net sales increased in Q4 • Profitability improvement in Q4 and FY 20 70 • EUR 26.9 million (25.6) • Q4: EUR 0.5 million (0.2) • Positive impact from closing activities in • FY: EUR -1.0 million (-4.0) 15 4
Slide 14: Group balance sheet
Group balance sheet Leverage Net debt Net working capital M€ M€ 7 180 0 6 150 -10 5 120 -20 4 90 -30 3 60 -40 2 1 30 -50 0 0 -60 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 22 23 23 23 23 22 23 23 23 23 22 23 23 23 23 IFRS 16 leasing liabilities Leverage Net debt excluding leasing liabilities NWC L
Slide 15: Eltel Group financial targets by end of 2025
Eltel Group financial targets by end of 2025 Profitability Group adjusted EBITA margin 5% Growth Annual growth 2–4% Leverage 1.5–2.5x net debt/adjusted EBITDA Dividend payout Subject to leverage target 15
Slide 16: Our strategy in short
Our strategy in short • Improve efficiency and profitability of the current • Integrate sustainability as part of our offerings and business, including price increases operations • Broaden the customer base • Develop our concepts and commercial capabilities • Grow in new and adjacent markets, such a
Slide 17: Strategy execution
Strategy execution Signed contracts during 2023 4% • Electrification and digitalization drive new business within green transition • Accelerate the development and implementation of our offering, 96% primarily in: • Solar PV New business Classic business • E-Mobility Pipeline • Successfully built th
Slide 18: New company values
New company values Values are the guiding principles that shape Eltel’s culture, behavior and decision making. Create opportunities Always professional Care for life Combine strengths 18
Slide 19: Questions
Questions Next report Q1 2024: 26 April 2024 19
Slide 20: ELTEL
ELTEL