Netel Holding Ab · OMXSTO:NETEL

Netel Holding Ab — Q1 2024 Earnings Presentation

18 slides from Netel Holding Ab's earnings presentation, Apr 26, 2024

1. Slide 1: Q124 presentation

   Q124 presentation 26 April 2024

2. Slide 2: Leading specialists in critical infrastructures

   Leading specialists in critical infrastructures • Net sales R12M SEK 3 490 m, +9.1% • Adjusted EBITA R12M SEK 168 m • Order backlog SEK 3.8 b Net sales by Net sales by segment Q124 country Q124 Infraservices Power Telecom Sweden Norway Finland UK Germany 2

3. Slide 3: Strong market trends

   Strong market trends Climate change Digitalisation Modernisation of infrastructures 3

4. Slide 4: Electrifying Nacka

   Electrifying Nacka • Southeast of central Stockholm • 20,000 new homes and 15,000 new workplaces by 2030 • Electricity network must be expanded • Netel to rebuild two distribution stations • Customer: Nacka Energi 4

5. Slide 5: Digitalising Norwegian Østlandet

   Digitalising Norwegian Østlandet • Development, maintenance and troubleshooting of fibre networks in six of nine zones • Responsibility for security and readiness throughout the whole network • Framework agreement renewed and expanded in 2023 • Customer: Viken Fiber 5

6. Slide 6: Modernising infrastructures in Örebro

   Modernising infrastructures in Örebro • Project Bus Rapid Transit, BRT • New bus stop and own bus lanes • Reconstruction of street, GC track, lighting and signaling systems • Relocation and renovation of water sewage • Customer: Örebro Municipality 6

7. Slide 7: Sustainability – a key competitive advantage

   Sustainability – a key competitive advantage • In the process of applying for science-based targets • Implemented external system support for collecting, quality-assuring and analysing sustainability data • Double materiality analysis according to CSRD is performed 7

8. Slide 8: Good sales development and new reporting structure

   Q124 highlights Good sales development and new reporting structure • Good sales development especially in Infraservices, Power in Sweden and Telecom in Norway • Negatively affected by seasonality with a normally weak first quarter due to winter conditions and a high proportion of projects in start-u

9. Slide 9: Financial performance

   Financial performance 9

10. Slide 10: Organic growth of 3.9% and normal seasonality

    Q124 net sales and order backlog Organic growth of 3.9% and Net sales, MSEK normal seasonality 1200 1000 800 • +4.5% to MSEK 714 (684) 600 • Impacted by seasonality 400 200 • Strong development in Infraservices, Power Sweden 0 and Telecom Norway Q122 Q222 Q322 Q422 Q123 Q223 Q323 Q423 Q124 • Organic

11. Slide 11: Impact from seasonality and projects in start-up phase

    Q124 profitability Impact from seasonality and projects in start-up phase Adjusted EBITA and margin • Adjusted EBITA MSEK 14 (11) 80 8 • Adjusted EBITA margin 2.0% (1.6) 70 7 60 6 • Impact from normal seasonality and a high proportion 50 5 of projects in start-up phase 40 4 30 3 20 2 • EPS -0.17 (-0

12. Slide 12: Weak operating cash flow

    Q124 cash flow and financial position Weak operating cash flow Operating cash flow, MSEK 250 200 • Operating cash flow MSEK -89 (8) 150 100 • Impact from start-up phase 50 • Unutilized credit facilities and cash MSEK 573 0 Q420 Q121 Q221 Q321 Q421 Q122 Q222 Q322 Q422 Q123 Q223 Q323 Q423 Q124 -50 • L

13. Slide 13: Segment performance

    Segment performance 13

14. Slide 14: Infraservices: Strong growth and improved profitability

    Q423 Infraservices Strong growth and improved profitability Net sales and EBITA margin 300 14% 250 12% • Net sales +18.5% to MSEK 163 200 10% 8% 150 • Good demand for larger projects in Q423 where 6% 100 4% delivieries started already in Q124 50 2% 0 0% • EBITA +80.0% to MSEK 9 Q123 Q223 Q323 Q423 Q

15. Slide 15: Power: Good demand and improved profitability

    Q124 Power Good demand and improved profitability Net sales and EBITA margin 400 10% 350 8% • Net sales -1.0% to MSEK 228 300 6% 250 4% • Impacted by planned lower volumes in Finland 200 2% 150 0% • Good development in Sweden and Norway 100 -2% 50 -4% 0 -6% • EBITA improved to MSEK 9 (-9) Q123 Q223

16. Slide 16: Telecom: Good sales development in the Nordics

    Q124 Telecom Good sales development Net sales and EBITA margin in the Nordics 500 450 400 2% 1% 350 300 0% • Net sales +3.5% to MSEK 328 250 200 -1% 150 • EBITA MSEK -8 (4) 100 -2% 50 0 -3% • EBITA margin -2.4% (1.3) Q123 Q223 Q323 Q423 Q124 Net sales, MSEK EBITA margin, % • Impact from normal seaso

17. Slide 17: Key ongoing activities

    Key ongoing activities • Further strengthening our position as a leader in critical infrastructure in Northern Europé • Focus on our sustainability work • Continue margin enhancing activitities in Norway and Finland • Digitalisation project across the Group • Monitoring development in the UK and Ger

18. Slide 18: Q224 report 12 July 2024

    nelel ©) Q224 report 12 July 2024

Netel Holding — Q1 2024 Earnings Presentation on 6ix