Eltel Ab · OMXSTO:ELTEL

Eltel Ab — Q4 2018 Earnings Presentation

19 slides from Eltel Ab's earnings presentation, February 2019

  1. Slide 1: Eltel AB Investor presentation

    Eltel AB Investor presentation February, 2019 © Eltel - Shaping Future Infranets 1

  2. Slide 2: Eltel in brief

    Eltel in brief Northern European market leader Operations throughout the Nordics, Poland and Germany Industry with long-term structural growth Solid customer base and recurring revenues Net sales EUR 1.2 billion, 7,400 employees Listed on Nasdaq Stockholm since 2015 © Eltel - Shaping Future Infranet

  3. Slide 3: Focus on segments

    Focus on segments Net Sales 2018 Power and Communication 6%2% 8% 30% 9% The Nordics, Poland and Germany 22% Grow in line with market, capitalise on 23% trends, improve operational processes, make selective acquisitions, increase efficiency Sweden Finland Norway Denmark Poland Germany Other countries

  4. Slide 4: Eltel's business

    Eltel’s business – driven by stable customers with long term investment needs Segments Drivers Power  Regulatory demands  Outsourcing  Ageing infrastructure  Increasing end-customer demands Communication  Technical shift © Eltel - Shaping Future Infranets 4

  5. Slide 5: Eltel AB Q4 2018 Presentation

    Eltel AB Q4 2018 Presentation 14 February 2019 © Eltel - Shaping Future Infranets 5

  6. Slide 6: Q4 2018 highlights

    Q4 2018 highlights  Strong cash flow  Improved operative EBITA  Net sales decreased according to plan  New Managing Director for Country Unit Sweden 6

  7. Slide 7: Total Group: Q4

    Total Group: Q4  Net sales -11.6% to EUR 330.9 million  Organic growth in Power and Communication* -5.1% Total Group  Operative EBITA EUR 2.9 million (2.2)  Operative EBITA margin 0.9% (0.6)  Cash flow from operating activities EUR 70.0 million (42.3) *Adjusted for divested operations and curre

  8. Slide 8: Group: Operative EBITA development

    Group: Operative EBITA development 10.0 2.0% 5.0 1.0% 0.0 0.0% -5.0 -1.0% -10.0 -2.0% -15.0 -3.0% -20.0 -4.0% -25.0 -5.0% Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Operative EBITA, quarter Operative EBITA margin, rolling 12 months 8

  9. Slide 9: Net sales segments: Q4

    Net sales segments: Q4  Net sales -11.9% to EUR 115.1 million  Lower volumes in Finland Power  Ramp down of certain service contracts in Sweden  Organic growth in current operations* -11.1%  Net sales -3.9% to EUR 207.1 million  Lower volumes in Build Sweden and Communication adjustments of re

  10. Slide 10: Operative EBITA segments: Q4

    Operative EBITA segments: Q4  Operative EBITA EUR -1.9 million (-0.5)  Operative EBITA margin -1.6% (-0.3) Power  Measures taken in High Voltage starts to show effect  Lower volumes and underperformance in Service Finland  Operative EBITA EUR 9.7 million (12.9)  Operative EBITA margin 4.7% (6.

  11. Slide 11: Our long-term plan

    Our long-term plan >2022 “Investing in sustainable profitable growth” 2019-2021 “Operational excellence” 2017-18 “House in order”  Continued focus on operational excellence  Pursue structural M&A’s in  Prioritise core operational the Nordics when financial improvements (operational situation impr

  12. Slide 12: Operational focus in 2019

    Operational focus in 2019  Tender  Right people  Implementation & execution  Cash generation  Production planning  Lower net debt  Training 12

  13. Slide 13: Financial targets

    Financial targets Medium to long-term target Annual growth of 2-4%, including Growth selective acquisitions EBITA-margin EBITA-margin of at least 5% Cash conversion Cash conversion of 95-100% of EBITA Capital structure Leverage of 1.5-2.5x net debt/EBITDA © Eltel - Shaping Future Infranets 13

  14. Slide 14: Appendices

    Appendices © Eltel - Shaping Future Infranets 14

  15. Slide 15: Our services – in business segments

    Our services – in business segments Power Communication Other FY 2018 37% 61% 2% Net Sales MEUR 438 MEUR 727 MEUR 23 (MEUR 1,188) Geographical Nordics, Poland, Germany Nordics, Poland, Germany Power Transmission markets International, Rail in the Nordics Service Design, engineering, Installation / m

  16. Slide 16: Our core markets with a foreseen market growth of almost 8%

    Our core markets with a foreseen market growth of almost 8% Sales split 2018 Core markets of Eltel 2% CAGR 2020f 6% Market +8.0% 8% size (2017E): 30% EUR 8.9bn 9% 22% 23% Sweden Finland Norway Denmark Poland Germany Other countries © Eltel - Shaping Future Infranets Source: Company information, mana

  17. Slide 17: Eltel's segments

    Eltel’s segments – built on core competences with solid market position Services split (2017A) Maintenance Power Projects 21%  Maintenance incl. roll- outs 29%  Upgrades  Projects incl. roll-outs Upgrades Communication 51% © Eltel - Shaping Future Infranets 17

  18. Slide 18: Market size and outlook

    Market size and outlook Power +8% Stable markets  Investments by both TSOs and DSOs BNEUR 4.8 3.7 expected to increase  Network modernisation and robustness together with smart metering important 2017 2020 market drivers Growth  Significant investment in transmission BNEUR platform network driven

  19. Slide 19: Market size and outlook

    Market size and outlook Communication Stable markets  Strong growth in data traffic within both fixed BNEUR 0% and mobile communication 2.3 2.3  Stable markets with tough competition between telecom operator which puts some price pressure on technical Infranet services 2017 2020 Growth  Telecom o

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