Nordisk Bergteknik Ab Class B · OMXSTO:NORB_B
Nordisk Bergteknik Ab Class B — Q2 2023 Earnings Presentation
22 slides from Nordisk Bergteknik Ab Class B's earnings presentation, Aug 17, 2023
Slide 1: Nordisk Bergteknik Q2
AUGUST 17, 2023 Nordisk Bergteknik Q2
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 253m 1 182 FOUNDED IN 2016 SEK ADJ. EBIT Q2 2023 LTM # OF EMPLOYEES SEK 3,677m 6.9% 24 SALES Q2 2023 LTM ADJ. EBIT MARGIN Q2 2023 LTM OPERATING SUBSIDIARIES Figures refer to 2023 Q1 LTM
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, 2023-06 EBIT PER SEGMENT, 2023-06 29% 45% 42% 36% Rock Foundation Rock Rock Norway Sweden Sweden Sweden 19% Rock Norway 29% 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 Exposure to construction No of projects yearly over several years accounts drilling becoming an of new housing to less than increased part o
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 Q2
Interim Report Q2 Strong cash flow and advanced positions in the mining industry
Slide 10: Financial performance (1/2)
Financial performance (1/2) 1000 911 907 20,0% 900 April – June 800 700 • Net sales were in line with previous year and amounted to SEK 600 491 907m (911) 500 9,5% 400 8,2% 7,8% • Organic growth amounted to -10 (25) % 300 • Adjusted EBIT margin amounted to 7.8 (8.2) % 200 100 0 0,0% Q2 2021 Q2 2022
Slide 11: Financial performance (2/2)
Financial performance (2/2) Financials • Adjusted cash flow from operating activities amounted to SEK 105m (-8) during Q2. • Net debt/adjusted EBITDA amounted to 2.8x 105 (3.4x) • Cash and cash equivalents at the end of the period SEK 161m (159) 26 • Unused credit and overdraft facilities amounts to
Slide 12: Performance per segment – Rock Sweden
Performance per segment – Rock Sweden SEKm 500 445 422 420 400 366 344 309 • Rock Sweden’s external net sales increased with 300 244 22 % and the segments organic growth 226 amounted to 2 %. 200 • The increase in net sales is primarily related to 100 new acquisitions compared to prior year. 0 Q3 21
Slide 13: Performance per segment – Rock Norway
Performance per segment – Rock Norway SEKm 300 263 252 240 250 250 217 218 205 • Rock Norway’s external net sales increased with 200 167 5 % and the segments organic growth 150 amounted to 8 %. 100 • EBIT margin was in line with prior year and 50 amounted to 6.4 (7.1) %. The lower EBIT 0 margin duri
Slide 14: Performance per segment – Foundation Sweden
Performance per segment – Foundation Sweden SEKm 350 305 292 289 300 274 250 • Foundation Sweden’s external net sales 210 200 decreased by 31 % and the segments organic 118 150 126 growth amounted to -37 %. The current 113 100 economic situation, with a sharp reduction in 50 housing construction and
Slide 15: Sustainable financial outlook
Sustainable financial outlook NET SALES DEVELOPMENT ADJUSTED EBITDA DEVELOPMENT ADJUSTED EBIT DEVELOPMENT 3 677 537 SEKm 3 402 SEKm SEKm 244 253 493 281 134 1 918 145 102 43 55 1 008 7,2% 7,0% 6,9% 710 6,0% 5,4% 14,3% 14,4% 14,6% 14,5% 14,6% 2019 2020 2021 2022 2023 Q2 2019 2020 2021 2022 2023 Q2 20
Slide 16: Net debt and leverage
Net debt and leverage DEBT RATIO (NET DEBT/EBITDA) • Net debt amounts to SEK 1,480m (1,249). 3,7 3,4 3,1 • Machine loans amounts to 427m and lease liabilities to 364m. 2,8 2,5 2,5 2,6 2,6 • Debt ratio (net debt/EBITDA LTM) amounts to 2.8x (3.4x) • If EBITDA from acquisitions is included LTM debt rat
Slide 17: Performance in the Q2 business climate
Performance in the Q2 business climate • Continued strong demand for our services in infrastructure and mining/prospect drilling. • Challenging market conditions in housing construction in Q2 which have led to decreased organic Current trading growth. We expect continued low activity on the housing
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