Kreate Group Plc · OMXHEX:KREATE
Kreate — Q1 2025 Earnings Presentation
20 slides from Kreate's earnings presentation, Apr 24, 2025
Slide 1: Order backlog up 28% from year-end – EBITA in line with comparison period
ORDER BACKLOG UP 28% FROM YEAR-END – EBITA IN LINE WITH COMPARISON PERIOD MIKKO LAINE, CFO 24 APRIL 2025 K R E AT E G R O U P P L C / I N T E R I M R E P O RT Q 1 2 0 2 5
Slide 2: Order backlog grew in strategically important areas
ORDER BACKLOG GREW IN STRATEGICALLY IMPORTANT AREAS ▪ EBITA profitability in Q1 was 0.1% (0.5%) ▪ Seasonally the weakest quarter of the year ▪ EBITA EUR 0.1 (0.3) million, close to the level of the comparison period ▪ Efficient operations, selective tendering, and a flexible cost structure ▪ Revenue
Slide 3: Strategy in action – highlights from the first quarter
STRATEGY IN ACTION – HIGHLIGHTS FROM THE FIRST QUARTER W E M U S T: Headcount continued to grow – successful key recruitments and strong 1 BE THE BEST PLACE FOR THE BEST INFRASTRUCTURE EXPERTS focus on developing future talent through internships. Professional development remains a key theme – annua
Slide 4: Highlights from the first quarter
HIGHLIGHTS FROM THE FIRST QUARTER Recycled anti-slip sand back to use Progress on the Helsinki–Riihimäki project Multiple wins for Kreate Sverige In January, Kreate received End-of-Waste In February, bored piles were cast for the The long-standing cooperation with infrastructure (EoW) status for ant
Slide 5: Market outlook improving in the short term, positive in the long term
MARKET OUTLOOK IMPROVING IN THE SHORT TERM, POSITIVE IN THE LONG TERM < 6-MONTH > 6-MONTH SHARE OF KREATE’S BUSINESS FUNCTIONS OUTLOOK* OUTLOOK* REVENUE Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 STRUCTURAL ENGINEERING Bridge construction Market development Weaker Foundation and engineering Unchanged constructio
Slide 6: Interest rate development supports investments
INTEREST RATE DEVELOPMENT SUPPORTS INVESTMENTS POTENTIAL IMPACTS OF TRADE POLICY DIFFICULT TO ASSESS INFLATION AND INDUSTRIAL INVESTMENTS TRANSPORT INVESTMENTS INTEREST RATES Industrial companies are willing to Appr. EUR 3+1 billion from the Cost level remains stable. In invest, but final investment
Slide 7: Kreate's largest project enters implementation phase
KREATE’S LARGEST PROJECT ENTERS IMPLEMENTATION PHASE MAKES EXTENSIVE USE OF KREATE’S EXPERTISE IN DEVELOPMENT PHASE – NOT YET IN ORDER BACKLOG TAMPERE RAIL YARD (THE REMAINING PART) Alliance model, with Kreate as the sole construction partner. The total project budget is appr. EUR 200 million, of wh
Slide 8: Order backlog grew by 28% with projects well aligned with Kreate's profile
ORDER BACKLOG GREW BY 28% WITH PROJECTS WELL ALIGNED WITH KREATE’S PROFILE ▪ Order backlog at the end of March: EUR 225.7 million Order backlog Q1/23 – Q1/25, EUR million ▪ Change from end of December: 27.8% ▪ Change from a year earlier: 22.9% ▪ In Q1 2025, new projects were secured totaling approxi
Slide 9: Long-term outlook is positive
LONG-TERM OUTLOOK IS POSITIVE MILITARY MOBILITY URBANIZATION GREEN TRANSITION The need for and importance of Urbanisation means denser and Total investments in 2025 are rail, road, port and airport more challenging construction forecast* to increase to 8.5 BEUR. infrastructure to the northern and an
Slide 10: EBITA close to the level of the comparison period
EBITA CLOSE TO THE LEVEL OF THE COMPARISON PERIOD ▪ In January–March, the EBITA margin declined year- on-year to 0.1% (0.5%) EBITA, EUR million ▪ EBITA EUR 0.1 million (0.3 million) in absolute terms. ▪ Positive EBITA profitability ▪ Seasonally weak quarter ▪ Efficient operational performance ▪ Flex
Slide 11: Revenue expected to be weighted towards end of the year
REVENUE EXPECTED TO BE WEIGHTED TOWARDS END OF THE YEAR Revenue, EUR million Revenue distribution 1-3/2025 -17.4% -3.6% change from the same quarter in the previous year 11
Slide 12: Personnel and expertise at the core of sustainability
PERSONNEL AND EXPERTISE AT THE CORE OF SUSTAINABILITY SUSTAINABILITY REPORT PROVIDES A COMPREHENSIVE OVERVIEW Building with passion Highlights 2024 Employee satisfaction Occupational safety and safety culture 49 11.3 71 Increasing competence Combined accident eNPS trainees frequency Responsible empl
Slide 13: Summer brings trainees to the construction sites
SUMMER BRINGS TRAINEES TO THE CONSTRUCTION SITES GUIDANCE AND OCCUPATIONAL SAFETY ARE OF PARTICULAR IMPORTANCE Building with passion Highlights Q1 2025 Employee satisfaction Occupational safety and safety culture 10.3 4.0 21 % Increasing competence Combined observations observations accident frequen
Slide 14: Key figures
KEY FIGURES EUR million 1-3/2025 1-3/2024 1-12/2024 Order backlog 225.7 183.6 176.6 Revenue 52.4 54.4 275.5 EBITDA 1.7 1.6 15.3 EBITDA, % 3.2 % 3.0 % 5.5 % EBITA 0.1 0.3 8.8 EBITA, % 0.1 % 0.5 % 3.2 % Operating profit 0.0 0.2 8.7 0.0 Operating profit, % % 0.4 % 3.2 % Result for the period 0.1 -0.6 4
Slide 15: Cash flow driven by improved net working capital
CASH FLOW DRIVEN BY IMPROVED NET WORKING CAPITAL Free cash flow from operating activities, EUR million ▪ Operational cash flow in January-March amounted to EUR 6.0 million (-3.1 million). ▪ The change in net working capital improved cash flow by EUR 6.0 million compared to Q4/2024. ▪ Net investments
Slide 16: Interest-bearing net debt at a normal level
INTEREST-BEARING NET DEBT AT A NORMAL LEVEL ▪ Kreate’s interest-bearing net debt on 31 March 2025 Interest-bearing net debt (EUR million) and equity ratio (%) was EUR 24.4 (31 March 2024: 20.9) million ▪ The change in working capital is the most significant factor behind the increase in net debt com
Slide 17: Interest-bearing debt – maturity and average interest
INTEREST-BEARING DEBT – MATURITY AND AVERAGE INTEREST Loan portfolio on 31 March 2025, EUR million Repayment schedule for interest-bearing debt on 31 March 2025, EUR million Average interest of interest- bearing debt, excluding lease liabilities recognised in the balance sheet 5.1 % 17
Slide 18: Guidance for 2025 unchanged
GUIDANCE FOR 2025 UNCHANGED Kreate estimates that its revenue in 2025 will grow and be in the range of EUR 290–310 million (2024: EUR 275.5 million) and EBITA will increase and be in the range of EUR 9–11 million (2024: EUR 8.8 million). Justifications: The company's guidance is based on the order b
Slide 19: The future is built today
THE FUTURE IS BUILT TODAY
Slide 20: Kreate's shareholders on 31 March 2025
KREATE’S SHAREHOLDERS ON 31 MARCH 2025 SHAREHOLDERS BY SECTOR Shareholder Shares % of shares 1 Harjavalta Oy 1 783 689 19,85 2 Tirinom Oy 1 000 000 11,13 Public org. 3 Ilmarinen Mutual Pension Insurance Company 425 000 4,73 12,7 % 4 Valtonen Seppo Timo Johannes 407 752 4,54 International 0,4 % 5 Var