Kreate Group Plc · OMXHEX:KREATE

Kreate — Q3 2021 Earnings Presentation

19 slides from Kreate's earnings presentation, Oct 27, 2021

  1. Slide 1: Strong growth in the order backlog – Q3 revenue and operating profit grew

    STRONG GROWTH IN THE ORDER BACKLOG – Q3 REVENUE AND OPERATING PROFIT GREW HIGHER THAN THE REFERENCE PERIOD TIMO VIKSTRÖM, PRESIDENT & CEO ANTTI HEINOLA, CFO 27 OCTOBER 2021 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 1 – 9 / 2 0 2 1

  2. Slide 2: January–September 2021 in brief

    JANUARY–SEPTEMBER 2021 IN BRIEF 1. 3. 5. Order backlog amounted to EBITDA was Free cash flow from operating EUR EUR10.1(10.9) million, activities was EUR -3.8 (+2.4) 202.8 (149.0) million amounting to 6.3% (6.3%) million of revenue Revenue was EUR EBITA was 7.5 (8.2) The order backlog grew high as 1

  3. Slide 3: Kreate's markets continued to develop favourably

    KREATE’S MARKETS CONTINUED TO DEVELOP FAVOURABLY BUSINESS FUNCTIONS MARKET SHARE OF KREATE’S KREATE’S POSITION AND MEASURES DEVELOPMENT BUSINESS* Q3/2021 * STRUCTURAL ENGINEERING Revenue decreased in Structural engineering due to the record-strong reference period. Tendering continued on Bridge cons

  4. Slide 4: Strong performance on the improved market

    STRONG PERFORMANCE ON THE IMPROVED MARKET  On the railway market, the tendering for smaller projects was on a good level. Investments in railway project competence and railway equipment continued. Kreate aims to be heavily involved in the growing construction of railways and light rail lines.  Kre

  5. Slide 5: Highlights of July–September 2021

    HIGHLIGHTS OF JULY–SEPTEMBER 2021 Kreate Group’s joint venture KFS Finland acquired NordPile Oy in order to The “Veturitie ja Ratapihakorttelit” project strengthen its position in special is executed as a low-emission worksite. foundation construction. For example, in order to cut carbon emissions g

  6. Slide 6: Injury frequency

    I N J U RY COMMENTS BY PERSONNEL: F R E Q U E N C Y R AT E 1 – 9 / 2 0 2 1 “I love our team that creates a positive attitude at work. Great 11.8 colleagues make work enjoyable even on tougher days.” (6 accidents) COMPANY CULTURE AND COMPETENCE DEVELOPMENT Based on the results of the personnel survey

  7. Slide 7: The order backlog at the end of September exceeded EUR 200 million

    THE ORDER BACKLOG AT THE END OF SEPTEMBER EXCEEDED EUR 200 MILLION ORDER BACKLOG FROM Q3 2019 TO Q3 2021, EUR MILLION  At the end of September 2021, the order backlog amounted to EUR 202.8 (149.0) million 204 203 200  The expected order backlog profitability remained at the normal level 149  Of t

  8. Slide 8: Revenue EUR 162 million in January–September 2021

    REVENUE EUR 162 MILLION IN JANUARY–SEPTEMBER 2021 REVENUE, EUR MILLION REVENUE DISTRIBUTION 1–9/2021 (1–9/2020) 250 235,3 221,1 Q3 BY BUSINESS FUNCTION BY CLIENT GROUP 200 13 % 161,8 (30%) 41 % 150 (32%) 37 % -5% 65,4 +8% 70,6 (38%) 68,5 100 59 % (68%) 50 % 50 (32%) Structural engineering Cities and

  9. Slide 9: Project profitability remained at the normal level

    PROJECT PROFITABILITY REMAINED AT THE NORMAL LEVEL EBITA (EUR MILLION)  In July–September, EBITA was EUR 4.1 (4.0) million 12,0 11,7 10,5 Q3  In January–September, EBITA was EUR 7.5 10,0 (8.2) million  The Group’s profitability was supported by the 8,0 7,5 flexible cost structure and projects pro

  10. Slide 10: Financial report

    FINANCIAL REPORT ANTTI HEINOLA, CFO 10

  11. Slide 11: Key figures: January–September 2021

    KEY FIGURES: JANUARY–SEPTEMBER 2021 EUR million 7–9/2021 7–9/2020 1–9/2021 1–9/2020 1–12/2020 Order backlog 202.8 149.0 134.9 Revenue 70.6 65.4 161.8 173.3 235.3 EBITDA 5.1 4.9 10.1 10.9 14.0 EBITDA, % 7.2 7.5 6.3 6.3 6.0 EBITA 4.1 4.0 7.5 8.2 10.5 EBITA, % 5.8 6.1 4.6 4.7 4.5 Operating profit 4.1 3

  12. Slide 12: Normal seasonality had an effect on working capital

    NORMAL SEASONALITY HAD AN EFFECT ON WORKING CAPITAL FREE CASH FLOW FROM OPERATING ACTIVITIES, EUR MILLION 15,0 14,5  In January–September 2021, free cash flow from 9,7 operating activities was EUR –3.8 (9.7) million, of 9,0 which cash flow from investing activities 3,0 5,0 -0,2 amounted to EUR 3.5

  13. Slide 13: Interest-bearing net debt and equity ratio

    INTEREST-BEARING NET DEBT AND EQUITY RATIO INTEREST-BEARING NET DEBT (EUR MILLION) AND EQUITY RATIO (%)  Kreate’s interest-bearing net debt on 30 40 38,7 % 40,0 % September 2021 was EUR 28.1 (16.5 on 30 September 2020) million 35 33,6 % 32,3 % 35,0 %  Equity ratio at the end of Q3 was 32.3% (38.7%

  14. Slide 14: Interest-bearing debt – maturity and average interest

    INTEREST-BEARING DEBT – MATURITY AND AVERAGE INTEREST LOAN PORTFOLIO ON 30 SEPTEMBER 2021 REPAYMENT SCHEDULE FOR INTEREST-BEARING DEBT ON 30 SEPTEMBER 2021, EUR MILLION 0,2 30 25 22,3 20 Average interest of interest-bearing debt, excluding lease liabilities recognised on the balance sheet 15 2.8% 10

  15. Slide 15: Outlook for 2021 (remains unchanged)

    OUTLOOK FOR 2021 (REMAINS UNCHANGED) Kreate estimates that the company’s revenue (2020: EUR 235.3 million) will decrease in 2021 compared to 2020. On 31 Dec 2020, Kreate’s order backlog amounted to EUR 134.9 million (31 Dec 2019: EUR 177.2 million). Of this sum, approximately EUR 111 million are exp

  16. Slide 16: The future is built today

    THE FUTURE IS BUILT TODAY

  17. Slide 17: A clear strategy with a view to continued profitable growth

    A CLEAR STRATEGY WITH A VIEW TO CONTINUED PROFITABLE GROWTH A PROFITABLE GROWTH COMPANY WITH AN ENTREPRENEURIAL MINDSET EXECUTES THE MOST DEMANDING INFRASTRUCTURE PROJECTS AND OFFERS THE MOST INTERESTING WORKING COMMUNITY IN THE BUSINESS AS WELL AS OPPORTUNITIES FOR DEVELOPMENT. EXPANDING AND SUPPOR

  18. Slide 18: Kreate's long-term goals

    KREATE’S LONG-TERM GOALS G R O WT H PR O F ITA BILIT Y D EB T TO EQ U IT Y R AT IO Growing the revenue EBITA margin Net debt/EBITDA to EUR 300 million > 5% < 2.0 by 2024 in the medium term through a balanced combination of organic growth and selected acquisitions K R EAT E’S The aim is to distribute

  19. Slide 19: Kreate's shareholders on 30 September 2021

    Shareholder Shares % of shares 1. Harjavalta Oy 1,738,689 19.35 2. Tirinom Oy 1,000,000 11.13 KREATE’S SHAREHOLDERS ON 3. Ilmarinen Mutual Pension Insurance Company 425,000 4.73 30 SEPTEMBER 2021 4. Valtonen Seppo Timo Johannes 412,101 4.59 5. Varma Mutual Pension Insurance Company 359,000 4.00 SHAR

Kreate Group — Q3 2021 Earnings Presentation on 6ix