Nordisk Bergteknik Ab Class B · OMXSTO:NORB_B
Nordisk Bergteknik Ab Class B — Q1 2023 Earnings Presentation
23 slides from Nordisk Bergteknik Ab Class B's earnings presentation, May 4, 2023
Slide 1: Nordisk Bergteknik Q1
MAY 4, 2023 Nordisk Bergteknik Q1
Slide 2: Table of contents
Table of contents Nordisk Bergteknik in Q1 2023 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 Interim
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 256m 1 191 FOUNDED IN 2016 SEK ADJ. EBIT Q1 2023 LTM # OF EMPLOYEES SEK 3,682m 7.0% 24 SALES Q1 2023 LTM ADJ. EBIT MARGIN Q1 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, 2022 EBIT PER SEGMENT, 2022 29% 45% 42% 36% Rock Foundation Rock Rock Norway Sweden Sweden Sweden 29% 19% Foundation Rock Sweden Norway
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 over Exposure to construction No of projects yearly several years accounts to less than of new housing ~1 500 10% yearly turnover ~10%
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 Q1
Interim Report Q1 Profitable growth and strong cash conversion
Slide 10: Financial performance (1/2)
Financial performance (1/2) 1000 912 8,0% 900 7,0% January – March 800 6,0% 700 632 • Net sales grew by 44 % to SEK 912m (632) 600 5,0% 500 4,0% • Organic growth corresponded to 21 % (29 %) 400 334 3,5% 3,7% 3,0% • Adjusted EBIT margin increased from 3.5 % to 3.7 % 300 2,1% 2,0% 200 100 1,0% 0 0,0%
Slide 11: Financial performance (2/2)
Financial performance (2/2) Financials • Adjusted cash flow from operating activities amounted to SEK 93m (13) during Q1. 93 • Net debt/adjusted EBITDA amounted to 2.6x (2.5x) • Cash and cash equivalents at the end of the period SEK 240m (303) 38 • Unused credit and overdraft facilities amounts to S
Slide 12: Performance per segment – Rock Sweden
Performance per segment – Rock Sweden SEKm 450 422 420 400 366 344 350 309 • Rock Sweden’s external net sales increased with 300 232 244 250 226 36 % and the segments organic growth 200 amounted to 19 %. 150 100 • The strong organic growth is mainly attributable 50 to continued large investments in
Slide 13: Performance per segment – Rock Norway
Performance per segment – Rock Norway SEKm 300 263 240 250 250 217 218 205 • Rock Norway’s external net sales increased with 200 162 167 6 % and the segments organic growth 150 amounted to 7 %. 100 • EBIT margin decreased to -1.0 (1.0) %. The 50 lower EBIT margin during the quarter is mainly 0 expla
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 200 increased with 132 % and the segments organic 126 118 150 growth amounted to 49 %. The strong organic 96 113 100 growth is primarily explained by continued 50 strong demand and s
Slide 15: Sustainable financial outlook
Sustainable financial outlook NET SALES DEVELOPMENT ADJUSTED EBITDA DEVELOPMENT ADJUSTED EBIT DEVELOPMENT 3 682 526 256 SEKm 3 402 SEKm 493 SEKm 244 281 134 1 918 145 102 43 55 1 008 7,2% 7,0% 7,0% 710 6,0% 5,4% 14,3% 14,4% 14,6% 14,5% 14,3% 2019 2020 2021 2022 2023 Q1 2019 2020 2021 2022 2023 Q1 20
Slide 16: Net debt and leverage
Net debt and leverage DEBT RATIO (NET DEBT/EBITDA) • Net debt amounts to SEK 1,389m (785). 4,1 3,7 • Machine loans amounts to 423m and lease liabilities to 342m. 3,4 3,1 • Debt ratio (net debt/EBITDA LTM) amounts to 2.6x (2.5x) and is 2,5 2,5 2,6 2,6 the same as in Q4 2022 • If EBITDA from acquisiti
Slide 17: Successful acquisitions
Successful acquisitions Acquisitions completed during Q1 2023 Power Mining Oy SEGMENT: Rock Sweden ANNUAL SALES: SEK 160m BENEFIT: Establish a presence in Finland which is a natural steg in our geographical expansion. Increase our offering within underground rock drilling and excavation services.
Slide 18: Performance in the Q1 business climate
Performance in the Q1 business climate • Continued strong organic growth for the Group – high demand from a broad customer base. • Challenging market conditions in housing construction, our exposure is limited and at the same time we Current trading see a high inflow of inquiries to projects in infr
Slide 19: Strategy and financial targets
Strategy and financial targets
Slide 20: 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 21: 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 22: 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 23: Nordisk Bergteknik
NORDISK BERGTEKNIK