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Slide 2: Eltel AB Q2 2024 presentation
Eltel AB Q2 2024 presentation 25 July 2024 2
Slide 3: Today's presenters
Today’s presenters Håkan Dahlström Tarja Leikas Alexandra Kärnlund President and CEO CFO Communications Director 3
Slide 4: Highlights Q2 2024
Highlights Q2 2024 Healthy growth: Group net sales grew by 3.8% and segments by 5.3% • Net sales were EUR 216.0 million (208.1), segments EUR 200.4 million (189.9) • New contracts signed EUR 317 million (164) • Total orderbook increased to EUR 1.3 billion (1.2) • Improved net result Y-o-Y, but decli
Slide 5: Volume shift from Communication to Power
Volume shift from Communication to Power Accelerated shift of volumes from Communication to Power Shift from Communication to Power in Sweden and Denmark Sweden Denmark Increasing customer investments into the green energy transition paves way • High energy prices Jan-Jun Jan-Jun 2023 2023 • Increas
Slide 6: Divestment High Voltage Poland
Divestment High Voltage Poland M€ Net sales 60 Creates value for Eltel and our shareholders 40 • Reduce risks • Minimize complexity associated with large projects in the Polish market 20 • Enable stronger focus on our core markets • Financial impact in Q2 2024: 0 • Cash flow effect: EUR -4.0 million
Slide 7: Total Group
Total Group Net sales M€ M€ Net sales change Net sales Adjusted EBITA 250 860 M€ by segment 220 -2,2 • Growth picking up after slow first quarter • Profitability improvement EUR 2.0 million 210 850 -0,8 3,8 216,0 215 0,0 -0,4 170 840 • Group net sales increased 3.8% (-0.2%) • Finland and Other busin
Slide 8: Finland
Finland M€ Net sales M€ 110 370 Net sales Adjusted EBITA 90 350 • Good net sales growth in Q2: 8.7% • Major EBITA improvement (EUR 1.5 million) 70 330 • Communications market demand strong, • Both Power and Communication improving 50 310 especially FTTH profitability • Growth in Power • Smart Grids
Slide 9: Sweden
Sweden M€ Net sales M€ 65 230 Net sales Adjusted EBITA 50 210 • Net sales growth in local currency 0.4% • Continuous improvement, 8th positive adjusted EBITA quarter • Major volume shift from Communication to 35 190 Power • Volume shift from Communication to Power 20 170 Q3 Q4 Q1 Q2 23 23 24 24 Net
Slide 10: Norway
Norway M€ Net sales M€ 50 250 40 200 Net sales Adjusted EBITA 30 150 • Net sales decline slowed down from • Q2 profitability decline EUR 0.2 the first quarter, now - 2.5% million compared to previous year 20 100 • Communication customer investments • Mitigating actions prevent further profitability
Slide 11: Denmark
Denmark M€ Net sales M€ 30 100 Net sales Adjusted EBITA 25 90 • Q2 net sales growth very fast-paced, 17.9%, • The slight decline in profitability margin due less favorable business mix • Major shift from Communication to Power 20 80 ongoing • New business, Solar PV and energy storage 15 70 business
Slide 12: Other business
Other business M€ Net sales M€ 30 120 Net sales Adjusted EBITA 20 80 • Net sales decreased by EUR 2.2 million • Adjusted EBITA improved by EUR 0.5 million to EUR -0.4 million (-0.9). • HV Poland divestment completed in June 10 40 • The heavy flooding in South Germany has negative impact on profitabi
Slide 13: Group balance sheet
Group balance sheet Leverage M€ Net debt M€ Net working capital 7 180 0 6 150 -10 5 120 -20 4 90 -30 3 60 -40 2 1 30 -50 0 0 -60 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 23 23 23 24 24 23 23 23 24 24 23 23 23 24 24 IFRS 16 leasing liabilities Leverage Net debt excluding leasing liabilities NWC L
Slide 14: Eltel Group financial targets by end of 2025
Eltel Group financial targets by end of 2025 Profitability • Group adjusted EBITA margin 5% Growth • Annual growth 2–4% Leverage • 1.5–2.5x net debt/adjusted EBITDA Dividend payout • Subject to leverage target 14
Slide 15: Our strategy in short
Our strategy in short • Improve efficiency and profitability of the current • Integrate sustainability as part of our offerings and business, including price increases operations • Broaden the customer base • Develop our concepts and commercial capabilities • Grow in new and adjacent markets, such a
Slide 16: Progress in strategy execution
Progress in strategy execution Pipeline Improved profitability and financial position 40% • Gross profit YTD 40% improvement • Adjusted EBITA improved in all segments but Norway 60% • LTM Cash flow improved in all segments Signed contracts during Q2 2024 Broadened customer base 5% • Total orderbook
Slide 17: Progress in strategy execution
Progress in strategy execution New commercial terms, impact on portfolio 2022 2023 2024 2025 2026 Integrated sustainability as part of our offerings and operations 16% 44% 73% 90% • Increased collaboration with customers • Own electrical vehicles increased to 11% of total fleet (compared to 2% in 20
Slide 18: Questions
Questions Next report Q3 2024: 31 October 2024 18