Eltel Ab · OMXSTO:ELTEL
Eltel Ab — Q3 2023 Earnings Presentation
18 slides from Eltel Ab's earnings presentation, Nov 2, 2023
Slide 1: Eltel AB Q3 2023 presentation
Eltel AB Q3 2023 presentation 2 November 2023
Slide 2: Today's presenters
Today’s presenters Håkan Dahlström Tarja Leikas Elin Otter President and CEO CFO Director, Communications and Investor Relations 2
Slide 3: Highlights Q3 2023
Highlights Q3 2023 • Net sales was EUR 213.4 million (207.0). Total growth 3.1% ‒ Growth in local currency 8.3% (7.1) in segments and 6.8% (7.7) for the Group. o Growth driven by Finland, Denmark and Sweden • Adjusted EBITA was EUR 5.9 million (4.1) ‒ Adjusted EBITA margin in segments 3.5% (3.6) and
Slide 4: Maintained demand for our services
Maintained demand for our services Order backlog New commercial terms, EUR million / Growth % impact on portfolio 2022 2023 2024 2025 • Value of contracts signed, EUR 171 million (406) 600 -6% +30% 16% 44% 73% • Enhanced focus on commercial development 500 • New commercial terms since Q3 2022 400 –
Slide 5: Cost savings programs
Cost savings programs Q1 2023 Q3 2023 The cost savings program was The cost savings program was completed with a restructuring completed with a restructuring • EUR 7.1 million restructuring charge of EUR 6.1 million charge of EUR 0.9 million charge • Estimated savings of EUR 10 • Estimated savings o
Slide 6: Margin improvements
Margin improvements Net sales Main drivers behind Q3 result: Cost of sales Delayed and incomplete cost compensation • New commercial terms Q3 ‘22 leading to margin squeeze • Initial renegotiations to add index / obtain fuel price • Change of scope in Poland Q3 ‘22 compensation / raise prices in exis
Slide 7: New business and sustainability
New business and sustainability • Electrification and digitalization drives new business within green Signed contracts 3% transition • Sustainability more visible in the customer dialogue Jan-Sep 2023 • Accelerates the development and 97% implementation of our offering, primarily in: Classic busines
Slide 8: Total Group January–September 2023
Total Group January–September 2023 Jul-Sep Jul-Sep Jan-Sep Jan-Sep Jan-Dec EUR million 2023 2022 2023 2022 2022 M€ Net sales M€ 250 850 Net sales 213.4 207.0 609.9 599.6 823.6 210 840 Net sales growth, % 3.1% 6.8% 1.7% 2.3% 1.4% 170 830 Adjusted EBITA 130 820 5.9 4.1 -1.1 2.1 -1.9 Adjusted EBITA mar
Slide 9: Finland January–September 2023
Finland January–September 2023 Jul-Sep Jul-Sep Jan-Sep Jan-Sep Jan-Dec EUR million 2023 2022 2023 2022 2022 M€ Net sales M€ 110 350 Net sales 96.6 79.1 246.2 209.8 290.1 Net sales growth, % 22.2% 1.5% 17.3% -4.0% -3.2% 90 70 310 Adjusted EBITA 4.8 4.9 3.3 9.4 8.2 50 Adjusted EBITA, margin, % 5.0% 6.
Slide 10: Sweden January–September 2023
Sweden January–September 2023 Jul-Sep Jul-Sep Jan-Sep Jan-Sep Jan-Dec EUR million 2023 2022 2023 2022 2022 M€ Net sales M€ 65 230 Net sales 42.2 44.0 141.9 137.3 193.8 Net sales growth, % -4.0% 9.6% 3.4% 9.1% 6.4% 50 210 Adjusted EBITA 0.2 0.0 1.6 -2.2 -1.0 35 190 Adjusted EBITA, margin, % 0.4% 0.0%
Slide 11: Norway January–September 2023
Norway January–September 2023 Jul-Sep Jul-Sep Jan-Sep Jan-Sep Jan-Dec EUR million 2023 2022 2023 2022 2022 M€ Net sales M€ 50 250 Net sales 31.6 44.3 96.3 132.5 176.8 40 200 Net sales growth, % -28.6% 15.8% -27.3% 16.0% 10.2% 30 150 20 100 Adjusted EBITA 0.7 1.6 -1.7 4.4 2.1 Adjusted EBITA, margin,
Slide 12: Denmark January–September 2023
Denmark January–September 2023 Jul-Sep Jul-Sep Jan-Sep Jan-Sep Jan-Dec M€ Net sales M€ EUR million 2023 2022 2023 2022 2022 25 90 Net sales 21.6 17.8 64.9 53.4 74.3 Net sales growth, % 21.7% -0.5% 21.5% -22.2% -15.5% 20 80 Adjusted EBITA 1.1 0.1 3.6 0.2 0.6 15 70 Adjusted EBITA, margin, % 5.2% 0.7%
Slide 13: Other business January–September 2023
Other business January–September 2023 Jul-Sep Jul-Sep Jan-Sep Jan-Sep Jan-Dec M€ Net sales M€ EUR million 2023 2022 2023 2022 2022 30 130 Net sales 23.8 24.6 66.8 73.8 99.4 25 100 Adjusted EBITA 0.3 -1.8 -1.5 -4.2 -4.0 Number of employees, average 977 1 078 1 004 1 075 1 071 20 70 Other business inc
Slide 14: Group balance sheet
Group balance sheet Leverage Net debt M€ Net working capital M€ 7 180 30 6 150 20 5 120 10 4 90 0 3 60 -10 2 1 30 -20 0 0 -30 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 22 22 23 23 23 22 22 23 23 23 22 22 23 23 23 IFRS 16 leasing liabilities Leverage Net debt excluding leasing liabilities NWC Leve
Slide 15: 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 15
Slide 16: Our strategy in short
Our strategy in short 2023‒2025 • 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 marke
Slide 17: Questions
Questions 17
Slide 18: ELTEL
ELTEL