Slide 1: Eltel AB Q3 2024 presentation
Eltel AB Q3 2024 presentation 31 October 2024 1
Slide 2: Today's presenters
Today’s presenters Håkan Dahlström Tarja Leikas Alexandra Kärnlund President and CEO CFO Communications Director 2
Slide 3: Financial highlights Q3 2024
Financial highlights Q3 2024 M€ M€ 9 9 Solid growth and best quartal adjusted EBITA driven by 6 6 Finland and Sweden 3 3 0 0 • Net sales EUR 210.3 million (213.4) -3 -3 • Organic growth, and organic growth in segments, was 4.0% -6 -6 Q3 Q4 Q1 Q2 Q3 • Improved gross profit to EUR 24 million (22.3) 23
Slide 4: Other highlights Q3 2024
Other highlights Q3 2024 • Eltel Finland and Helen Electricity Network Ltd signed a five-year agreement with an estimated value of EUR 50 million • Eltel Sweden and the Swedish Armed Forces signed a third framework agreement, with an estimated value of EUR 35 millions for the contract period (2+5 yr
Slide 5: Total Group
Total Group Net sales Net sales change by Net sales July-September 2024 Adjusted EBITA July-September 2024 M€ M€ M€ segment • Organic net sales growth2) 4% mainly from • Adjusted EBITA improved 39% to EUR 8.2 million 250 860 230 Sweden and Finland (5.9) 210 850 225 -3.9 9.4 -2.0 220 • High Voltage P
Slide 6: Finland
Finland M€ Net sales M€ 110 370 90 350 Net sales July-September 2024 Adjusted EBITA July – September 2024 • 4.9 % growth • Significant profitability improvement (+52%) 70 330 • Growth engine FTTH (fiber-to-the-home) • Efficiency improvements and higher volumes in 50 310 Communication • Power distrib
Slide 7: Sweden
Sweden M€ Net sales M€ 65 230 Net sales July – September 2024 Adjusted EBITA July – September 2024 50 210 • Strong quartal growth, 19.2% in local currency • Major profitability improvement • Customer base expansion paying off • Margin improved from 0.4% to 4.2% 35 190 • The industry sectors, public
Slide 8: Norway
Norway M€ Net sales M€ 50 250 40 200 Net sales July – September 2024 Adjusted EBITA July – September 2024 30 150 • Net sales decreased 10% in local currency • Adjusted EBITA decreased by EUR 1.4 million • Lower customer investments in Communication • Declining volumes decreased profitability 20 100
Slide 9: Denmark
Denmark M€ Net sales M€ 30 100 Net sales July – September 2024 Adjusted EBITA July – September 2024 25 90 • Net sales decreased 9.0% • A success in defending the profitability margin • Decline in Communication • Stable, healthy level profitability 20 80 • Decline partially due to previous quarter su
Slide 10: Other business
Other business M€ Net sales M€ 30 120 Net sales July – September 2024 Adjusted EBITA July – September 2024 20 80 • Net sales decline or EUR 11.6 million was • Adjusted EBITA improved by EUR 0.2 million mainly due to High Voltage Poland divestment • In High Voltage Poland adjusted EBITA was 10 40 (in
Slide 11: Group balance sheet
Group balance sheet Leverage Net debt Net working capital M€ M€ 6 150 0 5 120 -10 4 -20 90 3 -30 60 2 -40 1 30 -50 0 0 -60 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 23 23 24 24 24 23 23 24 24 24 23 23 24 24 24 IFRS 16 leasing liabilities Leverage Net debt excluding leasing liabilities NWC Leverag
Slide 12: Eltel Group financial targets
Eltel Group financial targets 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 12
Slide 13: 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 14: Progress in strategy execution
Progress in strategy execution Pipeline Improved profitability and financial position 50% • Gross profit YTD 26% improvement • Adjusted EBITA improved in all segments but Norway 50% • Five consecutive quarters with YoY adjusted EBITA improvement Signed contracts during Q3 2024 • LTM Cash flow improv
Slide 15: Establishing Eltel as a turnkey provider for BESS
Establishing Eltel as a turnkey provider for BESS Market • The need of energy storage solutions has been increased during the last years • Main drivers are: • Share of renewable energy is increasing • Balancing the national grid - frequency reserve markets • Peak shaving of capacity peaks in industr
Slide 16: Establishing Eltel as a turnkey provider for BESS
Establishing Eltel as a turnkey provider for BESS Eltel as the EPC contractor Eltel is taking the role as the turnkey solution provider – or EPC contractor – including the battery hardware and full project delivery, from design and plan to commissioning Business taking off and Denmark is paving the
Slide 17: Questions
Questions Next report Q4 2024: 14 February 2025 17