Nordisk Bergteknik Ab Class B · OMXSTO:NORB_B
Nordisk Bergteknik Ab Class B — Q2 2022 Earnings Presentation
21 slides from Nordisk Bergteknik Ab Class B's earnings presentation, August 2022
Slide 1: Nordisk Bergteknik at glance
Nordisk Bergteknik at glance August, 2022
Slide 2: Today's Presenters
TODAY’S PRESENTERS ANDREAS JOHAN ODDBJØRN CHRISTOFFERSSON LUNDQVIST RØED CEO CFO Country Manager Norway, Head of Business Segment Rock Norway ● Joined 2010 ● CFO since 2017 ● CEO of Vestfold since 2006 ● CEO since 2016 ● +30 years experience in various ● +24 years of experience from the CFO roles se
Slide 3: A leading player within rock and foundation solutions
INTRODUCTION A LEADING PLAYER WITHIN ROCK AND FOUNDATION SOLUTIONS Nordisk Bergteknik at a glance Attractive business mix Figures refer to 2022 Q2 LTM proforma Revenue by segment, 2021 EBIT per segment, 2021 SEK 2,636m SEK 165m 6.7% 20% Foundation 46% Rock 47% Foundation 32% Rock LTM sales Adj. LTM
Slide 4: Broad offering within rock solutions
INTRODUCTION BROAD OFFERING WITHIN ROCK SOLUTIONS Drilling Rock excavation Rock and concrete reinforcement Drilling for prospecting, excavation and reinforcement Excavation of rock, mainly through blasting Maintenance of rock and concrete constructions Private buyer 25% Public buyer 75% Comments • E
Slide 5: Strong position in the foundations solutions value chain
INTRODUCTION STRONG POSITION IN THE FOUNDATIONS SOLUTIONS VALUE CHAIN Piling Foundation reinforcements Sheet piling Preventing water and soil from entering a Ensuring a stable and reliable foundation Stopping or preventing subsidence of building construction area Private buyer 25% Public buyer 75% C
Slide 6: Attractive offering with operational synergies creating high barriers to entry
ATTRACTIVE OFFERING WITH OPERATIONAL SYNERGIES CREATING HIGH BARRIERS TO ENTRY Synergies Knowledge sharing Rock solutions Flexible resource and machine allocation Foundation solutions DRILLING Centralised sourcing of raw materials PILING Drilling for prospecting, excavation and reinforcement Efficie
Slide 7: Strong underlying demand driven by public investments
STRONG UNDERLYING DEMAND DRIVEN BY PUBLIC INVESTMENTS 1 Investments in transport infrastructure 2 Ageing transport infrastructure • Sweden is expected to increase its budget for rail and road • A significant part of both the Swedish and Norwegian budget is investments to a total of SEK 799bn between
Slide 8: Urbanisation and sustainability drive demand for Nordisk Bergteknik's solutions
URBANISATION AND SUSTAINABILITY DRIVE DEMAND FOR NORDISK BERGTEKNIK’S SOLUTIONS 3 Efforts being taken to urbanise buildings and infrastructure 4 Renewable energy capacity to be expanded • An increasing share of the Swedish and Norwegian population is • Over 50% of global power generation is expected
Slide 9: Sweden is an important miner in the European Union
SWEDEN IS AN IMPORTANT MINER IN THE EUROPEAN UNION 5 Sweden is the European leader in mining iron ore 6 Supply of rock originated material for all purposes • Swedish mines extract a substantial share of the iron, zinc, lead, silver • Crushed bedrock is an attractive commodity used for e.g. roads and
Slide 10: Long-lasting relationship with large customers
LONG-LASTING RELATIONSHIP WITH LARGE CUSTOMERS Diversified customer base Strong relationships with well-known customers Customer groups • Nordisk Bergteknik has long standing relationships, dating back almost 15 years in Construction companies Mining Local entrepreneurs some cases, with well-known c
Slide 11: Interim Report Q2
Interim Report Q2 “Continued strong organic growth within all segments”
Slide 12: Continued strong organic growth in Q2
CONTINUED STRONG ORGANIC GROWTH IN Q2 Comments 9.5% 8.2% 7.0% 6.7% April - June • Net sales grew by 86% to SEK 911m (490) 2,636 • Organic growth corresponded to 25% • Adjusted EBIT margin decreased from 9.5% to 1,918 8.2% during the second quarter Impact from acquisitions 911 • Consolidation of thre
Slide 13: Q2 characterised by growth across all divisions
Q2 CHARACTERISED BY GROWTH ACROSS ALL DIVISIONS Net sales, Q2 2022 EBIT, Q2 2022 Comments • All segments have experienced significant growth 23% during the second quarter. 34% 40% • Rock Sweden’s organic growth of 19 %. Profitability for Q2 has been negatively impacted 54% by sharply increased price
Slide 14: Strong financial profile with healthy growth and sustainable margins
STRONG FINANCIAL PROFILE WITH HEALTHY GROWTH AND SUSTAINABLE MARGINS Net sales development Adjusted EBITDA development Adjusted EBIT development SEKm SEKm SEKm 372 80,0% 2,636 177 70,0% 281 60,0% 134 1,918 50,0% 40,0% 1,008 145 30,0% 55 710 102 23 43 7.0% 510 20,0% 6.0% 6.7% 66 14.3% 14.4% 14.6% 14.
Slide 15: High rate of acquisitions
HIGH RATE OF ACQUISITIONS Acquisitions consolidated during Q2 2022 Consolidation date Annual sales Segment • Infrastructure Group Nordic AB (“IGN”) 30 Apr 2022 SEK 420m Foundation Sweden • The acquisition is Nordisk Bergteknik’s largest to date and means that Nordisk Bergteknik is significantly expa
Slide 16: Recent development
RECENT DEVELOPMENT • Continued strong organic growth for the Group – high demand from a broad range of customers. • Maintained healthy margins despite rising prices for fuel and other inputs during the quarter. • Action taken on transferring the increased costs to the customer and renegotiating inde
Slide 17: Strategy and Financial targets
Strategy and Financial targets
Slide 18: Nordisk Bergteknik is well positioned for further growth
GROWTH STRATEGY NORDISK BERGTEKNIK IS WELL POSITIONED FOR FURTHER GROWTH Comments 4 Successful operations in a niche market Execute on existing M&A • Limited competition in a niche market with high 3 pipeline barriers to entry since operations requires a high level of expertise, specialized equipmen
Slide 19: Attractive M&A pipeline and several ongoing discussions
ATTRACTIVE M&A PIPELINE AND SEVERAL ONGOING DISCUSSIONS PROVIDES OPPORTUNITIES FOR CONTINUED GROWTH Disciplined approach to M&A… …acquiring targets that fit with selected criteria +250 Tangible Margins in line Adding strategic targets Tracking of potential targets Cultural fit synergies with or abov
Slide 20: Financial targets
FINANCIAL TARGETS Achieve annual net sales growth of more than 15 percent over a GROWTH business cycle. The growth should be achieved through a combination 15% of organic growth and acquisitions Annual sales growth PROFITABILITY The Group targets an adjusted EBIT-margin of 7 percent in the medium te
Slide 21: Q & A Session
Q & A Session