Eltel Ab · OMXSTO:ELTEL
Eltel Ab — Q2 2020 Earnings Presentation
21 slides from Eltel Ab's earnings presentation, July 2020
Slide 1: Eltel AB Investor presentation July 2020
Eltel AB Investor presentation July 2020
Slide 2: Eltel in brief
Eltel in brief Founded in 2001 We develop and maintain transmission, distribution and communication Leading Nordic field service provider networks. Operations throughout the Nordics, Lithuania, Poland and Germany Net sales EUR 1.1 billion, 6,200 employees UN Global Compact signatory since 2014 Liste
Slide 3: Focus on segments
Focus on segments Net sales Q2/2020 Power and Communication 5% 2% 6% The Nordics, Poland and Germany 28 % Finland 13 % Sweden Norway Denmark Germany Grow in line with market, capitalise on trends, Poland improve operational processes, make selective Other countries 20 % acquisitions, increase effici
Slide 4: Eltel’s business – driven by stable customers with long term investment needs
Eltel’s business – driven by stable customers with long term investment needs Segments Drivers Power Regulatory demands Outsourcing Ageing infrastructure Increasing end-customer demands Communication Technical shift 4
Slide 5: Eltel AB Q2 2020 Presentation
Eltel AB Q2 2020 Presentation 23 July 2020
Slide 6: Today’s presenters
Today’s presenters Casimir Lindholm Saila Miettinen-Lähde President and CEO CFO 6
Slide 7: Highlights
Highlights Improved operative EBITA and positive cash flow in Q2 Strong improvement in net working capital Significantly reduced net debt compared to Q2 2019 Completed the divestments of Communication Germany and Swedish business area Aviation & Security Won three major frame agreements
Slide 8: COVID-19 impact
COVID-19 impact Moderate impact in Q2: – Lower volumes and slowed down activity in High Voltage – Cross border workforce affected by travel restrictions COVID-19 will impact Eltel in the second half of 2020: – Indications on reduced and delayed investments from a large customer in the Communicat
Slide 9: Divestments
Divestments Divestments resulted in EUR 38 million in cash proceeds and a positive result of EUR 20 million on Group EBIT – On 30 April 2020, the divestment of the German Communication business was completed. The transaction had a positive cash flow impact of EUR 19.0 million and a positive result
Slide 10: Strong order intake
Strong order intake Major frame agreements signed during the reporting period Month Tender value Customer Valid contract Segment Market Trends: EUR million length* Larger contracts Larger customers April EUR 90 million Helen Electricity Network 2020-2025** Power Finland Concentrated to larger
Slide 11: Termination of three service agreements
Termination of three service agreements (Communication) Termination of three Communication maintenance agreements in Sweden relating to the copper market – Production ends in Q4 2020 In 2019, combined net sales was about EUR 40 million – Declining volumes year-on-year – Difficulties in making th
Slide 12: Large High Voltage and Power Transmission International projects
Large* High Voltage and Power Transmission International projects Project portfolio, EUR 32 million in estimated remaining net sales *High Voltage projects with net sales of more than EUR 10 million and all remaining Power Transmission International projects EUR,EUR, million million Year Year Months
Slide 13: Total Group: Q2 2020
Total Group: Q2 2020 Net sales EUR 245.5 million (276.0), -11.1% Organic growth in Power and Communication* -3.3% Operative EBITA EUR 2.8 million (2.5) Total Group Operative EBITA margin 1.2% (0.9) Operating result (EBIT)** EUR 23.1 million (2.1) Cash flow from operating activities EUR 1
Slide 14: Total Group: January-June 2020
Total Group: January-June 2020 Net sales EUR 482.1 million (527.0), -8.5% Organic growth in Power and Communication* -2.9% Operative EBITA EUR 0.8 million (-0.5) Total Group Operative EBITA margin 0.2% (-0.1) Operating result (EBIT)** EUR 20.8 million (-1.5) Cash flow from operating acti
Slide 15: Net sales segments: Q2 2020
Net sales segments: Q2 2020 Net sales EUR 86.3 million, -8.9% – Strong order backlog in Finland and improved net sales in Denmark – Lower activity, reduction of large volume projects and COVID-19 related delays in High Voltage Power – Lower volumes in Smart Grids, in line with expectations – Conti
Slide 16: Operative EBITA segments: Q2 2020
Operative EBITA segments: Q2 2020 Operative EBITA EUR -4.5 million (2.4) Operative EBITA margin -5.3% (2.5) – Cost overruns and COVID-19 impact in High Voltage Poland and the Norwegian Reisadalen project. Power Lowered and slowed down activity in Poland ‒ Significant additional work in two Finni
Slide 17: Going forward
—_ - Going forward
Slide 18: Focus in 2020
Focus in 2020 Continued operational focus Tender Right people Implementation & execution High customer Production planning satisfaction Training Engaged employees Lower risk and fewer capital-intensive Strategic focus projects Cash generation Strengthen our position as the nr. 1
Slide 19: Our transformation journey
Our transformation journey 2017–2018 2019–2021 >2022 House in order Operational Excellence Investing in sustainable profitable growth • Reorganisation to strengthen • Prioritise core operational • Continued focus on focus on local markets improvements Operational Excellence • Increased focus on • Re
Slide 20: Questions
Questions
Slide 21: ELVEL
ELVEL