Nordisk Bergteknik Ab Class B · OMXSTO:NORB_B
Nordisk Bergteknik Ab Class B — Q2 2024 Earnings Presentation
22 slides from Nordisk Bergteknik Ab Class B's earnings presentation, Aug 14, 2024
Slide 1: Nordisk Bergteknik Q2
August 14, 2024 Nordisk Bergteknik Q2
Slide 2: Table of contents
Table of contents Nordisk Bergteknik at a glance Financial targets and strategy to get there Nordisk Bergteknik at a glance Financial targets and strategy to get there This is Nordisk Bergteknik This is Nordisk Bergteknik Predicted continued growth Caret Right with solid fill Predicted continued gro
Slide 3: This is Nordisk Bergteknik
This is Nordisk Bergteknik Was there a better way of building modern, sustainable SECTORS societies? We believed so. We also considered that a more Infrastructure, energy, real estate, mining consolidated market for rock and foundation solutions was part of the answer. So, in 2016, Nordisk Bergtekni
Slide 4: Leading the market in rock and foundation solutions
Leading the market in rock and foundation solutions 120m 1,216 FOUNDED IN 2016 SEK ADJ. EBIT Q2 2024 LTM # OF EMPLOYEES SEK 3,317m 3.6% 23 SALES Q2 2024 LTM ADJ. EBIT MARGIN Q2 2024 LTM OPERATING SUBSIDIARIES
Slide 5: Areas for our services and solutions
Areas for our services and solutions Rock Rock and concrete Drilling Rock excavation Prospecting, excavation and Excavation of rock, mainly reinforcement reinforcement through blasting Maintenance of rock and concrete constructions Foundation Foundation Piling Sheet piling Ensuring a stable and rein
Slide 6: Attractive business mix
Attractive business mix REVENUE BY SEGMENT, LTM Q2 2024 EBIT PER SEGMENT, LTM Q2 2024 28% 28% 49% Rock Rock Rock Norway Sweden Norway 73% -1% Rock Sweden Foundation Sweden 23% Foundation Sweden
Slide 7: Diversified project portfolio lowers the risk level
Diversified project portfolio lowers the risk level High revenue diversification and few projects with fixed price Few large projects spread Mining and prospect Direct exposure to No. of projects yearly over several years account drilling becoming an construction of new to less than increased part o
Slide 8: Operational synergies lead to attractive offering and barriers to entry
Operational synergies lead to attractive offering and barriers to entry Synergies Barriers to entry • Knowledge sharing • Economies of scale • Flexible resource and machine • Strong market position and allocation track record • Centralised sourcing of raw • Highly experienced employees materials and
Slide 9: Interim Report Q2
Interim Report Q2 We see a number of signs that the worst is now behind us
Slide 10: Financial performance (1/2)
Financial performance (1/2) 920 911 20,0% 907 910 April – June 900 890 • Net sales decreased by 5% and amounted to SEK 858m (907). 880 • Organic growth amounted to -6 (-10)% 870 8,2% 8,2% 858 860 • Adjusted EBIT margin amounted to 5.6 (8.2)%. 5,6% 850 840 830 0,0% Comments Q2 2022 Q2 2023 Q2 2024 •
Slide 11: Financial performance (2/2)
Financial performance (2/2) Financials 108 • Adjusted cash flow from operating activities amounted to SEK 36m (108) during Q2. • Net debt/adjusted EBITDA amounted to 3.6x (2.7), mainly due to lower earnings. 36 • Cash and cash equivalents at the end of the period was SEK 28m (161). • Unused credit a
Slide 12: Performance per segment – Rock Sweden
Performance per segment – Rock Sweden SEKm 500 445 449 422 420 421 406 400 356 344 • Rock Sweden’s external net sales increased with 300 1% and organic growth amounted to -2%. 200 • The EBIT margin is lower than the comparison quarter, but it still remains at a healthy level for 100 the current quar
Slide 13: Performance per segment – Rock Norway
Performance per segment – Rock Norway SEKm 350 292 300 263 250 252 243 250 218 215 • Rock Norway’s external net sales decreased 200 164 with 15%. The organic growth amounted to 150 -14%. 100 • The EBIT margin amounted to 5.5 (6.4)%. 50 0 • We are continuing to restructure and Q3 22 Q4 22 Q1 23 Q2 23
Slide 14: Performance per segment – Foundation Sweden
Performance per segment – Foundation Sweden SEKm 350 292 289 274 300 250 210 224 • The external net sales during the second quarter 182 194 200 172 decreased by 8%. The organic growth amounted 150 to -8%. The current economic situation, with a 100 sharp reduction in housing construction and 50 proje
Slide 15: Sustainable financial outlook
Sustainable financial outlook NET SALES DEVELOPMENT ADJUSTED EBITDA DEVELOPMENT ADJUSTED EBIT DEVELOPMENT -4% 25% -14% 3 526 493 448 SEKm 3 402 3 317 SEKm 485 SEKm 244 25% 173 281 134 120 1 918 16% 145 55 1 008 7,2% 7,0% 14,4% 14,6% 14,5% 5,4% 4,9% 13,7% 13,5% 3,6% 2020 2021 2022 2023 2024 Q2 2020 2
Slide 16: Net debt and leverage
Net debt and leverage DEBT RATIO (NET DEBT/EBITDA) • Net debt amounts to SEK 1,600m (1,480). 3,5 3,6 3,1 3,2 3,2 • Machine loans amounts to SEK 437m and lease liabilities to SEK 2,7 339m. 2,6 2,6 2,5 • Debt ratio (net debt/EBITDA LTM) amounts to 3.6x (2.7). • Cash and cash equivalents amounts to SEK
Slide 17: Performance in the Q2 business climate
Performance in the Q2 business climate • Continued strong demand for our services in infrastructure, mining/prospect drilling, operation and maintenance services as well as material handling services. Current trading • Continued challenging market conditions in housing construction in Q2 which also
Slide 18: Strategy and financial targets
Strategy and financial targets
Slide 19: Predicted continued growth (1/2)
Predicted continued growth (1/2) 3 GEOGRAPHICAL EXPANSION Future • Add additional steps in value chain to offering • Both backward and forward integration is possible 1 4 EXECUTE ON EXPLOIT EXISTING M&A CURRENT PIPELINE CAPABILITIES • Continued M&A journey • Unique collaborations through disciplined
Slide 20: Predicted continued growth (2/2)
Predicted continued growth (2/2) Future Successful operations in a niche market • Limited competition in a niche market with high barriers to entry since operations requires a high level of expertise, specialized 4 EXECUTE ON EXISTING M&A PIPELINE equipment and machine capacity • Additional upside w
Slide 21: Financial targets and dividend policy
Financial targets and dividend policy 40% Dividend 15% policy Growth 7% Profitability <2,5x Capital structure Achieve annual net sales growth of The Group targets an adjusted The net debt in relation to adjusted Nordisk Bergteknik aims to distribute 40 more than 15 percent over a business EBIT-margi
Slide 22: Nordisk Bergteknik
NORDISK BERGTEKNIK