Slide 1: Eltel AB Q1 2024 presentation
Eltel AB Q1 2024 presentation 26 April 2024 1
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 Q1 2024
Highlights Q1 2024 • Net sales EUR 176.3 million (188.4), segments EUR 159.1 million (167.2) • Total orderbook increased to EUR 1.2 billion • New contracts signed EUR 112.5 million, of which 6% relates to New business • Problematic net sales development in Norway • Adjusted EBITA improved to EUR -4.
Slide 4: Divestment High Voltage Poland
Divestment High Voltage Poland M€ Net sales 60 -21 % Creates value for Eltel and our shareholders 40 • Reduce risks • Minimize complexity associated with large projects in the Polish market 20 • Enable stronger focus on our core markets • Estimated financial impact: 0 • Cash flow effect: EUR -3.75 m
Slide 5: Strong demand for our services
Strong demand for our services Committed order backlog New commercial terms, EUR million / Growth % impact on portfolio • Total order book is EUR 1.2 billion 2022 2023 2024 2025 2026 600 • Accelerated shift of volumes from +14.3% 16% 44% 73% 90% Communication to Power 500 • Continued focus on commer
Slide 6: Total Group
Total Group M€ Net sales M€ M€ Net sales change by segment 250 860 190 188.4 210 850 -1.9 1.0 Net Sales Adjusted EBITA 185 170 840 -6.5 • Net sales decreased by 6.4% to EUR 176.3 • Adjusted EBITA improved to EUR -4.0 million million (-5.5) 130 830 180 -0.7 -4.0 176.3 o In local currency - 5.9% • Pro
Slide 7: Finland
Finland M€ Net sales M€ 110 350 90 330 Net Sales Adjusted EBITA • Net sales decreased by EUR 1.9 million to • Major profitability improvement (EUR 2 million) 70 310 EUR 62.4 million (64.3) to previous year despite a harsh winter 50 290 • Market demand strong in • EBITA margin remained negative -0.5%
Slide 8: Sweden
Sweden M€ Net sales M€ 65 230 Net Sales Adjusted EBITA 50 210 • Net sales increased by 2.1% to EUR 49.8 • Profitability in line with previous year million (48.8) o Adjusted EBITA amounted to EUR 0.5 million (0.5), 35 190 o Growth in local currency was 2.7% margin was 1.0% (1.0) o Growth mainly from
Slide 9: Norway
Norway M€ Net sales M€ 50 250 40 200 Net Sales Adjusted EBITA 30 150 • Net sales decreased by 20.3% to EUR 25.7 • Profitability decline million (32.2) o Adjusted EBITA decreased by EUR 0.1 million to 20 100 o in local currency -16.6% EUR -1.7 million (-1.6), margin was -6.5% (-4.9) 10 50 • Reduced c
Slide 10: Denmark
Denmark M€ Net sales M€ 30 100 Net Sales Adjusted EBITA 25 90 • Net sales decreased as expected due to • Profitability decreased to EUR 0.7 million (1.3), ending of contracts, -3.2%, to EUR 21.1million margin decreased to 3.4% (6.1) 20 80 (21.8) • Phasing of projects and contract endings • Two-year
Slide 11: Other business
Other business M€ Net sales M€ 30 120 Net Sales Adjusted EBITA 20 80 • Net sales decreased by EUR 4.0 million to • Adjusted EBITA improved by EUR 0.5 million to EUR 18.7 million (22.7) EUR -0.5 million (-1.0) 10 40 o Reduced volumes in Lithuania, High Voltage • Successful project closings in High Vo
Slide 12: Group balance sheet
Group balance sheet Leverage Net debt Net working capital M€ M€ 7 180 0 6 150 -10 5 120 -20 4 90 -30 3 60 -40 2 1 30 -50 0 0 -60 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 23 23 23 23 24 23 23 23 23 24 23 23 23 23 24 IFRS 16 leasing liabilities Leverage Net debt excluding leasing liabilities NWC L
Slide 13: 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 13
Slide 14: 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 15: Strategy execution
Strategy execution Pipeline 39% • Improved profitability and financial position • Signed an agreement to divest High Voltage Poland • 40 new customers, both in Classic and New business 61% • Signed contracts to a value of EUR 9.4 million out of total EUR 112.5 million, or 8.4% Signed contracts durin
Slide 16: Questions
Questions Next report Half-year 2024: 25 July 2024 16