Nordisk Bergteknik Ab Class B · OMXSTO:NORB_B
Nordisk Bergteknik Ab Class B — Q3 2024 Earnings Presentation
22 slides from Nordisk Bergteknik Ab Class B's earnings presentation, Nov 4, 2024
Slide 1: Nordisk Bergteknik Q3
November 4, 2024 Nordisk Bergteknik Q3
Slide 2: Table of contents
Table of contents Nordisk Bergteknik at a glance Financial targets and strategy to get there This is Nordisk Bergteknik Predicted continued growth Diversified project portfolio to lower risks Financial targets and dividend policy Operational synergies lead to attractive offering and high entry barri
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 119m 1,207 FOUNDED IN 2016 SEK ADJ. EBIT Q3 2024 LTM # OF EMPLOYEES SEK 3,296m 3.6% 23 SALES Q3 2024 LTM ADJ. EBIT MARGIN Q3 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 Q3 2024 EBIT PER SEGMENT, LTM Q3 2024 26% 14% 50% Rock Rock Rock Norway Sweden Norway 82% 4% Rock Sweden Foundation Sweden 24% 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 Q3
Interim Report Q3 A competitive offer in a market with large demand over time
Slide 10: Financial performance (1/2)
Financial performance (1/2) 900 885 20,0% 880 July – September 860 • Net sales decreased by 3% and amounted to SEK 799m (820). 840 820 820 • Organic growth amounted to -2 (-15)%. 799 800 7,8% • Adjusted EBIT margin amounted to 2.1 (2.1)%. 780 760 2,1% 2,1% 740 0,0% Comments Q3 2022 Q3 2023 Q3 2024 •
Slide 11: Financial performance (2/2)
Financial performance (2/2) Financials 72 • Adjusted cash flow from operating activities 64 amounted to SEK 64m (-93) during Q3. • Net debt/adjusted EBITDA amounted to 3.6x Q3 2023 (3.2), mainly due to lower earnings. Q3 2022 Q3 2024 • Cash and cash equivalents at the end of the period was SEK 13m (
Slide 12: Performance per segment – Rock Sweden
Performance per segment – Rock Sweden SEKm 500 445 449 422 420 421 406 379 400 356 • Rock Sweden’s external net sales increased with 300 6% and organic growth amounted to 4%. 200 • The segment experienced a stronger market during the quarter, which led to more large 100 projects, above all in infras
Slide 13: Performance per segment – Rock Norway
Performance per segment – Rock Norway SEKm 350 292 300 263 252 243 250 218 231 215 • Rock Norway’s external net sales decreased 200 with 21% and organic growth amounted to - 164 150 18%, primarily attributable to fewer large 100 projects and project starts compared to the 50 previous year as well as
Slide 14: Performance per segment – Foundation Sweden
Performance per segment – Foundation Sweden SEKm 350 289 300 274 250 210 224 • The external net sales during the third quarter 172 182 194 189 200 increased from SEK 172 to 189 million. Despite 150 the challenging market with continued very low 100 house construction, which continues to 50 negativel
Slide 15: Sustainable financial outlook
Sustainable financial outlook NET SALES DEVELOPMENT ADJUSTED EBITDA DEVELOPMENT ADJUSTED EBIT DEVELOPMENT -4% 25% -10% 3 526 493 443 SEKm 3 402 3 296 SEKm 485 SEKm 244 25% 173 281 134 119 1 918 16% 145 55 1 008 7,2% 7,0% 14,4% 14,6% 14,5% 5,4% 4,9% 13,7% 13,4% 3,6% 2020 2021 2022 2023 2024 Q3 2020 2
Slide 16: Net debt and leverage
Net debt and leverage DEBT RATIO (NET DEBT/EBITDA) • Net debt amounts to SEK 1,578m (1,674). 3,5 3,6 3,6 3,2 3,2 • Machine loans amounts to SEK 434m and lease liabilities to SEK 2,7 320m. 2,6 2,6 2,5 • Debt ratio (net debt/EBITDA LTM) amounts to 3.6x (3.2). • Cash and cash equivalents amounts to SEK
Slide 17: Performance in the Q3 business climate
Performance in the Q3 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 Q3 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