Eltel Ab · OMXSTO:ELTEL
Eltel Ab — Q3 2022 Earnings Presentation
19 slides from Eltel Ab's earnings presentation, Nov 2, 2022
Slide 1: Eltel AB Q3 2022 presentation
Eltel AB Q3 2022 presentation 2 November 2022
Slide 2: Today's presenters
Today’s presenters Håkan Dahlström Saila Miettinen-Lähde Elin Otter President and CEO CFO Director, Communications and Investor Relations 2
Slide 3: Highlights Q3 2022
Highlights Q3 2022 • Contracts signed with a combined value of EUR 406 million • Net sales increased by 6.8% ‒ In segments, growth adjusted for currency effect was 7.1% • Operative EBITA margin was 2.0% (2.1) ‒ Increased costs and high sick-leave rates ‒ Shortage of materials, resources and subcontr
Slide 4: Major agreements
Major agreements During the reporting period • Finland, Valokuitunen, Communication fibre, EUR 200 million • Finland, Caruna, Power distribution, frame agreement, EUR 75 million • Norway, Telenor, Communication 5G, EUR 36–40 million • Denmark, GlobalConnect, Communication fibre, EUR 47 million After
Slide 5: Inflation
Inflation • Impact is more wide-spread and larger than previously anticipated • Overestimated the degree of compensation in Q2 • It will take time before agreed indexation mechanisms take full effect
Slide 6: Total Group January–September 2022
Total Group January–September 2022 Jul-Sep Jul-Sep Jan-Sep Jan-Sep Jan-Dec EUR million 2022 2021 2022 2021 2021 M€ Net sales M€ 250 1 000 Net sales 207.0 193.8 599.6 586.2 812.6 200 800 Net sales growth, % 6.8% -14.5% 2.3% -17.3% -13.4% 150 600 Operative EBITA 4.1 4.1 2.1 7.8 14.8 100 400 Operative
Slide 7: Finland January–September 2022
Finland January–September 2022 Jul-Sep Jul-Sep Jan-Sep Jan-Sep Jan-Dec EUR million 2022 2021 2022 2021 2021 M€ Net sales M€ 90 360 Net sales 79.1 77.9 209.8 218.4 299.6 75 300 Net sales growth, % 1.5% -3.1% -4.0% 0.5% -0.2% 60 240 45 180 Operative EBITA 4.9 4.8 9.4 8.6 12.7 30 120 Operative EBITA-ma
Slide 8: Sweden January–September 2022
Sweden January–September 2022 Jul-Sep Jul-Sep Jan-Sep Jan-Sep Jan-Dec EUR million 2022 2021 2022 2021 2021 M€ Net sales M€ 60 240 Net sales 44.0 40.2 137.3 125.9 182.2 Net sales growth, % 9.6% -21.0% 9.1% -27.5% -18.8% 40 160 Operative EBITA 0.0 -0.2 -2.2 -2.6 -1.8 20 80 Operative EBITA-margin, % 0.
Slide 9: Norway January–September 2022
Norway January–September 2022 Jul-Sep Jul-Sep Jan-Sep Jan-Sep Jan-Dec EUR million 2022 2021 2022 2021 2021 M€ Net sales M€ 50 200 Net sales 44.3 38.2 132.5 114.2 160.5 40 160 Net sales growth, % 15.8% -9.3% 16.0% -16.0% -9.7% 30 120 Operative EBITA 1.6 2.9 4.4 6.8 9.2 20 80 Operative EBITA-margin, %
Slide 10: Denmark January–September 2022
Denmark January–September 2022 Jul-Sep Jul-Sep Jan-Sep Jan-Sep Jan-Dec EUR million 2022 2021 2022 2021 2021 M€ Net sales M€ 20 120 Net sales 17.8 17.8 53.4 68.6 87.9 Net sales growth, % -0.5% -30.8% -22.2% -22.3% -25.6% 15 90 10 60 Operative EBITA 0.1 0.2 0.2 4.1 4.2 5 30 Operative EBITA-margin, % 0
Slide 11: Other business January–September 2022
Other business January–September 2022 Jul-Sep Jul-Sep Jan-Sep Jan-Sep Jan-Dec EUR million 2022 2021 2022 2021 2021 M€ Net sales M€ 30 120 Net sales 24.6 22.0 73.8 65.0 91.9 25 100 20 80 Operative EBITA -1.8 -2.2 -4.2 -3.6 -1.8 15 60 Number of employees, average 1,078 1,082 1,075 1,135 1,123 10 40 Ot
Slide 12: Group balance sheet
Group balance sheet Leverage Net debt Net working capital M€ 5 200 30 4 160 20 3 120 10 2 80 0 1 40 -10 0 0 -20 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 IFRS 16 leasing liabilities Leverage Net debt excluding leasing liabilities NWC Leverage: Net debt
Slide 13: Our transformation journey
Our transformation journey 2017–2018 2019–2021 2022–2025 House in order Operational Excellence Investing in sustainable profitable growth • Reorganisation to strengthen • Improve profitability • Increasing market share focus on local markets • Prioritise core operational • Innovation and new busines
Slide 14: Eltel Group financial targets by end of 2025
Eltel Group financial targets by end of 2025 Group operative EBITA margin 5% Annual growth in the Nordics from 2022 onwards 2–4% Leverage 1.5–2.5x net debt/EBITDA Dividend payout Subject to leverage target 14
Slide 15: Capitalising on mega trends
Capitalising on mega trends • Strong megatrends are shaping our markets, opening up for new opportunities • The Business Development team will ‒ Develop and implement existing and new Digitalisation Electrification business models and concepts ‒ Integrate sustainability in production and our busines
Slide 16: Finland wind power – A growing market
Finland wind power – A growing market • Wind power is considered crucial for the green transformation. According to WindEurope, the installed wind power capacity is expected to increase by 50% in Europe 2022–2026 • By the end of 2021, Finland had an installed capacity of 3 GW. It is expected to grow
Slide 17: Eltel wind power projects in Finland
Eltel wind power projects in Finland • Eltel Finland has a long experience in wind power projects • Currently involved in 9 projects Eltel Finland’s scope of work • Aiming to take 10% of the addressable market by 2025 Market estimation 2022 2023 2024 2025 New Installed capacity MW 1,000 1,400 1,500
Slide 18: Questions
Questions 18
Slide 19: ELTEL
ELTEL