Kreate Group Plc · OMXHEX:KREATE
Kreate — FY2021 Earnings Presentation
20 slides from Kreate's earnings presentation, Jan 26, 2022
Slide 1: High order backlog – with strong revenue and operating profit
HIGH ORDER BACKLOG – WITH STRONG REVENUE AND OPERATING PROFIT TIMO VIKSTRÖM, PRESIDENT & CEO MIKKO LAINE, CFO 26 JAN 2022 K R E AT E G R O U P P L C / F I N A N C I A L S TAT E M E N T S F O R 2 0 2 1
Slide 2: 2021 in brief
2021 IN BRIEF 1. 3. 5. Order backlog amounted to EBITDA was EUR 14.2 Free cash flow from operating EUR 202.8 (134.9) million (14.0) million, amounting to activities was EUR 4.0 (+9.7) 6.0% (6.0%) of revenue million Revenue was EUR EBITA was EUR 10.5 Due to the project contracts acquired 237.6 (235.3
Slide 3: Kreate's markets continued to develop favourably
KREATE’S MARKETS CONTINUED TO DEVELOP FAVOURABLY BUSINESS FUNCTIONS MARKET SHARE OF KREATE’S KREATE’S POSITION AND MEASURES DEVELOPMENT REVENUE* Q4/2021 AND 12-MO OUTLOOK* STRUCTURAL ENGINEERING In Structural engineering, revenue decreased due to the 58% record-strong reference period. In Q4, tender
Slide 4: Further strengthening the company's position in demanding projects
FURTHER STRENGTHENING THE COMPANY’S POSITION IN DEMANDING PROJECTS ▪ 2021 was a successful year: we acquired the strategically important projects that we estimated would strengthen our competitiveness either due to their technical demands or purchasing model. ▪ Significant megaprojects provide conti
Slide 5: Highlights of October–December 2021
HIGHLIGHTS OF OCTOBER–DECEMBER 2021 We started the foundation and concrete In the Kulttuurikasarmi project, we are The Hanko overpass was finished and construction work of the Laituri building in responsible for the foundation and opened for traffic four months ahead of Katajanokka, Helsinki that wi
Slide 6: Injury frequency and personnel
I N J U RY F R E Q U E N C Y R AT E 2 0 2 1 8.9 (6 accidents) PERSONNEL COMMENTS BY PERSONNEL: ON AVERAGE “Interesting and demanding projects feel motivating.” 407 392 376 “Kreate has a good reputation as a company and 319 employer. I want to be part of contributing to and improving this reputation.
Slide 7: Strong order backlog for 2022
STRONG ORDER BACKLOG FOR 2022 ORDER BACKLOG Q4/2019 – Q4/2021, EUR MILLION ▪ At the end of December 2021, the order backlog amounted to EUR 202.8 (134.9) million 200 ▪ Of the order backlog at the end of 2021, approximately EUR 137 million are expected to be realised during 2022 (31 Dec 2020: EUR 111
Slide 8: The strong growth of revenue continued in Q4/2021
THE STRONG GROWTH OF REVENUE CONTINUED IN Q4/2021 REVENUE, EUR MILLION REVENUE DISTRIBUTION IN 2021 (2020) 250 235.3 237.6 221.1 Q4 +22% BY BUSINESS FUNCTION BY CLIENT GROUP -14% 62.0 200 75.8 72.1 16 % (29%) 150 42 % 65.4 (35%) 37 % 70.6 (35%) 68.5 100 58 % (65%) 50 47 % (36%) Structural engineerin
Slide 9: Project profitability remained at the normal level
PROJECT PROFITABILITY REMAINED AT THE NORMAL LEVEL EBITA (EUR MILLION) ▪ In October–December 2021, EBITA clearly grew compared to the reference period, 15.0 amounting to EUR 3.1 (2.3) million Q4 ▪ EBITA for the whole year was at the previous 12.0 11.7 10.5 10.5 year’s level, amounting to EUR 10.5 (1
Slide 10: Financial report
FINANCIAL REPORT MIKKO LAINE, CFO 10
Slide 11: Key figures: January–December 2021
KEY FIGURES: JANUARY–DECEMBER 2021 EUR million 10–12/2021 10–12/2020 1–12/2021 1–12/2020 Order backlog 202.8 134.9 Revenue 75.8 62.0 237.6 235.3 EBITDA 4.1 3.1 14.2 14.0 EBITDA, % 5.4 5.0 6.0 6.0 EBITA 3.1 2.3 10.5 10.5 EBITA, % 4.1 3.8 4.4 4.5 Operating profit 3.0 2.3 10.4 10.4 Operating profit, %
Slide 12: Working capital was at the normal level at the end of the year
WORKING CAPITAL WAS AT THE NORMAL LEVEL AT THE END OF THE YEAR FREE CASH FLOW FROM OPERATING ACTIVITIES, EUR MILLION 18.0 Q1-Q3 Q4 14.5 ▪ Free cash flow from operating activities in 2021 12.0 9.7 was EUR 4.0 (9.7) million, of which net 12.4 investments amounted to EUR -4.9 (-4.6) million 6.0 7.2 4.0
Slide 13: Interest-bearing net debt and equity ratio
INTEREST-BEARING NET DEBT AND EQUITY RATIO INTEREST-BEARING NET DEBT (EUR MILLION) AND EQUITY RATIO (%) ▪ Kreate’s interest-bearing net debt on 31 40 38.6 % 40.0 % December 2021 was EUR 20.9 (27.9 on 31 December 2020) million 34.5 % 35 35.0 % ▪ The net debt to EBITDA ratio fell below the 30 26.3 % 3
Slide 14: Interest-bearing debt – maturity and average interest
INTEREST-BEARING DEBT – MATURITY AND AVERAGE INTEREST LOAN PORTFOLIO REPAYMENT SCHEDULE FOR INTEREST-BEARING ON 31 DECEMBER 2021 DEBT ON 31 DECEMBER 2021, EUR MILLION 0.0 30 25 22.3 20 Average interest of interest- bearing debt, 15 excluding lease liabilities recognised on the balance sheet 2.8% 10
Slide 15: Outlook for 2022
OUTLOOK FOR 2022 Kreate estimates that the company revenue (2021: EUR 237.6 million) and EBITA (2021: EUR 10.5 million) will grow compared to 2021. Justifications: Kreate’s strong order backlog and specialisation in demanding construction as well as the stable infrastructure construction market supp
Slide 16: Proposal for profit distribution
PROPOSAL FOR PROFIT DISTRIBUTION The parent company Kreate Group Plc’s distributable funds amounted to EUR 30,289,500.36 on 31 December 2021. The Board of Directors proposes to the general meeting on 29 March 2022 that, based on the balance sheet verified for 2021, a dividend of EUR 0.45 be issued p
Slide 17: The future is built today
THE FUTURE IS BUILT TODAY
Slide 18: A clear strategy with a view to continued profitable growth
A CLEAR STRATEGY WITH A VIEW TO CONTINUED PROFITABLE GROWTH A PROFITABLE GROWTH COMPANY WITH AN ENTREPRENEURIAL MINDSET EXECUTES THE MOST DEMANDING INFRASTRUCTURE PROJECTS AND OFFERS THE MOST INTERESTING WORKING COMMUNITY IN THE BUSINESS AS WELL AS OPPORTUNITIES FOR DEVELOPMENT. EXPANDING AND SUPPOR
Slide 19: Kreate's long-term goals
KREATE’S LONG-TERM GOALS G R O WT H PR O F ITA BILIT Y D EB T TO EQ U IT Y R AT IO Growing the revenue EBITA margin Net debt/EBITDA to EUR 300 million > 5% < 2.0 by 2024 in the medium term through a balanced combination of organic growth and selected acquisitions K R EAT E’S The aim is to distribute
Slide 20: Kreate's shareholders on 31 December 2021
Shareholder Shares % of shares 1. Harjavalta Oy 1,738,689 19.35 2. Tirinom Oy 1,000,000 11.13 KREATE’S SHAREHOLDERS ON 3. Ilmarinen Mutual Pension Insurance Company 425,000 4.73 31 DECEMBER 2021 4. Valtonen Seppo Timo Johannes 412,101 4.59 5. Varma Mutual Pension Insurance Company 359,000 4.00 SHARE