Nordisk Bergteknik Ab Class B · OMXSTO:NORB_B
Nordisk Bergteknik Ab Class B — Q1 2024 Earnings Presentation
22 slides from Nordisk Bergteknik Ab Class B's earnings presentation, May 2, 2024
Slide 1: Nordisk Bergteknik Q1
May 2, 2024 Nordisk Bergteknik Q1
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 146m 1,174 FOUNDED IN 2016 SEK ADJ. EBIT Q1 2024 LTM # OF EMPLOYEES SEK 3,366m 4.3% 23 SALES Q1 2024 LTM ADJ. EBIT MARGIN Q1 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 Q1 2024 EBIT PER SEGMENT, LTM Q1 2024 11% 24% 48% Foundation Rock Sweden Rock Norway Sweden 63% Rock 26% Sweden Rock Norway 28% 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 Q1
Interim Report Q1 Strong development within Rock Sweden and positive effects of cost adaptions
Slide 10: Financial performance (1/2)
Financial performance (1/2) 1000 912 20,0% 900 January – March 800 751 700 632 • Net sales decreased by 18% and amounted to SEK 751m (912). 600 500 • Organic growth amounted to -21 (21)% 400 • Adjusted EBIT margin amounted to 3.2 (5.6)%. 300 5,6% 200 3,5% 3,2% 100 0 0,0% Comments Q1 2022 Q1 2023 Q1
Slide 11: Financial performance (2/2)
Financial performance (2/2) Financials 95 • Adjusted cash flow from operating activities amounted to SEK 52m (95) during Q1. • Net debt/adjusted EBITDA amounted to 3.5x 52 (2.6). • Cash and cash equivalents at the end of the period was SEK 80m (240). 13 • Unused credit and overdraft facilities amoun
Slide 12: Performance per segment – Rock Sweden
Performance per segment – Rock Sweden SEKm 500 445 422 420 421 406 400 366 356 344 • Rock Sweden’s external net sales decreased 300 with 3% and organic growth amounted to -12%. 200 • Increased EBIT margin despite decreased volume. 100 0 • The segment has seen an increased number of Q2 22 Q3 22 Q4 22
Slide 13: Performance per segment – Rock Norway
Performance per segment – Rock Norway SEKm 350 292 300 263 240 250 252 243 250 218 • Rock Norway’s external net sales decreased 200 164 with 25%. The organic growth amounted to 150 -22%. 100 • The EBIT margin amounted to -2.0 (-1.0)%. 50 0 • The segment has been negatively affected by Q2 22 Q3 22 Q4
Slide 14: Performance per segment – Foundation Sweden
Performance per segment – Foundation Sweden SEKm 350 305 292 289 274 300 250 210 224 • The external net sales during the first quarter 182 200 172 decreased by 34%. The organic growth 150 amounted to -34%. The current economic 100 situation, with a sharp reduction in housing 50 construction and proj
Slide 15: Sustainable financial outlook
Sustainable financial outlook NET SALES DEVELOPMENT ADJUSTED EBITDA DEVELOPMENT ADJUSTED EBIT DEVELOPMENT -4% 25% -21% 468 3 526 493 SEKm 3 402 3 366 SEKm 485 SEKm 244 25% 173 146 281 134 1 918 16% 145 55 1 008 7,2% 7,0% 14,4% 14,6% 14,5% 5,4% 4,9% 13,7% 13,9% 4,2% 2020 2021 2022 2023 2024 Q1 2020 2
Slide 16: Net debt and leverage
Net debt and leverage DEBT RATIO (NET DEBT/EBITDA) • Net debt amounts to SEK 1,614m (1,389). 3,5 3,4 3,1 3,2 3,2 • Machine loans amounts to 446m and lease liabilities to 363m. 2,6 2,6 2,7 2,5 • Debt ratio (net debt/EBITDA LTM) amounts to 3.5x (2.6). • Cash and cash equivalents amounts to SEK 80m (24
Slide 17: Performance in the Q1 business climate
Performance in the Q1 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 Q1 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