Nordisk Bergteknik Ab Class B · OMXSTO:NORB_B
Nordisk Bergteknik Ab Class B — Q3 2023 Earnings Presentation
22 slides from Nordisk Bergteknik Ab Class B's earnings presentation, Nov 2, 2023
Slide 1: Nordisk Bergteknik Q3
NOVEMBER 2, 2023 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 Four main financial targets Operational synergies lead to attractive offering and high entry barriers Interi
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 221m 1,212 FOUNDED IN 2016 SEK ADJ. EBIT Q3 2023 LTM # OF EMPLOYEES SEK 3,611m 6.1% 23 SALES Q3 2023 LTM ADJ. EBIT MARGIN Q3 2023 LTM OPERATING SUBSIDIARIES Figures refer to 2023 Q3 LTM
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, YTD 2023 EBIT PER SEGMENT, YTD 2023 29% 17% 46% 56% Rock Foundation Rock Rock Norway Sweden Sweden Sweden 27% Rock Norway 25% Foundation Sweden
Slide 7: Diversified project portfolio lower the risk level
Diversified project portfolio lower 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 accounts drilling becoming an construction of new to less than increased part of
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 Intensified measures to improve profitability and take advantage of business opportunities in a weaker market climate
Slide 10: Financial performance (1/2)
Financial performance (1/2) 1000 20,0% 885 900 820 July – September 800 700 • Net sales decreased by 7 % and amounted to SEK 820m (885) 600 506 500 • Organic growth amounted to -15 (29) % 400 7,8% 7,0% • Adjusted EBIT margin amounted to 2.1 (7.8) % 300 200 100 2,1% 0 0,0% Comments Q3 2023 Q3 2022 Q3
Slide 11: Financial performance (2/2)
Financial performance (2/2) Financials 72 • Adjusted cash flow from operating activities amounted to SEK -93m (109) during Q3. 32 • Net debt/adjusted EBITDA amounted to 3.2x (3.1x) Q3 2023 Q3 2022 Q3 2021 • Cash and cash equivalents at the end of the period SEK 50m (167) • Unused credit and overdraf
Slide 12: Performance per segment – Rock Sweden
Performance per segment – Rock Sweden SEKm 500 445 420 422 400 356 366 344 309 • Rock Sweden’s external net sales increased with 300 244 4 % compared to prior year and the segments organic growth amounted to -14 %. 200 • The increase in net sales is primarily related to 100 new acquisitions compared
Slide 13: Performance per segment – Rock Norway
Performance per segment – Rock Norway SEKm 350 292 300 263 252 250 240 250 218 217 • Rock Norway’s external net sales increased with 205 200 17 % and the segments organic growth 150 amounted to 13 %. 100 • EBIT margin was in line with prior year and 50 amounted to 5.9 (5.1) %. The improved EBIT 0 ma
Slide 14: Performance per segment – Foundation Sweden
Performance per segment – Foundation Sweden SEKm 350 289 305 274 292 300 250 • Foundation Sweden’s external net sales 210 200 172 decreased by 41 % and the segments organic 150 118 126 growth amounted to -41 %. The current 100 economic situation, with a sharp reduction in 50 housing construction and
Slide 15: Sustainable financial outlook
Sustainable financial outlook NET SALES DEVELOPMENT ADJUSTED EBITDA DEVELOPMENT ADJUSTED EBIT DEVELOPMENT 3 611 525 SEKm 3 402 SEKm 493 SEKm 244 221 281 134 1 918 145 102 43 55 1 008 7,2% 7,0% 710 6,0% 5,4% 6,1% 14,3% 14,4% 14,6% 14,5% 14,5% 2019 2020 2021 2022 2023 Q3 2019 2020 2021 2022 2023 Q3 20
Slide 16: Net debt and leverage
Net debt and leverage DEBT RATIO (NET DEBT/EBITDA) • Net debt amounts to SEK 1,674m (1,339). 3,4 3,2 3,1 • Machine loans amounts to 408m and lease liabilities to 373m. 2,7 2,6 2,6 2,5 2,5 • Debt ratio (net debt/EBITDA LTM) amounts to 3.2x (3.1x). • If EBITDA from acquisitions is included LTM debt ra
Slide 17: Performance in the Q3 business climate
Performance in the Q3 business climate • Continued strong demand for our services in infrastructure and mining/prospect drilling. Current trading • Continued challenging market conditions in housing construction in Q3 which also have resulted in delays related to local infrastructure. We expect cont
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: Four main financial targets
Four main financial targets 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-margin of 7 per
Slide 22: Nordisk Bergteknik
NORDISK BERGTEKNIK