Eltel Ab · OMXSTO:ELTEL
Eltel Ab — Q1 2021 Earnings Presentation
19 slides from Eltel Ab's earnings presentation, Apr 28, 2021
Slide 1: Eltel AB Q1 2021 presentation
Eltel AB Q1 2021 presentation 28 April 2021
Slide 2: Today's presenters
Today’s presenters Casimir Lindholm Saila Miettinen-Lähde President and CEO CFO 2
Slide 3: Eltel is the Nordic market leader in infranets
Eltel is the Nordic market leader in infranets • Founded in 2001 – 20 year anniversary • Leading Nordic field service provider within communication and power • Operations throughout the Nordics, Poland, Germany and Lithuania • UN Global Compact signatory since 2014 • Net sales in 2020 EUR 938 millio
Slide 4: Highlights Q1 2021
Highlights Q1 2021 • We improved our results for the fifth consecutive quarter year-on-year, despite harsh winter conditions • The Nordic countries delivered according to plan • Good resource and production planning • Good project management and cost control • Return on operative capital employed co
Slide 5: COVID-19
COVID-19 COVID-19 had an impact on Eltel during the first quarter Main reasons: • Reduced customer investments • Postponed projects • Delays in project execution • Local restrictions • Slightly increased sick-leave rates
Slide 6: Total Group Q1 2021
Total Group Q1 2021 M€ Net sales and gross margin % EUR million Jan-Mar 2021 Jan-Mar 2020 Jan-Dec 2020 1 200 12% Net sales 182.0 236.6 938.0 1 000 10% Net sales growth, % -23.1% -5.7% -13.8% 800 8% Operative EBITA -0.7 -2.1 11.4 600 6% Operative EBITA margin, % -0.4% -0.9% 1.2% 400 4% Return on equi
Slide 7: Finland Q1 2021
Finland Q1 2021 Net sales EUR million Jan-Mar 2021 Jan-Mar 2020 Jan-Dec 2020 Net sales 60.8 58.9 300.2 Net sales growth, % 3.2% 14.3% 10.8% Jan-Mar 2021 Operative EBITA 0.7 -0.8 7.2 Operative EBITA-margin, % 1.1% -1.4% 2.4% Number of employees 1,446 1,420 1,470 Communication Power Net sales • Strong
Slide 8: Sweden Q1 2021
Sweden Q1 2021 Net sales EUR million Jan-Mar 2021 Jan-Mar 2020 Jan-Dec 2020 Net sales 41.1 63.1 224.5 Organic growth1), % -31.0% Jan-Mar 2021 Operative EBITA -0.8 0.5 -3.7 Operative EBITA-margin, % -2.0% 0.7% -1.6% Number of employees 965 1,581 1,003 Communication Power Net sales • Divestment of the
Slide 9: Norway Q1 2021
Norway Q1 2021 Net sales EUR million Jan-Mar 2021 Jan-Mar 2020 Jan-Dec 2020 Net sales 33.9 47.0 177.7 Organic growth1), % -28.5% Jan-Mar 2021 Operative EBITA 1.2 2.1 14.3 Operative EBITA-margin, % 3.6% 4.4% 8.0% Number of employees 896 1,039 943 Communication Power Net sales • Ramp up of the renewed
Slide 10: Denmark Q1 2021
Denmark Q1 2021 Net sales EUR million Jan-Mar 2021 Jan-Mar 2020 Jan-Dec 2020 Net sales 26.2 33.7 118.1 Organic growth1), % -22.8% Jan-Mar 2021 Operative EBITA 1.3 1.8 5.0 Operative EBITA-margin, % 5.1% 5.3% 4.3% Number of employees 650 628 637 Communication Power Net sales • Completion of a large co
Slide 11: Other business Q1 2021
Other business Q1 2021 Large1) High Voltage and Power Transmission International projects Project portfolio, EUR 23 million in estimated remaining net sales EUR million Jan-Mar 2021 Jan-Mar 2020 Jan-Dec 2020 Net sales 21.4 36.5 127.5 EUR million Year 60 Operative EBITA -0.9 -2.2 -3.3 Number of emplo
Slide 12: Group leverage and net debt: Q1 2019−Q1 2021
Group leverage and net debt: Q1 2019−Q1 2021 Leverage Net debt and ROCE % M€ M€ % 16 200 20% 14 150 15% 12 100 10% 10 50 5% 8 0 0% 6 4 -50 -5% 2 -100 -10% 0 -150 -15% Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Leverage Net debt, financ
Slide 13: Going forward
Going forward
Slide 14: Eltel Group financial targets by end of 2023
Eltel Group financial targets by end of 2023 Group 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: Our transformation journey
Our transformation journey 2017–2018 2019–2021 2022–2023 House in order Operational Excellence Investing in sustainable profitable growth • Reorganisation to strengthen • Improve profitability • Increased market share in the focus on local markets • Prioritise core operational Nordics • Increased fo
Slide 16: Eltel focus areas 2021
Eltel focus areas 2021 Continued operational focus • Tender • Right people • Implementation & execution • Production planning • Training • Improved profitability • Upsell on existing customer base • Improved quality • High customer Strategic focus satisfaction • Engaged employees • Strengthen our po
Slide 17: Financial guidance
Financial guidance Eltel expects the full-year 2021 operative EBITA margin to increase compared to 2020.
Slide 18: Questions
Questions 18
Slide 19: ELVEL
ELVEL