Eltel Ab · OMXSTO:ELTEL
Eltel Ab — Q3 2021 Earnings Presentation
21 slides from Eltel Ab's earnings presentation, Nov 3, 2021
Slide 1: Eltel AB Q3 2021 presentation
Eltel AB Q3 2021 presentation 3 November 2021 An electrical excavator on the Helen power project in Helsinki
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 • 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 million • 5,100 employees by
Slide 4: Highlights Q3 2021
Highlights Q3 2021 • Operative EBITA margin in segments slightly increased • Operative EBITA affected by lower net sales, High Voltage Poland and material prices • Maintained a healthy balance sheet • COVID-19 continued to impact negatively An electrical excavator on the Helen power project in Helsi
Slide 5: COVID-19 impacts Eltel
COVID-19 COVID-19 impacts Eltel Main reasons: • Reduced customer investments • Increased material prices • Postponed projects • Delays in project execution • Slightly increased sick-leave rates
Slide 6: Sustainability
Sustainability • Sustainability is business-critical for Eltel • Customer expectations • Work ongoing to set concrete and measurable goals for SBTi • 100% electrified fleet in Norway by end of 2026
Slide 7: Total Group Jan-Sep 2021
Total Group Jan-Sep 2021 Jul-Sep Jul-Sep Jan-Sep Jan-Sep Jan-Dec Net sales and gross margin % EUR million M€ 2021 2020 2021 2020 2020 1 200 12% Net sales 193.8 226.7 586.2 708.8 938.0 1 000 10% Net sales growth, % -14.5% -19.6% -17.3% -12.4% -13.8% 800 8% Operative EBITA 4.1 6.7 7.8 7.5 11.4 600 6%
Slide 8: Segments Jan-Sep 2021
Segments Jan-Sep 2021 Jul-Sep Jul-Sep Jan-Sep Jan-Sep Jan-Dec M€ Net sales EUR million 2021 2020 2021 2020 2020 1 000 Net sales, segments 174.1 199.1 527.2 615.4 820.5 800 Net sales growth, %, 600 -12.6% -10.2% -14.3% -5.3% -7.8% segments 400 Operative EBITA, segments 7.7 8.6 16.9 16.9 22.9 200 Oper
Slide 9: Finland Jan-Sep 2021
Finland Jan-Sep 2021 Jul-Sep Jul-Sep Jan-Sep Jan-Sep Jan-Dec EUR million 2021 2020 2021 2020 2020 Net sales Net sales 77.9 80.3 218.4 217.5 300.2 Net sales growth, % -3.1% 8.3% 0.5% 12.9% 10.8% Jan-Sep Operative EBITA 4.8 4.3 8.6 3.8 7.2 2021 Operative EBITA-margin, % 6.2% 5.4% 4.0% 1.7% 2.4% Number
Slide 10: Sweden Jan-Sep 2021
Sweden Jan-Sep 2021 Jul-Sep Jul-Sep Jan-Sep Jan-Sep Jan-Dec EUR million 2021 2020 2021 2020 2020 Net sales Net sales 40.2 50.9 125.9 173.7 224.5 Net sales growth, % -21.0% -21.6% -27.5% -21.2% -22.9% Jan-Sep Operative EBITA -0.2 -0.8 -2.6 -1.3 -3.7 2021 Operative EBITA-margin, % -0.5% -1.6% -2.1% -0
Slide 11: Norway Jan-Sep 2021
Norway Jan-Sep 2021 Jul-Sep Jul-Sep Jan-Sep Jan-Sep Jan-Dec EUR million 2021 2020 2021 2020 2020 Net sales Net sales 38.2 42.1 114.2 136.0 177.7 Net sales growth, % -9.3% -26.4% -16.0% -14.6% -18.8% Jan-Sep Operative EBITA 2.9 4.1 6.8 10.3 14.3 2021 Operative EBITA-margin, % 7.6% 9.8% 6.0% 7.5% 8.0%
Slide 12: Denmark Jan-Sep 2021
Denmark Jan-Sep 2021 Jul-Sep Jul-Sep Jan-Sep Jan-Sep Jan-Dec EUR million 2021 2020 2021 2020 2020 Net sales Net sales 17.8 25.8 68.6 88.3 118.1 Net sales growth, % -30.8% 0.9% -22.3% 14.1% 8.0% Jan-Sep Operative EBITA 0.2 1.0 4.1 4.1 5.0 2021 Operative EBITA-margin, % 1.0% 3.8% 6.0% 4.7% 4.3% Number
Slide 13: Other business Jan-Sep 2021
Other business Jan-Sep Large1) High Voltage and PTI projects 2021 Project portfolio, EUR 18 million in estimated remaining net sales M€ Year Jul-Sep Jul-Sep Jan-Sep Jan-Sep Jan-Dec 60 EUR million 2021 2020 2021 2020 2020 Net sales 22.0 29.9 65.0 100.4 127.5 50 Operative EBITA -2.2 -0.9 -3.6 -3.2 -3.
Slide 14: Group leverage and net debt
Group leverage and net debt Leverage Net debt and ROCE, % M€ % 8 300 30% 200 20% 6 100 10% 4 0 0% 2 -100 -10% 0 -200 -20% Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Net debt, financing agreement IFRS 16 lease liabilities Leverage ROCE
Slide 15: Going forward
Going forward
Slide 16: Eltel Group financial targets by end of 2023
Eltel Group financial targets by end of 2023 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 16
Slide 17: 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 18: 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 19: Financial guidance
Financial guidance Eltel expects the full-year 2021 operative EBITA margin to increase compared to 2020.
Slide 20: Questions
Questions 20
Slide 21: ELTEL
ELTEL