Eltel Ab · OMXSTO:ELTEL
Eltel Ab — Q1 2022 Earnings Presentation
19 slides from Eltel Ab's earnings presentation, May 4, 2022
Slide 1: Eltel AB Q1 2022 presentation
Eltel AB Q1 2022 presentation 4 May 2022
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 2021 EUR 812.6 million • Average number o
Slide 4: Highlights Q1 2022
Highlights Q1 2022 • Growth in net sales ‒ Norway +22.5% ‒ Sweden +6.9% • Operative EBITA negatively affected by ‒ Harsh winter conditions ‒ COVID-19 ‒ Cost inflation • Three large agreements signed • Increased collaboration with customers, partners and our supply chain regarding sustainability An e
Slide 5: Cost inflation
Cost inflation • Cost inflation impacts all Eltel’s markets • Working hard to mitigate the effects of the inflation - dialogue with customers to seek compensation • Materials Eltel is dependent on: ‒ Fuel ‒ Steel ‒ Asphalt ‒ Cables ‒ Concrete • Risk of impact remaining negative in 2022
Slide 6: Major agreements signed
Major agreements signed During the reporting period Month/year Tender value, Customer Type of contract Contract length, Service Country EUR million years 02/22 33 MEUR Banedanmark Frame agreement 4+1+1 Communication Denmark 02/22 15 MEUR VALOREM Project 2 Power Finland 03/22 30 MEUR DNA Frame agreem
Slide 7: Total Group Q1 2022
Total Group Q1 2022 Jan-Mar Jan-Mar Jan-Dec Net sales and gross margin % EUR million M€ 2022 2020 2021 1 200 12% Net sales 184.0 182.0 812.6 1 000 10% Net sales growth, % 1.1% -23.1% -13.4% 800 8% Operative EBITA -2.4 -0.7 14.8 600 6% Operative EBITA margin, % -1.3% -0.4% 1.8% 400 4% Return on opera
Slide 8: Finland Q1 2022
Finland Q1 2022 Jan-Mar Jan-Mar Jan-Dec EUR million 2022 2021 2021 Net sales Net sales 58.8 60.8 299.6 Net sales growth, % -3.2% 3.2% -0.2% Q1 2022 Operative EBITA 0.9 0.7 12.7 Operative EBITA-margin, % 1.6% 1.1% 4.2% Number of employees, average 1,491 1,447 1,478 Communication Power Net sales M€ Op
Slide 9: Sweden Q1 2022
Sweden Q1 2022 Jan-Mar Jan-Mar Jan-Dec EUR million 2022 2021 2021 Net sales Net sales 43.9 41.1 182.2 Net sales growth, % 6.9% -35.0% -18.8% Q1 2022 Operative EBITA -1.8 -0.8 -1.8 Operative EBITA-margin, % -4.1% -2.0% -1.0% Number of employees, average 912 972 938 Communication Power Net sales M€ Op
Slide 10: Norway Q1 2022
Norway Q1 2022 Jan-Mar Jan-Mar Jan-Dec EUR million 2022 2021 2021 Net sales Net sales 41.6 33.9 160.5 Net sales growth, % 22.5% -27.7% -9.7% Q1 2022 Operative EBITA 1.4 1.2 9.2 Operative EBITA-margin, % 3.4% 3.6% 5.7% Number of employees, average 938 906 919 Communication Power Net sales M€ Operativ
Slide 11: Denmark Q1 2022
Denmark Q1 2022 Jan-Mar Jan-Mar Jan-Dec EUR million 2022 2021 2021 Net sales Net sales 18.1 26.2 87.9 Net sales growth, % -30.8% -22.4% -25.6% Q1 2022 Operative EBITA 0.2 1.3 4.2 Operative EBITA-margin, % 0.9% 5.1% 4.8% Number of employees, average 475 658 562 Communication Power Net sales M€ Operat
Slide 12: Other business Q1 2022
Other business Q1 2022 Jan-Mar Jan-Mar Jan-Dec EUR million 2022 2021 2021 Net sales Net sales 23.5 21.4 91.9 Operative EBITA -0.6 -0.9 -1.8 Q1 2022 Number of employees, average 1,067 1,230 1,123 Other business includes operations in High Voltage, Smart Grids Germany, Lithuania as well as closing act
Slide 13: Group leverage and net debt
Group leverage and net debt Leverage M€ Net debt and ROCE, % 8 300 30% 6 200 20% 4 100 10% 2 0 0% 0 -100 -10% Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Net debt excluding leasing liabilities IFRS 16 leasing liabilities Leverage ROCE %
Slide 14: Going forward
Going forward
Slide 15: Financial guidance
Financial guidance Given the significant uncertainties in the market due to the war in Ukraine and increased inflation, Eltel is no longer in position to give financial guidance for 2022 and therefore removes such guidance. The previous guidance stated that the company expects the full-year 2022 ope
Slide 16: Eltel Group financial targets by end of 2025
Eltel Group financial targets by end of 20251) 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 1) Previous timeline was by end of 2023. 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 • Increasing market share in the Nordics focus on local markets • Prioritise core operational • Innovation
Slide 18: Questions
Questions 18
Slide 19: ELTEL
ELTEL