Slides
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Bravida Q4 2024 Mattias Johansson, CEO Åsa Neving, CFO 11 February 2025
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Q4 highlights Service sales growth +5% Installation sales growth -4% Net sales growth 0% EBITA margin 7.5% Cash conversion 105% Organic growth -4% • Flat growth as expected due to challenging markets and strict project selection, organic growth -4% and growth from acquisitions +4% • Service sales growth +5% • Order intake decreased -26%, based on a selective tender strategy • Order backlog decreased during the quarter, SEK -1,681m • EBITA-margin improve to 7.5% (7.4%), positively affected by better performance in Denmark but negatively affected by the weak market in the south part of Sweden ‒ Cost efficiency measures in south part of Sweden, SEK 41m one-off restructuring costs ‒ Final Northvolt provision of SEK 30m in Sweden ‒ EBITA-margin excluding items affecting comparability 8.3% (7.4%) ‒ Norway margin improved to 7.5% (5.9%), including Thunestvedt Group ‒ Denmark improving EBITA-margin to 4.0% (0.1%) ‒ Finland margin improved to 6.4% (6.1%) • Continued good operating cash flow SEK 756m • Cash conversion improving to 105% (73%) • The board proposes an increased dividend of 3.75 SEK per share • LTIFR LTM improving 11% YoY 5
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2024 highlights Net sales +1% Number of acquisitions 10 Order backlog SEK 14,929m Acquired net sales SEK 580m • Total growth, +1% • Organic growth -3%, 5% growth from acquisitions and -1% from FX • Increased sales in service +5% • Increasing sales in Norway, Denmark and Finland • Decreasing sales in Sweden due to a soft market in the south part • Order intake improving in Norway but declined in the other markets, in total -7% • EBITA-margin 5.2% (5.9%) • EBITA-margin excluding items affecting comparability 5.7% • Impact of total bad debt is approximately SEK 100m related to Northvolt • Restructuring cost in Sweden and Denmark, in total SEK 68m • Strong cash flow SEK 1,896m (1,417) and Cash conversion 105% (73%) • The board proposes an increased dividend 3.75 (3.50) SEK per share 6 Service sales growth +5% Installation sales growth -3%
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7 We delivered improved cash flows and a low net debt. The board propose a higher dividend, SEK 3.75 per share Net debt/EBITDA 1.0x Cash flow YoY +34% 2024 Dividend increase per share from IPO, SEK and CAGR 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1.00 1.25 1.55 2.00 2.25 2.50 3.00 3.25 3.50 3.75 +16% Cash conversion 105%
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8 Net sales performance in Q4, SEKm Sales growth 0% Organic growth -4% Growth in service +5% Growth in installation -4% Growth from acquisitions +4% FX effects 0% M&ANet sales Q4 2023 Net sales Q4 2024 Currency effectOrganic growth 8,106 -313 336 -21 8,108
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9 EBITA in Q4, SEKm • EBITA-margin 7.5% (7.4%) • EBITA-margin improved in Denmark, Finland and Norway • As expected, a weak market in the south part of Sweden brought down the group margin • Items affecting comparability SEK 41m referring to restructuring costs in south part of Sweden. • Final Northvolt provision of SEK 30m in Sweden • EBITA-margin excluding items affecting comparability 8.3% (7.4%) Q4 2024 Q4 2023 604 596 – – – – – 7.5% 7.4%
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10 2112 2203 2206 2209 2212 2303 2306 2309 2312 2403 2406 2409 2412 7,251 6,816 8,544 6,327 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 2112 2203 2206 2209 2212 2303 2306 2309 2312 2403 2406 2409 2412 16,519 16,881 17,000 14,929 0 5,000 10,000 15,000 20,000 Order intake and backlog, SEKm Order backlog (installation only) Order intake LTM and per quarter • Order intake decreased -26% YoY in Q4, due to lower volumes of installations • Strong comps due to a large infrastructure order last year, SEK1.3bn • Order backlog decreasing SEK -1,681m in Q4 due to strict projects selection (margin over volume)
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• 36% of all 8,800 vehicles are electric driven • Change in CO2 emissions LTM from vehicles, -14% • The change in CO2e vehicles in relation to net sales in 2024 compared to 2020 was -36 percent • Improved LTIFR on Group level, -11% • Lower LTIFR in Sweden and Finland • Norway and Sweden below target, <5.5 11 LTIFR (lost time injury frequency rate) LTM ESG Group FinlandNorwaySweden Denmark 5.9 6.6 3.7 6.2 1.7 1.1 15.3 12.1 10.0 11.7 0.0 5.0 10.0 15.0 20.0 2024 2023
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• 10 acquisitions completed in 2024, adding SEK 580m in annual sales • No acquisitions in Denmark due to our focus on improving profitability • No acquisitions in Norway due to the extensive integration of Thunestvedt Group • Continue to see good acquisition opportunities • Strong pipeline of potential candidates to continue our strategy of selective M&A growth 12 Sweden Norway Finland Denmark 6 bolt-ons SEK 287m 4 bolt-ons SEK 293m Acquisitions 2024 10 SEK 580m acquired sales 2024 Acquisitions 2024
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13 SEKm Net sales EBITA EBITA-margin Order intake Order backlog Q4 2024 3,854 368 9.6% 2,850 8,141 Q4 2023 4,024 453 11.3% 4,779 9,497 YTD 2024 14,118 954 6.8% 12,761 8,141 YTD 2023 14,414 1,106 7.7% 14,866 9,497 • Sales decreased -4% explained by the soft market in the south part of Sweden, sales in the south part of Sweden declined by -20% YoY • Organic growth approximately -7%, growth from acquisitions approximately +2% • EBITA-margin declined to 9.6%, due to a continued soft market in the south part of Sweden. Transformation program implemented to adjust conditions, restructuring cost SEK 41m. Provision for Northvolt trade receivables SEK 30m • EBITA-margin excluding items affecting comparability 11.4% (11.3%) • Order intake -40%, adjusted for the large infrastructure order last year -18% • Order backlog -14% YoY Sweden Q4 2024 Q4 2024 EBITA Q4 2023 EBITA 368 453 Q4 2024 Q4 2023 Net sales Order intake Order backlog 3,854 4,024 2,850 4,779 8,141 9,497
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14 SEKm Net sales EBITA EBITA-margin Order intake Order backlog Q4 2024 1,661 124 7.5% 1,558 1,978 Q4 2023 1,694 99 5.9% 1,414 2,559 YTD 2024 6,198 369 5.9% 5,655 1,978 YTD 2023 5,932 320 5.4% 5,128 2,559 • Growth in sales -2% • Organic growth -7%, growth from acquisitions +6% and FX -1% • Strong growth in the service business, +13% • Negative growth in the installation business, -18% • EBITA-margin improved to 7.5% (5.9%) including Thunestvedt • Order intake +10% • Order backlog -23% YoY Norway Q4 2024 Net sales Order intake Order backlog 1,661 1,694 1,558 1,414 1,978 2,559 Q4 2024 EBITA Q4 2023 EBITA 124 99 Q4 2024 Q4 2023
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15 • Growth in sales +9% due to strong growth in the service business • Organic growth +9% • EBITA-margin improved to 4.0% (0.1%) due to better performance in both the service and the installation business • Order intake -20% • Order backlog +8% YoY Denmark Q4 2024 SEKm Net sales EBITA EBITA-margin Order intake Order backlog Q4 2024 2,015 81 4.0% 1,578 3,938 Q4 2023 1,847 2 0.1% 1,970 3,635 YTD 2024 6,993 92 1.3% 7,165 3,938 YTD 2023 6,935 198 2.9% 7,346 3,635 Net sales Order intake Order backlog 2,015 1,847 1,578 1,970 3,938 3,635 Q4 2024 EBITA Q4 2023 EBITA 81 2 Q4 2024 Q4 2023
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16 SEKm Net sales EBITA EBITA-margin Order intake Order backlog Q4 2024 623 40 6.4% 388 872 Q4 2023 599 37 6.1% 438 1,308 YTD 2024 2,489 111 4.5% 1,991 872 YTD 2023 2,245 87 3.9% 2,119 1,308 • Growth in sales +4% due to growth in the installation business • Organic growth -3%, growth from acquisitions +6% and from FX +1% • EBITA-margin improved to 6.4% improved margin in the installation business • Order intake decreased by -11% • Order backlog -33% YoY Finland Q4 2024 Net sales Order intake Order backlog 623 599 388 438 872 1,308 Q4 2024 EBITA Q4 2023 EBITA 40 37 Q4 2024 Q4 2023
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1717 Key highlights Continued good cash flow improvement, partially driven by our focus on NWC Cash conversion improved to 105% (73%) Net debt remains low, providing capacity for continued profitable M&A growth and shareholder distributions Two larger unpaid receivables, expected to be resolved within the next 12 months One large unpaid receivable, expected to be resolved 2028 RCF SEK 2,500m ‒ Maturity 2027-02-14 with options 1+1 year Commercial paper programme SEK 1,500m and EUR 50m 3-year term loan, SEK 500m, maturity August 2025 Operating cash flow, SEKm Net debt and cash flow, SEKm Financial position Q4 2024 Cash balances 909 Term loan,RCF, Commercial paper -1,615 Leasing, IFRS 16 -1,485 Net debt -2,192 LTM EBITDA 2,167 Net debt/LTM EBITDA 1.0x Q4 2024 Q4 2023 2024 YTD 2023 YTD 756 1,435 1,896 1,417 0 500 1,000 1,500 2,000
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Market outlook 2025 1. Service activity continues to benefit from a positive growth environment 2. Challenges in installation continuing – variation between geographies but market is expected to recover in H2 2025 3. Favourable market conditions for projects in e.g., infrastructure, industry, defence facilities and civil engineering – providing business opportunities 4. We will maintain our project-selective strategy with continued focus on cost control across all projects – ‘margin over volume’ 5. We continue to see an attractive pipeline of acquisition opportunities 18
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19 Financial targets >5% Sales growth >7% EBITA margin >50% of net profit Target pay-out ratio >100% Cash conversion <2.5x Net debt/EBITDA Target leverage ratio
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Summary Q4 2024 20 • Sales unchanged • Service sales +5% • Organic growth -4% • Growth from acquisitions +4% • As expected, EBITA-margin positively affected by improvement in Denmark and negatively affected by the soft market in the south part of Sweden • Items affecting comparability SEK 41m referring to restructuring costs in south part of Sweden and provision of SEK 30m related to Northvolt, thus we have taken the total bad debt of approximately SEK 100 million. • Improved profitability in Denmark, Norway and Finland and in Sweden excluding items affecting comparability • Good cash flow and cash conversion • The board proposes a dividend of 3.75 (3.50) SEK per share • Decreasing LTIFR andCO 2 emissions from vehicles 14%
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29 April 2025 AGM 2025 21 Upcoming events 6 May 2025 Interim Report Q1 2025 11 July 2025 Interim Report Q2 2025 24 October 2025 Interim Report Q3 2025
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Q&A