Slides
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Presentation 7 February 2025 Q4
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• Net sales MSEK 957, +1.5% • Adjusted EBITA MSEK 58, margin 6.0% • Order backlog BSEK 4.0 • All numbers in the presentation refer to continuing operations unless other stated Numbers Where we are located Net sales by segment Q424 Q4 highlights Infraservices 25% Power 33% Telecom 42%
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Divestment of the Finnish operations • We have not seen the desired development • The sale is to be completed 2025 • Focus resources on infraservices, power and telecom in the larger markets in Sweden and Norway as well as the growth markets Germany and the UK.
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Key achievements 2024 • New organisation • Actions to increase efficiency • Digitalisation projects, new business system • New customers and expansions with existing customers • Increased geographical presence • Climate targets validated by SBTi
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Project examples
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Infraservices • Pedestrian and bicycle path undertaken by our subsidiary Moberg on behalf of the Swedish Transport Administration • Construction of a 3.5 km pedestrian and bicycle path between Tansta and Kumla Kyrkby, north of Stockholm • Started in 2024 and to be completed summer 2025
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Power • New larger framework aggrement with Elvia, one of Norways leading energy company • Value of about NOK 320 million • Four-year contract with option of 2+2 years
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Telecom • Extended trust with another contract with UGG, worth EUR 15 million • Roll out of fibre to over 7,000 housholds in Muldenstausee, near Leipzig • Earlier this year another contract of fibre roll out to 5,000 households in Raguhn-Jeßnit, worth EUR 10 million,
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Financial performance
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Performance 2024 January – December • Net sales MSEK 3,284, +3.1% • Adjusted EBITA MSEK 169, margin 5.2% • Order backlog BSEK 4.0 Indication for 2024 on 16 January 2025 excluding Finnish operations • Net sales MSEK 3,250 –3,300 • Adjusted EBITA margin 5.1–5.3% All numbers in the presentation refer to continuing operations unless other stated
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Discontinued operations 2024 Divestment of Finnish operations • Expected to be completed during 2025 Finland performance January – December • Net sales MSEK 241 (273) • Net profit after tax MSEK -105 (-38) • Operating cash flow MSEK -56 (-26) All numbers in the presentation refer to continuing operations unless other stated
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• Net sales +1.5% to MSEK 957 (943) • Organic growth 1.5% • Good development in Power in Norway and T elecom in Sweden • Germany grew driven by new projects • FX effects -0.9% 0 200 400 600 800 1000 1200 Net sales, MSEK 0 500 1000 1500 2000 2500 3000 3500 4000 4500 Order backlog, MSEK Net sales Order backlog Good development in Power in Norway and Telecom in Sweden All numbers in the presentation refer to continuing operations unless other stated
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0 1 2 3 4 5 6 7 8 0 10 20 30 40 50 60 70 Adjusted EBITA, MSEK Adjusted EBITA margin, % • Adjusted EBITA -12.6% to MSEK 57 (66) • Adjusted EBITA margin 6.0% (6.9) • Increased profitability in Power • Negative impact from Infraservices and T elecom in the quarter • Continued margin enhancing measures • EPS 0.81 (0.81) SEK Adjusted EBITA & margin Adjusted EBITA All numbers in the presentation refer to continuing operations unless other stated
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• Operating cash flow MSEK 71 (211) • Unutilized credit facilities and cash MSEK 563 • Leverage ratio 2.8 – higher than the medium term capital structure target -100 -50 0 50 100 150 200 Operating cash flow, MSEK 0 0.5 1 1.5 2 2.5 3 3.5 0 100 200 300 400 500 600 700 800 900 Net debt, MSEK Net debt/adjusted EBITDA, % Operating cash flow Net debt Cash flow All numbers in the presentation refer to continuing operations unless other stated Including discontinuing operations
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Segment performance
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• Net sales -1.8% to MSEK 238 • EBITA MSEK 14 • EBITA margin 5.9% (11.7) Q4 12 months MSEK 2024 2023 Δ 2024 2023 Δ Net sales 238 242 -1.8% 844 775 8.9% - Sweden 238 242 -1.8% 844 775 8.9% EBITA 14 28 -50.2% 54 68 - 21.1% EBITA margin 5.9% 11.7% -5.8 6.4% 8.8% -2.4 Numbers Sales & Margin – Q by Q Sales & Margin Infraservices 0 2 4 6 8 10 12 14 0 50 100 150 200 250 300 Net sales, MSEK EBITA margin, % All numbers in the presentation refer to continuing operations unless other stated
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• Net sales 3.2% to MSEK 317 • EBITA 22.0% to MSEK 37 • EBITA margin 11.6% (9.8) Q4 12 months MSEK 2024 2023 Δ 2024 2023 Δ Net sales 317 308 3.2% 1,005 1,002 0.3% - Sweden 223 223 0.3% 653 630 3.5% - Norway 96 85 13.3% 352 371 -5.1% EBITA 37 30 22.0% 76 73 4.1% EBITA margin 11.6% 9.8% 1.8 7.6% 7.3% 0.3 Numbers Sales & Margin – Q by Q Sales & Margin Power -2 0 2 4 6 8 10 12 14 0 50 100 150 200 250 300 350 Net sales, MSEK EBITA margin, % All numbers in the presentation refer to continuing operations unless other stated
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• Net sales +1.1% to MSEK 402 • EBITA -71.0% to MSEK 2 • EBITA margin 0.5% (1.8) Numbers Sales & Margin – Q by Q Sales & Margin Telecom Q4 12 months MSEK 2024 2023 Δ 2024 2023 Δ Net sales 402 398 1.1% 1,434 1,408 1.9% - Sweden 96 85 13.0% 280 282 -0.7% - No rway 249 250 -0.5% 910 824 10.5% - Germany 50 44 15.1% 174 192 -9.4% - UK 9 19 -53.3% 70 110 - 36.5% EBITA 2 7 -71.0% 14 34 57.5% EBITA margin 0.5% 1.8% -1.3 1.0% 2.4% -1.4-2 -1 0 1 2 3 4 0 50 100 150 200 250 300 350 400 450 Net sales, MSEK EBITA margin, % All numbers in the presentation refer to continuing operations unless other stated
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Performance 2024 cont’d January – December • Growth +3.1% • Adjusted EBITA margin 5.2% • Operating cash flow MSEK 115 Forward • Order backlog BSEK 4.0 • Profitability with step-wise improvements • Cash flow and financial stability All numbers in the presentation refer to continuing operations unless other stated
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Building a stronger Netel
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Key ongoing initiatives Growth • Grow with existing customers • Broadening our customer base and geographical presence • Sustainability a competitive advantage Operational excellence • Continue to develop our competitive offering to meet the strong megatrends • Digitalisation projects – new business system implemented • Continue margin enhancing activities • Focus on working capital and cash flow Our talents • Strengthen our employee engagement • Keep and develop our employees & attract new talents
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Q1 2025 25 April 2025