Eltel AB (publ)

A very warm welcome to LTEL's presentation of our third quarter results. My name is Alexandra Karnlund. I am Communications Director of LTEL. The presentation will be held by our CEO and President Håkan Dahlstrom and our CFO Tarja Leikas. After the presentation, we will open up for your questions. And you can post your questions through the webcast. Just write your question in the form and we will pick it up. And you can also dial in your questions. I will come back with instructions for that. With that, over to you, Håkan.

Thank you, Alexandra. Good morning, all. My name is Håkan Dahlstrom and we are ELTEL. Elthal, the leading Nordic service provider in critical infrastructure. And that means that we do installations, we do service and maintenance, and we do upgrade of critical infrastructure. Critical infrastructure have never been as important as of today. This means that for customers like network and grid owners, for enterprise customers, for the public sector, we do Corrective maintenance, we do technology modernization and we installed new infrastructure. And that in the area of telecommunication, but also power transmission, distribution, smart metering, meaning utilities. and during the last 3-4 years we also have expanded our addressable market into private networks, e-mobility, energy storage, solar PV and now during the last 2 years also data center solutions. The share of recurring revenue year to date is 70%. So that is what we mean with maintenance services, upgrade services. That is a work that never ends. But we also do 30% on establishing new infrastructure. By that, I would like to go to this third quarter that is really great for us in ELTEL to see that we now, for the 13 quarters in row, have been able to improve our profitability. And we are delivering the highest profitability since 2015. We also have been able during the third quarter to win more contracts than we normally do, so we land in the end of this quarter with a record high order book. On the financial side, the adjusted EBITDA As has been our priority now for these three, four years that we have been working on this strategy, we now reach 5.6% in the quarter to be compared with the 4.3 previous year. Here is Finland, and the team in Finland is taking the heaviest weight, and we see Finland delivering more than 10% in the quarter. So really good to see, and Tarja will come back with more detail about Finland in a minute or two. But as I said, 13 consecutive quarters of improved profitability. And for us, with the seasonality, as you know, we have, it's most relevant to compare Q3 with Q3 previous year. And that is how we talk about improvement inside ELTEL. Also good to see that the cash flow improved during the third quarter. And I have to admit that I would have loved to see a better development of net sales. But overall, I would claim that this is a very strong quarter for us in Elthal. So really happy about that. If we then look a little bit on that order book that I mentioned, we come up to 1.7 billion euro record high to be compared with 1.2 for a year ago. The good thing is also what it consists of. It's not only the level of it, it is the content of the order book here. The extremely important agreement that we have been able to secure with Telenor in Norway. As you know, our Norwegian organization are mainly doing communication. More than 90% of the business in Norway is communication. And Telenor is the largest customer in that market. And now with this long term, I would really like to emphasize that this long-term contract and partnership setup that we have been able to construct with Telenor is really, really important for us. So now we have five years of close cooperation and I can already see the new way of working is delivering good result for us and Telenor in that cooperation. Five years and then option of three years plus another three years. So in principle, 11 years ahead of us. It's really nice to see. Also equally important for our business in Denmark, we have been able to secure an agreement with Constant. And in the same way as we have on communication where we work on build, connect, and care, it's also the same in power. So with Constant, we will work with those three parts. We will build, we will connect, and we will care for the distribution network that Constant has in Denmark. This is to a big extent new money for us and a really good step for the power business in Denmark. But then I also have to say that there is a bit of diverse development in our Nordic markets where even though Finland creates a fantastic result in the third quarter, we are coming down on net sales. And that is mainly due to that we are on the later part of a big fiber rollout. Fiber rollout to household. We talk about fiber to the home. The peak has clearly been 24-25, and during the whole of this year, but also in the end of 25, we saw lower volume. We expect this to continue a bit going forward. But this is nothing odd. I would say that this is more a normalization of the volume in classic communication towards telco operators. But great to see how the team in Finland have been able to defend and also improve margin even though lower volume. So really good. Power has not been able to compensate fully on the net sales, but together Finland delivering a really strong result. Sweden, doing really great in classic communication services, both towards operators but also towards public infra. So really strong and good margin development in Sweden. However, the decline in contribution from large projects, mainly in smart metering, It's not really possible to compensate for when it comes to net sales. So Sweden do great, I would claim, in the classic services. Power have lower volume and lower contribution from big projects in Sweden, leaving Sweden with a decline on top line. Norway, flattish on top line, good activity level, particularly in data center. Not really... Thank you very much. Thank you very much. but then fully in third quarter of next year. So that means that in my own scenario at least we will have growth of significance in Norway during next year based on this. The constant agreement will come into play 1st of February and that will of course help out the situation in Denmark. As I say, Denmark and this diverse development. For Denmark, we have had a little bit of trouble for some quarters now. Also in the third quarter, and this is lower volume in classic communication, but also lower volume in power. And here, I think that we have to look on ourselves. We have to become better in our sales activity, being better and more successful in our sales activity. The German part of that segment is doing really great. So really happy for the contribution from Germany. But as a segment, we are struggling in Denmark, Germany. And after Q3, we are really happy to see that the appeal has been dealt with by the court. And we have now everything in place. It is signed. We are clear with the agreement with Vattenfall. And this is the largest service and maintenance contract that Sweden, ELTEL Sweden, have ever signed. Really important for us. and we are now starting the cooperation with Vattenfall to be able to deliver on this agreement by 1st of June next year. So as you hear, gradually improvement and gradually more net sales based on this contract. The agreement with Telenor is our largest contract ever and we have a really great hope and expectation on that cooperation going forward. So a really strong quarter, I would say, even though I wanted to have something else on net sales, as I believe you understand. But here we are. And I think this order book of 1.7 actually is the prerequisite for a more better development, also top line. But... Priority one is still margin improvement. We will stick to that. Margin improvement is number one. We need to broaden the customer base.

We need to grow in emerging services. And I would claim we are doing just that. Tarja, please.