Kvartalsrapport Q3 2024

===== SIDA 1 =====

Strong cash flow and continued high order backlog Third quarter • Net sales increased 0.3 per cent to MSEK 893 (890), of which organic growth was 0.3 per cent • Adjusted EBITA amounted to MSEK 47 (50), with an adjusted EBITA margin of 5.3 per cent (5.6) • EBITA amounted to MSEK 36 (46), with an EBITA margin of 4.1 per cent (5.2) • Operating profit (EBIT) amounted to MSEK 34 (45), with an operating margin of 3.9 per cent (5.1)  • Profit for the period amounted to MSEK 8 (13) • Earnings per share before and after dilution amounted to SEK 0.17 (0.27) • Cash flow from operating activities increased to MSEK 47 (2) 
 January–September • Net sales increased 4.1 per cent to MSEK 2,534 (2,434) with organic growth of 3.9 per cent • Adjusted EBITA increased 5.0 per cent to MSEK 106 (101) with an adjusted EBITA margin of 4.2 per cent (4.1)  • EBITA increased 19.2 per cent to MSEK 87 (73) and the EBITA margin improved to 3.4 per cent (3.0) • Operating profit (EBIT) increased to 17.1 per cent and amounted to MSEK 82 (70), with an operating margin of 3.2 per cent (2.9)  • Profit for the period increased 45.7 per cent to MSEK 11 (7). • Earnings per share before and after dilution rose 46.7 per cent to SEK 0.22 (0.15) • Cash flow from operating activities amounted to MSEK -4 (39) • Net debt declined to MSEK 757 (798) and net debt/adjusted EBITDA amounted to 3.2 (3.2) • The order backlog was MSEK 4,019 (4,104) Significant events during the third quarter • Climate targets submitted to the Science Based Targets Initiative (SBTi) for validation in the autumn. Significant events after the end of the third quarter • Contract with Green Mountain Data Centers in Norway for installation of power systems in the data center in Enebakk. Indication 2024 • The adjusted EBITA margin for the full year 2024 is expected to be in line with 2023 and low net sales growth is expected for the full year 2024. The financial targets are expected to be reached in the medium term.  
 
R12 Oct-Sep Full-year
SEK millions 2024 2023 2024 2023 2023/2024 2023
Net sales 893 890 2,534 2,434 3,559 3,459
Net sales growth (%) 0.3% 14.2% 4.1% 12.9% 3.5% 10.1%
Adjusted EBITA 47 50 106 101 169 164
Adjusted EBITA margin (%) 5.3% 5.6% 4.2% 4.1% 4.7% 4.8%
EBITA 36 46 87 73 147 133
EBITA margin (%) 4.1% 5.2% 3.4% 3.0% 4.1% 3.8%
EBIT 34 45 82 70 140 128
EBIT margin (%) 3.9% 5.1% 3.2% 2.9% 3.9% 3.7%
Net debt 757 798 757 798 757 610
Net debt/Adjusted EBITDA R12 (Ratio) 3.2 3.2 3.2 3.2 3.2 2.6
Jul-Sep Jan-Sep
Q3

===== SIDA 2 =====

2 Netel Holding AB (publ)   Third quarter 2024 report 
   CEO’s comments  We continue to build a stronger Netel We are reporting a stable quarter with strong growth for Infraservices in Sweden and Telecom in Norway and Finland. Operating cash flow was strong in the quarter and amounted to MSEK 47. Our order backlog remains high at SEK 4.0 billion and our efficiency work to increase profitability over time is proceeding according to plan.  Sales increased organically by 0.3 per cent to MSEK 893 (890) in the quarter. Excluding currency effects organic growth was 2.8%, driven by strong growth in Infraservices and Telecom in Norway and Finland. In Power, comparative figures were impacted by the high volume of projects completed in the third quarter of 2023. Since the projects in Power are often major, sales can vary between the quarters depending on which projects are completed during each period. In Telecom in Sweden, we have started the projects to FMV, with initially low volumes in the quarter. We have also commenced deliveries to our new German customer UGG and can report growth, albeit modest, in Germany. Over the past year, we have carried out a number of strategic initiatives that are crucial to our future development and competitiveness. Among other things, we change business systems, run important digitalisation projects and have intensified our sustainability efforts. Furthermore, we have made organisational changes that will strengthen our ability to meet future demands and enable continued growth. These measures are necessary to build a stronger, more sustainable business. We expect this year’s adjusted EBITA margin to be in line with last year and we see low year-on-year growth due to lower volumes in Telecom in Germany, the UK and Sweden. The strategic initiatives we are implementing and incurring costs for this year will lay the foundation for us to achieve our medium-term financial targets. Continued efforts to enhance efficiency The EBITA margin fell to 4.1% (5.2%), impacted by lower volumes in Power and the completion of projects in Infraservices with lower margins than expected. We carry out extensive work where we identify and improve our processes and invest to see a positive development going forward, step by step. Our programmes to enhance efficiency, which encompasses among all increased digitalisation and a new common business system, is proceeding according to plan. The digitalisation projects for Telecom in Norway will enhance efficiency and further improve our service offering. The service business in Telecom consists of many small orders requiring us to maintain efficient systems to be competitive and more profitable.  High order backlog of SEK 4.0 billion The markets for critical infrastructure are driven by powerful megatrends such as the electrification and digitalisation of society and modernising of sewage and water systems. As a result, we see a stable trend in our 
markets and our order backlog remains high at SEK 4.0 billion. It is gratifying to note that our strategic decision earlier this year to expand into new customer segments, such as industry, is continuing to yield results. In Norway we recently signed a contract with Green Mountain Data Centers for the design and installation of power systems for Green Mountain’s continued expansion of its data center in Enebakk, near Oslo.  Strong cash flow Operating cash flow amounted to MSEK 47 (2), reflecting the success of our efforts to strengthen our financial position. During the year, we invested in and modernised our systems, improved work procedures and developed processes from the tendering phase to project completion. This holistic approach has enabled us to optimise our use of resources, minimise bottlenecks and increase control over costs and revenue. By strengthening each link in the chain, we have created more efficient operations with improved cash flow.  Science based climate targets Climate change is one of the most important issues of our time and we are focusing our efforts on reducing Netel’s climate footprint. Our climate targets are currently being evaluated by Science Based Targets Initiative (SBTi) and we hope to soon be able to announce validated targets in line with the Paris Agreement. To achieve these ambitious targets, we will need to intensify cooperation with both our customers and partners. Together, we can develop and accelerate our initiatives that help reduce our climate impact and promote a sustainable future. Future outlook I have now been President and CEO of Netel for almost a year and a half, and during this time we have implemented major organisational changes and changed our ways of working. I am proud of the progress we have made, especially in attracting new customers and strengthening the relationships we have with our existing partners. This progress is the result of the expertise, commitment and professionalism of our employees, whose daily work strengthens Netel’s competitiveness and creates long-term value on a step-by-step basis.  Jeanette Reuterskiöld President and CEO

===== SIDA 3 =====

3 Netel Holding AB (publ)   Third quarter 2024 report 
Condensed consolidated financial performance Third quarter Net sales Net sales increased organically by 0.3 per cent to MSEK 893 (890) in the third quarter. Exchange rate effects had a negative impact of 2.5 per cent. The increase of net sales was particularly strong for Infraservices and Telecom in Norway and Finland. Net sales were mainly negatively impacted by Power in Sweden and Norway by the typical quarterly variation due to the timing of project completions.  Order bookings were favourable during the quarter and the order backlog amounted to MSEK 4,019 (4,104). At the end of the second quarter, the order backlog amounted to MSEK 4,194.  Earnings EBITDA decreased 15.8 per cent to MSEK 54 (65), with an EBITDA margin of 6.1 per cent (7.3). EBITA decreased 21.7 per cent to MSEK 36 (46), and the EBITA margin was 4.1 per cent (5.2). Margins were impacted by the lower volumes in Power and the completion of projects in Infraservices with lower margins than expected. Adjusted EBITDA declined 3.0 per cent to MSEK 65 (68) for the quarter with an adjusted EBITDA margin of 7.3 per cent (7.6). Adjusted EBITA declined 6.0 per cent to MSEK 47 (50) and the margin amounted to 5.3 per cent (5.6). Adjustments have been made for items affecting comparability with SEK 11 million, which includes, among other things, restructuring costs for the implementation of business systems and organisational changes. Adjustments were made in the year-earlier quarter of MSEK 3, of which MSEK 2 related to acquisition-related costs.  Depreciation/amortisation and impairment amounted to MSEK -20 (-20).  Net financial items amounted to MSEK -21 (-26) for the quarter. Interest expenses amounted to MSEK -16 (-18), of which MSEK -1 (-1) was attributable to lease liabilities.  Profit before tax decreased 29.7 per cent to MSEK 13 (19) during the quarter.  Profit after tax decreased 36.0 per cent to MSEK 8 (13). Tax amounted to MSEK -5 (-6), leading to an effective tax rate of 37.4 per cent (31.2). Cash flow and financial position Cash flow from operating activities increased to MSEK 47 (2).  During the quarter, cash flow from investing activities was MSEK -40 (-1), mainly attributable to paid contingent considerations.  Cash flow from financing activities amounted to MSEK -16 (-5). Cash flow for the period was MSEK -9 (-5). Cash and cash equivalents at the end of the period amounted to MSEK 249, compared to MSEK 260 at the start of the quarter. Unutilised credit facilities totalled MSEK 298 compared with MSEK 292 at the start of the period, which together with cash and cash equivalents means a total of MSEK 547 in available funds compared with MSEK 552 at the start of the period.  
Net sales and adjusted EBITA margin   
  
Net sales by segment 
  
890
1,025
714
927893
5.66.2
2.0
4.85.3
Q3Q4Q1Q2Q3
2023 2024
Net revenues
Adjusted EBITA
Infraservices 25%
Power 26%
Telecom 49%

===== SIDA 4 =====

4 Netel Holding AB (publ)   Third quarter 2024 report 
Net debt, which is defined as current and non-current interest-bearing liabilities from credit institutions less cash and cash equivalents and current investments, amounted to MSEK 757 at the end of the quarter compared with MSEK 756 at the start of the quarter. This is equivalent to net debt in relation to adjusted EBITDA R12M of a multiple of 3.2. The leverage ratio calculated in accordance with the Group’s financial target was a multiple of 2.8 at the end of the period, which is above the capital structure target in the medium term. Other current and non-current interest-bearing liabilities primarily comprise bank financing and lease liabilities. These commitments amounted to MSEK 1,005 at the end of the quarter compared with MSEK 1,016 at the start of the quarter.  Total assets amounted to MSEK 3,036 compared with MSEK 3,104 at the start of the quarter and equity to MSEK 1,149 compared with MSEK 1,145 at the start of the quarter.  January–September Net sales Net sales rose 4.1 per cent to MSEK 2,534 (2,434) in the first nine months of the year with organic growth of 3.9 per cent, primarily as a result of a favourable performance in Infraservices and Power in Sweden and Telecom in Norway and Finland. Exchange rate effects had a negative impact of 1.0 per cent.  Earnings EBITDA increased 9.7 per cent to MSEK 140 (127) and the EBITDA margin improved to 5.5 per cent (5.2). EBITA increased 19.2 per cent to MSEK 87 (73) and the EBITA margin improved to 3.4 per cent (3.0). Margins were negatively impacted primarily by lower volumes in Telecoms in Germany and the UK. In the same period in 2023, profitability was impacted by restructuring costs of MSEK 20 for Power in Finland.  Adjusted EBITDA increased 1.9 per cent to MSEK 158 (155) for the nine-month period with an adjusted EBITDA margin of 6.2 per cent (6.4). Adjusted EBITA increased by 5.0 per cent to MSEK 106 (101), and the adjusted EBITA margin was 4.2 per cent (4.1). Adjustments have been made for items affecting comparability of MSEK 18, of which MSEK 3 for the introduction of the long-term incentive programme LTIP 2024 in accordance with the resolution of the Annual General Meeting in May 2024, and MSEK 5 for the implementation of business systems and organisational changes. Adjustments were made of MSEK 28 in the same period of 2023, of which MSEK 20 pertained to restructuring costs and MSEK 8 pertained to acquisition costs. Depreciation/amortisation and impairment amounted to MSEK -58 (-57).  Net financial items amounted to MSEK -61 (-50) for the nine-month period. Interest expenses amounted to MSEK -50 (-49), of which MSEK -2 (-3) was attributable to lease liabilities.  Profit before tax increased 3.3 per cent to MSEK 21 (20) during the first nine months of the year. Earnings were positively impacted in the same period of 2023 by a one-off effect of MSEK 5 from a dispute with a major fibre customer. Profit after tax increased 45.7 per cent to MSEK 11 (7). Tax, calculated with respect to tax adjustments and impacted by restrictions on interest deductions, amounted to MSEK -10  (-13), leading to an effective tax rate of 48.0 per cent (63.1).

===== SIDA 5 =====

5 Netel Holding AB (publ)   Third quarter 2024 report 
Cash flow and financial position Cash flow from operating activities amounted to MSEK -4 (39), mainly impacted by seasonal patterns with a high share of projects start-ups in the first quarter. In the same period of 2023, cash flow was positively affected by MSEK 70 from the settlement with a major fibre customer.  During the nine-month period, cash flow from investing activities was MSEK -120 (-79), mainly attributable to paid contingent considerations.  Cash flow from financing activities amounted to MSEK -79 (-46). The raising of loans was higher during the first nine months of 2023 compared with 2024, which impacts the comparison.   Cash flow for the period was MSEK -204 (-87). 
Segments Infraservices division 
 Net sales grew 8.4 per cent to MSEK 220 (203) in the quarter as a result of high project activity. Netel continued to win attractive contracts during the quarter in highly competitive markets. These include Netel being awarded the continued development of the BRT (Bus Rapid Transit) project in Örebro, Sweden, with a contract value of about MSEK 42.   EBITA decreased by 21.2 per cent to MSEK 14 (18), with an EBITA margin of 6.5 per cent (9.1), with the decline due to the completion of projects with lower margins than expected.  Power division 
 Net sales decreased by 17.7 per cent to MSEK 236 (286) during the quarter. Comparative figures are impacted by the high volume of project completions, primarily in Norway, in the third quarter of 2023. Since Power often involves major projects, sales can vary between the quarters depending on which projects were completed during the period.  
R12 Oct-SepFull-year
MSEK 20242023 Δ 20242023 Δ 2023/20242023 Δ
Net Sales 220 203 8.4% 606 53413.5% 848 7769.3%
of which
Sweden 220 19810.8% 606 53413.5% 848 7769.3%
EBITA 14 18-21.2% 40 40-0.6% 68 68-0.4%
EBITA margin 6.5%9.1% -2.6 6.6%7.5% 0.9-       8.0% 8.8% -0.8
Jul-Sep Jan-Sep
R12 Oct-SepFull-year
MSEK 20242023 Δ 20242023 Δ 2023/20242023 Δ
Net Sales 236 286-17.7% 764 805-5.1% 1,103 1,144-3.6%
of which
   Sweden 143 153-6.6% 429 407 5.3% 652 630 3.5%
   Norway 64 105-39.1% 256 287-10.6% 341 371-8.2%
   Finland 29 29 2.2% 77 111-31.0% 107 142-24.3%
EBITA 8 25-66.5% 31 2336.4% 59 5110.0%
EBITA margin 3.5%8.6% -5.1 4.0%2.8% 1.2 5.4% 4.5% 0.9
Jul-Sep Jan-Sep

===== SIDA 6 =====

6 Netel Holding AB (publ)   Third quarter 2024 report 
After the end of the quarter, a contract was signed with Green Mountain Data Centers in Norway for the design and installation of the power supply for the further expansion of their data center in Enebakk, near Oslo. EBITA decreased 66.5 per cent to MSEK 8 (25) in the quarter and the EBITA margin was 3.5 per cent (8.6). Profitability was impacted by the lower volumes in the quarter and the Finnish power operation which is still making a loss. Efforts to increase margins in Norway and Finland are continuing according to plan.  Telecom division 
  Net sales grew 9.1 per cent to MSEK 437 (401) in the quarter, primarily due to good development in Norway and Finland. In Sweden, the first projects with FMV have commenced but volumes remain low. In Norway, increased volumes in mobile and services contributed to the sales growth. In Finland, fibre projects are ongoing, which contributed to the strong performance. In Germany, major projects for the roll-out of fibre to UGG have commenced. In the UK, the build-up of Netel’s market presence is continuing. EBITA improved 184.5 per cent to MSEK 13 (5) and the EBITA margin increased to 3.0 per cent (1.1) in the quarter, primarily due to increased volumes. Measures to increase margins in Norway are proceeding according to plan.   
R12 Oct-SepFull-year
MSEK 20242023 Δ 20242023 Δ 2023/20242023 Δ
Net Sales 437 401 9.1% 1,1631,091 6.6% 1,6121,5404.7%
of which
   Sweden 53 54-2.0% 184 197-6.6% 269 282-4.6%
   Norway 254 22811.6% 662 57415.3% 912 82410.7%
   Finland 68 4261.4% 132 8163.3% 182 13138.9%
  Germany 47 45 3.3% 123 149-17.0% 85 110-23.0%
  UK 15 32-51.7% 61 91-33.0% 162 192-15.6%
EBITA 13 5184.5% 14 15 -7.2% 14 23-39.1%
EBITA margin 3.0%1.1% 1.8        1.2%1.4% -0.2 0.9% 1.5% -0.6
Jul-Sep Jan-Sep

===== SIDA 7 =====

7 Netel Holding AB (publ)   Third quarter 2024 report 
Other information Significant events after the end of the reporting period Contract signed with Green Mountain Data Centers covering the design and installation of power systems for the data center in Enebakk, near Oslo. The project includes the entire system from the 132 kV line, the substations and terminations in the data center. The project has already started and should be completed in 2026. Employees The number of employees at the end of the period was 852 (857). The average number of employees for the third quarter was 865 (870).  Financial targets Revenue growth  Annual growth target of 10 per cent, including inorganic growth. Margin target Adjusted EBITA margin above 7 per cent in the medium term. Capital structure Net debt (excluding lease liabilities) in relation to adjusted EBITDA R12M of a multiple below 2.5. The leverage ratio can temporarily be exceeded in connection with acquisitions. Dividend policy Pay-out ratio of 40 per cent of the Group’s net profit, considering other factors such as acquisition opportunities, financial position, cash flow and organic growth opportunities. Long-term incentive programme LTIP 2024 In May 2024, the Annual General Meeting resolved to implement a long-term incentive programme – LTIP 2024 – for members of the Executive Team and certain other key employees of the Group, totalling eight persons. Some of the participants in the programme will have the opportunity to acquire shares in the company (warrants), while other participants will have the opportunity to receive a cash amount based on the share price (synthetic options). Participants have been offered to purchase the options at market value, with a subsidy in the form of a cash payment equivalent to approximately 50% of the investment amount. The benefit corresponding to the subsidy is recognised as share-based payment in accordance with IFRS 2, meaning personnel costs over the vesting period of three years. The programme encompasses 750,000 warrants and 214,000 synthetic options. Both warrants and synthetic options may be exercised during the period from 1 June 2027 up to and including 31 August 2027. The subscription/exercise price amounts to 150% of the volume-weighted average price paid during five trading days ending on 17 May 2024, which was SEK 22.39. The terms and conditions of the warrants contain a so-called net strike recalculation clause, which means that the subscription price and the number of shares that each warrant entitles to subscription for will be recalculated before the exercise period.

===== SIDA 8 =====

8 Netel Holding AB (publ)   Third quarter 2024 report 
The fair value on the allotment date amounted to SEK 1.88 for warrants and SEK 1.87 for synthetic options. The maximum number of warrants has been subscribed.  During the quarter the Group recognised SEK 58,750 as costs in accordance with IFRS 2 and the share-based payment.  Parent Company The Parent Company’s net sales amounted to MSEK 6 (8) for the quarter. The Parent Company was charged with personnel costs and certain financial expenses. Risks and uncertainties There are several strategic, operational and financial risks and uncertainties that could impact the Group’s financial results and position. Most of these can be managed by internal procedures, although some are governed by external factors to a greater extent. Risks and uncertainties are related to IT and control systems, suppliers, disputes related to projects, seasonal and weather variations and currencies, but could also arise in the event of new competition, changed market conditions and macroeconomic factors or changed customer behaviour. Interest rate risk also exists for the Group. A weaker macroeconomic situation, higher interest rates and inflation pressure could have a negative impact on demand from customers and entail project delays. Netel cannot currently assess the scope of any potential recession, the level of inflation or expected interest rates. It is thus also difficult to assess the effects on the Group’s operations. Netel’s business model is based on a low level of the Group’s assets being tied up in own operations, for example, in machines, which makes the Group more financially agile during recessions. The Netel Group is also affected by weather factors. An early or late winter with lower temperatures has a negative impact on excavation projects, while autumn storms can lead to more assignments to secure power lines. For a more detailed description of the risks and uncertainties for the Group and the Parent Company, refer to the 2023 Annual Report.  Netel works actively to monitor and continuously evaluate sustainability-related risk and their impact on the Group’s operations and earnings. As part of this governance, Group management has started to monitor and evaluate the Group’s climate impact and how the Group is affected by climate-related risks. Group management is also following up compliance among subsidiaries regarding, for example, the Code of Conduct, work-related injuries and legal disputes. 2025 Annual General Meeting The 2025 Annual General Meeting will be held on Thursday, 8 May, in Stockholm, Sweden. Shareholders who wish to have a matter brought before the AGM may submit a proposal to Netel’s Chairman of the Board by e-mailing ir@netelgroup.com or writing to Netel Holding AB, Att: Årsstämma 2025, Fågelviksvägen 9, 7th floor SE-145 84 Stockholm, Sweden. To be assured of the proposal reaching the notice and therefore the agenda of the AGM, the proposal must have reached the company by 20 March 2025 at the latest.  Owners On 30 September 2024, Netel Holding AB (publ) had 4,291 (2,267) shareholders. The five largest shareholders were IK VII fund via Cinnamon International S.à.r.l (46.67 per cent),

===== SIDA 9 =====

9 Netel Holding AB (publ)   Third quarter 2024 report 
Nordnet Pensionsförsäkring (6.91 per cent), Swedbank Robur Fonder (4.27 per cent), Cicero Fonder (3.15 per cent) and Delphi Fondsforvaltning (2.49 per cent). There were a total of 48,511,873 shares and votes in Netel on 30 September 2024. All shares are ordinary shares.

===== SIDA 10 =====

10 Netel Holding AB (publ)   Third quarter 2024 report 
Financial statements Condensed consolidated statement of profit or loss  
    
  R12 Oct-Sep Full-year
SEK millions 2024 2023 2024 2023 2023/2024 2023
Operating income
Net sales 893 890 2,534 2,434 3,559 3,459
Other operating income 4 3 7 7 33 32
Total revenue 897 893 2,542 2,441 3,592 3,491
Operating expenses
Material and purchased services -603 -592 -1,651 -1,559 -2,338 -2,246
Other external expenses -80 -73 -212 -229 -310 -328
Personnel costs -160 -163 -539 -526 -727 -713
Depreciation and amortisation -20 -20 -58 -57 -76 -76
Operating profit/loss (EBIT) 34 45 82 70 140 128
Profit/loss from financial items
Net financial items -21 -26 -61 -50 -76 -64
Earnings before tax 13 19 21 20 64 64
Taxes -5 -6 -10 -13 -17 -20
Earnings for the period 8 13 11 7 47 44
Earnings for the period is attributable to
Parent company's shareholders 8 13 11 7 47 44
Non-controlling interests - - - - - -
Earnings per share
Earnings per share before and after 
diltution (SEK) 0.17 0.27 0.22 0.15 0.98 0.91
Average number of shares before and 
after dilution (thousands) 48,512 48,512 48,512 48,470 48,512 48,480
Jul-Sep Jan-Sep

===== SIDA 11 =====

11 Netel Holding AB (publ)   Third quarter 2024 report 
Condensed consolidated statement of profit or loss and statement of comprehensive income 
 In 2024, Netel replaced a bank loan in Swedish kronor (SEK) and signed a bank loan in Norwegian kronor (NOK) amounting to MNOK 200, corresponding to MSEK 199 at the time of borrowing. The loan is valued at the exchange rate on the balance sheet date. This loan was structured to secure the net investment in the Norwegian subsidiaries including the Parent Company’s lending to the companies amounting to an equivalent amount (MNOK 200) that was identified as an expanded net investment. Hedge accounting is applied, which is why gains or losses from currency translation of the loan are recognised in other comprehensive income and accumulated in equity to the extent that the hedge is   
effective. Any ineffective portion of the hedging relationship is recognised in net financial items in the income statement. Accumulative gains or losses recognised in other comprehensive income are presented in a separate item of equity and reclassified from equity to profit or loss as a reclassification adjustment on divestment or part divestment of the foreign operation. The hedge ratio is 1:1 for the hedge and an economic relationship is deemed to exist since the underlying currency risk in the loan and net investment are well matched. The Group did not recognise any ineffectiveness during the period.  
  R12 Oct-Sep Full-year
SEK millions 2024 2023 2024 2023 2023/2024 2023
Earnings for the period 8 13 11 7 47 44
Other comprehensive income
Translation differences for the period -5 4 3 -10 18 5
Other comprehensive income for the 
period -5 4 3 -10 18 5
Comprehensive income for the 
period 3 17 14 -2 66 49
Comprehensive income for the 
period is attributable to
Parent company's shareholders 3 17 14 -2 66 49
Non-controlling interests - - - - - -
Jul-Sep Jan-Sep

===== SIDA 12 =====

12 Netel Holding AB (publ)   Third quarter 2024 report 
Condensed consolidated statement of financial position 
   
SEK millions 30 Sep 2024 30 Sep 2023 31 Dec 2023
ASSETS
Non-current assets
Goodwill 1,238 1,245 1,237
Intangible assets 206 200 199
Property, plant and equipment 160 187 173
Financial non-current assets 13 11 13
Deferred tax assets 16 10 16
Total non-current assets 1,634 1,655 1,639
Current assets
Inventories 7 8 8
Current receivables 1,147 1,195 1,052
Cash and cash equivalents 249 281 446
Total current assets 1,402 1,485 1,506
Total assets 3,036 3,139 3,146
EQUITY AND LIABILITIES
Equity
Equity attributable to the parent company's shareholders 1,149 1,113 1,133
Equity attributable to non-controlling interests - - -
Total equity 1,149 1,113 1,133
Non-current interest-bearing liabilities 955 1,005 1,003
Non-current non-interest-bearing liabilities 93 238 93
Total non-current liabilities 1,048 1,243 1,097
Current interest-bearing liabilities 50 75 53
Current non-interest-bearing liabilities 789 708 863
Total current liabilities 839 783 916
Total equity and liabilities 3,036 3,139 3,146

===== SIDA 13 =====

13 Netel Holding AB (publ)   Third quarter 2024 report 
Condensed consolidated statement of changes in equity 
  
 
SEK thousands
Share 
capital 
Other 
contribute
d capital 
Translati
on 
reserve 
Retained 
earnings 
including 
profit/loss 
for the 
period 
Total equity 
attributable to 
the parent 
company's 
shareholders 
Non-
controlling 
interest Total equity 
Opening equity 1 Jan 2023 7421,460,815 4,737 -361,342 1,104,951 - 1,104,951
Profit/loss for the period - - - 7,429 7,429 - 7,429
Other comprehensive income - - -9,622 - -9,622 - -9,622Comprehensive income for the 
period - - -9,622 7,429 -2,193 - -2,193
Transactions with Group owners
Completed issues 5 9,995 - - 10,000 - 10,000
Total 5 9,995 - - 10,000 - 10,000
Closing equity 30 Sep 2023 7461,470,810 -4,886 -353,913 1,112,758 - 1,112,758
Opening equity 1 Jan 2024 7461,470,810-20,703 -317,415 1,133,438 - 1,133,438
Profit/loss for the period - - - 10,977 10,977 - 10,977
Other comprehensive income - - 3,455 - 3,455 - 3,455Comprehensive income for the 
period - - 3,455 10,977 14,432 - 14,432
Transactions with Group owners
Completed issues - 823 - - 823 - 823
Total - 823 - - 823 - 823
Closing equity 30 Sep 2024 7461,471,632-17,248 -306,439 1,148,692 - 1,148,692
Equity attributable to the parent company's shareholders

===== SIDA 14 =====

14 Netel Holding AB (publ)   Third quarter 2024 report 
Condensed consolidated statement of cash flows 
   
  Full-year
SEK millions 2024 2023 2024 2023 2023
Operating profit/loss 34 45 82 70 128
Reversal of non-cash items 16 16 45 49 70
Interest received 0 0 2 0 6
Interest paid -16 -20 -50 -49 -67
Tax paid -11 -5 -57 -37 -39
Cash flow from operating activities before changes in 
working capital 23 36 23 34 98
Changes in inventories 0 0 1 0 0
Changes in operating receivables 44 -62 -94 -35 94
Changes in operating liabilities -20 28 67 40 49
Cash flow from operating activities 47 2 -4 39 242
Acquisition of non-current assets -6 -4 -25 -13 -19
Acquisition of subsidiaries and businesses -34 0 -99 -74 -74
Sale of non-current assets 0 3 3 8 11
Cash flow from investing activities -40 -1 -120 -79 -83
New share issue - - - - -
Amortisation of lease liabilities -13 -13 -37 -39 -51
Proceeds from current and non-current loans and credits 0 8 14 50 50
Amortisation of current and non-current loans and credits -3 - -56 -58 -66
Cash flow from financing activities -16 -5 -79 -46 -67
Cash flow for the period -9 -5 -204 -87 92
Cash and cash equivalents at the beginning of the period 260 286 446 369 369
Translation difference in cash and cach equivalents -3 -0 6 -1 -14
Cash and cash equivalents at the end of the period 249 281 249 281 446
Jul-Sep Jan-Sep

===== SIDA 15 =====

15 Netel Holding AB (publ)   Third quarter 2024 report 
Notes to the financial statements in summary Key accounting policies This interim report covers the Swedish Parent Company Netel Holding AB (publ), Corp. Reg. No. 559327–6263, and its subsidiaries. The activities of the company and its subsidiaries (the “Group”) include the provision of the construction and maintenance of infrastructure in Sweden, Norway, Finland, Germany and the UK within the divisions of Infraservices, Power and Telecom. The Parent Company is a limited company with its registered office in Stockholm, Sweden. The address of the head office is Fågelviksvägen 9, SE-145 84 Stockholm. Netel Holding AB (publ) applies International Financial Reporting Standards (IFRS) as adopted by the EU. The Group’s interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and applicable parts of the Annual Accounts Act (1995: 1554). The interim report for the Parent Company has been prepared in accordance with Chapter 9 Interim Reports of the Annual Accounts Act and RFR 2 Reporting for Legal Entities. For the Group and the Parent Company, the same accounting policies, calculation bases and assessments have been applied as in the latest annual report for Netel Holding AB (publ), with the exception of hedge accounting. A more detailed description of the Group’s applied accounting policies as well as new and future changes in standards can be found in the latest published annual report. For a complete description of the Group and the Parent Company’s applied accounting policies, see Note 1 in the 2023 Annual Report and the description below. In addition to the financial statements and their accompanying notes, disclosures pursuant to IAS 34 are provided in the interim information, which comprise an integral part of this financial report. All amounts in this report are stated in millions of Swedish kronor (MSEK) unless otherwise stated. Differences in rounding off may occur. Hedging of net investment in foreign operations In 2024, Netel replaced a bank loan in Swedish kronor (SEK) and signed a bank loan in Norwegian kronor (NOK) amounting to MNOK 200, corresponding to 
MSEK 199 at the time of borrowing. The loan is valued at the exchange rate on the balance sheet date. This loan was identified to secure the net investment in the Norwegian subsidiaries including the Parent Company’s lending to the companies amounting to an equivalent amount (MNOK 200) that was identified as an expanded net investment. Hedge accounting is applied, which is why gains or losses from currency translation of the loan are recognised in other comprehensive income and accumulated in equity to the extent that the hedge is effective. Any ineffective portion of the hedging relationship is recognised in net financial items in the income statement. Accumulative gains or losses recognised in other comprehensive income are presented in a separate item of equity and reclassified from equity to profit or loss as a reclassification adjustment on divestment or part divestment of the foreign operation. The hedge ratio is 1:1 for the hedge and an economic relationship is deemed to exist since the underlying currency risk in the loan and net investment are well matched. The Group did not recognise any ineffectiveness during the period. Warrants Obligations for the Group’s warrants are recognised as personnel costs over the period of service based on the estimated number of rights expected to be vested. The fair value is calculated on the allotment date and recognised in equity. The estimate of the number of shares expected to be vested is reassessed at the end of each reporting period and any differences are recognised in profit or loss with corresponding adjustments made in equity. Synthetic options  Obligations for the Group’s synthetic options are recognised as personnel costs over the period of service based on the estimated number of rights expected to be vested. The fair value of the liability is remeasured at the end of each reporting period and recognised as an employee benefit obligation in the balance sheet. Any changes in fair value are recognised in profit or loss as personnel costs. In the event that synthetic options are forfeited due to the employee not meeting the service conditions, the

===== SIDA 16 =====

16 Netel Holding AB (publ)   Third quarter 2024 report 
liability is derecognised and previously recognised expenses are reversed.  Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker is responsible for allocating resources and assessing the performance of the operating segments. In the Group, this function has been identified as the President and CEO. An operating segment is a part of the Group that conducts operations that earn revenue and incur costs, and for which discrete financial information is available. The Group is categorised into segments based on the internal structure of its business operations, which means that there are three operating segments: the Infraservices, Power and Telecom divisions.  The same accounting policies are used in the segments as for the Group, except for leases in accordance with IFRS 16. Leasing according to IFRS 16 was not allocated on the division level. Consequently, the divisions’ leases are reported as if they were operating leases. The Group presents revenue and earnings before interest, tax and amortisation (EBITA) per segment. Earnings per share Earnings per share before dilution are calculated by dividing net profit attributable to holders of ordinary shares in the Parent Company by the weighted average number of outstanding ordinary shares during the year. Earnings per share after dilution are calculated by dividing net profit attributable to holders of ordinary shares in the Parent Company, adjusted where applicable, by the sum of the weighted average number of ordinary shares and potential ordinary shares that may give rise to a dilution effect. The dilution effect of potential ordinary shares is only reported if a recalculation of ordinary shares would lead to a decrease in earnings per share after dilution. 
Estimates and judgements The preparation of the interim report requires that company management makes assessments and estimates and makes assumptions that affect the application of the accounting policies and the reported amounts of assets, liabilities, revenue and expenses. The actual outcome may differ from these estimates and assessments. The critical assessments and sources of uncertainty in estimates are the same as in the latest published annual report. See Note 1 in the 2023 Annual Report for more information. Operating segments For accounting and monitoring purposes, the Group has divided its operations into three operating segments based on how the Group CEO evaluates the Group’s operations. The three operating segments are the Infraservices, Power and Telecom divisions. The Group CEO primarily uses earnings before interest, tax and amortisation (EBITA) in assessing the performance of the operating segments.  Other adjustments at Group level are included under Group-wide items and eliminations, for example, transaction costs and other Group-wide costs that are not allocated at segment level. Changes in 2024 Starting in the first quarter of 2024, Netel carried out a reorganisation to clarify synergies, better utilise business opportunities and expertise as well as allocate resources between countries based on the nature of the operations. The previous segments Sweden, Norway, Finland, Germany and the UK were replaced by the Infraservices, Power and Telecom divisions which, as of the first quarter of 2024, are recognised as the primary operating segments. The previous segments will be reported as business areas within each division. To increase transparency, restated figures are also presented for all of the remaining quarters and full-year 2023 in accordance with the new operating segments.

===== SIDA 17 =====

17 Netel Holding AB (Publ)  Second quarter 2024 report 
  
   
  
  
Jul-Sep 2024 Infraservices Power Telecom 
Total 
segments 
Group-wide 
items and 
eliminations Group total 
Revenue from external 
customers 221 236 437 893 0 893
Revenue from other segments - - - - - -
Total revenue 221 236 437 893 0 893
EBITA 14 8 13 35 1 36
Jul-Sep 2023 Infraservices Power Telecom 
Total 
segments 
Group-wide 
items and 
eliminations Group total 
Revenue from external 
customers 198 286 401 886 4 890
Revenue from other segments - - - - - -
Total revenue 198 286 401 886 4 890
EBITA 18 25 5 47 -1 46
Oct-Dec 2023 Infraservices Power Telecom 
Total 
segments 
Group-wide 
items and 
eliminations Group total 
Revenue from external 
customers 243 338 449 1,030 -5 1,025
Revenue from other segments - - - - - -
Total revenue 243 338 449 1,030 -5 1,025
EBITA 28 28 8 64 -5 59
Jan-Dec 2023 Infraservices Power Telecom 
Total 
segments 
Group-wide 
items and 
eliminations Group total 
Revenue from external 
customers 776 1,144 1,540 3,460 -0 3,459
Revenue from other segments - - - - - -
Total revenue 776 1,144 1,540 3,460 -0 3,459
EBITA 68 51 23 142 -10 133

===== SIDA 18 =====

18 Netel Holding AB (publ)   Third quarter 2024 report 
Revenue from contracts with customers Currently, the Group only conducts Infraservices in Sweden. Power operations are conducted in Sweden, Norway and Finland. Telecom operations are conducted in all five countries. Telecom only 
encompasses fibre roll-out and service in the UK and Germany. In Sweden, Norway and Finland, Telecom also encompasses roll-out and service of mobile networks. 
 
 
Jul-Sep 2024 Infraservices Power Telecom Group total 
Business area
Sweden 220 143 53 416
Norway - 64 254 318
Finland - 29 68 98
Germany - - 47 47
United Kingdom - - 15 15
Group-wide 1 -0 -0 0Revenue from contracts with 
customers 221 236 437 893
Type of service
Framework agreement 48 23 380 451
Project 172 213 58 443
Group-wide 1 -0 -0 0Revenue from contracts with 
customers 221 236 437 893
Jul-Sep 2023 Infraservices Power Telecom Group total 
Business area
Sweden 198 153 54 405
Norway - 105 228 333
Finland - 29 42 71
Germany - - 45 45
United Kingdom - - 32 32
Group-wide 4 - - 4Revenue from contracts with 
customers 203 286 401 890
Type of service
Framework agreement 55 156 247 459
Project 147 130 153 431
Group-wide - - - -Revenue from contracts with 
customers 203 286 401 890

===== SIDA 19 =====

19 Netel Holding AB (publ)   Third quarter 2024 report 
 
    
Jan-Sep 2024 Infraservices Power Telecom Group total 
Business area
Sweden 606 429 184 1,219
Norway - 256 662 918
Finland - 77 132 208
Germany - - 123 123
United Kingdom - - 61 61
Group-wide 1 2 2 5Revenue from contracts with 
customers 607 764 1,163 2,534
Type of service
Framework agreement 140 219 938 1,296
Project 466 544 224 1,233
Group-wide 1 2 2 5Revenue from contracts with 
customers 607 764 1,163 2,534
Jan-Sep 2023 Infraservices Power Telecom Group total 
Business area
Sweden 534 407 197 1,138
Norway - 287 574 861
Finland - 111 81 192
Germany - - 149 149
United Kingdom - - 91 91
Group-wide 4 - - 4Revenue from contracts with 
customers 538 805 1,091 2,434
Type of service
Framework agreement 142 487 658 1,287
Project 396 318 433 1,147
Group-wide - - - -Revenue from contracts with 
customers 538 805 1,091 2,434

===== SIDA 20 =====

20 Netel Holding AB (publ)   Third quarter 2024 report 
Financial instruments The Group’s financial instruments measured at fair value only refer to contingent considerations and fund holdings (see below). For other financial assets and liabilities, the carrying amounts are good approximations of the fair value. Fair value measurement Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The table below shows financial instruments measured at fair value, based on the classification of the fair value hierarchy. The different levels are defined as follows: Level 1 – Quoted prices (unadjusted) in active markets for identical assets and liabilities. Level 2 – Other observable input data for the asset or liability than quoted prices included in level 1, either direct (i.e. price quotes) or indirect (i.e. derived from price quotes).  Level 3 – Input data for the asset or liability that are not based on observable market data (i.e. unobservable input data). 
Fund holdings The Group holds funds included in the item Financial non-current assets. Fund holdings are measured at fair value by use of quoted prices in active markets for identical assets and are thus found in level 1 of the valuation hierarchy. Contingent consideration For some of the Group’s business combinations, there are contingent considerations. The contingent considerations are dependent on the average EBITA for the business combinations over one to three years. The considerations will be settled in cash.  The contingent considerations are included in the items Non-current non-interest-bearing liabilities and Current non-interest-bearing liabilities in the amount of MSEK 61 (164). The contingent considerations are found in level 3 of the valuation hierarchy. Other holdings and liabilities measured at fair value The Group holds currency futures that are included in the item Current non-interest-bearing liabilities. These currency futures are measured at fair value through indirect calculations from underlying currencies, according to data received from the counterparty/bank, and thus are found in level 2 of the valuation hierarchy.   
  
 
Fund holdings 30 Sep 2024 30 Sep 2023 31 Dec 2023
Opening balance 6 5 5
Investments 1 1 1
Divestments - - -
Change in value recognised through profit or loss - - -
Translation difference - - -
Closing balance 7 6 6
Contingent considiration 30 Sep 2024 30 Sep 2023 31 Dec 2023
Opening balance 162 173 173
Acquisition of subsidiaries and businesses - 9 9
Paid considirations -99 -20 -20
Change in value recognised through profit or loss -4 - 1
Translation difference 1 2 -1
Closing balance 61 164 162

===== SIDA 21 =====

21 Netel Holding AB (publ)   Third quarter 2024 report 
 
  Transactions with related parties No significant changes took place during the year for the Group or the Parent Company in relationships or transactions with related parties compared to what has been described in Note 32 of the 2023 Annual report for Netel Holding AB (publ).  
     
Other liabilities recognised at fair value 30 Sep 2024 30 Sep 2023 31 Dec 2023
Opening balance -1 - -
Changes in recognised liabilities - - -
Change in value recognised through profit or loss 0 - -1
Translation difference - - -
Closing balance -0 - -1
Management 30 Sep 2024 30 Sep 2023
Sales of goods and services - -
Purchase of goods and services - -
Interest income - -
Interest expenses - -
Receivables (closing) - -
Debt (closing) - -

===== SIDA 22 =====

22 Netel Holding AB (Publ)  Second quarter 2024 report 
Condensed income statement for the Parent Company 
 
  Full-year
SEK millions 2024 2023 2024 2023 2023
Operating income
Net sales 6 8 20 19 27
Other operating income - - - - -
Total revenue 6 8 20 19 27
Operating expenses
Personnel costs -3 -4 -13 -10 -16
Other external expenses -2 -2 -6 -6 -7
Operatin profit (EBIT) 1 2 2 3 4
Net financial items 7 8 4 -3 -21
Earnings after financial items 8 10 5 0 -18
Appropriations - - - - 53
Earnings before tax 8 10 5 0 36
Taxes -1 -0 -1 -1 -8
Earnings for the period 7 9 4 -0 28
Jul-Sep Jan-Sep

===== SIDA 23 =====

23 Netel Holding AB (publ)   Third quarter 2024 report 
Condensed balance for the Parent Company 
    Stockholm, 25 October 2024  Jeanette Reuterskiöld  President and CEO  
    
SEK millions 30 Sep 2024 30 Sep 2023 31 Dec 2023
ASSETS
Non-current assets
Shares in subsidiaries 1,622 1,300 1,622
Financial non-current assets 6 4 7
Total non-current assets 1,628 1,304 1,629
Current assets
Receivables from Group companies 780 1,165 755
Other current assets - - 0
Cash and cash equivalents 6 81 84
Total current assets 786 1,246 839
Total assets 2,414 2,549 2,469
EQUITY AND LIABILITIES
Equity
Share capital 1 1 1
Other equity 1,484 1,476 1,480
Total equity 1,485 1,476 1,480Untaxed reserves 23 - 23
Total untaxed reserves 23 - 23
Non-current interest-bearing liabilities 877 933 934
Non-current non-interest-bearing liabilities 8 5 8
Total non-current liabilities 886 938 943
Current interest-bearing liabilities 9 7 7
Current non-interest-bearing liabilities 11 128 15
Total current assets 20 135 23
Total equity and liabilities 2,414 2,549 2,469

===== SIDA 24 =====

24 Netel Holding AB (publ)   Third quarter 2024 report 
Review report   Introduction We have reviewed the interim report for Netel Holding AB (publ) for the period 1 January–30 September 2024. The Board of Directors and the CEO are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review. Scope of Review We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review has a different focus and is substantially less in scope than an audit conducted in accordance with ISA and other generally accepted auditing practices. The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all significant matters that might be identified in an audit. Therefore, the conclusion expressed based on a review does not give the same level of assurance as a conclusion expressed based on an audit. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the interim report is not, in all material respects, prepared for the Group in accordance with IAS 34 and the Annual Accounts Act, and for the Parent Company in accordance with the Annual Accounts Act. Stockholm, 25 October 2024 Deloitte AB  Jenny Holmgren  Authorised Public Accountant

===== SIDA 25 =====

25 Netel Holding AB (publ)   Third quarter 2024 report 
Selected financial information Definitions and a reconciliation of alternative performance measures for Netel Holding AB (publ) are presented here in accordance with the guidelines from the European Securities and Markets Authority (ESMA) regarding the use of alternative performance measures. These guidelines require expanded disclosures regarding the financial measures not defined by IFRS. Alternative performance measures are measures showing historical or future financial results, financial position or  
cash flows that are not defined by IFRS. Netel Group uses alternative performance measures to monitor and describe the Group’s financial position and to provide additional useful information where relevant for the user’s understanding of the financial statements. These performance measures are not directly comparable with similar performance measures used by other companies. The performance measures stated below are presented in the interim report.  Alternative performance measures not defined under IFRS 
 Reconciliation of growth in net sales 
   
  Full-year
SEK millions 2024 2023 2024 2023 2023
Net sales growth (%) 0.3% 14.2% 4.1% 12.9% 29.9%
Organic sales growth (%) 0.3% 9.3% 3.9% 5.0% 7.5%
EBITDA 54 65 140 127 204
EBITDA margin (%) 6.1% 7.3% 5.5% 5.2% 5.9%
EBITA 36 46 87 73 133
EBITA margin (%) 4.1% 5.2% 3.4% 3.0% 3.8%
Items affecting comparability 11 3 18 28 32
Adjusted EBITDA 65 68 158 155 236
Adjusted EBITDA margin (%) 7.3% 7.6% 6.2% 6.4% 6.8%
Adjusted EBITA 47 50 106 101 164
Adjusted EBITA margin (%) 5.3% 5.6% 4.2% 4.1% 4.8%
Net debt 757 798 757 798 610
Net debt/Adjusted EBITDA R12 (Ratio) 3.2 3.2 3.2 3.2 2.6
Equity ratio (%) 37.8% 35.4% 37.8% 35.4% 36.0%
Order backlog 4,019 4,104 4,019 4,104 4,047
Jul-Sep Jan-Sep
  Full-year
SEK millions 2024 2023 2024 2023 2023
Net sales previous period 890 779 2,434 2,157 2,418
Acquired net sales - 38 4 170 541
Organic net sales 893 852 2,530 2,264 2,600
Total net sales growth (%) 0.3% 14.2% 4.1% 12.9% 29.9%
Organic net sales growth (%) 0.3% 9.3% 3.9% 5.0% 7.5%
Jul-Sep Jan-Sep

===== SIDA 26 =====

26 Netel Holding AB (publ)   Third quarter 2024 report 
Reconciliation of EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin 
 Reconciliation of EBITA, EBITA margin, adjusted EBITA and adjusted EBITA margin 
   
  Full-year
SEK millions 2024 2023 2024 2023 2023
Net sales 893 890 2,534 2,434 3,459
Operating profit/loss (EBIT) 34 45 82 70 128
Depreciation and amortisation of tangible and intangible 
assets 20 20 58 57 76
EBITDA 54 65 140 127 204
EBITDA margin (%) 6.1% 7.3% 5.5% 5.2% 5.9%
Items affecting comparability
Acquisition-related costs - 2 - 6 7
Other items affecting comparability 11 1 18 21 25
Total items affecting comparability 11 3 18 28 32
Adjusted EBITDA 65 68 158 155 236
Adjusted EBITDA margin (%) 7.3% 7.6% 6.2% 6.4% 6.8%
Jul-Sep Jan-Sep
  Full-year
SEK millions 2024 2023 2024 2023 2023
Net sales 893 890 2,534 2,434 3,459
Operating profit/loss (EBIT) 34 45 82 70 128
Depreciation and amortisation of intangible assets 2 1 5 3 5
EBITA 36 46 87 73 133
EBITA margin (%) 4.1% 5.2% 3.4% 3.0% 3.8%
Items affecting comparability
Acquisition-related costs - 2 - 6 7
Other items affecting comparability 11 1 18 21 25
Total items affecting comparability 11 3 18 28 32
Adjusted EBITA 47 50 106 101 164
Adjusted EBITA margin (%) 5.3% 5.6% 4.2% 4.1% 4.8%
Jul-Sep Jan-Sep

===== SIDA 27 =====

27 Netel Holding AB (publ)   Third quarter 2024 report 
Reconciliation of net debt and net debt/adjusted EBITDA R12M (Ratio) 
 Reconciliation of equity ratio 
    
SEK millions 30 Sep 2024 30 Sep 2023 31 Dec 2023
Non-current interest-bearing liabilities 955 1,005 1,003
Current interest-bearing liabilities 50 75 53
Total interest-bearing liabilities 1,005 1,080 1,056
Cash and cash equivalents 249 281 446
Net debt 757 798 610
Adjusted EBITDA R12 239 247 236
Net debt/Adjusted EBITDA R12 (Ratio) 3.2 3.2 2.6
SEK millions 30 Sep 2024 30 Sep 2023 31 Dec 2023
Total equity 1,149 1,113 1,133
Total assets 3,036 3,139 3,146
Equity ratio (%) 37.8% 35.4% 36.0%

===== SIDA 28 =====

28 Netel Holding AB (publ)   Third quarter 2024 report 
Definitions and reasons for use Performance measures Definition Reason for use EBITA* Earnings before amortisation of intangible assets EBITA is used to analyse the profitability generated by the underlying operations EBITA margin* EBITA as a percentage of net sales The EBITA margin is used to illustrate the underlying operations’ profitability EBITDA* Earnings before interest, taxes, depreciation and amortisation. EBITDA is used to analyse the profitability generated by the underlying operations EBITDA margin* EBITDA as a percentage of net sales The EBITDA margin is used to illustrate the underlying operations’ profitability Adjusted EBITA* EBIT before amortisation of intangible assets, adjusted for items affecting comparability Adjusted EBITA is used to analyse the profitability generated by the underlying operations Adjusted EBITA margin* Adjusted EBITA as a percentage of net sales The adjusted EBITA margin is used to illustrate the underlying operations’ underlying profitability Adjusted EBITDA* Earnings before interest, taxes, depreciation and amortisation, adjusted for items affecting comparability Adjusted EBITDA is used to analyse the underlying profitability generated by the underlying operations Adjusted EBITDA margin* Adjusted EBITDA as a percentage of net sales The adjusted EBITDA margin is used to illustrate the underlying operations’ underlying profitability Items affecting comparability* Items affecting comparability are revenue and expenses of a non-recurring character such as capital gains from divestments, transaction costs in connection with M&As or capital raises, larger integration costs for acquisitions or planned reconstructions, and expenses following strategic decisions and major reconstructions that result in a discontinuation of operations 
Items affecting comparability are used to highlight the income items that are not included in the operating activities to create a clear view of the underlying earnings trend 
Cash flow from operating activities Cash flow attributable to the company’s main income-generating operations and operations other than investing activities and financing activities 
The measure is a performance measure defined by IFRS 
Net sales The total of sales proceeds from goods and services less discounts provided, VAT and other tax related to the sale The measure is a performance measure defined by IFRS

===== SIDA 29 =====

29 Netel Holding AB (publ)   Third quarter 2024 report 
Organic growth* Sales growth excluding material acquisitions in the last 12 months  The measure shows the size of the company’s total growth that is organic growth Order backlog The remaining order value on the balance sheet date for contracted projects and estimated future volumes from framework agreements 
Used to show contracted future net sales attributable to projects 
Profit/loss before tax Profit for the period before tax The measure is a performance measure defined by IFRS Earnings per share (SEK) Earnings per share before and after dilution attributable to holders of ordinary shares in the Parent Company The measure (before and after dilution) is a performance measure defined by IFRS 
Net debt* Interest-bearing liabilities (current and non-current) less cash and cash equivalents The measure shows the size of the company’s total assets financed via financial liabilities, taking into account cash and cash equivalents and is a component in assessing financial risk Equity ratio* Equity as a percentage of total assets The measure shows the share of the company’s total assets financed by the shareholders through equity    * The KPI is an alternative performance measure according to ESMA’s guidelines

===== SIDA 30 =====

30 Netel Holding AB (publ)    Third quarter 2024 report 
  Webcast presentation and teleconference Jeanette Reuterskiöld, President and CEO, and Fredrik Helenius, CFO, will present the interim report on Friday, 25 October at 9:00 a.m. (CEST) in a webcast. Questions may be asked both online and by phone. Presentation material is also available at https://netelgroup.com/en/investors/reports-and-presentations/. The presentation will be held in English.  If you want to participate through the webcast, use the link https://ir.financialhearings.com/netel-group-q3-report-2024. It will be possible to submit written questions during the webcast. If you want to ask questions orally via teleconference, please register through the link https://conference.financialhearings.com/teleconference/?id=50048841. After registration, you will receive a telephone number and ID to log in to the conference. It will be possible to ask questions orally during the teleconference.  Financial information This report, previous interim reports and annual reports are available at https://netelgroup.com/en/investors/reports-and-presentations/.  Calendar   Fourth quarter and Year-end Report 2024 Annual and Sustainability Report 2024 First quarter 2025 Second quarter 2025 Third quarter 2025 Fourth quarter and Year-end Report 2025 
7 February 2025 Week beginning 31 March 25 April 11 July 24 October 6 February 2026  
 This information is such that Netel Holding AB (Publ) is obliged to make public in accordance with the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons below, on 25 October 2024 at 7:30 a.m. CEST.  For further information, contact: Jeanette Reuterskiöld, President and CEO  Fredrik Helenius, CFO  Åse Lindskog, IR +46 70 228 0389  +46 73 085 5286  +46 73 024 4872 jeanette.reuterskiold@netel.se  fredrik.helenius@netel.se  ase.lindskog@netelgroup.com 
Netel in brief With over 20 years of experience, Netel is a leader in the development and maintenance of critical infrastructure in Infraservices, Power and Telecom in Northern Europe. We are involved in the entire value chain from design, production and maintenance of our customers’ facilities. We are dedicated to securing an accessible and reliable future, where technology unites and transforms society. Netel reported net sales of MSEK 3,500 in 2023 and the number of employees in the Group is approximately 860. Netel has been listed on Nasdaq Stockholm since 2021. Read more at netelgroup.com.  FOUNDED IN EMPLOYEES  NET SALES IN 2024 R12M  ADJUSTED EBITA IN 2024 R12M 
2000 865 3,559 MSEK 169 MSEK