Eltel

April-June 2024

• Net sales EUR 216.0 million (208.1). Total growth 3.8% and organic growth¹⁾ in segments 5.3%
• Adjusted EBITDA EUR 8.4 million (5.6)
• Adjusted EBITA²⁾ EUR 0.5 million (-1.5) and adjusted EBITA margin 0.2% (-0.7)
• Adjusted EBITA²⁾ in segments EUR 3.6 million (2.1) and adjusted EBITA margin in segments 1.8% (1.1)
• Operating result (EBIT) EUR 0.5 million (-1.5) and EBIT margin 0.2% (-0.7)
• Net result EUR -2.7 million (-4.6)
• Earnings per share EUR -0.02 (-0.03), basic and diluted
• Cash flow from operating activities EUR -2.2 million (-2.2)

January-June 2024

• Net sales EUR 392.3 million (396.5). Total growth -1.1% and organic growth¹⁾ in segments 1.0%
• Adjusted EBITDA EUR 12.0 million (8.0)
• Adjusted EBITA²⁾ EUR -3.5 million (-7.0) and adjusted EBITA margin -0.9% (-1.8)
• Adjusted EBITA²⁾ in segments EUR 2.8 million (0.0) and adjusted EBITA margin in segments 0.8% (0.0)
• Items affecting comparability EUR -23.1 million (-6.1)
• Operating result (EBIT) EUR -26.7 million (-13.1) and EBIT margin -6.8% (-3.3)
• Net result EUR -33.2 million (-19.7)
• Earnings per share EUR -0.22 (-0.13), basic and diluted
• Cash flow from operating activities EUR -7.1 million (-25.9)
• Net debt EUR 127.9 million (141.6)

Significant events during the reporting period

• On 7 June, it was announced that the divestment of Eltel's High Voltage business in Poland was finalized on 6 June. After completion of the divestment, Eltel no longer has any High Voltage business in Poland.
• During the second quarter, Eltel signed new contracts with a combined value of about EUR 317 million (164) and increased the value of the total orderbook³⁾ to EUR 1.3 billion (1.2). Read more on page 13.
• On 7 May, it was announced that Eltel Sweden and Swedish Defence Materiel Administration (FMV) have signed a framework agreement for installation and contracting services for FMV's air bases. The maximum contract period is seven years with an estimated value of EUR 21 million.
• On 13 June, it was announced that Eltel Norway signed a three-year continuation of a current agreement with Telenor with an estimated value between EUR 90-180 million.
• On 17 June, it was announced that Eltel Finland and Elisa prolong their partnership with a frame agreement for the coming two years valued at approximately EUR 62 million.

Key figures

1) Organic growth is adjusted for currency effects.

2) Eltel follows the profitability of segments with adjusted EBITA, which does not include restructuring costs and other items affecting comparability. Please see pages 25-26 for definitions of the key ratios.

3) Total orderbook includes the committed order backlog and the best estimate for uncommitted remaining parts of frame agreements until the end of the

agreement.

Comments by the CEO

I am happy to see both higher net sales and stronger profit in three out of four segments. Organic growth in the segments amounted to 5.3% and for the Group growth was 3.8%.

Adjusted EBITA increased by EUR 2.0 million and the adjusted EBITA margin increased to 0.2% (-0.7). In the segments, adjusted EBITA increased by EUR 1.5 million and the margin was 1.8%. Our structured work to improve profitability has yielded results, and we are seeing increased profitability in particular in Power Services in Finland.

During the second quarter, we were pleased to sign new contracts worth EUR 317 million (164) and increased our total orderbook to EUR 1.3 billion (1.2). The work to broaden the customer base in accordance with our strategy has contributed to the positive development of the orderbook. Our activities in new business, including solar park projects, e-Mobility (charging infrastructure) and BESS (energy storage), are starting to show. In the new business areas, we signed new contracts worth EUR 14.6 million (4.1).

Continued negative development in Norway with declining volumes shows that there is a further need to adjust the operations. The Group's result was also weighed down by a negative result in Other business, partly driven by production losses in Germany, caused by extensive flooding in southern Germany.

In all Nordic countries telecom operators have reduced their investments, except in Finland where a major fiber rollout is underway. We have intensified our efforts to broaden our customer base, as well as to develop our organization and business.

When it comes to Power, the situation is the opposite. The update of the Finnish market regulation has impacted our services in Power Distribution negatively in Finland, while the demand for services in Power continued to increase in the other Nordic countries.

Finland showed both growth and improved profitability. In Communication, we saw strong growth in FTTH (fiber-to- the-home). In Power, we had growth in Power Transmission but declining volumes in Power Distribution, caused by the updated market regulation.

Sweden also showed both growth and a slightly improved profitability. The main factor behind the growth was a good demand in Power, especially in Smart Grids, which compensated for the decline in Communication. The work to regularly adapt the organization continues.

Norway is the one of Eltel's markets that has been hardest hit by the reduced investments in Communication. Cost reduction measures have been implemented and further initiatives will be taken. The negative trend levelled off during the quarter. The work of scaling up already won contracts and the development of new business has intensified and is starting to yield results.

In Denmark, we saw good growth in the second quarter, as anticipated. Although two contract endings in Q1 impacted the profitability, the quarterly result landed slightly better than last year. As in the closest neighboring countries, demand was declining in classic Communication, while growth in Power was strong.

On 6 June, we completed the divestment of our High Voltage business in Poland. The transaction creates value for both us and our shareholders through reduced risk and complexity.

Going forward, we are fully focused on strengthening margins, broadening the customer base and intensifying our activities in our new business areas, while continuously developing the operations.

Eltel has a very important role in our society, which is reinforced by the current global situation with increased demands to maintain a secure and stable infrastructure.

Håkan Dahlström, President & CEO

For further information, please contact:

Tarja Leikas, CFO

Phone: +358 40 730 77 62, tarja.leikas@eltelnetworks.com

Alexandra Kärnlund, Director, Communications

Phone: +46 70 910 0903, alexandra.karnlund@eltelnetworks.com

This information is information that Eltel AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 08:00 CEST on 25 July 2024.

About Eltel

Eltel is the leading service provider for critical infrastructure that enables renewable energy and high-performing communication networks. Eltel designs, plans, builds and secures the operation of networks for a more sustainable and connected world today and for future generations. In total, we have about 5,000 employees and in 2023 the annual sales was EUR 850.1 million. The head office is located in Sweden and Eltel's shares have been listed on Nasdaq Stockholm since 2015. Read more at www.eltelnetworks.com.