Five reasons to invest in Netelinfra
.1
Markets are driven by strong megatrends
The markets for critical infrastructure are driven by three powerful megatrends: climate change, digitalisation and the need to modernise the infrastructure. Climate change is leading to the electrification of society, which means that the capacity of power grids must be expanded. The introduction of more renewable energy sources, such as solar panels, also requires investments in the power networks. The digitalisation of society demands greater capacity from the networks for fixed and mobile traffic. Countries that still have old cable and copper networks, such as the Germany, need to invest in fibre to cope with digitalisation. Large parts of the infrastructure for water and sewage in Europe are obsolete and in urgent need of modernisation. These megatrends put us in a good position to continue growing in the long term.
.2
Growing organically through competent employees and good managers
Our employees are our most important asset and Netelinfra’s success depends on the skills and dedication of its employees. We believe that motivation is created through freedom with responsibility, short decision-making paths and close dialog between all employees. Further development and safe workplaces are fundamental to creating a good working environment. We place clear requirements on managers to take responsibility for both daily operations and every employee’s well-being and development. Leadership assumes working in a solution-oriented way together with the employees and external parties. With motivated, competent employees and good managers, we can continue to develop our business and grow organically with both new and existing customers.
.3
Focus on profitability
The new Group, Netelinfra, focuses on profitable growth and low debt, with the overarching goal of creating value for our shareholders. We also expect the merger to generate cost synergies of approximately SEK 50 million annually through savings in overlapping functions and the creation of larger units – for instance, within procurement. Over time, significant revenue synergies are expected, driven by complementary services and geographic presence, as well as increased scale that enables new strategic initiatives. The EBITA margin is expected to rise as a result of these synergies and the continued normalisation of underlying profitability.
.4
Ambitious sustainability work
Strong awareness of sustainability with respect for the environment, climate and human rights is a prerequisite for creating a strong employer brand, motivated employees and good long-term customer relationships. We actively work with customers and suppliers to reduce greenhouse gas emissions together. The Science Based Targets initiative (SBTi) has validated our emission targets. We are convinced that active sustainability work and science-based climate targets are necessary prerequisites for continuing to be a sought-after supplier of critical infrastructure.
.5
Well-diversified order backlog
Through the merger, we have gained a larger and well-diversified order backlog, comprising both public and private sector clients across various geographies. A high proportion of recurring revenue — derived from long-term framework agreements with municipal entities, government agencies, the defense sector, energy companies, and telecom operators —provides us with strong visibility.