Always connected, always powered.
We make it happen by transforming society
for a sustainable future.
Annual Report
2024
Contents
Overview
Eltel in brief .............................................................................3
The year in brief .....................................................................4
CEO comment ........................................................................ 5
Trends transforming the infranet sector ..........................7
Why invest in Eltel? ................................................................8
Our values ...............................................................................9
Our strategy and targets ....................................................10
Operations ...................................................................12
Our offering and markets ..............................................13
— Communication business area ....................................14
— Power business area ......................................................15
Segments
— Finland ...............................................................................16
— Sweden ..............................................................................19
— Norway ..............................................................................21
— Denmark ............................................................................23
— Other business .................................................................25
Sustainability Report 26
General information ............................................................27
Strategy, business model and value chain .....................28
Sustainability governance .................................................32
Environmental information ...............................................34
— EU Taxonomy ......................................................................38
Social information ...............................................................44
Governance information ....................................................49
Auditor’s opinion re. the Sustainability Report ..............51
Board of Directors’ report 52
Risk management ...............................................................56
Governance 60
Corporate Governance report ...........................................60
Board of Directors ...............................................................65
Group Management Team ................................................66
Financial reports 67
Consolidated financial statements .................................67
Notes to consolidated financial statements .................72
Parent Company financial statements ...........................98
Notes to the Parent Company financial statements . 101
Signatures .......................................................................... 104
Auditor’s report ................................................................. 105
Other 109
The Eltel share .................................................................. 110
Five-year summary ........................................................... 112
Quarterly figures ............................................................... 113
Definitions and key ratios ............................................... 115
Contact information ........................................................ 116
Financial Calendar
13 May 2025 — Annual General Meeting 2025
30 April 2025 — Q1 interim report 2025
24 July 2025 — Half-year report 2025
30 October 2025 — Q3 interim report 2025
February 2026 — Full-year report 2025
Annual Report 2024 2
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Eltel in brief
Eltel is the leading Nordic infrastructure and service provider
for critical communication and power networks – infranets.
Transforming how we power and connect the world
Everyone depends on stable communication and
power networks. Eltel designs, builds, maintains and
upgrades these critical lifelines of modern society for
national network operators and owners.
Our business areas
Within our business area Communication, Eltel estab-
lishes high-performing networks and supports the
societal need for greater digitalization. We design, install,
upgrade and service mobile and fixed communication
networks, including mobile indoor solutions.
Within our business area Power, we enable the electrifi-
cation of society. We install, maintain and upgrade elec-
tricity distribution and transmission infrastructure, and
provide turnkey solutions for smart grids, e-Mobility,
solar power, wind power and Battery Energy Storage
Systems (BESS).
We are increasingly combining our unique communica-
tion and power expertise on projects. Data centers, for
example, may include both communication and power
services.
Eltel operates in the Nordic countries, Germany and
Lithuania within country-based organizations that have
full responsibility for their own financial performance.
Finland
357.7 1,478
Sweden
211.8 950
Norway
114.9 761
Denmark
92.0 487
Other business
61.9 693
BUSINESS AREAS PRODUCT AREAS OFFERING MARKETS CUSTOMERS NET SALES
Communication
Market leader in the Nordics.
»More on page 14.
• Fixed telecom
• Mobile telecom
• Fixed wireless access
• Mobile indoor
• Data centers
• Design, installation,
upgrading and servicing
• The Nordics
• Lithuania
• Telecom operators and
network owners
• Industrial customers
• Public sector
61%
Power
A key player in the Nordics.
A niche actor in Germany.
»More on page 15.
• Power distribution
and transmission
• Smart grids
• e-Mobility
• Renewable energy
• Data centers
• Design, build, mainte-
nance, upgrades and
turnkey solutions
• The Nordics
• Germany
• Lithuania
• Network owners and
operators
• Industrial customers
• Public sector
• Utility companies
39%
NET SALES
EUR million
EMPLOYEES
FTE, average
What are ”smart grids”?
A smart grid is an electricity
network that uses advanced
digital technologies to
monitor and manage the
supply of electricity to meet
legislation as well as the
varying electricity demands
of end users. Smart grids
can improve the efficiency,
reliability and sustainability
of electricity production,
distribution and
consumption.
What are ”infranets”?
The term combines the
words ”infrastructure” and
”networks” and refers to
both the communication
and power infrastructure
networks that Eltel delivers.
Segments
Other business
Annual Report 2024
3
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
The year in brief
2024 highlights
Polish High Voltage business divested
Eltel divested its High Voltage business in Poland in the
second quarter. The divestment is expected to create
value for Eltel and its shareholders by minimizing the
complexity and risks associated with project work
outside the Nordics and allowing a greater focus on
core markets.
Continued focus on operational and
commercial efficiency
All Country Units continued to improve their operational
excellence – to promote profitability, quality and cus-
tomer satisfaction. This involved improvements in
project management, more specifically in resource
optimization and planning, including a more efficient
use of subcontractors. Our commercial excellence
initiatives focused on boosting profitability within our
current operations, including price increases and
renegotiations of commercial terms.
Broadened customer base
During the year we have expanded our customer base,
both in Communications, mainly within public infrastruc-
ture and defence, and in Power, where our broad service
portfolio attracted a diverse customer base.
Position taken in utility scale solar parks
During the year Eltel has delivered solar park projects
in Finland, Denmark and Sweden. The largest park is
Hallstavik (64 MWp) 100 km north of Stockholm, in
which Eltel is delivering all electrical works. There is a
true momentum for solar parks in the Nordics and Eltel
is taking a position as a stable and trustworthy turnkey
contractor with local expertise.
First battery energy storage project completed
The BESS (Battery Energy Storage System) market is
growing and during the year Eltel delivered its first
projects in Denmark and Finland. Eltel has taken the
role as a turnkey solution provider for industrial
customers as well as utility developers.
Capitalization on e-Mobility opportunities
throughout the Nordics
Electric vehicle charging station projects were carried
out for customers in Norway, Finland, Sweden and
Denmark. We see a growing demand for our e-Mobility
services on all markets, especially from the heavy
transport and logistics industries.
Green offering intensified
The Eltel Green Choice concept was launched to
highlight more sustainable project alternatives to
customers. The first Green Choice project began
for Helen Electricity Network in Helsinki, Finland.
KEY FIGURES
828.7
Net sales, EUR million
10.5
Adjusted EBITA, EUR million
863.3
Signed contracts, EUR million
1.3
Adjusted EBITA margin, %
4,550
Average number of employees,
FTE
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
4 Annual Report 2024
Eltel’s CEO and President Håkan Dahlström reflects on Eltel’s
financial performance and strategic progress in 2024.
How would you summarize Eltel’s performance
in 2024?
2024 was a year of improved profitability. Three out of
four segments delivered as expected, and Norway fell
behind expectations. Our core Communication and
Power businesses performed well, at the same time
as net sales from new business areas increased signifi-
cantly. We made solid progress on our strategy across
the Nordics, positioning ourselves for continued positive
development in 2025.
How did the Country Units perform during the year?
We saw broad profitability improvements in Finland,
driven by FTTH (fiber-to-the-home) and our Power
services business. In Sweden, our Smart Grids projects
delivered better than expected along with our Communi-
cation business, and we saw growth in public infrastruc-
ture. Faced with significantly lower market activity in
Norway, due to lower investments in Communication
impacting the volumes negatively, we resized our
Norwegian organization to better align with the antici-
pated future market need. We managed a shift toward
Power projects in Denmark, which resulted in the Power
business compensating for the decline in Communica-
tion. In the new areas we saw a rapid growth in market
demand in BESS, and we delivered our first projects in
Denmark and Finland.
Solid progress with strong growth
potential going forward
Annual Report 2024 5
OverviewCEO statement Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Tell us more about the development of these new
business areas
Building on our Communication and Power capabilities,
we are establishing ourselves as a key player in several
new markets with growing opportunities:
Solar – we are drawing on our vast experience with large
roll out projects to capitalize on rapid growth in the
development of solar parks, particularly in Finland and in
Sweden.
BESS – we won several new BESS contracts in Denmark
and Finland during the year.
e-Mobility – we are becoming an established turnkey
provider of large electric charging projects.
Data centers – we are seeing increasing demand to
establish very large data centers in the Nordics where
we can combine our communication and power
competence.
We will strive to scale up opportunities in these new
business areas in 2025 and beyond.
Are there opportunities to deliver several of these
new business areas on single customer projects?
Absolutely! First Data centers are by itself an area where
we can combine our strengths in Power and Communi-
cation. We are also in discussion with several customers
on combining solar, e-Mobility and BESS on projects.
One other fantastic example is a contract that we won
late 2024, in which we combine a high voltage overhead
line, a substation and a large PV Solar park into one solu-
tion. Customers appreciate our ability to deliver
everything in these kinds of projects, which is often quite
unique in the market and will certainly create new
business opportunities going forward.
How are you working to develop profitability?
At Eltel, we’re building our culture of being a profitable
customer-orientated company by being proactive on
both cost efficiency and commercialization. We are
continuing to work with our own internal efficiency in
how we design, plan and execute our business. On the
commercial side, we have been successful in improving
our commercial conditions with customers, including
price, invoicing and payment – particularly when
renegotiating agreements.
What challenges were there during the year?
Our main challenges were related to the significantly
lower activity levels in Norway and some delayed project
investments in other markets. Shifting trends in
Communication and Power opportunities tested our
agility, but I think that our Country Units managed these
challenges well.
What key things have you done to further your
sustainability ambitions during the year?
We continued to reduce the impact of our operations by
switching to electric vehicles, using biodiesel instead of
fossil diesel and sourcing renewable electricity in our
sites and offices. Influencing our subcontractors also
remains important, such as by placing sustainability
demands on how they work on our sites and encourag-
ing them to set their own science-based climate targets.
We also stepped up how we work with customers on
sustainability during the year by proposing green alter-
natives. We had a few projects where customers took us
up on our alternative green proposals, and we would like
to do more of this going forward.
How are Eltel’s new values shaping the company?
Our values are strengthening our culture, setting clear
expectations for professional behaviour and fostering
mutual respect. The values are also our guiding
principles for making decisions, both from a business
perspective and from a leadership and personnel
perspective.
Do you have any final thoughts?
I am proud of how well our teams overcame the chal-
lenges we faced during the year, and that we have made
great progress in new and adjacent business across our
markets. Thanks to the dedication of our colleagues,
we’re well-positioned for 2025 with a larger orderbook
than in many years. We are committed to continuously
driving profitability and expanding our business further
within the Nordics. Even if investments and activities in
the Nordic societies for a more sustainable future, based
on the digitalization and electrification of society is sig-
nificant, I believe that we’re only at the beginning of this
transformation. Eltel has a very important and growing
role in this development.
On my radar for 2025
• Complete the turnaround of our Norway
business.
• Continue to develop our new business areas.
• Promote green project choices among
customers in all our markets.
• Continue to drive operational excellence
throughout our operations.
We signed contracts with 178
new customers and 13% of the
total contract value was related
to new business areas.
What drove performance in 2024?
We achieved improved profitability performance every
quarter compared to the previous year. We have now six
quarters of improved profit year-on-year. One major
milestone was the sale of our Polish High Voltage
business, that despite being a difficult decision, helped
to de-risk our operations, boost working capital and
strengthen our foundation for future growth.
What progress was made in executing the 2023–25
strategy?
We delivered on our strategy by:
1. Improving our profit in our core business of
Communication and Power.
2. Broadening our customer base by looking at where we
can add value in the market – such as by expanding to
serve public infrastructure and industry customers.
3. Establishing ourselves in new and adjacent markets,
including Solar PV, BESS, e-Mobility, data centers, and
indoor/private networks.
The fact that all our Country Units both broadened their
customer bases and delivered net sales in each of our
new business areas demonstrates that we are delivering
on our strategy. We signed contracts with 178 new cus-
tomers in 2024 and closed the year with an impressive
total contract value of EUR 863,3 of which 13% was
related to new business areas.
Annual Report 2024 6
OverviewCEO statement Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Trends transforming the infranet sector
Megatrends such as digitalization, electrification, hybrid working and
climate change, as well as EU regulation, are fueling a growing demand
for the installation, upgrade, maintenance, and security of communica-
tion and power networks, including renewable energy solutions.
Meeting societal demands for sustainable energy
and digitalization
Infranets are increasingly essential lifelines for modern
society that meet the everyday needs of businesses
and individuals of reliable communication and power
networks.
Communication networks support hybrid working and
the digitalization of society. Power networks enable a
more sustainable and low-carbon society by providing
the infrastructure and services for electrification, electric
vehicles and renewable energy generation.
Market trends shape the sector
The infranet sector is constantly changing due to global
trends affecting society. This creates challenges for
businesses but also huge market opportunities as the
sector evolves.
Renewable energy and digitalization are increasingly
important for both customers and end users. Advance-
ments in AI are having far-reaching implications
throughout society.
The key market trends, how they impact the sector
and how the infranet sector is responding are summa-
rized below.
Requirements for a more resilient
power and telecom infrastructure
AI entering more parts
in society
Increased demand for
renewable energy
Transition to smart energy
and digital solutions
Cyber threats and
geopolitical conflicts
IMPACT ON
THE SECTOR
SECTOR
RESPONSE
• Current networks have a need for
increased redundance
• Growing need to upgrade public
infra structure
• Fast technology shifts requires
flexible and agile actions
• Increased demand of electricity
• Demand for Renewable Energy Sources
(RES)
• Networks are under pressure to deliver
smart solutions for managing and
optimizing infranets
• Increased demands on network reliability
and surveillance
• Greater security demands throughout the
procurement, installation, maintenance and
operational phases
• Infrastructure upgrades
• Network investments
• Investments in data centers, private
cloud and supporting infra structure
• Investments in wind and solar energy
and BESS
• Network investments in load management
• Network and capacity upgrades and the
seamless integration of the latest smart
solutions
• Increased risks are mitigated by providing
additional safeguards and security through-
out the value chain
Annual Report 2024 7
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Why invest in Eltel?
Investing in Eltel provides access to key growth markets in the Nordic communi-
cation and power sectors. Our customer-centric solutions and services not only
foster innovation but also help build a more resilient and sustainable society.
The infranet sector is evolving rapidly, fueled by mega-
trends such as digitalization, electrification, hybrid work
and climate change (read more about these trends on
page 7). There are significant growth opportunities in
Northern Europe, driven by ongoing trends and substan-
tial investments in network capacity, load management,
smart grids, energy efficiency and renewable energy.
Growth markets for sustainable profitability
We operate in markets with good long-term growth
opportunities – including traditional communication and
power, as well as rapidly expanding markets related to
e-Mobility, solar energy and BESS.
Unique position to support complex projects
Our unique expertise in both communication and power
sets us apart in the market. This competitive advantage
enables us to deliver complex turnkey solutions that
require both communication and power competence,
for instance, solutions for data centers. Additionally,
we are offering innovative combinations of solar energy,
BESS and e-Mobility.
Commercial development focus
We have a robust pipeline, with a favourable business
mix, and are enhancing our organizational capabilities
and cross-border business development opportunities
to enter new and adjacent markets. Since late 2022, we
have secured new commercial terms with customers
that protect us against inflation and enable a positive
development in terms of gross profit, cashflow and net
working capital. In the recent years we have started to
transform the company from serving mainly few large
telecom operators with a narrow offering towards
addressing a rapidly developing market with a diverse
customer base and a high demand with a broadened
offering portfolio.
Sustainably managed operations
Sustainability is a core component of our strategy and
values. We ensure full compliance with regulatory and
customer requirements in environmental, social, and
governance-related topics. Additionally, we consistently
offer innovative and more sustainable ways to operate
throughout the value chain. Our sustainability progress
is demonstrated in our Sustainability Report (p. 27) and
through various sustainability frameworks. We have vali-
dated SBTi climate targets, and our progress is evalu-
ated annually by CDP (Carbon Disclosure Project). Our
goal is to be the industry’s most responsible company.
Annual Report 2024 8
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Our values
Eltel’s values align seamlessly with our vision and strategy, shaping the company’s
culture, guiding our behaviour, and our decision-making. Our values are grounded in
a shared vision for the future. They inspire our teams and empower us to forge our
own path in the industry. All our employees were invited to contribute to the
formulation of our values. The four values are:
Create opportunities
We are proactive and drive our colleagues, partners
and customers to go further and beyond expecta-
tions. We think ahead and find solutions – in both a
profitable and sustainable manner. Our customers rely
on us to challenge them, even when the status quo is
more convenient.
Always professional
We earn the trust of society through our extensive
industry knowledge and our track record of never
compro mising on safety and quality. Close collabora-
tion with customers and partners allows us to meet
their holistic needs. Regardless of role or situation,
we always do our best to meet our commitments
and deadlines.
Care for life
We put safety first, which involves following safety guide-
lines and have access to the right equipment to ensure
that everyone returns home safely every day. We promote
good working environments and help our employees find
a healthy work-life balance. Care for life also includes our
responsibility for the environment and the climate.
Combine strengths
Combining our skills, strengths and perspectives is
essential to succeed in a competitive market.
We collaborate closely with our customers and our
partners and always strive to work across teams,
business areas and countries. We seek to create
inclusive ways of working where we can unlock the
benefit of diversity.
Annual Report 2024 9
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
ELTEL’S STRATEGY
Through the implementation of our strategy, we will
continue to develop, grow and invest – to ensure
long-term value creation for the company, its
shareholders and society at large.
The strategy is enabling Eltel to:
• Improve the efficiency and profitability of its
business
• Broaden its customer base
• Grow in new and adjacent markets
• Integrate sustainability as part of its offerings and
operations
• Develop its concepts and commercial capabilities
• Implement new business models and expand our
position in the value chain
Vision
Where to play
How to win
Values
ELTEL’S VISION
• Always connected, always powered – we make it
happen by transforming society for a sustainable future
• Expand our customer base in adjacent segments
• Growth in current business offering – Power and
Communication
• Growth in new business offerings – renewable energy,
BESS, e-Mobility, mobile indoor and data centers
• New business models
• Drive efficiency
• Integrate sustainability into our operations
• Develop our mindset and proactivity
• Create opportunities
• Always professional
• Care for life
• Combine strengths
Our strategy and targets
In 2024, we continued to deliver on our strategy to build the foundation for
sustainable profitable growth through increased sales and profitability.
Annual Report 2024 10
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Our strategic targets
Group operative EBITA margin
Employee satisfaction
1
(0–5)
Annual growth
Lost Time Injury Frequency
2
(LTIF)
Customer satisfaction (0–100)
SBTi commitment
3
(Scope according to validated targets)
Leverage (net debt/EBITDA)
Short term sick leave
5%
3.75
2-4%
0
75
1,2&3
1.5-2.5
<3.0%
REFINING OUR STRATEGY
As we executed our strategy during the year, we refined
our strategic objectives to focus on operational effi-
ciency improvements and commercial excellence –
with the overall objective to improve our profitability.
Each Country Unit developed a plan outlining their
business development goals and targets for 2027.
As part of our strategy implementation, we adopted an
Objectives and Key Results (OKR) framework to estab-
lish ambitious goals with measurable outcomes.
Green business – key to boost new business
Eltel is building on its Communication and Power
expertise to create new opportunities within renewable
energy, e-Mobility and BESS.
During the year, we launched ”Green Choice”, our
initiative to offer more sustainable options to custom-
ers. Combined with our ability to provide quality-assured
emissions data, Green Choice delivers real value by
helping customers meet their sustainability goals.
1)
Employee Net Promoter Scores (eNPS) on a country level to assess employee
job satisfaction based on their willingness to recommend Eltel to others.
2)
LTIF is the lost time injuries per million working hours by Eltel employees.
3)
Read more in the Sustainability Report on page 35.
Annual Report 2024 11
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Operations
Our offering and markets ...................................................13
— Communication business area ....................................14
— Power business area ......................................................15
Segments
— Finland ...............................................................................16
— Sweden ..............................................................................19
— Norway ..............................................................................21
— Denmark ............................................................................23
— Other business .................................................................25
Annual Report 2024
12
Overview GovernanceSustainability OtherFinancial reportsBoard of Directors’ reportOperations
Our offering and markets
Eltel provides a comprehensive range of communication and power services in
markets with strong growth. These markets are fueled by the increasing societal
demand for electrification and digitalization.
Fixed telecom
Fiber penetration is high in in the Nordics and upcoming
projects will be smaller than the previous ones. There
are increasing opportunities to renew and upgrade
existing fiber networks in the Nordics as well as growing
demand from public infrastructure entities.
Mobile indoor
Mobile indoor and private 5G networks are growing
markets for Eltel. This includes both public and private
mobile indoor infrastructure solutions.
Fixed wireless access
The fixed wireless access market continues to grow and
Eltel is increasingly delivering services related to private
networks. These local networks can ensure good 5G
coverage throughout buildings.
Mobile telecom
Eltel is a frontrunner in the substantial 5G mobile com-
munication market in the Nordics. The majority of the
rollout is done but there is a need to densify and further
enhance the network and dismantle the old 2G and 3G
networks.
Power distribution and transmission
The need to upgrade aging power infrastructure remains
strong. A significant driver for upgrading regional net-
works is the need to integrate renewable energy sources
and electric vehicle charging infrastructure into the
electricity grid. Eltel also enables industry customers
of fossil fuels.
Smart grids
The demand for smart grids continues in markets such
as Germany and Sweden, where we have major ongoing
rollouts.
Renewable energy, e-Mobility and BESS
The demand for renewable energy and electric vehicle
charging infrastructure is strong in all our geographic
markets. Along with BESS (Battery Energy Storage
System), these markets are growing and will provide
important growth drivers for Eltel. There are also oppor-
tunities to combine these offerings, such as by combin-
ing solar energy, BESS and electric vehicle charging on
the same project.
Data centers
Eltel can combine its communication and power
expertise to meet the needs of data center customers
for high voltage and high-speed communication
connections. This combined offering is often unique
in Nordic markets and allows Eltel to be a full-service
provider for data center customers.
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Annual Report 2024 13
Communication business area
We optimize communication networks to address society’s growing
demand for digitalization, transforming how people live, work and play.
Modern, high-capacity communication networks drive
the digitalization of society, enabling people to connect
in innovative ways. This not only reduces the need for
travel through hybrid working but also creates new
opportunities for both individuals and businesses.
OUR COMMUNICATION PRODUCTS
AND OFFERINGS
• Fixed telecom – network construction and mainte-
nance, FTTH (fiber-to-the-home) rollouts.
• Mobile telecom – rollouts, upgrades and corrective
maintenance.
• Fixed wireless access – connecting homes and
businesses to the internet.
• Mobile indoor – providing public and private
networks.
• Data centers – delivering high-speed communication
infrastructure.
COMMUNICATION OPPORTUNITIES
• 5G
• Public and private mobile indoor infrastructure
solutions
• Fiber in Finland and Denmark
• Data centers
• Public infrastructure
CUSTOMERS
Our main customers are large telecom operators and
communication network and infrastructure owners.
Eltel is mainly involved in long-term relationships with a
steady inflow of orders generated by framework agree-
ments. Eltel also offers new business models, including
as-a-service models, and is expanding its offering in the
value chain.
Annual Report 2024 14
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Power business area
Our Power services facilitate the electrification of society, playing a crucial role in developing
sustainable energy solutions and helping to achieve national climate objectives.
A resilient and robust power infrastructure supports
renewable energy generation, electric vehicle charging
and smarter electricity usage. These are all building
blocks for a carbon-neutral society.
OUR POWER PRODUCTS AND OFFERINGS
• Power distribution and transmission – full turnkey
high-voltage projects, network construction, upgrades
and maintenance.
• Smart grids – rollout services for next-generation
power meters.
• Renewable energy – solutions for wind farms and
solar parks.
• e-Mobility – electric vehicle charging infrastructure.
• BESS – battery energy storage systems.
• Data centers – delivering high-voltage power
infrastructure.
POWER OPPORTUNITIES
• Network capacity upgrades
• e-Mobility charging infrastructure
• Wind farms and solar parks
• BESS solutions
• Smart meter roll outs
• Data center high-voltage infrastructure
CUSTOMERS
Primary customers include national transmission sys-
tem operators, owners of power distribution grids and
utility companies. We also serve industrial companies
and the public sector.
Annual Report 2024 15
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Our segments:
Finland, Sweden,
Norway and Denmark
Eltel has a decentralized country-based organization with Country Units that have
full responsibility for their own financial performance. Our Country Units ensure
our business has the capabilities and flexibility to meet the specific needs of our
local markets.
Eltel Finland
Eltel Finland improved profitability during the year
through operational efficiency and by developing new
business opportunities in solar, e-Mobility and BESS.
KEY DEVELOPMENTS IN 2024
Operational excellence enhancement during the year
included improvements in project management
and
extensive employee training. Eltel Finland
implemented
new ways of managing its workforce,
resources and
sub-contractors along with project pricing
improve-
ments, which will directly improve profitability.
Traditional power and communication markets
We continued to install power transmission and distribu-
tion infrastructure for customers throughout Finland in
2024. This included new and ongoing framework agree-
ments for large customers. FTTH rollout peaked in 2024
with around 70% of Finnish homes able to connect to a
fiber network. In the next few years we foresee a signifi-
cant densification in the fiber market.
Business growth areas
Eltel Finland completed its first large solar park project in
2024. The 7.4 MWp Lohja solar park will meet the annual
electricity needs of around 1,480 Finnish households.
We continued to deliver high-speed charging infra-
structure for a major customer and fuel station custom-
ers. Eltel offers turnkey e-Mobility projects that include
design, permitting, installation, maintenance and com-
missioning.
Eltel completed its first two BESS projects during
the year. These projects pave the way for more BESS
projects in the future.
In 2024, Eltel Finland developed how it packages its
power and communication expertise to data center
customers.
I’m proud of our efforts to enhance profitability
during the year by addressing challenges on
difficult projects and streamlining our internal
processes. We seized new business opportuni-
ties and refined our green offering for customers.
As a result, we are well-positioned to expand
into new markets moving forward.
Juha Luusua
Managing Director, Eltel Finland
Finland
NET SALES 2024
357.7
EUR million
Communication
Power
Finland
FINANCIAL PERFORMANCE
2024 2023
Net sales (EUR million) 357.7 344.5
Adjusted EBITA (EUR million) 15.7 6.5
Adjusted EBITA margin (%) 4.4 1.9
Number of employees, FTE, average 1,478 1,503
Overview OtherFinancial reportsGovernanceBoard of Directors’ reportSustainabilityOperations
16 Annual Report 2024
Helping customers make green choices
In 2024, Eltel launched its Green Choice initiative in
Finland that involves offering more sustainable alterna-
tives or side proposals on customer projects. We made
a successful Green Choice offering to the Helen
Electricity Network in Helsinki and began approaching
other large customers with Green Choice alternatives
during the year.
SIGNIFICANT AGREEMENTS DURING THE YEAR
• Turnkey contract with Taaleri Energia
– to construct, operate and maintain large solar plant,
including transformer station, and connection to the
main grid.
• New five-year agreement with Helen Electricity
Network
– to construct and maintain Helsinki’s electricity
distribution network.
• Eltel completed its first BESS projects
– totalling approximately 55 MW.
• Combined EV charging infrastructure and BESS
– on a project for a commercial customer.
• Google data center
– contract was won during the year to deliver
the design and build of the facility’s power
transmission line.
• Telia and Elenia framework extensions
– of existing agreements for an additional three years,
with option years on top of that.
MARKET OUTLOOK AND OPPORTUNITIES
Eltel Finland has a strong pipeline in Solar PV, e-Mobility
and BESS for 2025 and these markets have good long-
term growth potential in the country.
With more data centers being established in Finland,
Eltel is working to expand its presence throughout the
value chain. This includes providing design services and
seamlessly combining its communication and power
expertise in data center customer offerings.
The FTTH market will decline in 2025 due to a reduc-
tion in rollout volumes. However, the aftersales market
will continue throughout the country.
Annual Report 2024 17
OverviewEltel Finland Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
New five-year agreement with Helen Electricity
Network to construct and maintain Helsinki’s
electricity distribution network.
Eltel completes Finland’s first
industrial-scale solar park
Eltel has built the 7.4 MWp solar park in Lohja, just outside Helsinki,
for the Finnish energy company Helen.
The park will annually generate approximately 7.4 MWp
per year, which is equivalent to the annual electricity
needs of around 1,480 Finnish homes. The project is
the first large-scale park in the country and Eltel deliv-
ered it ahead of schedule.
Good collaboration paves the way
toward carbon neutrality
“Everyone involved in the project created the conditions
for us to deliver ahead of schedule,” says Kimmo Koivu,
Project Manager at Eltel. “We couldn’t have done this on
our own, and we received a lot of support from Eltel
experts, our contractors and the customer.”
Good collaboration between the customer Helen,
subcontractors, and Eltel employees was appreciated
by all the project partners.
“Cooperation with the Eltel team was essential for the
Lohja Solar Park project and it is invaluable to be able to
cooperate with partners in this way,” Pekka Tolonen,
Vice President of Power Generation at Helen. “The
Lohja solar park is an excellent example of how we can
achieve ambitious goals if we work together effectively.
This applies both to individual projects like this and to
the climate goals that Finland has set.”
Projects such as the Lohja solar park contribute to
Finland’s objective to be fully carbon neutral by 2030.
Many more renewable energy projects are planned in
Finland in the coming years as the company works
toward achieving its climate objective.
“There are many lessons to be learned from this
project, but perhaps the most important is that
good collaboration leads to good results,” concludes
Tolonen.
Case #1
Annual Report 2024 18
OverviewEltel Finland Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Eltel Sweden
Efficient smart grid delivery, large power distribution
contracts and the creation of new business opportuni-
ties more than compensated declining sales from the
communication business.
KEY DEVELOPMENTS IN 2024
Eltel Sweden created a more stable organization in 2024
by reducing employee turnover to retain more of its
skilled employees. We also enhanced our operational
flexibility by streamlining our workforce and utilizing
more subcontractors.
New business opportunities
In Communication, we have broadened our customer
base, mainly within public infrastructure and the defense
industry. In Power, we have seen significant opportunities
in the power market in the form of e-Mobility, Solar PV
and power distribution projects. Eltel Sweden started an
incubator in 2024 to further develop these opportunities.
During the year, we embarked on our first e-Mobility and
solar park projects. This included the largest solar park
in Sweden to date at Hallstavik, north of Stockholm,
and a DC charging project at fuel stations. Additionally,
e-Mobility capabilities were established across Sweden.
Ongoing traditional business opportunities
Smart grid rollout projects were delivered faster than
expected to boost profitability. 5G densification is ongoing
and will continue in the coming years. Existing fiber networks
are also being upgraded with second-generation fiber.
In power distribution, a large distribution customer
doubled its investment in 2024. Power distribution and
lighting projects were also delivered for municipal-owned
power companies. Designers and project managers with
power industry experience were hired to increase the
Country Unit’s capacity.
New packaged customer solutions
Eltel Sweden launched packaged customer solutions for
e-Mobility, indoor coverage and generic telecom services.
The customer packages make it easier for anyone in
Eltel Sweden to sell the company’s standard offering.
Other packages were under development during the year.
SIGNIFICANT AGREEMENTS DURING THE YEAR
• Hallstavik Solar park – all excavation, cabling and
CCTV solutions on the 64 MW park.
• ST1 EV charging stations – the installation of DC
charging infrastructure at three fuel stations.
• Swedish Armed Forces – contract renewal to build
communication towers and a new framework agree-
ment to install fixed communication networks.
• Telenor – prolonged service agreement reinforcing
Eltel Sweden as Telenor’s main partner for nationwide
services within Fixed and Mobile communication for
the whole of Sweden.
• Swedish Transport Administration – two important
framework agreements, one concerning the well known
E4 by pass Stockholm project and one covering the
administration’s nationwide communications network.
MARKET OUTLOOK AND OPPORTUNITIES
Eltel Sweden aims to compensate for reduced smart grid
volumes and communication network investments in
2025 with e-Mobility, solar and power distribution projects.
There are also opportunities in BESS projects, including
the potential to combine battery storage with solar parks.
There is high demand in the power distribution market
due to a lack of capacity in Sweden. Indoor coverage
solutions for real estate customers and hospitals also
offer significant opportunities.
Our profitability was driven by increased stability
and flexibility throughout our operations.
We created new opportunities in e-Mobility,
solar energy and power distribution during the
year, while our new packaged customer solu-
tions marked a significant shift in our market
offering. We’re committed to building on this
positive momentum to achieve even stronger
profitability in 2025.
Lars Nilsson
Managing Director, Eltel Sweden
Sweden
NET SALES 2024
211.8
EUR million
Communication
Power
Sweden
FINANCIAL PERFORMANCE
2024 2023
Net sales (EUR million) 211.8 198.5
Adjusted EBITA (EUR million) 6.1 2.9
Adjusted EBITA margin (%) 2.9 1.5
Number of employees, FTE, average 950 988
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
19 Annual Report 2024
Eltel strengthens its long-term partnership
with the Swedish Armed Forces
Eltel signed a new agreement with the Swedish Armed Forces to
deliver essential infrastructure in the form of masts and towers.
The two-year EUR 35 million agreement with the Swed-
ish Defense Materiel Administration (FMV) will involve
the design and construction of masts in Arboga, central
Sweden, where Eltel has well-established operations.
The contract has an optional extension for an addi-
tional five years.
“The agreement means that Eltel will become a
national supplier of masts and towers to the Swedish
Armed Forces,” says Lars Nilsson, CEO Eltel Sweden.
“We thereby also increase our commitment to the
Swedish Armed Forces and strengthen our position as
a leading player in critical infrastructure.”
Building on long-term expertise in masts and towers
“Winning this contract will help us retain our expertise
in the design, strength calculation and delivery of masts
and towers, and it will increase our competitiveness in
the market in this segment,” says Kalle Tholin, Head of
Department at Eltel in Arboga. “We will thus have a sta-
ble platform with government customers who think
long-term.”
Eltel is a long-term partner of FMV. Initially, Eltel was
contracted to provide maintenance services for masts
and towers, but this has since been expanded to
include installation and contracting services for FMV’s
air wings and garrisons.
Case #2
Annual Report 2024 20
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Eltel Norway
Eltel Norway downsized and adjusted its business
during the year to face declining investment in the
Norwegian telecom market. However, we maintained
opportunities in new markets.
KEY DEVELOPMENTS IN 2024
Lower investments from Norwegian telecom operators,
particularly in FTTH and 5G rollout projects, resulted in a
decline of more than EUR 40 million in 2024.
Adapting to market challenges
During 2024, Eltel Norway restructured its business, which
included the creation of a new business unit focused on
growth markets. Despite efforts to retain employees by
retraining and reskilling them where possible, layoffs
were unavoidable during the year. At the same time,
qualified electricians and experienced project managers
were hired to meet the needs of new growth markets.
Automated IT solutions were introduced to increase
the efficiency of back-office processes, such as by ena-
bling technicians to invoice customers directly. The Eltel
Experience Center was established at Eltel’s premises in
Oslo to develop new communication technologies and allow
customers to test solutions in a controlled environment.
Driving growth markets
Eltel continued to be a market leader in offshore radio
links in the North Sea and also delivered systems in the
Caribbean. The indoor coverage market grew and we
delivered our first large 5G indoor solution.
Eltel Norway delivered its first turnkey solar roof-
mounted system and began another at the end of the
year. e-Mobility continued to grow with ongoing charging
station projects at shopping malls, private homes and
businesses. Eltel also began delivering high voltage
charging stations for trucks and busses.
SIGNIFICANT AGREEMENTS DURING THE YEAR
• Large indoor coverage network – provided for the
103,000 m² Construction City office project with 350
antennas.
• Telenor – three year continuation of current agreement.
• e-Mobility partnership with Siemens – to deliver
charging solutions for buses and trucks.
• Solar project – a roof-mounted 45.8 kWp system with
standing solar panels was delivered for a commercial
customer.
• Eltel becomes an Authorized Nokia partner – to
provide Nokia’s latest technology, such as advanced
private 5G networks.
• New partnership agreement with Avinor – delivery of
installations and electrical services for 20 airports in
Norway, including Oslo airport.
MARKET OUTLOOK AND OPPORTUNITIES
There is significant potential for Eltel to deploy its radio
link solutions on fish farms and offshore wind projects.
Eltel is also in discussion with customers around the
world to establish offshore systems.
In e-Mobility, Eltel sees opportunities to provide cus-
tomers with truck charging solutions. Eltel Norway has
more solar projects in the pipeline and the BESS market
is expected to grow in Norway following legislative
changes.
In 2024, the Norwegian government announced a
target to increase the telecom network capacity from
100 MB to 1 GB. This can create core telecom network
upgrade opportunities in the years ahead. We also see
good opportunities ahead in the public infrastructure
customer segments, as well as in data center services,
where Eltel has a unique position with our combined
expertise in Communication and Power.
2024 presented challenges, marked by a decline
in our telecom sales and overall profitability.
However, the changes we implemented this year
have strengthened our long-term competitive-
ness, positioning us to capitalize on the telecom
market as it stabilizes in 2025. I was pleased
with our sales from new business areas during
the year as we continue to expand in growing
adjacent markets.
Thor-Egel Bråthen
Managing Director, Eltel Norway until 10 February 2025
Norway
NET SALES 2024
114.9
EUR million
Communication
Power
Norway
FINANCIAL PERFORMANCE
2024 2023
Net sales (EUR million) 114.9 130.1
Adjusted EBITA (EUR million) -5.7 -2.5
Adjusted EBITA margin (%) -4.9 -1.9
Number of employees, FTE, average 761 860
Overview
21 Annual Report 2024
OtherFinancial reportsGovernanceBoard of Directors’ reportSustainabilityOperations
Eltel constructs its largest indoor
mobile network to date in Norway
The mobile indoor network at Construction City in Oslo
has set high standards for sustainability and safety.
Eltel is delivering indoor mobile coverage through the
installation of 350 antennas in the 103,000 m² office
project. Located in the heart of Oslo’s innovation dis-
trict of Hovinbyen, Construction City will provide work-
places for around 4,500 people when complete.
“This is a prestige project for the entire construction
sector in Norway,” says Lars Olav Seim, Team Manager
for Indoor Coverage at Eltel Norway. “As soon as we
mention to other players that we are involved, they are
impressed.”
Sustainability and safety in focus
The customer is Construction City Eiendom, owned by
OBOS, which is the largest cooperative housing devel-
oper in Norway. Eltel has enjoyed very good collabora-
tion with the customer and other project partners, par-
ticularly on sustainability and safety, which are focus
areas for the project.
“What made Construction City special was probably the
very stringent sustainability, safety and compliance
requirements imposed on us,” continues Seim. “It has
been more of a partnership than a client-customer
relationship, which I think is the key to us getting the
contract in the first place.”
“Eltel’s competence and flexibility is unique in an
industry otherwise characterized by rather rigid hierar-
chies,” Stian Ruud, Project Manager at OBOS. “We have
really appreciated the dialog, willingness to cooperate
and responsiveness of Eltel. This will probably not be
the last time we work together.”
The first companies will move into Construction City
in July 2025.
Case #3
Annual Report 2024 22
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Eltel Denmark
Eltel’s power business in Denmark continued its strong
development driven by a rapidly growing market while
its communication business declined slightly as net-
work investments reduced and the market was
squeezed.
KEY DEVELOPMENTS IN 2024
To address the increasing market demand for power-
related services, Eltel Denmark has recently initiated
an internal efficiency program aimed at optimizing
resource utilization. We also plan to reskill selected
Communication personnel to work on Power projects.
The growing power market
A number of new power contracts were won. BESS is a
growth market in Denmark and Eltel closed three large
contracts, including two turnkey projects, in 2024. Eltel
Denmark finalized the deliveries to one solar park during
the year and has a promising solar pipeline. In e-Mobility,
the Country Unit built on its experience of installing
charging infrastructure for buses to complete its first
truck charging stations with more projects agreed.
Eltel Denmark’s smart meter projects continued and
entered successfully into water and heater meters,
where there are significant market opportunities.
Optimizing the shrinking communication market
Several communication initiatives were implemented to
optimize operations and adapt to the declining Danish
communication market.
However, there were still good communication oppor-
tunities in mobile indoor solutions through Distributed
Antenna System (DAS) in hospitals and commercial cus-
tomer projects during the year. There were also opportu-
nities in connecting homes to existing fiber networks
and 5G maintenance projects, although these involve
lower sales than rollout projects.
Eltel Denmark is continuing to deliver long-term
communication projects for customers such as
Banedanmark.
Good employee and customer satisfaction
Eltel Denmark once again achieved very high employee
satisfaction ratings with a participation rate of 94%.
Employee programs included an initiative on mental
health awareness and a behavioral design program to
help reinforce positive employee behaviour and motiva-
tion. Eltel Denmark also had great customer satisfaction
for the third year in a row.
SIGNIFICANT AGREEMENTS DURING THE YEAR
• GreenGo Energy – 22 MWp solar park constructed in
Ølgod.
• Hybrid Greentech – Two turnkey BESS projects
completed in Næstved.
• IBF Logistics – installation of two electric truck
charging stations in Ejby.
• Novo Nordisk – high voltage connection for new
production plants in Hillerød.
MARKET OUTLOOK AND OPPORTUNITIES
Eltel Denmark is working to maintain and even increase
its share of the declining Danish communication market.
It is also optimizing the efficiency of its power opera-
tions where there are many market opportunities in
Denmark. This includes solar energy, BESS and
e-Mobility – either alone or combined on single projects.
There are also opportunities for Eltel to broaden its
offering throughout the value chain – from design and
installation to servicing and preventative maintenance.
Following a strong year of growth in 2023, we
focused on consolidating our sales in 2024. We
successfully secured projects in high voltage
power, BESS, solar parks and e-Mobility, further
establishing our presence in several adjacent
growth markets. I am especially pleased that
we maintained our high employee satisfaction
ratings, as engaged employees are key to deliv-
ering exceptional customer service and driving
our financial performance.
Claus Metzsch Jensen
Managing Director, Eltel Denmark
Denmark
NET SALES 2024
92.0
EUR million
Communication
Power
Denmark
FINANCIAL PERFORMANCE
2024 2023
Net sales (EUR million) 92.0 93.0
Adjusted EBITA (EUR million) 5.0 4.9
Adjusted EBITA margin (%) 5.4 5.2
Number of employees, FTE, average 487 511
Annual Report 2024
23
Overview OtherFinancial reportsGovernanceBoard of Directors’ reportSustainabilityOperations
Modular and scalable BESS solutions
provide flexibility in Denmark
Eltel is leading the way with battery energy storage systems that can help
promote renewables and support the electricity grid.
As the battery energy storage systems can be charged
with power from renewable sources, such as solar and
wind, they play an essential role in supporting the shift
to clean energy. They additionally help to stabilize the
frequency in the grid in the short term when more solar
and wind energy are being produced.
“BESS can store energy generated by wind tur-
bines or solar panels, which means we can store
clean energy and use it when electricity is expensive
or when demand is high,” says Steffen Hagmann,
Project Leader at Eltel. “The systems can also help
to partially backup the national grid by meeting
some of the electricity demand in the event of the
power going down.
Eltel’s BESS solutions are modular and scalable, which
provides flexibility for future needs. Hagmann likens
the solution to Lego blocks.
“If a customer needs more capacity, we can simply
add more battery containers, just like building with
Lego,” explains Hagmann. “It’s a flexible system that
can grow as demand increases.”
There is great potential to deliver similar projects to a
variety of customers – not only in Denmark, but
throughout the Nordics.
“One of our biggest clients, Copenhagen Airport, is
looking to replace its old diesel generators with BESS
systems,” says Hagmann. “If airports, which have sig-
nificant environmental impacts, can reduce their green-
house gas emissions through solutions like this, it will
open up more opportunities for more sustainable oper-
ations.”
Case #3
Annual Report 2024 24
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Other business
Eltel’s Other business includes a Smart Grids business in Germany and a
diverse business in Lithuania. Up until 5 June 2024 Eltel’s Polish High Voltage
business was also part of Other business, but on June 6th this business was
divested to Mutares SE & Co. KGaA, a listed private equity investor head-
quartered in Munich, Germany.
Germany
In Germany, Eltel installs water, gas, heating and electric-
ity meters and conducts gas adjustment services that
are required in the ongoing switch from low-calorific gas
(L-Gas) to high-calorific gas (H-Gas). The business also
provides manual meter reading services. Eltel employs
around 350 people in Germany.
There are significant market opportunities for Eltel in
Germany although there is a shortage of skilled people.
In 2024, Eltel implemented measures to increase effi-
ciency and reduce costs to prepare us for profitable
growth in the years ahead.
Lithuania
Eltel’s business in Lithuania is focused on communica-
tion and the installation of fiber and 5G for telecommuni-
cations operators, e-Mobility and the solar energy market.
During the year, the business faced challenges related to
the reduced opportunities to support Eltel Norway with a
cross-border workforce although it continued to provide
fiber technicians to Eltel Finland.
Our cross-border offering
Collaboration between Country Units is encouraged to
share expertise and good practice throughout the
Nordics. There are also opportunities to serve custom-
ers operating in multiple Nordic countries through our
cross-border offering.
Additionally, Eltel has a highly skilled cross-border
workforce that provides flexibility to other parts of the
business. Our technicians based in Lithuania are used
as a flexible resource in our Nordic markets.
Annual Report 2024 25
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Sustainability Report 2024
Eltel’s commitment to sustainability is reflected in our focus on reducing climate and environ-
mental impacts, prioritizing health and safety, creating good work environments, and promoting
responsible procurement and business ethics. The double materiality assesment conducted in
2024 highlighted Climate Change and Health and Safety of our employees and subcontractors
as the most material topics from both an impact and financial perspective.
Annual Report 2024 26
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ reportOverview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
General information
BASIS FOR PREPARATION AND ACCOUNTING
PRINCIPLES
Eltel’s Sustainability Report is included in the Annual
Report and is prepared in line with the requirements of
the statutory Sustainability Report as stated in the
Swedish Annual Accounts Act.
We have changed the structure of the Sustainability
Report compared to the previous reporting period.
In 2024, we have considered the European Sustaina-
bility Reporting Standards (ESRS) disclosure require-
ments in preparing the Sustainability Report, with the
goal of ensuring that the 2025 report will meet the
requirements of the EU’s Corporate Sustainability
Reporting Directive (CSRD).
The sustainability topics covered in the report are
selected based on Eltel’s Double Materiality Assessment
(DMA) conducted in 2024, inspired by ESRS.
As a signatory of the UN Global Compact, we detail
our progress in upholding the ten Global Compact princi-
ples on human rights, labor standards, environment, and
anti-corruption.
The report has been prepared on a consolidated
basis, with the scope of consolidation matching that of
the financial statements in the Annual Report.
Restatement principles
Greenhouse Gas (GHG) Emission baselines are restated
according to Eltel’s GHG Base Year Recalculation Man-
ual. Previous GHG emissions will be recalculated if
Eltel’s organization is subjected to organizational
changes.
The divestment of the High Voltage Poland resulted, in
2024, in the recalculation of GHG Scope 1 base year
emissions.
Basis for calculation
The basis for calculation and presentation of sustaina-
bility metrics is described in the notes to the respective
metrics, where applicable.
Sustainable Development Goals (SDGs)
The United Nations Sustainable Development Goals
(SDGs) provide a roadmap for overcoming global
economic, social, and environmental challenges.
Eltel supports all SDGs but focuses on seven key
goals where we drive the greatest impact under
three themes:
The commitment to sustainability shapes Eltel’s
strategic decisions and creates value as a partner,
employer, and investment opportunity. Our long-
term dedication to global sustainability initiatives
enhances transparency and deepens our under-
standing of our business’s sustainability impacts.
Science Based Targets initiative (SBTi): Eltel has
set three climate targets approved by the SBTi
(see page 35).
CDP: Eltel has reported annually to the CDP climate
change program since 2016 and to the water pro-
gram since 2023. In 2024, Eltel scored B- in Climate
and C in Water Security.
UN Global Compact: Eltel has been a signatory since
2014, embedding its ten principles on human rights,
labor, the environment, and anti-corruption into our
strategy and processes.
EcoVadis: Eltel has been rated annually since 2023,
earning a bronze award for its work in the environ-
ment, labor and human rights, ethics, and respon-
sible procurement.
Our global commitment
Responsible Employer: We provide fair
work, promote health and safety, and
ensure diversity and gender equality across
our workforce and supply chain.
Sustainable Communities: We build and
maintain critical infranets that meet the
needs of businesses and individuals.
Climate and the Environment: We support
the transition to a carbon- neutral society by
delivering resilient infranet solutions,
reducing our operational climate impact,
and adopting circular economy principles,
efficient waste management, and respon-
sible material sourcing.
Annual Report 2024 27
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Strategy, business model and value chain
Eltel designs, builds, maintains, and upgrades communication
and power infrastructure for network owners and operators.
OUR VALUE CHAIN
Eltel is a service provider for critical communication and
power infrastructure. We deliver a comprehensive range
of solutions – from maintenance and upgrade services
to turnkey project delivery. This includes design, plan-
ning, building, installing and securing the operation of
networks. Eltel operates in Finland, Sweden, Norway,
and Denmark, and is also represented in Germany and
Lithuania. Additionally, we have Group support functions
based in Poland.
Direct operations
The core of our value chain is the services carried out by
our 4,550 employees. We operate across a network of
135 facilities, each often facilitating multiple activities,
including office work, warehousing, and waste sorting.
Our services, which involve mobile work in different
locations, rely on a leased fleet of around 3,000 vehicles
that use both fossil fuels and biofuels. 14% of the vehi-
cles are fully electric. For more information on our
operations and business model, see page 3.
Upstream value chain
Our procurement of materials and supplies encom-
passes a range of network materials and components.
The scope of material procurement responsibilities that
we assume varies by project, depending on the specific
customer and project requirements.
Key actors in Eltel’s upstream value chain include sub-
contractors, wholesalers, and manufacturers of materials
and supplies. The majority of our Tier 1 suppliers are
located in Europe. We work with an extensive network of
subcontractors, whose services encompass construc-
tion, installation, and other professional services.
Downstream value chain
Eltel’s customers include telecommunication and power
network owners and operators, utility companies, indus-
trial customers, and the public sector. We play a crucial
role in ensuring that critical power and telecommunica-
tion networks function as they should.
The sites are often situated close to areas where peo-
ple live, work or commute. This necessitates upholding
high standards of health and safety to protect the
communities we serve.
Material manufacturers
Subcontractors
Customers Communities, end users
Raw materials,
components
Material wholesalers, Other
suppliers of goods and services
Eltel’s country-based organizations
Eltel provides a range of services, including
the planning, engineering, construction,
upgrading, and maintenance of networks.
Operational control
Power
• Power transmission networks
• Power distribution networks
• Renewables
Communication
• Mobile telecom services
• Fixed telecom services
• Public infrastructure
• Smart grids
• EV-charging infrastructure
UPSTREAM
DIRECT OPERATIONS DOWNSTREAM
Direct business relationship Indirect business relationship
Annual Report 2024 28
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Own workforce (Employees) • Employee engagement survey
• PDDs (Performance and Development
Dialogue)
• Cooperation with unions and employee
representatives
• HSSEQ reporting
• Trainings
• HSE audits
• Health and safety
• Leadership and manager relations
• Remuneration and benefits
• Equal treatment and opportunities
• Competence development
• Health and safety management
• Eltel’s values
• Training and leadership development
• Certified work safety management
system
Subcontractors and suppliers • Safety orientations and daily collaboration
• Meetings
• Supplier surveys
• Safety Walks and audits
• Suppliers’ events
• Long-term partnerships
• Safety and work environment
• Pricing and terms
• Ethics and compliance
• Subcontractor training
• Support of SMEs in SBTi target setting
• Supplier code of conduct and
responsible procurement policy
• Incorporation of sustainability
requirements in contracts and related
processes
Customers • Customer surveys
• Meetings with customers
• Customers’ supply chain events
• CDP and EcoVadis
• Climate change mitigation
• Health and safety
• Ethics and compliance
• Upstream value chain responsibility
• Aligned sustainability targets with
customers’ climate ambition
• Green Choice and collaboration in
climate change mitigation
• Certified work safety, quality and
environmental management system
Shareholders • Annual General Meeting
• Investor dialogue
• Press releases
• Board meetings
• Mitigation of climate impact
• Compliance and sustainability
reporting
• Integration of sustainability as part of
our culture, operations and service
offering
• Implementation of strategy for
sustainable and profitable growth
• Transparency through sustainability
disclosures
Financiers • ESG dialogue with financiers
• Double materiality assessment
• Environmental sustainability
• Good quality sustainability reporting
• Sustainability-Linked Financing
Communities and end-users • Cooperation with authorities
• Customer service
• Security of power supply
• Continuity of telecommunication
services
• Safety; pedestrian and traffic
management
• Environmental management
• Emergency preparedness
• Health and safety management
STAKEHOLDER STAKEHOLDER ENGAGEMENT
THEMES IMPORTANT
TO STAKEHOLDERS
IMPACT ON ELTEL’S OPERATIONS,
BUSINESS MODEL AND STRATEGY
INTEREST AND VIEWS OF STAKEHOLDERS
The purpose of our stakeholder engagement is to foster
meaningful collaboration and dialogue on sustainability
matters. This ensures that we address key concerns,
align on mutual goals, and drive positive environmental
and social outcomes.
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DOUBLE MATERIALITY ASSESSMENT PROCESS
Eltel has during 2024 conducted a first double material-
ity assessment (DMA), as a key element in preparing for
the EU directive CSRD (Corporate Sustainability Report-
ing Directive), and the implementation of the ESRS
(European Sustainability Reporting Standards) for the
financial year 2025.
Our starting point was the impact assessment
(inside-out) of Eltel’s negative or positive impacts on
the environment and society. We then conducted a
financial assessment (outside-in) of the sustaina-
bility-related risks and opportunities.
A sustainability matter is considered material if it
meets the criteria for impact materiality, financial
materiality, or both. CSRD mandates that Eltel
assess and report on these material topics.
Preparation and scoping
To ensure a thorough understanding of how Eltel’s
business operations interact with and influence the
value chain, we mapped the key characteristics of
Eltel’s value chain and identified key actors in the
upstream and downstream parts of the value chain.
Our stakeholders were categorized into affected
stakeholders and users of sustainability reports to
understand how their perspectives may inform the
assessment. Affected stakeholders include employees
and other workers within own workforce, potential
employees, suppliers, subcontractors, workers in the
value chain, customers, end-users, and affected com-
munities. Users of sustainability reports include share-
holders, potential investors, authorities, governments,
creditors, insurers, and customers.
Mapping affected stakeholders
Eltel’s stakeholder groups were catego-
rized as affected stakeholders and
users of sustainability reports.
Mapping impacts, risks
and opportunities
A list of potential sustainability IROs
was created based on the ESRS. This
list was cross-referenced and supple-
mented by consulting various sources.
Scoring framework
The scoring criteria and assessment
scales were defined
Validation
The preliminary assessment results
were presented to management in
workshops covering environmental,
social, and governance topics.
Management provided feedback and
validated the assessment result.
Mapping business model
and value chain
Eltel’s activities and key actors in both
the upstream and downstream value
chains were identified.
Defining potential material IROs
The list of sustainability matters was
reviewed, and the related positive and
negative impacts across Eltel’s different
value chain stages were identified and
described. The potential material sus-
tainability-related risks and opportuni-
ties were also identified and described.
Materiality thresholds
Thresholds were defined for both
impact and financial materiality.
Updating the assessment
The assessment was adjusted
based on feedback from the validation
workshops.
Determining stakeholder involvement
Key internal stakeholders with expertise
in sustainability themes, and relevant
external stakeholders were identified for
engagement in the assessment process.
Assessment of impacts, risks and
opportunities
Each identified IRO was scored using
the applicable evaluation criteria and
input from internal and external stake-
holders.
1. PREPARATION AND SCOPING
2. MAPPING IMPACTS, RISKS
AND OPPORTUNITIES 3. ASSESSING MATERIALITY 4. VALIDATION AND REVIEW
Annual Report 2024 30
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Mapping impacts, risks and opportunities
We created a list of potential sustainability IROs (Impact,
Risks and Opportunities), covering the topics, sub-
topics, and sub-sub-topics for the ESRS. We cross-
referenced the list with other sustainability frameworks
and Eltel’s previously published Annual and Sustaina-
bility Reports and supplemented the list accordingly.
The list of potential sustainability matters was
reviewed, and related positive and negative impacts
across our value chain were identified. Potential material
risks and opportunities were also identified, along with
their connections to Eltel’s strategy and sustainability
impacts. These steps involved consulting internal stake-
holders with expertise on sustainability matters, using
internal documents, and referencing public resources.
Assessing materiality
To assess the materiality of each identified IRO, we
created a scoring framework with 1-to-5 assessment
scales for each factor contributing to impact or financial
materiality. Factors contributing to impact materiality
included the scale and scope of an impact, the irremedi-
ability of a negative impact, and the likelihood of poten-
tial impacts. Financial materiality was evaluated based
on the magnitude and likelihood of financial effects, with
materiality determined by multiplying these scores.
We defined materiality thresholds for both impact and
financial materiality. Impacts with an average score of 3
or higher across the applicable assessment criteria, and
risks and opportunities with a score of 10 or more, were
considered material.
Validation and review
The preliminary assessment results were presented to
management in workshops covering environmental,
social, and governance topics. Management provided
feedback and validated the assessment results, and the
assessment was adjusted accordingly.
Outcome of the double materiality assessment
In our double materiality analysis performed in 2024, we
identified the most material topics for Eltel from both an
impact and a financial perspective. The most material
topics are Climate change, Own workforce and Workers
in the value chain. More specifically, Climate change mit-
igation and Health and safety for own employees as well
as subcontractors are material from both an impact and
financial perspective.
The graph and table to the right illustrate the sustaina-
bility-related topics and sub-topics we identified and
assessed as material as a result of our double material-
ity assessment process. The outcome is aggregated by
ESRS topic, as shown in the table below.
More information on how we respond to the effects of
our impacts and risks is included in the topical sections
under Environment, Social, and Governance.
MATERIAL SUSTAINABILITY MATTERS
E1 Climate change
• Climate change adaptation
• Climate change mitigation
• Energy
E2 Pollution
• Pollution of air
E4 Biodiversity and ecosystems
• Direct impact drivers of biodiversity
loss
E5 Circular economy
• Resource inflows, including resource use
• Waste
S1 Own workforce
• Working conditions
• Equal treatment and opportunities
for all
• Other work-related rights
S2 Workers in the value chain
• Working conditions
• Other work-related rights
S4 Affected communities
• Communities’ economic, social and
cultural rights
G1 Business conduct
• Corporate culture
• Corruption and bribery
Material impacts, risks and opportunities and their interaction with strategy and business model
Impact Materiality
How Eltel affects people and the environment
Financial Materiality
How external sustainability factors influence
Eltel’s ability to create value
Material
MaterialNot material
Not material
G1
S3
E1
E4E5
E2
E3
S4
S2
S1
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Sustainability governance
MANAGEMENT OF ELTEL
The Board
The Board of Directors (BoD) is responsible for oversee-
ing our sustainability matters. Decisions made at the
board level regarding strategy directly impact the
Group’s long-term business goals and sustainability
commitments.
The BoD monitors the implementation of the business
strategy, including the integration of environmental,
social, and governance-related considerations. Addition-
ally, the BoD approves Eltel’s sustainability policies and
commitments. Together with the Audit Committee (AC),
they monitor compliance by regularly reviewing Eltel’s
sustainability risks and performance.
Both the BoD and the AC review the annual sustaina-
bility reporting and oversee internal and external audit
processes. Specific agenda items related to environ-
mental issues, such as progress on Eltel’s climate tar-
gets, risk assessments, and sustainability-linked financ-
ing, are discussed during BoD and/or AC meetings.
The BoD and the AC are briefed by the Group Manage-
ment Team and the heads of relevant functions, includ-
ing sustainability and internal audit.
The Board of Directors consists of six members
elected at the Annual General Meeting of shareholders,
all of whom are independent of the company. Two of the
members are women, representing 33% (50). Addition-
ally, there are two employee representatives.
Senior Management
Eltel’s President and Chief Executive Officer (CEO) holds
the highest senior management-level position, responsi-
ble for overseeing the company’s environmental, social,
and governance (sustainability) impacts, risks, and
opportunities. The CEO reports directly to the Board of
Directors.
The CEO chairs the Group Management Team (GMT),
which integrates sustainability considerations into high-
level decision-making, including the development and
implementation of our business strategy and Group-
level sustainability target setting. The GMT provides reg-
ular updates to the Board on sustainability matters,
including progress against established targets, at mini-
mum on an annual basis.
Management groups within our country units are
responsible for addressing sustainability matters across
various functions, including HR, HSSEQ (Health, Safety,
Security, Environment, and Quality), finance, legal,
procurement, and customer relations.
The Group Management team consists of nine
members, of which four are women.
INCENTIVES FOR SUSTAINABILITY-RELATED
PERFORMANCE
Sustainability-related performance is incorporated into
the short-term incentive scheme of the CEO and the
members of the Group Management Team. The aim of
the short-term incentives is to reinforce the right perfor-
mance and behavior, both financially and operationally,
and to align individual performance with the company’s
business strategy and long-term interests. These guide-
lines are approved and updated at the Annual General
Meeting of shareholders.
The sustainability-related performance indicators are
aligned with our sustainability priorities: health and
safety, and climate change mitigation.
Sustainability forms an integrated part of Eltel’s overall corporate governance.
The aim is to ensure our commitment to stakeholders by forming the strategy,
setting policies and targets, and closely monitoring performance.
Health and Safety: accounting for 5% of the short-
term incentives is measured by the Lost Time Injury
Frequency Rate (LTIFR).
Climate Change Mitigation: accounting for 5% of
the short-term incentives is meaasured using three
KPI’s derived from Eltel’s SBTi targets.
• Decreasing direct emissions
• Increasing the share of renewable electricity
• Increasing the share of supply chain emissions
covered by suppliers with SBTi targets.
Annual Report 2024 32
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RISK MANAGEMENT OF SUSTAINABILITY
REPORTING
Eltel’s risk management and internal control system for
sustainability reporting is designed to comply with statu-
tory Group-level reporting requirements and public com-
mitments.
Our controls cover processes at both Group level and
country unit levels, including policies and procedures for
identifying, assessing, and reporting sustainability-re-
lated impacts, risks, and opportunities.
Key risks associated with sustainability reporting
include potential inaccuracies in data reporting and
compliance with evolving sustainability reporting stand-
ards. Eltel is committed to maintaining transparency
and accountability throughout each stage of the report-
ing process.
To mitigate the risks, we employ control activities such
as internal and external audits, routine data validation,
process monitoring, and the establishment of internal
controls to facilitate accurate data gathering, verifica-
tion, and reporting. We are also defining roles and
responsibilities in sustainability reporting to ensure an
accurate, timely and transparent reporting process.
Ongoing monitoring of reporting regulations, along with
evaluations and developments in collaboration with
third-party consultants and auditors, further strengthens
our process.
The results of our risk assessments and control evalu-
ations are integrated into core functions and processes.
Findings are communicated across departments, and
regular updates are provided to the Group Management
Team and the Audit Committee, ensuring that signifi-
cant findings or adjustments in risk management and
controls are reviewed and approved at appropriate gov-
ernance levels.
Sustainability governance
Country Units
President and CEO
Sustainability Management Team
Group Management Team Group Business Development
Country Unit sustainability
managing teams
Sustainability Team
HSE network
Board of Directors
Head of Sustainability
Annual Report 2024 33
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Environmental information
CLIMATE CHANGE
Impacts, risks and opportunities
Climate change mitigation
We have both direct and indirect negative impacts on
the climate, mainly due to greenhouse gas emissions
from our direct operations and across our value chain.
These emissions primarily stem from the fuel consump-
tion of our fleet of around 3,000 vehicles, energy use
within our facilities, and materials and services in the
supply chain. Other sources of emissions are waste,
business travel, and employee commuting.
We also recognize a potential transition risk as our
customers increasingly prioritize climate change mitiga-
tion within their value chains. If we cannot meet their
expectations and demonstrate effective climate change
mitigation efforts across the entire value chain, it could
become a barrier to securing customer contracts and
expanding business opportunities.
Climate change adaptation
Climate change adaptation relates to Eltel’s business
through financial materiality. We see business opportu-
nities in the shift from fossil fuels and the need for more
resilient network infrastructure.
We provide upgrade and modification services to
power infrastructure that support climate change adap-
tation and the transition away from fossil fuels. We can
also aid in climate change adaptation and improve the
durability of critical systems by designing and building
more resilient network infrastructure.
Energy
Use of energy typically has a negative impact on the
environment. Our business relies on subcontracted ser-
vices especially civil works which often involve the use
of fossil fuels. Additionally, our services require trans-
portation to work sites resulting in the use of approxi-
mately 6 million liters of vehicle fuel annually. A risk to
consider is that, as our fleet electrification progresses,
access to electricity and charging will become increas-
ingly critical for our services.
However, we also see business opportunities in the
energy sector. Solutions for renewable energy and elec-
trification of society are important growth areas for our
business.
Policies
We have established two main policies to drive sustaina-
ble development for climate change.
• Sustainability Policy
• Environmental Policy
Our Sustainability Policy aims to ensure sustainability
and responsible business practices in all Eltel’s opera-
tions. The Policy sets out the responsibilities of Eltel and
its employees regarding observing and upholding Eltel’s
commitment to sustainable development. One of the
policy’s objectives is to provide infrastructure solutions
that facilitate the transition to a robust, resilient, and
carbon-neutral society. Another objective is to reduce
climate impact in alignment with Eltel’s science-based
targets.
The policy also states, among other things, our com-
mitment to external climate-related initiatives such as
CDP, the Science Based Targets initiative, and EcoVadis.
The Environmental Policy sets out the basic stand-
ards and objectives in the area of environmental man-
agement at Eltel. The policy addresses climate change
mitigation, resource use and circularity, biodiversity and
ecosystems and chemicals and hazardous material. We
are committed to combating climate change, and have
set science-based climate targets to reduce carbon
dioxide emissions in line with the Paris Agreement.
Actions
• The Green Choice concept was developed – We are
constantly building skills to integrate reduced climate
impact into our service offerings and to account for
the climate impacts of our projects, including those
from vehicles, fuel and materials used.
• Progress on fleet electrification was achieved –
Replacing fossil fuel vehicles with fully electric vehi-
cles is a crucial part of our efforts to mitigate climate
change within our operations. In 2024, the share of
electric vehicles increased from 9.3% to 14.0%.
• Biofuel use in transportation increased by 175,000
litres – Overall, we replaced 376,000 litres of fossil
diesel with HVO during the year.
• Use of renewable electricity increased – All Nordic
country units now purchase renewable energy from
their main electricity suppliers.
• Supplier engagement increased – During the year we
have prioritized SBTi-committed suppliers in the pro-
curement process. We also support smaller suppliers
in setting their own SBTi targets.
Eltel is focused on reducing its carbon emissions and strives to enable the transition to a carbon-neutral society. In our aim
to manage and minimize the climate and environmental footprint of the projects we deliver, important steps are being taken
toward efficient resource use and a circular economy.
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Metrics and targets
Eltel’ science-based climate targets are aligned with the
Paris Agreement, aiming to limit global warming to
1.5°C. Our targets, verified by the Science-Based Targets
initiative (SBTi), address impacts arising from Scope 1,
2, and 3 emissions. The target for Scope 1 is an absolute
emission reduction target.
We have implemented a sustainability-linked finance
framework, which connects financing with our science-
based targets and climate actions. The Sustainability
Performance Targets (SPT) established in our
Sustainability Linked Finance Framework (SLFF) align
with our SBTi targets. Eltel’s Sustainability-Linked
Finance Framework has been verified by Sustainalytics
in 2023 to align with the Sustainability-Linked Bond
Principles 2020 and Sustainability-Linked Loan Princi-
ples 2022. Progress towards the SPTs is disclosed in
a separate report on Eltel’s web page - Sustainable
financing.
Eltel’s climate targets approved by the SBTi 2024 Actual 2024 Target Target 2025
Scope 1
Reduce greenhouse gases by 42% by 2030 with a base year of 2021 14,163 12,821 12,076
Scope 2
Increase the use of renewable electricity to 100% by 2030 57% 54% 62%
Scope 3
Ensure that more than 67.4% of Eltel’s suppliers by emissions set
their own science-based targets by 2026 27.6% 30% 35%
1)
Covering Scope 3 categories 1, 2, 4, 5 and 6.
2024
Total emissions by country,
tCO
2
e Scope 1 Scope 2, market-based Scope 3
Finland 4,761 987 59,780
Sweden 3,393 209 22,589
Norway 1,770 753 12,536
Denmark 2,033 119 9,587
Others 2,205 395 3,353
GHG-intensity 2024
Total market-based CO
2
emissions per
net sales, tCO
2
e / euros 0.00015
Total emissions, tCO
2
e 2024
Scope 1 14,163
Location-based Scope 2 732
Market-based Scope 2 2,463
Total Scope 3 107,844
Purchased goods and services 89,327
Capital goods 36
Fuel and energy-related activities
not included in Scope1 or Scope 2 4,060
Upstream transportation and distribution 7,475
Waste generated in operations 516
Business travel 3,259
Employee commuting 3,170
Total GHG emissions, location-based 122,739
Total GHG emissions, market-based 124,470
The scope of greenhouse gas reporting is based on operational control.
Reporting covers direct GHG emissions (Scope 1) from Eltel’s own operations,
indirect GHG emissions (Scope 2) from the production of purchased energy,
and indirect GHG emissions from the upstream value chain (Scope 3), with the
exclusion of emissions from the Polish operation High Voltage Poland, which
was divested in June.
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POLLUTION
Impacts, risks and opportunities
Air Pollution
The combustion of vehicle fuels, in our own fleet and in
subcontracted services, contributes to air quality degra-
dation by releasing various pollutants, including nitrogen
oxides (NOx), particulate matter (PM), sulfur dioxide
(SO
2
), and volatile organic compounds (VOCs). While
renewable fuels, such as biofuels, offer a reduced CO
2
environmental impact compared to traditional fossil
fuels, they still contribute to air pollution.
Policies
To control pollution, two policies are implemented in our
organization.
• Environmental Policy
• Sustainability Policy
While climate change mitigation is an immediate prior-
ity, in the long term, we prioritize mitigation efforts that
address both CO
2
and other forms of air pollution.
Actions
• Update of the Environmental Policy – In late 2024,
we updated our Environmental Policy to reflect not
only mitigation efforts for CO
2
but also other forms of
air pollution.
Metrics and targets
We do not have any targets set for the reduction of pollu-
tion. Our commitment to the gradual electrification of
our fleet effectively mitigates this impact. Additionally, in
our vans equipped with SCR technology to reduce
exhaust emissions, we use diesel exhaust fluid (AdBlue)
to lower nitrogen oxide emissions.
BIODIVERSITY AND ECOSYSTEMS
Impacts, risks and opportunities
Direct impact drivers of biodiversity loss
Across Eltel’s value chain greenhouse gas (GHG) emis-
sions contribute to biodiversity loss. Although we do not
engage directly in land acquisition, we may be involved
in preparing permits, as well as planning and executing
projects that lead to land use changes. Our involvement
in land use is attributable to our services in power trans-
mission and distribution, as well as large-scale construc-
tion projects in the renewable energy sector.
Policies
Two policies control the risks of biodiversity losses and
impact on ecosystems.
• Environmental Policy
• HSSEQ Policy
Eltel is committed to preventing and mitigating adverse
direct and indirect impacts on ecosystems. We strive to
reduce our climate impact, recognizing climate change
as a driver of biodiversity loss. We adhere to legal and
regulatory requirements.
Power and telecommunication infrastructure may be
located in or near biodiversity-sensitive areas. As a
service provider to these networks, some of our work-
sites may traverse or be in proximity to legally protected
areas important for biodiversity. We strive to avoid
harmful impacts on nature and adhere to all applicable
regulations.
New network infrastructure construction within or
near legally protected areas typically requires the prepa-
ration of an environmental impact assessment (EIA) and
risk assessment, or similar environmental surveys, with
mitigation of impacts on biodiversity and ecosystems
incorporated from the planning phase. When performing
activities that may significantly impact the environment
in legally protected areas important for biodiversity,
site-specific instructions are followed to minimize
environmental impacts.
Actions
• Biodiversity impact assessment – In 2025, we plan
to conduct a comprehensive biodiversity impact
assessment across our value chain to identify priority
locations where significant impacts on local ecosys-
tems may occur.
Metrics and targets
Our most significant biodiversity impact is climate
change, which acts as a driver of biodiversity loss. This
issue is addressed through our science-based climate
targets.
RESOURCE USE AND CIRCULAR ECONOMY
Impacts, risks and opportunities
Resource inflows, including resource use
In the upstream value chain, negative impact from
resource inflow includes the environmental effects of
sourcing and procuring materials and supplies, such as
raw material extraction, energy consumption, water use,
and emissions from production and transport in the
value chains of manufactured goods.
Waste
Waste has a negative impact during operations and
decommissioning. We see a potential negative impact
from decommissioning old network infrastructure that
involves handling hazardous materials. If not properly
managed and disposed of, these materials could pose
environmental risks, such as contamination.
Policies
To manage resource utilization effectively, we are
guided by three key policies.
• Responsible procurement Policy
• Environmental Policy
• HSSEQ Policy
Material use
Our policies emphasize the commitment to drive more
sustainable resource use within our value chain. We
strive to increase the use of recycled and renewable
materials and enhance our understanding of the life
cycle impacts of the materials we procure.
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Waste
Eltel is dedicated to responsible waste management
practices and our primary focus is on sorting, recycling,
and minimizing waste directed to disposal. We are com-
mitted to ensuring the safety of people and the
environment by requiring proper and secure storage,
handling, and disposal of waste, including hazardous
materials.
We enhance transparency by actively requesting
Environmental Product Declarations (EPD) and Product
Environmental Profiles (PEP) from manufacturers of key
network materials and components. These declarations
provide standardized information about the environmental
impacts of products, supporting informed decsion-
making and aligning with our Green Choice offering.
In 2024, we initiated a supplier survey targeting our
material suppliers to gain insights into their responsible
sourcing practices. The survey inquires whether suppli-
ers have established policies addressing sustainable
procurement and the use of conflict minerals, and
initiatives addressing their supply chains. This effort
enhances our visibility into the value chain and supports
improved traceability of the key materials used in our
projects.
Eltel partners with responsible companies for circular-
ity, recycling, and waste management. The majority of
waste and materials handled originate from decommis-
sioned network infrastructure. Although we do not own
network infrastructure, we perform upgrading activities
for our customers that involve dismantling. The overall
responsibility for waste management may vary by cus-
tomer, contract, or project, with some cases organized
by customers and others by Eltel. By ensuring that mate-
rials are carefully sorted and recycled, we contribute to
the circularity and sustainable lifecycle of networks. In
2024 our sorting rate was 80%.
Waste, t 2024
Total waste generated 7,612.68
Of which non-hazardous waste 5,625.74
Of which hazardous waste 1,986.94
Waste diverted from disposal 7,592.41
Preparation for reuse 6.84
Recycling 5,256.02
Other recovery operations 2,329.56
Waste directed to disposal 20.26
Incineration 2.54
Landfilling 17.72
Other disposal operations 0.00
Common waste fractions include various telecommunication and power cables,
construction waste and electronics. These fractions contain mainly metals,
plastics and concrete. Electronic waste is categorized as hazardous waste in
Sweden but as non-hazardous in Eltel’s other operating countries.
Waste here reported includes waste handled through direct contracts between
Eltel and circularity, recycling, and waste management partners. The reported
amounts are based on data provided by these partners, along with general
information from the suppliers on recovery and disposal operations. Waste
managed under customers’ or subcontractors’ own waste management
operations or contracts is not included.
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EU Taxonomy
The EU Taxonomy is the EU’s classification system for
-
tives:
1. Climate change mitigation
2. Climate change adaptation
3. The sustainable use and protection of water
and marine resources
4. The transition to a circular economy
5. Pollution prevention and control
6. The protection and restoration of biodiversity
and ecosystems
An economic activity is considered Taxonomy-eligible if
it is recognized in the EU Taxonomy as having the poten-
tial to contribute substantially to at least one of these
objectives while ensuring it does not significantly harm
any of the others.
Eltel has assessed the taxonomy eligibility of its activi-
ties based on the descriptions of economic activities
outlined in Annexes 1 and 2 of the Climate Delegated
Act, including amendments to the annexes.
The energy sector is one of the major sectors included
in the taxonomy. Correspondingly, Eltel’s operations in
the Power business area are largely included in the eco-
nomic activities specified in the EU Taxonomy (i.e.
eligible activities). By developing the power grid, Eltel
together with its customers contributes to climate
change mitigation through a transition to a green elec-
tricity system. All Eltel’s activities that are categorized as
eligible are deemed to have the potential to make a sub-
stantial contribution to the first objective, climate
change mitigation.
The communication sector, which contributes to the dig-
italization of society via modern and high-capacity
communication networks, is generally not included in
the activities specified in the EU Taxonomy at the pres-
ent time. In line with this, most of Eltel’s operations in the
Communication business area are not included in the
taxonomy (i.e. non-eligible activities).
Eltel has also evaluated taxonomy eligibility of its
business operations according to the descriptions of
economic activities substantially contributing to the
environmental objectives 3–6 listed in the annexes of
the Environmental Delegated Act. Eltel has reviewed the
technical screening criteria laid out in the annexes when
interpreting the nature of the activity. Eltel has not identi-
fied any activities applicable to its business operations.
Taxonomy alignment
Eltel’s operations are concluded to be taxonomy-aligned
when they are assessed to comply with all the require-
ments described in the taxonomy. This means that the
activity 1) makes a substantial contribution to climate
change mitigation, 2) does no significant harm to any of
the other five objectives (DNSH) and 3) complies with
the minimum safeguards.
Eltel has performed a DNSH assessment of the DNSH
criteria for each relevant activity included in the taxon-
omy. Based on the assessment, Eltel has concluded that
it complies with the DNSH criteria.
In addition to environmental impact analyses, Eltel
has assessed that it complies with the minimum safe-
guards. Further information about minimum safeguards
regarding human rights, corruption, taxation and fair
competition is presented under the heading “Minimum
safeguards alignment summary”.
Net sales
Eltel identified 37.3% (37.7) of its net sales to be taxono-
my-eligible regarding the economic activities defined in
the taxonomy’s objective: climate change mitigation.
Eltel also identified 34.3% (33.2) of its net sales to be
taxonomy-aligned (environmentally sustainable).
A major part of eligible and aligned net sales relate to
activity 4.9 “Transmission and distribution of electricity”.
This activity includes Eltel’s power transmission and dis-
tribution services from construction and upgrade to
maintenance and fault repair, as well as smart grid oper-
ations relating to operating the distribution networks. A
total of 23.7% (22.9) of net sales is deemed to be taxono-
my-eligible. Furthermore, Eltel has concluded that 22.7%
(20.6) of its net sales is also taxonomy-aligned. Eltel
carries out work for the power grids that belong to the
interconnected European system and its subordinate
systems that are not dedicated to creating or expanding
direct connections to power production plants that are
more greenhouse gas intensive than 100 CO
2
e/kWh.
1.1% (2.2) of net sales is not deemed to be aligned, pri-
marily due to direct connections to power production
plants that do not meet the criteria. In Germany, many of
the electricity meters included in power distribution
operations do not meet the EU criteria. Thus, these oper-
ations have been evaluated as being non-aligned.
Part of Eltel’s smart grid operations is included in
activity 7.5 “Installation, maintenance and repair of
instruments and devices for measuring, regulation and
controlling energy performance of buildings”. 7.9% (6.0)
of total net sales is included in this activity and it is con-
cluded that 6.3% (4.6) of total net sales is taxonomy
aligned. Smart grid operations in the Nordics are gener-
ally taxonomy-aligned as the installed meters meet the
criteria for smart meters. In Germany, most of the
meters are non-aligned but there are also meter
installations that comply with the taxonomy criteria.
2.8% (2.8) of total net sales relate to activity 6.14
“Infrastructure for rail transport”. These services are
deemed to be fully taxonomy-aligned. Most of the opera-
tions are in Denmark and include, for example, installa-
tion and configuration of equipment related to the digi-
talization of railway signalling.
Eltel has also identified other taxonomy-eligible
operations totalling 2.9% (6.0) of total net sales. 2.6%
(5.1) of net sales included in these operations is taxono-
my-aligned. Other taxonomy-aligned operations include
installation, maintenance and repair of charging stations
for electric vehicles not in buildings or parking spaces
attached to buildings (3.20), installation of energy
efficiency equipment in buildings (7.3), installation,
maintenance and repair of charging stations for electric
vehicles in buildings (and parking spaces attached to
buildings) (7.4), and installation, maintenance and repair
of renewable energy technologies, e.g. battery energy
storage and solar systems (7.6). Other non-aligned activ-
ities include operations related to certain district heating
facilities that do not meet the technical screening
criteria for activity 4.15.
Annual Report 2024 38
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Capital expenditure (capex) and operating
expenditure (opex)
Eltel identified 33.4% (44.6) of capital expenditure and
35.4% (39.6) operating expenditure (capex and opex) to
be taxonomy eligible. Furthermore, 29.8% (38.6) of
capex and 26.7% (27.9) of opex were identified as being
taxonomy-aligned. Capex and opex have been included
when they relate to operations generating net sales that
are included in the taxonomy. Investments in a new car
fleet are reported as taxonomy-aligned capex if the
capex met the criteria for being sustainable according to
taxonomy activity 6.5 “Transport by motorbikes, passen-
ger cars and light commercial vehicles”. This mainly
concerns electric vehicles.
As the definition of opex is very narrow in the taxon-
omy, the amount of total opex in Eltel is negligible. Opex
includes the cost of maintenance and repair of machin-
ery and buildings and short-term lease expenses.
In order to avoid double counting, each business oper-
ation that generates taxonomy-eligible net sales was
exclusively assigned to a specific taxonomy-eligible
economic activity. The same procedure has been
adopted for the allocation of capex and opex. However,
capex for electric vehicles has been fully included in
activity 6.5 and has therefore been excluded from the
other taxonomy-eligible activities.
Net sales
Taxonomy-aligned 34.3%
Taxonomy-eligible but not aligned 3.0%
Non-eligible 62.7%
Capex
Taxonomy-aligned 29.8%
Taxonomy-eligible but not aligned 3.6%
Non-eligible 66.6%
Opex
Taxonomy-aligned 26.7%
Taxonomy-eligible but not aligned 8.7%
Non-eligible 64.6%
MINIMUM SAFEGUARDS ALIGNMENT SUMMARY
Human rights
Eltel has multiple methods for assessing, safeguarding and
promoting human rights. These include but are not limited
to the human rights risks assessments made through the
enterprise risk management process, the whistleblowing
process, the annual Code of Conduct training, and Code of
Conduct requirements towards our suppliers. Reporting on
such matters is done on a regular basis to Eltel’s executive
management and the Board. No executive or management
employee of Eltel AB or of any of its subsidiaries have been
convicted or being found of being in violation of any laws or
regulations relating to human rights.
Corruption
Eltel has anti-corruption practices in place, such as the
whistleblowing channel and regular trainings in anti-cor-
ruption practices, which are governed by Eltel’s Anti-Bribery
and Anti-Corruption Policy as well as the Whistleblowing
Policy. Eltel’s Code of Conduct also outlines Eltel’s stance
on Anti-Bribery and Anti-Corruption. Code of Conduct train-
ings (including anti-corruption practices) are provided to
employees annually. No executive or management
employee of Eltel AB or of any of its subsidiaries have been
convicted or being found of being in violation of any laws or
regulations relating anti-corruption.
Taxation
Eltel treats tax compliance and governance as important
elements of oversight, tax risks are assessed on an ongo-
ing basis and tax compliance matters are reported to
senior management as well as to the Audit Committee.
No executive or management employee of Eltel AB or of
any of its subsidiaries have been convicted or being found
of being in violation of any tax laws or regulations.
Fair competition
Eltel is dedicated to promoting the importance of compli-
ance with competition laws and regulations. Eltel’s Compe-
tition Instruction is used to increase awareness and edu-
cate the workforce on the topic of fair competition. Addi-
tional directed training is provided to senior management.
No executive or management employee of Eltel AB or of
any of its subsidiaries have been convicted or being found
of being in violation of any laws or regulations relating fair
competition.
Annual Report 2024 39
OverviewEU Taxonomy Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
NET SALES
Financial year 2024 2024 Substantial contribution criteria
DNSH criteria
(Does not significantly harm)
Economic activities
Code
Net sales
Pro portion
of net
sales, 2024
Climate change
miti gation
Climate change
adaptation
Water
Pollution
Circular economy
Biodiversity
Climate change
miti gation
Climate change
adapt ation
Water
Pollution
Circular economy
Bio diversity
Minimum
safe guards
Proportion of taxo-
nomy aligned (A.1)
or -eligible (A.2) net
sales, 2023
Category
enabling activity
Category
transitional
activity
EUR million %
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. Taxonomy-eligible activities
A.1. Environmentally sustainable activities (taxonomy-aligned)
Manufacture, installation, and servicing of high, medium and low voltage
electrical equipment for electrical transmission and distribution that result
in or enable a substantial contribution to climate change mitigation
1)
CCM 3.20 6.8 0.8% Y N/EL N/EL N/EL N/EL N/EL – Y Y Y Y Y Y – E –
Electricity generation from wind power CCM 4.3 – – Y N/EL N/EL N/EL N/EL N/EL – Y Y – Y Y Y 4.6% – –
Transmission and distribution of electricity CCM 4.9 187.8 22.7% Y N/EL N/EL N/EL N/EL N/EL – Y – Y Y Y Y 20.6% E –
Infrastructure for rail transport CCM 6.14 23.0 2.8% Y N/EL N/EL N/EL N/EL N/EL – Y Y Y Y Y Y 2.8% E –
Installation, maintenance and repair of energy efficiency equipment CCM 7.3 0.0 0.0% Y N/EL N/EL N/EL N/EL N/EL – Y – Y – – Y – E –
Installation, maintenance and repair of charging stations for electric
vehicles in buildings (and parking spaces attached to buildings) CCM 7.4 0.8 0.1% Y N/EL N/EL N/EL N/EL N/EL – Y – – – – Y 0.3% E –
Installation, maintenance and repair of instruments and devices
measuring, regulation and controlling energy performance of buildings CCM 7.5 51.8 6.3% Y N/EL N/EL N/EL N/EL N/EL – Y – – – – Y 4.6% E –
Installation, maintenance and repair of renewable energy technologies CCM 7.6 14.3 1.7% Y N/EL N/EL N/EL N/EL N/EL – Y – – – – Y 0.2% E –
Net sales for environmentally sustainable activities
(Taxonomy-aligned) (A.1) 284.5 34.3% 34.3% – – – – – – Y Y Y Y Y Y 33.2%
Of which enabling 284.5 100.0% 100.0% – – – – – – Y Y Y Y Y Y 86.1% E
Of which transitional – – – – – – – – – – – T
A.2. Taxonomy-eligible but not environmentally sustainable activities (not taxonomy-aligned activities)
EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL
Manufacture, installation, and servicing of high, medium and low voltage
electrical equipment for electrical transmission and distribution that result
in or enable a substantial contribution to climate change mitigation
1)
CCM 3.20 – – EL N/EL N/EL N/EL N/EL N/EL 0.6%
Transmission and distribution of electricity CCM 4.9 9.0 1.1% EL N/EL N/EL N/EL N/EL N/EL 2.2%
District heating / cooling distribution CCM 4.15 2.5 0.3% EL N/EL N/EL N/EL N/EL N/EL 0.3%
Installation, maintenance and repair of instruments and devices
measuring, regulation and controlling energy performance of buildings CCM 7.5 13.4 1.6% EL N/EL N/EL N/EL N/EL N/EL 1.4%
Net sales for taxonomy-eligible but not environmentally
sustainable activities (not taxonomy-aligned activities) (A.2) 25.0 3.0% 3.0% – – – – – 4.5%
A. Net sales of taxonomy eligible activities (A.1 + A.2) 309.5 37.3% 37.3% – – – – – 37.7%
B. Taxonomy-non-eligible activities
Net sales for taxonomy-non-eligible activities 519.2 62.7%
Total 828.7 100.0%
1)
Amendment to Climate Delegated Act in 2023. Reported as taxonomy-eligible in 2023,
taxonomy-alignment has been assessed for 2024.
Total net sales equals to net sales according to the 2024 financial statements. CCM – Climate change mitigation
Y – Yes, taxonomy-eligible and taxonomy-aligned activity with relevant environmental objective
N – No, taxonomy-eligible but not taxonomy-aligned activity with the relevant environmental objective
N/EL – Not eligible, taxonomy-non-eligible activity for the relevant environmental objective
EL – Eligible, taxonomy-eligible activity for the relevant environmental objective
Annual Report 2024 40
OverviewEU Taxonomy Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
CAPITAL EXPENDITURE (CAPEX)
Financial year 2024 2024 Substantial contribution criteria
DNSH criteria
(Does not significantly harm)
Economic activities
Code
Capex
Pro portion
of capex,
2024
Climate change
miti gation
Climate change
adapt ation
Water
Pollution
Circular economy
Biodiversity
Climate change
miti gation
Climate change
adapt ation
Water
Pollution
Circular economy
Bio diversity
Minimum
safe guards
Proportion of taxo-
nomy aligned (A.1)
or -eligible (A.2)
capex, 2023
Category
enabling activity
Category
transitional
activity
EUR million %
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. Taxonomy-eligible activities
A.1. Environmentally sustainable activities (taxonomy-aligned)
Manufacture, installation, and servicing of high, medium and low voltage
electrical equipment for electrical transmission and distribution that result
in or enable a substantial contribution to climate change mitigation CCM 3.20 0.3 0.8% Y N/EL N/EL N/EL N/EL N/EL – Y Y Y Y Y Y – E –
Electricity generation from wind power CCM 4.3 – – Y N/EL N/EL N/EL N/EL N/EL – Y Y – Y Y Y 2.4% – –
Transmission and distribution of electricity CCM 4.9 5.8 15.2% Y N/EL N/EL N/EL N/EL N/EL – Y – Y Y Y Y 12.3% E –
Transport by motorbikes, passenger cars and light commercial vehicles CCM 6.5 3.7 9.8% Y N/EL N/EL N/EL N/EL N/EL – Y – Y Y – Y 15.3% – T
Infrastructure for rail transport CCM 6.14 0.2 0.6% Y N/EL N/EL N/EL N/EL N/EL – Y Y Y Y Y Y 3.0% E –
Installation, maintenance and repair of renewable energy technologies CCM 7.3 0.0 0.0% Y N/EL N/EL N/EL N/EL N/EL – Y – Y – – Y 0.0% E –
Installation, maintenance and repair of charging stations for electric vehicles
in buildings (and parking spaces attached to buildings) CCM 7.4 0.0 0.1% Y N/EL N/EL N/EL N/EL N/EL – Y – – – – Y 0.4% E –
Installation, maintenance and repair of instruments and devices measuring,
regulation and controlling energy performance of buildings CCM 7.5 0.8 2.1% Y N/EL N/EL N/EL N/EL N/EL – Y – – – – Y 5.0% E –
Installation, maintenance and repair of renewable energy technologies CCM 7.6 0.5 1.2% Y N/EL N/EL N/EL N/EL N/EL – Y – – – – Y 0.1% E –
Capex for environmentally sustainable activities
(Taxonomy-aligned) (A.1) 11.4 29.8% 29.8% – – – – – – Y Y Y Y Y Y 38.6%
Of which enabling 7.7 67.2% 67.2% – – – – – – Y Y Y Y Y Y 54.0 % E
Of which transitional 3.7 32.8% 32.8% – Y Y Y Y Y Y 39.7% T
A.2. Taxonomy-eligible but not environmentally sustainable activities (not taxonomy-aligned activities)
EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL
Transmission and distribution of electricity CCM 4.9 0.5 1.2% EL N/EL N/EL N/EL N/EL N/EL 4.1%
District heating / cooling distribution CCM 4.15 0.1 0.2% EL N/EL N/EL N/EL N/EL N/EL 0.3%
Installation, maintenance and repair of instruments and devices measuring,
regulation and controlling energy performance of buildings CCM 7.5 0.8 2.1% EL N/EL N/EL N/EL N/EL N/EL 1.6%
Capex for taxonomy-eligible but not environmentally
sustainable activities (not taxonomy-aligned activities) (A.2) 1.4 3.6% 3.6% – – – – – 6.0%
A. Capex of taxonomy-eligible activities (A.1 + A.2) 12.8 33.4% 33.4% – – – – – 44.6%
B. Taxonomy-non-eligible activities
Capex of taxonomy non-eligible-activities 25.5 66.6%
Total 38.3 100.0%
Capex includes additions into property, plant and equipment, right-of-use assets and other intangible assets
(Notes 27–29 in the consolidated financial statements).
CCM – Climate change mitigation
Y – Yes, taxonomy-eligible and taxonomy-aligned activity with relevant environmental objective
N – No, taxonomy-eligible but not taxonomy-aligned activity with the relevant environmental objective
N/EL – Not eligible, taxonomy-non-eligible activity for the relevant environmental objective
EL – Eligible, taxonomy-eligible activity for the relevant environmental objective
Annual Report 2024 41
OverviewEU Taxonomy Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
OPERATING EXPENDITURE (OPEX)
Financial year 2024 2024 Substantial contribution criteria
DNSH criteria
(Does not significantly harm)
Economic activities
Code
Opex
Pro portion
of opex,
2024
Climate change
mitigation
Climate change
adapt ation
Water
Pollution
Circular economy
Biodiversity
Climate change
miti gation
Climate change
adapt ation
Water
Pollution
Circular economy
Biodiversity
Minimum
safe guards
Proportion of taxo-
nomy aligned (A.1)
or -eligible (A.2)
opex, 2023
Category
enabling activity
Category
transitional
activity
EUR million %
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. Taxonomy-eligible activities
A.1. Environmentally sustainable activities (taxonomy-aligned)
Manufacture, installation, and servicing of high, medium and low voltage
electrical equipment for electrical transmission and distribution that result
in or enable a substantial contribution to climate change mitigation CCM 3.20 0.1 0.6% Y N/EL N/EL N/EL N/EL N/EL – Y Y Y Y Y Y – E –
Electricity generation from wind power CCM 4.3 – – Y N/EL N/EL N/EL N/EL N/EL – Y Y – Y Y Y 3.9% – –
Transmission and distribution of electricity CCM 4.9 1.8 17.6% Y N/EL N/EL N/EL N/EL N/EL – Y – Y Y Y Y 17.3% E –
Infrastucture for rail transport CCM 6.14 0.2 2.2% Y N/EL N/EL N/EL N/EL N/EL – Y Y Y Y Y Y 2.4% E –
Installation, maintenance and repair of energy efficiency equipment CCM 7.3 0.0 0.0% Y N/EL N/EL N/EL N/EL N/EL – Y – Y – – Y – E –
Installation, maintenance and repair of charging stations for electric vehicles
in buildings (and parking spaces attached to buildings) CCM 7.4 0.0 0.1% Y N/EL N/EL N/EL N/EL N/EL – Y – – – – Y 0.3% E –
Installation, maintenance and repair of instruments and devices measuring,
regulation and controlling energy performance of buildings CCM 7.5 0.5 4.9% Y N/EL N/EL N/EL N/EL N/EL – Y – – – – Y 3.9% E –
Installation, maintenance and repair of renewable energy technologies CCM 7.6 0.1 1.3% Y N/EL N/EL N/EL N/EL N/EL – Y – – – – Y 0.1% E –
Opex for environmentally sustainable activities
(Taxonomy-aligned) (A.1) 2.7 26.7% 26.7 – – – – – – Y Y Y Y Y Y 27.9%
Of which enabling 2.7 100.0% 100.0% – – – – – – Y Y Y Y Y Y 86.1% E
Of which transitional – – – – – – – – – – – T
A.2. Taxonomy eligible but not environmentally sustainable activities (not taxonomy-aligned activities)
EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL
Transmission and distribution of electricity CCM 4.9 0.3 3.2% EL N/EL N/EL N/EL N/EL N/EL 6.7%
District heating / cooling distribution CCM 4.15 0.1 0.9% EL N/EL N/EL N/EL N/EL N/EL 1.0%
Installation, maintenance and repair of instruments and devices measuring,
regulation and controlling energy performance of buildings CCM 7.5 0.5 4.7% EL N/EL N/EL N/EL N/EL N/EL 4.1%
Opex for taxonomy eligible but not environmentally sustainable activities
(not taxonomy-aligned activities) (A.2) 0.9 8.7% 8.7% – – – – – 11.7%
A. Opex of taxonomy-eligible activities (A.1 + A.2) 3.5 35.4% 35.4% – – – – – 39.6%
B. Taxonomy non-eligible-activities
Opex for taxonomy-non-eligible activities 6.4 64.6%
Total 10.0 100.0%
Opex includes short-term leases, maintenance and repair costs of tangible assets. Note that opex as defined in EU Taxonomy
is significantly narrower than Eltel’s total operating expenditure.
CCM – Climate change mitigation
Y – Yes, taxonomy-eligible and taxonomy-aligned activity with relevant environmental objective
N – No, taxonomy-eligible but not taxonomy-aligned activity with the relevant environmental objective
N/EL – Not eligible, taxonomy-non-eligible activity for the relevant environmental objective
EL – Eligible, taxonomy-eligible activity for the relevant environmental objective
Annual Report 2024 42
OverviewEU Taxonomy Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Row Nuclear energy related activities
1.
The undertaking carries out, funds or has exposures to research,
development, demonstration and deployment of innovative
electricity generation facilities that produce energy from nuclear
processes with minimal waste from the fuel cycle.
NO
2.
The undertaking carries out, funds or has exposures to construc-
tion and safe operation of new nuclear installations to produce
electricity or process heat, including for the purposes of district
heating or indus-trial processes such as hydrogen production, as
well as their safety upgrades, using best available technologies.
NO
3.
The undertaking carries out, funds or has exposures to safe opera-
tion of existing nuclear installations that produce electricity or
process heat, including for the purposes of district heating or
industrial processes such as hydrogen production from nuclear
energy, as well as their safety upgrades.
NO
Fossil gas related activities
4.
The undertaking carries out, funds or has exposures to construc-
tion or operation of electricity generation facilities that produce
electricity using fossil gaseous fuels.
NO
5.
The undertaking carries out, funds or has exposures to construc-
tion, refurbishment, and operation of combined heat/cool and
power generation facilities using fossil gaseous fuels.
NO
6.
The undertaking carries out, funds or has exposures to construc-
tion, refurbishment and operation of heat generation facilities that
produce heat/cool using fossil gaseous fuels.
NO
Nuclear and fossil gas related activities
Eltel does not carry out, fund, or have exposures to an activity in rows 1 to 6 in template 1 of
Annex XII Disclosures Delegated Act. Consequently, Eltel omits disclosing the corresponding
rows in templates 2 to 5 of that Annex.
Annual Report 2024 43
OverviewEU Taxonomy Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Social information
ELTEL’S EMPLOYEES
Impacts, risks and opportunities
Working conditions
Working on sites and transportation to and from the dif-
ferent work locations involves significant health and
safety risks due to the nature of the tasks performed.
These include, for example, electrical safety hazards and
risks associated with working at heights, managing
aging infrastructure, and road safety.
The health and safety of our employees is critical to
our services. Poor performance in this area would pose
financial risks through loss of customer trust. Addition-
ally, health and safety-related absences can lead to
costs from lost time, reduced productivity, and the need
for temporary staffing or overtime.
As a service company reliant on employee dedication
and expertise, we recognize the importance of employee
engagement. A safe working environment is a key driver
of employee satisfaction, workforce attraction, and
retention.
Other working conditions-related impacts include sea-
sonal variations in the construction sector, particularly in
Finland, Sweden, and Norway, which can negatively
affect job security through temporary layoffs. Eltel posi-
tively contributes by engaging with employees and their
representatives on matters related to working condi-
tions, fostering a collaborative environment. By offering
Eltel’s goal is to be the most attractive employer in the industry by focusing on employee engagement
and development opportunities. At the same time, we strive to be the best partner in the projects we
deliver, prioritizing the well-being of all those affected by our operations.
strong working conditions, we not only create a positive
impact but also an opportunity to secure skilled
cross-border workforce resources and quickly respond
to customer demands.
Equal treatment and opportunities for all
Upskilling employees is an opportunity to drive
efficiency, enhance employee retention, and support
expansion into new and adjacent business areas.
Other work-related rights
There are potential negative impacts related to
employee data privacy. These include the risk of unau-
thorized access, disclosure, or misuse of personal infor-
mation which can lead to identity theft, financial losses,
or breaches of confidentiality for employees.
Policies
We address material impacts, risks, and opportunities
related to our workforce through several key policies:
• Code of Conduct
• Human and Labor Rights Policy
• Human Resource and Diversity Policy
• Whistleblowing Policy
• HSSEQ Policy
The policies are aligned with internationally recognized
frameworks such as the UN Guiding Principles on
Business and Human Rights, the ILO Declaration on
Fundamental Principles and Rights at Work, the Interna-
tional Bill of Human Rights, and the OECD Guidelines for
Multinational Enterprises.
Eltel is a signatory to the United Nations Global
Compact and our 10 principles on human rights, labor,
environment and anti-corruption. Eltel respects interna-
tionally proclaimed human rights and is committed to
not being directly or indirectly involved in human rights
abuses.
These policies outline our commitment to respecting
and promoting fundamental human and labor rights,
including safety, equal opportunities, non-discrimina-
tion, and privacy.
Furthermore, Eltel has a Data Protection Policy that
applies to customers, suppliers and other external
stakeholders.
Health and safety
Eltel prioritizes its employees health and safety, aiming
to lead the industry in occupational health and safety
with a vision of zero accidents. This commitment is
embedded in the company’s policies, primarily Code of
Conduct, HSSEQ Policy and Human Resource and
Diversity Policy, which emphasize building a strong
safety culture and minimizing risks across operations.
Equal opportunities and non-discrimination
The Human Resource and Diversity Policy states a work-
ing environment built on mutual respect, where employ-
ees are offered equal opportunities regardless of nation-
ality, gender, sexual orientation, social origin, or other
personal attributes. We are committed to promoting
diversity and inclusion at all levels of the organization,
actively addressing any form of discrimination, harass-
ment, or violence with zero tolerance.
Privacy and data protection
In line with our Data Protection Policy, Eltel ensures that
all personal data collected, processed and stored is han-
dled confidentially and in accordance with international
and local regulations. We respect individuals’ rights to
have their data deleted when no longer necessary or
upon their request.
Whistleblowing and grievance mechanisms
Eltel’s is committed to providing employees and other
stakeholders with a whistleblowing channel to report
suspected ethical misconduct in accordance with the
EU Whistleblowing Directive. Our Whistleblowing Policy
ensures that all reports are handled confidentially, with a
strict no-retaliation policy to protect individuals who
raise concerns in good faith.
Annual Report 2024 44
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Processes for engagement
Employee engagement survey
Eltel conducts an annual group-wide employee engage-
ment survey. The purpose is to communicate and under-
stand how the employees feel about various aspects of
their work, including managerial duties, workload, and
opportunities for professional development. The results
inform decision-making and help us identify workplace
improvements. The responses are anonymous, but the
results can be aggregated at the appropriate organiza-
tional level. In 2024, 85% of permanent employees
responded to the survey.
The Human Resource functions of Eltel’s country
organizations hold operational responsibility for promot-
ing the engagement survey and integrating employee
perceptions into management processes and deci-
sion-making within each operating country. The most
senior roles responsible for engagement are the HR
directors in Finland, Sweden, Norway, Denmark and Lith-
uania, or HR managers of the other operating countries,
who are also part of the management teams of these
country units.
Working conditions
Eltel’s direct engagement with employees forms the
foundation of monitoring and managing Health, Safety,
Environment, Security and Quality (HSSEQ). This
engagement informs country-specific HSE risk profiling
and annual target setting.
To manage health and safety impacts, all employees
have access to a tool to report near misses, safety
observations, and incidents. These activities are carried
out by HSE managers in each country, under the over-
sight of the Group HSE Director. The effectiveness of
this engagement is assessed through regular monitor-
ing and review of reported data, performance, and
progress in action plan implementation.
Occupational healthcare is organized in compliance
with regulations and local practices in each operating
country. All employees are covered. Healthcare is
planned and organized in cooperation with the occupa-
tional healthcare services.
Eltel’s management also cooperates with employee
representatives, with two representatives on the Group
Board of Directors. In country organizations, coopera-
tion with employees and their representatives is carried
out in accordance with applicable local legislation. In the
Nordic countries and Lithuania, various forms and prac-
tices of cooperation are organized around key areas
such as occupational health and safety and collective
bargaining. The purpose of this cooperation is to ensure
that employees’ perspectives are considered in deci-
sion-making processes.
Equal treatment and opportunities
Eltel ensures that the perspectives of our workforce
inform decisions and activities related to training and
skills development through the mandatory Performance
and Development Dialogue (PDD). As stated in our
Human Resource and Diversity Policy, all employees are
to engage in an annual PDD with their supervisors.
The PDD serves as a structured opportunity to align
individual or team performance with the company’s
strategy, identify learning and development needs, and
discuss potential career growth. The PDD dialogues are
a key part of enabling employees to express their per-
spectives on personal development and workplace
improvement. The PDD is a part of the Performance
management process.
Privacy
Eltel has a large workforce in the local companies in
Sweden, Finland, Norway, Denmark, Germany, Lithuania,
and Poland. To be able to fulfill our legal and contractual
obligations as an employer and to maintain a safe and
efficient administration, we need to process certain
personal data related to employees.
All personal data relating to employees is processed in
accordance with Eltel’s Data Protection Policy and appli-
cable data protection legislation. The Data Protection
Policy is communicated to all employees, who must
consent to how personal data is processed by Eltel, what
data is processed, and the purpose of such processing.
Eltel has established processes for handling GDPR
incidents, including a dedicated internal reporting chan-
nel that is accessible to all employees. We offer regular
training on data privacy and cybersecurity, ensuring that
our employees are informed about how to protect per-
sonal data and the proper steps for reporting any con-
cerns. The GDPR training is mandatory for all employ-
ees, except technicians, and is conducted every other
year.
Channels to raise concern
Eltel has a whistleblowing procedure providing employ-
ees with a secure platform to report potential concerns.
The procedure is described in the section “Business
conduct”.
Actions
• A Group-wide Lifesaving Rules Campaign was
launched to enhance awareness and understanding
of critical safety guidelines. The campaign clarified
common health and safety practices into clear, action-
able rules, focusing on key areas such as working at
heights, operating heavy machinery, and driving. Read
more about Eltel Lifesaving Rules on page 48.
• Safety Week was held in all operating countries. The
Safety Week is held each year to enhance the safety
culture across the Group. This year, the Lifesaving
Rules were the main focus with the aim to expand the
knowledge about how to avoid safety risks and how to
act in case of incidents or accidents.
• Eltel’s values were launched in February 2024
– In the Employee Engagement Survey (September
2024) a new section, Company values, was added.
The efforts to communicate the values were quite
well received by employees, as the average score in
the survey for employee identification with the
Company values was 3.9.
• Gender pay gap assessments were expanded to
Denmark and Finland. Reporting of gender pay gap
is compulsory in Sweden and Norway.
Outcome of the actions
We maintained the Employee Engagement score of 3.9
from last year. The eNPS remained the same at -5. The
participation rate decreased from 85% to 83%.
This year we added a new area to the survey, ‘Com-
pany values’. It appears that our efforts to communicate
the values have been well-received by employees, as the
average score for employee identification with these val-
ues was 3.9 out of 5.
Once again, ‘Relationships with Colleagues’ was the
highest-rated area, improving to 4.2, from last year.
‘Health and Safety,’ ‘Meaningfulness and Participation,’
and ‘Relationship with Manager’ continue to be impor-
tant drivers of employee engagement.
Even the lowest-scoring areas had relatively good
same as last year. Scores in ‘Feedback and communica-
tion’ and ‘Strategy, vision, and culture’ stayed consistent,
while ‘Workplace and tools’ improved slightly.
We continued to drive our Goal Zero vision across the
Group. While we made progress in several areas, we did
not quite achieve the excellent Lost Time Injury Fre-
quency Rate (LTIFR) performance of the previous year.
The LTIFR increased slightly from 2.7 in 2023 to 3.8 in
2024, though this result still met our established safety
targets. The Total Recordable Injury Frequency Rate
(TRIFR) also increased during the year from 10.5 to 13.2.
Annual Report 2024 45
OverviewSocial information Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Targets 2024 Actual 2024 Target Target 2025
LTIFR¹
)
3.8 4.5 4. 0
TRIFR²
)
13.2 12.0 12.0
Short-term sick leave, %³
)
3.5 4.0 <3.0
Fatalities 0 0 0
Employee satisfaction and motivation 3.9 3.75 3.75
1)
LTIFR – Lost time injury frequency rate, calculated of lost time incidents per million working hours (7.58 million working hours in 2024).
2)
TRIFR – Total recordable incident frequency, calculated as the total number of recordable incidents per million working hours.
3)
Short-term sick leave – The percentage of working hours lost due to short-term sick leave relative to available working hours .
Employee headcount by gender 2024 2023
Number of employees 4,248 4,965
Male 3,659 4,265
Female 589 700
Employee headcount by country 2024 2023
Finland 1,455 1,575
Sweden 994 959
Norway 717 823
Denmark 457 510
Poland 106 534
Lithuania 167 216
Germany 352 348
Metrics and targets
Eltel sets targets to manage impacts, risks and opportu-
nities and follow regularly the outcome. Below is a list of
metrics and targets for the material topic Own Workforce.
Employees covered by collective
bargaining agreements, % 2024
Finland 100
Sweden 100
Norway 100
Denmark 59
Poland 0
Lithuania 0
Germany 0
Gender distribution at Group
Management Team 2024 2023
Male executives, headcount 5 6
Female executives, headcount 4 3
Men, % 57 67
Women, % 44 33
Employee headcount by age 2024 2023
Under 30 years old 745 1,013
30–50 years old 2,137 2,457
Over 50 years old 1,366 1,495
All Eltel’s employees are covered by our certified health
and safety management system, which is based on the
ISO 45001 occupational health and safety standard.
Eltel’s integrated health, safety, environmental, and
quality management system is certified against ISO
45001, ISO 9001 and ISO 14001 standards in all
operating countries.
Health and safety metrics,
employees 2024 2023
Fatal incidents, employees 0 0
Fatal incidents, subcontractors’
employees 0 1
Lost time accidents 29 24
Restricted work cases 24 23
Medical treatment cases 38 35
Total recordable incidents 100 92
Total recordable incident
frequency rate (TRIFR) 13.2 10.5
Own workforce covered by
ISO 45001 certified
management system, % 100 100
Privacy and security metrics, % 2024 2023
Security training completion rate 90 87
All employee counts are calculated using headcounts and year-end values.
Divestment of the High Voltage Poland in June 2024 concerned about 410
employees. The Group Shared Services remain in Poland.
Annual Report 2024 46
OverviewSocial information Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
WORKERS IN THE VALUE CHAIN
Impacts, risks and opportunities
Eltel has in our materiality analysis identified Working
conditions as the most material sub-topic for Workers in
the value chain.
Working conditions
The subcontractors performing work for Eltel may be
subject to similar risks at work as Eltel’s own employees,
which can have a negative impact on the health and
safety of the workers in the value chain.
An important prerequisite for work is the subcontrac-
tor’s health and safety performance in the upstream
value chain. If standards are not met this could lead to
contract termination with our customers.
Eltel’s fixed fall protection system Turvatikas Safety
Ladder enhances the health and safety of workers in the
downstream value chain.
Policies
To manage risks and negative impacts in the upstream
value chain, Eltel has three main policies.
• Code of Conduct
• The Eltel Supplier Code of Conduct
• HSSEQ Policy
Subcontractor health and safety
At Eltel, the safety of our employees and subcontractor
workers is a top priority. Our commitment is to ensure
that everyone involved in our projects returns home
safely each day.
Processes for mitigating negative impacts
Subcontractor health and safety is a key focus within our
Health, Safety, and Environment (HSE) organization. In
each of our operating countries, we develop and imple-
ment annual health and safety action plans based on
country-specific risks and requirements. The Group HSE
Director manages the implementation of actions, and
delivery of targets, to ensure performance across the
organization.
We require our subcontractors to comply, at a mini-
mum, with all legal and site-specific safety standards.
Subcontractor companies are responsible for providing
their workers with occupational healthcare and main-
taining statutory occupational accident insurance.
Eltel’s HSE organization has identified services most
at risk or critical to health and safety, and we have spe-
cific requirements for suppliers of these services. These
requirements include that workers must hold relevant
certifications or qualifications, and suppliers must have
safety monitoring in place. Proven compliance with best
practices, such as through instructions and site audits,
is required, or can be demonstrated with valid certifica-
tions in quality, health and safety, and environmental
management.
On projects where Eltel serves as the main contractor,
we hold overall responsibility for the health and safety of
everyone on-site. This includes the site safety orienta-
tion for subcontractor workers and visitors.
Our project sites are also monitored through manage-
ment safety walks, safety inspections, customers’
health and safety processes and third-party site inspec-
tions to address any safety concerns. Subcontractor
workers are required to report near misses and injuries
to Eltel project management.
Subcontractor workers and suppliers can report any
breaches of the Code of Conduct or safety concerns
through Eltel’s whistleblowing channel.
Actions
• Value chain LTIF tracking and monitoring was
implemented – To better monitor and reflect the
scope of our HSE management, we started tracking
and monitoring value chain LTIFR in 2024, expanding
our focus beyond employees to include subcontrac-
tors and temporary staff.
• Development of e-learning — To further reduce the
risks of incidents affecting health and safety, Eltel is
developing an e-learning to be included in the
onboarding of new subcontractors. It will be imple-
mented in Finland in 2025 and subsequently used in
other markets.
• Introduction of a survey for subcontractors —
A survey was introduced in 2024 to gather informa-
tion about our subcontractors’ approach to health and
safety, focusing on whether key practices are in place
and demonstrating a professional commitment to
health and safety beyond compliance on our sites. In
addition to health and safety, the survey covers other
aspects of ESG.
Fatalities
2024
Actual
2024
Target
Target
2025
Fatalities, subcontractor
workers 0 0 0
Annual Report 2024 47
OverviewSocial information Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
AFFECTED COMMUNITIES
Impacts, risks and opportunities
Communities’ economic, social, and cultural rights
A positive outcome from the operations is that Eltel
plays a vital role in restoring power for communities in
the event of storms or other disruptions. Additionally,
our work in designing, building, maintaining, and upgrad-
ing critical infrastructure for affected communities pre-
sents business opportunities. During our construction
activities, there is a potential risk of health and safety
incidents affecting individuals in the surrounding area.
Policies
In the Sustainability policy and the HSSEQ policy Eltel
states the guidelines for managing the effects on
communities affected by the projects delivered.
• Sustainability Policy
• HSSEQ Policy
Security
Eltel’s operations contribute to society by ensuring that
communication and power networks function reliably.
Secure energy supply and telecommunication networks
are essential for the everyday needs of businesses, indi-
viduals, and public services, all of which increasingly
depend on these systems. We play a crucial role in
restoring operations during and after storms, floods, or
crises. Additionally, our maintenance and upgrades to
power and telecom networks enhance energy and infor-
mation security.
Health and safety
Our commitment to health and safety extends to every-
one in the vicinity of our worksites. This includes thor-
ough risk assessments, ongoing risk monitoring, and
quality control measures to protect the health and safety
of people near our operations. Our integrated Health,
Safety, Environment, and Quality (HSEQ) management
system is certified against ISO 14001, 45001, and 9001
standards, ensuring high standards in all our operating
countries.
Eltel life saving rules
Working at heights
We perform only tasks we are authorized for, protect ourselves with appropriate fall
protection, and secure tools and equipment to prevent them from falling.
Roadside work safety
We ensure that precautionary measures are in place when working near roads and
traffic.
Electrical work
We perform only tasks we are trained and qualified for and take all necessary meas-
ures to protect against electrical hazards.
Working with heavy machinery
We work safely by using appropriate, inspected machinery, restricting the worksite to
authorized personnel, and maintaining clear communication.
Line of fire
We protect ourselves and others from hazards such as moving equipment and vehi-
cles, falling or collapsing objects, electric shocks, and arc flashes.
Driving
We ensure vehicles are safe, drive responsibly, and remain alert to protect ourselves
and others on the road.
Safety controls
We follow safety rules and ensure that a safe job analysis is conducted before starting
work.
Annual Report 2024 48
OverviewSocial information Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Governance information
BUSINESS CONDUCT
Impacts, risks and opportunities
Corporate culture and Corruption and bribery are identi-
fied as material sub-topics from the double materiality
assessment. Eltel aims to uphold high standards in
business ethics in general, with a focus on these areas.
Corporate culture
Breaches of Eltel’s Code of Conduct, or Supplier Code of
Conduct could lead to significant negative impacts on
people or the environment. Engaging in or being associ-
ated with unfair competition practices may distort fair
market conditions. By adhering to responsible tax prac-
tices, we contribute positively to society. Promoting the
Code of Conduct presents an opportunity to strengthen
our corporate culture, enhance resilience, and uphold
brand integrity. Promoting the Code of Conduct pre-
sents an opportunity to strengthen our corporate culture
and uphold brand integrity.
Corruption and bribery
Corruption and bribery undermine fair business prac-
tices and expose the company to legal risks, financial
penalties, and reputational damage. Effective manage-
ment of these risks is essential to maintaining stake-
holder trust and ensuring compliance with regulations.
Policies
Eltel’s Code of Conduct and its associated policies out-
line our expectations for employees and partners to
uphold high business standards.
• Code of Conduct
• Supplier Code of Conduct
• Whistleblowing Policy
• Responsible Procurement Policy
• Anti-Bribery and Anti-Corruption Policy
• Tax Policy
• Risk Management Policy
• Competition Instruction
• Sanctions Policy
Anti-corruption
Eltel is dedicated to conducting business in an ethical
and honest manner and is committed to implementing
and enforcing systems that ensure bribery is prevented.
We have a zero-tolerance policy for bribery and corrupt
activities. We are devoted to acting professionally, fairly,
and with integrity in all business contracts and relation-
ships, wherever we operate.
Whistleblowing procedure
Eltel has established a whistleblowing system in accord-
ance with the EU Whistleblowing Directive, providing
employees with a secure platform to report potential vio-
lations or concerns. The system addresses conduct that
may breach local or international law, the Code of
Conduct, Eltel’s values, policies, instructions, or human
rights related to our operations.
The whistleblowing system is communicated to all
employees, for example during mandatory annual Code
of Conduct training, called Fair Play training.
A third-party service provider manages the whistle-
blowing procedure to ensure confidentiality and ano-
nymity for those reporting. The system is implemented
across all countries where Eltel has operations, except
Lithuania and Germany. In each country, the local Legal
Manager is responsible for handling whistleblowing
reports, ensuring communication is conducted in the
local language. Reports are investigated on a confiden-
tial basis, and the outcomes are communicated back to
the whistleblower.
We regularly review the effectiveness of the grievance
mechanisms to ensure that remedies provided are
appropriate and that employee and other stakeholder
concerns are properly addressed.
Responsible tax practices
In line with the Code of Conduct statement and Tax
Policy, Eltel complies with local tax laws as well as inter-
national tax regulations such as OECD Transfer Pricing
Guidelines for Multinational Enterprises and Tax Admin-
istrations (OECD Guidelines) in all countries where Eltel
operates. We aim to report taxes correctly and pay the
correct taxes at the right time. Tax compliance and gov-
ernance are important elements of internal control, tax
risks are assessed on an ongoing basis and tax compli-
ance matters are reported to senior management as
well as to the Audit Committee. No executive or man-
agement employee of Eltel or by any of our subsidiaries
has been convicted or found to be in violation of any tax
laws or regulations.
Fair competition
Eltel is dedicated to emphasizing the importance of
compliance with competition laws and regulations.
Eltel’s Competition Instruction is used to increase
awareness and educate the workforce on the topic of
fair competition. Directed training is additionally pro-
vided to senior management. No executive or manage-
ment employee of Eltel or by any of our subsidiaries has
been convicted or found to be in violation of any laws or
regulations relating to fair competition.
Eltel is determined to uphold high standards in business
ethics and comply with all laws and regulations.
Annual Report 2024 49
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Reports submitted to Eltel’s
whistleblowing channels 2024 2023
Business ethics (fraud, corruption,
anti-competitive practices) 6 10
Discrimination, including
harassment 9 2
Other HR matters 10 8
Environmental non-compliance 0 0
Of the 25 reports submitted in 2024, 18 were closed and
7 are still under investigation. The conclusions of the
investigations were reported to the Audit Committee.
None of the whistleblowing investigations resulted in
criminal proceedings. In 2024, Eltel’s Legal functions
confirmed 1 instance of noncompliance with the
anti-bribery and anti-corruption (ABAC) policy within the
organization. Appropriate legal actions were taken in
response to the confirmed incident. Other actions
included the dismissal of 1 employee, process reviews,
and the strengthening of internal controls to prevent
similar occurrences in the future.
Managing supplier relationships
Eltel requires all our suppliers to uphold high ethical
standards regarding legal compliance, environmental
responsibility, fair competition, labor and human rights,
and anti-corruption. These principles are detailed in our
Supplier Code of Conduct.
In 2024, we adopted a Responsible Procurement
Policy and accompanying instructions that outline our
approach to integrating sustainability criteria into
procurement decisions.
To follow-up on performance, we have introduced
Supplier Surveys tailored to material suppliers, subcon-
tractors, and indirect suppliers. The Supplier Surveys
gather information on the suppliers’ management of
social, environmental, and governance (ESG) matters
relevant to their role in our value chain. The responses
to the surveys are used to assess the suppliers’ align-
ment with our policies. In 2024, surveys were sent to 555
key suppliers, covering approximately 51% of the year’s
supplier spend. The key suppliers were identified based
on their impact on Eltel’s Scope 3 emissions and their
share of total spend.
We are increasingly guided by environmental objec-
tives in our approach to partnerships and supplier selec-
tion. Our Scope 3 climate target drives the prioritization
of suppliers committed to the SBTi and those with set
science-based climate targets.
Supply chain compliance 2024
Number of Supplier ESG Survey responses 246
Prevention of corruption and bribery
Eltel employs a risk-based approach to managing
bribery and corruption, addressing risks through due
diligence processes and employee training.
We continuously provide employee training on our pol-
icies, reinforcing the importance of integrity in everyday
decisions. Our interactive Fair Play training promotes the
Code of Conduct, covering areas such as safety, secu-
rity, fair competition and anti-corruption. Annual Fair
Play training is mandatory for all employees, and new
employees receive the training as part of their onboard-
ing process.
In 2024, no significant fines, sanctions or incidents
were recorded relating to any non-compliance with
Eltel´s Code of Conduct or any laws and regulations.
No fines or convictions related to anti-corruption or
anti-bribery laws occurred in 2024.
Code of conduct training 2024 2023
Fair Play training completion,
% of employees 87 79
Annual Report 2024 50
OverviewGovernance information Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Auditor’s opinion regarding the
statutory sustainability report
To the general meeting of the shareholders in
Eltel AB (publ), corporate identity number 556728-6652
Engagement and responsibility
It is the board of directors who is responsible for the
sustainability report for the year 2024 on pages 26–50
and that it is prepared in accordance with the Annual
Accounts Act in accordance with the older wording
that applied before 1 July 2024.
The scope of the examination
Our examination has been conducted in accordance
with FAR:s auditing standard RevR 12 The auditor’s
opinion regarding the statutory sustainability report. This
means that our examination of the statutory sustainabil-
ity report is different and substantially less in scope than
an audit conducted in accordance with International
Standards on Auditing and generally accepted auditing
standards in Sweden. We believe that the examination
has provided us with sufficient basis for our opinion.
Opinion
A statutory sustainability report has been prepared.
Stockholm 25 March 2025
KPMG AB
Fredrik Westin
Authorized Public Accountant
Annual Report 2024 51
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Board of Directors’ report
Annual Report 2024 52
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Board of Directors report 2024
The Board of Directors and the CEO of Eltel AB, corporate registration number 556728-6652, with its registered office
in Stockholm, hereby submit the Annual Report and consolidated financial statements for the 2024 financial year.
Eltel AB and its subsidiaries operate under the Eltel brand. The consolidated group is called Eltel Group.
Company overview
Eltel is the leading service provider for critical infrastruc-
ture in the Nordics. We deliver a comprehensive range of
communication and power services – everything from
the design and build phase to corrective maintenance.
This includes design, planning, building, installing,
maintaining and securing the operation of networks for
a more sustainable and connected world today and for
future generations.
Our customers are primarily national owners and
operators of communication and power networks. We
offer a 24/7 and extensive geographical presence in our
home markets.
Most of our work is conducted through long-term
framework agreements that run between two to five
years. This allows us to create and maintain long-term
relationships with our customers and, through close
cooperation, help them achieve their objectives.
As a consequence of the global trends affecting soci-
ety, the infranet sector is constantly changing. The key
ongoing trends driving this change include increasing
customer and security demands, network reliability and
surveillance, regulatory requirements, the need to
upgrade ageing power infrastructure and the growing
use of renewable energy in society. Eltel operates in the
Nordic market and is also represented in Germany and
Lithuania.
Communication services
Eltel optimizes communication networks to address
society’s growing demand for digitalization, transform-
ing how people live, work and play. The business is
primarily driven by technology upgrades, maintenance
needs and increased demand for improved capacity and
faster networks.
Eltel’s main customers are large telecom operators
and communication network infrastructure owners.
Operations generally involve long-term relationships
with a steady inflow of orders generated by framework
agreements.
Read more about Eltel’s Communication offering on
page 14.
Power services
Eltel’s Power services enable the electrification of soci-
ety, which is playing a crucial role in developing sustain-
able energy solutions and helping to achieve national
climate objectives. The demand for increased network
capacity and capabilities is a major driver in the power
market that will continue in the foreseeable future.
Primary customers include national transmission
system operators, owners of power distribution grids
and utility companies. Eltel also serves industrial
companies and the public sector.
Read more about Eltel’s Power offering on page 15.
Major contracts 2024
During 2024, Eltel signed contracts with a combined
value of about EUR 863.3 million (714.0). Selection of
important contracts:
• Eltel Sweden signed two contracts with the Swedish
Transport Administration, with a total value of EUR
165 million. Both contracts have a maximum duration
of seven years.
• Eltel Norway signed a three-year continuation of a
current agreement with Telenor with an estimated
value between EUR 90–180 million.
• Eltel Finland was selected by Taaleri Energia to con-
struct and maintain the second largest solar park in
Finland, with a contract value of EUR 73.5 million.
• Eltel Finland and Telia in Finland signed a three-year
continuation of a current frame agreement worth
about EUR 70 million.
• Eltel Finland and Elisa prolonged their partnership
with a frame agreement by two years, with an
estimated value approximately EUR 62 million.
• Eltel Finland and Helen Electricity Network Ltd signed
a five-year agreement to construct and maintain
Helsinki’s electricity distribution network, with an
estimated value of EUR 50 million.
Significant events 2024
Polish High Voltage business divested
Eltel divested its loss-making High Voltage business
in Poland to minimize complexity and risks, focusing
on core markets.
Continued focus on operational and commercial
efficiency
All Country Units improved operational excellence
with initiatives to boost profitability, including price
increases and renegotiations.
Broadened customer base
We expanded our customer base in Communication,
focusing on public infrastructure and defence, and in
Power, attracting diverse new customers.
Position taken in new and adjacent markets
Eltel established itself as a reliable turnkey provider in
renewable energy across the Nordics, by delivering
solar park projects, implementing EV charging
stations, and completing the first BESS, Battery
Energy Storage System projects.
Green offering intensified
The Eltel Green Choice concept was launched to
highlight sustainable project alternatives. The first
project began for Helen Electricity Network in
Helsinki.
Annual Report 2024 53
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Board of Directors report 2024
January–December 2024
In segments, net sales increased by EUR 10.4 million.
Organic net sales in segments, adjusted for currency
effects, increased by 1.5%. Mainly as a consequence of
the divestment of High Voltage Poland, net sales
decreased by 2.5% to EUR 828.7 million (850.1). Organic
growth, adjusted for currency effects and divestments
was 1.8%. Currency effects had a positive impact of EUR
0.1 million.
Eltel’s main operations in the four Nordic countries are
presented as segments. In Q4 2024, the segments
represented 94% of the net sales.
Other business includes High Voltage Poland until its
divestment in Q2 2024, Smart Grids Germany, Lithuania
as well as closing activities for Power Transmission
International.
Adjusted EBITDA
Adjusted EBITDA was EUR 45.2 million (31.8). Adjusted
EBITA improved to EUR 10.5 million (1.7) and the
adjusted EBITA margin was 1.3% (0.2). Adjusted EBITA
in segments was EUR 21.1 million (11.8) and the margin
was 2.7% (1.5). In Other business, adjusted EBITA was
EUR 0.7 million (-1.0)
Finland
Net sales increased by EUR 13.3 million, or 3.8%, to EUR
357.7 million (344.5). Growth in Communication,
especially in the fiber-to-the-home business continued
to be strong in 2024. Customers’ investments into fiber
have remained at high levels and volumes of other
Communication business offerings have been stable
throughout the year.
In line with our expectations, our Power services
related to power infrastructure experienced a slight
decline in volumes, mainly as a result from the market
regulation. Power transmission volumes declined,
mainly due to postponed customer decisions and
investments in green energy transition projects. To fit
our offering and organization to future market demand,
we initiated and completed change negotiations,
resulting in a reduction of 74 positions.
Adjusted EBITA improved by EUR 9.1 million to EUR
15.7 million (6.5). The adjusted EBITA margin was 4.4%
(1.9). The profitability improvement is partly due to the
increased volumes in Communication, but is also attrib-
uted to efficiency improvements and rightsizing the
operations for the future market demands.
During 2024, Eltel Finland signed new contracts with a
combined value of about EUR 383.0 million (232.2)
adding to the total orderbook.
Read more about Eltel Finland on page 16–17.
Sweden
Net sales increased by EUR 13.3 million, or 6.7%, to EUR
211.8 million (198.5). Growth in local currency was 6.2%.
Currency effects had a positive impact of EUR 1.0
million. Net sales growth was mainly a result of good
volumes in Power. In Communication, the strong fourth
quarter resulted in full year net sales growth.
Adjusted EBITA amounted to EUR 6.1 million (2.9).
The adjusted EBITA margin was 2.9% (1.5). The
improved profitability mainly resulted from better
margins in Power, both in services related to power
infrastructure and to the Smart Grids business. Also in
Communication, the adjusted EBITA improved slightly.
During 2024, Eltel Sweden signed new contracts with
a combined value of about EUR 234.5 million (198.2)
adding to the total orderbook.
Read more about Eltel Sweden on page 19.
Norway
Net sales decreased by EUR 15.2 million, or 11.7%, to
EUR 114.9 million (130.1). Currency effect was EUR -1.7
million. Growth in local currency was -10.3%. Decreased
customer investments in Communication burdened net
sales heavily throughout the year. However, the strong
focus on broadening the customer base started to yield
results during the year.
Adjusted EBITA was EUR -5.7 million (-2.5). The
adjusted EBITA margin was -4.9% (-1.9). The profitability
was negatively impacted by declining volumes in
Communication.
Rightsizing the operations for the future market
demands, including a restructuring process with reduc-
tion of over 200 employees and fleet, continued. In line
with Eltel’s strategy, the focus has been, and will
continue to be, on margins and profitability rather than
volumes.
During 2024, Eltel Norway signed new contracts with
a combined value of about EUR 184.6 million (161.2)
adding to the total orderbook.
Read more about Eltel Norway on page 21.
Denmark
Net sales decreased by EUR 1.0 million, or 1.1%, to EUR
92.0 million (93.0). Net sales continued to decline in
Communication, while the Power business showed a
strong growth, albeit not compensating for the decline in
Communication.
Adjusted EBITA was EUR 5.0 million (4.9). The
adjusted EBITA margin was 5.4% (5.2). Thanks to
improved profitability in Communication as well as in the
Smart Grids business in Power, margins were kept at a
healthy level.
During 2024, Eltel Denmark signed new contracts
with a combined value of about EUR 36.2 million (48.1)
adding to the total orderbook.
Read more about Eltel Denmark on page 23.
Leverage
0
1
2
3
4
Q4
2024
Q3
2024
Q2
2024
Q1
2024
Q4
2023
Leverage ratio: Net debt / Adjusted EBITDA
Net sales
100
130
160
190
220
250
Q4Q3Q2Q1
710
740
770
800
830
860
MEUR MEUR
2023 2024 2023 2024 2023 2024 2023 2024
Net sales, quarterly, MEUR
Net sales, rolling 12 months, MEUR
Adjusted EBITA
–6
–3
0
3
6
9
Q4Q3Q2Q1
–1.0
–0.5
0.0
0.5
1.0
1.5
MEUR %
2023 2024 2023 2024 2023 2024 2023 2024
Adjusted EBITA, quarterly, MEUR
Adjusted EBITA margin, rolling 12 months, %
Annual Report 2024 54
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Board of Directors report 2024
Other business
Net sales decreased by EUR 31.8 million to EUR 61.9
million (93.7). Of the decline EUR 20.9 million came from
High Voltage Poland, which was divested in Q2 2024. In
2023, the net sales in High Voltage Poland amounted to
EUR 36.3 million.
Adjusted EBITA improved by EUR 1.7 million to EUR
0.7 million (-1.0). In High Voltage Poland adjusted EBITA
was EUR -1.0 million (-4.9), which contributed to the
improved profitability until its divestment in Q2 2024.
Read more about Other business on page 25.
Cash flow
Cash flow from operating activities was EUR 27.5 million
(34.0). Main items included EBITDA EUR 16.7 million
(24.8), adjustment for gain/loss on sale of assets and
business EUR 22.8 million (-0.1), cash flow from change
in net working capital EUR -2.5 million (29.4, including
EUR 28.3 million positive impact from tax deferral in
Sweden), financial items EUR -12.4 million (-12.0) and
income taxes EUR -0.9 million (-3.2). Cash flow from
financial items and income taxes is impacted by timing
differences between income statement and payments.
Cash flow has historically displayed a strong seasonal
pattern, with weaker cash flow recorded during the
period until the end of the third quarter due to higher
production activity. Eltel’s net working capital level is
also impacted by phasing of projects. These projects,
and delays in them, might result in continued tie up of
working capital and can create volatility in the net
working capital also going forward.
Net cash flow from investing activities was EUR -6.6
million (-4.3) including EUR -4.6 million cash flow impact
from divestment of the Polish High Voltage business in
Q2 2024 and net capital expenditure on machinery and
equipment EUR -2.0 million (-4.3).
Cash flow from financing activities was EUR -24.0
million (-52.3). Utilization of short-term financing
increased by EUR 8.9 million (decrease of 42.5). Amorti-
zation of term loan amounted to EUR 4.0 million (11.0),
payment of hybrid bond interests amounted to EUR 3.4
million (0.8) and payments of lease liabilities were EUR
25.2 million (22.1). In addition, in January–December
2023 net proceeds from issue of the hybrid bond and
related transaction costs amounted to EUR 24.2 million.
In January–December 2023 Eltel also issued and
purchased shares in accordance with a long-term
incentive program, which had a cash flow impact of
EUR 2.4 million and EUR -2.4 million, respectively.
Financial position, cash and cash equivalents
Equity at the end of the period was EUR 189.3 million
(223.6) and total assets were EUR 585.4 million (624.3).
The equity ratio was 35.5% (39.6).
INTEREST-BEARING LIABILITIES AND NET DEBT
EUR million 31 Dec 2024 31 Dec 2023
Interest-bearing debt 76.3 71.1
Leasing liabilities 58.7 53.9
Allocation of effective interest
to periods 0.2 0.3
Less cash and cash equivalents -21.3 -24.7
Net debt 114.0 100.6
EUR million 31 Dec 2024 31 Dec 2023
Non-current interest-bearing debt 15.8 20.7
Current interest-bearing debt 60.5 50.4
Total interest-bearing debt 76.3 71.1
Non-current leasing liabilities 36.0 33.9
Current leasing liabilities 22.7 19.9
Total leasing liabilities 58.7 53.9
CREDIT FACILITIES
EUR million 31 Dec 2024 Maturity
Term loan, current 4.0 Mar 2025–
Dec 2025
Term loan, non-current 16.0 Jan 2026
Revolving credit facility 90.0 Jan 2026
Account overdrafts 15.0 Jan 2026
Total committed credit facilities 125.0
Commercial paper program 150.0 N/A
Available liquidity reserves, including the committed
revolving credit facility, account overdrafts and cash and
cash equivalents, amounted to EUR 80.3 million (90.7).
Additional to the committed facilities, the Group also has
access to short-term debt capital markets via a com-
mercial paper program of EUR 150 million. On 31
December 2024, EUR 10.0 million (8.0) of the commer-
cial paper program and EUR 46.0 million (39.0) of the
revolving credit facility were utilized.
Commercial guarantees
On 31 December 2024, the commercial guarantees
issued by the banks and other financial institutions on
behalf of the Group amounted to EUR 52.3 million (89.3).
Sustainability
Eltel has, in accordance with the Annual Accounts Act
chapter 6 section 11, prepared the statutory Sustainabil-
ity Report as a separate report which was approved for
issue by the Board of Directors and the President and
CEO. The scope of the Statutory Sustainability Report is
defined on pages 26–50.
Employees
Eltel’s goal is to be the most attractive employer in the
industry by focusing on employee engagement and
development opportunities. At the same time, we strive
to be the best partner in the projects we deliver, prioritiz-
ing the well-being of all those affected by our operations.
Ensuring that all employees return home safely every
day is Eltel’s top priority. Working on sites and transpor-
tation to and from the different work locations involves
significant health and safety risks due to the nature of
the tasks performed. These include, for example, electri-
cal safety hazards and risks associated with working at
heights, managing aging infrastructure, and road safety.
In 2024, the Lost Time Injury Frequency rate (LTIFR)
increased slightly from 2.8 to 3.5, though this result still
met our established safety targets.
Eltel conducts an annual group-wide employee
engagement survey. The purpose is to communicate
and understand how the employees feel about various
aspects of their work, including managerial duties, work-
load, and opportunities for professional development. In
2024, a new area was added to the survey, Company val-
ues. It appears that efforts to communicate the values
have been well-received by employees, as the average
score for employee identification with these values was
3.9 out of 5. Once again, Relationships with Colleagues
was the highest-rated area, improving to 4.2, from last
year. Health and Safety, Meaningfulness and Participa-
tion, and Relationship with Manager continue to be
important drivers of employee engagement.
In 2024, the average number of employees decreased
by 9.4% to 4,550 (5,024). At the same time as Eltel
recruited new skills to meet the needs in the new areas
of renewable energy such as solar power and e-Mobility,
a certain number of employees in the various charging
units were laid off due to lower volumes than previously
expected.
For more information, please refer to social
information, pages 44–48.
Annual Report 2024 55
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Risk management
The goal of Eltel’s Risk Management is to safeguard strategy execution from
unexpected risks through assessing risks and opportunities on a daily basis.
Risk awareness is part of our daily mindset.
The control environment within Eltel’s corporate govern-
ance framework includes a set of clear rules of proce-
dure for the Board of Directors and its committees, a
clear organizational structure, documented delegation
of authority (from the Board of Directors to the Group
Management Team) and a series of Group policies and
instructions. The governance framework and internal
controls are applicable to all Eltel companies.
Eltel has a risk management process in place. The
Internal Audit Function evaluates if the process is being
followed and communicates identified deficiencies to
top management.
For more information regarding financial risk
management, please refer to note 14 in the
Consolidated financial statements.
Risk Reporting
The Group Risk Management Team (RM Team), which is
comprised of members of the current Group Function
Management as defined in the Risk Management Policy,
is responsible to ensure that risks are addressed ade-
quately by Country Unit management. This is performed
bi-annually when the forum discusses the risks and
reviews them with a comparable view to ensure ade-
quate risk management is in place. The forum provides
feedback to the Audit Committee and the Board of Direc-
tors.
Country Unit Group CEO/CFO Group RM Team
Board/
Audit Committee
Identifies operational risks
and opportunities. Reports
risks, weight of risks and
potential action plan via
Monthly Business Review
template.
Addresses risks and
opportunities as part of the
Business Plan.
Reviews risks and opportu-
nities during monthly busi-
ness reviews. Confirms
actions and deadlines.
Reviews and approves risks
as part of the Business
Plan.
Reports top operational
risks to the Audit Commit-
tee at least bi-annually.
Meets bi-annually to review
top risks to identify issues
and decide whether further
actions are needed, or
escalated.
Prepares a bi-annual risk
report to the Audit
Committee as a summary
of top strategic and opera-
tional risks.
Reviews deliverables from
management and provides
advice to the CEO.
Provides feedback
Reports
RISK REPORTING ROLES
Annual Report 2024 56
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Risk management
MOST SIGNIFICANT RISKS
Strategic risk Actions Type
Sales and EBITA development long term:
Eltel’s limited capability to adjust to fluctuating customer demands is a sales and profitability risk. During the strategy
period 2024–2026 the actual timing and value of telecom customers’ CAPEX investments is uncertain. Furthermore, there
is a risk of project delays due to higher than acceptable financing costs for customers, in new market segments such as
e-Mobility, solar PV and mobile indoor.
Inability to realize savings measure targets may further impact Eltel’s ability to improve profitability as planned.
Actions are ongoing to develop the offering and secure project timelines.
Increased Group Management steering and analysis of the effect of saving measures.
Sales and EBITA
Financial risk:
The most significant financial risks are risks related to the availability of financing (refinancing and obtaining new loans)
and liquidity.
As it is unlikely that bank financing can be increased in the short term, Eltel will likely have to seek some other form of liquidity
buffer to secure continued operations and investment in growth.
Financing and liquidity
High dependency on one key customer in Norway:
Contract renegotiations and changes in volumes coming from the key customer have a significant impact on the net sales,
profitability and operations of the Norwegian Country Unit.
There are ongoing activities to find growth and broaden the customer base, as well as increased support and focus from
Group Management and Group Functions.
Customer
Operative risk Actions Type
Health and safety in the working environment:
Risk to employee or subcontractor health and safety in our operations is Eltel’s most salient human rights risk. Main risk is
injuries and incidents which may occur to our employee’s and/or subcontractors through their daily activities.
Sharing of learnings from incidents and cascading safety bulletins throughout the organization including sharing such details
with subcontractors, mainly to technicians and project managers, to improve awareness and incident prevention.
Health and safety
Capacity and competences:
Lack of strong commercial mindset through-out the organization increases the risk of not reaching targets related to Eltel’s
overall profitability and market share on new markets.
The availability of resources and finding the right competences is a challenge. The increasing salary levels make it even
more challenging to attract and retain the right people.
Increased training of relevant personnel and overall awareness of commercial mindset. Increasing capacity to manage growth
into new markets.
Increasing resources through recruitment and the use of subcontractors. Actions also include moving resources between
teams where possible to ensure the production capacity.
Capacity and
competence
Inconsistent ways of working:
Lack of standardized processes, sub-optimal systems/applications and inconsistent general ways of working decrease
Eltel’s ability to reach desired savings, efficiency and EBITA targets as well as perform accurate forecasting. Such also
increases the risk of unexpected write-downs, penalties and/or poor result.
Harmonization initiatives steered by cross-border forums and use of Group Shared Services (GSS) as a strategic partner. This
includes process and tool development as well as sharing of key learnings and best practices.
Process
IT & Cybersecurity:
Increased cybercrime activity can present risks to the Group’s data security and continuity. Human behavior is a key risk for
IT security (e.g. downloading of unlicensed or malicious software or improper data transfers).
Investing in capabilities to identify serious threats to security and continuity. Security training given high focus to secure that
the human firewall is in place.
Group and Local NIS2 steering committees and defined action plans.
IT & Cybersecurity
Sustainability:
There is a risk that during the tendering and planning phases the increasing sustainability related requirements in customer
contracts are not fully considered or accurately defined, leading to unexpected costs, penalties and/or reputational dam-
age for Eltel.
Further refer to Sustainability Report, pages 26–50.
Ensuring that sustainability requirements are comprehensively considered during the tendering and planning phases and sub-
sequent implementation phase.
Further refer to Sustainability Report, pages 26–50.
Sustainability
Annual Report 2024
57
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Risk management
Remuneration of senior executives
For information regarding remuneration to senior execu-
tives in 2024 and 2023, please refer to note 30 Remuner-
ation to senior executives, in the Consolidated financial
statements.
The Board of Directors of Eltel AB does not propose
any changes to the guidelines for remuneration to senior
executives, as adopted at the Annual General Meeting
2024.
Guidelines for remuneration to senior executives of
the company
Eltel AB’s Annual General Meeting 2024 resolved to
adopt guidelines for remuneration to senior executives
on the following principal terms and conditions.
Scope and applicability of the guidelines
These guidelines for remuneration to senior executives
cover remuneration to the Board of Directors, the CEO,
the Deputy CEO and other senior executives (the Group
Management Team). The guidelines are applicable to
remuneration agreed, and amendments to remuneration
already agreed, after the adoption of the guidelines by
the Annual General Meeting 2024.The guidelines apply
until the general meeting resolves to adopt new guide-
lines for remuneration to senior executives. These
guidelines do not apply to any remuneration decided or
approved by the general meeting, e.g. remuneration to
the Board of Directors and long-term incentive pro-
grams, which are decided separately by the general
meeting of shareholders.
The Board of Directors shall be entitled to temporarily
deviate from these guidelines, in whole or in part, if
special reasons justify doing so in an individual case and
such deviation is necessary in order to meet the
Company’s long-term interests and sustainability or to
ensure the company’s financial viability. If such a devia-
tion occurs, it must be reported in the Remuneration
Report before the next Annual General Meeting. As set
out below, the Remuneration Committee’s tasks include
preparing the Board of Directors’ resolutions in remuner-
ation related matters, including potential matters
regarding deviation from the guidelines.
The guidelines promote the company’s business
strategy, long-term interest and sustainability
The Board of Directors considers that a prerequisite of
the successful implementation of the company’s
business strategy and safeguarding of its long-term
interests, including its sustainability, is that the company
is able to recruit and retain a highly competent manage-
ment with capacity of achieving specified goals. To this
end, it is necessary that the company can offer competi-
tive remuneration to motivate senior executives to do
their utmost.
Variable cash remuneration covered by these guide-
lines shall be based on criteria that aim at promoting the
company’s business strategy and long-term interests,
including its sustainability, and where the fulfilment of
the criteria is determined by the method set out below.
For a description of the company’s strategy, please refer
to www.eltelgroup.com/investors/investor-information/
strategy-and-targets/
Forms of remuneration
The remuneration to senior executives shall be based on
market terms. The remuneration may consist of fixed
base salary, variable remuneration, pension, and certain
other benefits. In addition, the general meeting may –
regardless of these guidelines – resolve on share-
related or share price related remuneration.
Fixed base salary
Fixed base salary for senior executives reviewed yearly
and in accordance with local practices. The fixed base
salary constitutes 60–80% of total remuneration exclud-
ing LTI and assuming a 50% outcome of STI.
Cash short-term incentives (STI)
The aim of the short-term incentive is to reinforce the
right performance and behaviors – financially and
operationally – and to align the individual performance
with the company’s business strategy, long-term inter-
ests, and sustainability.
The key performance criteria for senior executives are
primarily financial, i.e. net sales, EBITA, operative cash-
flow, net working capital (NWC) in relevant currencies
and safety measured as the lost time injury frequency
rate (LTIFR). A minor part of certain senior executives’
key performance criteria can be discretionary under spe-
cial circumstances.
The minimum financial performance of the company
for any STI pay-out is defined by the Board of Directors
as a level of result in EBITA. This level is set to guarantee
a lowest level of earnings for the company before any
STI pay-out is made.
The short-term incentives can amount to a maximum
of 80% of the fixed base salary for the CEO and 60% for
other senior executives.
Unless otherwise provided by mandatory law or obli-
gations in applicable collective bargaining agreements,
short-term incentives shall not entail any deposition of
pension.
The STI is paid in connection with the ordinary
monthly salary that is paid four months after the end of
the qualifying period. The company is not able to recover
remuneration paid out as STI.
In specific situations, for example in relation to
potential divestments, M&A or specific projects, Eltel
may offer cash bonuses that are conditional on the
success of the specific transaction or project.
Long-term Incentives (LTI)
Senior executives can be offered share-related or share
price-related remuneration. LTI are intended to improve
the participants’ commitment to the company’s develop-
ment and they shall be implemented on market- based
terms. Resolutions on incentive programs related to
shares and share prices must be passed at the general
meeting and are therefore not covered by these
guidelines.
Other benefits
Pension
Senior executives are offered pension benefits that are
primarily based on defined insurance payments and in
accordance with local practices.The pension benefits
are generally funded through payments to insurance
companies or trustee-administered funds.
Company car
Senior executives are offered a company car and
other benefits (such as allowances to physical activity,
personal health, lunch facilities, health insurance etc.) in
accordance with local rules, regulations, and practices in
each country.
Other benefits constitute 4–14% of total remuneration
excluding LTI and assuming a 50% outcome of STI.
Annual Report 2024 58
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Risk management
Notice of termination and severance pay
The senior executives’ employment or contractual
agreements shall be valid until further notice or for a
specified period of time.
The notice period is twelve months for the CEO in the
event of termination by the company and twelve months
in the event of termination by the CEO. In the event of ter-
mination by the company, the CEO is entitled to a sever-
ance pay equivalent of twelve months’ fixed base salary
and payable in one sum. The total amount of the salary
and severance payment for the CEO may not exceed an
amount corresponding to two years’ fixed base salary.
The notice period is twelve months for other senior
executives in the event of termination by the company
and six months in the event of termination by other sen-
ior executives themselves. No other senior executive
than the CEO is entitled to severance payment.
Salary and terms of employment for employees
In preparing the Board of Directors’ proposal for these
remuneration guidelines, the salaries, and terms of
employment for the company’s employees have been
taken into account.
Information about employees’ total remuneration,
components of their remuneration as well as increases
in remuneration and increases over time have been
obtained and have constituted a part of the Remunera-
tion Committee’s and the Board of Directors’ decision
basis in their evaluation of the fairness of the guidelines
and the limitations arising from them.
The resolution process
The Board of Directors shall prepare a proposal for new
guidelines when there is a need for significant changes
to the guidelines, however at least every four years. The
Board of Directors’ proposal is prepared by the Remu-
neration Committee. The chairman of the Board of
Directors may chair the Remuneration Committee. In
order to manage conflicts of interest, other members of
the Remuneration Committee who are elected by the
Annual General Meeting must be independent in relation
to the company and the senior executives.
The Remuneration Committee shall, inter alia, monitor
and evaluate the application of the guidelines for remu-
neration to senior executives decided by the Annual Gen-
eral Meeting. When the Remuneration Committee has
prepared the proposal, it is submitted to the Board of
Directors for decision.
The CEO or other senior executives shall not be pres-
ent while the Board of Directors addresses matters
related to remuneration and passes resolutions about
them, insofar as they are affected by the matters.
If the Annual General Meeting does not resolve to
adopt guidelines when there is a proposal for such, the
Board of Directors shall submit a new proposal no later
than the next Annual General Meeting. In such cases,
remuneration shall be paid in accordance with the
current guidelines or, if no guidelines exist, in accord-
ance with the company’s practice.
External advisors are used in the preparation of remu-
neration-related matters when deemed necessary.
Subsequent events
Ingrid Therese Tjøsvold appointed as new
Managing Director for Eltel Norway
On 15 January 2025, it was announced that Ingrid
Therese Tjøsvold had been appointed as new Managing
Director for Eltel Norway. Ingrid Therese Tjøsvold
replaces Thor-Egel Bråthen who is leaving Eltel. Ingrid
Therese Tjøsvold assumed her role in February 2025.
Corporate Governance Report
Eltel has issued a Corporate Governance Report for the
financial year 2024. The Corporate Governance Report
has been prepared in accordance with the Swedish
Corporate Governance Code.
The Eltel share
Eltel’s shares are listed on Nasdaq Stockholm, under the
trading symbol “ELTEL”. As per 31 December 2024, the
total number of shares amounts to 160,585,581 divided
into 156,736,781 ordinary shares with 1 vote per share
and 3,848,800 C shares with 1/10 vote per share. The
share capital entered in the trade register per 31 Decem-
ber 2024 is EUR 161,950,203.
More about the Eltel share please refer to pages
110–111.
Dividend policy
A dividend policy has been adopted whereby 50% of
Eltel’s consolidated net profit shall be paid in dividends
over time (with flexibility in relation to the pay-out ratio).
The Parent Company
Eltel AB owns and governs the shares of Eltel Group. The
Company holds management functions but has no oper-
ative business activities and its risks are mainly attribut-
able to the value and activities of its subsidiaries.
The Parent Company’s income amounted to EUR 8.3
million (1.9) related to support function services pro-
vided to the Group. The operating expenses amounted
to EUR 9.1 million (7.4).
Financial income amounted to EUR 21.2 million (20.8)
related to interest income from Group companies.
Financial expenses amounted to EUR 4.2 million (3.6)
and Group contribution of EUR 16.0 million (11.6) was
given to a subsidiary company. Net result was EUR 0.2
million (0.1).
The Board’s proposal for the distribution of profits
The Parent Company’s non-restricted equity on 31
December 2024 was EUR 303,317,433.53 of which the
net profit for the year was EUR 164,746.60. The Board of
Directors proposes to the Annual General Meeting that
no dividend be paid for the year 2024 and that the
non-restricted equity of EUR 303,317,433.53 be retained
and carried forward.
Annual Report 2024 59
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Corporate Governance report
Eltel AB (publ) (hereafter referred to as “Eltel” or the “Company”) is a
Swedish public limited liability company with its shares admitted to
trading on Nasdaq Stockholm.
Eltel complies with the guidelines and provisions of its
Articles of Association, the Swedish Companies Act
(Sw. Aktiebolagslagen (2005:551)), the Swedish Annual
Accounts Act (Sw. Årsredovisningslagen (1995:1554)),
the rules and regulations of Nasdaq Stockholm’s Rule
Book for Issuers, as well as other applicable Swedish
and international laws and regulations. Eltel applies the
Swedish Corporate Governance Code (the “Code”),
issued by The Swedish Corporate Governance Board
(Sw. Kollegiet för svensk bolagsstyrning), available at
www.corporategovernanceboard.se
Eltel’s Audit Committee has reviewed this Corporate
Governance Report (the “Report”) and confirms that the
description of the main features of the internal audit and
risk management section, as related to the financial
reporting process, is consistent with the financial state-
ments, as set out in Eltel’s Annual Report 2024.
Eltel’s governance structure
Eltel’s internal governance is regulated by the Swedish
Companies Act and the Code.
Shareholders
Ownership structure
As per 31 December 2024, Eltel has 3,321 shareholders.
The four largest shareholders of Eltel AB are Solero
Luxco S.á.r.l. 16.4% (a company controlled by Triton
Funds), Wipunen Varainhallinta Oy 14.9%, the Fourth
Swedish National Pension Fund (AP4) 9.6%, and
Heikintorppa Oy 8.7%. The four largest shareholders
referred above together represent 49.5% of the votes in
the Company.
Shares and votes
Eltel’s shares are listed on Nasdaq Stockholm, under the
trading symbol “ELTEL”. As per 31 December 2024, the
total number of shares amounts to 160,585,581 divided
into 156,736,781 ordinary shares with 1 vote per share
and 3,848,800 C shares with 1/10 vote per share. The
share capital entered in the trade register per 31 Decem-
ber 2024 is EUR 161,950,203.
The General Meeting of shareholders
The General Meeting of shareholders is Eltel’s highest
decision-making body. In addition to the Annual General
Meeting of shareholders, Extraordinary General Meet-
ings of shareholders may be convened at the discretion
of the Board of Directors or, if requested by the external
auditor or by shareholders holding at least 10% of the
shares. At the Annual General Meeting, shareholders
exercise their voting rights on matters such as:
• Approving the financial statements
• Deciding on the distribution of dividends
• Discharging the company’s Board of Directors and
CEO from liability for the financial year
ELTEL’S GOVERNANCE STRUCTURE
CEO
NorwayFinland Denmark
Other
business
Sweden
Legal & Sourcing
Business Development
Communications
& Investor Relations
Finance
& Administration
Board of
Directors
Annual
General
Meeting
Audit Committee
Auditors
Remuneration
Committee
Nomination Committee
Annual Report 2024 60
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Corporate Governance report
• Electing the Company’s Board of Directors and
auditors and deciding on their remuneration
• Other matters as stipulated in the Swedish Compa-
nies’ Act, the Articles of Association or the Code, as
applicable.
All General Meetings are convened by notice in the
Swedish Official Gazette (Sw. Post- och Inrikes
Tidningar) and by publishing the notice of the meeting
on Eltel’s website. At the time of the notice, an announce-
ment with information that the notice has been issued is
published in the newspaper Svenska Dagbladet. Eltel
also publishes invitations to its General Meetings as
regulatory press releases.
All shareholders who have been entered in the share
register and have informed the Company of their attend-
ance within the time limit stated in the notice of the
meeting are entitled to participate at Eltel’s General
Meetings and vote according to the number of shares
held. Shareholders are also entitled to be represented by
a proxy at the meeting.
Annual General Meeting 2024
Eltel’s Annual General Meeting was held on 14 May
2024. Shareholders representing 94,902,767 shares,
constituting 59.1% of the total number of shares and
votes in the Company, participated. Matters addressed
at the meeting included the following:
• Resolution regarding adoption of the profit and loss
statement and the balance sheet and the consoli-
dated profit and loss statement and consolidated bal-
ance sheet and resolution regarding appropriation of
the Company’s profit according to the adopted bal-
ance sheet
• Resolution regarding discharge from liability for the
members of the Board of Directors and the CEO
• Re-election of Ann Emilson, Joakim Olsson, Erja
Sankari, and Roland Sundén as members of the Board
of Directors. New election of Per Sjöstrand and Johan
Nordström as members of the Board of Directors and
Per Sjöstrand as Chairman of the Board of Directors.
• Election of KPMG AB as the auditor (whereby it was
announced that Fredrik Westin will continue as
auditor-in-charge)
• Resolution regarding approval of the Remuneration
Report for 2023
• Resolution regarding adoption of guidelines for
remuneration to senior executives
• Resolution regarding a share-based long-term incen-
tive program 2024 (“LTIP 2024”)
• Authorization for the Board of Directors to resolve to
issue new shares and authorization for the Board of
Directors to resolve to repurchase and transfer the
Company’s own shares.
The minutes of the Meeting and other related docu-
ments can be found on Eltel’s website:
https://www.eltelgroup.com/about-us/corporate-
governance/annual-general-meeting/agm-archive/
Annual General Meeting 2025 and
Annual Report 2024
Eltel’s Annual General Meeting 2025 will be held on
The Annual Report 2024 will be made available
on the Group website www.eltelgroup.com from
week 13, 2025.
Nomination Committee
According to the Rules of Procedures for the Nomina-
tion Committee (the “Rules of Procedure”), the commit-
tee shall, as a starting point, comprise four members,
each representing one of the four largest shareholders
in Eltel as per the last banking day in August the year
before the Annual General Meeting. The Rules of Proce-
dures stipulate that the Nomination Committee’s main
duties are to propose candidates for the Board of
Directors, the Chairman of the Board, as well as fees and
other remuneration for the members of the Board of
Directors, and that the Nomination Committee is to
make proposals on the election and remuneration of the
statutory auditor. Shareholders in Eltel are invited to sub-
mit proposals to the Nomination Committee. Further,
under the Rules of Procedures, the Nomination Commit-
tee shall pay special attention to the requirements relat-
ing to diversity and breadth of qualifications, experience,
and background, as well as the requirement to strive for
gender balance in the Board of Directors.
Pursuant to the Rules of Procedures, the Nomination
Committee shall accomplish its duties in accordance
with the Code. As stated in the Nomination Committee’s
motivated statement in April 2024, when preparing its
proposal on the composition of the Board of Directors
for the Annual General Meeting 2024, the Nomination
Committee applied rule 4.1 of the Code as diversity pol-
icy. Pursuant to rule 4.1 of the Code, (i) the Board of
Directors shall have a composition appropriate to the
company’s operations, phase of development and other
relevant circumstances, (ii) the Board members elected
by the general meeting shall collectively exhibit diversity
and breadth of qualifications, experience and back-
ground, and (iii) the company shall strive for gender bal-
ance on the Board. The aim of the diversity policy is that
the Board of Directors shall have a composition that
ensures its capacity to manage the Company’s affairs
efficiently, with integrity and in the best interests of the
Company and all its shareholders. Out of the Board
members elected by Eltel’s Annual General Meeting
2024, four (4) were men and two (2) were women.
An annual evaluation of the Board of Directors’ work,
expertise, composition, and independence of its mem-
bers is initiated by the Chairman of the Board of Direc-
tors, partly to assess the preceding year and partly to
identify areas of development for the Board of Directors.
The evaluation is performed with the support of an eval-
uation form and through discussions, as well as through
individual interviews of the members of the Board of
Directors.
Nomination Committee for the AGM 2025
For the 2025 Annual General Meeting, the Nomination
Committee consists of the following members (votes as
per last banking day in August 2024):
• Gustaf Backemar, Chairman, Solero Luxco S.á.r.l.
(approx. 16.4% of votes)
• Peter Immonen, Wipunen Varainhallinta Oy (approx.
14.9% of votes)
• Thomas Ehlin, the Fourth Swedish National Pension
Fund (approx. 9.6% of votes)
• Ingeborg Åkermarck, Heikintorppa Oy (approx. 8.0% of
votes).
The members of the Nomination Committee have met
on three occasions and held separate sessions to inter-
view individual members of the Board.
The Nomination Committee’s complete proposals for
the 2025 Annual General Meeting will be published in the
notice convening the 2025 Annual General Meeting.
The Board of Directors
The Board of Directors’ responsibility is regulated by the
Swedish Companies Act, the Swedish Annual Accounts
Act, the Company’s Articles of Association, directions
given by the General Meeting and the Charter for Eltel’s
Board of Directors adopted by the Board of Directors. In
addition, the Board of Directors shall comply with the
Code and Nasdaq Stockholm’s Rule Book for Issuers, as
well as other applicable Swedish and international laws
and regulations.
Annual Report 2024 61
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Corporate Governance report
Responsibility of the Board of Directors
The Board of Directors is responsible for the Company’s
organization and administration of the Company’s
affairs. The Board of Directors shall continuously assess
the Group’s financial situation, as well as ensure that the
Company’s organization is structured in such a way that
the accounting, management of funds and the financial
conditions are securely controlled.
The Board of Directors is also responsible for setting
objectives and strategies, ensuring efficient systems for
follow-up and control of the Company’s operations, iden-
tifying how sustainability issues impact risks to and
business opportunities for the Company, and that satis-
factory controls are in place to ensure the Company’s
compliance with laws and other regulations applicable
to Eltel’s operations. Furthermore, the Board of Directors
shall ensure the implementation of appropriate policies
and other steering documents regarding the Company’s
conduct and that any public disclosure of information is
made in accordance with laws and established prac-
tices (including Nasdaq Stockholm’s Rule Book for
Issuers). In addition, the tasks of the Board of Directors
include appointing, evaluating and, if necessary,
dismissing the CEO.
With the exception of employee representatives,
members of the Board of Directors are appointed at the
Annual General Meeting one year at a time for the period
until the end of the next Annual General Meeting.
According to the Company’s Articles of Association,
the number of members of the Board of Directors to be
elected at the General Meeting shall be no less than
three and no more than ten ordinary members and no
more than three deputies. In accordance with the Code,
the majority of the members of the Board of Directors
shall be independent of the Company and its
management.
Eltel’s Board of Directors has adopted a Charter for
its work. The Charter is reviewed annually. The Charter
regulates, for example, the Board of Directors’ roles and
responsibilities, the Board’s ways of working and the
division of tasks within the Board. The Board of Directors
also has adopted an Instruction for the CEO of Eltel, as
well as an Instruction for financial reporting.
Board of Directors in 2024
As per 31 December 2024, the Board of Directors con-
sists of eight ordinary members (six members elected
by the General Meeting of shareholders and two
employee representatives):
• Per Sjöstrand, Chairman
• Ann Emilson
• Johan Nordström
• Joakim Olsson
• Erja Sankari
• Roland Sundén
• Stefan Söderholm, employee representative
• Björn Tallberg, employee representative
The members of the Board of Directors are presented
in greater detail in the section “Board of Directors” on
page 65.
The Chairman Per Sjöstrand and the Board members
Ann Emilson, Johan Nordström, Erja Sankari and Roland
Sundén are deemed to be independent of the owners
and the Company. Joakim Olsson is deemed to be inde-
pendent of the Company but dependent on significant
shareholders due to his positions in relation to Solero
Luxco S.á.r.l.
MEMBERS OF THE BOARD OF DIRECTORS
Name Position
Year
of birth
Election
year
Share-
holding
Remuneration
EUR
Independence
from main owners
Independence
of the Company
Per Sjöstrand
1)
Chairman 1958 2024 – 79,100 Yes Yes
Ulf Mattsson
2)
Chairman 1964 2017 – 39,600 Yes Yes
Ann Emilson Member 1965 2022 – 44,700 Yes Yes
Gunilla Fransson
2)
Member 1960 2016 – 17,600 Yes Yes
Johan Nordström
1)
Member 1965 2024 – 24,300 Yes Yes
Joakim Olsson Member 1965 2018 – 44,700 No Yes
Erja Sankari Member 1973 2022 – 44,700 Yes Yes
Roland Sundén Member 1953 2018 150,000 58,400 Yes Yes
Stefan Söderholm Employee representative 1960 2021 – – Yes No
Björn Tallberg Employee representative 1976 2015 – – Yes No
1)
From 14 May 2024.
2)
Until 14 May 2024.
Information about the Board of Directors’ other assignments can be found on page 65.
BOARD MEETING PARTICIPATION 2024
30
Jan
5 Feb
(extra)
13
Feb
21
Mar
25
Apr
10
May
3)
14
May
28
May
13
June
24
July
11
Sep
30
Oct
7 Nov
(extra)
12
Dec
Per Sjöstrand
1)
– – – – – –
• • • • • • • •
Ulf Mattsson
2)
• • • • • •
– – – – – – – –
Ann Emilson
• • • • • • • • • • • • • •
Gunilla Fransson
2)
• • • • • •
– – – – – – – –
Johan Nordström
1)
– – – – – – –
• • • • • • •
Joakim Olsson
• • • • • • •
–
• • • •
–
•
Erja Sankari
• • • • • • • • • • • • • •
Roland Sundén
• • • • • • • • • • • • • •
Stefan Söderholm
• • • • • • • • • • • • • •
Björn Tallberg
• •
–
• • • •
–
• • • • • •
1)
From 14 May 2024.
2)
Until 14 May 2024.
3)
Per capsulam.
Annual Report 2024 62
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Corporate Governance report
Matters for the Board of Directors during 2024
In 2024, the main focus of the Board of Directors was to
ensure the execution of the Company’s strategy and
improvement of profitability and liquidity. The sale of HV
Poland was also a main focus.
In 2024, the Board of Directors held 14 meetings. For
details of Board member participation in Board meet-
ings, please see table Board meeting participation 2024.
Evaluation of the Board of Directors’ performance
To ensure the quality of the work of the Board of Direc-
tors and to identify the possible need for further exper-
tise and experience, the work of the Board of Directors
and its members is evaluated annually. In 2024, evalua-
tions, led by the Chairman of the Board of Directors,
were carried out by way of each Board member respond-
ing to an online questionnaire. The compiled results
were presented to the Board of Directors at the final
Board meeting of the year. The Chairman of the Board of
Directors also presented the results of the evaluations at
a meeting with the Nomination Committee.
Board committees
An Audit Committee and a Remuneration Committee is
annually appointed by the Board of Directors in its con-
stituent meeting following the Annual General Meeting.
The Board of Directors may also appoint other commit-
tees, if deemed necessary. The Board of Directors
appoints the members of the committees and their
chairmen by taking account of the expertise and experi-
ence required for the duties. The members of each com-
mittee are appointed for the same term of office as the
Board of Directors itself. The main responsibilities of the
committees, as further outlined below, are to prepare
matters that are within the Board of Directors’ decision
power.
The Audit Committee
The main responsibilities of the Audit Committee are to:
• Monitor the Company’s financial reporting
• Monitor the effectiveness of the Company’s internal
control, internal audit, and risk management
• Keep itself informed regarding the audit of the Annual
Report and Group accounts
• Review and monitor the impartiality and independ-
ence of the auditor, paying particular attention to
whether the auditor provides the Company with ser-
vices other than auditing services
• Assist in the preparation of proposals to the resolu-
tions to the General Meeting regarding the election of
an auditor
• Advise and perform tasks that are specifically dele-
gated from the Board of Directors, if any.
As part of the tasks described above, the Chairman of
the Audit Committee shall support senior management
with matters related to financial reporting and informa-
tion disclosure and have ongoing contact with the audi-
tor on these topics.
The Audit Committee Chairman shall also support the
CEO, the CFO and Group Communications in matters
relating to information disclosure, financial reporting,
and media contacts, particularly in the event of a crisis.
The Audit Committee in 2024
As per 31 December 2024, the Audit Committee con-
sists of three members: Roland Sundén (Chairman),
Joakim Olsson and Erja Sankari.
In 2024, the Audit Committee held six meetings, at
which Eltel’s external auditor (except for one extra
Audit Committee Meeting) and representatives of the
Company’s management were present.
AUDIT COMMITTEE PARTICIPATION 2024
13
Feb
23
Apr
24
Jul
5 Sep
(extra)
30
Oct
10
Dec
Gunilla Fransson
1)
• • – – – –
Joakim Olsson
• • • • • •
Erja Sankari
• • • • • •
Roland Sundén
• • • • • •
1)
Until 14 May 2024.
The Remuneration Committee
The main responsibilities of the Remuneration Commit-
tee are to:
• Prepare the Board of Directors’ resolutions on issues
concerning remuneration principles, remunerations,
and other terms of employment for the senior man-
agement
• Monitor and evaluate programs for the variable remu-
neration of senior management, both ongoing and
terminated during the year
• Monitor and evaluate the application of the guidelines
for the remuneration of senior management upon
which the Annual General Meeting is legally obliged to
decide, as well as the current remuneration structures
and levels in the Company
• Assess and plan the succession of senior
management at Eltel.
The Remuneration Committee in 2024
As per 31 December 2024, the Remuneration Commit-
tee comprises three members: Per Sjöstrand (Chair-
man), Ann Emilson and Roland Sundén.
The Remuneration Committee held four meetings
in 2024.
REMUNERATION COMMITTEE PARTICIPATION 2024
6
Feb
21 Mar
(extra)
3
Oct
9
Dec
Per Sjöstrand
1)
– – • •
Ulf Mattsson
2)
• • – –
Ann Emilson
• • • •
Roland Sundén
• • • •
1)
From 14 May 2024.
1)
Until 14 May 2024.
Remuneration principles at Eltel
Eltel’s guidelines for remuneration to senior executives,
as adopted at the Annual General Meeting 2024, are set
out in the Board of Directors’ Report. Eltel’s Remunera-
tion Report for 2024 will be submitted for approval at
Eltel’s Annual General Meeting 2025.
External Audit
The Annual General Meeting appoints an external audi-
tor for one year at a time. The external auditor is respon-
sible for auditing the annual financial statements of the
Group and Parent Company.
The external auditor also reviews the third quarter
interim report, the Corporate Governance Report, the
Sustainability Report and the Company’s administration.
The external auditor attends all regular Audit Committee
meetings and reports observations related to internal
control, administration of the Company and the review
of the third quarter and the annual financial statements.
The external auditor attends at least one Board meeting
each year.
External auditor in 2024
The Annual General Meeting in 2024 elected KPMG AB
as Eltel’s external auditor for a one-year mandate, with
Fredrik Westin as auditor-in-charge. In 2024, total fees
paid to the external auditors, KPMG AB, amounted to
EUR 0.8 million, of which non-auditing services totaled
EUR 0.1 million.
Annual Report 2024 63
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Corporate Governance report
Group Management Team
Chief Executive Officer
Eltel’s President and Chief Executive Officer (CEO)
reports to the Board of Directors. Håkan Dahlström is
the President and CEO of the Eltel Group. The CEO’s
responsibility is governed by the Swedish Companies
Act, the Swedish Annual Accounts Act, the Company’s
Articles of Association, directions given by the General
Meeting, Eltel’s Instructions to the CEO and other direc-
tions and guiding principles established by the Board of
Directors.
Group Management Team
The Group Management Team (“GMT”), chaired by the
CEO, meets a minimum of 10 times annually (12 times in
2024). The GMT considers strategic and operational
issues related to the Group and its businesses, as well
as investments, Group structure and corporate steering
systems, and it supervises the Company’s operations.
The GMT also delivers the annual business plan, budget
and forecast updates to the Board of Directors in
accordance with the Company’s established planning
cycle.
The Group Management Team comprises the
following members
1)
:
• Håkan Dahlström, President and CEO
• Tarja Leikas, CFO
• Caroline Lindgren, General Counsel and Head of
Sourcing
• Alexandra Kärnlund, Director, Communications and
Investor Relations
• Pamela Lundin, Director, Business Development
• Juha Luusua, Managing Director, Eltel Finland
• Lars Nilsson, Managing Director, Eltel Sweden
• Ingrid Therese Tjøsvold, Managing Director,
Eltel Norway
1)
Henrik Sundell, General Counsel, left the company on 31 January 2024 and was replaced on 1 February 2024 by the current General Counsel, Caroline Lindgren.
Elin Otter, Director, Communications and Investor Relations left the Company on 26 April 2024 and was replaced on the same day by the current Director,
was replaced by the current Managing Director, Eltel Norway, Ingrid Therese Tjøsvold.
• Claus Metzsch Jensen, Managing Director,
Eltel Denmark.
Information on the members of the GMT can be found
on page 66.
Control systems
Guidelines and manuals
Eltel’s internal control system, which comprises all
corporate governance including policies, guidelines, and
procedures, is communicated via management, and is
organized according to the requirements of each
Country Unit. Eltel’s IFRS Accounting Manual contains
instructions and guidance on accounting and financial
reporting to be applied at all Eltel Group companies. The
manual’s objective is to provide guidance on Eltel Group
accounting principles to be applied in Group reporting as
well as preparation of the consolidated financial
statements.
Fundamental Eltel policies cover areas such as
authorization, Code of Conduct, internal control and risk
management, reporting of suspected violations of laws,
sanctions and export control, ethics or misconduct
(whistleblowing) to Eltel’s Compliance unit, health and
safety, crisis and communications and investor rela-
tions, sustainability, responsible procurement, restric-
tions on insider trading, accounting and controlling, IT
(including AI).
As part of regular monitoring, Eltel conducts internal
audits to verify that the Company complies with the
approved governance. Regular reporting, follow-up and
escalation procedures have been implemented in which
the Audit Committee is ultimately made aware if issues
are identified.
The CEO is primarily responsible for implementing the
Board of Directors’ instructions in the day-to-day work.
The CEO regularly reports to the Board based on estab-
lished procedures. Furthermore, monthly operational
business reviews are conducted with the CEO and CFO.
Information and communications
All external communications are carried out in accord-
ance with the relevant regulations and Eltel’s Crisis and
Communications Policy.
Eltel has a Group Communications function that
focuses on three key communication areas: Investor
Relations, internal and external communications and
brand and marketing.
Follow-up
The Board of Directors and GMT monitor Eltel’s compli-
ance with adopted policies and guidelines. At each
Board meeting the Company’s financial position is
addressed. The Remuneration and Audit Committees
play key roles in terms of, for example, remuneration,
financial statements and internal control. Prior to the
release of interim reports and the Annual Report, the
Audit Committee and the Board of Directors review the
financial statements.
Eltel’s management conducts a monthly follow-up
of earnings, analyzing any deviations from the budget,
forecasts and the previous year.
The duties of the external auditor include performing
an annual review of the internal controls of the Group
and Group subsidiaries. Status and identified deviations
are addressed at the Audit Committee meetings or
escalated earlier, when appropriate.
The Board of Directors meets with the auditors once a
year to review the internal controls and, in specific cas-
es, to instruct the auditors to perform separate reviews
in specific areas. The auditors attend all regular Audit
Committee meetings.
Priority areas in 2024
Eltel’s significant priority areas for 2024 included the
following:
• Continued implementation and execution of the
strategy (including the launch of the Eltel values
create opportunities, always professional, care for
life and combine strengths; and implementation of
Objectives and Key Results (OKR) to measure the
execution of the strategy)
• Improving commercial capabilities
• Expanding the customer base and broadening the
offering e.g. in solar, BESS, etc.
• Prioritize core operational improvements
• Sale of HV Poland to minimize complexity and risks
associated with project business outside Nordics
• Sustainability work accelerated due to its impact on
our business and the reporting requirements.
Internal audit 2024
Internal audit is responsible for internal audit engage-
ments, the internal control framework, the group risk
management process and the monitoring of Eltel’s com-
pliance with governance principles, which are based on
Eltel’s Policy and Instruction landscape, applicable laws
and generally accepted accounting principles.
During the year, the function performed internal audits
as per the annual audit plan and updated the internal
control catalogue as well as performed internal control
testing. The function also assessed and improved com-
pliance and risk management processes. The internal
audit engagements covered select projects and busi-
ness processes both on Group and Country unit level.
The outcome of the internal audits and control testing
has been followed up and communicated accordingly.
The function will continue to focus on the testing and
development of internal controls, leading the group risk
management process, as well as performing internal
audits of customer projects and key business processes
as outlined in the 2025 internal audit plan.
Risk management
Please see Board of Director’s report page 56–57.
Annual Report 2024 64
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
ANN EMILSON
Member of the Board
since 2022
Born: 1965
M.Sc. Industrial Management
and Engineering
Positions and other
board memberships:
–
Board committees:
Member of the
Remuneration Committee
Previous positions:
EVP, Global Sales & Marketing
at Tobii AB. Head of Business
Unit Public& Key at Telia.
Vice President, Retail, Telecom
and Utility Business at CGI
Stockholm. Various managerial
positions at Ericsson AB.
Shareholding:
–
Board of Directors
JOHAN NORDSTRÖM
Member of the Board
since 2024
Born: 1965
MBA
Positions and other
board memberships:
CEO of Green Landscaping
Group. Member of the Board of
several of Green Landscaping
Group’s subsidiaries.
Board committees:
–
Previous positions:
Chairman of the Board of
Car-O-Liner Group AB. CEO at
Alignment Systems. Managing
Director at Europe Drivesol
Worldwide Inc. Strategic
Business Development Director
at Teleflex. CEO at Telair.
Shareholding:
–
JOAKIM OLSSON
Member of the Board
since 2018
Born: 1965
MBA and M.Sc. Mechanical
Engineering
Positions and other
board memberships:
Partner at Triton. Chairman of
the Avisory Board of Arvos
Group and Dywidag. Member of
the Board of Trench Group Advi-
sory Board.
Board committees:
Member of the
Audit Committee
Previous positions:
Chairman of the Board of Seves
Group S.á r.l. Member of the
Board of Logstor A/S. Chair-
man of the Board of Ovako
Group AB. Member of the Board
of FläktGroup GmbH, VCST and
Semcon AB. CEO at SAG Group
GmbH and Haldex AB.
Shareholding:
–
ERJA SANKARI
Member of the Board
since 2022
Born: 1973
M.Sc. Economics
Positions and other
board memberships:
EVP and Chief Operating Officer
at iLOQ. Member of the Board
of Nurminen Logistics, Partnera
Oyj, Proventia Oy and Leden
Group.
Board committees:
Member of the
Audit Committee
Previous positions:
Vice President, Global Supply
Chain at Nokia. Vice President,
Supply Chain Engineering at
Nokia. Head of Oulu Factory
at Nokia/Nokia Siemens
Networks. Various managerial
positions at NSN and Nokia.
Shareholding:
–
ROLAND SUNDÉN
Member of the Board
since 2018
Born: 1953
M.Sc. Mechanical Engineering
Positions and other
board memberships:
MD at PrimeValue Consult AB.
Board committees:
Chairman of the Audit
Committee, Member of the
Remuneration Committee
Previous positions:
President at Hiab and Member
of Cargotec Executive Board.
President and CEO at LM Wind
Power. President, Agricultural
Division at Case New Holland.
Executive Vice President at
Volvo Construction Equipment.
Shareholding:
150,000 shares
STEFAN SÖDERHOLM
Member of the Board –
Employee Representative,
since 2021
Born: 1960
Member of the Board of
SEKO at Eltel Sweden.
Positions and other
board memberships:
–
Board committees:
–
Previous positions:
Several different technical
and managerial positions in
the current Eltel organization.
Shareholding:
–
PER SJÖSTRAND
Chairman of the Board
since 2024
Born: 1958
M.Sc. Engineering
Positions and other
board memberships:
Chairman of the Board of
Instalco, Håndverksgruppen,
Green Landscaping, Uniwater
and BPG. Member of the Board
of NCG.
Board committees:
Chairman of the
Remuneration committee
Previous positions:
CEO at Instalco AB. Director,
Major Projects at the Swedish
Transport Administration.
Chairman of the Board of
Fasadgruppen Group AB.
Shareholding:
–
BJÖRN TALLBERG
Member of the Board –
Employee Representative,
since 2015
Born: 1976
Chairman of the trade union
Unionen at Eltel Sweden.
Positions and other
board memberships:
–
Board committees:
–
Previous positions:
Team Leader at Eltel Aviation &
Security. Network Engineer at
Eltel Aviation & Security.
Shareholding:
–
Shares held in Eltel as of 31 December 2024.
Annual Report 2024
65
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
TARJA LEIKAS
CFO, since 2023
Born: 1967
M.Sc. Economics
Positions and other
board member ships:
–
Previous positions:
CFO at Ginolis Group. COO
at Eniram Group. CFO
(Acting) CEO at Dovre
Group. CFO at TeliaSonera
Finland. CFO, Business Area
Broadband Services Finland
at TeliaSonera Group.
Shareholding:
24,010 shares
Group Management Team
ALEXANDRA
KÄRNLUND
Director, Communications,
since 2024
Born: 1973
Bachelor of Arts, Media and
Communication and English
Master studies, Journalism
and Environmental Science
Positions and other
board member ships:
Member of the Board of
CISV Östersund.
Previous positions:
Communications Director,
County Administrative
Board of Jämtland. Head of
Corporate Communications,
Tietoevry. Senior PR Con-
sultant, Informedia. Other
managerial positions at
Tietoevry, CGI, Ortivus and
Cision.
Shareholding:
–
CAROLINE LINDGREN
General Counsel and Head of
Sourcing, since 2024
Born: 1978
Master of Laws (LL.M.)
Positions and other
board member ships:
–
Previous positions:
Head of Legal Sweden at
Sweco Sverige AB. Group
Legal Counsel at Sweco AB.
Associate and Attorney at
Mannheimer Swartling
Advokatbyrå AB.
Shareholding:
1,000
PAMELA LUNDIN
Director, Business
Development, since 2023
Born: 1970
M.Sc. Political Science
Positions and other
board member ships:
Member of Council,
Chamber of Commerce and
Industry of Southern Swe-
den.
Previous positions:
CEO at Enercon’s Swedish,
Norwegian and Finnish
operations. COO at Enercon
GmbH Germany Filial.
Deputy CEO and Member
of the Board of Enercon
Energy Converter AB.
Project Manager/Project
Developer at Eurowind AB.
Shareholding:
32,500
JUHA LUUSUA
Managing Director,
Eltel Finland, since 2018
Born: 1965
M.Sc. Electrical Engineering
Positions and other
board member ships:
Member of the Board of
Sähköpooli (part of the
Finnish National Emergency
Supply Agency). Deputy
Chairman of the Board of
the Football Association of
Finland.
Previous positions:
President BU Power at Eltel.
President Power Distribution
at Eltel. Managing Director
Country Unit Finland, Eltel
2008–. SVP Electricity
at Eltel Networks/Group
Corporation.
Shareholding:
121,360 shares
LARS NILSSON
Managing Director,
Eltel Sweden, since 2023
Born: 1967
B.Sc. Business
Administration
Positions and other
board member ships:
Member of the Board of
Confederation of Swedish
Enterprise. Member of the
Board of Nordic Level Group.
Previous positions:
CEO at CERTEGO Group.
CEO at Marum Management
AB. CEO at Imtech VS-teknik
AB. CEO at Ericsson Local
Services AB. CEO at
GoExcellent AB. Various
management positions
at Microsoft.
Shareholding:
10,000 shares
HÅKAN DAHLSTRÖM
President and CEO,
since 2022
Born: 1962
M.Se. Computer
Technology and M.Sc.
Digital Technology
Positions and other
board member ships:
–
Previous positions:
CEO at Fujitsu Sweden AB.
CEO at Tieto Sweden AB and
Executive Vice President,
Tieto Corporation. President,
Mobile Business area at
TeliaSonera AB. President,
Broadband Business area
at TeliaSonera AB.
Commander, Swedish
Royal Navy.
Shareholding:
800,000 shares
INGRID TJØSVOLD
Managing Director,
Eltel Norway, since 2025
Born: 1968
Bachelor of Arts (Hons.)
Finance and Marketing
Positions and other
board member ships:
Chairman of the Board of Hes-
selberg Maskin AS and Risa
Gruppen.
Previous positions:
Advisor of the Board interim
consultant/CEO Production
Companies at CTS Nordic AS
and Nordic Epod AS. Segment
Director/Chairman at Norsk
Gjenvinning – NG Vekst.
Several senior management
positions in contracting, logis-
tics and renewable industries.
Shareholding:
–
CLAUS METZSCH JENSEN
Managing Director,
Eltel Denmark, since 2018
Born: 1968
M.Sc. Business Administration
Positions and other
board member ships:
Member of the Board of
NKEL I/S.
Previous positions:
Vice President at
Caverion A/S. Senior Vice
President at TDC A/S.
Shareholding:
31,000 shares
Shares held in Eltel as of 31 December 2024.
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Consolidated
financial statements
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Annual Report 2024 67
Consolidated income statement
EUR million Note 2024 2023
Net sales | |||
Cost of sales | 7 | - | - |
Gross profit | |||
Other income | 7, 8 | ||
Selling and administrative expenses | 7 | - | - |
Other expenses | 7, 9 | - | - |
Operating result (EBIT) | - | - | |
Financial income | |||
Financial expenses | - | - | |
Net financial expenses | 11 | - | - |
Result before taxes | - | - | |
Taxes | 12 | ||
Net result | - | - | |
| Attributable to: | |||
Equity holders of the parent | - | - | |
Non-controlling interest | 25 | ||
Earnings per share (EPS) | 13 | ||
Basic, EUR | - | - | |
Diluted, EUR | - | - |
| Consolidated statement of comprehensive income | |||
EUR million | Note | 2024 | 2023 |
Net result for the year | - | - | |
| Other comprehensive income: | |||
| Items that will not be reclassified to profit and loss | |||
Revaluation of defined benefit plans, net of tax | - | ||
| Items that may be subsequently reclassified to profit and loss | |||
Net investment hedges, net of tax | - | ||
Currency translation differences | - | - | |
Total | - | - | |
Other comprehensive income/loss for the year, net of tax | - | - | |
Total comprehensive income/loss for the year | - | - | |
| Total comprehensive loss attributable to: | |||
Equity holders of the parent | - | - | |
Non-controlling interest | 25 |
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Consolidated balance sheet
EUR million | Note | 31 Dec 2024 | 31 Dec 2023 |
| ASSETS | |||
| Non-current assets | |||
Goodwill | 27 | ||
Intangible assets | 27 | ||
Property, plant and equipment | 28 | ||
Right-of-use assets | 29 | ||
Deferred tax assets | 24 | ||
Financial assets | 31, 32 | ||
Total non-current assets | |||
| Current assets | |||
Inventories | 21 | ||
Trade and other receivables | 4, 17, 20 | ||
Cash and cash equivalents | |||
Total current assets | |||
TOTAL ASSETS |
EUR million | Note | 31 Dec 2024 | 31 Dec 2023 |
| EQUITY AND LIABILITIES | |||
Equity | 15 | ||
Share capital | |||
Other equity | - | ||
Equity attributable to shareholders of the parent | |||
Hybrid bond | |||
Non-controlling interest | 25 | ||
Total equity | |||
| Non-current liabilities | |||
Interest-bearing debt | 16,17 | ||
Leasing liabilities | 16, 17, 29 | ||
Retirement benefit obligations | 32 | ||
Deferred tax liabilities | 24 | ||
Provisions | 22 | ||
Other non-current liabilities 1) | |||
Total non-current liabilities | |||
| Current liabilities | |||
Interest-bearing debt | 16, 17 | ||
Leasing liabilities | 16, 17, 29 | ||
Provisions | 22 | ||
Advances received | |||
Trade and other payables | 17, 23 | ||
Total current liabilities | |||
Total liabilities | |||
TOTAL EQUITY AND LIABILITIES | |||
1) The increase in other non-current liabilities is due to transfer of tax deferral in Sweden from trade and other payables to other non-current liabilities. |
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Consolidated statement of cash flow
EUR million | Note | 2024 | 2023 |
| Cash flow from operating activities | |||
Operating result (EBIT) | - | - | |
| Adjustments: | |||
Depreciation and amortization | |||
Gain/loss on sales of assets and business | - | ||
Defined benefit pension plans | - | ||
Other non-cash adjustments | - | ||
Cash flow from operations before interests, taxes and changes in working capital | |||
Interests received | |||
Interest and other financial expenses paid | - | - | |
Income taxes received/paid | - | - | |
Cash flow from operations before changes in working capital | |||
| Changes in working capital: | |||
Trade and other receivables | - | ||
Trade and other payables | - | ||
Inventories | - | ||
Changes in working capital | - | ||
Net cash from operating activities |
EUR million | Note | 2024 | 2023 |
| Cash flow from investing activities | |||
Purchases of property, plant and equipment (PPE) | - | - | |
Proceeds from sale of property, plant and equipment ( PPE) | |||
Disposal of business, net of cash disposed of | 25 | - | |
Net cash from investing activities | - | - | |
| Cash flow from financing activities | |||
Proceeds from issuance of hybrid bond | |||
Payments of transaction costs and interests for hybrid bond | - | - | |
Proceeds from issuance of share capital | |||
Acquisition of own shares | - | ||
Proceeds from short-term financial liabilities | 16 | ||
Payments of short-term financial liabilities | 16 | - | - |
Payments of financial liabilities, term loans | 16 | - | - |
Payments of lease liabilities | 16 | - | - |
Dividends to non-controlling interest | - | - | |
Change in non-liquid financial assets | - | ||
Net cash from financing activities | - | - | |
Net change in cash and cash equivalents | - | - | |
Cash and cash equivalents at beginning of the year | |||
Foreign exchange rate effect | - | - | |
Cash and cash equivalents at end of the year |
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Consolidated statement of changes in equity
| Equity attributable to shareholders of the parent | |||||||||||
| Revaluation of | Hedging | Non- | |||||||||
| Other paid-in | Accu mulated | defined benefit | reserve, | Currency | controlling | ||||||
EUR million | Share capital | capital | losses | plans, net of tax | net of tax | translation | Total | Hybrid bond | interest | Total equity | |
1 Jan 2024 | - | - | - | ||||||||
Total comprehensive income for the year | - | - | - | - | - | ||||||
Interests on hybrid bond | - | - | - | ||||||||
Transactions with owners 1) : | Equity-settled share-based payment | ||||||||||
Dividends paid to non-controlling interests | - | - | |||||||||
Total transaction with owners | - | - | |||||||||
31 Dec 2024 | - | - | - | ||||||||
| 1) | For more information about equity-settled share-based payments see note 30 Remuneration to senior executives and for share transactions see note 15 Shares and share capital. | ||||||||||
| Equity attributable to shareholders of the parent | |||||||||||
| Revaluation of | Hedging | Non- | |||||||||
| Other paid-in | Accu mulated | defined benefit | reserve, | Currency | controlling | ||||||
EUR million | Share capital | capital | losses | plans, net of tax | net of tax | translation | Total | Hybrid bond | interest | Total equity | |
1 Jan 2023 | - | - | - | ||||||||
Total comprehensive income for the year | - | - | - | - | - | ||||||
Proceeds from hybrid bond | |||||||||||
Transaction costs and interests on hybrid bond | - | - | - | ||||||||
Transactions with owners 1) : | Proceeds from shares issued | ||||||||||
Purchase of own shares | - | - | - | ||||||||
Equity-settled share-based payment | |||||||||||
Dividends paid to non-controlling interests | - | - | |||||||||
Total transaction with owners | - | - | - | ||||||||
31 Dec 2023 | - | - | - | ||||||||
1)
For more information about equity-settled share-based payments see note 30 Remuneration to senior executives and for share transactions see note 15 Shares and share capital.
Equity attributable to shareholders of the parent company
Shareholders’ equity consists of the share capital, other paid-in capital, reserves and accumu-
lated profits and losses. Other paid-in capital includes share subscription prices to the extent
that they are not included in share capital (premium) and unconditional shareholders’ contri-
bution. Actuarial gains and losses arising from employee benefits are recorded under revalua-
tion of defined benefit plans. Hedging reserve comprises of net investment hedges. Gains
and losses from hedge accounted derivative instruments are temporarily recognized in other
comprehensive income under hedging reserve for their effective part and will be reclassified
to the income statement as the hedged item affects the income statement. The currency
translation reserve includes differences arising on translation of the financial statements of
foreign entities.
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Notes to the consolidated financial statements
Basis for preparation
1 Corporate information 73
2 Material accounting policies for the consolidated accounts 73
Financial performance
3 Segment reporting 78
4 Revenue recognition 79
5 Personnel by segment 80
6 Employee benefit expenses 80
7 Function expenses by nature 80
8 Other income 80
9 Other expenses 80
10 Depreciation and amortization 81
11 Financial income and expenses 81
12 Income tax 81
13 Earnings per share 81
Financial risk management and capital structure
14 Financial risk management 82
15 Shares and share capital 85
16 Borrowings 86
17 Financial instruments by category 87
18 Derivative financial instruments 88
19 Commitments and contingent liabilities 88
Working capital and deferred taxes
20 Trade and other receivables 89
21 Inventories 89
22 Provisions 89
23 Trade and other payables 89
24 Deferred tax 90
Business combinations and capital expenditure
25 Acquisitions and disposals 91
26 Non-controlling interests 91
27 Intangible assets 92
28 Property, plant and equipment 93
29 Leasing 93
Remuneration and other
30 Remuneration to senior executives 94
31 Financial assets 96
32 Retirement benefit obligations 96
33 Auditors’ fees 97
34 Related party information 97
35 Group companies 97
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Basis for preparation
This section comprises the following notes
1 Corporate information 73
2 Material accounting policies for the consolidated accounts 73
1
Corporate information
prehensive range of solutions – from maintenance and upgrade services to project delivery.
This includes design, planning, building, installing and securing the operation of renewable
energy and high-performing power and communication networks. In 2024, the number of
employees was approximately 4,500. Eltel mainly operates in the Nordic market , but is also
represented in Germany, Lithuania and Poland (a shared services center).
address of the head office is Adolfsbergsvägen 13, Bromma , Sweden . Eltel AB’s ordinary
shares are quoted on the Nasdaq Stockholm. The operations of Eltel AB through the subsidi-
ary companies are performed under the Eltel brand. The consolidated group is called Eltel
Group.
ment functions but has no operative business activities and its risks are mainly attributable to
the value and activities of its subsidiaries.
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Basis for preparation | Financial performance | Financial risk management and capital structure | Working capital and deferred taxes | Business combinations and capital expenditure | Remuneration and other
Note 2 continued
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Basis for preparation | Financial performance | Financial risk management and capital structure | Working capital and deferred taxes | Business combinations and capital expenditure | Remuneration and other
Note 2 continued
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Basis for preparation | Financial performance | Financial risk management and capital structure | Working capital and deferred taxes | Business combinations and capital expenditure | Remuneration and other
Note 2 continued
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Basis for preparation | Financial performance | Financial risk management and capital structure | Working capital and deferred taxes | Business combinations and capital expenditure | Remuneration and other
Note 2 continued
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Basis for preparation | Financial performance | Financial risk management and capital structure | Working capital and deferred taxes | Business combinations and capital expenditure | Remuneration and other
Financial performance
This section comprises the following notes
3 Segment reporting 78
4 Revenue recognition 79
5 Personnel by segment 80
6 Employee benefit expenses 80
7 Function expenses by nature 80
8 Other income 80
9 Other expenses 80
10 Depreciation, amortization and impairment 81
11 Financial income and expenses 81
12 Income tax 81
13 Earnings per share 81
| Net sales by segment | ||
EUR million | 2024 | 2023 |
Finland | 357.7 | 344.5 |
Sweden | 211.8 | 198.5 |
Norway | 114.9 | 130.1 |
Denmark | 92.0 | 93.0 |
Sum segments | 776.5 | 766.1 |
Other business | 61.9 | 93.7 |
Eliminations | -9.7 | -9.7 |
Total | 828.7 | 850.1 |
| Segment results | ||
EUR million | 2024 | 2023 |
| Adjusted EBITA by segment | ||
Finland | 15.7 | 6.5 |
Sweden | 6.1 | 2.9 |
Norway | -5.7 | -2.5 |
Denmark | 5.0 | 4.9 |
Sum segments | 21.1 | 11.8 |
Other business | 0.7 | -1.0 |
Group functions | -11.3 | -9.1 |
Adjusted EBITA, Group | 10.5 | 1.7 |
Restructuring and resizing | -5.3 | -7.0 |
Divestments | -23.1 | – |
Total items affecting comparability in EBITA | -28.5 | -7.0 |
Operating result (EBIT) | -18.0 | -5.3 |
Financial expenses, net | -12.7 | -12.7 |
Result before taxes | -30.7 | -17.9 |
| Net working capital and operative capital employed | ||
EUR million | 31 Dec 2024 | 31 Dec 2023 |
Inventories | 19.3 | 17.3 |
Trade and other receivables | 165.3 | 195.6 |
Provisions | -8.4 | -7.1 |
Advances received | -51.4 | -59.3 |
Trade and other payables | -152.0 | -191.8 |
Other | -34.1 | -4.8 |
Net working capital | -61.3 | -49.8 |
| Intangible assets excluding acquisition-related | ||
allocations | 4,1 | 6.4 |
Property, plant and equipment | 5,9 | 10.5 |
Right-of-use assets | 53,5 | 51.9 |
Restructuring provisions | -0.5 | -0.3 |
Operative fixed assets | 62.9 | 68.6 |
Total operative capital employed | 1.7 | 18.7 |
| Operative capital employed | ||
(average over reporting period) | 10.2 | 31.9 |
| Net working capital by segment | ||
EUR million | 31 Dec 2024 | 31 Dec 2023 |
Finland | -37.3 | -31.1 |
Sweden | 13.8 | 7.5 |
Norway | -8.4 | -8.0 |
Denmark | -2.1 | -1.5 |
Other business | -2.0 | 15.2 |
Group functions | -25.2 | -31.9 |
Total | -61.3 | -49.8 |
| Operative fixed assets by segment | ||
EUR million | 31 Dec 2024 | 31 Dec 2023 |
Finland | 20.7 | 21.2 |
Sweden | 13.7 | 12.5 |
Norway | 17.5 | 15.8 |
Denmark | 8.3 | 9.2 |
Other business | 5.2 | 8.7 |
Group functions | -2.6 | 1.1 |
Total | 62.9 | 68.6 |
| Operative capital employed by segment | ||
EUR million | 31 Dec 2024 | 31 Dec 2023 |
Finland | -16.6 | -9.9 |
Sweden | 27.5 | 20.0 |
Norway | 9.1 | 7.8 |
Denmark | 6.2 | 7.7 |
Other business | 3.2 | 23.9 |
Group functions | -27.8 | -30.8 |
Total | 1.7 | 18.7 |
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Basis for preparation | Financial performance | Financial risk management and capital structure | Working capital and deferred taxes | Business combinations and capital expenditure | Remuneration and other
| Net sales by business | ||
EUR million | 2024 | 2023 |
Communication | 505.9 | 514.8 |
Power | 322.8 | 329.1 |
Other operations | 0.0 | 6.2 |
Total | 828.7 | 850.1 |
| Net sales by segment and business | |||
EUR million | 2024 | 2023 | |
Finland | Communication | 174.4 | 154.3 |
Power | 183.4 | 190.2 | |
Sweden | Communication | 159.9 | 158.0 |
Power | 52.0 | 40.5 | |
Norway | Communication | 114.6 | 129.8 |
Power | 0.3 | 0.3 | |
Denmark | Communication | 54.4 | 66.4 |
Power | 37.6 | 26.6 | |
Other business | Communication | 10.7 | 14.5 |
Power | 51.2 | 73.0 | |
Other operations | 0.0 | 6.2 | |
Eliminations | -9.7 | -9.7 | |
Total | 828.7 | 850.1 |
| Net sales by business and service type | ||
EUR million | 2024 | 2023 |
| Communication | ||
Project delivery | 31.9 | 28.5 |
Upgrade services | 326.1 | 346.6 |
Maintenance | 147.8 | 139.7 |
Total Communication | 505.9 | 514.8 |
| Power | ||
Project delivery | 153.7 | 159.9 |
Upgrade services | 75.6 | 94.4 |
Maintenance | 93.5 | 74.8 |
Total Power | 322.8 | 329.1 |
| Other operations | ||
Project delivery | – | 6.4 |
Maintenance | 0.0 | -0.2 |
Total other operations | 0.0 | 6.2 |
Total | 828.7 | 850.1 |
EUR million | 31 Dec 2024 | 31 Dec 2023 |
| Communication | ||
Project delivery | 32.3 | 48.1 |
Upgrade services | 137.2 | 180.0 |
Maintenance | 25.9 | 30.6 |
Total Communication | 195.3 | 258.6 |
| Power | ||
Project delivery | 123.0 | 189.9 |
Upgrade services | 36.1 | 57.7 |
Maintenance | 30.7 | 26.0 |
Total Power | 189.8 | 273.6 |
| Other operations | ||
Project delivery | – | – |
Total other operations | – | – |
Total | 385.1 | 532.3 |
| Contract balances | ||
EUR million | 31 Dec 2024 | 31 Dec 2023 |
Trade receivables | 89.6 | 106.2 |
Contract assets | 58.9 | 66.7 |
Total assets related to contracts with customers | 148.5 | 172.9 |
Advances received from contracts with customers | 46.7 | 54.6 |
Total liabilities related to contracts with customers | 46.7 | 54.6 |
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5
Personnel by segment
Number of personnel by segment, FTE 1) | ||||
| Of whom | Of whom | |||
Average | 2024 | men % | 2023 | men % |
Finland | 1,478 | 91 | 1,503 | 91 |
Sweden | 950 | 85 | 988 | 85 |
Norway | 761 | 88 | 860 | 87 |
Denmark | 487 | 88 | 511 | 88 |
Other business | 693 | 85 | 995 | 84 |
Group and shared functions | 180 | 35 | 166 | 36 |
Total personnel FTE, average | 4,550 | 86 | 5,024 | 86 |
Total personnel FTE, year-end | 4,160 | 87 | 4,931 | 86 |
1)
Full time equivalent
6
Employee benefit expenses
| Employee benefit expenses | ||
EUR million | 2024 | 2023 |
Wages and salaries | 251.2 | 254.3 |
| Post-employment benefits: | ||
Defined benefit plans | -1.3 | -1.1 |
Defined contribution plans | 27.5 | 25.7 |
Other statutory social costs | 31.4 | 34.0 |
Total | 308.7 | 312.8 |
| Employee benefit expenses by function | ||
EUR million | 2024 | 2023 |
Cost of sales | 248.3 | 259.5 |
Selling and administrative expenses | 60.8 | 53.6 |
Sum in operative expenses | 309.1 | 313.1 |
Financial income and costs | -0.4 | -0.3 |
Total | 308.7 | 312.8 |
EUR million | 2024 | 2023 |
Other income | -4.3 | -3.5 |
Total other income | -4.3 | -3.5 |
| Expenses | ||
Materials and supplies | 120.1 | 139.9 |
Employee benefit expenses | 309.1 | 313.1 |
Subcontractors and other external services | 259.2 | 269.7 |
Other costs | 127.8 | 106.1 |
Depreciation, amortization and impairment | 34.7 | 30.1 |
Total expenses | 850.9 | 858.9 |
Total net expenses | 846.7 | 855.4 |
EUR million | 2024 | 2023 |
Cost of sales | 736.8 | 774.5 |
Other income | -4.3 | -3.5 |
Selling and administrative expenses | 88.2 | 82.4 |
Other expenses | 25.9 | 2.0 |
Total | 846.7 | 855.4 |
EUR million | 2024 | 2023 |
Gains on sales of assets | 0.3 | 0.1 |
Supplier invoice financing cost compensation | 3.2 | 2.7 |
Other income | 0.7 | 0.6 |
Total | 4.3 | 3.5 |
EUR million | 2024 | 2023 |
Loss on divestments | 23.1 | – |
Supplier invoice financing expenses | 2.6 | 0.9 |
Loss on foreign exchange contracts | 0.2 | 0.4 |
Other expenses | 0.0 | 0.6 |
Total | 25.9 | 2.0 |
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10
Depreciation, amortization and impairment
EUR million | 2024 | 2023 |
Depreciation of right-of-use assets | 25.5 | 22.3 |
Impairment losses on right-of-use assets | 3.1 | 0.9 |
Other depreciation and amortization | 6.2 | 6.9 |
Total | 34.7 | 30.1 |
The total amount recognized in the income statement is divided by function as follows:
EUR million | 2024 | 2023 |
Cost of sales | 20.2 | 17.8 |
Selling and administrative expenses | 14.5 | 12.3 |
Total | 34.7 | 30.1 |
EUR million | 2024 | 2023 |
| Interest income arising from financial assets | ||
at amortized cost | 0.5 | 1.1 |
Other financial income | 0.4 | 0.1 |
Total financial income | 1.0 | 1.2 |
Interest expenses from liabilities at amortized cost 1) | -12.7 | -12.6 |
Fee expenses | -1.1 | -1.1 |
Fair value change of foreign exchange derivatives | -0.6 | 0.2 |
Other foreign exchange differences | 0.8 | -0.4 |
Total financial expenses | -13.7 | -13.9 |
Net financial expenses | -12.7 | -12.7 |
12
Income tax
| Income tax expense in the consolidated income statement | ||
EUR million | 2024 | 2023 |
Current tax | 1.8 | -0.3 |
Deferred tax | -3.5 | -10.0 |
Total tax cost (+)/ income (-) | -1.6 | -10.3 |
Tax rate, % | 5.3% | 57.6% |
The difference between income taxes at the statutory tax rate in Sweden 20.6% and income
taxes recognized in the consolidated income statement is reconciled as follows:
EUR million | 2024 | 2023 |
Profit before tax | -30.7 | -17.9 |
| Total tax cost (+)/income (-) | ||
Tax calculated at Swedish tax rate | -6.3 | -3.7 |
Effect of different tax rates outside Sweden | 0.4 | 0.4 |
Income not subject to tax | -0.1 | -0.1 |
Expenses not deductible for tax purposes | 0.5 | 0.4 |
Effect of divestments | 4.5 | – |
Impact of deferred tax asset valuation | -0.6 | -4.9 |
Taxes and adjustments in respect of prior years | -0.1 | -2.3 |
Other items | 0.2 | -0.0 |
Income taxes in the consolidated income statement | -1.6 | -10.3 |
Eltel is within the scope of the OECD Pillar Two model rules. Pillar Two legislation has been
effective from 1 January 2024. The Group has applied the temporary mandatory relief from
deferred tax accounting for the impacts of the top-up tax and accounts for it as a current tax
when it is incurred. Deferred taxes are presented in note 24.
13
Earnings per share
2024 | 2023 | |
Net result attributable to equity holders of the parent | -29.7 | -7.9 |
Interest on hybrid bond | -3.4 | -2.5 |
Net result attributable to ordinary shares | -33.1 | -10.4 |
Weighted average number of ordinary shares, basic | 156,736,781 | 156,736,781 |
Weighted average number of ordinary shares, diluted | 156,736,781 | 156,736,781 |
Earnings per share, basic | -0.21 | -0.07 |
Earnings per share, diluted | -0.21 | -0.07 |
The basic earnings per share figure is calculated by dividing the net income attributable to the
shareholders of the parent company by the weighted average number of ordinary shares out-
standing during the year. Diluted earnings per share is calculated by adjusting the weighted
average number of ordinary shares by the effect of potential diluting shares due to share-
based incentive plans in the Group.
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Basis for preparation | Financial performance | Financial risk management and capital structure | Working capital and deferred taxes | Business combinations and capital expenditure | Remuneration and other
Financial risk management and
capital structure
This section comprises the following notes
14 Financial risk management 82
15 Shares and share capital 85
16 Borrowings 86
17 Financial instruments by category 87
18 Derivativefinancialinstruments 88
19 Commitments and contingent liabilities 88
| 2024 | Sales and | Borrowings | Net transaction | |
| EUR million | purchases | and cash | Hedges | risk exposure |
EUR | 1.1 | 0.8 | -0.7 | 1.2 |
SEK | -2.5 | -23.2 | 25.9 | 0.2 |
NOK | -0.1 | -3.7 | 3.9 | 0.0 |
DKK | 0.1 | -9.6 | 9.4 | 0.0 |
PLN | 0.0 | -0.3 | 0.3 | 0.0 |
USD | -0.1 | -0.2 | 0.3 | 0.0 |
MZN | – | 0.2 | – | 0.2 |
| 2023 | Sales and | Borrowings | Net transaction | |
| EUR million | purchases | and cash | Hedges | risk exposure |
EUR | 2.5 | 0.0 | -2.9 | 0.4 |
SEK | -2.2 | -10.7 | 12.4 | 0.5 |
NOK | -0.1 | -7.3 | 7.3 | 0.1 |
DKK | -0.0 | -11.4 | 11.4 | 0.1 |
PLN | -0.0 | 0.0 | 0.1 | 0.1 |
USD | -1.7 | 0.8 | 1.0 | 0.0 |
MZN | – | 1.0 | – | 1.0 |
2024 profit or loss | 2023 profit or loss | |||
EUR thousands | Strengthening | Weakening | Strengthening | Weakening |
EUR | 116 | -116 | -37 | 37 |
SEK | 22 | -18 | -60 | 49 |
NOK | 4 | -3 | -10 | 8 |
DKK | -4 | 3 | -9 | 7 |
PLN | -2 | 1 | 16 | -13 |
USD | -4 | 3 | 1 | -1 |
MZN | 19 | -15 | 110 | -90 |
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Note 14 continued
| 2024 | Loans denominated | Discontinued | |
| EUR million | in foreign currency | net investment hedges | Total |
1 Jan | 6.6 | 7.0 | 13.6 |
| Recognized in hedging | |||
reserve during the period | – | – | – |
| Transferred from hedging | |||
| reserve to profit and loss | |||
during the period | – | -0.1 | -0.1 |
31 Dec | 6.6 | 6.9 | 13.5 |
| 2023 | Loans denominated | Discontinued | |
| EUR million | in foreign currency | net investment hedges | Total |
1 Jan | 6.6 | 7.0 | 13.6 |
| Recognized in hedging | |||
reserve during the period | – | – | – |
| Transferred from hedging | |||
| reserve to profit and loss | |||
during the period | – | – | – |
31 Dec | 6.6 | 7.0 | 13.6 |
EUR million | 2024 | 2023 |
Total leasing liabilities | 58.7 | 53.9 |
| Variable-rate instruments | ||
Financial assets | -21.3 | -24.7 |
Financial liabilities | 76.0 | 71.1 |
Total variable-rate net liabilities | 54.7 | 46.4 |
2024 | Income statement | |
EUR million | 50 bp increase | 25 bp decrease |
Variable rate instruments | 0.3 | -0.2 |
Total | 0.3 | -0.2 |
2023 | Income statement | |
EUR million | 50 bp increase | 25 bp decrease |
Variable rate instruments | 0.2 | -0.1 |
Total | 0.2 | -0.1 |
EUR million | 31 Dec 2024 | 31 Dec 2023 |
Committed credit facility | 44.0 | 51.0 |
Current account overdrafts | 15.0 | 15.0 |
Cash and cash equivalents | 21.3 | 24.7 |
Total | 80.3 | 90.7 |
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Basis for preparation | Financial performance | Financial risk management and capital structure | Working capital and deferred taxes | Business combinations and capital expenditure | Remuneration and other
Note 14 continued
Carrying amounts | Contractual cash flows | |||||
| 31 Dec 2024 | Less than | Over | Less than | 1–3 | 3–5 | Over |
| EUR million | 1 year | 1 year | 1 year | years | years | 5 years |
| Financial assets | ||||||
Trade receivables | 89.6 | – | 89.6 | – | – | – |
Derivative instruments | 0.0 | – | 0.0 | – | – | – |
Other receivables | 2.7 | 2.2 | 2.7 | 0.2 | – | 2.0 |
Cash and cash equivalents | 21.3 | – | 21.3 | – | – | – |
Total financial assets | 113.6 | 2.2 | 113.6 | 0.2 | – | 2.0 |
| Financial liabilities | ||||||
Bank borrowings and commercial papers | 60.0 | 16.0 | 63.0 | 16.1 | – | – |
Leasing liabilities | 22.7 | 36.0 | 25.2 | 30.2 | 6.3 | 0.8 |
Trade and other payables | 61.5 | – | 61.5 | – | – | – |
| Derivative financial | ||||||
instruments | 0.0 | – | 0.0 | – | – | – |
Total financial liabilities | 144.2 | 52.0 | 149.7 | 46.3 | 6.3 | 0.8 |
Carrying amounts | Contractual cash flows | |||||
| 31 Dec 2023 | Less than | Over | Less than | 1–3 | 3–5 | Over |
| EUR million | 1 year | 1 year | 1 year | years | years | 5 years |
| Financial assets | ||||||
Trade receivables | 106.2 | – | 106.2 | – | – | – |
Derivative instruments | 0.0 | – | 0.0 | – | – | – |
Other receivables | 3.5 | 1.2 | 3.5 | 0.4 | – | 0.8 |
Cash and cash equivalents | 24.7 | – | 24.7 | – | – | – |
Total financial assets | 134.5 | 1.2 | 134.5 | 0.4 | – | 0.8 |
| Financial liabilities | ||||||
Bank borrowings and commercial papers | 50.0 | 21.0 | 55.0 | 21.1 | – | – |
Leasing liabilities | 19.9 | 33.9 | 18.4 | 23.1 | 7.4 | 2.5 |
Trade and other payables | 73.5 | – | 73.5 | – | – | – |
| Derivative financial | ||||||
instruments | 0.1 | – | 0.1 | – | – | – |
Total financial liabilities | 143.5 | 54.9 | 147.0 | 44.2 | 7.4 | 2.5 |
| 2024 | Trade | Expected | Recognized | ||
| EUR million | receivables | Contract | credit loss | amounts | |
| Credit risk rating | (gross) | assets | Total | reservation | (net) |
| Large customers | |||||
AAA | 5.7 | 0.7 | 6.4 | – | 6.4 |
AA | 9.2 | 8.0 | 17.2 | – | 17.2 |
A | 3.5 | 5.8 | 9.2 | – | 9.2 |
BBB | 18.8 | 5.1 | 23.9 | – | 23.9 |
BB | 1.1 | – | 1.1 | – | 1.1 |
Total large customers | 38.3 | 19.6 | 57.9 | – | 57.9 |
Other customers | 52.2 | 39.4 | 91.5 | 0.9 | 90.6 |
Total | 90.5 | 58.9 | 149.4 | 0.9 | 148.5 |
| 2023 | Trade | Expected | Recognized | ||
| EUR million | receivables | Contract | credit loss | amounts | |
| Credit risk rating | (gross) | assets | Total | reservation | (net) |
| Large customers | |||||
AAA | 5.5 | 1.2 | 6.7 | – | 6.7 |
AA | 15.1 | 7.1 | 22.2 | 0.0 | 22.2 |
A | 6.5 | 6.3 | 12.8 | – | 12.8 |
BBB | 17.9 | 7.2 | 25.2 | 0.0 | 25.2 |
BB | 0.3 | – | 0.3 | – | 0.3 |
Total large customers | 45.3 | 21.8 | 67.1 | 0.0 | 67.1 |
Other customers | 62.4 | 45.0 | 107.4 | 1.5 | 105.9 |
Total | 107.8 | 66.7 | 174.5 | 1.6 | 172.9 |
| Maturity analysis of receivables: | ||
EUR million | 31 Dec 2024 | 31 Dec 2023 |
Not past due | 77.8 | 91.9 |
1–14 days overdue | 9.0 | 9.9 |
15–90 days overdue | 2.0 | 3.7 |
91–180 days overdue | 0.3 | 0.5 |
More than 180 days overdue | 1.3 | 1.7 |
Total trade receivables | 90.5 | 107.8 |
Contract assets | 58.9 | 66.7 |
Expected credit loss reservation | -0.9 | -1.6 |
Total | 148.5 | 172.9 |
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Note 14 continued
EUR million | 31 Dec 2024 | 31 Dec 2023 |
Total bank borrowings | 76.5 | 71.5 |
Leasing liabilities in balance sheet | 58.7 | 53.9 |
Cash and cash equivalents | -21.3 | -24.7 |
Net debt | 114.0 | 100.6 |
| Credit facilities | ||
EUR million | 31 Dec 2024 | Maturity |
Term loan, current | 4.0 | Mar 2025 – Dec 2025 |
Term loan, non-current | 16.0 | Jan 2026 |
Revolving credit facility | 90.0 | Jan 2026 |
Account overdrafts | 15.0 | Jan 2026 |
Total committed credit facilities | 125.0 | |
Commercial paper program | 150.0 | N/A |
| Changes in the share capital | |||||||
| Ordinary | Total number | Change in share | Total share | Quota (par) | |||
Date 1) | Transactions | shares | C shares | of shares | capital (EUR) | capital (EUR) | value (EUR) |
1Jan 2023 | 156,736,781 | 1,494,300 | 158,231,081 | 1.01 | |||
20 Nov 2023 | Issue of new C shares | – | 2,354,500 | 160,585,581 | 2,374,508 | 161,950,203 | 1.01 |
31 Dec 2023 | 156,736,781 | 3,848,800 | 160,585,581 | 161,950,203 | 1.01 | ||
31 Dec 2024 | 156,736,781 | 3,848,800 | 160,585,581 | 161,950,203 | 1.01 |
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EUR million | 31 Dec 2024 | 31 Dec 2023 |
| Carrying amounts of non-current liabilities | ||
Bank borrowings | 15.8 | 20.7 |
Leasing liabilities | 36.0 | 33.9 |
Total non-current financial liabilities | 51.8 | 54.7 |
| Carrying amounts of current liabilities | ||
Bank borrowings | 60.5 | 50.4 |
Leasing liabilities | 22.7 | 19.9 |
Total current debt | 83.2 | 70.3 |
Total current financial liabilities | 83.2 | 70.3 |
Total financial liabilities at amortized cost | 135.0 | 125.0 |
EUR million | 31 Dec 2024 | 31 Dec 2023 |
EUR | 98.6 | 91.9 |
SEK | 13.1 | 11.1 |
PLN | 0.3 | 1.5 |
NOK | 15.9 | 13.0 |
DKK | 7.3 | 7.5 |
Total | 135.0 | 125.0 |
| 2024 | ||||
| Long-term | Short-term | Leasing | ||
| EUR million | borrowings | borrowings | liabilities | Total |
1 Jan | 20.7 | 50.4 | 53.9 | 125.0 |
Cash flows (net) | -4.0 | 9.0 | -25.2 | -20.2 |
| Non-cash changes: | ||||
New lease agreements | – | – | 35.9 | 35.9 |
Termination of lease agreements | – | – | -3.8 | -3.8 |
Divestments | – | – | -1.1 | -1.1 |
Change in maturity | -1.0 | 1.0 | – | – |
– | – | |||
| Foreign exchange movements | -0.9 | -0.9 | ||
Accruals and other non-cash changes | 0.1 | 0.1 | – | 0.2 |
31 Dec | 15.8 | 60.5 | 58.7 | 135.0 |
| 2023 | ||||
| Long-term | Short-term | Leasing | ||
| EUR million | borrowings | borrowings | liabilities | Total |
1 Jan | 34.7 | 90.4 | 47.8 | 172.9 |
Cash flows (net) | -7.5 | -46.0 | -22.1 | -75.6 |
| Non-cash changes: | ||||
New lease agreements | – | – | 34.3 | 34.3 |
Termination of lease agreements | – | – | -5.2 | -5.2 |
Change in maturity | -6.5 | 6.5 | – | – |
Foreign exchange movements | – | – | -0.9 | -0.9 |
Accruals and other non-cash changes | 0.0 | -0.5 | – | -0.5 |
31 Dec | 20.7 | 50.4 | 53.9 | 125.0 |
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Basis for preparation | Financial performance | Financial risk management and capital structure | Working capital and deferred taxes | Business combinations and capital expenditure | Remuneration and other
| 31 Dec 2024 | Fair value through | Financial assets | Financial liabilities | Carrying | Fair | Fair value | |
EUR million | Note | profit or loss | at amortized cost | at amortized cost | amounts | value | hierarchy level |
Non-current financial assets | 2.0 | 0.2 | – | 2.2 | 2.2 | ||
Other receivables and financial assets | 30 | 2.0 | 0.2 | – | 2.2 | 2.2 | 2 |
Current financial assets | 0.0 | 113.5 | – | 113.6 | 113.6 | ||
Trade receivables | 20 | – | 89.6 | – | 89.6 | 89.6 | |
Derivative instruments | 18,20 | 0.0 | – | – | 0.0 | 0.0 | 2 |
Other receivables | 20 | – | 2.7 | – | 2.7 | 2.7 | |
Cash and cash equivalents | – | 21.3 | – | 21.3 | 21.3 | ||
Total financial assets | 2.0 | 113.8 | – | 115.8 | 115.8 | ||
Non-current financial liabilities | – | – | 51.9 | 51.9 | 52.0 | ||
Interest-bearing debt | 16 | – | – | 51.8 | 51.8 | 52.0 | 2 |
Trade and other payables | – | – | 0.0 | 0.0 | 0.0 | ||
Current financial liabilities | 0.0 | – | 147.8 | 147.8 | 147.9 | ||
Interest-bearing debt | 16 | – | – | 83.2 | 83.2 | 83.3 | 2 |
Trade and other payables | 23 | – | – | 64.6 | 64.6 | 64.6 | |
Derivative instruments | 18,23 | 0.0 | – | – | 0.0 | 0.0 | 2 |
Total financial liabilities | 0.0 | – | 199.7 | 199.7 | 199.9 | ||
Carrying amount, net | 2.0 | 113.8 | -199.7 |
| 31 Dec 2023 | Fair value through | Financial assets | Financial liabilities | Carrying | Fair | Fair value | |
EUR million | Note | profit or loss | at amortized cost | at amortized cost | amounts | value | hierarchy level |
Non-current financial assets | 0.8 | 0.4 | – | 1.2 | 1.2 | ||
Other receivables and financial assets | 30 | 0.8 | 0.4 | – | 1.2 | 1.2 | 2 |
Current financial assets | 0.0 | 134.5 | – | 134.5 | 134.5 | ||
Trade receivables | 20 | – | 106.2 | – | 106.2 | 106.2 | |
Derivative instruments | 18,20 | 0.0 | – | – | 0.0 | 0.0 | 2 |
Other receivables | 20 | – | 3.5 | – | 3.5 | 3.5 | |
Cash and cash equivalents | – | 24.7 | – | 24.7 | 24.7 | ||
Total financial assets | 0.8 | 134.9 | – | 135.7 | 135.7 | ||
Non-current financial liabilities | – | – | 55.0 | 55.0 | 55.3 | ||
Interest-bearing debt | 16 | – | – | 54.7 | 54.7 | 54.9 | 2 |
Trade and other payables | – | – | 0.4 | 0.4 | 0.4 | ||
Current financial liabilities | 0.1 | – | 149.5 | 149.6 | 149.6 | ||
Interest-bearing debt | 16 | – | – | 70.3 | 70.3 | 70.3 | 2 |
Trade and other payables | 23 | – | – | 79.1 | 79.1 | 79.1 | |
Derivative instruments | 18,23 | 0.1 | – | – | 0.1 | 0.1 | 2 |
Total financial liabilities | 0.1 | – | 204.5 | 204.6 | 204.9 | ||
Carrying amount, net | 0.7 | 134.9 | -204.5 |
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Basis for preparation | Financial performance | Financial risk management and capital structure | Working capital and deferred taxes | Business combinations and capital expenditure | Remuneration and other
| Fair | Fair | ||
| Nominal | values | values | |
| EUR million | values | Positive | Negative |
| 31 Dec 2024 | |||
Foreign exchange derivatives | 35.5 | 0.0 | -0.0 |
Total | 35.5 | 0.0 | -0.0 |
| 31 Dec 2023 | |||
Foreign exchange derivatives | 52.8 | 0.0 | -0.1 |
Total | 52.8 | 0.0 | -0.1 |
31 Dec 2024 | 31 Dec 2023 | |||||
| Related | Related | |||||
| instruments | instruments | |||||
| Carrying | that are | Net | Carrying | that are | Net | |
| EUR thousands | amounts | not offset | amounts | amounts | not offset | amounts |
| Financial assets | ||||||
| Foreign exchange | ||||||
derivatives | 50 | -4 | 46 | 10 | -10 | 0 |
| Financial liabilities | ||||||
| Foreign exchange | ||||||
derivatives | -7 | 4 | -3 | -107 | 10 | -97 |
| Commitments and collateral pledged | ||
EUR million | 31 Dec 2024 | 31 Dec 2023 |
| Pledged assets | ||
Shares in subsidiaries | 42.2 | 57.1 |
Floating charges | 218.3 | 219.7 |
Intra-group loan receivables | 491.4 | 482.3 |
Total pledged assets | 751.9 | 759.0 |
| Guarantees | ||
Counter guarantees for external guarantees | 52.3 | 89.3 |
Total guarantees | 52.3 | 89.3 |
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Basis for preparation | Financial performance | Financial risk management and capital structure | Working capital and deferred taxes | Business combinations and capital expenditure | Remuneration and other
Working capital and deferred taxes
This section comprises the following notes
20 Trade and other receivables 89
21 Inventories 89
22 Provisions 89
23 Trade and other payables 89
24 Deferred tax 90
EUR million | 31 Dec 2024 | 31 Dec 2023 |
Trade receivables, gross | 90.5 | 107.8 |
Contract assets | 58.9 | 66.7 |
Expected credit loss reservation | -0.9 | -1.6 |
Trade receivables and contract assets, net | 148.5 | 172.9 |
Derivative instruments | 0.0 | 0.0 |
Income tax receivables | 0.8 | 0.9 |
Indirect tax receivables | 0.7 | 0.8 |
Other prepayments and accruals | 12.5 | 17.4 |
Other receivables | 2.7 | 3.5 |
Total current trade and other receivables | 165.3 | 195.6 |
21
Inventories
EUR million | 31 Dec 2024 | 31 Dec 2023 |
Raw materials and consumables | 6.3 | 9.4 |
Work in progress | 13.0 | 7.9 |
Total | 19.3 | 17.3 |
EUR million | 31 Dec 2024 | 31 Dec 2023 |
Non-current | 5.2 | 3.4 |
Current | 3.8 | 3.7 |
Total | 8.9 | 7.1 |
| 2024 | Warranty | Project risk | Restructuring | Other | |
| EUR million | provision | provision | provisions | provisions | Total |
1 Jan | 2.3 | 3.1 | 0.3 | 1.4 | 7.1 |
Additional provisions | 2.2 | 1.4 | 0.8 | 1.6 | 6.0 |
Used provisions during year | -0.4 | -2.0 | -0.6 | -0.4 | -3.4 |
Unused amounts reversed | -0.3 | -0.3 | – | -0.1 | -0.6 |
Divestments | -0.0 | -0.5 | – | – | -0.5 |
Transfer from other accruals | 0.2 | 0.2 | – | – | 0.4 |
Transfer between categories | 0.2 | -0.2 | – | -0.0 | 0.0 |
Exchange rate differences | -0.0 | 0.0 | -0.0 | -0.0 | -0.0 |
31 Dec | 4.2 | 1.8 | 0.5 | 2.4 | 8.9 |
EUR million | 31 Dec 2024 | 31 Dec 2023 |
Trade payables | 61.5 | 73.4 |
Tax deferral in Sweden | – | 29.8 |
Other liabilities | 3.1 | 5.8 |
Derivative financial liabilities | 0.0 | 0.1 |
Indirect tax liabilities | 15.6 | 14.1 |
Income tax liabilities | 1.5 | 0.6 |
Accrued expenses and prepaid income | 70.3 | 68.0 |
Total current trade and other payables | 152.0 | 191.8 |
EUR million | 31 Dec 2024 | 31 Dec 2023 |
Accrued wages and salaries | 35.9 | 32.7 |
Accrued indirect employee costs | 14.3 | 14.7 |
Other accruals | 20.1 | 20.6 |
Total | 70.3 | 68.0 |
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24
Deferred tax
| Deferred tax assets and liabilities | ||
EUR million | 31 Dec 2024 | 31 Dec 2023 |
Deferred tax assets | 27.2 | 27.9 |
Deferred tax liabilities | -10.7 | -11.3 |
Net deferred tax assets | 16.4 | 16.6 |
The movement on the deferred income tax amount during the year:
EUR million | 2024 | 2023 |
1 Jan | 16.6 | 6.0 |
Recognized in the income statement | 3.5 | 10.0 |
| Recognized in other comprehensive income: | ||
Translation differences | -0.3 | 0.2 |
Defined benefit plans | -1.0 | 0.4 |
Divestments | -2.4 | – |
31 Dec | 16.4 | 16.6 |
Deferred income tax assets and liabilities are offset when there is a legally enforceable right
to offset current tax assets against current tax liabilities and when the deferred income taxes
relate to the same fiscal authority.
The movement in deferred income tax assets and liabilities:
| Deferred tax assets | Retirement benefit | Tax losses carried | Other temporary | ||
| EUR million | obligations | forward | Leasing liabilities | differences | Total |
1 Jan 2023 | 0.2 | 10.5 | – | 5.6 | 16.3 |
Opening balance adjustment | – | – | 10.0 | -0.3 | 9.7 |
Recognized in the income statement | -0.2 | 10.0 | 1.3 | 1.3 | 12.4 |
Translation differences | 0.0 | 0.1 | 0.0 | 0.2 | 0.4 |
Offsetting | – | – | -10.9 | – | -10.9 |
31 Dec 2023 | 0.0 | 20.7 | 0.4 | 6.8 | 27.9 |
Opening balance adjustment of offsetting | – | – | 10.9 | – | 10.9 |
Recognized in the income statement | – | 2.6 | 1.6 | -0.6 | 3.6 |
Divestments | -0.0 | – | -0.2 | -3.1 | -3.3 |
Translation differences | – | -0.4 | -0.2 | 0.0 | -0.6 |
Offsetting | – | – | -11.3 | – | -11.3 |
31 Dec 2024 | – | 22.9 | 1.2 | 3.1 | 27.2 |
Deferred tax assets are recognized for tax loss carry forwards and temporary differences to the extent that the realisation of the related tax benefit against future taxable profits is probable. The
future taxable profit estimate is based on current business plans approved by management.
Gross amount of EUR 22.9 million (20.7) deferred tax assets are recognized for losses carried forward, of which EUR 14.9 million (11.4) relates to operations in Sweden. The change in the
gross amount during 2024 relates mainly to re-recognition of deferred tax assets in Sweden. On 31 December 2024 the Group had in its main operational countries a total of EUR 140.5 million
(165.2) tax losses for which no deferred tax asset was recognized. These tax losses do not have expiry date.
| Deferred tax liabilities | Retirement benefit | Fair value | Right-of-use | Other temporary | |
| EUR million | asset | adjustment | assets | differences | Total |
1 Jan 2023 | 1.3 | 4.9 | – | 4.1 | 10.3 |
Opening balance adjustment | – | – | 9.7 | – | 9.7 |
Recognized in the income statement | 0.9 | – | 1.2 | 0.3 | 2.4 |
Recognized in other comprehensive income | -0.4 | – | – | – | -0.4 |
Translation differences | 0.0 | -0.1 | 0.0 | 0.2 | 0.2 |
Offsetting | – | – | -10.9 | – | -10.9 |
31 Dec 2023 | 1.8 | 4.8 | 0.0 | 4.6 | 11.3 |
Opening balance adjustment of offsetting | – | – | 10.9 | – | 10.9 |
Recognized in the income statement | -0.4 | – | 0.9 | -0.3 | 0.1 |
Recognized in other comprehensive income | 1.0 | – | – | – | 1.0 |
Divestments | – | – | -0.2 | -0.7 | -0.9 |
Translation differences | -0.1 | -0.0 | -0.2 | -0.0 | -0.3 |
Offsetting | – | – | -11.3 | – | -11.3 |
31 Dec 2024 | 2.3 | 4.8 | 0.0 | 3.5 | 10.7 |
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Basis for preparation | Financial performance | Financial risk management and capital structure | Working capital and deferred taxes | Business combinations and capital expenditure | Remuneration and other
Business combinations and
capital expenditure
This section comprises the following notes
25 Acquisitions and disposals 91
26 Non-controlling interests 91
27 Intangible assets 92
28 Property, plant and equipment 93
29 Leasing 93
25
Acquisitions and disposals
Disposal of Polish High Voltage business
In April 2024, Eltel signed an agreement to divest its Polish High Voltage business via sale of
100% of the shares in Eltel Networks Energetyka S.A. and Eltel Networks Engineering S.A. to
Mutares SE & Co. KGaA, a listed private equity investor headquartered in Munich, Germany.
The transaction was completed on 6 June 2024 following receipt of customary regulatory
approval. The transaction was made in cash and it had negative cash flow impacts of EUR 4.0
million in the second quarter of 2024 and EUR 0.6 million in the third quarter of 2024. Total
negative cash flow impact for January-December 2024 was EUR 4.6 million.
In the first quarter of 2024 the Polish High Voltage business was recognized as asset held
for sale, resulting in a negative impact on Group EBIT of EUR 23.2 million. The negative impact
on Group EBIT in January-December 2024 was EUR 23.1 million, recognized in other
expenses in the income statement.
Until the divestment in 2024, the net sales in High Voltage Poland amounted to EUR 13.6
million and the adjusted EBITA amounted to EUR -1.0 million. In 2023, the net sales in High
Voltage Poland amounted to EUR 36.3 million, adjusted EBITA amounted to EUR -4.9 million
and the business consisted of about 410 employees. After completion of the divestment, Eltel
no longer has any High Voltage business in Poland.
26
Non-controlling interests
| Subsidiaries with | ||
| EUR million | non-controlling interest | |
Summarized statement of balance sheet | 31 Dec 2024 | 31 Dec 2023 |
Current assets | 30.9 | 28.8 |
Non-current assets | 5.4 | 4.4 |
Total assets | 36.3 | 33.2 |
Current liabilities | 12.8 | 12.0 |
Non-current liabilities | 3.4 | 2.1 |
Total liabilities | 16.2 | 14.1 |
| Equity: | ||
Shareholders’ equity | 20.1 | 19.1 |
Non-controlling interest | 8.0 | 7.6 |
Summarized income statement | 2024 | 2023 |
Net sales | 40.4 | 39.2 |
Net result | 1.6 | 0.8 |
Total comprehensive income | 1.6 | 0.8 |
Total comprehensive income allocated to non-controlling interests | 0.6 | 0.3 |
Dividends paid to non-controlling interest | -0.2 | -0.0 |
Summarized cash flows | 2024 | 2023 |
Cash flow from operating activities | 5.9 | 0.7 |
Cash flow from investing activities | 0.0 | -0.1 |
Cash flow from financing activities | -5.9 | -0.6 |
% of ownership | 60% | 60% |
Eltel Networks Pohjoinen Oy, in Finland, is a subsidiary with a non-controlling interest of 40%.
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| Other | |||||||
| 2024 | Customer | Order | Advances | intangible | |||
EUR million | Goodwill | relationship | backlog | Brand | paid | assets | Total |
Cost 1 Jan | 476.7 | 130.7 | 13.6 | 47.2 | 0.2 | 33.9 | 702.2 |
Additions | – | – | – | – | 0.1 | 0.3 | 0.3 |
Divestments | – | – | – | – | 0.0 | -1.8 | -1.8 |
Reclassification from property, plant and equipment | – | – | – | – | 0.0 | 0.1 | 0.1 |
Translation differences | -4.3 | -1.7 | -0.2 | -0.3 | 0.0 | -0.3 | -6.9 |
Cost 31 Dec | 472.3 | 128.9 | 13.4 | 46.9 | 0.2 | 32.2 | 693.9 |
Accumulated amortization and impairment 1 Jan | 223.0 | 130.7 | 13.6 | 20.8 | 0.0 | 27.6 | 415.6 |
Accumulated amortization of divestments | – | – | – | – | – | -1.8 | -1.8 |
Amortization during the year | – | – | – | – | – | 2.6 | 2.6 |
Translation differences | – | -1.7 | -0.2 | – | 0.0 | -0.2 | -2.1 |
Accumulated amortization and impairment 31 Dec | 223.0 | 128.9 | 13.4 | 20.8 | 0.0 | 28.3 | 414.3 |
Carrying value 1 Jan | 253.6 | 0.0 | 0.0 | 26.5 | 0.2 | 6.3 | 286.6 |
Carrying value 31 Dec | 249.3 | 0.0 | 0.0 | 26.2 | 0.2 | 3.9 | 279.6 |
| Other | |||||||
| 2023 | Customer | Order | Advances | intangible | |||
EUR million | Goodwill | relationship | backlog | Brand | paid | assets | Total |
Cost 1 Jan | 479.0 | 129.6 | 13.4 | 47.2 | 0.1 | 33.6 | 702.9 |
Additions | – | – | – | – | 0.4 | 0.2 | 0.6 |
Reclassification | – | – | – | – | -0.3 | 0.3 | 0.0 |
Translation differences | -2.4 | 1.0 | 0.1 | 0.1 | – | -0.1 | -1.3 |
Cost 31 Dec | 476.7 | 130.7 | 13.6 | 47.2 | 0.2 | 33.9 | 702.2 |
Accumulated amortization and impairment 1 Jan | 223.0 | 129.6 | 13.4 | 20.8 | – | 24.8 | 411.6 |
Amortization during the year | – | – | – | – | – | 2.8 | 2.8 |
Translation differences | – | 1.0 | 0.1 | – | – | 0.1 | 1.2 |
Accumulated amortization and impairment 31 Dec | 223.0 | 130.7 | 13.6 | 20.8 | 0.0 | 27.6 | 415.6 |
Carrying value 1 Jan | 256.0 | 0.0 | 0.0 | 26.4 | 0.1 | 8.8 | 291.3 |
Carrying value 31 Dec | 253.6 | 0.0 | 0.0 | 26.5 | 0.2 | 6.3 | 286.6 |
2024 | 2023 | |||||
EUR million | Brand | Goodwill | WACC | Brand | Goodwill | WACC |
Country Unit Finland | 8.2 | 79.7 | 10.8% | 8.2 | 79.7 | 12.1% |
Country Unit Sweden | 5.6 | 54.7 | 10.0% | 5.8 | 56.4 | 11.4% |
Country Unit Norway | 7.8 | 70.8 | 10.4% | 7.9 | 73.5 | 12.0% |
Country Unit Denmark | 3.5 | 34.4 | 10.1% | 3.5 | 34.4 | 11.6% |
Smart Grids Germany | 0.9 | 8.7 | 11.6% | 0.9 | 8.7 | 12.6% |
Other units | 0.1 | 0.9 | 11.9% | 0.1 | 0.9 | 12.6% |
Total | 26.2 | 249.3 | 26.5 | 253.6 |
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28
Property, plant and equipment
| 2024 | Machinery and | |||
EUR million | Land | Buildings | equipment | Total |
Cost 1 Jan | 0.1 | 1.0 | 73.8 | 74.8 |
Additions | – | 0.0 | 2.0 | 2.1 |
Disposals | – | 0.0 | -0.1 | -0.1 |
Divestments | -0.1 | -0.8 | -19.5 | -20.4 |
Reclassification to intangible assets | – | – | -0.1 | -0.1 |
Translation differences | 0.0 | 0.0 | -0.6 | -0.6 |
Cost 31 Dec | 0.0 | 0.2 | 55.5 | 55.7 |
Accumulated depreciation 1 Jan | 0.1 | 0.4 | 63.9 | 64.3 |
Accumulated depreciation of disposals | – | – | 0.0 | 0.0 |
Accumulated depreciation of divestments | -0.1 | -0.3 | -17.1 | -17.5 |
Depreciation during the year | – | 0.0 | 3.5 | 3.5 |
Impairment | – | – | 0.0 | 0.0 |
Translation differences | 0.0 | 0.0 | -0.5 | -0.5 |
Accumulated depreciation 31 Dec | 0.0 | 0.1 | 49.7 | 49.8 |
Carrying value 1 Jan | 0.0 | 0.6 | 9.9 | 10.5 |
Carrying value 31 Dec | 0.0 | 0.1 | 5.8 | 5.9 |
| 2023 | Machinery and | |||
EUR million | Land | Buildings | equipment | Total |
Cost 1 Jan | 0.1 | 0.9 | 69.3 | 70.2 |
Additions | – | 0.0 | 3.9 | 3.9 |
Disposals | – | – | -0.2 | -0.2 |
Translation differences | 0.0 | 0.1 | 0.8 | 0.9 |
Cost 31 Dec | 0.1 | 1.0 | 73.8 | 74.8 |
Accumulated depreciation 1 Jan | 0.0 | 0.3 | 59.2 | 59.5 |
Accumulated depreciation of disposals | – | – | -0.2 | -0.2 |
Depreciation during the year | – | 0.0 | 4.0 | 4.1 |
Impairment | – | – | 0.0 | 0.0 |
Translation differences | 0.0 | 0.0 | 0.8 | 0.9 |
Accumulated depreciation 31 Dec | 0.1 | 0.4 | 63.9 | 64.3 |
Carrying value 1 Jan | 0.0 | 0.6 | 10.1 | 10.7 |
Carrying value 31 Dec | 0.0 | 0.6 | 9.9 | 10.5 |
Right-of-use assets are not included in property, plant and equipment. See following note 29
for more information about leases.
29
Leasing
Under IFRS 16 Eltel recognizes a right-of-use asset representing its right to use the underlying
asset and a lease liability representing its obligation to make lease payments. Right-of-use
assets are depreciated on a straight line basis and an interest expense is recognized under
financing expenses for the lease liabilities. IFRS 16 requires use of estimates for valuating
contracts that are valid until further notice (continuous contracts). Lengths of these contracts
have been estimated based on expected usage in current business operations.
| IFRS 16 leasing expenses in income statement | ||
EUR million | 2024 | 2023 |
| Depreciation and impairment losses | ||
Depreciation of right-of-use assets | 25.5 | 22.3 |
Impairment losses on right-of-use assets | 3.1 | 0.9 |
| Other operating expenses | ||
Short-term lease expense | 2.8 | 3.2 |
Expense for leases of low-value assets | 2.6 | 2.4 |
| Financial expenses | ||
Interest expense on lease liabilities | 2.8 | 2.6 |
Total | 36.8 | 31.4 |
| Right-of-use assets | |||
| Machinery and | |||
EUR million | Buildings | equipment | Total |
1 Jan 2023 | 25.0 | 21.5 | 46.5 |
Additions | 8.2 | 26.1 | 34.3 |
Depreciation | -8.3 | -14.1 | -22.3 |
Impairment losses | -0.6 | -0.3 | -0.9 |
Other | -3.8 | -1.9 | -5.7 |
31 Dec 2023 | 20.5 | 31.4 | 51.9 |
Additions | 10.8 | 25.0 | 35.9 |
Depreciation | -8.9 | -16.6 | -25.5 |
Impairment losses | -0.2 | -2.9 | -3.1 |
Divestments | -0.9 | -0.2 | -1.0 |
Other | -2.2 | -2.5 | -4.7 |
31 Dec 2024 | 19.2 | 34.3 | 53.5 |
| Leasing liabilities | |||
EUR million | Non-current | Current | Total |
1 Jan 2023 | 31.0 | 16.8 | 47.8 |
Changes during the year | 3.0 | 3.1 | 6.1 |
31 Dec 2023 | 33.9 | 19.9 | 53.9 |
Changes during the year | 2.8 | 3.1 | 5.9 |
Divestments | -0.8 | -0.3 | -1.1 |
31 Dec 2024 | 36.0 | 22.7 | 58.7 |
Maturity analysis of leasing liabilities is presented in note 14.2 Liquidity risk. In addition, the
Group is committed to EUR 0.4 million (0.5) future lease payments for short-term lease
commitments.
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Basis for preparation | Financial performance | Financial risk management and capital structure | Working capital and deferred taxes | Business combinations and capital expenditure | Remuneration and other
Remuneration and other
This section comprises the following notes
30 Remuneration to senior executives 94
31 Financial assets 96
32 Retirementbenefitobligations 96
33 Auditors’ fees 97
34 Related party information 97
35 Group companies 97
30
Remuneration to senior executives
Number of key executives | 31 Dec 2024 | 31 Dec 2023 |
| Board of Directors | ||
Men | 4 | 3 |
Women | 2 | 3 |
| Other key executives | ||
Men | 5 | 6 |
Women | 4 | 3 |
Total | 15 | 15 |
Guidelines for remuneration to senior executives
Eltel AB’s Annual General Meeting 2024 approved the new guidelines for remuneration to sen-
ior executives. Information regarding the guidelines is presented in the Board of Directors’
report, on pages 58-59.
| Board of Director’s fees | ||
EUR thousands | 2024 | 2023 |
Per Sjöstrand 2) | 79 | – |
Ann Emilson | 45 | 45 |
Gunilla Fransson 1) | 18 | 53 |
Ulf Mattsson 1) | 40 | 119 |
Johan Nordström 2) | 24 | – |
Joakim Olsson | 45 | 45 |
Erja Sankari | 45 | 45 |
Roland Sundén | 58 | 53 |
Total | 353 | 359 |
1)
Until April 2024.
2)
From May 2024 onwards.
2024 | 2023 | |||
| Håkan | Other senior | Håkan | Other senior | |
| EUR thousands | Dahlström | executives 1) | Dahlström | executives 1) |
Fixed salary | 551 | 1,796 | 533 | 1,779 |
Annual variable salary | 160 | 423 | 266 | 149 |
Long-time variable salary | 45 | 59 | 4 | 16 |
Pension | 157 | 379 | 163 | 382 |
Other benefits | 1 | 54 | 17 | 87 |
Total | 913 | 2,710 | 983 | 2,414 |
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Note 30 continued
| Savings Shares | Performance | Performance | |
| maximum | Shares per | Options per | |
| Category | per person | Savings Share | Savings Share |
A CEO | 22,000 | 8.0× | 8.0× |
B Group Management Team 1) | 7,000 | 8.0× | 8.0× |
C Other key individuals 2) | 5,550 | 8.0× | 8.0× |
| Savings Shares | Performance | Performance | |
| maximum | Shares per | Options per | |
| Category | per person | Savings Share | Savings Share |
A CEO | 22,000 | 8.0× | 8.0× |
B Group Management Team 1) | 7,000 | 8.0× | 8.0× |
C Other key individuals 2) | 5,500 | 8.0× | 8.0× |
| Savings Shares | Performance | Performance | |
| maximum | Shares per | Options per | |
| Category | per person | Savings Share | Savings Share |
A CEO | 42,000 | 8.0× | 8.0× |
B Group Management Team 1) | 17,000 | 8.0× | 8.0× |
C Other key individuals 2) | 11,500 | 8.0× | 8.0× |
D Other participants 3) | 11,000 | 8.0× | – |
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EUR million | 31 Dec 2024 | 31 Dec 2023 |
Defined benefit pension asset | 11.3 | 8.6 |
Pension capitalization plan asset | 2.0 | 0.8 |
Other non-current receivables | 0.2 | 0.4 |
Total non-current financial assets | 13.4 | 9.8 |
| Pension liabilities in the balance sheet | ||
EUR million | 31 Dec 2024 | 31 Dec 2023 |
Defined benefit pension liability | – | – |
Defined benefit pension asset | -11.3 | -8.6 |
Net defined benefit pension liability (+)/-asset (-) | -11.3 | -8.6 |
Defined contribution pension liability | 6.6 | 5.6 |
Pension capitalization plan asset | -2.0 | -0.8 |
Net pension liability (+)/-asset (-) | -6.6 | -3.8 |
| Defined pension liabilities in the balance sheet | ||
EUR million | 31 Dec 2024 | 31 Dec 2023 |
Present value of funded obligations | 58.7 | 62.9 |
Fair value of plan assets | -70.0 | -71.5 |
Net liability (+)/ -asset (-) | -11.3 | -8.6 |
| The movement in the fair value of plan assets | ||
EUR million | 2024 | 2023 |
Fair value of assets 1 Jan | 71.5 | 67.2 |
Interest on plan assets | 2.3 | 2.5 |
Remeasurement of plan assets | 4.2 | 2.0 |
Contributions by employer | 0.2 | 0.5 |
Benefits paid | -6.4 | -0.7 |
Translation differences | -1.9 | 0.1 |
Fair value of assets 31 Dec | 70.0 | 71.5 |
| The movement in the defined benefit obligations | ||
EUR million | 2024 | 2023 |
Total obligations 1 Jan | 62.9 | 61.8 |
Current service cost | -1.0 | -0.8 |
Interest cost | 2.0 | 2.2 |
Remeasurement of pension obligation | 0.8 | 3.9 |
Benefits paid | -4.4 | -4.2 |
Gains and losses on curtailments and settlements | – | -0.0 |
Translation differences | -1.6 | 0.1 |
Total obligations 31 Dec | 58.7 | 62.9 |
| The amounts recognized in the income statement and other comprehensive income | ||
EUR million | 2024 | 2023 |
Current service cost | -1.0 | -0.8 |
Net interest cost | -0.4 | -0.3 |
Amount recognized in the income statement | -1.3 | -1.1 |
| Remeasurements recognized in other comprehensive | ||
| income: | ||
Financial assumptions | 0.5 | 1.6 |
Experience adjustments | -3.9 | 0.3 |
Total pension charges recognized during the year | -4.7 | 0.8 |
| Maturity profile of future gross benefit payments | ||
EUR million | 2024 | 2023 |
Less than 1 year | 4.3 | 4.8 |
1–5 years | 16.7 | 18.5 |
5–10 years | 19.4 | 21.0 |
10–20 years | 29.7 | 32.6 |
20–30 years | 16.4 | 18.0 |
Over 30 years | 7.5 | 8.1 |
Total | 94.0 | 103.0 |
The principal actuarial assumptions | 2024 | 2023 |
| Discount rate, % | ||
Sweden | 3.40 | 3.20 |
Finland | 3.20 | 4.10 |
| Future salary increase expectation, % | ||
Sweden | closed plan | closed plan |
Finland | 3.00 | 3.50 |
| Inflation rate, % | ||
Sweden | 1.80 | 1.60 |
Finland | 2.00 | 2.50 |
% | 2024 | 2023 |
Debt instruments | 63 | 62 |
Equity instruments | 37 | 37 |
Cash and cash equivalents | 1 | 1 |
Total | 100 | 100 |
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33
Auditors’ fees
EUR million | 2024 | 2023 |
| Main auditor | ||
Audit | 0.7 | 0.6 |
Other services | 0.1 | 0.1 |
Total | 0.8 | 0.7 |
| Other auditing firms | ||
Audit | 0.1 | 0.1 |
Other services | 0.0 | 0.1 |
Total | 0.1 | 0.2 |
Total | 0.9 | 0.9 |
The main auditor of the Group in 2024 and 2023 has been KPMG.
35
Group companies
31 Dec 2024 | Domicile | Group holding, % |
The InfraNet Company AB | Sweden | 100 |
Eltel Networks Infranet AB | Sweden | 100 |
Eltel Networks TE AB | Sweden | 100 |
Jämtlands Linjebyggare & Republikens El AB | Sweden | 100 |
Eltel Networks Infranet Privat AB | Sweden | 100 |
Eltel Group Corporation | Finland | 100 |
Eltel Networks Oy | Finland | 100 |
Eltel Networks Pohjoinen Oy | Finland | 60 |
Eltel Networks AS | Norway | 100 |
Eltel Networks A/S | Denmark | 100 |
Eltel Networks Poland S.A. | Poland | 100 |
Eltel Holding Poland Sp. z.o.o | Poland | 100 |
UAB Eltel Networks | Lithuania | 100 |
Eltel Networks GmbH | Germany | 100 |
Transmast Philippines, Inc. | Philippines | 40 1) |
Eltel Tanzania Limited | Tanzania | 100 |
| Jointly controlled entities | ||
Fiber og Anlaeg I/S | Denmark | 35 |
NKEL I/S | Denmark | 50 2 |
1)
Group voting 100%.
2)
Eltel’s estimated share of the operations is 30–35%.
During the financial year 2024 Eltel Networks Energetyka S.A. and Eltel Networks Engineering
S.A. were divested. Eltel Networks UK Limited was dissolved.
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Basis for preparation | Financial performance |Financialriskmanagementandcapitalstructure |Workingcapitalanddeferredtaxes | Business combinations and capital expenditure | Remuneration and other
Parent Company
financial statements
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Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Income statement
EUR thousands Note 2024 2023
Net sales 4 8,257 1,865
Personnel costs 5 -3,548 -3,023
Other operating expenses -5,557 -4,394
Total operating expenses -9,105 -7,417
Operating result -848 -5,552
Interest and other financial income 21,178 20,845
Interest and other financial expense -4,165 -3,565
Financial items, net 7 17,013 17,280
Result after financial items 16,165 11,728
Appropriations
Group contribution given 13 -16,000 -11,600
Result before tax 165 128
Tax for the year 8 – –
Net result for the year 165 128
Statement of comprehensive income
EUR thousands Note 2024 2023
Net result for the year 165 128
Other comprehensive income – –
Total comprehensive income for the year 165 128
Balance sheet
EUR thousands Note 31 Dec 2024 31 Dec 2023
ASSETS
Non-current assets
Financial assets
Shares in group companies 9 68,308 68,308
Long-term loans receivable from group companies 10 490,763 481,674
Other financial asset 919 –
Intangible assets 12 1
Total non-current assets 560,003 549,983
Current assets
Receivables from group companies 10 7,902 774
Other receivables 140 308
Cash pool receivables 10 4,441 4,380
Cash and cash equivalents 101 99
Total current assets 12,584 5,563
TOTAL ASSETS 572,587 555,546
EQUITY AND LIABILITIES
Restricted equity
Share capital 161,950 161,950
Statutory reserve 695 695
Total restricted equity 162,645 162,645
Non-restricted equity
Retained earnings 278,153 281,226
Hybrid bond 25,000 25,000
Net result for the year 165 128
Total non-restricted equity 303,318 306,354
Total equity 11 465,963 468,999
LIABILITIES
Non-current liabilities
Retirement benefit obligations 12 919 –
Provisions 12 223 –
Total non-current liabilities 1,142 –
Current liabilities
Debt 12 9,947 7,945
Liabilities to group companies 13 93,951 77,936
Trade and other payables 14 1,585 666
Total current liabilities 105,483 86,547
Total liabilities 106,625 86,547
TOTAL EQUITY AND LIABILITIES 572,587 555,546
Annual Report 2024 99
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Changes in equity
EUR thousands
Share
capital
Statutory
reserve
Non-restricted
equity
Total
equity
1 Jan 2024 161,950 695 306,354 468,999
Net profit for the year – – 165 165
Total comprehensive income/loss for the year – – 165 165
Transaction costs and interests on hybrid bond – – -3,375 -3,375
Transactions with owners
1)
Equity-settled share-based payment – – 174 174
Total transactions with owners – – 174 174
31 Dec 2024 161,950 695 303,318 465,963
1 Jan 2023 159,576 695 285,257 445,528
Net profit for the year – – 128 128
Total comprehensive income/loss for the year – – 128 128
Hybrid bond – – 25,000 25,000
Transaction costs and interests on hybrid bond – – -1,667 -1,667
Transactions with owners
1)
Proceeds from shares issued 2,375 – – 2,375
Purchase of own shares – – -2,374 -2,374
Equity-settled share-based payment – – 10 10
Total transactions with owners 2,375 – -2,364 11
31 Dec 2023 161,950 695 306,354 468,999
1)
For more information about equity-settled share-based payments see note 30 Remuneration to senior executives in the consolidated financial statements and for
share transactions see note 11 Equity and share capital.
Cash flow statement
EUR thousands Note 2024 2023
Cash flow from operating activities
Profit/loss before taxes 165 128
Adjustments for:
Depreciation 2 21
Equity-settled share-based payment 174 10
Group contribution given 13 16,000 11,600
Financial items, net -16,758 -17,280
Changes in working capital:
Trade and other receivables -7,021 301
Trade and other payables 840 284
Cash flow from operating activities before financial items and taxes -6,597 -4,936
Financial income received 11,808 14,722
Financial expenses paid -4,077 -3,503
Cash flow from operating activities 1,134 6,283
Cash flow from investing activities
Purchases of property, plant and equipment (PPE) -13 –
Cash flow from investing activities -13 –
Cash flow from financing activities
Proceeds from issuance of hybrid bond – 24,400
Payments of transaction costs and interests for hybrid bond -3,375 -1,067
Proceeds from issuance of share capital – 2,379
Purchase of own shares – -2,378
Proceeds from short-term borrowings 4,000 10,500
Payments of short-term borrowings -2,000 -36,000
Proceeds from short-term borrowings from group companies 11,855 10,384
Payments of group contributions -11,600 -14,500
Cash flow from financing activities -1,120 -6,282
Decrease/increase in cash and cash equivalents 1 1
Cash and cash equivalents at beginning of year 99 98
Cash and cash equivalents at end of year 101 99
Annual Report 2024 100
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Notes to the Parent Company
financial statements
This section comprises the following notes
1 General information 101
2 Accounting principles 101
3 Financial risk management 101
4 Net sales 101
5 Employeebenefitexpenses 101
6 Auditors’ fees 102
7 Resultfromfinancialitems 102
8 Taxes 102
9 Shares in group companies 102
10 Receivables from related parties 102
11 Equity and share capital 103
12 Liabilities 103
13 Liabilities to group companies 103
14 Trade and other payables 103
15 Contingent liabilities and pledged assets 103
1
General information
Eltel AB’s role is to own and govern the shares related to Eltel Group. The Company holds
management functions but has no operative business activities and its risks are mainly attrib-
utable to the value and activities of its subsidiaries. All transactions with group companies are
performed on an arm’s length basis. Additional general information about the Parent Com-
panycanbefoundinnote1Corporateinformationintheconsolidatedfinancial statements.
2
Accounting principles
Basis for the preparation of the reports
The annual report for the Parent Company, Eltel AB, has been prepared in accordance with the
Swedish Annual Accounts Act and RFR 2 Accounting for Legal Entities. RFR 2 states that the
Parent Company in its annual report shall apply IFRS Accounting Standards as adopted by
the EU, to the extent possible within the framework of the Swedish Annual Accounts Act and
the law of safeguarding of pension commitments, and also by taking into account the rela-
tionship between reporting and taxation.
Accordingly, the Parent Company applies those principles presented in note 2 Material
accounting policies for the consolidated accounts in the consolidated financial statements
with the exception of what is mentioned below. The principles have been applied consistently
for all years presented, unless otherwise stated.
The income statement for the Parent company is presented on the nature of expense
method. The Parent company has reported group contributions and related taxes in the
income statement in accordance with RFR 2. The Parent company does not apply IFRS 16 in
accordance with the exception in RFR 2.
All figures in the Parent Company financial statements are presented in thousands of Euro
unless otherwise stated.
Shares and participations in subsidiaries
Shares and participations in subsidiaries are reported at acquisition cost less deduction for
possible write-downs. Dividends received are reported as revenues to the extent they origi-
nate from earnings earned after the acquisition. Dividend amounts exceeding these returns
are considered as repayments of the investment and reduce the carrying value of the
participations.
When there is an indication that shares and participations in subsidiaries have decreased
in value, an estimate is made of the recoverable amount. If this value is lower than the
reported value, a write-down is made. Write-downs/impairment losses are reported as a sep-
arate line in the income statement.
Financial instruments
The Company applies fair value in accordance with the Swedish Annual Accounts Act 4:
14a-d and hence the description of the accounting principles in Financial instruments of the
consolidated financial statements also applies to the Parent Company with the exception of
financial guarantees. The Parent Company applies the rule permitted by the Swedish Finan-
cial Reporting Board to the reporting of financial guarantee agreements issued for the benefit
of subsidiaries, associated companies and joint ventures. The Parent Company recognizes
financial guarantees as a provision in the balance sheet when the company has an obligation
for which payment is probably necessary to settle the commitment.
The Company’s financial instruments are comprised of long-term receivables from Group
companies, other financial assets, current receivables from Group companies and also cash
and cash equivalents. These make up the category financial assets at amortized cost, except
for other financial assets which are classified as financial assets at fair value through profit or
loss. Financial instruments are also comprised of long-term borrowing, short-term liabilities
to group companies, accounts payable and other liabilities. These comprise the category
financial liabilities at amortized cost.
Group contributions
The Company has chosen to apply the alternative rule in accordance with RFR 2, which
means that all group contributions are recognized in appropriations.
3
Financial risk management
The Group applies common risk management for all units. Hence, the description in note 14
Financial risk management in the consolidated financial statements applies to the Parent
Company as well in all material aspects.
4
Net sales
EUR thousands 2024 2023
Remunerations from group companies for
group-wide administration 8,257 1,865
Total 8,257 1,865
5
Employee benefit expenses
EUR thousands 2024 2023
Salaries and other remunerations 1,950 1,933
Social security contributions:
Pension costs 641 410
Other social security contributions 957 679
Total 3,548 3,023
2024 2023
Average number of employees 8 7
Of whom men 40% 47%
Salaries and other remunerations to senior executives were EUR 1.7 million (1.5), pension
costs EUR 0.3 million (0.3) and other social security contri butions EUR 0.5 million (0.4). Group
senior executives participate in the long-term share-based incentive programs LTIP 2021,
LTIP 2022, LTIP 2023 and LTIP 2024. Total expense for the programs for the year was EUR 161
thousand (44), of which EUR 114 thousand (24) for the President and CEO and other senior
executives. More information of Group senior executives and the Board of Directors is pre-
sented in note 30 Remuneration to senior excecutives and note 34 Related party information
intheconsolidatedfinancial statements.
In Eltel AB the number of individuals in the Board of Directors was six in 2024 and 2023 and
the number of other senior executives employed by the company was four in 2024 and four in
2023.
Annual Report 2024
101
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
6
Auditors’ fees
EUR thousands 2024 2023
Main auditor
Audit assignments 227 149
Tax assignments 9 6
Other assignments 14 14
The company in total 250 169
Main auditor in 2024 and 2023 has been KPMG.
7
Result from financial items
EUR thousands 2024 2023
Interest and other financial income
Interest income 1 2
Interest income, loans from group companies 20,721 20,627
Other financial income 257 –
Other financial income, group companies 198 216
Total 21,178 20,845
Interest and other financial expenses
Interest expenses -454 -1,142
Interest expenses, group companies -3,693 -2,364
Expected credit loss write-down on internal loans
receivable -25 -16
Other financial expenses 7 -43
Total -4,165 -3,565
Total financial items 17,013 17,280
8
Taxes
EUR thousands 2024 2023
Income taxes
Result before tax 165 128
Tax calculated at Swedish tax rate 34 26
Expenses not deductible for tax purposes 156 22
Tax effect of results for which no deferred
income tax was recognized -191 -48
Income taxes in the income statement
– –
Eltel AB has not recognized deferred tax assets for losses carried forward. The Group’s esti-
mate for utilizing losses carried forward in Sweden covers Eltel AB and all Swedish subsidiar-
ies as group contribution and interest offsetting is utilized in taxation between the entities.
The amount of deferred tax assets for losses carried forward in Sweden is reported in note 24
in the consolidated financial statements and reported in companies where Eltel estimates to
utilize the losses.
9
Shares in group companies
EUR thousands 2024 2023
Acquisition value
Opening balance 1 Jan 268,308 268,308
Closing balance 31 Dec 268,308 268,308
Accumulated impairment losses
Opening balance 1 Jan -200,000 -200,000
Closing balance 31 Dec -200,000 -200,000
Carrying amount on the balance sheet 68,308 68,308
Shares are held in the following subsidiaries:
The InfraNet Company AB, 556728-6645, Stockholm 2024 2023
Share of equity, % 100 100
Share of voting power, % 100 100
Number of shares 11,000 11,000
Book value 68,308 68,308
10
Receivables from related parties
Non-current receivables
EUR thousands 31 Dec 2024 31 Dec 2023
Loans from group companies 490,763 481,674
Other financial assets 919 –
Total 491,682 481,674
Current receivables
EUR thousands 31 Dec 2024 31 Dec 2023
Cash pool receivable 4,441 4,380
Accounts receivable 7,902 774
Total 12,343 5,155
Interest resulting from loans to group companies is capitalized annually. Capitalized interest
bears no interest.
Eltel AB applies rating-based expected credit loss (ECL) model according to IFRS 9 for
impairment of non-current receivables from group companies. In 2024, a write-down amount-
ing to 25 thousand euro (16) has been recognized in the credit loss reserve of long-term loans
receivable. For more information about the ECL model, please refer to note 14 in the consoli-
dated financial statements.
Annual Report 2024
102
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ reportNotes to the Parent Company financial statements
11
Equity and share capital
There were no changes in shares and share capital in 2024.
On 20 November 2023, Eltel issued and repurchased 2,354,500 class C shares in accord-
ance with the renewed authorization regarding the incentive program LTIP 2022 that the AGM
on 11 May 2023 resolved upon and in accordance with the incentive program LTIP 2023
which was adopted by the AGM on 11 May 2023. Eltel held the repurchased shares at 31
December 2023 and at 31 December 2024 and will hold the shares until it is time to deliver
shares to the qualifying participants of LTIP 2022 and LTIP 2023, respectively. Prior to the
delivery of the shares to qualifying participants, the class C shares will be converted to ordi-
nary shares. The purpose of the repurchase of class C shares was to ensure delivery of
shares to participants and to secure social contributions arising as a result of LTIP 2022 and
LTIP 2023, respectively. The share issue resulted in an increase of share capital by EUR
2,374,508.
On 31 December 2024, the total number of shares amounted to 160,585,581 divided into
156,736,781 ordinary shares with 1 vote per share and 3,848,800 C shares with 1/10 vote per
share. On 31 December 2024 the share capital amounted to EUR 161,950 thousand. A specifi-
cation of changes in equity is found under the section “Changes in equity”, which is presented
directly after the balance sheet.
Shareholders with more than 10% of the votes at 31 December 2024 are Solero Luxco
S.á.r.l. (a company controlled by Triton Funds) with 16.4% and Wipunen Varainhallinta Oy with
14.9% of ordinary shares. More information about Eltel’s shareholders is found in “The Eltel
Share” on pages 110–111.
12
Liabilities
EUR thousands 31 Dec 2024 31 Dec 2023
Non-current liabilities
Retirement benefit obligation 919 –
Provision 223 –
Total non-current liabilities 1,142
–
Current liabilities
Bank borrowings 9,947 7,945
Total current liabilities 9,947 7,945
13
Liabilities to group companies
EUR thousands 31 Dec 2024 31 Dec 2023
Cash pool payable 77,156 65,241
Accounts payable 794 1,095
Group contribution liabilities 16,000 11,600
Total 93,951 77,936
14
Trade and other payables
EUR thousands 31 Dec 2024 31 Dec 2023
Trade payables 112 87
Accrued employee related expenses 418 108
Other short-term liabilities 290 214
Other accrued expenses 765 256
Total 1,585 666
15
Contingent liabilities and pledged assets
Contingent liabilities
EUR thousands 31 Dec 2024 31 Dec 2023
Commercial guarantees on behalf of subsidiaries 80,637 111,293
Total guarantees 80,637 111,293
Pledged assets
EUR thousands 31 Dec 2024 31 Dec 2023
Pledged subsidiary shares 68,308 68,308
Pledged other assets 491,366 482,252
Total pledged assets 559,674 550,560
At year-end, Eltel Group had secured its debt obligations towards the banks under the financ-
ing agreement by share and intragroup loan pledges and floating charges over certain assets
of the Group, all on customary terms and conditions. Eltel AB has pledged the assets shown
in the above table as a security for the financing agreement.
Annual Report 2024
103
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ reportNotes to the Parent Company financial statements
The Company’s financial statement will be submitted
for approval to the Annual General Meeting on 13 May 2025
The Board of Directors certifies that the annual financial report has been
prepared in accordance with generally accepted accounting principles and
that the consolidated accounts have been prepared in accordance with the
international set of accounting standards referred to in Regulation (EC) No
1606/2002 of the European Parliament and of the Council of 19 July 2002 on
the application of international accounting standards; and give a true and fair
view of the position and profit or loss of the Company and the Group; and
that the management report for the Company and for the Group gives a fair
overview of the development and performance of the business, position and
profit or loss of the Company and the Group; and describes the principal
risks and uncertainties that the Company and the companies in the
Groupface.
Stockholm 24 March 2025
Per Sjöstrand Ann Emilson Johan Nordström
Chairman of the Board of Directors Board member Board member
Joakim Olsson Erja Sankari Roland Sundén
Board member Board member Board member
Stefan Söderholm Håkan Dahlström Björn Tallberg
Board member President and CEO Board member
Our audit report was submitted on 25 March 2025
KPMG AB
Fredrik Westin
Authorized Public Accountant
Annual Report 2024 104
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Auditor’s report
To the general meeting of the shareholders
of Eltel AB (publ), corp. id 556728-6652
Report on the annual accounts and
consolidated accounts
Opinions
We have audited the annual accounts and consolidated
accounts of Eltel AB (publ) for the year 2024, except for
the corporate governance statement on pages 60–66.
The annual accounts and consolidated accounts of
the company are included on pages 52–104 in this
document.
In our opinion, the annual accounts have been prepared
in accordance with the Annual Accounts Act, and present
fairly, in all material respects, the financial position of the
parent company as of 31 December 2024 and its finan-
cial performance and cash flow for the year then ended in
accordance with the Annual Accounts Act. The consoli-
dated accounts have been prepared in accordance with
the Annual Accounts Act and present fairly, in all material
respects, the financial position of the group as of 31
December 2024 and their financial performance and cash
flow for the year then ended in accordance with IFRS
Accounting Standards, as adopted by the EU, and the
Annual Accounts Act. Our opinions do not cover the cor-
porate governance statement on pages 60–66. The stat-
utory administration report is consistent with the other
parts of the annual accounts and consolidated accounts.
We therefore recommend that the general meeting of
shareholders adopts the income statement and balance
sheet for the parent company and the group.
Our opinions in this report on the the annual accounts
and consolidated accounts are consistent with the con-
tent of the additional report that has been submitted to
the parent company’s audit committee in accordance
with the Audit Regulation (537/2014) Article 11.
Basis for Opinions
We conducted our audit in accordance with Interna-
tional Standards on Auditing (ISA) and generally
accepted auditing standards in Sweden. Our responsibil-
ities under those standards are further described in the
Auditor’s Responsibilities section. We are independent of
the parent company and the group in accordance with
professional ethics for accountants in Sweden and have
otherwise fulfilled our ethical responsibilities in accord-
ance with these requirements.This includes that, based
on the best of our knowledge and belief, no prohibited
services referred to in the Audit Regulation (537/2014)
Article 5.1 have been provided to the audited company
or, where applicable, its parent company or its controlled
companies within the EU.
We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our
opinions.
Key Audit Matters
Key audit matters of the audit are those matters that,
in our professional judgment, were of most significance
in our audit of the annual accounts and consolidated
accounts of the current period. These matters were
addressed in the context of our audit of, and in forming
our opinion thereon, the annual accounts and consoli-
dated accounts as a whole, but we do not provide a sep-
arate opinion on these matters.
Revenue and profit calculation of projects
See disclosure 4 and accounting principles on page 73
in the annual account and consolidated accounts for
detailed information and description of the matter.
Description of key audit matter
In its consolidated accounts, Eltel applies the standard
IFRS 15 Revenue from Contracts with Customers for its
revenue recognition. This means that performance
obligations relevant to the projects Eltel carries out on
behalf of its customers are normally fulfilled over time.
It also means that revenues are being recognized over
time successively), where progress is measured in rela-
tion to the complete fulfillment of Eltel’s performance
obligations.
The projects’ results (“profit calculation”) are therefore
also reported successively, in relation to the degree/
percentage of completion of each project. The percent-
age of completion depends on the actual project costs
associated with the total projected costs. The latter may
change during the life cycle of the projects, which in turn
may have a significant impact on the projects’ reported
revenues and results. Unforeseeable costs may also
need to be included in the assessments in order to take
project risks or disputed claims into account. These
items are regularly assessed by the Group and adjusted
if necessary. Expected losses are fully recognized as
expenses as soon as they are known.
Revenues from project alterations and additional
work are recognized on the basis of what is judged to be
received. Based on the above, there is, in total, a large
element of assessments on the part of Eltel in this area,
which in turn affects the reporting of revenues and results.
Response in the audit
We have obtained information about and evaluated
management’s process for reviewing projects, including
the procedures they use for identifying and reporting
loss-making and/or high-risk projects. Project managers
and project controllers within Eltel have also been
involved in this work.
In addition, we have tested whether Eltel’s more
important project-related controls have been effective
throughout the year, such as approvals of contracts and
time reporting, ongoing follow-up and reporting of pro-
ject costs, and profitability. We have also evaluated con-
trols related to costs for subcontractors and other pur-
chases. Furthermore, we have performed sample test-
ing; for example, we have examined whether costs allo-
cated to the projects correspond to data/documenta-
tion, and whether both the cost and revenue recognition
is true and fair.
We have also assessed whether risks and opportuni-
ties in projects are reflected in a balanced way in the
project forecasts.
Annual Report 2024 105
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ report
Valuation of goodwill (group) and shares
in group companies (parent company)
See disclosure 27 (group) and disclosure 9 (parent com-
pany) and accounting principles on page 75 (group) and
on page 101 (parent company) in the annual account
and consolidated accounts for detailed information and
description of the matter.
Description of key audit matter
The carrying value of goodwill for the Group as at 31
December 2024 amounted to 249,3 MEUR, which is
approximately 43% of total assets. Goodwill, which is
required to be tested annually for impairment, is a com-
plex area which is heavily dependent on judgment.
Under IFRS, the impairment test should be performed
in line with a specific method where management needs
to make judgments of future conditions and plans, both
internal and external. An example of these judgments is
forecasts of future cash flows which, among other
things, call for assumptions to be made about future
developments and market conditions.
Another important assumption is the discount rate
that should be used to reflect market- based assess-
ments of the time value of money and the particular
risks that the business faces.
The carrying value of shares in Group companies in
the parent company as at 31 December 2024 amounted
to 68,3 MEUR. If the carrying amount of the shares
exceeds the consolidated value of the respective group
company, the same type of testing is carried out, with
the same technique and input values, as for goodwill in
the Group.
Response in the audit
We have reviewed whether the goodwill impairment
tests carried out by Eltel were performed in accordance
with the prescribed accounting method. We have further
considered the reasonableness of the assumptions in
the cashflow forecasts, as well as the discount rate
used, through an evaluation of the Group’s internal writ-
ten documentation and forecasts. We have also inter-
viewed management and evaluated previous years’
assessments in relation to actual outcomes.
Another important part of our work has been to review
the Group’s sensitivity analysis of its own assessments
to evaluate how reasonable changes in the assumptions
may impact the valuations.
Furthermore, we have considered the completeness
of the disclosures in the annual report and evaluated
whether they are in line with the assumptions made in
the Group’s impairment tests, and that they correspond
in material aspects to the information that should be
provided in accordance with IFRS.
Other Information than the annual accounts
and consolidated accounts
This document also contains other information than the
annual accounts and consolidated accounts and is
found on pages 1–50 and 109–116. The other informa-
tion comprises also of the remuneration report which
we obtained prior to the date of this auditor’s report. The
Board of Directors and the Managing Director are
responsible for this other information.
Our opinion on the annual accounts and consolidated
accounts does not cover this other information and we
do not express any form of assurance conclusion
regarding this other information.
In connection with our audit of the annual accounts
and consolidated accounts, our responsibility is to read
the information identified above and consider whether
the information is materially inconsistent with the annual
accounts and consolidated accounts. In this procedure
we also take into account our knowledge otherwise
obtained in the audit and assess whether the information
otherwise appears to be materially misstated.
If we, based on the work performed concerning this
information, conclude that there is a material misstate-
ment of this other information, we are required to report
that fact. We have nothing to report in this regard.
Responsibilities of the Board of Directors and
the Managing Director
The Board of Directors and the Managing Director are
responsible for the preparation of the annual accounts
and consolidated accounts and that they give a fair pres-
entation in accordance with the Annual Accounts Act
and, concerning the consolidated accounts, in accord-
ance with IFRS Accounting Standards as adopted by the
EU. The Board of Directors and the Managing Director are
also responsible for such internal control as they deter-
mine is necessary to enable the preparation of annual
accounts and consolidated accounts that are free from
material misstatement, whether due to fraud or error.
In preparing the annual accounts and consolidated
accounts The Board of Directors and the Managing
Director are responsible for the assessment of the
company’s and the group’s ability to continue as a going
concern. They disclose, as applicable, matters related
to going concern and using the going concern basis of
accounting. The going concern basis of accounting is
however not applied if the Board of Directors and the
Managing Director intend to liquidate the company,
to cease operations, or has no realistic alternative but
to do so.
The Audit Committee shall, without prejudice to the
Board of Director’s responsibilities and tasks in general,
among other things oversee the company’s financial
reporting process.
Auditor’s responsibility
Our objectives are to obtain reasonable assurance about
whether the annual accounts and consolidated
accounts as a whole are free from material misstate-
ment, whether due to fraud or error, and to issue an audi-
tor’s report that includes our opinions. Reasonable
assurance is a high level of assurance, but is not a guar-
antee that an audit conducted in accordance with ISAs
and generally accepted auditing standards in Sweden
will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and
are considered material if, individually or in the aggre-
gate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these
annual accounts and consolidated accounts.
As part of an audit in accordance with ISAs, we exer-
cise professional judgment and maintain professional
scepticism throughout the audit. We also:
• Identify and assess the risks of material misstate-
ment of the annual accounts and consolidated
accounts, whether due to fraud or error, design and
perform audit procedures responsive to those risks,
and obtain audit evidence that is sufficient and appro-
priate to provide a basis for our opinions. The risk of
not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omis-
sions, misrepresentations, or the override of internal
control.
• Obtain an understanding of the company’s internal
control relevant to our audit in order to design audit
procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on
the effectiveness of the company’s internal control.
Annual Report 2024 106
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ reportAuditor’s report
• Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting esti-
mates and related disclosures made by the Board
of Directors and the Managing Director.
• Conclude on the appropriateness of the Board of
Directors’ and the Managing Director’s, use of the
going concern basis of accounting in preparing the
annual accounts and consolidated accounts. We also
draw a conclusion, based on the audit evidence
obtained, as to whether any material uncertainty
exists related to events or conditions that may cast
significant doubt on the company’s and the group’s
ability to continue as a going concern. If we conclude
that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the related
disclosures in the annual accounts and consolidated
accounts or, if such disclosures are inadequate, to
modify our opinion about the annual accounts and
consolidated accounts. Our conclusions are based on
the audit evidence obtained up to the date of our audi-
tor’s report. However, future events or conditions may
cause a company and a group to cease to continue
as a going concern.
• Evaluate the overall presentation, structure and con-
tent of the annual accounts and consolidated
accounts, including the disclosures, and whether the
annual accounts and consolidated accounts repre-
sent the underlying transactions and events in a man-
ner that achieves fair presentation.
• Plan and perform the group audit to obtain sufficient
and appropriate audit evidence regarding the financial
information of the entities or business units within the
group as a basis for forming an opinion on the consol-
idated accounts. We are responsible for the direction,
supervision and review of the audit work performed
for purposes of the group audit. We remain solely
responsible for our opinions.
We must inform the Board of Directors of, among other
matters, the planned scope and timing of the audit. We
must also inform of significant audit findings during our
audit, including any significant deficiencies in internal
control that we identified.
We must also provide the Board of Directors with a
statement that we have complied with relevant ethical
requirements regarding independence, and to communi-
cate with them all relationships and other matters that
may reasonably be thought to bear on our independ-
ence, and where applicable, measures that have been
taken to eliminate the threats or related safeguards.
From the matters communicated with the Board of
Directors, we determine those matters that were of
most significance in the audit of the annual accounts
and consolidated accounts, including the most impor-
tant assessed risks for material misstatement, and are
therefore the key audit matters. We describe these
matters in the auditor’s report unless law or regulation
precludes disclosure about the matter.
Report on other legal and regulatory requirements
Auditor’s audit of the administration and the proposed
appropriations of profit or loss
Opinions
In addition to our audit of the annual accounts and con-
solidated accounts, we have also audited the adminis-
tration of the Board of Directors and the Managing Direc-
tor of Eltel AB (publ) for the year 2024 and the proposed
appropriations of the company’s profit or loss.
We recommend to the general meeting of sharehold-
ers that the profit be appropriated in accordance with
the proposal in the statutory administration report and
that the members of the Board of Directors and the
Managing Director be discharged from liability for the
financial year.
Basis for Opinions
We conducted the audit in accordance with generally
accepted auditing standards in Sweden. Our responsibil-
ities under those standards are further described in the
Auditor’s Responsibilities section. We are independent of
the parent company and the group in accordance with
professional ethics for accountants in Sweden and have
otherwise fulfilled our ethical responsibilities in accord-
ance with these requirements.
We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our
opinions.
Responsibilities of the Board of Directors and
the Managing Director
The Board of Directors is responsible for the proposal
for appropriations of the company’s profit or loss. At the
proposal of a dividend, this includes an assessment of
whether the dividend is justifiable considering the
requirements which the company’s and the group’s type
of operations, size and risks place on the size of the
parent company’s and the group’s equity, consolidation
requirements, liquidity and position in general.
The Board of Directors is responsible for the compa-
ny’s organization and the administration of the compa-
ny’s affairs. This includes among other things continu-
ous assessment of the company’s and the group’s finan-
cial situation and ensuring that the company’s organiza-
tion is designed so that the accounting, management of
assets and the company’s financial affairs otherwise are
controlled in a reassuring manner.
The Managing Director shall manage the ongoing
administration according to the Board of Directors’
guidelines and instructions and among other matters
take measures that are necessary to fulfill the compa-
ny’s accounting in accordance with law and handle the
management of assets in a reassuring manner.
Auditor’s responsibility
Our objective concerning the audit of the administration,
and thereby our opinion about discharge from liability,
is to obtain audit evidence to assess with a reasonable
degree of assurance whether any member of the Board
of Directors or the Managing Director in any material
respect:
• has undertaken any action or been guilty of any omis-
sion which can give rise to liability to the company, or
• in any other way has acted in contravention of the
Companies Act, the Annual Accounts Act or the
Articles of Association.
Our objective concerning the audit of the proposed
appropriations of the company’s profit or loss, and
thereby our opinion about this, is to assess with reason-
able degree of assurance whether the proposal is in
accordance with the Companies Act.
Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accord-
ance with generally accepted auditing standards in Swe-
den will always detect actions or omissions that can
give rise to liability to the company, or that the proposed
appropriations of the company’s profit or loss are not
in accordance with the Companies Act.
As part of an audit in accordance with generally
accepted auditing standards in Sweden, we exercise
professional judgment and maintain professional
scepticism throughout the audit. The examination of the
administration and the proposed appropriations of the
company’s profit or loss is based primarily on the audit
of the accounts. Additional audit procedures performed
are based on our professional judgment with starting
point in risk and materiality. This means that we focus
the examination on such actions, areas and relation-
ships that are material for the operations and where devi-
ations and violations would have particular importance
Annual Report 2024 107
Overview Operations GovernanceSustainability OtherFinancial reportsBoard of Directors’ reportAuditor’s report
for the company’s situation. We examine and test deci-
sions undertaken, support for decisions, actions taken
and other circumstances that are relevant to our opinion
concerning discharge from liability. As a basis for our
opinion on the Board of Directors’ proposed appropria-
tions of the company’s profit or loss we examined
whether the proposal is in accordance with the
Companies Act.
The auditor’s examination of the Esef report
Opinion
In addition to our audit of the annual accounts and
consolidated accounts, we have also examined that the
Board of Directors and the Managing Director have pre-
pared the annual accounts and consolidated accounts
in a format that enables uniform electronic reporting
(the Esef report) pursuant to Chapter 16, Section 4(a)
of the Swedish Securities Market Act (2007:528) for
Eltel AB (publ) for year 2024.
Our examination and our opinion relate only to the
statutory requirements.
In our opinion, the Esef report has been prepared in
a format that, in all material respects, enables uniform
electronic reporting.
Basis for opinion
We have performed the examination in accordance with
FAR’s recommendation RevR 18 Examination of the
Esef report. Our responsibility under this recommenda-
tion is described in more detail in the Auditors’ responsi-
bility section. We are independent of Eltel AB (publ) in
accordance with professional ethics for accountants in
Sweden and have otherwise fulfilled our ethical respon-
sibilities in accordance with these requirements.
We believe that the evidence we have obtained is suf-
ficient and appropriate to provide a basis for our opinion.
Responsibilities of the Board of Directors and
the Managing Director
The Board of Directors and the Managing Director are
responsible for the preparation of the Esef report in
accordance with the Chapter 16, Section 4(a) of the
Swedish Securities Market Act (2007:528), and for such
internal control that the Board of Directors and the
Managing Director determine is necessary to prepare
the Esef report without material misstatements,
whether due to fraud or error.
Auditor’s responsibility
Our responsibility is to obtain reasonable assurance
whether the Esef report is in all material respects pre-
pared in a format that meets the requirements of Chap-
ter 16, Section 4(a) of the Swedish Securities Market Act
(2007:528), based on the procedures performed.
RevR 18 requires us to plan and execute procedures
to achieve reasonable assurance that the Esef report is
prepared in a format that meets these requirements.
Reasonable assurance is a high level of assurance,
but it is not a guarantee that an engagement carried out
according to RevR 18 and generally accepted auditing
standards in Sweden will always detect a material mis-
statement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually
or in aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the
basis of the Esef report.
The audit firm applies International Standard on
Quality Management 1, which requires the firm to design,
implement and operate a system of quality management
including policies or procedures regarding compliance
with ethical requirements, professional standards and
applicable legal and regulatory requirements.
The examination involves obtaining evidence, through
various procedures, that the Esef report has been pre-
pared in a format that enables uniform electronic report-
ing of the annual accounts and consolidated accounts.
The procedures selected depend on the auditor’s judg-
ment, including the assessment of the risks of material
misstatement in the report, whether due to fraud or
error. In carrying out this risk assessment, and in order to
design procedures that are appropriate in the circum-
stances, the auditor considers those elements of inter-
nal control that are relevant to the preparation of the
Esef report by the Board of Directors and the Managing
Director, but not for the purpose of expressing an opin-
ion on the effectiveness of those internal controls. The
examination also includes an evaluation of the appropri-
ateness and reasonableness of the assumptions made
by the Board of Directors and the Managing Director.
The procedures mainly include a validation that the
Esef report has been prepared in a valid XHTML format
and a reconciliation of the Esef report with the audited
annual accounts and consolidated accounts.
Furthermore, the procedures also include an assess-
ment of whether the consolidated statement of financial
performance, financial position, changes in equity, cash
flow and disclosures in the Esef report have been
marked with iXBRL in accordance with what follows
from the Esef regulation.
The auditor’s examination of the corporate
governance statement
The Board of Directors is responsible for that the corpo-
rate governance statement on pages 60–66 has been
prepared in accordance with the Annual Accounts Act.
Our examination of the corporate governance state-
ment is conducted in accordance with FAR´s standard
RevR 16 The auditor´s examination of the corporate
governance statement. This means that our examina-
tion of the corporate governance statement is different
and substantially less in scope than an audit conducted
in accordance with International Standards on Auditing
and generally accepted auditing standards in Sweden.
We believe that the examination has provided us with
sufficient basis for our opinions.
A corporate governance statement has been pre-
pared. Disclosures in accordance with chapter 6 section
6 the second paragraph points 2-6 of the Annual
Accounts Act and chapter 7 section 31 the second para-
graph the same law are consistent with the other parts
of the annual accounts and consolidated accounts and
are in accordance with the Annual Accounts Act.
KPMG AB, Box 382, 101 27, Stockholm, was appointed
auditor of Eltel AB (publ) by the general meeting of the
shareholders on the 14 May 2024. KPMG AB or auditors
operating at KPMG AB have been the company’s auditor
since 2018.
Stockholm 25 March 2025
KPMG AB
Fredrik Westin
Authorized Public Accountant
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Other
Annual Report 2024 109
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The Eltel share
Share capital
At the end of the financial period 2024, the total number
of shares amounts to 160,585,581 divided into
156,736,781 ordinary shares with one vote per share
and 3,848,800 C shares with 1/10 vote per share.
The share capital entered in the trade register per 31
December 2024 is EUR 161,950,203.
Shareholders
As per 31 December 2024, Eltel has 3,321 shareholders.
The four largest shareholders of Eltel AB are Solero
Luxco S.á.r.l. 16.4% (a company controlled by Triton
Funds), Wipunen Varainhallinta Oy 14.9%, the Fourth
Swedish National Pension Fund (AP4) 9.6%, and
Heikintorppa Oy 8.7%. The four largest shareholders
referred above together represent 49.5% of the votes
in the company.
Price development and trading volumes
Eltel share price declined slightly in 2024. The closing
price on 30 December 2024 was SEK 6.44, a decline of
3.7% over the year. The highest closing price was SEK
7.86 on 19 June 2024 and the lowest was SEK 6.28 on
17 December 2024. At year-end, Eltel’s market capitali-
zation was SEK 1.034 million. The trading volume on
Nasdaq Stockholm was 7,736,512 shares, equivalent to
a turnover of SEK 53,955,674 Eltel shares were mainly
traded on Nasdaq Stockholm, 90.3% and Cboe, 7.6% and
in small volumes in other marketplaces, 1.9%.
The dividend policy
A dividend policy has been adopted whereby 50% of
Eltel’s consolidated net profit shall be paid in dividends
over time (with flexibility in relation to the pay-out ratio).
Analysts
Eltel is followed by ABG Sundal Collier and Inderes.
Eltel’s share is listed on the OMX Stockholm
Small Cap, under the trading symbol “ELTEL”.
Eltel share in 2024 (SEK)
0
75,000
150,000
225,000
300,000
0
3
6
9
12
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
SEK Volume (000s)
Eltel VolumeOMX Stockholm PI
Source: Modular Finance AB.
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Eltel’s top 10 shareholders on 31 December 2024
Shareholders Number of shares % of shares % of votes
Solero Luxco S.á.r.l.¹
)
25,683,845 16.0 16.4
Wipunen Varainhallinta Oy 23,450,000 14.6 14.9
Fourth Swedish National Pension Fund 15,027,060 9.4 9.6
Heikintorppa Oy 13,600,000 8.5 8.7
Mariatorp Oy 10,000,000 6.2 6.4
Mandatum Life Insurance Company 8,255,692 5.1 5.3
Fidelity International (FIL) 7,060,381 4.4 4.5
Etola Group 7,050,000 4.4 4.5
Mandatum Fund Management 6,005,000 3.7 3.8
SEB Fonder 2,299,705 1.4 1.5
Total 116,135,478 72.3 73.9
Other shareholders 40,601,303 25.3 25.8
Total ordinary shares in Eltel AB 156,736,781
Total C shares in Eltel AB²
)
3,848,800 2.4 0.2
Total shares in Eltel AB 160,585,581 100.0 100.0
1)
Company controlled by Triton Funds.
2)
The C shares are held by Eltel.
Ownership structure on 31 December 2024
Holding size
Number of
known owners
Number of
shares % of capital % of votes
Share of
known owners
1–1,000 2,426 594,077 0.4 0.4 73.1
1,001–5,000 578 1,404,798 0.9 0.9 17.4
5,001–10,000 120 890,621 0.6 0.6 3.6
10,001–50,000 128 2,889,184 1.8 1.8 3.9
50,001–100,000 16 1,281,583 0.8 0.8 0.5
100,001–500,000 29 7,479,059 4.7 4.8 0.9
500,001–1,000,000 6 4,183,836 2.6 2.7 0.2
1,000,001–5,000,000 9 17,129,640 10.7 8.7 0.3
5,000,001–10,000,000 5 38,371,073 23.9 24.4 0.2
10,000,001– 4 77,760,905 48.4 49.5 0.1
Unknown holding size 0 8,600,805 5.4 5.5 0.0
Total 3,321 160,585,581 100.0 100.0 100.0
Geographic distribution of shareholders 31 Dec 2024
Finland 52.1%
Sweden 20.7%
Luxembourg 16.0%
United Kingdom 4.4%
United States 1.2%
Other 0.1%
Unknown country 5.4%
Source: Monitor by Modular Finance AB.
Source: Modular Finance AB.
Ownership by sector on 31 Dec 2024
Investment & PE 39.1%
Pension & Insurance 18.9%
Private individuals 11.9%
Fund company 9.9%
Treasury shares 2.4%
State, municipal & county 0.1%
Other 12.4%
Unknown owner type 5.4%
Source: Modular Finance AB.
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Five-year summary
Condensed consolidated income statement
EUR million 2024 2023 2022 2021 2020
Net sales 828.7 850.1 823.6 812.6 938.0
Cost of sales -736.8 -774.5 -748.9 -724.5 -838.6
Gross profit 91.8 75.6 74.7 88.1 99.4
Other income 4.3 3.5 0.9 5.5 22.5
Expenses
-114.1 -84.4 -77.6 -79.1 -96.9
Share of profit/loss of joint ventures – – – – -0.2
Operating result (EBIT) -18.0 -5.3 -2.0 14.5 24.8
Financial expenses, net -12.7 -12.7 -9.5 -5.8 -9.8
Result before taxes -30.7 -17.9 -11.4 8.7 14.9
Taxes 1.6 10.3 -3.5 -3.7 -9.7
Net result -29.1 -7.6 -14.9 4.9 5.3
Key figures
EUR million 2024 2023 2022 2021 2020
Net sales 828.7 850.1 823.6 812.6 938.0
Net sales growth, % -2.5 3.2 1.4 -13.4 -13.8
Adjusted EBITDA 45.2 31.8 27.8 46.6 48.9
Adjusted EBITA 10.5 1.7 -1.9 14.8 11.4
Adjusted EBITA margin, % 1.3 0.2 -0.2 1.8 1.2
Adjusted EBITA, segments 21.1 11.8 9.9 24.2 22.9
Adjusted EBITA margin, %, segments 2.7 1.5 1.4 3.3 2.8
Items affecting comparability
1)
-28.5 -7.0 – -0.1 14.1
EBITDA 16.7 24.8 27.8 46.5 63.0
Operating result (EBIT) -18.0 -5.3 -2.0 14.5 24.8
EBIT margin, % -2.2 -0.6 -0.2 1.8 2.6
Result before taxes -30.7 -17.9 -11.4 8.7 14.9
Net result for the year -29.1 -7.6 -14.9 4.9 5.3
Earnings per share EUR, basic and diluted -0.21 -0.07 -0.10 0.03 0.03
Return on equity (ROE), %
2),3)
-16.0 -3.7 -6.8 2.2 2.4
Return on operative capital employed (ROCE), %
2)
102.4 5.3 -3.5 23.6 13.0
Leverage ratio
2)
2.5 3.2 4.5 2.6 2.0
Net working capital -61.3 -49.8 -21.0 -16.0 -25.1
Number of personnel, average 4,550 5,024 5,053 5,176 6,196
1)
Includes restructuring costs, gains and losses from divestment of businesses and from valuation of divested assets as held for sale.
2)
Calculated on a rolling 12-month basis.
3)
Assets and liabilities held for sale are not included (in 2020 German High Voltage business).
Cash flow from operating activities
EUR million 2024 2023 2022 2021 2020
Operating result (EBIT) -18.0 -5.3 -2.0 14.5 24.8
Depreciation and amortization 34.7 30.1 29.8 32.1 38.2
EBITDA 16.7 24.8 27.8 46.5 63.0
Changes in working capital -2.5 29.4 4.6 -10.1 16.6
Total financial expenses and taxes -13.3 -15.3 -12.5 -6.7 -13.9
Gain/loss on sales of assets and business 22.8 -0.1 -0.1 -2.6 -14.7
Other 3.7 -4.9 -3.4 -4.8 -1.6
Cash flow from operating activities 27.5 34.0 16.4 22.3 49.4
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Quarterly figures
Quarterly key financial figures for the Group
2024 2023
EUR million Full-year Oct–Dec Jul–Sep Apr–Jun Jan–Mar Full-year Oct–Dec Jul–Sep Apr–Jun Jan–Mar
Net sales 828.7 226.1 210.3 216.0 176.3 850.1 240.2 213.4 208.1 188.4
Net sales growth, % -2.5 -5.9 -1.4 3.8 -6.4 3.2 7.2 3.1 -0.2 2.4
Adjusted EBITDA 45.2 14.2 19.0 8.4 3.6 31.8 10.2 13.6 5.6 2.4
Adjusted EBITA 10.5 5.7 8.2 0.5 -4.0 1.7 2.8 5.9 -1.5 -5.5
Adjusted EBITA margin, % 1.3 2.5 3.9 0.2 -2.3 0.2 1.2 2.8 -0.7 -2.9
Adjusted EBITA, segments 21.1 8.6 9.8 3.6 -0.8 11.8 5.0 6.8 2.1 -2.1
Adjusted EBITA margin, %, segments 2.7 0.0 4.9 1.8 -0.5 1.5 2.3 3.5 1.1 -1.2
Items affecting comparability
1)
-28.5 -1.6 -3.8 0.0 -23.2 -7.0 0.1 -0.9 – -6.1
EBITDA 16.7 12.6 15.2 8.5 -19.6 24.8 10.3 12.6 5.6 -3.7
Operating result (EBIT) -18.0 4.2 4.5 0.5 -27.2 -5.3 2.9 5.0 -1.5 -11.6
EBIT margin, % -2.2 1.9 2.1 0.2 -15.4 -0.6 1.2 2.3 -0.7 -6.2
Result before taxes -30.7 0.9 0.8 -2.3 -30.2 -17.9 -0.8 1.9 -4.5 -14.5
Net result for the period -29.1 3.9 0.3 -2.7 -30.5 -7.6 10.3 1.8 -4.6 -15.1
Earnings per share EUR, basic -0.21 0.02 -0.01 -0.02 -0.20 -0.07 0.06 0.00 -0.03 -0.10
Earnings per share EUR, diluted -0.21 0.02 -0.01 -0.02 -0.20 -0.07 0.06 0.00 -0.03 -0.10
Return on equity (ROE), %
2)
-16.0 -16.0 -12.9 -12.2 -12.8 -3.7 -3.7 -12.3 -13.5 -12.2
Return on operative capital employed (ROCE), %
2)
102.4 102.4 18.7 14.3 9.7 5.3 5.3 -7.1 -11.7 -7.9
Leverage ratio
2)
2.5 2.5 3.5 3.6 3.5 3.2 3.2 5.4 6.2 6.3
Net working capital -61.3 -61.3 -33.5 -54.3 -59.0 -49.8 -49.8 -15.5 -2.4 -5.4
Number of personnel FTE, average 4,550 4,226 4,372 4,717 4,885 5,024 4,948 5,004 5,041 5,103
1)
Items affecting comparability include costs related to divestments, restructuring and resizing expenses.
2)
Calculated on a rolling 12-month basis.
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Quarterly key financial figures for the Group
2024 2023
EUR million Full-year Oct–Dec Jul–Sep Apr–Jun Jan–Mar Full-year Oct–Dec Jul–Sep Apr–Jun Jan–Mar
NET SALES
Finland 357.7 101.4 101.3 92.6 62.4 344.5 98.3 96.6 85.2 64.3
Sweden 211.8 59.5 51.6 50.9 49.8 198.5 56.6 42.2 50.8 48.8
Norway 114.9 29.8 27.8 31.6 25.7 130.1 33.8 31.6 32.4 32.2
Denmark 92.0 26.0 19.6 25.3 21.1 93.0 28.2 21.6 21.4 21.8
Sum segments 776.5 216.6 200.4 200.4 159.1 766.1 216.9 192.1 189.9 167.2
Other business 61.9 12.9 12.2 18.1 18.7 93.7 26.9 23.8 20.3 22.7
Eliminations between segments -9.7 -3.4 -2.3 -2.5 -1.5 -9.7 -3.5 -2.5 -2.1 -1.5
Net sales, total 828.7 226.1 210.3 216.0 176.3 850.1 240.2 213.4 208.1 188.4
ADJUSTED EBITA
Finland 15.7 6.3 7.3 2.4 -0.3 6.5 3.2 4.8 0.8 -2.3
% of net sales 4.4% 6.2% 7.2% 2.6% -0.5% 1.9% 3.3% 5.0% 1.0% -3.6%
Sweden 6.1 2.5 2.2 1.0 0.5 2.9 1.3 0.2 0.9 0.5
% of net sales 2.9% 4.2% 4.2% 2.0% 1.0% 1.5% 2.3% 0.4% 1.9% 1.0%
Norway -5.7 -2.3 -0.7 -1.0 -1.7 -2.5 -0.8 0.7 -0.8 -1.6
% of net sales -4.9% -7.7% -2.5% -3.1% -6.5% -1.9% -2.3% 2.3% -2.5% -4.9%
Denmark 5.0 2.1 1.0 1.2 0.7 4.9 1.3 1.1 1.1 1.3
% of net sales 5.4% 8.1% 5.2% 4.6% 3.4% 5.2% 4.6% 5.2% 5.3% 6.1%
Sum segments 21.1 8.6 9.8 3.6 -0.8 11.8 5.0 6.8 2.1 -2.1
% of net sales 2.7% 4.0% 4.9% 1.8% -0.5% 1.5% 2.3% 3.5% 1.1% -1.2%
Other business 0.7 1.1 0.5 -0.4 -0.5 -1.0 0.5 0.3 -0.9 -1.0
% of net sales 1.1% 8.5% 4.1% -2.4% -2.6% -1.1% 2.0% 1.4% -4.5% -4.2%
Group functions -11.3 -3.9 -2.0 -2.6 -2.8 -9.1 -2.8 -1.2 -2.7 -2.4
Adjusted EBITA 10.5 5.7 8.2 0.5 -4.0 1.7 2.8 5.9 -1.5 -5.5
% of net sales 1.3% 2.5% 3.9% 0.2% -2.3% 0.2% 1.2% 2.8% -0.7% -2.9%
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Definitions and key ratios
Eltel applies ESMA’s (European Securities and Markets Authority) guidelines for alternative performance measures
(APM). In addition to the financial measures defined in IFRS, certain key figures, which qualify as alternative perfor-
mance measures (APMs) are presented to reflect the underlying business performance, facilitate analysis of the
Group’s development as followed by Group Management and enhance comparability from period to period. The
definition of these key figures is presented below and relevant information enabling reconciliations to IFRS measures
can be found in connection with relevant parts of the report. These APMs should not be considered as a substitute
for measures in accordance with IFRS.
IFRS Key ratios
Alternative performance measures (APMs)
KEY FIGURE
KEY FIGURE REFERENCEDEFINITION AND REASON FOR USE
KEY FIGURE REFERENCEDEFINITION AND REASON FOR USE
Earnings per share (EPS)
Net result attributable to equity holders of the parent – interest on hybrid bond
Weighted average number of ordinary shares
Adjusted
EBITA and -margin
Adjusted EBITA and -margin, % are used to measure business and
segment profitability. Income statement items below adjusted EBITA
are not allocated to segments.
Note 3: segment
results
Adjusted EBITA: Operating result before acquisition-related amortizations
and items affecting comparability
Adjusted EBITA margin, %:
Adjusted EBITA x 100
Net sales
Adjusted EBITA and -margin, % for segments represent the sum of
segments: Finland, Sweden, Norway and Denmark.
Items affecting
comparability
These include capital gains and/or losses and transaction costs related
to divestments and acquisitions, restructuring and resizing expenses and
other items that according to Eltel’s management’s assessment are not
related to normal business operations.
Note 3: segment
results
EBITDA and
adjusted EBITDA
EBITDA is operating result (EBIT) before depreciations and amortizations.
Adjusted EBITDA excludes items affecting comparability. Adjusted
EBITDA is used in calculating the leverage ratio
Five-year summary:
Cash flow from
operating activities
EBIT margin Operating result (EBIT) and -margin, % are used to measure profitability
before interest and taxes.
Income statement
EBIT margin, %:
EBIT x 100
Net sales
Return on
equity (ROE), %
Return on equity (ROE), % represents the rate of return that shareholders
receive on their investments.
Income statement
and balance sheet
Return on equity (ROE), %
1)
:
Net result x 100
Total equity (average over the
reporting period)
Operative capital
employed and
Return on operative
capital employed
(ROCE), %
Operative capital employed is the amount of net operating assets the
business uses in its operations.
Note 3: Net working
capital and operative
capital employed
Return on operative capital employed (ROCE), % represents how
effectively total net operating assets are used in order to generate return
in the operating business.
Operative capital employed: Net working capital + Intangible assets
excluding goodwill and acquisition-related
allocations + Property, plant and
equipment and Right-of-use assets
Return on operative capital
employed (ROCE), %
1)
:
Adjusted EBITA x 100
Operative capital employed
(average over the reporting period)
Net debt and
leverage ratio
Net debt represents Eltel’s indebtedness. It is used to monitor capital
structure and financial capacity. It is also used in calculating the leverage
ratio. The leverage ratio is defined as covenant in Eltel’s financing agree-
ment.
Net debt: Note 14.4
EBITDA: five-year
summary, cash flow
from operating
activities
Net debt: Interest-bearing debt - cash and cash equivalents
Leverage ratio
1)
:
Net debt
Adjusted EBITDA
Net working
capital
Net working capital is used to follow the amount of capital needed for
the business to operate. Used also as a factor to calculate operative
capital employed.
Note 3: Net working
capital and operative
capital employed
Net working capital : Net of inventories, trade and other receiva-
bles, provisions, advances received and
trade and other payables, excluding items
in these balance sheet items that are not
considered to form part of operative work-
ing capital: derivative valuations and
income tax liabilities.
Committed
order backlog
Committed order backlog is the total value of committed orders received
but not yet recognized as sales. It does not include frame agreements
unless a binding purchase order has been received. It is the best measure
of unsatisfied performance obligations according to IFRS 15 Revenue
from contracts with customer.
Note 4: Committed
order backlog by
business and
service type
1)
Calculated on a rolling 12 months basis.
Annual Report 2024 115
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Financial calendar 2024–2025
Annual General Meeting 2025 13 May 2025
Interim report January–March 2025 30 April 2025
Half-year report 2025 24 July 2025
Interim report January–September 2025 30 October 2025
Full-year report 2025 February 2026
Contact information
Tarja Leikas
CFO
Phone: +358 40 730 77 62
E-mail: tarja.leikas@eltelnetworks.com
Alexandra Kärnlund
Director, Communications
Phone: +46 70 91 00 903
E-mail: alexandra.karnlund@eltelnetworks.com
Eltel AB
Visiting address:
Adolfsbergsvägen 13, Bromma
POB 126 23
SE-112 92
Stockholm
Sweden
Telephone: +46 8 585 376 00
E-mail: info.sweden@eltelnetworks.com
www.eltelgroup.com
Production: Sthlm Kommunikation & IR and Eltel.
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