Eltel shows strong improvement of performance in 2013

· Group sales stable while focus on margins
· Important orders booked both in Europe and Africa
· All business sectors show performance improvements
· EBITA grows by 13.7% in 2013Focus on margin improvement resulted in a very good development of EBITA in 2013. Eltel’s markets continued to support a stable demand for our Infranet services. Important contracts were booked during the year both in Europe and Africa,” comments Axel Hjärne, President and CEO of Eltel Group Corporation.

Eltel sales stayed at a stable level in 2013. Sales totalled EUR 1,153.7 million, an increase of 0.4% compared to the previous year (1,149.0). The growth was achieved organically. The demand for telecom services continued at a stable level, while the electricity sector is showing growth. In 2013, EBITA, including one-off exceptional items, was EUR 52.4 million (46.1), showing a 13.7% improvement from 2012. The number of employees at the end of 2013 was 8,459 – a 0.4% decrease compared to the previous year (8,495).

Balanced development across sectors – overheads and net working capital improving

“The focus in 2013 was on development of quality and efficiency in our operations. The progress was very good. Eltel continued to boost the specialization and implementation of best practices. As a result, the fixed overhead was reduced from 2012. Systematic work with internal and customer interface processes resulted in the reduction of net working capital in absolute terms. All of these factors contributed to a very good development in 2013,” remarks Axel, Hjärne, President and CEO of Eltel Group Corporation.

In terms of market development, the demand for Eltel’s Infranet services has continued to be very stable or has increased, depending on the sector. Several major orders were booked in Power transmission with grid companies in Sweden, Norway, Poland and Africa. In Zambia, Eltel has signed its largest contract ever at EUR 110 million. Power distribution completed a 600,000 smart metering project in Finland and won new service contracts in Sweden. In telecom, Eltel continued as a leading partner for the most important operators. In Norway, Eltel agreed to merge the telecom businesses with Sonnico Tele AS into a joint venture from beginning of 2015. Homeland Security & Aviation signed a new contract with Swedavia and Rail entered new contracts in the Nordic countries.

Eltel’s strengthened position brings momentum to 2014

“The year 2013 proved again that our customers trust Eltel’s capability to deliver great services in line with their needs. This gives a very good starting point for 2014. Our business concept, specialization and execution have proved successful and make a good match with the growing need to develop the Infranets of our society. As we are a technical services company, we shall thank all the employees at Eltel for their contribution as well as our customers and partners for a good collaboration in 2013. Our strategic goal is to continue our journey as the leading Infranet company in Europe, and we can see that the right elements are in place,” concludes Axel Hjärne.

For more information on Eltel Group Corporation, visit www.eltelnetworks.com

Further information:
Axel Hjärne, President and CEO
Email: axel.hjarne@eltelnetworks.com

Hannu Tynkkynen, Senior Vice President
Tel: +358 40 311 4503
Email: hannu.tynkkynen@eltelnetworks.com (%20hannu.tynkkynen@eltelnetworks.com)

Year 2013 figures are unaudited.

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Elin Otter +46 72 595 46 92

elin.otter@eltelnetworks.se