Slide 1: Q2 2018 presentation
DRAFT Q2 2018 presentation 23 August 2018
Slide 2: Today’s presenters
Today’s presenters Per Sjöstrand Lotta Sjögren Group CEO Group CFO 1
Slide 3: This is Instalco
This is Instalco A leading multi-disciplinary technical installation company active in the Nordic region Focus on mid-size projects Decentralised structure – “The Instalco model” Key financials (LTM) Net sales Order backlog SEK 3,797 million SEK 3,875 million Adjusted EBITA Adjusted EBITA marg
Slide 4: Q2 2018 Highlights
Q2 2018 Highlights Sales and profitability • Strong growth and profitability Net sales • Net sales growth 50.2% SEK 1,174 million • Organic growth 14.4% Adjusted EBITA • Stable cash flow SEK 125 million SEK 107 million • 4 companies acquired with combined assessed Adjusted EBITA margin annual sales
Slide 5: Group development – Net sales and EBITA
Group development – Net sales and EBITA Net sales growth (SEK million) Adj. EBITA (SEK million) and adj. EBITA margin (%) 120 12% 100 10% 14.4% 1% 38.3% 80 8% 60 6% 101 107 40 4% 69 72 61 20 45 48 2% 0 0% Q4 Q1 Q2 Q3 Q4 Q1 Q2 2016 2017 2017 2017 2017 2018 2018 4
Slide 6: Group development – Order backlog
Group development – Order backlog Order backlog (SEK million) • Growth of 55.2% 4 500 • Continued high order 4 000 backlog ratio of 1x 3 500 (relative to 12 months 3 000 rolling net sales) 2 500 2 000 3 875 3 736 1 500 3 194 2 496 2 611 1 000 1 999 2 189 500 0 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017
Slide 7: Examples of projects in Q2
Examples of projects in Q2 Swedish-Norwegian collaboration Solar energy in unique wooden building Elkontakt (Sweden) and Vito (Norway) in Vallacom Linköping collaboration Installation of solar panels on the façade Electrical and sprinkler system installations and roof of round wooden buildin
Slide 8: Segment development - Sweden
Segment development - Sweden • Continued strong demand Key financials Q2 2018 • All time high margin Net sales • Net sales growth of 42.3% SEK 901 million • Organic growth of 14.0% EBITA EBITA margin • Order backlog growth of 46.7% whereof SEK 105 million 11.6 % 3.9% in comparable units Order backlo
Slide 9: Segment development – Rest of Nordics
Segment development – Rest of Nordics • Continued high demand Key financials Q2 2018 • Margin decrease due to one loss- Net sales making project in Norway – ends in 2018 SEK 273 million • Net sales growth of 83.2% EBITA EBITA margin • Organic growth of 16.2% SEK 11 million 4.0 % • Order backlog grow
Slide 10: Examples of new companies that support Instalco’s growth strategy
Examples of new companies that support Instalco’s growth strategy APC Elinstallatören LVI-Urakointi Paavola Offer services within electrical installations, Providers of heating, plumbing and service and maintenance ventilation installations Strengthens Instalco’s electricity operations Opera
Slide 11: Acquisitions 2018
Acquisitions 2018 Acquisition Discipline Market / Region Estimated yearly sales Acquired (SEKm) Q1 Trel AB Electrical Sweden - North 75 Jan Sprinklerbolaget i Stockholm AB Sprinkler Sweden 77 Jan Vent och Värmeteknik VVT AB Ventilation Sweden - South 18 Jan VVS-Kraft Teknikservice AB Heating & Plumb
Slide 12: Financial targets and dividend policy
Financial targets and dividend policy Area Target Comment Adjusted EBITA pro forma1 shall reach SEK 450m not later than Acquired sales and EBITA in line the end of 2019 with plan Growth Average yearly organic sales of The average organic sales growth shall amount to 5% over time 14% since 20
Slide 13: Looking ahead
Looking ahead Favourable market and demand reflected in record strong order backlog Increasing amount of small to mid sized projects in order backlog provides low risk and good pricing Low exposure to housing market Increased raw material prices impact material cost, however cost plus system
Slide 14: Summary
Summary Q2 • Strong growth, profitability and cash flow • Acquisition execution according to plan Looking ahead • Strong market reflected in backlog ratio >1x • Attractive acquisition pipeline • Good progress towards EBITA target 13
Slide 15: The Rolling Stones – Time is on my side
THE ROLLING STONES TIME IS ON MY SIDE b/w CONGRATULATIONS INSTALCO +
Slide 16: INSTALCO +5
INSTALCO +5
Slide 17: APPENDIX
APPENDIX 16
Slide 18: Quarterly data
Quarterly data SEKm 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 Net sales 474 599 556 777 689 781 708 935 979 1,174 Growth, % 95.8% 97.1% 65.6% 59.7% 45.2% 30.5% 27.3% 20.3% 42.2% 50.2% EBITDA 23 49 12 60 38 62 54 96 41 102 EBITDA margin, % 4.9% 8.2% 2.2% 7.7% 5.5