Slide 1: Q2 2019 presentation
DRAFT Q2 2019 presentation 23 August 2019
Slide 2: Today’s presenters
Today’s presenters Per Sjöstrand Lotta Sjögren Group CEO Group CFO 1
Slide 3: Instalco
Instalco A leading Nordic installation group in heating and plumbing, electrical, ventilation and cooling Strong local brands Highly decentralised structure Deliver high margins over time Key financials (LTM) Net sales Order backlog SEK 4,886 million SEK 4,508 million Adjusted EBITA Adjusted
Slide 4: The Nordic installation market
The Nordic installation market Sweden + Population increase and urbanization, low unemployment, investments in industry - Fewer permits granted for buildings Norway + Urbanization, lower unemployment, oil investments are increasing, increase in energy efficiency regulations - Higher interest rates,
Slide 5: Q2 2019 Highlights
Q2 2019 Highlights Sales and profitability • Robust growth and profitability Net sales • Net sales growth 19.8% SEK 1,406 million • Organic growth 2.7% Adjusted EBITA • Acquisitions of five high quality companies SEK 123 million • Stable cash flow 126 million Adjusted EBITA margin • Strong order bac
Slide 6: 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 (%) 140 12% 2,7% 0,6% 120 10% 16,5% 17.4% 100 8% 1218 80 1264 6% 60 120 123 979 1406 1174 107 101 92 4% 40 75 69 73 48 2% 20 0 0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2017 2017 2017 2018 2018
Slide 7: Group development – Order backlog
Group development – Order backlog Order backlog (SEK million) • Growth of 16.3% (compared to Q2 2018) 5 000 4 500 • Continued high order 4 000 backlog ratio of 0.9x 3 500 (relative to 12 months 3 000 rolling net sales) 2 500 4 391 4 508 2 000 3 736 3 875 3 724 4 063 1 500 3 194 2 611 1 000 500 0 Q3
Slide 8: Examples of projects in Q2
Examples of projects in Q2 Hemköp supermarket Västerås, Sweden Kiinteistö office building, Helsinki, Finland Five Instalco subsidiaries: Timab, DALAB, Multidisciplinary contract with two Instalco OTK, 3EL and Automationsbolaget subsidiaries: LVI Paavola and Sähkö-Buumi New supermarket in new b
Slide 9: Segment development - Sweden
Segment development - Sweden • Healthy demand in the market Key financials Q2 2019 • High rate of construction for schools, Net sales preschools and hospitals SEK 1,041 million • Net sales growth of 15.5% EBITA EBITA margin • Organic growth of 2.4% SEK 89 million 8.6 % • Order backlog growth of 16%
Slide 10: Segment development – Rest of Nordics
Segment development – Rest of Nordics • Continued high demand Key financials Q1 2019 • Organic growth of 3.8% Net sales • Net sales growth of 33.7% SEK 365 million • Order backlog growth of 17.3% EBITA EBITA margin • Strong improvement due to SEK 35million 9.7 % acquisitions, improved processes, mor
Slide 11: Examples of acquired companies in Q2
Examples of acquired companies in Q2 Moi Rør, Norway Bogesunds El & Tele, Sweden Acquisition of the heating & plumbing Bogesunds El & Tele AB specialised in company, Moi Rør AS electrical installations at residential property Kristiansand in Norway new geographic market Expansion of geograph
Slide 12: Examples of start ups
Examples of start ups Insta EL, Sweden Instamate, Sweden Start-up strategy as a supplement to the Instamate will run operations of the earlier main acquisition strategy. Start-ups acquired installation division of DynaMate includes setting up an entirely new owned by Scania company together with
Slide 13: Looking ahead
Looking ahead Stable installation market and continued high demand reflected in strong order backlog High rate of construction and renovations of schools, preschools, hospitals, offices and commercial real estate Increased focus on energy-efficient solutions and higher demands on sustainabilit
Slide 14: CFO comment’s
CFO comment’s In 2019 so far, acquired annual sales of more than SEK 1,000 million. Far exceeds the goal of SEK 600-800 million for a full year Eight acquisitions during the first half of 2019 including one division of a company High cash conversion enables us to mostly acquire companies witho
Slide 15: Towards the 2019 financial target
Towards the 2019 financial target Adjusted EBITA 500 450 400 350 300 LTM 250 200 150 100 50 0 2015 2016 2017 2018 2019 14
Slide 16: Financial targets and dividend policy
Financial targets and dividend policy Area Target Comment Average sales growth should be at least 10% per year over a business cycle Acquired sales and EBITA in line Growth with plan Growth will take place both organically and through acquisitions Margin Instalco aims to deliver an adjusted
Slide 17: Summary
Summary Q2 • Stable growth in sales and profitability • Continued stable market • Strong performance in Business Area Rest of Nordics • Confident in reaching our financial targets • Five acquisitions made after Q2 16
Slide 18: WAITS FOR NO ONE.
WAITS FOR NO ONE. ay INSTALCO 17
Slide 19: INSTALCO
INSTALCO
Slide 20: APPENDIX
APPENDIX 19
Slide 21: Quarterly data
Quarterly data SEKm 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 Q1 2019 Q2 2019 Net sales 556 777 689 781 708 935 979 1,174 998 1,264 1,218 1,406 Growth, % 65.6% 59.7% 45.2% 30.5% 27.3% 20.3% 42.2% 50.2% 40.8% 35,1% 24,4% 19,8% EBITDA 12 60 38 62 54 96 41 119 87 1