Slide 1: Instalco Q3 presentation
Instalco Q3 presentation 27 October 2023 1
Slide 2: This is Instalco
This is Instalco A leading Nordic group within heating and plumbing, electrical, ventilation, industry and technical consulting Project planning, installation, service and maintenance of systems installed at properties and facilities Highly decentralised structure >130 subsidiaries – specialised loc
Slide 3: Key financials, LTM
Key financials, LTM Net sales, million SEK Order backlog, million SEK 13,996 9,201 EBITA, million SEK EBITA margin, % 1,067 7.6 Cash flow from operations, million SEK Acquired annual sales, million SEK 943 1,279 3
Slide 4: Q3 Highlights
Q3 Highlights • Sales growth 18.7% Key financials Q3 2023 – Organic growth 3.0% Net sales • Improved EBITA margin • Significantly improved cash flow at SEK 119 (16) million SEK 3,310 million • Continued solid order backlog EBITA • One acquisition SEK 246 million EBITA margin 7.4 % 4
Slide 5: Net sales development (SEK million)
Net sales development (SEK million) • Net sales growth 18.7% to 3.0% 1% SEK 3,310 (2,788) million 15.7% -1% • Organic growth of 3.0%, mostly driven by Rest of Nordic • Acquired growth of 15.7%, an effect of the successful M&A agenda 5
Slide 6: EBITA development (SEK million and margin %)
EBITA development (SEK million and margin %) 350 10% • EBITA increased by 22.7% to SEK 246 (201) million 300 9% • EBITA margin 7.4% (7.2) 7.2% 7.4% 8% 250 • Good development, typical 7% seasonality effects 200 6% 5% 150 4% 100 3% 2% 50 1% 0 0% Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022
Slide 7: Order backlog development (SEK million)
Order backlog development (SEK million) • YoY growth of 12.8%, to SEK 10,000 9,201 (8,158) million 9,000 • All time high – solid order 8,000 backlog to build on 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023
Slide 8: Segment Sweden Q3 development
Segment Sweden Q3 development Key financials Q3 2023 • Stable development with good profitability Net sales • Continued high order backlog • Net sales growth 5.2% to SEK 2,213 (2,103) million SEK 2,213 million • Organic growth essentially flat EBITA EBITA margin • Acquired growth of 7.0% SEK 177 mil
Slide 9: Segment Rest of Nordic Q3 development
Segment Rest of Nordic Q3 development • Net sales growth 60.1% to SEK 1,098 Key financials Q3 2023 (686) million • Organic growth 14.9% Net sales • Acquired growth of 42.1% • Significantly improved profitability SEK 1,098 million • EBITA grew over 130% to SEK 68 (29) million, and EBITA margin improv
Slide 10: Acquisitions 2023
Acquisitions 2023 Company Discipline Segment Est. Sales (SEKm) 1 Q1 Telepatrol Oy Electrical Rest of Nordic 48 2 Q1 Rörprodukter Montage Sverige AB Heating & Plumbing Sweden 24 3 Q1 Lysteknikk Entreprenør AS Electrical Rest of Nordic 325 4 Q1 Processus AB Industry Sweden 193 5 Q1 SMT Norrbotten AB I
Slide 11: Acquisitions: Expansion in Southern Norway
Acqusitions: Expansion in Southern Norway • Acquisition of Norwegian company URD Klima Sandnes AS • Offers solutions within ventilation, heating- and cooling systems for both new construction and renovation • Has demonstrated strong results over a long period of time and has a historically proven ab
Slide 12: Project: Västerås' new emergency hospital
Project: Västerås’ new emergency hospital • Three Instalco companies awarded a joint assignment regarding project design for Region Västmanlands’ new emergency hospital • Instair and Sprinklerbolaget, in close collaboration Intec work through partnering with the project design for ventilation and sp
Slide 13: Resilience
MN) TT) CEO's theme Resilience
Slide 14: Targeting attractive mid-size projects
Targeting attractive mid-size projects Large projects (SEK >75m), e.g.: Key success factors: • Stadiums • Price Large projects • Shopping malls • Financial strength • Infrastructure • Organisation Mid-size projects (SEK 1-75m), e.g.: Key success factors: • Public buildings • Quality • Residential bu
Slide 15: Decentralized model keeps us close to customers
Decentralized model keeps us close to customers Local responsibility Customers and sales Production Local units Employees Profit responsibility Multidisciplinary projects and cross-selling Cooperation Spreading best practice Talent development Joint responsibility Resource sharing
Slide 16: Our strategic focus areas
Our strategic focus areas Rest of Industry Technical Nordics discipline Consulting 16
Slide 17: A more diversified business
A more diversified business SALES PER CUSTOMER GROUP FY 2020 SALES PER CUSTOMER GROUP FY2022 Construction companies 63% Construction companies 46% Industrial companies 8% Industrial companies 22% Property companies 11% Property companies 9% Public sector 8% Public sector 8% Other 10% Other 15% NET S
Slide 18: Installation less cyclical than construction
Installation less cyclical than construction 18
Slide 19: Long-term market drivers
Long-term market drivers Energy efficiency Housing and the green shortage transition Digitalization and Aging building increasing building stock complexity 19
Slide 20: Summary
Summary • Strong Q3 with improved profitability • Solid order backlog • Significant advances for the Rest of Nordic segment • A more diversified business, supported by long-term mega trends 20
Slide 21: Q&A - session
Q&A - session Climate-smart, sustainable installations enable us to lower our energy consumption.