Slide 1: Instalco Q3 presentation
Instalco Q3 presentation 9 November 2021 1
Slide 2: This is Instalco
This is Instalco • A leading Nordic installation group within heating and plumbing, electrical, ventilation, cooling, industry and technical consulting • 100 subsidiaries – highly specialised local companies • 4 600 employees • Highly decentralised structure • Supported by a small central organisati
Slide 3: Milestone of 100 subsidiaries
Milestone of 100 subsidiaries • 100 subsidiaries in three countries • Intense journey since 2014 • Creating synergies • Continued acquisition agenda 3
Slide 4: Changes in the management team
Changes in the management team 4
Slide 5: Key financials, LTM
Key financials, LTM Net sales, million SEK Order backlog, million SEK 8.319 6.494 Adjusted EBITA, million SEK Adjusted EBITA margin, % 708 8,5 No of employees (30 September) Acquired annual sales, million SEK 4,597 1.420 5
Slide 6: Q3 2021 Highlights
Q3 2021 Highlights • Stable quarter in overall results and Key financials Q3 2021 margin Net sales • Still effected by pandemic disturbances • Net sales growth 21.0% • Organic growth, 2.2% SEK 1,989 million • Segment Sweden strong – segment Rest EBITA 171 of Nordic below desired level • Six acquisit
Slide 7: Net sales
Net sales • Net sales growth (SEK million) 18,8% 2,2% 0,1% 7
Slide 8: EBITA
EBITA 250 10% 9% • Adj. EBITA (SEK million) and adj. EBITA margin (%) 200 8% 7% 150 6% 5% 100 4% 3% 50 2% 1% 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2021 Adjusted EBITA Adjusted EBITA margin 8
Slide 9: Order backlog
Order backlog 8000 • Growth of 3.7% 7000 (compared with Q3 2020) 6000 • Continued stable order backlog ratio of 0.78x 5000 (relative to 12 months rolling net sales) 4000 3000 2000 1000 0 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 9
Slide 10: Segment Sweden
Segment Sweden • Strong and solid results by the Swedish Key financials Q3 2021 operations Net sales • Stable demand for technical installations • Organic growth 2.9% • Net sales growth 24.0% SEK 1,553 million EBITA EBITA margin SEK 135 million 8.7 % Order backlog SEK 5,240 million 10
Slide 11: Segment Rest of Nordic
Segment Rest of Nordic • Net sales growth 11.5% Key financials Q3 2021 • Still effected by the pandemic – Net sales mainly in Finland • Starting to see results from action plan for higher margins in Norway SEK 436 million • Still result below desired level EBITA EBITA margin SEK 15 million 3.5 % Ord
Slide 12: Acquisitions 2021
Acquisitions 2021 Company Discipline Segment Est. Sales (SEKm) 1 Q1 JB Elektro Electrical Rest of Nordic 40 2 Q1 Lincom Electrical Sweden 33 3 Q1 Nässjö Teknikprojektering Technichal consulting Sweden 15 4 Q1 Stockholm Luftkompetens Ventilation Sweden 85 5 Q1 Kempes El Electrical Sweden 85 6 Q2 Inva
Slide 13: Acquisitions 2021 cont.
Acquisitions 2021 cont. 14 Q2 Nihlén Elmontage Electrical Sweden 80 15 Q2 Industriprodukter Electrical Sweden 20 16 Q3 Klimateknikk Ventilation Rest of Nordic 40 17 Q3 Forsséns Elektriska Electrical Sweden 65 18 Q3 App-Startup Industry Sweden 97 19 Q3 PeMi Ventillation & Montage Ventilation Sweden 3
Slide 14: Financial targets and dividend policy
Financial targets and dividend policy Area Target Comment Status • Average sales growth should be at least 10% per year over a Growth business cycle 23.7% YTD • Growth will take place both organically and through acquisitions Margin • Instalco aims to deliver an adjusted EBITA margin of 8.0% 8.2% YT
Slide 15: Technical consulting
CEO´s theme Technical consulting 15
Slide 16: This is Business Area Technical consulting
This is Business Area Technical consulting • Engineers in the areas of electrical, heating & plumbing, ventilation, energy, industrial and fire protection. • Project planning and design • Studies and inspection • Coordination of installation work • Environmental coordination • Risk management • Cost
Slide 17: Intec organisation
Intec organisation • 11 companies in 20 cities in Sweden Luleå • 230 coworkers • 400 clients • 1200 assignments (YTD) Sundsvall • Customers: Government agencies, local authorities & Falun Borlänge Avesta regions, installation companies, property Uppsala owners, industrial companies, energy Karlstad
Slide 18: Why Technical consulting
Why Technical consulting Early involvement in projects Sustainable and energy- efficient solutions Closer to the customer Theory and Practice High margins 18
Slide 19: CEO's comments: Short term issues, Long term drivers
CEO´s comments Short term issues Long term drivers • Pandemic • Technological development • Increased raw material prices • Sustainability, environmental awareness and energy efficiency • Shortage of material and delivery delays • Possible shortage of cement • Urbanisation and housing shortage • Inv
Slide 20: Summary
Summary Stable quarter Effected by the pandemic, particulary in Finland and Norway Return to more normal circumstances Good conditions for project design, installation and service 20
Slide 21: Q&A - session
Q&A - session 21