Instalco Ab · OMXSTO:INSTAL
Instalco Ab — Q1 2022 Earnings Presentation
22 slides from Instalco Ab's earnings presentation, May 5, 2022
Slide 1: Instalco Q1 presentation
Instalco Q1 presentation 5 May 2022 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 • 115 subsidiaries – highly specialised local companies • 5 000 employees • Highly decentralised structure • Supported by a small central organisati
Slide 3: Key financials, LTM
Key financials, LTM Net sales, million SEK Order backlog, million SEK 9.531 7.602 EBITA, million SEK EBITA margin, % 769 8,1 Cash flow, million SEK Acquired annual sales, million SEK 210 1.654 3
Slide 4: Q1 Highlights
Q1 Highlights • High cash flow 210 million Key financials Q1 2021 • Net sales growth 33.0% Net sales 2,583 • Organic growth 7.8% • Share split 5:1 SEK million • Good recovery in Other Nordic • Increased credit facility by SEK 500 EBITA 173 million • High sick leave beginning of quarter SEK million •
Slide 5: EBITDA, EBITA and Capital structure without adjustments
EBITDA, EBITA and Capital structure without adjustments 5
Slide 6: Earning levels EBITDA, EBITA och EBIT
Earning levels EBITDA, EBITA och EBIT • Trend in depreciations within property, plant and equipment is attributable to the growth within the Industry discipline • Trend in depreciations within acquisition-related intangible assets is attributable to a larger portion of depreciable assets related to
Slide 7: Net sales development (SEK million)
Net sales development (SEK million) • High activity in Q1, net sales 7,8% -0,2% 25,4% growth 33.0% to SEK 2,583 (1,942) million • Acquired growth of 25.4%, an effect of the successful M&A agenda • Organic growth of 7.8%, a strong proof of the synergies, collaboration and cross- selling concept 7
Slide 8: EBITA development (SEK million and margin %)
EBITA development (SEK million and margin %) 250 12% • EBITA 173 million • EBITA margin 6,7% 10% 200 8% 150 6% 100 4% 50 2% 0 0% Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 EBITA EBITA margin 8
Slide 9: Order backlog development (SEK million)
Order backlog development (SEK million) • Order backlog growth YoY of 8000 13.3%, to SEK 7,602 (6,708) million 7000 • Ratio of 0.8x, relative to 12 6000 months rolling net sales 5000 4000 3000 2000 1000 0 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021
Slide 10: Segment Sweden Q1 development
Segment Sweden Q1 development Key financials Q1 2022 • Net sales growth 29.8% to SEK 1,985 (1,529) million Net sales 1,985 • Organic growth 8.3%, a strong and solid performance SEK million • Acquired growth of 21.5% EBITA EBITA margin SEK 141 million 7.1 % Order backlog SEK 5,799 million 10
Slide 11: Segment Rest of Nordic Q1 development
Segment Rest of Nordic Q1 development • Net sales growth 44.7% to SEK 598 Key financials Q1 2022 (413) million • Organic growth 6.1% Net sales • Acquired growth of 39.5% SEK 598 million EBITA EBITA margin SEK 34 million 5.7 % Order backlog SEK 1,803 million 11
Slide 12: 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 33.0% YTD • Growth will take place both organically and through acquisitions Margin • Instalco aims to deliver an EBITA margin of 8.0% 6.7% YTD. 8,1% L
Slide 13: Project: Technical installations in LKAB mine
Project: Technical installations in LKAB mine • New major project for MRM Mining in Gällivare. • Technical installations in LKAB iron mine • Mechanical installations, construction work and upgrade of transport facilities • MRM Mining specialiced in installation and service in the mining industry 13
Slide 14: Project: Electrical installations in SCA plant
Project: Electrical installations in SCA plant • Kempes El in Kramfors in major project for SCA sawmill Bollstabruk • Electrical installations and power distribution • Heavy upgrade of SCA sawmill and expanding with new adjustment plant • Bollstabruk sawmill was set up 1852 14
Slide 15: Acquisitions 2022
Acquisitions 2022 Company Discipline Segment Est. Sales (SEKm) 1 Q1 Manglerud AS Heating & Plumbing Rest of Nordic 25 2 Q1 TC-Kraft AB / Z-Signaler AB Electrical Sweden 50 3 Q1 Kyrön Sähkö Oy Electrical Rest of Nordic 77 Total 152 15
Slide 16: Sustainable Installations
CEO´s theme Sustainable Installations 16
Slide 17: Instalco Sustainability Program
Instalco Sustainability Program Safe and modern work environment Sustainable installations Mature leadership 17
Slide 18: 47 Sustainable Instalco Projects 2021
47 Sustainable Instalco Projects 2021 • ”Secure Employees” • ”Code of Conduct for Suppliers” • Helps counteract climate change • Delivery plan • Sorting of materials and waste • Sustainability contract 18
Slide 19: Charging poles and charging stations
Charging poles and charging stations Swedish car fleet 310 000 chargable vehicles 62% plug in hybrids 38% electrical cars 6% of total car fleet 63% growth last 12 months 19
Slide 20: EU Taxonomy
EU Taxonomy • Classification system Economic activities Economic activities not for sustianable covered by the covered by the investments Taxonomy Taxonomy • Clarifying Instalco´s SEK m % SEK m % SEK m environmental Net sales 8,890 33 2,923 67 5,967 benefits Opex 191 1 1 99 189 Capex 288 3 8 97 280
Slide 21: Summary
Summary Strong growth and stable acquisition pace Strong M&A pipeline Recovery in Other Nordic Challenging material price situation High sick leave Demand for sustainable installation 21
Slide 22: Q&A - session
Q&A - session 22