Slide 1: Q1 2017 presentation
DRAFT Q1 2017 presentation 29 May 2017
Slide 2: Today’s presenters
Today’s presenters Per Sjöstrand Lotta Sjögren Group CEO Group CFO 1
Slide 3: Overview of Instalco
Overview of Instalco Company overview Net sales distribution – Q1 2017 Instalco is a leading multi-disciplinary technical installation Rest of Nordics; company active in the Nordic region 14% Service offering consists of Electrical, Heating & Plumbing, Ventilation and Cooling with a niche in i
Slide 4: Q1 - Highlights
Q1 - Highlights • Strong net sales growth of of 45.2% Net sales • Order backlog increase of 32.7% SEK 689 million • Order worth SEK 250 million awarded to Ohmegi Adjusted EBITA and Rörgruppen SEK 45 million • Five acquisitions, whereof two in Finland Adjusted EBITA margin • Platform to capture growt
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 (%) 800 70 10% 700 9% 44 60 8% 600 171 50 7% 500 6% 40 400 5% 689 30 61 300 55 4% 474 45 3% 20 200 25 2% 100 10 15 1% 0 0 0% Q1 2016 Acquisitions Organic Q1 2017 Q1 2016 Q2 2016 Q3 2
Slide 6: Group development – Order backlog
Group development – Order backlog Order backlog (SEK million) 2 500 • Stable development • Growth of 32.7% Y/Y whereof 2 000 28.7% was acquired and 3.9% 1 500 in comparable units 2 189 • Order backlog ratio of 0.8x 1 000 1 683 1 911 1 999 1 650 (relative to 12 months rolling net sales) 500 0 Q1 2016
Slide 7: Segment development - Sweden
Segment development - Sweden • Solid market demand and Net sales strong result SEK 593 million • Net sales growth of 31.2% Y/Y whereof 9.9% organic and EBITA EBITA margin 21.3% acquired growth SEK 52 million 8.8 % • EBITA growth of 100% Y/Y with margin improvement Order backlog from 5.7% to 8.8% SEK
Slide 8: Segment development – Rest of Nordics
Segment development – Rest of Nordics • Overall stable markets Net sales • Negative EBITA due to slow SEK 95 million start and postponement of certain projects in Norway EBITA EBITA margin • Growth related to acquisitions SEK -2 million - of 340.3% Order backlog • Order backlog growth of 121.3% Y/Y
Slide 9: Acquisitions
Acquisitions Acquisition Discipline Market / Region Estimated yearly sales (SEKm) SwedVVs Heating & Sweden - West 26 Plumbing Andersen og Aksnes Heating & Norway 102 Plumbing Uudenmaan Sähkötekniikka Electrical Finland 42 Rodens Värme & Sanitet Heating & Sweden - East 38 Plumbing Uudenmaan LVI-Talo
Slide 10: Instalco’s financial targets and dividend policy
Instalco’s financial targets and dividend policy Area Target Adjusted EBITA1 shall reach SEK 450m not later than the end of 2019, implying a doubling of adjusted Growth EBITA for the financial year 2016 The average organic sales growth shall amount to 5% over time Margin Instalco aims to de
Slide 11: Summary
Summary • Strong net sales, profitability and cash flow The Instalco model • Continued execution of acquisition strategy • Solid development in Sweden Local units • Projects in Norway impact EBITA but normalisation expected in Q2 • Finnish platform in place Cooperation Central support 10
Slide 12: INSTALCO
INSTALCO
Slide 13: The Instalco model
The Instalco model Local or functional market leaders Limited overhead Decentralised layers in holding culture with company and strong leadership local units Multi-disciplinary Competency to solutions, cross coordinate sales and technical national/regional disciplines contracts Coordinated purchasi
Slide 14: The Instalco model – local units supported by central functions
The Instalco model – local units supported by central functions Local responsibilities Customer and sales responsibility – strong relationships maintained at the local unit level Production responsibility – completion and monitoring of projects is done locally Personnel responsibility – eac
Slide 15: Quarterly data
Quarterly data SEKm 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 Net sales 242 304 336 487 474 599 556 777 689 Growth, % n.a. n.a. n.a. n.a. 95.8% 97.1% 65.6% 59.7% 45.2% EBITDA 8 10 -6 39 23 49 12 60 38 EBITDA margin, % 3.3% 3.3% -1.9% 8.0% 4.9% 8.2% 2.2% 7.7% 5.5% Adju