Slide 1: Instalco Q2 presentation
Instalco Q2 presentation 25 August 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 • 120 subsidiaries – highly specialised local companies • 5 400 employees • Highly decentralised structure • Supported by a small central organisati
Slide 3: 10 billion Net sales, LTM
10 billion Net sales, LTM 2022-08-25 Konfidentiellt 3
Slide 4: Key financials, LTM
Key financials, LTM Net sales, million SEK Order backlog, million SEK 10.322 8.120 EBITA, million SEK EBITA margin, % 820 7,9 Cash flow, million SEK Acquired annual sales, million SEK 907 1.868 4
Slide 5: Q2 Highlights
Q2 Highlights • High cash flow 163 million Key financials Q2 2022 • Net sales growth 34.2% Net sales • Organic growth 6.2% • Record high order book • Margin back on the Instalco level SEK 3,102 million • Dealing with price increase on material EBITA 250 and raw material • Solid performance in segmen
Slide 6: Net sales development (SEK million)
Net sales development (SEK million) • High activity in Q2, net sales 6,2% 2,8% growth 34.2% to SEK 3,102 25,3% (2,311) million • Acquired growth of 25.3%, an effect of the successful M&A agenda • Organic growth of 6.2%, a strong proof of the synergies, collaboration and cross- selling concept 6
Slide 7: EBITA development (SEK million and margin %)
EBITA development (SEK million and margin %) 300 10% • EBITA 250 million 9% • EBITA margin 8,1% 250 8% 7% 200 6% 150 5% 4% 100 3% 2% 50 1% 0 0% Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 EBITA EBITA margin 7
Slide 8: Order backlog development (SEK million)
Order backlog development (SEK million) • Order backlog growth YoY of 9000 22.8%, to SEK 8,120 (6,610) million 8000 7000 • Ratio of 0.79x, relative to 12 months rolling net sales 6000 5000 4000 3000 2000 1000 0 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q
Slide 9: Segment Sweden Q2 development
Segment Sweden Q2 development Key financials Q2 2022 • Net sales growth 34.1% to SEK 2,447 (1,825) million Net sales 2,447 • Organic growth 8.9%, a strong and solid performance SEK million • Acquired growth of 25.2% EBITA EBITA margin SEK 215 million 8.8 % Order backlog SEK 6,336 million 9
Slide 10: Segment Rest of Nordic Q2 development
Segment Rest of Nordic Q2 development • Net sales growth 34.8% to SEK 655 Key financials Q2 2022 (486) million • Organic growth -3.9% Net sales • Acquired growth of 25.5% SEK 655 million EBITA EBITA margin SEK 38 million 5.8 % Order backlog SEK 1,782 million 10
Slide 11: 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 33.7% YTD • Growth will take place both organically and through acquisitions Margin • Instalco aims to deliver an EBITA margin of 8.0% 7,9% LTM Capital
Slide 12: Project: Installation orders in the cruise sector
Project: Installation orders in the cruise sector • New major projects for Mesab • Comprehensive technical installations on five international cruise ships • Installation of flue gas treatment plants and technical updates • Study, design and installation of complete systems • Collaboration with two
Slide 13: Project: Electrical installations in university
Project: Electrical installations in university • Electrical installation in new building at University of Gothenburg. • Elektro-Centralen in partnering project with Akademiska Hus and Serneke. • Phase 1 and construction. • Focus on sustainability and the environment, with high requirement levels. 1
Slide 14: 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 4 Q2 Highcon AB Industry Sweden 325 5 Q2 Liab Instrumenteringar AB Industry Swe
Slide 15: Industry
ca CEO’s theme Industry \ IN “*
Slide 16: Industry discipline
Industry discipline Comments Background 500 • Orab joined in 2014 • Today 15 companies Employees • Focused in the northern business area but established nationwide in Sweden Lately • Establishment in Norrbotten in the mining industry and maintenance of electricity 15 distribution • NCE - first indus
Slide 17: Companies
Companies • Orab • EKTK • Teampipe • Mesab • Selek • HP Welding • Start-Up • Kompressorteknik • MRM Mining • EPS Sweden • NCE • Highcon • Liab • + 3 Additional companies 17
Slide 18: Strategy
Strategy • Nearby business • Strong growth • Less competition • Collaboration 18
Slide 19: Outlook
Outlook • Growth of industrial market, specially in northern Sweden • Oportunity for acquisitions and consolidation • The Instalco model 19
Slide 20: Summary
Summary Strong quarter in challenging makro situation Record high order book Surpassed the 10 billion limit for 12-months rolling 20
Slide 21: Q&A - session
Q&A - session 21