Slide 1: Q2 2017 presentation
Q2 2017 presentation 25 August 2017 INSTALCO
Slide 2: Per Sjöstrand, Group CEO and Lotta Sjögren, Group CFO
Per Sjöstrand Lotta Sjögren Group CEO Group CFO 1
Slide 3: Company overview
Company overview Net sales distribution – 1H 2017 Instalco is a leading multi-disciplinary technical installation Rest of Nordics; company active in the Nordic region 17% Service offering consists of Electrical, Heating & Plumbing, Ventilation and Cooling with a niche in industrial solutions – F
Slide 4: Q2 2017 highlights: net sales SEK 781 million, adjusted EBITA SEK 69 million
• Net sales growth of 30% Net sales • Strong margin of 8.9% SEK 781 million Adjusted EBITA • Order backlog increase of 48% SEK 69 million • Expansion and profitability measures in Adjusted EBITA margin Norway • Acquisition in Bergen 8.9 % • Continued strong market • Increasingly difficult to find su
Slide 5: Net sales growth and adjusted EBITA development
Net sales growth (SEK million) Adj. EBITA (SEK million) and adj. EBITA margin (%) 900 80 10% 800 -9.0% 70 9% 38.6% 8% 700 60 7% 600 50 6% 500 40 5% 400 69 4% 781 30 61 55 300 599 45 3% 20 2% 200 25 10 1% 15 100 0 0% 0 Q1 Q2 Q3 Q4 Q1 Q2 Q2 2016 Acquisitions Organic Q2 2017 2016 2016 2016 2016 2017 20
Slide 6: Order backlog development
Order backlog (SEK million) 3 000 • Strong development 2 500 • Growth of 48.3% Y/Y whereof 30.5% was acquired and 2 000 17.7% in comparable units 1 500 2 496 • Order backlog ratio of 0.9x 1 000 1 683 1 911 1 999 2 189 1 650 (relative to 12 months rolling 500 net sales) 0 Q1 Q2 Q3 Q4 Q1 Q2 2016 2016
Slide 7: Segment results: Sweden, net sales SEK 633 million
• Solid market demand and strong Net sales result SEK 633 million • Numerous large projects last year impact organic growth EBITA EBITA margin • Net sales growth of 19.0% Y/Y SEK 63 million 10.0 % whereof -3.0% organic and 21.9% acquired growth Order backlog • Organic growth of 3% Jan-Jun 2017 SEK 1
Slide 8: Segment results: Rest of Nordics, net sales SEK 149 million
• Overall stable markets Net sales • Focus on profitability during SEK 149 million quarter impacts organic growth EBITA EBITA margin • Growth fully related to acquisitions SEK 13 million 8.7 % • Strengthened EBITA margin of 8.7% Order backlog • Order backlog growth of 120.9% SEK 534 million 7
Slide 9: Acquisitions during the quarter
Acquisition Discipline Market / Region Estimated yearly Acquired sales (SEKm) SwedVVs Heating & Sweden - West 26 Feb Plumbing Andersen og Aksnes Heating & Norway 102 Feb Plumbing Uudenmaan Sähkötekniikka Electrical Finland 42 Mar Rodens Värme & Sanitet Heating & Sweden - East 38 Mar Plumbing Uudenma
Slide 10: Financial targets
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 deliver an adjusted EBITA margin of 8.0% Capital struc
Slide 11: Summary and The Instalco model
• Strong margins The Instalco model • Strong order backlog • Profitability in Rest of Nordic on track Local units • Solid development in Sweden • Successful IPO Cooperation • Continue to pursue high-quality companies with leading positions and documented profitability and growth Central support 10
Slide 12: Instalco
INSTALCO 1
Slide 13: Instalco
INSTALCO
Slide 14: Local or functional market leaders
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 purchasing 13
Slide 15: Local and common responsibilities
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 – each unit is responsible for maintaining a motivated and skilled workf
Slide 16: Quarterly financial summary
SEKm 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 Net sales 304 336 487 474 599 556 777 689 781 Growth, % n.a. n.a. n.a. 95.8% 97.1% 65.6% 59.7% 45.2% 30.5% EBITDA 10 -6 39 23 49 12 60 38 62 EBITDA margin, % 3.3% -1.9% 8.0% 4.9% 8.2% 2.2% 7.7% 5.5% 8.0% Adjusted EBITDA 25