Instalco Ab · OMXSTO:INSTAL
Instalco Ab — Q1 2024 Earnings Presentation
19 slides from Instalco Ab's earnings presentation, May 3, 2024
Slide 1: Instalco Q1 presentation
Instalco Q1 presentation 3 May 2024 1
Slide 2: This is Instalco
This is Instalco A leading Nordic group within heating and plumbing, electricity, ventilation, industry and technical consulting Project planning, installation, service and maintenance of systems installed at properties and facilities Highly decentralised structure – specialised local companies >6,2
Slide 3: Key financials, LTM
Key financials, LTM Net sales, million SEK Order backlog, million SEK 14,298 8,921 EBITA, million SEK EBITA margin, % 1,083 7.6 Cash flow from operations, million SEK Number of companies 975 157 3
Slide 4: Quarterly highlights
Quarterly highlights Key financials Q1 2024 Net sales • Stable financial development in line with same quarter last year, despite more challenging market conditions SEK 3,283 million • Sequential improvement of order EBITA 231 backlog • Technical consultants enters Finland SEK million and shows most
Slide 5: Net sales and order backlog (SEK million)
Net sales and order backlog (SEK million) • Net sales growth of 0.6% to SEK 9.9% 3,283 (3,264) million -0.6% -0.6% -8.1% • Organic development -8.1%, while acquired growth contributed 9.9% • Backlog YoY development of -0.7%, but sequential improvement to SEK 8,921 (8,987) million, down -3.5% organic
Slide 6: EBITA development (SEK million and margin %)
EBITA development (SEK million and margin %) 350 10% • EBITA amounted to SEK 231 (233) million 300 9% • EBITA margin in line with 8% previous year at 7.0% (7.1) – 7.1% 7.0% 250 7% despite negative organic 6% revenue development 200 5% • Local measures to protect 150 margins 4% 100 3% 2% 50 1% 0 0% Q
Slide 7: Segment Sweden
Segment Sweden Key financials Q1 2024 Net sales • Net sales essentially slightly down to SEK 2,248 (2,327) million SEK 2,248 million – Organic development -8.0% EBITA EBITA margin 177 7.9 – Acquired growth of 5.5% • EBITA margin in line with previous SEK million % year at 7.9% (8.0) Order backlog SE
Slide 8: Segment Rest of Nordics
Segment Rest of Nordics Key financials Q1 2024 Net sales • Net sales growth of 10.4% to SEK 1,034 (937) million SEK 1,034 million – Organic development -8.4% EBITA EBITA margin – Acquired growth of 20.8% • EBITA grew by 12.9% to SEK 54 (48) million, corresponding to an EBITA margin of 5.3% (5.1) SEK
Slide 9: Cash generation (SEK million)
Cash generation (SEK million) • Cash flow from operations of 198 (222) million, with a change in working capital of SEK 42 (40) million • Lower impact from investing activities in the quarter, net repayment of loans of SEK -211 (663) million SEKm Q1 2024 Q1 2023 500 100% EBITDA 321 302 400 Change in
Slide 10: Financial targets
Financial targets Growth Profitability ≥10% Average sales growth should be at least 10% per year over a business cycle. 8% Instalco aims to deliver an EBITA margin of 8.0% Growth will take place both organically and through acquisitions Cash conversion Capital structure (Net Debt/EBITDA) 100% Instal
Slide 11: Acquisition: Lund Elektro and start-up: Istech
ACQUISITION: LUND ELEKTRO START-UP: ISTECH Multidisciplinary in Kristiansand Building automation in Norway • Lund Elektro is a turnkey supplier of electrical installations in the • Focused on building automation, energy efficiency and smart Agder region, based in Kristiansand building technology in
Slide 12: Project: Hagastaden metro station
Project: Hagastaden metro station • Ohmegi Elektro AB has won an assignment with NCC to install electricity and power for a new station that will be constructed as part of the Stockholm Metro • The order value is approximately SEK 90 million • The assignment for Ohmegi will get underway during the f
Slide 13: Protecting our profitability
CEO’s theme Protecting our profitability 13
Slide 14: Engagement and entrepreneurship: eNPS 30
ENGAGEMENT ENTREPRENEURSHIP Employees are our most The Instalco spirit important asset Local units eNPS 30 Cooperation Central organisation 14
Slide 15: Key factors for profitability
Key factors for profitability Profitability culture Collaboration Leadership Client and project Project and Focus on selection business control procurement 15
Slide 16: Two programmes supporting subsidiaries
Two programmes supporting subsidiaries IFOKUS GoGr8 What? • Identify best practice – individual • Review and action plans for specific implementation companies • Structured, Best Practice, "golden standard" • Adapted, developed and anchored together • Instalco’s vast sub-groups of similar with compa
Slide 17: Illustrative case
Illustrative case • Longtime member of the Instalco family • Had an extra tough time during Covid-19 • High volatility in results month to month and falling profitability – lack of control After the project Examples of initiatives in the action plan: • Standardized calculation template & method with
Slide 18: Summary
Summary • Stable development despite challenging market conditions • Local measures to protect margins • Continued strategic project selection and high share of service • Two smaller acquisitions, further start-ups • Technical consultants enter Finland, report positive market signs and deliver profi
Slide 19: Q&A
Q&A Climate-smart, sustainable installations enable us to lower our energy consumption. 19