Slide 1: Instalco Q4 presentation
Instalco Q4 presentation 17 February 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 • 110 subsidiaries – highly specialised local companies • 4 900 employees • Highly decentralised structure • Supported by a small central organisati
Slide 3: Q4 Highlights
Q4 Highlights • Stable quarter in overall results and Key financials Q4 2021 margin Net sales • High cash flow 383 million • Net sales growth 27.5% • Organic growth 7.0% SEK 2,648 million • Six acquisitions EBITA 227 • Higher sick leave than normal due to pandemic reasons SEK million EBITA margin SE
Slide 4: Key financials, 2021
Key financials, 2021 Net sales, million SEK Order backlog, million SEK 8.890 6.795 EBITA, million SEK EBITA margin, % 748 8,4 Net sales growth, % Acquired annual sales, million SEK 24,8 1.760 4
Slide 5: Net sales development (SEK million)
Net sales development (SEK million) • High activity in Q4, net sales 7,0% 0,7% 19,7% growth 27.5% to SEK 2,648 (2,078) million • Acquired growth of 19.7%, an effect of the successful M&A agenda • Organic growth of 7.0%, a strong proof of the synergies, collaboration and cross- selling concept 5
Slide 6: Adj. EBITA development (SEK million and margin %)
Adj. EBITA development (SEK million and margin %) 250 10% • Record high adj. EBITA in Q4, growth 10,6% to SEK 214 9% (193) million 200 8% • Adj. EBITA margin 8.1% (9.3), 7% good level in challenging 150 6% markets 5% • Strong position in strategically selected areas 100 4% and geographies 3% • Strai
Slide 7: Order backlog development (SEK million)
Order backlog development (SEK million) • Order backlog growth YoY of 8000 2.6%, to SEK 6,795 (6,625) million 7000 • Ratio of 0.76x, relative to 12 6000 months rolling net sales 5000 • Organic development -9.5%, YoY, a comparison from a 4000 high level 3000 • Acquired growth YoY +10.9% 2000 1000 0 Q
Slide 8: Project: Installation of Solar panel roof
Project: Installation of Solar panel roof • Vallacom in Linköping is installing Riksbyggens largest solar cell system in Sweden • 5 200 sqm / 37 blocks • Self-produced electricity for 647 apartments • Installation of charging posts for electrical cars • Sustainable Instalco Project 8
Slide 9: Project: Five companies in joint assignment
Project: Five companies in joint assignment • Five Instalco companies contracted by Peab • Design and installation of electrical, heating & plumbing, ventilation and sprinkler systems • Renovation of property Entré in Malmö, office building • Demand-driven installations for energy saving • Sustainab
Slide 10: Segment Sweden Q4 development
Segment Sweden Q4 development Key financials Q4 2021 • Net sales growth 29.4% to SEK 2,108 (1,629) million Net sales 2,108 • Organic growth 7.4%, a very strong and solid performance SEK million • Acquired growth of 22.1% • High level of synergies, collaboration and EBITA EBITA margin cross selling •
Slide 11: Segment Rest of Nordic Q4 development
Segment Rest of Nordic Q4 development • Net sales growth 20.4% to SEK 540 Key financials Q4 2021 (449) million • Organic growth 5.8%, a very Net sales 540 strong and solid performance • Acquired growth of 11.3% SEK million • High level of synergies, collaboration and cross selling EBITA EBITA margin
Slide 12: Acquisitions 2021
Acquisitions 2021 Company Discipline Segment Est. Sales (SEKm) 1 Q1 JB Elektro Electrical Rest of Nordic 40 2 Q1 Lincom Electrical Sweden 33 3 Q1 Nässjö Teknikprojektering Technichal consulting Sweden 15 4 Q1 Stockholm Luftkompetens Ventilation Sweden 85 5 Q1 Kempes El Electrical Sweden 85 6 Q2 Inva
Slide 13: Acquisitions 2021 cont.
Acquisitions 2021 cont. 14 Q2 Nihlén Elmontage Electrical Sweden 80 15 Q2 Industriprodukter Electrical Sweden 20 16 Q3 Klimateknikk Ventilation Rest of Nordic 40 17 Q3 Forsséns Elektriska Electrical Sweden 65 18 Q3 App-Startup Industry Sweden 97 19 Q3 PeMi Ventillation & Montage Ventilation Sweden 3
Slide 14: 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 24.8% • Growth will take place both organically and through acquisitions Margin • Instalco aims to deliver an adjusted EBITA margin of 8.0% 8.2% Capita
Slide 15: CEO's theme: Year 2021
cee ee ges ae et | Bie INSTALCO 4, CEO’s theme Year 2021
Slide 16: Changes in the management team
Changes in the management team Per Sjöstrand COB Robin Boheman CEO Christina Kassberg CFO 16
Slide 17: Late cyclical pandemic disturbancies
Late cyclical pandemic disturbancies • Higher sick leave than normal • Increased raw material prices • Shortage of material and delivery delays • Close downs in Norway and Finland • Stop and go at construction sites • Despite all the above Instalco manage to delivier strong result and margin 17
Slide 18: Milestone of 100 subsidiaries
Milestone of 100 subsidiaries • 100 subsidiaries in three countries • Intense journey since 2014 • Creating synergies • Continued acquisition agenda 18
Slide 19: 2022: Expansion in Rest of Nordic
2022: Expansion in Rest of Nordic • Analys • Action plan • Downsizing • Changes in management • Increased support • Stronger regional organisation • Strategy Norway • Strategy Finland • Broaden our base of companies 19
Slide 20: 2022: Expansion of Industry Discipline
2022: Expansion of Industry Discipline Comments Background 500 • Orab part of Instalco since 2014 • 13 companies today Employees • All over Sweden with focus in North Why? • Nearby business • Strong growth • Less competition 13 Last quarter: • First companies in the district Norrbotten companies • F
Slide 21: 2022: Expansion of Technical consulting
2022: Expansion of Technical consulting Comments Intec – started in the end of 2020 230 • Engineers in electricity, plumbing, ventilation, energy, industry and fire employees protection. • Project design, construction management, inspection, installation coordination, environmental coordination, ris
Slide 22: Summary
Summary Q4 Stable quarter Focus on cash flow Acquisitions in Norway and Finland 2021 Impressive result Record high acquired growth Strong business model Large Cap Nasdaq Stockholm 22
Slide 23: Q&A - session
Q&A - session 23