Instalco Ab · OMXSTO:INSTAL
Instalco Ab — Q4 2019 Earnings Presentation
23 slides from Instalco Ab's earnings presentation, Feb 18, 2020
Slide 1: Q4 2019 presentation
DRAFT Q4 2019 presentation 18 February 2020
Slide 2: Instalco
Instalco A leading Nordic installation group in heating and plumbing, electrical, ventilation and cooling 68 individual strong local brands Highly decentralised structure Deliver high margins over time Key financials (LTM) Net sales Order backlog SEK 5,692 million SEK 4,865 million Adjusted
Slide 3: The Nordic installation market
The Nordic installation market Total market of about 200+ billion SEK Sweden is the largest market Market will level out or even decline the coming years but still stay on high levels The downturn in residential buildings is offset buy public sector 2
Slide 4: Q4 2019 Highlights
Q4 2019 Highlights Sales and profitability • Good profitability and strong growth Net sales • Net sales growth 30.7% SEK 1,652 million • Organic growth 6.0% Adjusted EBITA • Strong cash flow 186 million SEK 157 million • Stable order backlog Adjusted EBITA margin • Robin Boheman appointed as new CFO
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 (%) 180 10% 6.0% 0.1% 160 9% 16,5% 14.6% 8% 140 17.4% 24.6% 7% 27.1% 120 6% 1218 100 1416 1652 5% 1264 80 157 979 1406 4% 1174 1264 60 120 123 127 998 107 3% 92 40 75 73 2% 20 1% 0 0
Slide 6: Group development – Order backlog
Group development – Order backlog Order backlog (SEK million) • Growth of 19.8% (compared with Q4 2018) 6 000 • Continued stable order 5 000 backlog ratio of 0.85x (relative to 12 months 4 000 rolling net sales) 3 000 4 865 4 391 4 508 4 418 2 000 3 736 3 875 3 724 4 063 3 194 1 000 0 Q4 Q1 Q2 Q3 Q4
Slide 7: Examples of projects in Q4
Examples of projects in Q4 Meglergården og Villa P, Oslo, Norway Lloyds pharmacy, Malmö, Sweden Largest multidisciplinary project in Norway Four Instalco subsidiaries: Rörman, Rikelektro, VFB and Sprinklerbolaget Two Instalco subsidiaries: Andersen og Aksnes and Teknisk Ventilasjon Pharmacy
Slide 8: Segment development - Sweden
Segment development - Sweden Key financials Q4 2019 • The Swedish market remains stable Net sales • High rate of construction for schools, preschools and hospitals SEK 1,236 million • Net sales growth 30.9% EBITA EBITA margin • Organic growth 6.8% SEK 133 million 10.7 % • Order backlog growth of 16,
Slide 9: Segment development – Rest of Nordics
Segment development – Rest of Nordics • Continued high demand Key financials Q4 2019 • Net sales growth 30.0% Net sales • Organic growth 3.7% SEK 416 million • Order backlog growth 27.1% EBITA EBITA margin • Increase in new construction and SEK 31million 7.6 % renovation of offices, warehouses and h
Slide 10: We create value by…
We create value by… • Acquiring best in class • Focusing on value companies with strong creating activities brands (lean) • Attractive multiples • Effectiveness Subsidiaries • Three types of M&A improvement • Cooperation between acquisitions: units (strategic, opportunistic • Flat organization and a
Slide 11: Acquisitions 2019
Acquisitions 2019 Acquisition Discipline Segment Estimated yearly sales Acquired (SEKm) El Kraft Teknik & Konsult i Sala AB Electrical Sweden 87 Q1 Aquadus VVS AB Heating & Plumbing Sweden 80 Q1 Aircano AB Ventilation Sweden 60 Q1 El & Säkerhet Sörmland AB Electrical Sweden 110 Q2 Moi Rør Heating &
Slide 12: Examples of acquired companies in Q4
Examples of acquired companies in Q4 Ventec AS, Norway Henningsons Elektriska AB, Sweden Acquisition of Ventec AS in Kristiansand Henningsons serving the market in Falun and Dalarna Specialists in ventilation and air conditioning systems Prominent and reputable electrical installation compan
Slide 13: • Wastewater
• Solar panels • Wastewaterheat • Wastewater heatexchanges exchanges • Energy savings programs • LED lighting • LED lighting • Property automation • Charging stations • Charging stations • Heat pumps • Air cleaning • Air cleaning
Slide 14: New sustainability program
New sustainability program 01 Safe and • Vision Zero, for work place accidents supportive work • Comfort, health and safety environment • Career development 02 • The Sustainable Instalco Project Sustainable • Generation benefits to society installations • Customer satisfaction 03 Mature leadership •
Slide 15: • Solar panels • Energy savings programs • Property automation
• Wastewater heat exchanges • LED lighting • Solar panels • Wastewater heat exchanges • Charging stations • Energy savings programs • LED lighting • Air cleaning • Property automation • Charging stations • Heat pumps • Air cleaning
Slide 16: New strategy for increased service offering
New strategy for increased service offering Accurate definition of service in order to be more comparable to the rest of the industry Increase from 15 to 25 percent Setting up service departments at our subsidiaries Possible acquisitions of companies that focus purely on service After proj
Slide 17: Reaching the 2019 financial target
Reaching the 2019 financial target Adjusted EBITA 500 450 400 350 300 250 200 150 100 50 0 2015 2016 2017 2018 2019 16
Slide 18: Financial targets and dividend policy
Financial targets and dividend policy Area Target Comment Average sales growth should be at least 10% per year over a Growth business cycle Acquired sales above plan Growth will take place both organically and through acquisitions Margin Instalco aims to deliver an adjusted EBITA margin of 8
Slide 19: Summary
Summary • Good profitability, strong growth and high cash flow • Continued stable market • Strong performance in both Business Areas: Sweden and Rest of Nordics • Record high number of acquisitions 2019 • New sustainability program • New strategy for increased service offering 18
Slide 20: AT eens mee Po >
AT eens mee Po > wy jf ON THE BAY i e OT 2 : fa INSTALCO 9
Slide 21: INSTALCO
INSTALCO 2
Slide 22: APPENDIX
APPENDIX 21
Slide 23: Quarterly data
Quarterly data SEKm 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Net sales 777 689 781 708 935 979 1,174 998 1,264 1,218 1,406 1,416 1,652 Growth, % 59.7% 45.2% 30.5% 27.3% 20.3% 42.2% 50.2% 40.8% 35,1% 24,4% 19,8% 41,9% 30,7% EBITDA 60 38 6