Slide 1: Q3 2019 presentation
DRAFT Q3 2019 presentation 7 November 2019
Slide 2: Instalco
Instalco A leading Nordic installation group in heating and plumbing, electrical, ventilation and cooling Strong local brands Highly decentralised structure Deliver high margins over time Key financials (LTM) Net sales Order backlog SEK 5,304 million SEK 4,418 million Adjusted EBITA Adjusted
Slide 3: The Nordic installation market
The Nordic installation market Sweden + Population increase and urbanization, low unemployment, investments in industry - Fewer permits granted for buildings Norway + Urbanization, lower unemployment, oil investments are increasing, increase in energy efficiency regulations - Higher interest rates,
Slide 4: Q3 2019 Highlights
Q3 2019 Highlights Sales and profitability • Good profitability and strong growth Net sales • Net sales growth 41.9% SEK 1,416 million • Organic growth 14.6% Adjusted EBITA • Acquisitions of five high quality companies SEK 127 million • Strong cash flow 138 million Adjusted EBITA margin • Stable ord
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 (%) 140 12% 0.3% 120 10% 16,5% 14.6% 17.4% 100 27.1% 8% 1218 80 1416 6% 1264 123 127 979 60 120 1174 1406 107 101 92 4% 998 40 73 75 2% 20 0 0% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2017 2018 2018
Slide 6: Group development – Order backlog
Group development – Order backlog Order backlog (SEK million) • Growth of 18.6% (compared with Q3 2018) 5 000 4 500 • Continued stable order 4 000 backlog ratio of 0.8x (relative to 12 months 3 500 rolling net sales) 3 000 2 500 4 391 4 508 4 418 2 000 3 875 4 063 3 736 3 724 3 194 1 500 1 000 500 0
Slide 7: Examples of projects in Q3
Examples of projects in Q3 Scania foundry, Södertälje, Sweden Malmö hospital, Malmö, Sweden JN EL in partnering project with Skanska Rörläggaren contracted by Skanska as part and Scania of an installation group The new foundry is one of Scania's largest Expansion of Malmö Hospital industrial
Slide 8: Segment development - Sweden
Segment development - Sweden Key financials Q3 2019 • The Swedish market remains stable Net sales • High rate of construction for schools, preschools and hospitals SEK 1,039 million • Net sales growth 44.5% EBITA EBITA margin • Organic growth 15.2% SEK 114 million 11.0 % • Order backlog growth of 16
Slide 9: Segment development – Rest of Nordics
Segment development – Rest of Nordics • Continued high demand Key financials Q3 2019 • Net sales growth 35.1% Net sales • Organic growth 12.9% SEK 377 million • Order backlog growth 23.4% EBITA EBITA margin • Increase in new construction and SEK 39million 10.4 % renovation of offices, warehouses and
Slide 10: Examples of acquired companies in Q3
Examples of acquired companies in Q3 Pohjanmaan Taloteknikka, Finland OVAB Optimal Ventilation, Sweden Acquisition of Pohjanmaan Taloteknikka in OVAB Optimal Ventilation serving the Uleåborg market in Östersund and Åre Operations in northern Finland new Expansion of geographic area in Busine
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: 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 13: Looking ahead
Looking ahead Stable installation market and continued high demand High rate of construction and renovations of schools, preschools, hospitals, offices and commercial real estate Increasing investments in high tech construction and buildings Upcoming acquisitions 12
Slide 14: Looking ahead
Looking ahead New sustainability program to be launched Q1 2020 New strategy for increased service offering Accurate definition of service in order to be comparable to the rest of the industry 13
Slide 15: Reaching the 2019 financial target
Reaching the 2019 financial target Adjusted EBITA 500 450 400 350 300 LTM 250 200 150 100 50 0 2015 2016 2017 2018 2019 14
Slide 16: 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 17: Summary
Summary • Good profitability, strong growth and high cash flow • Continued stable market • Strong performance in both Business Areas: Sweden and Rest of Nordics • Confident in reaching our financial targets • Upcoming new sustainability program and increased service offering 16
Slide 18: INSTALCO 7”
259 179-7 WE 171 ® INSTALCO 7”
Slide 19: INSTALCO
INSTALCO
Slide 20: APPENDIX
APPENDIX 19
Slide 21: Quarterly data
Quarterly data SEKm 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 Q1 2019 Q2 2019 Net sales 556 777 689 781 708 935 979 1,174 998 1,264 1,218 1,406 Growth, % 65.6% 59.7% 45.2% 30.5% 27.3% 20.3% 42.2% 50.2% 40.8% 35,1% 24,4% 19,8% EBITDA 12 60 38 62 54 96 41 119 87 1