Slide 1: Instalco Q4 presentation
Instalco Q4 presentation 15 February 2024 1
Slide 2: This is Instalco
This is Instalco A leading Nordic group within heating and plumbing, electrical, ventilation, industry and technical consulting Project planning, installation, service and maintenance of systems installed at properties and facilities Highly decentralised structure >130 subsidiaries – specialised loc
Slide 3: Key financials, LTM (FY 2023)
Key financials, LTM (FY 2023) Net sales, million SEK Order backlog, million SEK 14,279 8,437 EBITA, million SEK EBITA margin, % 1,085 7.6 Cash flow from operations, million SEK Acquired annual sales, million SEK 999 1,244 3
Slide 4: Quarterly highlights
Quarterly highlights • Resilient profitability, strategic project Key financials Q4 2023 selection Net sales • Service share of revenue grew to 37% • Very strong cash flow from operations at SEK 432 (376) million SEK 3,873 million • Two acquisitions EBITA SEK 310 million EBITA margin 8.0 % 4
Slide 5: Net sales development (SEK million)
Net sales development (SEK million) • Net sales growth of 7.9% to 12.0% SEK 3,873 (3,590) million -2.6% -0.6% -0.9% • Organic development -2.6%, mostly driven by Sweden • Acquired growth of 12.0%, an effect of the successful M&A agenda 5
Slide 6: EBITA development (SEK million and margin %)
EBITA development (SEK million and margin %) 350 10% • EBITA increased by 6.2% to SEK 310 (292) million 300 9% • Continued strong and stable 8.1% 8.0% 8% EBITA margin of 8.0% (8.1) 250 7% 6% 200 5% 150 4% 100 3% 2% 50 1% 0 0% Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1
Slide 7: Order backlog development (SEK million)
Order backlog development (SEK million) • YoY growth of 0.7%, to SEK 10,000 8,437 (8,376) million, down 9,000 -9.3% organically 8,000 • Prioritizing profitability over growth in the short term – 7,000 strong megatrends 6,000 supporting long-term growth 5,000 • Service, not included in order 4,000 ba
Slide 8: Segment Sweden Q4 development
Segment Sweden Q4 development Key financials Q4 2023 • Net sales essentially flat at SEK 2,703 (2,688) million Net sales 2,703 – Organic development -3.7% – Acquired growth of 7.2% SEK million • Very resilient EBITA margin of 9.1% (9.1) EBITA EBITA margin SEK 247 million 9.1 % Order backlog SEK 6,21
Slide 9: Segment Rest of Nordic Q4 development
Segment Rest of Nordic Q4 development • Net sales growth of 29.4% to SEK Key financials Q4 2023 1,170 (905) million – Organic growth 0.2% Net sales – Acquired growth of 32.7% • EBITA grew by 24.9% to SEK 62 (50) million, corresponding to an EBITA SEK 1,170 million margin of 5.3% (5.5) EBITA EBITA ma
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: Acquisitions 2023
Acquisitions 2023 Company Discipline Segment Est. Sales (SEKm) 1 Q1 Telepatrol Oy Electrical Rest of Nordic 48 2 Q1 Rörprodukter Montage Sverige AB Heating & Plumbing Sweden 24 3 Q1 Lysteknikk Entreprenør AS Electrical Rest of Nordic 325 4 Q1 Processus AB Industry Sweden 193 5 Q1 SMT Norrbotten AB I
Slide 12: 10 years of decentralisation
CEO’s theme 10 years of decentralisation 12
Slide 13: Let's take a walk down memory lane
Let’s take a walk down memory lane 13
Slide 14: Instalco's journey
Instalco’s journey OMX 2013 2014 2015 2016 2017 2018 Growth in Growth and The foundation The start The Nordics IPO Sweden conslidation 2019 2020 2021 2022 2023 Expansion in Technical Expanded Focused Industry Norway and consulting industry focus acquisitions Finland 14
Slide 15: The first five
| INSTALCO The first five y & RGRUPPEN AB ee ae && > POB :S EEPVVs-METODER P = | VVS-METODER | @ Entreprenad & Service a Ve 1 J ELAB 15
Slide 16: International expansion
International expansion 16
Slide 17: IPO
] ( INSTALCO 17
Slide 18: Internal collaboration for our largest project
Internal collaboration for our largest project 18
Slide 19: Celebrating 100 acquisitions
Celebrating 100 acquisitions 19
Slide 20: Venturing into new areas
Venturing into new areas Start-up Industry Technical model discipline Consulting 20
Slide 21: Strong expansion organically and through acquisitions
Strong expansion organically and through acquisitions 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 21
Slide 22: Well positioned for the coming years
Well positioned for the coming 10 years 22
Slide 23: Summary
Summary • Good earnings development with continued good profitability • Strategic order selection for long-term, resilient growth • Strong operating cash flow • Celebrating 10 years of decentralized entrepreneurship 23
Slide 24: Q&A
Q&A Climate-smart, sustainable installations enable us to lower our energy consumption. 24