Instalco Ab · OMXSTO:INSTAL
Instalco Ab — Q4 2022 Earnings Presentation
21 slides from Instalco Ab's earnings presentation, Feb 16, 2023
Slide 1: Instalco Q4 presentation
Instalco Q4 presentation 16 Februari 2023 1
Slide 2: This is Instalco
This is Instalco A leading Nordic group within heating and plumbing, electrical, ventilation, cooling, industry and technical consulting Project planning, installation, service and maintenance of systems installed at properties and facilities Highly decentralised structure 125 subsidiaries – special
Slide 3: Key financials, LTM
Key financials, LTM Net sales, million SEK Order backlog, million SEK 12.063 8.376 EBITA, million SEK EBITA margin, % 916 7,6 Cash flow, million SEK Acquired annual sales, million SEK 753 1.141 3
Slide 4: Q4 Highlights
Q4 Highlights • High sales growth 35.6% Key financials Q4 2022 • Organic growth 10.7% Net sales • EBITA margin 8.1 (7.7) % (excluding an item affecting comparability related to repayment of AFA health insurance) SEK 3,590 million • Strong order backlog EBITA 292 • Solid cashflow • Strong demand for
Slide 5: Net sales development (SEK million)
Net sales development (SEK million) 1,8% • Net sales growth 35.6% to 10,7% SEK 3,590 (2,648) million 23,1% • Organic growth of 10.7%, a strong proof of the synergies, collaboration and cross- selling concept • Acquired growth of 23.1%, 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 292 million 9% • EBITA margin 8,1% 300 8% 250 7% 6% 200 5% 150 4% 100 3% 2% 50 1% 0 0% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 EBITA EBITA margin 6
Slide 7: Order backlog development (SEK million)
Order backlog development (SEK million) • Order backlog growth YoY of 9000 23.3%, to SEK 8,376 (6,795) million 8000 7000 • Ratio of ≈0.7x, relative to 12 months rolling net sales 6000 5000 4000 3000 2000 1000 0 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q
Slide 8: Segment Sweden Q4 development
Segment Sweden Q4 development Key financials Q4 2022 • Strong performance Net sales • Good profitability and strong growth • High order backlog • Net sales growth 27.4% to SEK 2,686 SEK 2,686 million (2,108) million EBITA EBITA margin • Organic growth 10.7% • Acquired growth of 16.7% SEK 244 million
Slide 9: Segment Rest of Nordic Q4 development
Segment Rest of Nordic Q4 development • Very strong increase of net sales, Key financials Q4 2022 EBITA and order backlog Net sales • Increased presence in Norway and Finland thanks to strong acquisitions • Net sales growth 67.5% to SEK 905 (540) million SEK 905 million • Organic growth 10.7% EBITA
Slide 10: 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 35.7% YTD • Growth will take place both organically and through acquisitions Margin • Instalco aims to deliver an EBITA margin of 8.0% 7,6% YTD Capital
Slide 11: New project: Expansion of Falu hospital
New project: Expansion of Falu hospital • Three Instalco companies: Henningsons El, Dalab and Intec • Partnering agreement with ByggDialog and Regionfastigheter Dalarna. • Renovation and expansion of the intensive care unit at Falu Hospital. • Project planning, design and installations of electricit
Slide 12: Acqusition: Expansion in northern Norway
Acqusition: Expansion in northern Norway • Acquisition of Norwegian company Imes AS in Tromsö. • Focus on service and installations for the fishing industry. • Increased presence in northern Norway. • Opportunities for synergies and collaboration in the region with Instalco company JB Elektro. 12
Slide 13: Acquisitions 2022
Acquisitions 2022 Company Discipline Segment Est. Sales (SEKm) 1 Q1 Manglerud AS Heating & Plumbing Rest of Nordic 25 2 Q1 TC-Kraft AB / Z-Signaler AB Electrical Sweden 50 3 Q1 Kyrön Sähkö Oy Electrical Rest of Nordic 77 4 Q2 Highcon AB Industry Sweden 325 5 Q2 Liab Instrumenteringar AB Industry Swe
Slide 14: Acquisitions 2022
Acquisitions 2022 Company Discipline Segment Est. Sales (SEKm) 14 Q4 Imes AS Electrical Rest of Nordic 50 15 Q4 Dymont Installation Oy Electrical Rest of Nordic 52 16 Q4 Bakke El-Installasjon AS Electrical Rest of Nordic 30 Total 1 141 14
Slide 15: Towards 2027
CEO´s theme Towards 2027 15
Slide 16: External factors that has affected us in 2022
External factors that has affected us in 2022 • Uncertainty & volatility in demand/investments Global pandemic • Major disruptions in the value chain • Challenges with staffing • Increased raw material prices Invasion of Ukraine • Disruptions in the value chain • Energy crisis: expensive electricity
Slide 17: Areas that give us opportunities going forward
Sustainability Areas that give us Energy shortage & opportunities green transition going forward Industrial investments in the Nordics 17
Slide 18: Creating a new vision
Creating a new vision • Interactive process within the Group • Focus on employees, customers, sustainability and continued growth • Roadmap to 2027 18
Slide 19: Our vision
Our vision “We enable our companies, employees and customers to grow by collaborating on installations for the transition to a green society for the next generation. We are the most competent and effective installation partner for our customers.” 19
Slide 20: Summary
Summary • Strong quarter • High growth and good profitability • Strong demand • Leading position in the hospital construction area • The Instalco model works well even in challenging times 20
Slide 21: Q&A - session
Q&A - session Climate-smart, sustainable installations enable us to lower our energy consumption. 21