Slide 1: Instalco Q3 presentation
Instalco Q3 presentation 25 October 2024 1
Slide 2: This is Instalco
This is Instalco A leading Nordic group within heating and plumbing, electricity, ventilation, industry and technical consulting Project planning, installation, service and maintenance of systems installed at properties and facilities Highly decentralised structure – specialised local companies >6,2
Slide 3: Key financials, LTM
Key financials, LTM Net sales, million SEK Order backlog, million SEK 13,956 8,533 EBITA, million SEK EBITA margin, % 993 7.1 Cash flow from operations, million SEK Number of companies 907 161 3
Slide 4: Quarterly highlights
Quarterly highlights Key financials Q3 2024 Net sales • Market challenges reflected in the numbers • Continued focus on profitability SEK 3,144 million culture EBITA 188 • Subsidiaries collaborating lead to exciting projects SEK million • Start-up concept works – good development for Intec and Inmat
Slide 5: Net sales and order backlog (SEK million)
Net sales and order backlog (SEK million) • Net sales development of -5.0% to SEK 3,144 (3,310) 1.5% million -5.0% -4.5% • Organic development -5.0%, while acquired growth contributed 1.5% • We remain cautious to building backlog given market pricing of projects • Service, not included in order 15,0
Slide 6: EBITA development (SEK million and margin %)
EBITA development (SEK million and margin %) 350 10% • EBITA amounted to SEK 188 (246) million 300 9% • EBITA margin of 6.0% (7.4) 7.4% 8% – A result of the weak 250 6.0% 7% market and less 6% favourable project 200 completions 5% 150 4% 100 3% 2% 50 1% 0 0% Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q
Slide 7: Segment Sweden
Segment Sweden Key financials Q3 2024 Net sales • Net sales amounted to SEK 2,166 (2,213) million SEK 2,166 million – Organic development -3.0% EBITA EBITA margin – Acquired growth of 1.0% • EBITA down to SEK 119 (177) million, corresponding to a margin of 5.5% (8.0) SEK 119 million 5.5 % Order back
Slide 8: Segment Rest of Nordics
Segment Rest of Nordics Key financials Q3 2024 Net sales • Net sales amounted to SEK 978 (1,098) million – Organic development -9.0% SEK 978 million – Acquired growth of 2.6% EBITA EBITA margin • EBITA flat at SEK 68 (68) million, despite lower topline, corresponding to an EBITA margin SEK 68 millio
Slide 9: Cash generation (SEK million)
Cash generation (SEK million) • Cash conversion R12M and quarterly cash flow from operations stable at SEK 119 (119) million, despite the lower earnings – a result of continued focus on working capital and invoicing • Fewer acquisitions compared to Q3 last year SEKm Q3 2024 Q3 2023 500 100% EBITDA 2
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: Project: Eight Instalco companies install the new Gothenburg Central Station
Project: Eight Instalco companies install the new Gothenburg Central Station • Eight Instalco companies have been contracted for project design and installations at the new Gothenburg Central Station. • The assignment involves project design and installation of the electrical, heating & plumbing, ve
Slide 12: A typical Instalco company
CEO’s theme A typical Instalco company 12
Slide 13: Decentralized model keeps us close to customers
Decentralized model keeps us close to customers Local responsibility Customers and sales Production Local units Employees Profit responsibility Multidisciplinary projects and cross-selling Cooperation Spreading best practice Talent development Joint responsibility Resource sharing
Slide 14: Local presence – a key factor
Local presence – a key factor • Based in major cities, or more generally, where people are living • Operates within a radius of 1 – 2 hours from HQ • HQ is often located outside the city center in an industrial area • Normally local clusters of minimum 3 Instalco companies • Aiming to be multidiscip
Slide 15: The typical Instalco company
The typical Instalco company E le ct rical He at in g & P lu m bin g V e n t ilat ion I n du st ry T e ch n ical con su lt in g Net sales, SEKm Number of employees 75m 30 Service, 30% of sales Projects, 70% of sales CEO 1 - 2 Finance/ 3 - 6 Project leaders administration 20 – 25 installers Avg. proj
Slide 16: Powering Linköping / Norwegian heating & plumbing specialists
CASE CASE Powering Linköping: Electrical Norwegian heating & experts with a local touch plumbing specialists Discipline: Electrical Discipline: Heating and plumbing Location: Linköping Location: Kristiansand Revenue: c. SEK 80m Revenue: c. NOK 80m Employees: 31 Employees: 40 Project size: SEK 5 – 10
Slide 17: Instalco is built by cooperation and best practice
Instalco is built by cooperation and best practice Segment Sweden Segment Other Nordics Division Division Division Division Norway Division Finland North South Tech. Consulting BA BA BA BA BA BA Sör- BA BA Norr Småland BA Syd BA Väst BA Öst BA Intec Midt/ BA H&P Industri Sthlm Inmatiq Vest Electrica
Slide 18: Instalco Malmö-Helsingborg as an example
Instalco Malmö-Helsingborg as an example 18
Slide 19: A local touch backed by big company capabilities
A local touch backed by big company capabilities Experiences from our companies “N w h we e p f he I l e m “We e j y he m lle mp y. “We h ve e bl hed ew k h h we can take on bigger projects than we could Instalco you are never alone, there is always Sweden and have started to co-operate before. We a
Slide 20: Summary
Summary • Long-term demand growing, short term challenging market conditions • Service remains at a high level, a stabilizing factor for the group – decentralised model facilitated the shift • Profitability culture in focus – tailored support to companies • Multidisciplinary orders showcase strength
Slide 21: Q&A
Q&A Climate-smart, sustainable installations enable us to lower our energy consumption. 21