Slide 1: Q4 2018 presentation
DRAFT Q4 2018 presentation 15 February 2019
Slide 2: Today’s presenters
Today’s presenters Per Sjöstrand Lotta Sjögren Group CEO Group CFO 1
Slide 3: 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 4,414 million SEK 4,063 million Adjusted EBITA Adjusted
Slide 4: 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 5: Q4 2018 Highlights
Q4 2018 Highlights Sales and profitability • High growth in sales and profitability Net sales • Net sales growth 35.1% SEK 1,264 million • Organic growth 1.5% Adjusted EBITA • Several acquisitions in Sweden and Finland SEK 119 million • Continued stable market Adjusted EBITA margin • Strong order ba
Slide 6: 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% 120 10% 298 206 46 1048 100 8% 80 1264 6% 60 119 935 101 107 4% 40 69 72 74 20 45 48 2% 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2017 2017 2017 2017 2018 2018 2018 2018 5
Slide 7: Towards the 2019 financial target
Towards the 2019 financial target Adjusted EBITA 500 450 400 350 300 250 200 150 100 50 0 2015 2016 2017 2018 2019 6
Slide 8: Group development – Order backlog
Group development – Order backlog Order backlog (SEK million) • Growth of 27.2% (compared to Q4 2017) 4 500 4 000 • Continued high order 3 500 backlog ratio of 0.9x 3 000 (relative to 12 months 2 500 rolling net sales) 2 000 3 875 4 063 3 736 3 724 1 500 3 194 2 496 2 611 1 000 2 189 500 0 Q1 Q2 Q3
Slide 9: Examples of projects in Q4
Examples of projects in Q4 Hotel Savoy Malmö Linköping University Hospital Three Instalco subsidiaries: Rörläggaren, APC Elinstallatören El-Pågarna and VFB Rebuilding of Linköping University Hospital Renovation in one of Sweden’s oldest Installations of electrical, power and hotels – histo
Slide 10: Segment development - Sweden
Segment development - Sweden • Continued strong demand Key financials Q4 2018 • Stable market Net sales • Public sector continues to build SEK 944 million hospitals, schools and pre-schools EBITA EBITA margin • Net sales growth of 42.3% SEK 99 million 10.5 % • Organic growth of 6.9% Order backlog •
Slide 11: Segment development – Rest of Nordics
Segment development – Rest of Nordics • Continued high demand Key financials Q4 2018 • Stable market Net sales • Recovering after earlier loss-making SEK 320 million project in Norway EBITA EBITA margin • Two acquisitions in Finland SEK 22 million 6.7 % • Net sales growth of 11.5% Order backlog • Or
Slide 12: Examples of acquired companies in Q4
Examples of acquired companies in Q4 MSI, Sweden Sähkö-Buumi, Finland Offer services within electrical installations, Specializes in electrical installation work in heating and plumbing, service and conjunction with apartment renovations maintenance Operations in Helsinki and surrounding Str
Slide 13: Acquisitions 2018
Acquisitions 2018 Acquisition Discipline Segment Estimated yearly sales Acquired (SEKm) Trel AB Electrical Sweden 75 Jan Sprinklerbolaget i Stockholm AB Sprinkler Sweden 77 Jan Vent och Värmeteknik VVT AB Ventilation Sweden 18 Jan VVS-Kraft Teknikservice AB Heating & Plumbing Sweden 85 Feb RIKELEKTR
Slide 14: 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 organisation and a
Slide 15: Updated financial targets and dividend policy
Updated financial targets and dividend policy Area Target Comment Average sales growth should be at least 10% per year over a business cycle Acquired sales and EBITA in line Growth with plan Growth will take place both organically and through acquisitions Margin Instalco aims to deliver an a
Slide 16: Looking ahead
Looking ahead Stable market and demand reflected in strong order backlog Slowdown in housing construction but with continued stability in the installation sector Public sector continues to build hospitals, schools and pre-schools Still difficult to find qualified workforce Upcoming acquisi
Slide 17: Summary
Summary Q4 • High growth in sales and profitability • Continued stable market • Confident in reaching our financial targets Looking ahead • Several upcoming acquisitions and start-ups • Updated financial targets 16
Slide 18: Keep the customer satisfied
© & GARFUNKEL KEEP THE CUSTOMER SATISFIED AMERICA 7 SIMON INSTALCO 7”
Slide 19: INSTALCO
INSTALCO
Slide 20: APPENDIX
APPENDIX 19
Slide 21: Quarterly data
Quarterly data SEKm 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 Net sales 474 599 556 777 689 781 708 935 979 1,174 998 1,264 Growth, % 95.8% 97.1% 65.6% 59.7% 45.2% 30.5% 27.3% 20.3% 42.2% 50.2% 40.8% 35,1% EBITDA 23 49 12 60 38 62 54 96 41 102 70