Slide 1: Q3 2018 presentation
DRAFT Q3 2018 presentation 8 November 2018
Slide 2: Today's presenters
Today’s presenters Per Sjöstrand Lotta Sjögren Group CEO Group CFO 1
Slide 3: This is Instalco
This is Instalco A leading multi-disciplinary technical installation company active in the Nordic region Focus on mid-size projects Decentralised structure – “The Instalco model” Key financials (LTM) Net sales Order backlog SEK 4,086 million SEK 3,724 million Adjusted EBITA Adjusted EBITA marg
Slide 4: Q3 2018 Highlights
Q3 2018 Highlights Sales and profitability • High growth in sales and profitability Net sales • Net sales growth 40.8% SEK 998 million • Organic growth 8.6% Adjusted EBITA • Final stage of upcoming acquisitions SEK 74 million • Continued strong market Adjusted EBITA margin • Increased demand for ene
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 (%) 120 12% 100 10% 8.6% 1.9% 80 8% 32.8% 60 6% 101 107 40 4% 69 72 74 20 45 48 2% 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 2017 2017 2017 2017 2018 2018 2018 • Q3 seasonally slow due to summer hol
Slide 6: 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 5
Slide 7: Group development – Order backlog
Group development – Order backlog Order backlog (SEK million) • Growth of 42.6% (compared to Q3 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 3 736 3 724 1 500 3 194 2 496 2 611 1 000 1 999 2 189 500 0 Q4 Q1 Q2
Slide 8: Examples of projects in Q3
Examples of projects in Q3 Scaniarinken Södertälje Stora Enso Hylte bruk Mill JN El and OTK Klimatinstallationer ORAB Renovation of ice hockey facility Rebuilding of Stora Enso’s existing facility Scaniarinken Hylte bruk paper mill Electrical and ventilation system Installation of new co
Slide 9: Examples of projects in Q3
Examples of projects in Q3 Billingeprojektet Skövde Sergelhuset Stockholm Tofta Plåt & Ventilation Lidköping Rörgruppen and Ohmegi Project planning, development and Electrical and plumping installations installation of new ventilation and control Renovation of Stockholm city quarter system
Slide 10: Segment development - Sweden
Segment development - Sweden • Continued strong demand Key financials Q3 2018 • Increasing amount of projects in schools, Net sales pre schools and hospitals SEK 719 million • Net sales growth of 35.7% EBITA EBITA margin • Organic growth of 6.0% SEK 72 million 10.0 % • Order backlog growth of 44.3%
Slide 11: Segment development – Rest of Nordics
Segment development – Rest of Nordics • Continued high demand Key financials Q3 2018 • Stable market Net sales • Low margin due to one loss-making SEK 279 million project in Norway – ends in 2018 EBITA EBITA margin • Net sales growth of 55.9% SEK 8 million 3.0 % • Organic growth of 16.1% Order backl
Slide 12: Acquisitions 2018
Acquisitions 2018 Acquisition Discipline Market / Region Estimated yearly sales Acquired (SEKm) Q1 Trel AB Electrical Sweden - North 75 Jan Sprinklerbolaget i Stockholm AB Sprinkler Sweden 77 Jan Vent och Värmeteknik VVT AB Ventilation Sweden - South 18 Jan VVS-Kraft Teknikservice AB Heating & Plumb
Slide 13: Financial targets and dividend policy
Financial targets and dividend policy Area Target Comment Adjusted EBITA pro forma1 shall reach SEK 450m not later than Acquired sales and EBITA in line the end of 2019 with plan Growth Average yearly organic sales of The average organic sales growth shall amount to 5% over time 13.6% since
Slide 14: Looking ahead
Looking ahead Favourable market and demand reflected in strong order backlog Low exposure to housing market Increasing amount of projects in social properties Increased focus on energy-efficient solutions and higher demands on sustainability Still difficult to find qualified workforce 13
Slide 15: Summary
Summary Q3 • High growth in sales and profitability • Increased demand for energy efficient solutions with increased sustainability requirements Looking ahead • Final stage of several acquisitions • Slowdown in housing construction but with continued stability in the installation sector 14
Slide 16: Milestones
Tih mum STONES
Slide 17: Instalco +6
INSTALCO +6
Slide 18: Appendix
APPENDIX 17
Slide 19: 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 Net sales 474 599 556 777 689 781 708 935 979 1,174 998 Growth, % 95.8% 97.1% 65.6% 59.7% 45.2% 30.5% 27.3% 20.3% 42.2% 50.2% 40.8% EBITDA 23 49 12 60 38 62 54 96 41 102 70 EBITDA margin, % 4.