Instalco Ab · OMXSTO:INSTAL
Instalco Ab — Q3 2022 Earnings Presentation
20 slides from Instalco Ab's earnings presentation, Nov 9, 2022
Slide 1: Instalco Q3 presentation
Instalco Q3 presentation 9 November 2022 1
Slide 2: This is Instalco
This is Instalco • A leading Nordic installation group within heating and plumbing, electrical, ventilation, cooling, industry and technical consulting • Highly decentralised structure • Supported by a small central organisation • 120 subsidiaries – highly specialised local companies • 5 500 employe
Slide 3: Key financials, LTM
Key financials, LTM Net sales, million SEK Order backlog, million SEK 11.121 8.158 EBITA, million SEK EBITA margin, % 850 7,6 Cash flow, million SEK Acquired annual sales, million SEK 760 1.752 3
Slide 4: Q3 Highlights
Q3 Highlights • High sales growth 40.2% Key financials Q3 2022 • Organic growth 7.8% Net sales • Solid EBITA • Dealing with high price levels on material • New credit agreement with three banks SEK 2,788 million of total SEK 3.4 billion EBITA 201 • Strong performance in segment Sweden • Increased pr
Slide 5: Net sales development (SEK million)
Net sales development (SEK million) • Net sales growth 40.2% to SEK 2,788 (1,989) million 7,8% 2,0% 30,4% • Organic growth of 7.8%, a strong proof of the synergies, collaboration and cross- selling concept • Acquired growth of 30.4%, an effect of the successful M&A agenda 5
Slide 6: EBITA development (SEK million and margin %)
EBITA development (SEK million and margin %) 300 10% • EBITA 201 million 9% • EBITA margin 7,2% 250 8% 7% 200 6% 150 5% 4% 100 3% 2% 50 1% 0 0% Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 EBITA EBITA margin 6
Slide 7: Order backlog development (SEK million)
Order backlog development (SEK million) • Order backlog growth YoY of 9000 25.6%, to SEK 8,158 (6,494) million 8000 7000 • Ratio of ≈0.7x, relative to 12 months rolling net sales 6000 5000 4000 3000 2000 1000 0 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q
Slide 8: Segment Sweden Q3 development
Segment Sweden Q3 development Key financials Q3 2022 • Solid performance Net sales • Good profitability and strong growth • High order backlog • Net sales growth 35.4% to SEK 2,103 SEK 2,103 million (1,553) million EBITA EBITA margin • Organic growth 10.3% • Acquired growth of 25.1% SEK 172 million
Slide 9: Segment Rest of Nordic Q3 development
Segment Rest of Nordic Q3 development • Strong increase of net sales, EBITA Key financials Q3 2022 and order backlog Net sales • Increased presence in Norway thanks to strong acquisitions • Net sales growth 57.3% to SEK 686 (436) million SEK 686 million • Organic growth -0.9% EBITA EBITA margin 29 4
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% LTM Capital
Slide 11: New credit agreement
New credit agreement • New credit agreement with three banks: Danske Bank, SEB and Svensk Exportkredit. • Total amount of SEK 3.4 billion. • Strengthen Instalco’s position for pursuing additional acquisitions. 11
Slide 12: Project: New assignment for LKAB
Project: New assignment for LKAB • Two Instalco companies MRM Mining, and EPS Sweden engaged by mining company LKAB. • New construction of two properties at Vitåfors industrial area. • Foundation work and underlying pipes work for heating & plumbing. • Budget for order: SEK 70 to 80 million. 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: Energy efficient solutions
CEO´s theme Energy efficient solutions 14
Slide 15: The transition to a sustainable society
The transition to a sustainable society Energy crisis and increased energy prices are hot topics Even stronger demand for energy saving installations and solutions Energy efficiency is the key to lower electricity bills 15
Slide 16: Suggesting, designing and installing energy efficient solutions
Suggesting, designing and installing energy efficient solutions • Solar panels • Air heat exchangers • Energy saving programs • Wastewater heat exchanges • Property automation • LED lighting • Heat pumps • Charging stations, charging poles • Geothermical heating • Water and air cleaning systems • Lo
Slide 17: Energy savings through technical installations
Energy savings through technical installations FTX ventilation Geothermal heating Solar panels New FTX ventilation VVS Kraft installing Vallacom installing solar system installed by geothermal heating cell system for 650 Aircano at two properties solution in apartment apartments in Linköping. in Sto
Slide 18: INSTALCO sustainable installations
INSTALCO INSTALCO sustainable installations
Slide 19: Summary
Summary • Solid performance in uncertain macro environment. • Dealing with high price levels on material • Strong acquisitions and good pipeline • Record high order backlog 19
Slide 20: Q&A - session
Q&A - session 20