Slide 1: Instalco Q2 presentation
Instalco Q2 presentation August 19 2020 1
Slide 2: This is Instalco
This is Instalco • A leading Nordic installation group within heating and plumbing, electrical, ventilation and cooling • 77 subsidiaries – highly specialiced local companies • 3 350 employees • Highly decentralised structure • Supported by a small central organisation • Strong profitability with hi
Slide 3: Key financials, LTM
Key financials, LTM Net sales, million SEK Order backlog, million SEK 6.469 6.006 Adjusted EBITA, million SEK Adjusted EBITA margin, % 565 8,7 No of employees (30 June) Acquired annual sales, million SEK 3,350 1.304 3
Slide 4: Q2 2020 Highlights
Q2 2020 Highlights • Strong quarter despite covid-19 situation Key financials Q2 2020 • Relatively unaffected Net sales 1,725 • Net sales growth 22.7% • Strong cash flow 190 million SEK million • Strong order backlog over 6 billion • Five acquisitions Adjusted EBITA SEK 150 million Adjusted EBITA ma
Slide 5: Managing the covid-19 situation
Managing the covid-19 situation • Crisis has not hit the construction and installation sector hard • Relatively unaffected in projects and in acquisitions pace • Minor disturbances in some projects and services • Actions has been taken • Carefully monitoring the situation • Still very difficult to a
Slide 6: Net sales
Net sales • Net sales growth (SEK million) 2,3% -2,2% 22,6% 6
Slide 7: EBITA
EBITA 180 12% 160 • Adj. EBITA (SEK million) and 10% adj. EBITA margin (%) 140 120 8% 100 6% 80 60 4% 40 2% 20 0 0% Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Adjusted EBITA Adjusted EBITA margin 7
Slide 8: Order backlog
Order backlog 7000 • Growth of 33.2% (compared 6000 with Q2 2019) • Continued stable order 5000 backlog ratio of 0.93x (relative to 12 months rolling net 4000 sales) 3000 2000 1000 0 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 8
Slide 9: Examples of projects in Q2
Examples of projects i Q2 Brogårdsstaden, new Lohja plant, Finland EON Nordic Head city district, Sweden Office, Malmö, Sweden • Design and installation • Gasum new biogas • Two Instalco of geothermal heating plant subsidiaries: Bi-Vent system and Sprinklerbolaget • Sustainability project • 650 new
Slide 10: Segment development - Sweden
Segment development - Sweden • The Swedish operations have coped with Key financials Q2 2020 the covid-19 pandemic very well Net sales • Stable demand for technical installations • Net sales growth 25.8% • Organic growth 5.5% SEK 1,309 million • Order backlog growth of 43,8% whereof EBITA EBITA marg
Slide 11: Segment development – Rest of Nordics
Segment development – Rest of Nordics • Slow start of the year Key financials Q2 2020 • Has not performed according to plan Net sales 416 • Action plan for higher margins • Net sales growth 14.0% SEK million • Acquired growth 29.5% EBITA EBITA margin SEK 24 million 5.7 % Order backlog SEK 1,205 mill
Slide 12: Acquisitions 2020
Acquisitions 2020 Acquisition Discipline Segment Estimated yearly sales (SEKm) Acquired ELUB AB Electrical Sweden 69 Q1 Haug og Ruud VVS AS Heating & Plumbing Norway 71 Q1 Östersjö Elektriska AB Electrical Sweden 25 Q1 Avent-gruppen Ventilation Sweden 108 Q2 Norrtech VVS och Industri AB VS Sweden 36
Slide 13: Examples of acquired companies in Q2
Examples of acquired companies in Q2 • Avent group, Kalmar, Sweden • Miljöventilation, Sundsvall, Sweden • Heating, ventilation and cooling solutions • Project planning, installation, service and maintenance in heating and ventilation • Well-run company with an excellent reputation • One step closer
Slide 14: 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 business cycle Acquired sales and EBITA in line with Growth plan • Growth will take place both organically and through acquisitions Margin • Instalco aims to deliver an adju
Slide 15: Summary
Summary Strong quarter despite covid-19 situation Stable demand for technical installations in the construction area, both for new built and renovation High acquisition pace with five new companies in the group Good profitability, strong growth and high cash flow 15
Slide 16: Phil C ollins
Phil C ollins \cail All Odds e a Look at Me Now)
Slide 17: INSTALCO
INSTALCO 17