Slide 1: Q1 2019 presentation
DRAFT Q1 2019 presentation 8 May 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 4,653 million SEK 4,391 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: Q1 2019 Highlights
Q1 2019 Highlights Sales and profitability • Net sales growth 24.4% Net sales • Organic growth 5.8% SEK 1,218 million • Acquisitions of three high quality companies Adjusted EBITA • Strong cash flow SEK 92 million • Strong order backlog Adjusted EBITA margin 7.6 % 4
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% 5.8% 1.2% 120 10% 17.4% 100 8% 1218 80 1264 6% 979 60 119 101 107 92 4% 40 69 72 74 20 45 48 2% 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2017 2017 2017 2017 2018 2018 2018 2018 20
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 17.5% (compared to Q1 2018) 5 000 4 500 • Continued high order 4 000 backlog ratio of 0.9x 3 500 (relative to 12 months 3 000 rolling net sales) 2 500 4 391 2 000 3 736 3 875 3 724 4 063 1 500 3 194 2 496 2 611 1 000 500 0 Q2
Slide 9: Examples of projects in Q1
Examples of projects in Q1 ICA Maxi supermarket Bålsta ESS research institute Lund Three Instalco subsidiaries: DALAB, Rörläggaren and Bi-Vent Sprinklerbolaget and Automationsbolaget Construction of the ESS Campus New 7 000 square meters supermarket Installations of heating and plumbing an
Slide 10: Segment development - Sweden
Segment development - Sweden • Continued healthy demand Key financials Q1 2019 • Public sector continues to build Net sales hospitals, schools and pre-schools SEK 906 million • Net sales growth of 21% EBITA EBITA margin • Organic growth of 4.6% SEK 82 million 9.1 % • Order backlog growth of 18.2% wh
Slide 11: Segment development – Rest of Nordics
Segment development – Rest of Nordics • Continued high demand Key financials Q1 2019 • Organic growth of 9.7% Net sales • Net sales growth of 35.6% SEK 312 million • Order backlog growth of 14.1% EBITA EBITA margin • Public sector continues to build SEK 15 million 4.9 % hospitals, schools and pre-sc
Slide 12: Examples of acquired companies in Q1
Examples of acquired companies in Q1 EKTK, Sweden Aquadus, Sweden EKTK specializes in electric power solutions Offers contract work and service in the for the process industry heating and plumbing sector in the area of Mälardalen New area for Instalco - excellent fit with other subsidiaries
Slide 13: Financial targets and dividend policy
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 adjusted
Slide 14: Looking ahead
Looking ahead Stable market and continued high demand reflected in strong order backlog Dip in housing construction but with continued stability in the installation sector The rate of construction for schools, preschools and hospitals remains high Still difficult to find qualified workforce
Slide 15: Summary
Summary Q1 • Stable growth in sales and profitability • Continued stable market • Confident in reaching our financial targets Looking ahead • Several upcoming acquisitions and start-ups • Focus on energy-efficient solutions and high demands on sustainability 14
Slide 16: halvvags
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Slide 17: INSTALCO +6
INSTALCO +6
Slide 18: Appendix
APPENDIX 17
Slide 19: Quarterly data
Quarterly data SEKm 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 Q1 2019 Net sales 599 556 777 689 781 708 935 979 1,174 998 1,264 1,218 Growth, % 97.1% 65.6% 59.7% 45.2% 30.5% 27.3% 20.3% 42.2% 50.2% 40.8% 35,1% 24,4% EBITDA 49 12 60 38 62 54 96 41 102 70