Slide 1: Instalco Q3 presentation
Instalco Q3 presentation November 9 2020 1
Slide 2: This is Instalco
This is Instalco • A leading Nordic installation group within heating and plumbing, electrical, ventilation and cooling • 79 subsidiaries – highly specialiced local companies • 3 600 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 6.696 6.263 Adjusted EBITA, million SEK Adjusted EBITA margin, % 589 8,8 No of employees (30 September) Acquired annual sales, million SEK 3,630 1.441 3
Slide 4: Q3 2020 Highlights
Q3 2020 Highlights • Stable quarter despite covid-19 situation Key financials Q3 2020 • Higher sick leave than normal Net sales 1,643 • Net sales growth 16.1% • Solid order backlog over 6 billion SEK million • Segment Sweden very strong – segment Rest of Nordic somewhat slow Adjusted EBITA 150 • Gro
Slide 5: Managing the covid-19 situation
Managing the covid-19 situation • Strong result despite covid-19 situation • Acquisitions pace unaffected • Higher sick leave than normal – impact on production • Flexible if market change • Carefully monitoring the situation • Very difficult to assess the future market 5
Slide 6: Net sales
Net sales • Net sales growth (SEK million) 20,8% -2,7% -2,1% 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% Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Adjusted EBITA Adjusted EBITA margin 7
Slide 8: Order backlog
Order backlog 7000 • Growth of 41.8% (compared 6000 with Q3 2019) • Continued stable order 5000 backlog ratio of 0.94x (relative to 12 months rolling net 4000 sales) 3000 2000 1000 0 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 8
Slide 9: Examples of projects in Q3
Examples of projects i Q3 Hovrätten 28, Fortnox Head Office, Tangvall skolecenter, Kristanstad, Sweden Växjö, Sweden Kristiansand, Norway • First “Sustainable • Installation of • First “Sustainable Classified Instalco efficient LED Instalco Project” in Project” lightning appliances Norway • Renovati
Slide 10: Segment development - Sweden
Segment development - Sweden • Strong and solid results by the Swedish Key financials Q3 2020 operations Net sales • Stable demand for technical installations • Net sales growth 20.6% • Organic growth 1.3% SEK 1,252 million • Order backlog growth of 53.4% whereof EBITA EBITA margin 117 9.3 34.4% in
Slide 11: Segment development – Rest of Nordics
Segment development – Rest of Nordics • Net sales growth 3.6% Key financials Q3 2020 • Result below desired level - partly due to Net sales Corona pandemic • Action plan for higher margins • Implementation of new Sustainability SEK 391 million program EBITA EBITA margin SEK 26 million 6.7 % Order ba
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 Rest of Nordics 71 Q1 Östersjö Elektriska AB Electrical Sweden 25 Q1 Avent Group Ventilation Sweden 108 Q2 Norrtech VVS och Industri AB VS Sw
Slide 13: Examples of acquired companies in Q3
Examples of acquired companies in Q3 VentPartner, Örebro, Sweden MR Rör, Stockholm, Sweden • Heating, ventilation and cooling solutions • Heating, cooling and plumbing • First larger ventilation company in • Specialized towards governmental and Instalco municipal companies • Largest customers: NCC a
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 and solid quarter despite covid-19 situation Stable demand for technical installations in the construction area, both for new built and renovation High acquisition pace with six new companies in the group Difficult to assess the future market 15
Slide 16: INSTALCO
INSTALCO ASHFORD & SIM PS OM 16
Slide 17: INSTALCO
INSTALCO 17