Slide 1: Q3 2017 presentation
Q3 2017 presentation 8 November 2017 INSTALCO
Slide 2: Per Sjöstrand, Group CEO and Lotta Sjögren, Group CFO
Per Sjöstrand Lotta Sjögren Group CEO Group CFO 1
Slide 3: Company overview
Company overview Net sales distribution – 9M 2017 Instalco is a leading multi-disciplinary technical installation Rest of Nordics, company active in the Nordic region 19% Service offering consists of Electrical, Heating & Plumbing, Ventilation and Cooling with a niche in industrial solutions – F
Slide 4: Q3 2017 highlights
• Net sales growth of 27% Net sales • Clear improvement in organic growth vs Q2 SEK 708 million • Strong margin Adjusted EBITA • Order backlog increase of 37% SEK 48 million • The Brick in Stockholm Adjusted EBITA margin • ESS (European Spallation Source) in Lund 6.8 % • Final stage of several acqui
Slide 5: Net sales growth and adjusted EBITA
Net sales growth (SEK million) Adj. EBITA (SEK million) and adj. EBITA margin (%) 800 80 10% 0.2% 70 9% 700 8% 26.9% 60 600 7% 500 50 6% 40 5% 400 69 4% 708 30 61 300 55 556 45 48 3% 20 200 2% 10 1% 15 100 0 0% 0 Q2 Q3 Q4 Q1 Q2 Q3 Q3 2016 Acquisitions Organic Q3 2017 2016 2016 2016 2017 2017 2017 •
Slide 6: Organic growth per unit, Sweden – 9M 2017
Organic growth per unit, Sweden – 9M 2017 50% 41% 40% 30% 28% 28% 20% 19% 20% 18% 17% 13% 10% 10% 7% 0% -1% -5% -10% -20% -24% -30% -26% -40% -40% -50% 5
Slide 7: Order backlog
Order backlog (SEK million) 3,000 • Growth of 36.6% Y/Y whereof 23.6% was acquired and 2,500 13.0% in comparable units 2,000 • Order backlog ratio of 0.9x 1,500 (relative to 12 months rolling 2,189 2,496 2,611 1,000 net sales) 1,683 1,911 1,999 500 0 Q2 Q3 Q4 Q1 Q2 Q3 2016 2016 2016 2017 2017 2017 6
Slide 8: Norway results
• Favourable market demand Net sales • Limited exposure to housing market SEK 530 million • Net sales growth of 7.7% Y/Y whereof EBITA EBITA margin 0.4% organic and 7.2% acquired growth SEK 49 million 9.2 % • Strong margin of 9.2% Order backlog • Order backlog growth of 25.1% Y/Y SEK 1,956 million w
Slide 9: Finland results
• Overall stable markets Net sales • Net sales growth of 180% whereof SEK 179 million -1.7% organic and 177.4% acquired growth EBITA EBITA margin • Weak margin but good conditions SEK 3 million 1.9 % for improvement Order backlog • Order backlog growth of 93.7% fully related to acquisitions SEK 655
Slide 10: Acquisitions
Acquisition Discipline Market / Region Estimated yearly Acquired sales (SEKm) SwedVVs Heating & Sweden - West 26 Feb Plumbing Andersen og Aksnes Heating & Norway 102 Feb Plumbing Uudenmaan Sähkötekniikka Electrical Finland 42 Mar Rodens Värme & Sanitet Heating & Sweden - East 38 Mar Plumbing Uudenma
Slide 11: Financial targets
Area Target Adjusted EBITA1 shall reach SEK 450m not later than the end of 2019, implying a doubling of adjusted Growth EBITA for the financial year 2016 The average organic sales growth shall amount to 5% over time Margin Instalco aims to deliver an adjusted EBITA margin of 8.0% Capital struc
Slide 12: Outlook and The Instalco model
• Stable growth and favourable profitability The Instalco model • Final stage of several acquisition processes, primarily in Sweden and Finland Local units • Limited exposure to the housing market • Continued high demand for installation services expected Cooperation Central support 11
Slide 13: Instalco
INSTALCO
Slide 14: Instalco
INSTALCO +s
Slide 15: Local or functional market leaders
Local or functional market leaders Limited Decentralised overhead layers culture with in holding strong company and leadership local units Multi- Competency to disciplinary coordinate solutions, cross technical sales and disciplines national/regiona l contracts Coordinated purchasing 14
Slide 16: Local and common responsibilities
Local responsibilities Customer and sales responsibility – strong relationships maintained at the local unit level Production responsibility – completion and monitoring of projects is done locally Personnel responsibility – each unit is responsible for maintaining a motivated and skilled workf
Slide 17: Market and customer structure
Balanced risk is fundamental to Instalco’s business model. This foundation is based on the following ten strategic principles for risk management, applicable since the company started: Focus on Sweden, Norway and Finland Large share of recurring customers (~80%) Acquired companies are profitable and
Slide 18: Quarterly financial summary
SEKm 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 Net sales 336 487 474 599 556 777 689 781 708 Growth, % n.a. n.a. 95.8% 97.1% 65.6% 59.7% 45.2% 30.5% 27.3% EBITDA -6 39 23 49 12 60 38 62 54 EBITDA margin, % -1.9% 8.0% 4.9% 8.2% 2.2% 7.7% 5.5% 8.0% 7.6% Adjusted EBITDA 15