Slide 1: Instalco Q1 presentation
Instalco Q1 presentation 4 May 2023 1
Slide 2: This is Instalco
This is Instalco A leading Nordic group within heating and plumbing, electrical, ventilation, cooling, industry and technical consulting Project planning, installation, service and maintenance of systems installed at properties and facilities Highly decentralised structure 130 subsidiaries – special
Slide 3: Key financials, LTM
Key financials, LTM Net sales, million SEK Order backlog, million SEK 12,744 8,987 EBITA, million SEK EBITA margin, % 975 7.6 Cash flow, million SEK Acquired annual sales, million SEK 765 1,959 3
Slide 4: Q1 Highlights
Q1 Highlights • Strong sales growth 26.4% Key financials Q1 2023 – High organic growth 12.5% Net sales • Strengthened profitability • Strong cash flow at SEK 222 (210) million • Solid order backlog SEK 3,264 million • High M&A activity, increasing level of debt EBITA but leverage still within target
Slide 5: Net sales development (SEK million)
Net sales development (SEK million) • Net sales growth 26.4% to SEK 3,264 (2,583) million 12.5% 0% 13.8% • Organic growth of 12.5%, with both segments contributing • Acquired growth of 13.8%, an effect of the successful M&A agenda 5
Slide 6: EBITA development (SEK million and margin %)
EBITA development (SEK million and margin %) 350 10% • EBITA of SEK 233 (173) million 9% • EBITA margin 7.1% (6.7) 300 8% • Clear seasonal effects, yet 250 significant improvements 7.1% 7% over last year 200 6% 6.7% 5% 150 4% 100 3% 2% 50 1% 0 0% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 20
Slide 7: Order backlog development (SEK million)
Order backlog development (SEK million) • Order backlog growth YoY of 9,000 18.2%, to SEK 8,987 (7,602) million 8,000 7,000 • Ratio of ≈0.7x, relative to 12 months rolling net sales 6,000 5,000 4,000 3,000 2,000 1,000 0 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022
Slide 8: Segment Sweden Q1 development
Segment Sweden Q1 development Key financials Q1 2023 • Organic growth and high profitability Net sales • Strong performance despite pressures from inflation • High order backlog SEK 2,327 million • Net sales growth 17.2% to SEK 2,327 (1,985) EBITA EBITA margin million • Organic growth 12.0% • Acquir
Slide 9: Segment Rest of Nordic Q1 development
Segment Rest of Nordic Q1 development • Very strong increase of net sales, Key financials Q1 2023 EBITA and order backlog Net sales • Finnish market tentatively positive • Net sales growth 56.6% to SEK 937 (598) million SEK 937 million • Organic growth 14.3% • Acquired growth of 42.1% EBITA EBITA ma
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 26.4% YTD • Growth will take place both organically and through acquisitions Margin • Instalco aims to deliver an EBITA margin of 8.0% 7.1% YTD Capital
Slide 11: Acquisitions 2023
Acquisitions 2023 Company Discipline Segment Est. Sales (SEKm) 1 Q1 Telepatrol Oy Electrical Rest of Nordic 48 2 Q1 Rörprodukter Montage Sverige AB Heating & Plumbing Sweden 24 3 Q1 Lysteknikk Entreprenør AS Electrical Rest of Nordic 325 4 Q1 Processus AB Industry Sweden 193 5 Q1 SMT Norrbotten AB I
Slide 12: Acquisitions: Expansion in the industrial area
Acqusitions: Expansion in the industrial area • Acquisition of Swedish company Processus AB • Engineering firm specialised in project management, process design, automation and industrial IT • Primarily focuses on four segments: pharmaceutical, food, energy and industry • Opportunities for expansion
Slide 13: Acquisitions: Expansion in the industrial area
Acqusitions: Expansion in the industrial area • Acquisition of Swedish company Enter Ställningar AB • Full service offering in industrial scaffolding • Excellent complement to our existing scaffolding company Highcon • Opportunities for synergies with our other Instalco companies • Strengthening and
Slide 14: Project: Renovation of apartment complex
Project: Renovation of apartment complex • Two Instalco companies: Calmarsunds VVS and Elovent • Renovation of apartment complex HSB Graniten in Kalmar • Typical example of energy efficiency project of housing complex from Million Programme • General contractor • Design and installation of the heati
Slide 15: Start-up
CEO´s theme Start-up 15
Slide 16: Varying rationale for acquisitions
Varying rationale for acquisitions Strategic Opportunistic Add-on Start-up
Slide 17: The Instalco start-up model
The Instalco start-up model • Established in 2016 • Finding the right entrepreneur • Sweden, Norway, Finland • When we are interested in setting up operations, but a suitable acquisition candidate does not exist 17
Slide 18: Instalco major start-up companies
Instalco major start-up companies • 9 start-up companies during 2022 • Technical consulting built with start-up model • INTEC x 25 • Expansion possible through subsidiary branches using the start-up model 18
Slide 19: Start-up lifecycle
Start-up lifecycle 3 – 5 years 2 – 3 years 1 – 2 years 0 – 1 years Ready Mature 2 companies Production 1 company Start 2 companies 4 companies 650 MSEK Estimated LTM net sales from start-up companies, inlcuding INTEC 19
Slide 20: Summary
Summary • Strong quarter • Normal seasonal effects, but profitability improvement • High M&A activity • Six acquisitions made during the period adding estimated sales of SEK 970 million 20
Slide 21: Q&A - session
Q&A - session Climate-smart, sustainable installations enable us to lower our energy consumption. 21