Interim report January-March 2017

Continued healthy growth and good profitability

January – March 2017

• Net sales increased by SEK 45.2 million to SEK 689 (474) million. Organic growth was 9.3 percent.
• Adjusted EBITA increased to SEK 45 (25) million which corresponds to an adjusted EBITA margin of 6.5 (5.3) percent.
• Operating cash flow was SEK 85 (64) million.
• Five acquisitions were made during the quarter, which, on an annual basis contribute total sales of SEK 315 million.
• Earnings per share for the quarter amounted to SEK 0.56 (0.41)

CEO Per Sjöstrand’s comments on the quarter:

Instalco reported healthy growth and profitability during the first quarter of the year. Sales increased by 45.2 percent to SEK 689 (474) million, of which 9.3 percent was organic growth and 35.9 percent was acquired growth. Adjusted EBITA amounted to SEK 45 million, which corresponds to an EBITA margin of 6.5 percent. We also experienced strong growth in the order backlog, which, at the end of the quarter, amounted to SEK 2,189 (1,650) million and an increase of 32.7 percent.

Active quarter
There was a great deal of activity during the first quarter as regards both acquisitions and projects. Particularly noteworthy is the order worth approximately SEK 250 million that our companies, Ohmegi and Rörgruppen, received in conjunction with the expansion of Södersjukhuset (Stockholm South General Hospital). The order is for installation of new production for two buildings with a total area of 39,000 sq. m.

Five new companies were added to the Group during the quarter – two in Sweden, two in Finland and one in Norway. It is evident that our business model continues to attract reputable companies that recognise the strength in our decentralised decision-making model and excellent collaboration. The assessed annual sales for the new companies is approximately SEK 315 million.

Platform in Finland
For quite some time, we have wanted to increase our presence in Finland. Now, with the acquisition of two new companies providing electricity, heating, plumbing and ventilation solutions, we have a wide platform for being able to offer competitive, multi-disciplinary solutions with a focus on the expansive Helsinki region. We can already

see how the collaboration is gaining momentum, with, for example, sharing of staff between the companies. As in other markets, our focus is on identifying leading, stable players with good profitability. We are very satisfied with how our offering on the Finnish market is now starting to take shape.

Initial public offering
Subsequent to the end of the quarter, we were successful in listing Instalco’s shares on Nasdaq Stockholm. Interest in our business and business model during this process has been high and I am convinced that the listing will be of great benefit to us as we further develop the Group. I would also like to take this opportunity to welcome our new shareholders to the company.

Future prospects
All in all, I feel optimistic about Instalco’s future prospects. The combination of a favourable market and greater collaboration between our companies creates good conditions for organic growth, while we continue making additional acquisitions. Instalco has a competitive offering to entrepreneurs who are interested in selling their company and we have discussions underway with several acquisition candidates.

On the basis of the Instalco model and a clear strategy, we continue pursuing our vision to, by 2020, become one of the leading installation companies in the Nordics within electrical, heating and plumbing, ventilation and cooling.

Report presentation

Instalco’s CEO Per Sjöstrand and CFO Lotta Sjögren will present the report in a conference call/audiocast today 29 May at 10.00 CET. Dial-ins for participants:

SE: +46 8 566 42 662
UK: +44 203 008 9801
US: +1 855 753 2236

The presentation can also be followed at https://tv.streamfabriken.com/instalco-q1-2017

This information is information that Instalco is required to disclose in accordance with the EU Market Abuse Regulation. The information was submitted for publication by the contact person set out below, on 29 May 2017 at 08:30 CET.

For further information:
Per Sjöstrand, CEO, per.sjostrand@instalco.se, 070-724 51 49
Lotta Sjögren, CFO, lotta.sjogren@instalco.se, 070-999 62 44

Instalco is one of the leading installation companies in the Nordics within electrical, heating and plumbing, and climate. The group has sales of approximately SEK 3 billion and has 30 companies with 1,500 employees in Sweden, Norway and Finland. www.instalco.se