Slides
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Q3 2025 presentation 24 October 2025
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This is Instalco 2 A leading northern European group within heating and plumbing, electricity, ventilation, industry and technical consulting Project planning, installation, service and maintenance of systems installed at properties and facilities Highly decentralised structure – specialised local companies >6,000 employees Driving the green transformation – strong underlying market drivers
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13,442 Net sales, million SEK EBITA adj., million SEK 863 Cash flow from operations, million SEK 1,030 Order backlog, million SEK 9,026 EBITA adj. margin, % 6.4 Service share of revenue, %, quarter 37 Key financials, LTM 3
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Quarterly summary 4 • Financial development not good enough • Margin improvement our highest priority • Strong operational cash flow • New country-based organization • Updated operational model leading us to Instalco 2.0 EBITA SEK180 million EBITA margin 6.0 % Net sales SEK3,028 million Key financials Q3 2025 4
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• Net sales development of -3.7% to SEK 3,028 (3,144) million • Organic development -3.3% (-5.0), acquired growth contributed 0.6%, FX impact of -0.9% • Order backlog growth of 5.8%, 6.4% organically, driven by Norway • Service, not included in order backlog, made up 37% of sales in the quarter Net sales and order backlog (SEK million) 5 3,144 3,028 Q3 2024 Acquisitions Organic FX Q3 2025 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 -0.9% 0.6% -3.3% 34% 41% 36% 36% 37% 0 5,000 10,000 15,000 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Order backlog Net sales R12M Service as % of net sales in quarter
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• EBITA amounted to SEK 180 (188) million • EBITA margin of 6.0% (6.0) – in line with last year EBITA development (SEK million and margin %) 6 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 0 50 100 150 200 250 300 350 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24* Q1'25* Q2'25* Q3'25 EBITA EBITA margin *Adjusted for Items affecting comparability: Q4’24: SEKm 65 Q1’25: SEKm 64 Q2’25: SEKm 11
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Segment Sweden 7 • Net sales amounted to SEK 2,060 (2,166) million Organic development -5.7% Acquired growth of 0.8% • EBITA amounted to SEK 106 (119) million, corresponding to a margin of 5.1% (5.5) 7 EBITA SEK106 million EBITA margin 5.1 % Order backlog SEK6,293 million Net sales SEK2,060 million Key financials Q3 2025
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Segment Rest of Nordics 8 • Net sales amounted to SEK 968 (978) million Organic development -2.2% Acquired growth of 0.1% • EBITA amounted to SEK 75 (68) million, corresponding to a margin of 7.7% (6.9) 8 EBITA SEK75 million EBITA margin 7.7 % Order backlog SEK2,733 million Net sales SEK968 million Key financials Q3 2025
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Cash generation (SEK million) • High cash flow from operations despite the lower earnings, almost all components of working capital improved • Expected outflows related to e.g. minority buy-backs • Working capital remains a focus area for all subsidiaries 9 0% 25% 50% 75% 100% 125% 150% 0 100 200 300 400 500 600 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 CFFO per Q R12M cash conversion SEKm Q3 2025 Q3 2024 EBITDA 282 297 Change in net working capital -60 -86 Cash flow from operating activities (CFFO) 133 119 Cash conversion (R12M) 112% 87% Cash flow from investing activities -91 -87 Cash flow from financing activities -413 -84 Cash flow for the period 67 122
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≥10% Growth Cash conversion 100% Dividend policy 30% Profitability 8% Capital structure (Net Debt/EBITDA) 2.5x Climate target 50% Strategic targets 10 Average sales growth should be at least 10% per year over a business cycle. Growth will take place both organically and through acquisitions Instalco aims to deliver an EBITA margin of 8.0% Instalco’s net debt in relation to EBITDA shall not exceed a ratio of 2.5Instalco aims to achieve a cash conversion ratio of 100%, measured over a rolling twelve-month period over a business cycle Instalco targets a dividend payout ratio of 30% of net profit Reduction of GHG emission intensity in Scope 1 and 2 by 2030, with 2020 as base year
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Fabri keeps expanding in Germany with three new acquisitions 11 ACQUISITIONS Company Location No. of employees Est. Sales (EURm) 1 I&H Elektrotechnik- Meisterbetrieb GmbH Wermelskirchen 26 2 Adolf Kindler GmbH Gärtringen 30 3 Geuppert Elektrotechnik GmbH & Co.KG Hofheim 43 Total 99 18.7
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För att infoga en bakgrundsbild, högerklicka och välj ”Formatera bakgrund”. Välj ”Bild eller strukturfyllning”. CEO’s theme Instalco 2.0 12
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13 Our road back to best in class 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 0 80 160 240 320 EBITA EBITA margin EBITA margin target *Adjusted for Items affecting comparability: Q4’24: SEKm 65 Q1’25: SEKm 64 Q2’25: SEKm 11
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14 Returning to proven, historical margin levels with a hands-on approach Firmly address underperforming business units Operational efficiency Organizational capabilities Short-term objective Improve EBITA-margin & increase resilience • While the majority of our business units are performing well, we have areas and units with challenges • Challenges have increased in the current market conditions • Actions taken up until now have not given satisfying results, and we must therefore increase our efforts • The primary focus for Instalco has for a long time been growth, but we now need to shift focus to operational excellence • We are going to re-design our operational model to make sure it supports our objectives in the most efficient way • We need an operational model that can drive strong cash management, productivity, resilience and clear accountability • We are a service organization, and we are decentralized, our value creation is fully dependent on our people • We need to secure that our organization has the capabilities it needs at all levels to deliver on our objectives Focus areas
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15 Firmly address underperforming business units Joint baseline and tailored support Financial result Different types of support The baseline Sounding- boards High Low Operational excellence High Low Low High Leaders Best-practice execution and strong leadership Established Solid operations with some improvement potential Developing Inconsistent execution and follow-up, but with potential Needs support Lacks structure, requires active guidance Top performer Strong performance, margins and cash flow Solid Stable results in line with expectations Underperforming Margins below target, mixed results Challenged Weak or negative results, action needed GoGr8 Mentors
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Guidelines in our work: • Maintain decentralised responsibility and clarify the division of responsibilities • Safeguard the “entrepreneurial spirit” and local self- determination as far as possible – we believe in the power of this • Efficiency and financial goals trump decentralised decision- making • Working methods towards companies that are adaptable to the situation and conditions – not “one size fits all”, but clear on what is non-negotiable • Dynamic insofar as it is effective in both economic upturns and downturns and allows us to grow with the model • Simple, but not oversimplified – so that it is clear to everyone Operational efficiency Reviewing our operational model 16 Develop the company portfolio Strengthen and develop companies to their full potential The right organisation and support structure Robust financial control Value creation Our value creation is ultimately done in each subsidiary – but it is through Instalco’s operational model that we control the companies' model, which is why we must start there.
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17 Organizational capabilities New, country-based organisation for clearer accountability CFO CEO Communication & Sustainability IR Country Manager Sweden COOProcurement GoGr8 Controller GoGr8 GoGr8 GoGr8 7 business units Country Manager Finland COO Controller 1 business unit Country Manager Norway COO Controller 3 business units President Tech & Consulting COO Controller 2 business units Sept 1, 2025 New structure in force Jan 1, 2026 New reporting segments • Sharper governance & follow-up • Improved profitability potential • Closer to customers
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Entrepreneurial spirit is intact — but margin accountability is non-negotiable Decentralised and disciplined 18 What stays: • Local leadership and ownership • Subsidiary autonomy in execution What changes: • Clear expectations and accountability • Shared tools and structured performance management
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• Seasonality and market pressure visible in the numbers – market activity has picked up • Margin the No1 priority, closely followed by working capital management • Continued strong operational cash flow • Service and backlog continue to grow • German platform expanded further, now comprising 20 local companies • New country-based organisation and refined operational model our way forward Summary 19
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Full power installations from a powerful team Q&A