Instalco

Business and Financial Review • Feb 15, 2019

Press release 15 February 2019 (10:00 CET)

Instalco updates its growth target

The Board of Directors of Instalco has decided to update the company's financial target regarding growth, and to clarify the target regarding cash conversion.

Instalco's updated growth target is that the average growth in sales shall amount to no less than 10 percent per year over a business cycle. The growth shall be achieved both organically and through acquisitions.

The former growth target was to achieve an adjusted EBITA of SEK 450 million pro forma no later than the end of 2019 and that average organic growth in sales shall be 5% over time. The update is made as the Board already now considers it likely that the EBITA target will be reached.

Hence, Instalco's financial targets are:

• Growth (updated): Average growth in sales shall amount to no less than 10 percent per year over a business cycle. The growth shall be achieved both organically and through acquisitions.
• Profitability: Instalco's target is to achieve an adjusted EBITA margin of 8.0%.
• Capital structure: Instalco's net debt in relation to adjusted EBITDA shall not exceed a ratio of 2.5.
• Cash conversion (clarified regarding business cycle): Instalco's target is to achieve a cash conversion ratio of 100%, measured over a rolling twelve-month period over a business cycle.
• Dividend policy: Instalco's target is to distribute 30% of earnings after tax.

For more information

Fredrik Trahn, Head of Communications and IR phone +46 70 913 67 96, e-mail fredrik.trahn@instalco.se

This information is information that Instalco is required to disclose under the EU Market Abuse Regulation. The information was made public by the contact person listed above, on 15 February 2019 at 10:00 CET.

Instalco is one of the leading installation companies in the Nordic region, active in the areas of heating, plumbing, electricity, cooling and industrial solutions. We work closely with customers, offering all the advantages of a local company, along with efficient collaboration and leadership. The operations are conducted through approximately 55 leading and highly specialised local companies, with the support of a small central organisation. Instalco is listed at Nasdaq Stockholm under the ticker INSTAL. For further information, visit www.instalco.se.