Instalco

Quarterly Report • Aug 25, 2022

Instalco

Interim report January – June 2022

Stable profitability and strong order backlog

April – June 2022

• • Net sales increased by 34.2 percent and amounted to SEK 3,102 (2,311) million. Organic growth, adjusted for currency effects, amounted to 6.2 (12.0) percent.
• • Operating profit before amortization of acquisition-related intangible assets (EBITA) increased by 25.6 percent and amounted to SEK 250 (199) million corresponding to an EBITA margin of 8.1 (8.6) percent.
• • Depreciation/amortisation of property, plant and equipment and intangible assets increased by SEK 43 million and amounted to SEK 87 (44) million.
• • Operating profit (EBIT) amounted to SEK 215 (197) million.
• • Cash flow from operating activities amounted to SEK 151 (104) million.
• • Earnings per share before dilution amounted to SEK 0.67 (0.58).
• • Four acquisitions were made during the quarter, which on an annual basis contribute an estimated total sales of SEK 574 million.

January – June 2022

• • Net sales increased by 33.7 percent and amounted to SEK 5,685 (4,253) million. Organic growth, adjusted for currency effects, amounted to 6.8 (5.3) percent.
• • Operating profit before amortisation of acquisition-related intangible assets (EBITA) increased by 20.7 percent and amounted to SEK 423 (351) million, which corresponds to an adjusted EBITA margin of 7.4 (8.2) percent.
• • Depreciation/amortisation of property, plant and equipment and intangible assets increased by SEK 76 million and amounted to SEK 159 (83) million.
• • Operating profit (EBIT) amounted to SEK 367 (347) million.
• • Cash flow from operating activities for the period was SEK 361 (269) million.
• • Earnings per share before dilution for the period amounted to SEK 1.05 (0.99).
• • A total of 7 acquisitions were made during the period, which on an annual basis contribute an estimated total sales of SEK 726 million.

Key figures 1)

SEK m	April June 2022	April June 2021	Change, %	Jan-June 2022	Jan-June 2021	Change, %	Rolling 12 months	Jan-Dec 2021
Net sales	3,102	2,311	34.2	5,685	4,253	33.7	10,322	8,890
EBITA	250	199	25.5	423	351	20.7	820	748
EBITA margin, %	8.1	8.6		7.4	8.2		7.9	8.4
Operating profit/loss (EBIT)	215	197	9.2	367	347	5.6	742	722
Earnings before taxes	209	197	6.3	336	337	–0.3	698	699
Cash flow from
operating activities	151	104	45.0	361	269	34.3	702	610
Net debt/EBITDA, times	2.3	1.5		2.3	1.5		2.3	1.8
Cash conversion	62	62	–1.1	91	86	5.6	87	84
Earnings per share before dilution, SEK1)	0.67	0.58	15.9	1.05	0.99	6.1	2.16	2.10
Earnings per share after dilution, SEK1)	0.66	0.57	15.9	1.04	0.98	6.1	2.12	2.06
Order backlog	8,120	6,610	22.8	8,120	6,610	22.8	8,120	6,795

1) All KPI calculations pertaining to SEK/share have been restated to reflect the 5:1 share split that was carried out in January 2022. As of 1 January 2022, EBITA is no longer presented with an adjustment for revaluation of additional consideration and acquisition costs. For definitions of alternative key figures as per the ESMA guidelines, please see the definitions of key figures.

1 Instalco interim report Q2 2022 www.instalco.se

CEO Comments

Net sales for the quarter increased by 34.2 percent, driven by stable organic growth and prior high-quality acquisitions. Profitability also improved compared to the first quarter and the EBITA margin increased to 8.1 percent. It is thus back at the Instalco level.

We are extremely proud of being able to deliver a margin at this strong level. Our companies have managed to deal with the increasing inflationary pressure in a satisfying way and we have been able to defend our operating margins.

We achieved a major milestone by, for the first time in Instalco's history, surpassing net sales of SEK 10 billion on a 12-month rolling basis.

Continued improvements in Rest of Nordic

One of our priority areas is to grow the Rest of Nordic segment. We want to expand our base of companies in Norway and Finland so that we can more easily create business synergies between our subsidiaries, which is one of the pillars of the Instalco model. In line with our strategy, we are thus continuing to increase the percentage of acquisitions in Rest of Nordic. During the quarter, we supplemented and strengthened the organization by making four acquisitions, of which four in Rest of Nordic, which contribute annual sales of around SEK 574 million.

We continue pursuing our action plan to raise profitability in the Rest of Nordic segment. We see good results from our efforts, although the situation and market, primarily in Finland, remains quite challenging for our companies.

Acquisitions is an important cornerstone of our strategy. The pace of acquisitions this year is strong, which is reflected in the growth we are delivering. Over the short term, the increasing pace of acquisitions results in a somewhat higher level of indebtedness, together with the decision of not using equity as payment method for our recent acquisitions. We are comfortable with the rate of acquisitions and we are maintaining both a sound level of indebtedness and strong balance sheet.

Record-high order backlog

Despite an uncertain macro situation, willingness to invest among our customers has remained high during the quarter and our observation is that demand is stable. Our order backlog has grown to its highest level ever of SEK 8.1 billion, which corresponds to 78 percent of annual sales.

For quite some time, Instalco has been one of Sweden's leading hospital contractors for electrical, Heating & Plumbing and ventilation installations. During the quarter, we solidified our position even more by signing agreements for two major hospital assignments. The first is our subsidiary APC, which has been contracted for electrical installations at Linköping University Hospital. The second is Ventpartner, which will be doing comprehensive ventilation work in conjunction with the expansion of Västervik Hospital.

Strong sustainability offering

One of our sustainability targets is generating benefits to society. We do that each and every day not only through our energy-saving installations, but also through various types of collaboration. During the quarter, within the scope of our Sustainability Program, Instalco began collaborating with Universeum, which is the national science centre of Sweden, located in Gothenburg. The collaboration is aimed at developing sustainability knowledge and strengthening our position in the area.

Sustainability and energy conversion are strong driving forces in the installation area. Adaptations to climate change and smart building solutions are strong trends on our industry. Instalco is well-positioned for offering customers the option of installing climate smart and energy optimization, all hand-in-hand with our sustainability offer.

I look with confidence to the future. Our assessment is that the market is stable and demand high, despite the challenging and uncertain macro situation.

Robin Boheman CEO

Performance of the Instalco Group

The Nordic market of installation services

There is a strong underlying demand on services of this sector from society. There is an ever-increasing demand for energy-efficient and resource saving installation services. Forecasts indicate that the demand for installations in all areas will remain stable at the current same level over the coming years. The market outlook is difficult to assess in light of the prevailing macroeconomic situation.

The prices of raw materials have risen sharply over the last few months along with higher inflation. Higher costs for fuel and energy have caused the prices of transports to increase. The consequences of the war in Ukraine are difficult to predict.

In general, the market is driven by a number of longterm trends and general societal development. Technological advancement, digitalization, environmental awareness, energy transition, sustainability, housing shortages and older property stock, an increasing and aging population are some of the major driving forces

Net sales

Second quarter NETTOOMSÄTTNING PER KVARTAL, MSEK

Sales for the quarter amounted to SEK 3,102 (2,311) million, which is an increase of 34.2 percent. Adjusted for currency effects, organic growth amounted to 6.2 percent and acquired growth was 25.3 percent. Currency fluctuations had a positive impact on net sales of 2.8 percent. 1 800 2 100 2 400 2 700 3 000 3 300 6 000 7 000 8 000 9 000 10 000 11 000

Four acquisitions were made during the quarter, with estimated annual net sales of SEK 574 million. 900 1 200 1 500 3 000 4 000 5 000

January – June 0 300 600

Net sales for the period amounted to SEK 5,685 (4,253) million, which is an increase of 33.7 percent. Adjusted for currency effects, organic growth amounted to 6.8 percent and acquired growth was 25.5 percent. Currency fluctuations had a positive impact on net sales of 1.4 percent. 2017 2018 2019 2020 2021 2022 0 Nettoomsättning per kvartal (vänster axel) Nettoomsättning rullande 12 månader (höger axel)

Earnings

Second quarter

Operating profit before amortisation of acquisition-related intangible assets (EBITA) amounted to SEK 250 (199) million, which corresponds to an EBITA margin of 8.1 (8.6) percent. The lower margin is primarily attributable to higher prices for materials.

Operating profit (EBIT) for the quarter amounted to SEK 215 (197) million. Amortisation of acquisition-related intangible assets increased by SEK 32 million and amounted to SEK 34 (2) million. The increase is attributable to a high rate of acquisition, with a larger portion of depreciable assets related to acquisitions.

Net financial items for the quarter amounted to SEK –6 (0) million, of which unrealised value changes amounted to SEK 10 (2) million and the interest expense on external loans amounted to SEK –9 (–3) million.

Earnings for the quarter were SEK 191 (154) million, which corresponds to earnings per share before dilution of SEK 0.67 (0.58).

January – June

1 000 2 000

EBITA PER KVARTAL, MSEK 210 240 270 700 800 900 Operating profit before amortisation of acquisition-related intangible assets (EBITA) for the period amounted to SEK 423 (351) million, which corresponds to an EBITA margin of 7.4 (8.2) percent. The lower margin is primarily attributable to higher absenteeism at the beginning of the year and high prices for materials.

30 60 90 120 150 180 0 100 200 300 400 500 600 Operating profit (EBIT) for the period amounted to SEK 367 (347) million. Amortisation of acquisition-related intangible assets increased by SEK 52 million and amounted to SEK 56 (4) million. The increase is attributable to a high rate of acquisition, with a larger portion of depreciable assets related to acquisitions.

0 2017 2018 2019 2020 2021 2022 EBITA per kvartal (vänster axel) EBITA rullande 12 månader (höger axel) Net financial items for the period amounted to SEK –31 (–11) million, of which unrealised value changes amounted to SEK –7 (–2) million and the interest expense on external loans amounted to SEK –15 (–6) million.

0 300 600 900 1,200 1,500 1,800 2,100 2,400 2,700 3,000 3,300 2017 2018 2019 2020 2021 2022 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 Net sales by quarter (left axis) Net sales rolling 12-months (right axis)

EBITA BY QUARTER, SEK M

NET SALES BY QUARTER, SEK M

Earnings for the period were SEK 291 (265) million, which corresponds to earnings per share before dilution of SEK 1.05 (0.99).

Order backlog

January – June

Order backlog at the end of the period amounted to SEK 8,120 (6,610) million, which is an increase of 22.8 percent. Organically, for comparable units, the order backlog grew, adjusted for currency effects, by 3.7 percent. The order backlog of acquired companies contributed with growth of 18.0 percent.

During the second quarter, two of Instalco's Norwegian subsidiaries, Moi Rør and Ventec entered into a joint agreement with Veidekke to deliver complete heating, plumbing, ventilation and sprinkler installations to Wilds Minne Skole and multi-sports arena in Kristiansand. A one-year planning and development phase for the project was first completed before signing the contract for a general subcontractor. The project will run until 2024.

Cash flow

Second quarter

Cash flow from operating activities amounted to SEK 151 (104) million, with a change in working capital of SEK –103 (–78) million. The Group's working capital fluctuates from one quarter to the next primarily because of fluctuations in these line items: work-in-progress, accounts receivable and accounts payable.

January – June

Cash flow from operating activities amounted to SEK 361 (269) million, with a change in working capital of SEK –24 (–44) million. The Group's working capital fluctuates from one quarter to the next primarily because of fluctuations in these line items: work-in-progress, accounts receivable and accounts payable.

Revenue by segment

SEK m	April June 2022	Share	April June 2021	Share	Jan-June 2022	Share	Jan-June 2021	Share	Jan-Dec 2021	Share
Sweden	2,447	79%	1,825	79%	4,431	78%	3,353	79%	7,015	79%
Rest of Nordic	655	21%	486	21%	1,254	22%	899	21%	1,875	21%
Total	3,102		2,311		5,685		4,253		8,890

EBITA, EBITA margin and earnings before taxes, per segment

SEK m	April June 2022	EBITA margin	April June 2021	EBITA margin	Jan-June 2022	EBITA margin	Jan-June 2021	EBITA margin	Jan-Dec 2021	EBITA margin
Sweden	215	8.8%	169	9.2%	356	8.0%	305	9.1%	640	9.1%
Rest of Nordic	38	5.8%	25	5.2%	72	5.7%	34	3.7%	80	4.3%
Group-wide	–4		5		–5		12		27
EBITA	250	8.1%	199	8.6%	423	7.4%	351	8.2%	748	8.4%
Amortisation of acqui sition-related intangi ble assets	–34		–2		–56		–4		–26
Net financial items	–6		–		–31		–11		–23
Earnings before taxes	209		197		336		337		699

Distribution of revenue

		Jan-June 2022		Jan-June 2021
SEK m	Service	Contract	Total	Service	Contract	Total
Sweden	1,180	3,252	4,431	627	2,727	3,353
Rest of Nordic	214	1,039	1,254	199	701	899
Total	1,394	4,291	5,685	825	3,427	4,253

Operations in Sweden

Market

In general, the market situation is good. The rate of new construction and renovation within both the private and public sectors is stable. Construction investments in industry are at a high level. Rising electricity prices increases the need for energy-efficiency and investments in the grid. For technical consulting, short-term demand is good, primarily for the industrial, ROT (a tax relief scheme for repairs, conversion, and extensions) and energy segments where significant needs exist.

Rising inflation and higher material prices is impacting the industry's profitability. A potential shortage of cement in Sweden could negatively impact construction activities. Long delivery times and component shortages could delay installations. NETTOOMSÄTTNING PER KVARTAL, MSEK

Net sales 2 700

Second quarter 2 400

Net sales for the quarter amounted to SEK 2,447 (1,825) million, which is an increase of SEK 622 million. Organic growth amounted to 8.9 percent and acquired growth was 25.2 percent. 900 1 200 1 500 1 800 2 100 3 000 4 000 5 000 6 000 7 000 8 000

January – June 600

Net sales for the period amounted to SEK 4,431 (3,353) million, which is an increase of SEK 1,078 million. Organic growth amounted to 8.2 percent and acquired growth was 23.9 percent. 0 300 2017 2018 2019 2020 2021 2022 Nettoomsättning per kvartal (vänster axel) Nettoomsättning rullande 12 månader (höger axel) 0 1 000

Earnings

Second quarter

EBITA for the quarter amounted to SEK 215 (169) million, which corresponds to a EBITA margin of 8.8 (9.2) percent. The lower margin is primarily attributable to higher prices for materials. Operating profit/loss was SEK 215 (169) million.

January – June

EBITA for the period was SEK 356 (305) million, which corresponds to a EBITA margin of 8.0 (9.1) percent. The lower margin is primarily attributable to higher absenteeism at the beginning of the year and high prices for materials. Operating profit/loss was SEK 356 (305) million.

Order backlog

EBITA PER KVARTAL, MSEK January – June

2 000

9 000

150 180 210 240 500 600 700 800 Order backlog at the end of the period amounted to SEK 6,336 (5,336) million, which is an increase of 18.7 percent. Organically, for comparable units, order backlog increased by 3.0 percent. The order backlog of acquired companies contributed with growth of 15.7 percent.

0 30 60 90 120 2017 2018 2019 2020 2021 2022 0 100 200 300 400 During the second quarter, Instalco's subsidiary, Mesab was engaged by Royal Caribbean Group and Carnival Corporation & PLC for comprehensive technical installations on five cruise ships. The work involves installation of gas treatment plants and upgrades.

EBITA rullande 12 månader (höger axel) (vänster axel)

Net sales rolling 12-months (right axis)

EBITA BY QUARTER, SEK M

EBITA per kvartal

EBITA by quarter (left axis) EBITA rolling 12-months (right axis)

Key figures for Sweden

SEK m	April-June 2022	April-June 2021	Change, %	Jan-June 2022	Jan-June 2021	Change, %	Rolling 12 months	Jan-Dec 2021
Net sales	2,447	1,825	34.1	4,431	3,353	32.1	8,092	7,015
EBITA	215	169	27.6	356	305	16.8	691	640
EBITA margin, %	8.8	9.2		8.0	9.1		8.5	9.1
Order backlog	6,336	5,336	18.7	6,336	5,336	18.7	6,336	5,363

Operations in Rest of Nordic

Market

The market in Norway has stabilised as regards both new construction and renovation. External market reports indicate that this will continue to be stable over the next few years. The market is driven by major investments in the public sector, such as schools and hospitals, along with private initiatives to develop industrial and residential properties. The market in Finland is primarily driven by the major metropolitan areas. But during the pandemic, the market has been sluggish.

Just as in Sweden, prices for materials are rising in Norway and Finland, which impacts the installation market. Rising material prices, inflation and component shortages are just some of the challenges that the industry is facing and must manage. NETTOOMSÄTTNING PER KVARTAL, MSEK

Net sales 800

Second quarter 700

Net sales for the quarter amounted to SEK 655 (486) million, which is an increase of SEK 169 million. Organic growth, adjusted for currency effects, amounted to –3.9 percent primarily attributable to the finnish market. Acquired growth was 25.5 percent. 200 300 400 500 600 600 900 1 200 1 500 1 800 2 100

January – June 100

Net sales for the period amounted to SEK 1,254 (899) million, which is an increase of SEK 355 million. Organic growth, adjusted for currency effects, amounted to 1.3 percent and acquired growth was 31.4 percent. 0 2017 2018 2019 2020 2021 2022 Nettoomsättning per kvartal (vänster axel) Nettoomsättning rullande 12 månader (höger axel) 0

Earnings

Second quarter

EBITA for the quarter was SEK 38 (25) million, which corresponds to a EBITA margin of 5.8 (5.2) percent. Operating profit/loss was SEK 38 (25) million. The higher margin is primarily attributable to stabilization of the Norwegian market and a positive impact from results in acquired companies.

January – June

EBITA for the period was SEK 72 (34) million, which corresponds to a EBITA margin of 5.7 (3.7) percent. Operating profit/loss was SEK 72 (34) million. The higher margin is primarily attributable to stabilization of the Norwegian market and a positive impact from results in acquired companies.

Order backlog

EBITA PER KVARTAL, MSEK January – June

300

2 400

25 30 35 40 75 90 105 120 Order backlog at the end of the period amounted to SEK 1,782 (1,274) million, which is an increase of 39.8 percent, adjusted for currency effects. Organically, for comparable units, order backlog increased by 6.6 percent. The order backlog of acquired companies contributed with growth of 27.3 percent.

0 5 10 15 20 2017 2018 2019 2020 2021 2022 0 15 30 45 60 During the second quarter, one of Instalco's subsidiaries in Finland, Voltmen, signed an agreement for electrical installations at six Tesla charging stations. The installations will occur at major highway interchanges stretching from Helsinki in the south to Lapland in the north.

EBITA per kvartal (vänster axel) EBITA rullande 12 månader (höger axel)

EBITA BY QUARTER, SEK M

EBITA by quarter (left axis) EBITA rolling 12-months (right axis)

Key figures, Rest of Nordic

SEK m	April-June 2022	April-June 2021	Change, %	Jan-June 2022	Jan-June 2021	Change, %	Rolling 12 months	Jan-Dec 2021
Net sales	655	486	34.9	1,254	899	39.4	2,229	1,875
EBITA	38	25	49.6	72	34	113.8	119	80
EBITA margin, %	5.8	5.2		5.7	3.7		5.3	4.3
Order backlog	1,782	1,274	39.8	1,782	1,274	39.8	4,468	1,432

Acquisition

Instalco made 7 acquisitions during the period January through June 2022. Acquisition costs for the period amount to SEK 7 (4) million and they are reported among Other operating expenses in the income statement.

Instalco typically applies an acquisition structure that consists of the purchase price and contingent consideration. Payment of contingent consideration is based on future results. Companies that achieve higher profits over a specified period of time will thus be paid a higher amount of contingent consideration. Contingent consideration is paid within three years of the acquisition date and there is a fixed maximum level.

In accordance with IFRS, contingent consideration has been measured at fair value. It is classified in Level 3 of the fair value hierarchy and reported under Non-current liabilities and Other current liabilities in the balance sheet. At the end of the period, the Group's estimated total amount of contingent consideration was SEK 366 million, of which SEK 55 million is for acquisitions made in 2022. The maximum,

non-discounted amount that could be paid to prior owners is SEK 647 million, of which SEK 131 million pertains to acquisitions that were made in 2022.

Revaluation of contingent consideration had a positive net impact on the period of SEK 14 (5) million, which is reported in Other operating income and Other operating expenses in the income statement.

The amount allocated to goodwill on the acquisition date corresponds to the cost of acquisition less the fair value of the acquired net assets. Recognition of goodwill is based on the future earnings capacity of companies. Equity at the end of the period, the Groups total goodwill amounted to SEK 4,182 (3,132) million. Consolidated goodwill is tested each year for impairment by looking at each cash-generating unit. No impairment of goodwill was necessary during the period.

Instalco's acquired net sales over the last 12-month period (RTM), in accordance with the assessed situation on the acquisition date, amounted to SEK 1,868 million.

Company acquisitions

June	Christiania Rörleggerbedrift AS	Heating & Plumbing	Rest of Nordic	100%	148	75
June	Kuopion LVI-Talo Oy	Heating & Plumbing	Rest of Nordic	100%	65	30
May	Liab Instrumenteringar AB	Industrial	Sweden	100%	36	17
April	Highcon AB	Industrial	Sweden	70%	325	120
February	Kyrön Sähkö Oy	Electricity	Rest of Nordic	100%	77	50
January	TC Kraft AB and Z-Signaler AB	Electricity	Sweden	100%	50	25
January	Manglerud AS	Heating & Plumbing	Rest of Nordic	100%	25	14
Access gained	Acquisition	Area of technology	Segment	Share of the votes and capital	Net sales, SEK million1)	Number of employees

1) Pertains to the assessed situation on a full-year basis at the acquisition date.

Impact of acquisitions

Acquisitions had the following impact on the Group's assets and liabilities. None of the acquisitions in the period have been assessed as individually significant, which is why the disclosures cover them as a whole. The acquisition analyses for companies acquired in 2022 are preliminary.

SEK m	Fair value of Group
Intangible assets	615
Deferred tax asset	0
Other non-current assets	41
Other current assets	285
Cash and cash equivalents	130
Deferred tax liability	–131
Current liabilities	–519
Total identifiable assets and liabilities (net)	422
Goodwill	352
Consideration paid
Cash and cash equivalents	743
Contingent consideration	60
Total transferred consideration	803
Impact on cash and cash equivalents
Cash consideration paid	743
Cash and cash equivalents of the acquired units	–130
Total impact on cash and cash equivalents	613
Settled contingent consideration attributable to acquisitions in the current year and prior years	173
Exchange rate difference	9
Total impact on cash and cash equivalents	796
Impact on net sales and operating profit/loss 2022
Net sales	326
Operating profit/loss	55
Consolidated pro forma for net sales and operating profit/loss from 1 January 2022

Net sales			242
Operating profit/loss			43

Financial and other information

Financial position

Equity at the end of the period amounted to SEK 2,802 (2,146) million, with an equity ratio of 31.7 (36.5) percent.

Cash and cash equivalents, together with its other short-term investments amounted to SEK 497 (323) million at the end of the period.

Interest-bearing debt including leasing at the end of the period amounted to SEK 2,861 (1,541) million. In March, Instalco signed a supplementary agreement to increase the credit facility by SEK 500 million. The agreement reflects the prior existing terms. As of the end of the period, Instalco's total credit facility amounted to SEK 2,501 million, of which SEK 2,401 million had been utilised. As of the end of the period, interest-bearing net debt amounted to SEK 2,365 (1,219) million, with a gearing ratio of 90.3 (57.2) percent and net debt in relation to adjusted EBITDA was 2.3 (1.5). Currency changes impacted interest-bearing net debt by SEK –15 (2) million.

Investments, depreciation and amortisation

Investments in company acquisitions amounted to SEK 796 (327) million during the period. The amount includes settled contingent consideration attributable to acquisitions made in the current and prior years equal to SEK 55 (39) million.

Net investments in fixed assets for the period amounted to SEK 13 (15) million.

Depreciation/amortisation property, plant and equipment and intangible assets amounted to SEK 159 (83) million, of which SEK 103 (80) million was depreciation of PPE and SEK 56 (4) was amortisation of acquisition-related intangible assets. The increase in depreciation/amortisation is primarily attributable to a higher rate of investment and thus higher depreciation/amortisation according to plan.

Share Information

At the extraordinary general meeting on 13 January 2022, it was resolved that a 5:1 share split would be carried out. The new shares were registered in the shareholders' accounts on 27 January 2022. At the end of the period, the number of shares and votes in Instalco AB amounted to 260,564,020.

Instalco's ten largest shareholders, 2022-06-30	Number of shares	Share of capital and votes
Per Sjöstrand	26,901,860	10.3%
Swedbank Robur Fonder	23,705,827	9.1%
Capital Group	21,415,065	8.2%
AMF Pension & Fonder	17,471,164	6.7%
Odin Fonder	11,755,515	4.5%
Wipunen Varainhallinta	10,430,000	4.0%
Heikintorppa	10,340,000	4.0%
SEB Fonder	9,643,567	3.7%
Lannebo Fonder	9,183,444	3.5%
Handelsbanken Fonder	7,945,711	3.0%
Total, 10 largest shareholders	148,792,153	57.1%
Other	111,771,867	42.9%
Total	260,564,020	100.0%

The ten largest known shareholders (grouped) of Instalco AB as of 30 June 2022. Source: Monitor by Modular Finance AB. Compiled and processed data from Euroclear, Morningstar and FI.

Outstanding share-related incentive programs

Instalco has an outstanding warrants scheme corresponding to a total of 7,546,280 shares. The warrants have been transferred on market terms at a price (premium) that was established based on an estimated market value using the Black & Scholes valuation model calculated by an independent valuation institute.

Outstanding program	Number of options	Corresponding number of shares	Percentage of total shares	Redemption rate per option	Redemption rate per share	Redemption period
2020/2023 1)	989,256	4,946,280	2.00%	SEK 157.78	SEK 31.56	22 May 2023 - 16 June 2023
2022/2025	2,600,000	2,600,000	1.00%	SEK 57.50	SEK 57.50	22 May 2025 - 16 June 2025

1) The 2020/2023 program has been restated to reflect the 5:1 share split that was carried out in January 2022.

Parent Company

The main operations of Instalco AB are head office activities like group-wide management and administration, along with finance and accounting. The comments below pertain to the period 1 January through 30 June 2022. Net sales for the Parent Company amounted to SEK 12 (13) million. Operating profit/loss was SEK –2 (1) million. Net financial items amounted to SEK 114 (–1) million, primarily attributable to profit from participations in Group companies. Earnings before taxes were SEK 112 (0) million and earnings for the period were SEK 112 (0) million. Cash and cash equivalents at the end of the period amounted to SEK 1 (2) million.

Transactions with related parties

During the period, there were no transactions between Instalco and related parties that had a significant impact on the company's financial position or earnings.

Risks and uncertainties

The Instalco Group is active in the Nordic market and it has a decentralised structure whereby each unit runs its own operations, with a large number of customers and suppliers. The business model limits the aggregated business and financial risks.

Instalco's earnings and financial position, as well as its strategic position, are affected by a number of internal factors that Instalco has control over, as well as a number of external factors where the ability to impact the outcome is limited. The most significant risk factors are the state of economy and market situation, along with structural changes and competition, which impact the demand for new construction of homes and offices, as well as investments from the public sector and industry. The demand for service and maintenance work is less impacted by these risk factors.

Instalco does not have any direct exposure to Ukraine and Russia with either sales or purchasing. Instalco's assessment is that the indirect effects are currently limited, although disruptions in logistics chains and higher prices

for raw materials where we are not able to compensate with a corresponding increase in our own prices impacts some of the Group's subsidiaries. We are monitoring developments carefully but it is currently difficult to assess what future consequences the conflict could have on the market and economic situation in Europe.

For more information, please see the section on Risks (pages 44-47) in the 2021 Annual Report.

The Parent Company is indirectly impacted by the aforementioned risks and uncertainties via its function in the Group.

Accounting policies

The interim report has been prepared in accordance with IFRS that have been adopted by the EU, with the application of IAS 34 Interim Financial Reporting. Disclosures as per IAS 34.16A are provided in the financial statements, notes and other parts of the interim report. The interim report for the Parent Company has been prepared in accordance with the Annual Accounts Act and the Swedish Securities Market Act, which is in accordance with RFR 2 Accounting for Legal Entities. The same accounting policies and bases of computation have been applied in this interim report as in the most recent annual report. New and revised IFRS and IFRIC pronouncements applicable as of the 2022 financial year have not had any significant impact on the consolidated financial statements.

Events after the end of the reporting period

During the third quarter of 2022, Instalco acquired the following companies: Grums Rör AB with expected annual sales of SEK 32 million and 14 employees, a group of companies consisting of Inlands Luft AB, Keyvent AB and Melins Plåtslageri AB with expected annual sales of SEK 93 million and 35 employees and Grevstad & Tvedt AS in Norway with expected annual sales of SEK 110 million and 70 employees.

Preliminary acquisition analyses for these acquisitions have not yet been prepared.

Condensed consolidated income statement and statement of comprehensive income

AMOUNTS IN SEK M	April-June 2022	April-June 2021	Jan-June 2022	Jan-June 2021	Rolling 12 months	Jan-Dec 2021
Net sales	3,102	2,311	5,685	4,253	10,322	8,890
Other operating income	37	16	71	35	151	115
Operating income	3,139	2,326	5,755	4,288	10,472	9,005
Materials and purchased services	–1,597	–1,194	–2,900	–2,168	–5,285	–4,552
Other external services	–236	–126	–430	–237	–714	–521
Personnel costs	–985	–760	–1,861	–1,439	–3,397	–2,975
Depreciation/amortisation and impairment of property, plant and equipment and intangible assets	–87	–44	–159	–83	–274	–198
Other operating expenses	–18	–5	–38	–14	–61	–37
Operating expenses	–2,923	–2,129	–5,389	–3,940	–9,731	–8,283
Operating profit/loss (EBIT)	215	197	367	347	742	722
Net financial items	–6	0	–31	–11	–43	–23
Earnings before taxes	209	197	336	337	698	699
Tax on profit for the year	–19	–43	–44	–72	–114	–142
Earnings for the period	191	154	291	265	585	558
Other comprehensive income
Translation difference	–8	–29	52	36	85	69
Comprehensive income for the period	183	125	343	300	670	627
Comprehensive income for the period attributable to:
Parent Company's shareholders	167	122	327	294	648	615
Non-controlling interests	15	4	17	6	22	12
Earnings per share for the period, before dilution, SEK	0.67	0.58	1.05	0.99	2.16	2.10
Earnings per share for the period, after dilution, SEK	0.66	0.57	1.04	0.98	2.12	2.06
Average number of shares before dilution 1, 2)	260,564,020	260,104,835	260,564,020	260,039,035	260,564,020	260,113,220
Average number of shares after dilution 1, 2)	265,510,300	265,051,115	265,510,300	264,985,315	265,510,300	265,059,500

1) The number of shares has been restated to reflect the 5:1 share split that was carried out in January 2022.

2) Instalco has two outstanding warrants scheme corresponding to a total of 7 546 280 shares.

Condensed consolidated balance sheet

AMOUNTS IN SEK M	30 June 2022	30 June 2021	31 Dec 2021
ASSETS
Goodwill	4,182	3,132	3,847
Right-of-use assets	436	369	446
Other non-current assets	906	145	300
Total non-current assets	5,524	3,646	4,593
Accounts receivable	1,589	1,093	1,448
Contract assets	862	565	519
Other current assets	368	254	334
Cash and cash equivalents	497	323	695
Total current assets	3,315	2,235	2,996
TOTAL ASSETS	8,840	5,881	7,589
Equity and liabilities
Equity	2,617	2,130	2,482
Non-controlling interests	184	16	19
Total equity	2,802	2,146	2,501
Non-current liabilities	2,937	1,312	2,095
Lease liabilities	283	236	295
Total non-current liabilities	3,220	1,548	2,390
Lease liabilities	139	120	137
Accounts payable	987	755	788
Contract liabilities	581	296	403
Other current liabilities	1,110	1,017	1,370
Total current liabilities	2,818	2,187	2,698
Total liabilities	6,037	3,735	5,088
TOTAL EQUITY AND LIABILITIES	8,840	5,881	7,589
Of which interest-bearing liabilities	2,861	1,541	2,345
Equity attributable to:
Parent Company shareholders	2,618	2,130	2,482
Non-controlling interests	184	16	19

Statement of changes in equity

Closing balance 2021-06-30	1	955	–32	1,206	15	2,146
Total transactions with owners	–	13	–	–137	–3	–127
Issue warrants	–	–	–	3	–	3
New issue	–	13	–	–	–	13
Change in non-controlling interests	–	–	–	–	–2	–2
Dividends	–	–	–	–140	–1	–141
Transactions with owners
Comprehensive income for the period	–	–	36	258	6	300
Other comprehensive income	–	–	36	–	–	35
Translation effect for the year of foreign operations	–	–	36	–	–	35
Profit (loss) for the period	–	–	–	258	6	264
Opening balance 2021-01-01	1	942	–68	1,085	12	1,973
Closing balance 2022-06-30	1	996	53	1,568	184	2,802
Total transactions with owners	–	–	–	–192	149	–42
Change in non-controlling interests	–	–	–	–24	150	128
Dividends	–	–	–	–168	–2	–170
Transactions with owners
Comprehensive income for the period	–	–	52	275	16	343
Translation effect for the year of foreign operations	–	–	52	–	–	52
Profit (loss) for the period	–	–	–	275	16	291
Opening balance 2022-01-01	1	996	1	1,485	19	2,501
AMOUNTS IN SEK M	Share capital	Other contrib uted capital	Translation reserve	Accumu lated profit or loss incl. profit (loss) for the year	Non-con trolling interests	Total equity

Condensed consolidated cash flow statement

AMOUNTS IN SEK M	April-June 2022	April-June 2021	Jan-June 2022	Jan-June 2021	Rolling 12 months	Jan-Dec 2021
Cash flow from operating activities
Earnings before taxes	209	197	336	337	698	699
Adjustment for items not included in cash flow	87	29	180	72	298	190
Tax paid	–42	–44	–131	–96	–185	–150
Changes in working capital	–103	–78	–24	–44	–109	–130
Cash flow from operating activities	151	104	361	269	702	610
Investing activities
Acquisition of subsidiaries and businesses	–586	–192	–796	–327	–1,421	–953
Other non-current assets	–1	–13	–13	–15	–16	–18
Cash flow from investing activities	–587	–204	–808	–342	–1,437	–971
Financing activities
New issue	–	–	–	13	40	53
Warrants	–	3	–	3	–	3
Change in non-controlling interests	–	–	–	–	–15	–15
Dividends	–167	–140	–170	–141	–169	–141
Net change of loan	179	199	498	198	1,207	907
Amortisation of lease liability	–43	–37	–85	–70	–166	–151
Cash flow from financing activities	–31	24	244	3	898	658
Cash flow for the period	–467	–76	–204	–70	163	297
Cash and cash equivalents at the beginning of the period	973	404	695	386	323	386
Translation differences in cash and cash equiv alents	–8	–5	6	7	11	12
Cash and cash equivalents at the end of the period	497	323	497	323	497	695

Condensed Parent Company income statement

AMOUNTS IN SEK M	April-June 2022	April-June 2021	Jan-June 2022	Jan-June 2021	Rolling 12 months	Jan-Dec 2021
Net sales	6	7	12	13	21	22
Operating expenses	–7	–6	–14	–12	–25	–22
Operating profit/loss	–1	0	–2	1	–4	–1
Net financial items	114	0	114	–1	113	–2
Profit/loss after net financial items	114	0	112	0	109	–3
Group contributions received	–	–	–	–	10	10
Earnings before taxes	114	0	112	0	119	7
Tax	–	–	–	–	–2	–2
Earnings for the period	114	0	112	0	118	6

Condensed Parent Company balance sheet

AMOUNTS IN SEK M	30 June 2022	30 June 2021	31 Dec 2021
ASSETS
Shares in subsidiaries	1,375	1,375	1,375
Total non-current assets	1,375	1,375	1,375
Other current assets	5	14	10
Cash and cash equivalents	1	2	54
Total current assets	6	16	64
TOTAL ASSETS	1,381	1,391	1,440
Equity and liabilities
Equity	1,230	1,241	1,287
Total equity	1,230	1,241	1,287
Non-current liabilities	143	143	143
Current liabilities	8	7	10
Total liabilities	151	149	152
TOTAL EQUITY AND LIABILITIES	1,381	1,391	1,440

Quarterly data

AMOUNTS IN SEK M	Q2 2022	Q1 2022	Q4 2021	Q3 2021	Q2 2021	Q1 2021	Q4 2020	Q3 2020
Net sales	3,102	2,583	2,648	1,989	2,311	1,942	2,078	1,643
Growth in net sales, %	34.2	33.0	27.5	21.0	33.9	15.9	25.8	16.1
EBITDA	303	223	275	214	241	189	231	171
EBITDA margin, %	9.8	8.6	10.4	10.8	10.4	9.7	11.1	10.4
EBITA	250	173	227	171	199	152	190	140
EBITA margin, %	8.1	6.7	8.6	8.6	8.6	7.8	9.2	8.5
Operating profit/loss (EBIT)	215	151	212	163	197	150	190	140
Operating profit/loss (EBIT), %	6.9	5.9	8.0	8.2	8.5	7.7	9.1	8.5
Earnings before taxes	209	126	205	158	197	140	198	137
Earnings for the period	175	100	159	128	151	108	152	103
Working capital	141	–257	–255	–15	–156	–216	–176	–60
Interest-bearing net debt	2,365	1,710	1,650	1,620	1,219	911	912	974
Gearing ratio, %	90.3	64.8	66.5	71.4	57.2	42.4	46.5	53.5
Net debt/EBITDA, times	2.3	1.8	1.8	1.9	1.5	1.2	1.2	1.4
Cash conversion, %	62	131	145	1	62	117	131	76
Cash flow from operating activities	151	210	383	–42	104	164	277	90
Equity ratio, %	31.7	32.6	33.0	34.6	36.5	39.3	37.7	38.2
Return on equity, %	23.4	23.0	24.7	25.8	26.0	26.0	26.7	33.7
Return on capital employed, %	15.7	17.0	18.8	20.2	21.2	21.3	19.2	17.0
Order backlog	8,120	7,602	6,795	6,494	6,610	6,708	6,625	6,263
Average number of employees	5,115	4,860	4,642	4,335	4,085	3,876	3,609	3,474
Number of employees at the end of the period	5,386	5,027	4,887	4,597	4,256	3,993	3,856	3,630
Acquisition-related items	Q2 2022	Q1 2022	Q4 2021	Q3 2021	Q2 2021	Q1 2021	Q4 2020	Q3 2020
Revaluation of contingent
consideration	8	6	16	10	5	0	–1	–8
Acquisition costs	–4	–3	–4	–4	–1	–3	–2	–2
Total acquisition-related items	4	3	13	6	4	–3	–3	–10
Key figures per share SEK 1)	Q2 2022	Q1 2022	Q4 2021	Q3 2021	Q2 2021	Q1 2021	Q4 2020	Q3 2020
Average number of shares before dilution	260,564,020	260,564,020	260,252,160	260,122,655	260,104,835	259,973,235	259,292,370	257,087,445
Average number of shares after dilution	265,510,300	265,510,300	265,198,440	265,068,935	265,051,115	264,919,515	264,238,650	262,033,725
Profit for the period, SEK m	191	100	159	128	151	108	152	103
Earnings per share for the period, before dilution, SEK	0.67	0.38	0.61	0.49	0.58	0.41	0.59	0.40
Earnings per share for the period, after dilution, SEK	0.66	0.37	0.60	0.48	0.57	0.41	0.58	0.39
Cash flow from operating activities per share, SEK	0.57	0.79	1.45	–0.16	0.39	0.62	1.05	0.34
Equity per share, SEK	9.86	9.95	9.36	8.56	8.04	8.10	7.42	6.95
Share price at the end of the period, SEK	42.30	70.84	86.88	80.40	71.00	63.90	50.20	39.96

1) The number of shares has been restated to reflect the 5:1 share split that was carried out in January 2022.

Reconciliation of key figures not defined in accordance with IFRS

The Company presents certain financial measures in the interim report, which are not defined under IFRS. The Company believes that these measures provide useful supplemental information to investors and the company's management, since they allow for the evaluation relevant trends. Instalco's definitions of these measures may differ from other companies using the same terms. These financial measures should therefore be viewed as a supplement, rather than as a replacement for measures defined under IFRS. Presented below are definitions of measures that are not defined under IFRS and which are not mentioned elsewhere in the interim report. Reconciliation of these measures is provided in the table, below. For definitions of key figures, see page 20-21. As of 1 January 2022, EBITA is no longer presented with an adjustment for revaluation of additional consideration and acquisition costs.

Earnings measures and margin measures

AMOUNTS IN SEK M	Q2 2022	Q1 2022	Q4 2021	Q3 2021	Q2 2021	Q1 2021	Q4 2020	Q3 2020
(A) Net sales	3,102	2,583	2,648	1,989	2,311	1,942	2,078	1,643
(B) EBITDA	303	223	275	214	241	189	231	171
Depreciation/amortisation and impairment of property, plant and equipment and intangible assets (not related to acquisitions)	–53	–50	–49	–44	–42	–37	–41	–31
(C) EBITDA	250	173	227	171	199	152	190	140
Depreciation/amortisation and impairment of acquisition-related intangible assets	–34	–22	–15	–7	–2	–2	0	0
(D) Operating profit/loss (EBIT)	215	151	212	163	197	150	190	140
(B/A) EBITDA margin, %	9.8	8.6	10.4	10.8	10.4	9.7	11.1	10.4
(C/A) EBITA margin, %	8.1	6.7	8.6	8.6	8.6	7.8	9.2	8.5
(D/A) Operating profit/loss, (EBIT), %	6.9	5.9	8.0	8.2	8.5	7.7	9.1	8.5
Capital structure AMOUNTS IN SEK M Calculation of working capital and working capital in relation to net	Q2 2022	Q1 2022	Q4 2021	Q3 2021	Q2 2021	Q1 2021	Q4 2020	Q3 2020
sales
Inventories	119	115	104	76	76	68	62	52
Accounts receivable Contract assets	1,589	1,348	1,448	1,176	1,093	900	995	878
Prepaid expenses and accrued income	862 98	677 77	519 101	637 93	565 67	570 54	407 107	452 56
Other current assets	151	147	127	118	111	99	96	88
Accounts payable	–987	–865	–788	–754	–755	–677	–588	–616
Contract liabilities	–581	–449	–403	–322	–296	–344	–349	–308
Other current liabilities	–458	–684	–784	–549	–489	–399	–431	–293
Accrued expenses and deferred income, including provisions	–651	–623	–580	–490	–529	–487	–476	–369
(A) Working capital	141	–257	–255	–15	–156	–216	–176	–60
(B) Net sales (12-months rolling)	10,322	9,531	8,890	8,319	7,973	7,388	7,122	6,696
(A/B) Working capital as a percentage of net sales, %	1.4	–2.7	–2.9	–0.2	–2.0	–2.9	–2.5	–0.9

AMOUNTS IN SEK M	Q2 2022	Q1 2022	Q4 2021	Q3 2021	Q2 2021	Q1 2021	Q4 2020	Q3 2020
Calculation of interest-bearing net debt and gearing ratio
Non-current, interest-bearing financial liabilities	2,718	2,544	2,209	1,935	1,423	1,204	1,196	1,178
Current, interest-bearing financial liabilities	143	139	137	123	120	112	103	104
Cash and cash equivalents	–497	–973	–695	–438	–323	–404	–386	–308
(C) Interest-bearing net debt	2,365	1,710	1,650	1,620	1,219	911	912	974
(D) Equity	2,618	2,641	2,482	2,269	2,130	2,147	1,960	1,820
(C/D) Gearing ratio, %	90.3	64.8	66.5	71.4	57.2	42.4	46.5	53.5
(E) EBITDA (12-months rolling)	1,015	954	920	876	833	778	739	678
(C/E) Interest-bearing net debt in relation to EBITDA (12-months
rolling)	2.3 times	1.8 times	1.8 times	1.9 times	1.5 times	1.2 times	1.2 times	1.4 times
Calculation of operating cash flow and cash conversion
(F) EBITDA	303	223	275	214	241	189	231	171
Net investments in property, plant and equipment and intangible assets	–13	–11	0	–3	–13	–2	–1	0
Changes in working capital	–103	80	124	–210	–78	34	72	–41
(G) Operating cash flow	187	291	399	1	151	221	302	131
(G/F) Cash conversion %	62	131	145	1	62	117	131	76
(H) Earnings for the period (12-months rolling)	585	548	558	548	523	489	462	417
(H/D) Return on equity, %	23.4	23.0	24.7	25.8	26.0	26.0	26.7	33.7
(I) EBIT	215	151	212	163	197	150	190	140
(J) Financial income	16	8	23	12	8	2	23	9
(K) Total assets	8,840	8,154	7,589	6,594	5,881	5,497	5,228	4,779
(L) Interest-free liabilities	3,176	2,812	2,742	2,253	2,193	2,024	1,957	1,670
(I+J)/(K-L) Return on capital employed, %	15.8	17.0	18.8	20.2	21.2	21.3	19.2	17.0

Signatures

Future reporting dates

Interim Report January – September 2022 9 November 2022 Year-end report 2023 16 February 2023 Interim report January – March 2023 4 May 2023 AGM 2023 5 May 2023 Interim report January – June 2023 22 August 2023 Interim Report January – September 2023 27 October 2023

Board of Directors' assurance

The Board of Directors and CEO ensure that the interim report for the first six months of the year provides a fair view of the Group's operations, position and earnings, and describes significant risks and uncertainties faced by company and the companies belonging to the Group.

Stockholm, 25 August 2022 Instalco AB (publ)

Per Sjöstrand Johnny Alvarsson Camilla Öberg Carina Qvarngård Chairman of the Board Board member Board member Board member

Per Leopoldsson Carina Edblad Robin Boheman

Board member Board member CEO

This report has not been reviewed by the company's auditors.

Presentation of the report

The report will be presented in a telephone conference/audiocast today, 25 August at 14:00 CET via https://tv.streamfabriken.com/instalco-q2-2022 To participate by phone: +46 (0)8-505 583 69.

Note

This information is information that Instalco is required to disclose under the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was made public by the contact person listed below, on 25 August 2022 at 11:00 CET.

Additional information

Robin Boheman, CEO Christina Kassberg, CFO, christina.kassberg@instalco.se Fredrik Trahn, IR, fredrik.trahn@instalco.se +46 (0)70 913 67 96

Definitions with explanation

General	Unless otherwise indicated, all amounts in the report and tables are in SEK m. All amounts in parentheses () are comparison figures for the same period in the prior year, unless otherwise indicated.
Key figures	Definition/calculation	Purpose
Acquired growth in net sales	Change in net sales as a percentage of net sales during the comparable period, fuelled by acquisitions. Acquired net sales is defined as net sales during the period that are attributable to companies that were acquired during the last 12-month period and for these companies, the only amounts that are considered as acquired net sales are their sales up until 12 months after the acquisition date.	Acquired net sales growth reflects the acquired units' impact on net sales.
Cash conversion	Operating cash flow as a percentage of adjusted EBITDA	Cash conversion is used to monitor how effective the Group is in managing ongoing investments and working capital.
Change in exchange rates	The period's change in net sales that is attributable to the change in exchange rates (start of the period compared to the end of the period), as a percentage of net sales during the comparison period.	The change in exchange rates reflects the impact that exchange rate fluctuations has had on net sales during the period.
EBIT margin	Earnings before interest and taxes, as a percentage of net sales.	EBIT margin is used to measure operational profitability.
EBITA	Operating profit/loss (EBIT) before depreciation/amorti sation and impairment of acquisition-related intangible assets.	EBITA provides an overall picture of the profit generated from operating activities.
EBITA margin	Operating profit/loss (EBIT) before depreciation/amorti sation and impairment of acquisition-related intangible assets, as a percentage of net sales.	EBIT margin is used to measure operational profitability.
EBITDA	Operating profit/loss (EBIT) before depreciation/amorti sation and impairment of acquisition-related intangible assets and depreciation/amortisation and impairment of property, plant and equipment and intangible assets	EBITDA, together with EBITA provides an overall picture of the profit generated from operating activities.
EBITDA margin	Operating profit/loss (EBIT) before depreciation/amorti sation and impairment of acquisition-related intangible assets and depreciation/amortisation and impairment of property, plant and equipment and intangible assets, as a percentage of net sales.	EBITDA margin is used to measure operational profitability.
Equity ratio	Equity including non-controlling interests, expressed as a percentage of total assets.	Equity ratio is used to show the proportion of assets that are financed by equity.
Gearing ratio	Interest-bearing net debt as a percentage of total equity.	Gearing ratio measures the extent to which the Group is financed by loans. Because cash and other short-term investments can be used to pay off the debt on short notice, net debt is used instead of gross debt in the calculation.
Growth in net sales	Change in net sales as a percentage of net sales in the comparable period, prior year.	The change in net sales reflects the Groups realised sales growth over time.
Interest-bearing net debt	Non-current and current interest bearing liabilities less cash and other short-term investments.	Interest-bearing net debt is used as a measure that shows the Groups total debt.
Net debt in relation to adjusted EBITDA	Interest-bearing net debt compared to EBITDA provides a measure of liquidity for net liabilities in relation to cash-generating earnings in the business. Net debt on the closing date and EBITDA are calculated as the most recent 12-month period.	The measure provides an indication of the organisa tion's ability to pay its debts.
Operating cash flow	EBITDA less investments in property, plant and equip ment and intangible assets, along with an adjustment for cash flow from change in working capital.	Operating cash flow is used to monitor the cash flow generated from operating activities.

Key figures	Definition/calculation	Purpose
Operating profit/loss (EBIT)	Earnings before interest and taxes.	Operating profit/loss (EBIT) provides an overall picture of the profit generated from operating activities.
Order backlog	The value of outstanding, not yet accrued project revenue from received orders.	Order backlog provides an indication of the Group's remaining project revenue from orders already received.
Organic growth adjusted for currency effects	The change in net sales for comparable units after adjustment for acquisition and currency effects, as a percentage of net sales during the comparison period.	Organic growth in net sales does not include the effects of changes in the Group's structure and exchange rates, which enables a comparison of net sales over time.
Return on capital employed	Operating profit/loss (EBIT) plus financial income divided by capital employed (total assets less interest-free liabili ties). The components are calculated as the average over the last 12 months.	The purpose is to analyse profitability in relation to capital employed.
Return on equity	Earnings for the period on a rolling 12-month basis divided by average total equity at the end of the period.	Return on equity is used to analyse profitability, based on how much equity is used.
Working capital	Inventories, accounts receivable, earned but not yet invoiced income, prepaid expenses and accrued income and other current assets, less accounts payable, invoiced but not yet earned income, accrued expenses and deferred income and other current liabilities.	Working capital is used to measure the company's ability to meet short-term capital requirements.
Working capital as a percentage of net sales	Working capital at the end of the period as a percentage of net sales on a 12-month rolling basis.	Working capital as a percentage of net sales is used to measure the extent to which working capital is tied up.

Instalco in brief

Instalco has a decentralised structure, where operations are conducted in each unit, in close cooperation with customers and with the support of a very streamlined central organisation. The Instalco model is designed to benefit from the advantages of both strong local ties and joint functions.

36%

NET SALES BY MARKET AREA

Instalco AB (publ) Lilla Bantorget 11 111 23 Stockholm info@instalco.se