Assemblin Q1 2020 Assemblin Q2 2020 Investor presentation, May 13, - PowerPoint PPT Presentation

Assemblin Q1 2020 Assemblin Q2 2020 Investor presentation, May 13, 2020 Investor presentation, July 17, 2020

Philip Carlsson Mats Johansson CFO, Assemblin President and CEO, Assemblin

Assemblin is an end-to-end Nordic installation and service partner Excellence in many areas of technology Strong local presence Financial performance, LTM Q2 2020 NET SALES SEK 10.2 bn ADJ. EBITA-MARGIN 5.6% CASH CONVERSION 125% ORDER BACKLOG SEK 8.3 bn SALES PER BUSINESS AREA Sweden El 41.2 % 81% Sweden VS 26.2 % Sweden Ventilation 13.2 % 6% Norway 13.3 % Finland 6.1 % 13% SALES PER TYPE OF ASSIGNMENT • Security • Electrical • 100+ locations • Industrial pipes • Heating and • 5,900 employees Service 39% • District heating sanitation • 20,000+ clients Projects 61% • Cooling • Ventilation • 3,000 on-going • Sprinklers • Automation projects • Electrical • Data and • 100,000 service workshop and telecom field service assignments

1 Top 3 Nordic player 7 2 focused on regional leadership Experienced management team Specialist staff delivering value- Experienced management team Execution excellence partnering up with a supportive added technical installation and leading a value-oriented business delivered by local branch shareholder service managers and specialist staff 6 3 Solid deleveraging Solid deleveraging High sales visibility prospects from Project backlog and prospects KEY INVESTMENT HIGHLIGHTS recurring Services 5 4 Established track-record Resilient and agile Resilient and agile of improving margin and FCF business model business model

Our journey so far

Key highlights Q2 2020: ”Improved earnings and strong cash flow” FINANCIAL HIGHLIGHTS OPERATIONAL HIGHLIGHTS +3.8% • • Net sales SEK 2,597 m Managing the spread and effects of the Corona virus - adaption to a new reality • Order intake SEK 2,818 m 14.5% • Continued focus on profitability • Adj EBITA SEK 136 m • Increased focus on sales and marketing • Adj EBITA margin 5.2 % +0.7 pp • M&A • Cash conversion LTM 125% • Two acquisitions in Q2 following one acquisition in Q1 and a further three acquisitions in July within RCE in Stockholm. • Total revenues of SEK167m acquired with strong margins • Continued pipeline of mid-size deals going forward

Group development - Net sales and adjusted EBITA margin SALES SEKm / GROWTH % ADJ EBITA SEKm / ADJ EBITA MARGIN % Key highlights in Q4 COMMENTS • Growth continues despite 6 000 300 closing certain branches and +4.4% 4.9% Corona (5.6% excluding FX 5 000 250 effects) • Approx. 1/3 organic and the 4 000 200 5.2% +3.8% remainder acquired 3 000 • 150 Acquisitions adding to growth primarily within service 2 000 100 • Margin increase driven by the accelerated profitability 1 000 50 programme and acquisitions despite some Corona-related 0 0 Q2 Q2 H1 H1 headwinds Q2 Q2 H1 H1 2019 2020 2019 2020 2019 2020 2019 2020

Group development - Order intake and order backlog ORDER INTAKE SEKm / GROWTH % ORDER BACKLOG SEKm / GROWTH % COMMENTS • Order intake strong in Q2 6 000 -4.5% leveraging strong customer 9 000 8.9% relationships 8 500 5 000 • The YTD comparison skewed by 8 000 the Bypass project (SEK 520m) 4 000 in Q1-19 +14.5% 7 500 • Several orders in pipeline but 3 000 7 000 increased uncertainty due to 2 000 Corona 6 500 • Order backlog growth includes 6 000 1 000 Q3-19 large hospital orders 5 500 0 Q2 Q2 H1 H1 5 000 2019 2020 2019 2020 Q2 2019 Q2 2020

Business area development in Q2 SWEDEN ASSEMBLIN EL ASSEMBLIN VS ASSEMBLIN VENT . ASSEMBLIN NORWAY ASSEMBLIN FINLAND 41% 26% 13% 13% 6% Q2 LTM Q2 LTM Q2 LTM Q2 2020 LTM Q1 2020 LTM 2020 2020 2020 Net sales, SEK m 1,056 4,187 705 2,710 371 1,351 346 1,392 144 632 Growth, % 0.7 9.1 5.5 10.7 3.6 -2.0 12.0 14.2 5.3 10.4 Adj EBITA, SEK m 56 232 42 158 22 78 24 95 0 11 Adj EBITA margin, % 5.3 5.5 6.0 5.8 5.8 5.7 7.0 6.9 -0.1 1.8 FTE 2,800 2,826 1,395 1,450 554 555 721 693 304 346 • • • • Acquired and organic Unit closures impact • Stable net sales and Stable net sales and Strong Q2 margin growth and strong margin growth improvement increased margins • • • margin improvement • Order backlog over Decreased margin Order intake is Strong order intake • • Increasing order intake due to project write stable 100% of LTM High share of • and backlog down Continuing to make revenue service drive • Pro-active measures Corona-impact acquisitions offset Corona impact Strong momentum offset Corona impact

Business area development in Q2 SWEDEN ASSEMBLIN EL ASSEMBLIN VS ASSEMBLIN VENT . ASSEMBLIN NORWAY ASSEMBLIN FINLAND 41% 26% 13% 13% 6% Q2 LTM Q2 LTM Q2 LTM Q2 2020 LTM Q2 2020 LTM 2020 2020 2020 Net sales, SEK m 1,056 4,187 705 2,710 371 1,351 346 1,392 144 632 Growth, % 0.7 9.1 5.5 10.7 3.6 -2.0 12.0 14.2 5.3 10.4 Adj EBITA, SEK m 56 232 42 158 22 78 24 95 0 11 Adj EBITA margin, % 5.3 5.5 6.0 5.8 5.8 5.7 7.0 6.9 -0.1 1.8 FTE 2,800 2,826 1,395 1,450 554 555 721 693 304 346 • • • • Acquired and organic Unit closures impact • Stable net sales and Stable net sales and Strong Q2 margin growth and strong margin growth improvement increased margins • • • margin improvement • Order backlog over Decreased margin Order intake is Strong order intake • • Increasing order intake due to project write stable 100% of LTM High share of • and backlog down Continuing to make revenue service drive • Pro-active measures Corona-impact acquisitions offset Corona impact

Consolidated net LTM Pro forma adjusted EBITDA leverage ratio 3.3x COMMENTS 800 • Reported EBITDA is adjusted to 700 exclude the effect of implementing 25 18 IFRS16 600 • Items affecting comparability of SEK 254 500 -2m in the quarter (SEK 9m YTD) 150 mainly relating to sale of assets from 400 closed branches in Finland 701 658 • Pro forma acquisition adjustments 300 555 reflects an estimate of the full 200 twelve-month impact of M&A completed prior to 30 June 2020 100 • The full year effect of the 0 accelerated profitability program is EBITDA - Lease Items EBITDA EBITDA - EBITDA - Pro forma Reported accounting Affecting excluding Proforma Proforma Adjusted SEK 25 million adjustments Comparability items Acquisition Operational EBITDA affecting adjustments improvement comparability program

Cash flow and net debt SEK m LTM Q2 2020 COMMENTS Adjusted EBITDA 658 • Free cash flow especially robust due to increased 157 Change to NWC adj for non cash items invoicing/cash focus -107 • Net Capex, incl vehicle leasing capex LTM Q2-20 cash conversion (free cash flow over adjusted 709 Free Cash Flow EBITA) is 125% as the seasonal 125% Cash conversion (FCF / Adj. EBITA) increase in NWC has been smaller than typically the case • Consolidated leverage 2,310 Consolidated net leverage decreasing from 4.3x LTM Q3- 701 Pro forma Adjusted EBITDA 2019 to 3.3x due to strong 3.3x cash flow and increasing Consolidated Net Leverage Ratio EBITDA

To conclude: Improved earnings and strong cash flow • A new reality in the light of Corona with limited financial impact • Stable sales despite closure of units 2019 and Corona • Continued strong order intake • Positive effects from the accelerated profitability programme continue to drive margin expansion • Strong cash flow and high liquidity • A favourable position entering into a toughening market

Q&A

Assemblin. So that life runs smoothly everyday. We use air, energy and water to make buildings work and make people feel comfortable. That is our mission and our driving force in all our assignments – big and small.

Our expertise and our commitment are our strengths • Deep technical skills • Geographical diversification – close to our customers • Coordination of installation disciplines • From design and installation to service • 5,900 dedicated employees • Proven processes and methods

Our vision is to create sustainable and smart installations, for people and by people.