Welcome everyone to the presentation of Instalco this January to June 2017 report. With us today to present the results, we have our CEO, Per Sjöstrand, and our CFO, Lotta Sjögren. After the presentation, there will be a Q&A session. With that said, I hand over to Per for the presentation. Please begin.
Thank you. Welcome, everyone. First of all, I want to give you a short overview, inside here, some updates, who we are and what we do. We are offering electrical ventilation, industrial piping, heating, plumbing, and cooling services in the three Nordic countries, Sweden, Norway, and Finland. You can see our net sales distribution there for the first half year. Turning to page 3, highlights for this quarter. Net sales growth of 30%. We have strong margins, 8.9%, and we have an order backlog increase of 48%. We also have taken expansion and profitability measures in Norway, and we have an acquisition in Bergen, in Norway, during this quarter.
We also see a continued strong market, which might leads to increasingly difficult to find sufficient workforce, of course. The market is very strong, and I will say strong in Sweden, Norway, and also in Finland, at least where we are in Helsinki. Net sales, you can see there, if you could see to the right, for yourself. Turning to page 4, if you look into how we have grown with a bridge from Q2 2016, acquisitions, 38.6%, and organic minus 9%. I think I can stop there with why nine percent organic impact organic growth by 9%?
First of all, we have many large projects that was completed or was going on during the second quarter last year. It means it is hard to compare organic growth year-over-year. We also this year has many of our companies showing organic growth, but four, five units with impact growth, organic growth, and with rather large sums. For example, we have a standalone projects that had over of SEB going on last year. The project itself had turned over 100 million Swedish crowns. It's a little bit difficult to compare just quarters to quarters. We are also focused on profitability in Norway.
If you remember, we had some, the first quarter, we had a weak also a weak profitability in Norway, and we have taken an action to that. That means that we that the organic growth are impacts. We have right prioritized profitability, I would say, in Norway. Looking at the first half year, this first half year, we have increased the organic growth to about 2%. You can also see at page 4 that we used to say that quarter four is the strongest, and quarter two is the second strongest, and so on.
You can see in 2016, that quarter two and quarter four was almost the same, and that's rather unusual, I would say. We had a strong quarter two in 2016. Okay, next slide, page 5. The order backlog, I'm very satisfied with the backlog. Strong development year-to-year, 48%, which where 30% came from the acquired companies and almost 18% in comparable units. I'm very satisfied with the order backlog. The order backlog rate is about 0.9, the results. That's strong order backlog. Looking into Sweden on page 6, we have a solid market demand and strong results. As we, as I said, numbers, large projects completions last year impacted on our group.
The net sales was about 19% growth and 3% consumer increased decrease, and 21.9% in private group. Strong margin of 10% and all the backlog also, as I said, it is very stable and I'm very satisfied with that. As for the Nordics, on page 7, also stable markets. As I said, focus on profitability, growth fully related to related to acquisitions. We started the Rest of Nordics in March 2016. Also a strength on the EBITDA margin, we are now at 8.7%, and all the backlog growth of 120%. Acquisitions made on page 8. We, this quarter, we have acquired Frøland & Noss in Bergen.
And after end of quarter, we have also acquired Kollektiv et in Oslo region, and you can see there the estimate yearly sales. Okay, turning page, just an update over our financial targets and dividend policies. Growth at 5% over time, organic sales growth. Margins 8%. In capital structure, net in relation to adjusted EBITA, shall not exceed a ratio of 2.5. Tax conversion 100%, and dividend policy 30% on net profits. And some sort of summary, I would say strong margins, or very strong margins, and a strong order backlog, profitability in Rest of Nordics on track, and a solid development in Sweden.
We've made successful acquisitions, and I think we have done and will do, continue to push, pursue high-quality companies in leading positions and documented profitability and growth. I think we have succeeded in that. Okay, perfect. We've reached the end of the slides, and we can open up for Q&A.
Thank you. Ladies and gentlemen, if you wish to ask a question, please dial 01 on your telephone keypad now to enter the queue. Once your name is announced, you can ask your question. There'll be a brief pause now while we register your questions. Once again, if there are any questions on the line, please dial 01 on your telephone keypads now. Okay, our first question comes from Robin Nyberg, Carnegie. Please go ahead, your line is open.
Hello, it's Robin Nyberg from Carnegie. One question regarding the organic growth, which was quite weak in the second quarter, but you had some explanations there. I'm curious to hear what you say about the organic growth outlook for the coming quarters. Should we assume that these large projects also mean that it's going to be slower, or do you expect positive organic growth in the second half? Thanks.
Of course, there can be some postponed projects or delayed projects in the portfolio, but or in the backlog. I think I can say that many of them has started now. I think that's what I can say. You can take your conclusions from that, I think. We have had postponed and delayed projects, but.
Okay, thank you. Second question regarding the backlog. How would you assess the backlog quality? If you compare the mix in the backlog, in terms of large versus smaller projects, how is it looking now versus previously?
I think we have had the opportunity or the market is very strong. We can select projects more today than ever. The size of them, I think, is almost the same. It varies about from SEK 1 million up to SEK 50 million project. I think we can select projects. We have a very strong market. Hopefully we have the right ones.
Okay, thanks. Last question regarding the M&A. You comment that you have a good M&A pipeline. What about the multiples? Are those roughly unchanged or any changes?
No changes.
Okay, that's all. Thank you.
Thank you.
Thank you. Once again, if there are any further questions, please dial 01 on your telephone keypads now. As there seem to be no further questions, I'll hand back to our speakers for the closing comments.
Okay, thank you everyone for listening in, and we'll speak again in the third quarter presentation. Thank you.
Thank you very much.