Ratos Ab Class A · OMXSTO:RATO_A
Ratos Ab Class A — Q3 2022 Earnings Presentation
20 slides from Ratos Ab Class A's earnings presentation, Oct 24, 2022
Slide 1: Presentation – Q3 2022
Presentation – Q3 2022 24 October 2022
Slide 2: Strong earnings and important steps towards a more homogenous group
Strong earnings and important steps towards a more homogenous group Net sales ▪ Adj EBITA +18% and EBITA +100% 7,039 MSEK ▪ Net sales up 31% whereof organic 7% growth 31% ▪ Strong development in the acquired companies ▪ Strong order backlog and order intake during the quarter ▪ LTM EPS increased by
Slide 3: Group financials Q3 and YTD 2022
Group financials Q3 and YTD 2022 Comments • Net sales growth Q3 31% 2022 2021 2022 2021 • YTD net sales growth 29% MSEK Q3 Q3 YTD YTD • Strong cash flow in Q3 and YTD Net Sales 7,039 5,371 21,680 16,797 • Adj EBITA increase with 18% in Q3 • Adj EBITA YTD 5% Adj EBITA 432 365 1,648 1,576 • Overall st
Slide 4: Business Areas
Business Areas
Slide 5: Construction & Services: Strong net sales and EBITA growth
Construction & Services: Strong net sales and EBITA growth We build and maintain a sustainable society Comments • Strong order intake and backlog • Net sales growth 54%, whereof organic 17% • Well positioned in the current uncertain environment with partnering projects in the construction business a
Slide 6: Consumer: Impacted by lower EBITA
Consumer: Impacted by lower EBITA Provide a better and easier life for consumers Comments • Net sales growth of 3%, whereof -1% organic, driven by lower sales in Plantasjen (-9% organic) • EBITA 25 MSEK (105), Plantasjen’s contribution negatively impacted by higher costs for energy and warehouse log
Slide 7: Industry: EBITA growth because of the Knightec acquisition
Industry: EBITA growth because of the Knightec acquisition Building industrial market leaders, based in the Nordics who exporting to the world Comments • Net sales increased 16% whereof -4% organic • Lower wind segment sales and increased production costs in Diab • Ongoing restructuring of Diab star
Slide 8: Our acquisition journey - aiming for a more homogeneous group
Our acquisition journey - aiming for a more homogeneous group 2021 2021 2022 2022 Sales EBITA Sales EBITA Sales EBITA Sales EBITA 1,378 77 2,234 368 982 85 960 120 MSEK MSEK MSEK MSEK MSEK MSEK MSEK MSEK All numbers are LTM per 30 September 2022 8
Slide 9: Semcon can be yet another step for a more homogenous group
Semcon can be yet another step for a more homogenous group M&A Activity Q3 2022 • Tender offer Semcon 2022 • Accelerated Ratos journey to streamline the group and focus on balance sheet light companies with Sales EBIT good profitability • Create a strong foothold in value driven consultancy 1,800 18
Slide 10: Sustainability
Sustainability - a prerequisite for profitable growth
Slide 11: Sustainability Q3 2022: Well-positioned to meet broader definitions on sustainability in upcoming EU-legislation
Sustainability Q3 2022: Well-positioned to meet broader definitions on sustainability in upcoming EU-legislation HENT to build Giga Arctic battery factory School collaboration initiative by Knightec ▪ Construction of the 120,000 m2 battery factory in Mo I ▪ In 2008, Knightec launched a school Rana,
Slide 12: Financials
Financials
Slide 13: Group financials
Group financials 2022 2021 2022 2021 Comments MSEK Q3 Q3 Q3 LTM FY • Net debt increased as a result of Net debt 1,824 -1,971 335 acquisitions and high inventory Net financial items -63 -86 -356 -350 levels Effective tax rate 17.4% 51.3% 10.4% 12.7% • Net financial cost decreased, due lower effective
Slide 14: Leverage development
Leverage development Leverage and adj EBITA* development (lease adjusted) Comments 2.5x Comments 2,500 • Leverage is still well within target 1.9x range and proforma for a 2.0x 1.5x 1,500 successful Semcon bid the 1.2x 1.1x leverage would be 1.9x MSEK 1.0x 0.8x 0.7x 0.5x 500 0.5x 0.2x • Financing th
Slide 15: Acquired growth for the quarter account for 20% of the increased net sales
Acquired growth for the quarter account for 20% of the increased net sales Net sales bridge 7,039 Comments -12 Comments 243 381 • Strong growth from acquisitions • Net sales up 31%, of which 20% 1,056 acquired, 7% organic and 5% FX 5,371 Q3 Acquired/ Organic FX Other Q3 2021 disposed 2022 Adj EBITA
Slide 16: Increasing EPS and stable return on capital employed, despite challenges
Increasing EPS and stable return on capital employed, despite challenges LTM EPS +70% Comments 2.73 • LTM EPS increased 70% as a result of increased earnings levels 1.61 0.95 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2020 2021 2022 LTM ROCE 10.9% 10.6% • Stable ROCE 10.6% compared to 10.9% last year despite 6.5% c
Slide 17: Final Remarks
Final Remarks
Slide 18: Strong earnings and important steps towards a more homogenous group
Strong earnings and important steps towards a more homogenous group A group of market leaders with a strong culture and ▪ Third quarter shows strong EBITA-, being part of something cashflow- and growth figures in a larger quarter with a general strong demand ▪ Strong balance sheet, strong order inta
Slide 19: Q&A
Q&A RATOS
Slide 20: The leading company builder in the Nordics
The leading company builder in the Nordics A group of market leaders A clear culture Part of something larger Decentralized structure Ratos is a sustainable long-term owner with no exit horizon It’s all about people Gain benefits of the larger group through contacts and network We own companies that