Slide 1: Presentation – Q2 2023
Presentation – Q2 2023 Presentation – Q1 2023 1927 July 2023 April 2023
Slide 2: Second quarter: increased EBITA, strong cash flow and decreased leverage
Second quarter: increased EBITA, strong cash flow and decreased leverage Net sales ▪ Adj EBITA +12% (+9% organically) SEK 10,001m ▪ Strong EBITA growth in Construction & growth +19% Services and Industry ▪ Plantasjen negatively affected by the weak NOK ▪ Net sales +19%, whereof organic +7% ▪ Continu
Slide 3: Group financials Q2 2023
Group financials Q2 2023 Net sales, SEKm Adjusted EBITA, SEKm +4% +15% +19% +12% 10,001 1,035 1,078 958 963 8,420 6,994 6,525 Adjusted EBITA 14.7% 14.8% 11.4% 10.8% margin % Q2 2020 Q2 2021 Q2 2022 Q2 2023 Q2 2020 Q2 2021 Q2 2022 Q2 2023 3
Slide 4: Business Areas
Business Areas
Slide 5: Construction & Services: Strong growth in net sales and adjusted EBITA
Construction & Services: Strong growth in net sales and adjusted EBITA We build and maintain a sustainable society Comments • Order backlog on record high level • Net sales growth 20%, whereof organic 19% • Continued strong earnings development in the construction companies with limited exposure in
Slide 6: Consumer: Strong quarter in Plantasjen
Consumer: Strong quarter in Plantasjen Provide a better and easier life for consumers Comments • Net sales declined -3%, whereof -1% organic, driven by lower sales in KVD (-16%) in line with plan • EBITA SEK 581m (587). Plantasjen’s EBITA SEK 543m (565), negatively affected by the weak NOK • EBITA-m
Slide 7: Industry: Strong EBITA growth
Industry: Strong EBITA growth Building industrial market leaders, based in the Nordics exporting to the world Comments • Net sales increased 46%, whereof -8% organic • Lower net sales in Speed Group and Oase Outdoors • Adjusted EBITA SEK 258m (180) • Adjusted EBITA-margin 9.2% (9.4%) and LTM 9.3% •
Slide 8: Financials
Financials
Slide 9: Net sales and adjusted EBITA
Net sales and adjusted EBITA SEKm SEKm LTM 33,052 LTM 2,153 +19% +12% 10,001 1,078 1,035 8,420 963 6,994 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2021 2022 2023 2021 2022 2023 Net sales growth of 19% in the quarter whereof 7% Adjusted EBITA growth of 12% in the quarter organic growth Ad
Slide 10: Cash flow from operating activities
Cash flow from operating activities SEKm LTM 3,288 Cash flow from operating +92% activities, last 12 months, SEKm Q2 2023 Q2 2022 FY 2022 2,024 EBIT, LTM 2,011 1,516 1,618 Adjustment for non-cash items 1,394 1,051 1,227 1,363 1,054 Received dividends and -409 -409 -476 financial items, net Income ta
Slide 11: Net working capital
Net working capital SEKm NWC 4QTR average Net working capital, SEKm Q2 2023 Q2 2022 FY 2022 % LTM net sales +4% Inventories 2,401 2,487 2,477 2,906 2,794 Trade receivables 4,023 3,351 4,127 Contract assets 1,046 845 1,250 Accounts payable 2,804 2,872 2,951 1,704 Contract liabilities 1,760 1,017 1,75
Slide 12: Strong organic EBITA growth in the quarter
Strong organic EBITA growth in the quarter Net sales bridge, SEKm 10,001 Comments -50 -1 Comments 561 Net sales 1,071 • Strong organic net sales growth in the 8,420 quarter • Net sales up 19%, of which 13% acquired and 7% organic Q2 Acquired/ Organic FX Other Q2 2022 disposed 2023 EBITA Adj EBITA br
Slide 13: Increased EPS – improved earnings after tax
Increased EPS – improved earnings after tax LTM EPS, SEK Comments • LTM EPS increased 3% • Improved EBITA +3% • EPS Q2 2023, SEK 1.79 (1.83) 2.16 2.22 1.96 • Finance net -207 MSEK (-100) Q2 2021 Q3 Q4 Q1 Q2 2022 Q3 Q4 Q1 Q2 2023 Diluted EPS continuing operations 13
Slide 14: Leverage development
Leverage development Leverage Comments Comments 2.5x 2.2x • Leverage at 1.6x in Q2 2023, in the lower target range (1.5x – 2.5x) 1.6x • Decreased leverage in the quarter due to strong cash flow and 0.9x 0.9x increased LTM EBITDA 0.6x • Net debt SEK 3,750m (1,006) 0.1x -0.5x -0.7x Q2 2021 Q3 Q4 Q1 Q2
Slide 15: ROCE
ROCE LTM ROCE Comments • Down from 10.5% to 10.3% compared to last year -2% 10.3% 10.5% 10.3% • Negative effect as a result of acquisitions where capital employed has an immediate effect in the balance sheet while EBITA gradually improves (LTM) Q2 2021 Q3 Q4 Q1 Q2 2022 Q3 Q4 Q1 Q2 2023 ROCE excludin
Slide 16: Financial targets
Financial targets Dividend payout EBITA Net Debt / EBITDA 30–50% 3 Billion SEK 1.5 – 2.5x of profit after tax Net debt in relation to EBITDA The dividend payout ratio should normally range from 1.5 EBITA is to amount to at least should amount to 30–50% of to 2.5x, excluding financial SEK 3 billion b
Slide 17: Final Remarks
Final Remarks
Slide 18: A strong quarter for Ratos
A strong quarter for Ratos A group of market leaders with a strong culture and ▪ Adj EBITA +12% (+9% organically) being part of something ▪ Net sales +19%, whereof organic +7% larger ▪ Good order intake and record high order backlog ▪ Strong cash flow and decreased leverage ▪ Our transformation to a
Slide 19: Ratos is on track to reach SEK 3bn EBITA goal by 2025
Ratos is on track to reach SEK 3bn EBITA goal by 2025 3,000 +47% 1,966 Organic EBITA 1,802 growth 1,468 +86% 701 425 2018 2019 2020 2021 2022 1.6x in Q2 report 2025 3.4x 2.5x *Based on current structure, all exit gains, sale of property & revaluation of D&B shares excluded
Slide 20: Q&A
Q&A RATOaS