Slide 1: Telephone conference
Telephone conference Magnus Agervald 17 February 2017
Slide 2: High level of transaction activity
High level of transaction activity ▪ High growth but lower earnings trend ▪ Impairment of book value ▪ Five acquisitions − Serena Properties, airteam, Gudrun Sjödén Group, Oase Outdoors and Plantasjen ▪ Divestment of − Euromaint, Mobile Climate Control, AH Industries, and partial divestment of Bioli
Slide 3: Changed company portfolio with growth potential
Changed company portfolio with growth potential Sales breakdown by segment*, at 31 December 2016 Net sales trend* at 31 December 2016 (Local currency) Healthcare/Life % Corporate Science 2% Properties services 2% 1% 50 40 Industry 10% Consumer goods/retail 30 34% 20 Technology, 10 Media, Telecom 12%
Slide 4: Sales growth and change initiatives
Sales growth and change initiatives ▪ Unchanged and generally stable market situation in the Nordic region ▪ Continued uncertainty in the offshore market − Restructuring and layoffs to boost competitiveness − Growth driven by individual projects ▪ Focus on growth initiatives and add-on acquisitions
Slide 5: Companies' performance Q4 2016
Companies’ performance1) Q4 2016 Companies in their entirety Ratos’s holding Sales in the 9,827 +32% 6,058 +20% portfolio The portfolio’s 94 -62% 53 -67% EBITA Adjusted EBITA2) 367 -16% 223 -7% in the portfolio 1) Comparison with corresponding period last year and for comparable units. 2) Excluding
Slide 6: Companies' performance Jan-Dec 2016
Companies’ performance1) Jan-Dec 2016 Companies in their entirety Ratos’s holding Sales in the 35,200 +19% 22,794 +13% portfolio EBITA 1,406 -22% 1,005 -19% in the portfolio Adjusted EBITA2) 2,027 -5% 1,384 -2% in the portfolio 1) Comparison with corresponding period last year and for comparable uni
Slide 7: Company overview – development status
Company overview – development status GOOD DEVELOPMENT DEVIATIONS CHALLENGES HENT Aibel MID CAP KVD Bisnode Ledil Diab Nebula HL Display Plantasjen 48% Share of adjusted EBITA 39% Share of adjusted EBITA SMALL CAP airteam GS-Hydro Gudrun Sjödén Group Jøtul Oase Outdoors Serena Properties Speed Group
Slide 8: Company overview – development status
Company overview – development status GOOD DEVELOPMENT DEVIATIONS CHALLENGES Sales +20% Sales +12% MID CAP EBITA +7% EBITA -21% Adj. EBITA +22% Adj. EBITA -8% Adj. EBITA marg +6.5% (6.4) Adj. EBITA marg +6.2% (7.5) 48% Share of adjusted EBITA 39% Share of adjusted EBITA SMALL CAP Sales +14% Sales -1
Slide 9: High activity level in the transaction market
High activity level in the transaction market ▪ Continued good access to bank financing ▪ Ratos has a favourable financial position ▪ High activity level in transactions − Five company acquisitions − Serena Properties, airteam, Oase Outdoords, Gudrun Sjödén Group and Plantasjen − Divestment of Eurom
Slide 10: Acquisition of Plantasjen, leading retail chain for plants and accessories
Acquisition of Plantasjen, leading retail chain for plants and accessories Facts about Plantasjen ▪ Agreement to acquire 99% of the shares Sales* NOK 3,700m signed in September – EV approx. NOK 2.9 Adjusted EBITDA* NOK 370m No. of employees Approx. 1,200 billion Head office President Oslo Jon Abraha
Slide 11: Plantasjen is moving to focus on life with plants in all channels
Plantasjen is moving to focus on life with plants in all channels Plantasjen Grocery Garden chains centre Garden High flow Life with DIY Centre formats Plants chains E- Other commerce outlets 17 Feb 2017 11
Slide 12: Outlook for 2017
Outlook for 2017 ▪ Cautious macroeconomic view with shifting market trend − Continued weak development within offshore ▪ Difficult-to-assess political situation and the impact it could have on the economy 17 Feb 2017 12
Slide 13: 150 years of entrepreneurship, operational development and community involvement
150 years of entrepreneurship, operational development and community involvement