Slide 1: Presentation Q1 2024
Presentation Q1 2024 29 April 2024 .
Slide 2: First quarter: A strong start to 2024 in a seasonally small quarter
First quarter: A strong start to 2024 in a seasonally small quarter • EBITA +11% Net sales flat • EBITA-margin 4.6% (4.1) SEK 7,825m • EBITA growth in all Business Areas • Calendar effect had a negative impact on Industrial Services • Net sales flat at +0.1%, whereof organic -0.8% • Cash flow of SEK
Slide 3: Updated financial segment reporting
Updated financial segment reporting Industry Construction & Services Consumer Industrial Services Product Solutions Critical Infrastructure Construction Consumer 3
Slide 4: Group financials Q1 2024
Group financials Q1 2024 Net sales, SEKm Adjusted EBITA, SEKm +0.1% +11% +21% +27% 7,817 7,825 359 324 6,220 253 4,432 176 Adjusted 4.0% 4,1% 4,1% 4.6% EBITA margin % Q1 2021 Q1 2022 Q1 2023 Q1 2024 Q1 2021 Q1 2022 Q1 2023 Q1 2024 4
Slide 5: Business Areas
Business Areas 5 .
Slide 6: Ratos Group and Business areas
Ratos Group and Business areas Net sales, EBITA and EBITA-margin Q1 Q1 Change Net sales, SEKm 2024 2023 % Industry 2,714 2,728 -1% Construction & Services 4,269 4,259 0% Consumer 843 830 2% Elimination of internal net sales -2 -0 Net sales 7,825 7,817 0% Q1 Q1 Change EBITA, SEKm 2024 2023 % Industry
Slide 7: Industry: EBITA growth and EBITA-margin at 11.3%
Industry: EBITA growth and EBITA-margin at 11.3% Segments: Industrial Services and Product Solutions Comments Net sales LTM +20% SEKm 10,548 • Net sales decreased -0.5%, whereof -6.8% 8,754 organic and 5,7% structural 6,672 • Low net sales in Diab, Oase Outdoors and Speed Group • EBITA SEK 307m (303
Slide 8: Segment financials - Industry Q1 2024
Segment financials - Industry Q1 2024 Industrial Services Net sales SEK 1,416m (1,472), -4% Share of total group sales 18% EBITA SEK 140m (146) EBITA-margin 10% (10%) EBITA adjusted for calendar effect SEK 153m, EBITA-margin 11% Product Solutions Net sales SEK 1,310m (1,256), +4% Share of total grou
Slide 9: Construction & Services: Continued top-line and EBITA growth
Construction & Services: Continued top-line and EBITA growth Segments: Construction and Critical Infrastructure Comments Net sales LTM Order backlog Order intake LTM 14,755 SEKm +4% SEKm 16,629 17,308 30,254 30,231 • Net sales growth 0.2%, whereof organic 27,916 growth 2.4% 11,516 • Continued demand
Slide 10: Segment financials – Construction & Services Q1 2024
Segment financials – Construction & Services Q1 2024 Critical Infrastructure Net sales SEK 1,231m (900), +37% Share of total group sales 16% EBITA SEK 164m (161) EBITA-margin 13% (18%) Order intake* SEK 1,807m (798) Order backlog* SEK 8,699m (7,891) Construction Net sales SEK 3,039m (3,359), -10% Sh
Slide 11: Consumer: Volume growth and EBITA improvement
Consumer: Volume growth and EBITA improvement Segment: Consumer Comments Net sales LTM SEKm -3% • Net sales increased 1.6%, whereof 2.7% 6,152 6,090 5,901 organic, mainly driven by Plantasjen in a seasonally small quarter • EBITA SEK -194m (-213), improvement of 9% • EBITA-margin -23.0% (-25.6%) and
Slide 12: Financials
Financials 12 .
Slide 13: Net sales and adjusted EBITA
Net sales and adjusted EBITA SEKm LTM 33,756 SEKm LTM 2,279 +0.1% +11% 7,817 7,825 6,220 324 359 253 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2022 2023 2024 2022 2023 2024 • Net sales growth of +0.1% in the quarter whereof • Adjusted EBITA growth of 11% in the quarter -0.8% organic grow
Slide 14: Cash flow from operating activities
Cash flow from operating activities SEKm LTM 3,631 Cash flow from -127% operating activities, SEKm Q1 2024 Q1 2023 FY 2023 EBIT 329 285 3,010 Adjustment for non-cash 382 423 565 items Received dividends and 159 -16 -430 financial items, net 507 Income tax paid -123 -132 -316 Change in NWC -884 -54 1
Slide 15: Net working capital
Net working capital SEKm NWC 4QTR average % LTM net sales Net working capital, 2024 2023 2023 -63% SEKm Mar Mar Dec 1.373 Inventories 2,263 2,661 1,868 1.018 Trade receivables 3,476 3,640 3,277 4.0% Contract assets 645 1,139 725 509 Accounts payable 3,017 2,757 2,803 2.2% 1.3% Contract liabilities 1
Slide 16: Continued EBITA growth
Continued EBITA growth Net sales bridge, SEKm 156 Net sales • Acquired growth of 2% in the quarter -63 • Negative organic sales growth of -1% in the quarter driven by Construction, Industrial 7,817 0 7,825 Services and Product Solutions -85 • Negative FX-effects of -1% Q1 2023 Acquired/disposed Orga
Slide 17: Leverage, ROCE and ROIC
Leverage, ROCE and ROIC Leverage development Leverage Leverage reported Leverage adjusted • Leverage at 0.8x in Q1 2024, below the target range (1.5x – 2.5x) 2.5x • Leverage at 1.4x excluding reversal of write-down 2.2x of the holding in Aibel • Increased leverage in the quarter due to increased net
Slide 18: Financial targets
Financial targets EBITA Net Debt / EBITDA Dividend payout SEK 3 billion 1.5-2.5x 30-50% of profit after tax The dividend payout ratio EBITA is to amount to at least Net debt in relation to EBITDA should amount to 30-50% of SEK 3 billion by 2025. should normally range from 1.5 profit after tax attrib
Slide 19: Final Remarks
Final Remarks 19 .
Slide 20: Final remarks
Final remarks • EBITA +11% A group of market leaders • EBITA-margin 4.6% (4.1) with a strong culture and • EBITA growth in all Business Areas being part of something larger • Calendar effect had a negative impact on Industrial Services • Updated financial segment reporting • Our focus is technology-
Slide 21: Ratos is on track to reach SEK 3bn EBITA goal by 2025
Ratos is on track to reach SEK 3bn EBITA goal by 2025 17% 3,000 2,244 2,279 +32% 1,966 1,802 1,468 +86% 701 425 2018 2019 2020 2021 2022 2023 Q1 2024 2025 LTM 0.1x 2.3x (2.5) 1.1x (0.7) 1.4x (0.8) 21
Slide 22: Q&A
Q&A 22 .