Slide 1: Presentation of the fourth quarter and full year 2020
Presentation of the fourth quarter and full year 2020 8 February 2021
Slide 2: Ratos - an active owner building great companies
Ratos - an active owner building great companies Large / mid Long-term Total EBITA HQs in the sized and active Sales Growth Nordics companies ownership 60% 12 500 SEK 37 bn (2019-2020) Employees in (December 2020 12 companies 100% ownership) 1.9 in 30+ countries Billion SEK in EBITA EBITA LTM (Ratos
Slide 3: Transformation completed – focus on profitable growth
Transformation completed – focus on profitable growth Ratos a business group Improve EBITA in current Structural changes companies Structure, Processes, Culture Stability Divestment of Bisnode Organic EBITA growth Divestment Spira, Jøtul, Add on acquisitions in Profitability Gudrun Sjödé
Slide 4: Ambitious plans across our portfolio - and new platforms
Ambitious plans across our portfolio - and new platforms EXAMPLES Details not shared 4
Slide 5: New financial targets
New 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 billi
Slide 6: Strong EBITA in Q4 2020
Strong EBITA in Q4 2020 Comments Quarterly EBITA (Ratos Share, MSEK) Net sales amounted to 5,671 MSEK (6,277) ̶ Negative currency effects, Covid-19 and project phasing +277% in Aibel 332 ̶ Organic growth of -3% ̶ Strong growth in Plantasjen, airteam and Diab EBITA increased to 332 MSEK (88) ̶ 10
Slide 7: Strong EBITA for full year 2020
Strong EBITA for full year 2020 Comments FY EBITA (Ratos share, MSEK) Net sales amounted to 24,071 MSEK (24,499) +60% ̶ Negative currency effects and Covid-19 1 913 ̶ Organic growth of 4% ̶ Strong growth in airteam, Diab and Plantasjen EBITA increased to 1,913 MSEK (1,198) ̶ 10 out of 12 compani
Slide 8: Leverage
Leverage Decreased Net Debt and increased EBITDA Net Debt / EBITDA LTM Q4 2020 3.3x Net Debt / EBITDA amounted to 1.1x in Q4 2020 (2,6) -58% EBITDA improved by 55%, Net Debt decreased by 1,1 bn 2.6x SEK Net cash position in Ratos AB 1,166 MSEK ̶ Ratos AB has a loan facility of 1,000 MSEK Aft
Slide 9: Summary of Covid-19 impact 2020
Summary of Covid-19 impact 2020 Negative impact on net sales in all companies except Plantasjen and Oase Outdoors In total less negative impact from Covid-19 in the fourth quarter ̶ Government support, in all countries, amounted to approximately 79 MSEK in 2020 Our priorities are employees’ he
Slide 10: Business Area: Construction & Services
Business Area: Construction & Services EBITA change Comments Q4 2020 Q4 2020 Organic sales development, -9% +13% +27% ̶ Lower project volumes in Aibel and HENT ̶ Covid-19 pandemic impacted sales in EBITA Q4 2020 EBITA 2020 Aibel and HENT Organic growth Q4 Change, Change, Q4 2020 Q4 2019 2020 2019
Slide 11: Aibel – provides solutions for the transition into renewable energy
Aibel – provides solutions for the transition into renewable energy The global transition into renewable energy creates significant business opportunities for Aibel within Offshore Wind ̶ EU goal: fivefold capacity by 2030 Aibel has 6 years experience from innovative solutions and can build on e
Slide 12: Business Area: Consumer & Technology
Business Area: Consumer & Technology EBITA change Comments Q4 2020 Q4 2020 +160 MSEK +86% Organic sales development, +7% ̶ Strong sales in Plantasjen +18% EBITA increase of +160 MSEK EBITA Q4 2020 EBITA 2020 Organic ̶ Higher margins in Kvdbil driven by growth Q4 Change, Change, higher efficiency
Slide 13: Plantasjen - #1 in the Nordics
Plantasjen - # 1 in the Nordics Large and steadily growing market ̶ Favourable megatrend “green living” ̶ Nordic market size > 3.5 bn EUR ̶ Resilient and non-cyclical consumption demand ̶ Additional benefit from “staycations” 2020 Plantasjen key success factors ̶ Most inspiring Nordic Garden Cen
Slide 14: Business Area: Industry
Business Area: Industry EBITA change Comments Q4 2020 Q4 2020 +161% +49% Organic sales development, +3% ̶ Higher sales mainly driven by Diab EBITA Q4 2020 EBITA 2020 Organic EBITA increase of 161% growth Q4 Change, Change, Q4 2020 Q4 2019 % 2020 2019 % ̶ Diab increased EBITA by 37% due to higher
Slide 15: Diab - Strong position in renewables market
Diab - Strong position in renewables market Design and produce material and solutions for lightweight designs to marine, industry, aerospace, transportation and the wind market Wind power market has grown +50% 2018 - 2020, with further growth expected as more countries commit to carbon neutralit
Slide 16: Summary 2020
Summary 2020 Continued strong EBITA growth Revenue growth impacted by Covid-19 Continued reduction of leverage Strong financial position after divestment of Bisnode EPS 2,17 SEK (0,59) excluding capital gain in 2019 New Financial Targets The Board proposes a dividend of 0.95 SEK/share
Slide 17: Relentless since 1866
Relentless since 1866 www.ratos.com