Ratos Ab Class A · OMXSTO:RATO_A
Ratos Ab Class A — Shareholder Meeting (May 2019)
32 slides from Ratos Ab Class A's shareholder meeting presentation, May 8, 2019
Slide 1: Welcome to Ratos's Annual General Meeting for 2019
Welcome to Ratos’s Annual General Meeting for 2019 Jonas Wiström 8 May 2019
Slide 2: Annual General Meeting 2019
Annual General Meeting 2019 Ratos 2018 Ratos Q1 2019 “The new Ratos” and the road ahead Objectives for 2019 Annual General Meeting 2019 8 May 2019 2
Slide 3: Objectives for 2018
Objectives for 2018 (from 2018 Annual General Meeting) ▪ Reverse the negative profitability trend The result for 2018 was weak, but with underlying improvements Determine which holdings are more long-term New criteria for new investments and long-term companies in Ratos’s portfolio Deliver o
Slide 4: EBITA trend 2018
EBITA trend 2018 SEKm, Ratos’s holding Bolag 2018 2017 Diab -149 1 Plantasjen 76 217 HENT 113 190 Speed Group -9 17 Kvdbil 8 30 Oase Outdoors 28 42 TFS -4 -4 LEDil 72 70 airteam 62 54 Bisnode 329 277 Aibel 183 102 HL Display 94 42 Total 804 1 038 Annual General Meeting 2019 8 May 2019 4
Slide 5: Measures taken in Ratos's parent company in 2018
Measures taken in Ratos’s parent company in 2018 ▪ New management Smaller and more ▪ Shift in expertise efficient organisation ▪ Lower underlying costs (SEK 153m => SEK 117m) ▪ Short-term incentive system, EBITA in company portfolio (1 year) Changed incentive ▪ Long-term incentive system, Ratos’s sh
Slide 6: Focus on existing holdings
Focus on existing holdings Focus on right management and right Chairman Aim to establish a decentralised structure with profit responsibility extending down as far as possible in the organisation Implement structural measures for future profitability High tempo Annual General Meeting 2019 8
Slide 7: Measures implemented in the Ratos Group over the past year
Measures implemented in the Ratos Group over the past year Change of CEO Change of chairman (Ratos chairman in 5 companies) Divested shareholdings in Jøtul and Gudrun Sjödén Group, increased shareholding in TFS Strong market position in the company’s sector and geographic area (#1 or #2) New criteri
Slide 8: Lower dividend proposed for 2018
Lower dividend proposed for 2018 ▪ Proposed dividend of SEK 0.50 per share (2.00) ▪ Earnings (EBT) in portfolio companies, SEK 604m (679) ▪ Net cash in Ratos AB, SEK 1.7 billion (2.2) Annual General Meeting 2019 8 May 2019 8
Slide 9: To increase shareholder value in a growing Ratos
My task on behalf of the Board of Directors: To increase shareholder value in a growing Ratos Annual General Meeting 2019 8 May 2019 9
Slide 10: Past dividends 2013–2017
Past dividends 2013–2017 ▪ SEK 4.6 billion paid in dividends during the period ▪ Distributable earnings generated by the operations amounted to SEK 2.1 billion, including sales gains and impairment ▪ Excluding impairment and sales gains, distributable earnings for 2013–2017 amounted to about SEK 0.6
Slide 11: New dividend policy
New dividend policy The Ratos share is to deliver steadily increasing dividends over time based on growing earnings and a stable financial position. According to the Board’s assessment, a dividend payout ratio of 30–50% of profit after tax attributable to owners of the parent will fulfil these condi
Slide 12: Ratos's Class B share
Ratos’s Class B share ▪ Total return 2018: -30% (SIX Return Index: -4%) ▪ The Group had 57,909 shareholders at 31 December 2018, compared with 59,526 at year-end 2017 ▪ The turnover rate (number of shares traded during the year divided by the number of shares outstanding at year-end) for the Class B
Slide 13: Annual General Meeting 2019
Annual General Meeting 2019 Ratos 2018 Ratos Q1 2019 “The new Ratos” and the road ahead Objectives for 2019 Annual General Meeting 2019 8 May 2019 13
Slide 14: Q1 2019
Q1 2019 ▪ Measures started to yield results ▪ 8 of 12 companies improved their earnings during the quarter (2 of 13 in the first quarter of 2018) ▪ EBITA increased from SEK -19m to SEK 44m (excluding IFRS 16) − Typically quiet quarter for Ratos due to seasonal effects ▪ Growth of 15% (-3%) − Organic
Slide 15: Company portfolio by sector
Company portfolio by sector As of 1 March 2019 Construction & Services Consumer & Technology: Industry Net sales, R12 10,423 7,554 4,221 31 March (SEKm) EBITA, R12 31 March (SEKm) 351 479 60 Annual General Meeting 2019 8 May 2019 15
Slide 16: EBITA trend, Construction & Services, Q1 2019
EBITA trend, Construction & Services, Q1 2019 SEKm, Ratos’s holding Company Organic Jan–Mar Jan–Mar growth 2019 2018 Aibel +20% 50 39 airteam -2% 3 7 HENT +15% 18 48 Speed Group +9% -2 -3 Construction & Services, 69 91 total 16
Slide 17: EBITA trend, Consumer & Technology, Q1 2019
EBITA trend, Consumer & Technology, Q1 2019 SEKm, Ratos’s holding Company Organic Jan–Mar Jan–Mar growth 2019 2018 Bisnode +3% 44 50 Kvdbil +29% 5 -8 Oase Outdoors +17% 22 20 Plantasjen +3% -183 -211 Consumer & Technology, -112 -149 total 17
Slide 18: EBITA trend, Industry, Q1 2019
EBITA trend, Industry, Q1 2019 SEKm, Ratos’s holding Company Organic Jan–Mar Jan–Mar growth 2019 2018 Diab +23% 37 3 HL Display +7% 31 21 LEDiL -11% 18 22 TFS +7% 2 -7 Industry, total 88 39 18
Slide 19: Aibel: restructuring and EBITA development
▪ Restructuring 2014–2018 − Number of staff reduced by 1,300 (25%) − Indirect costs decreased by 37% − Secured critical resources in international engineering and construction ▪ Increased profitability through restructuring and successful project deliveries ▪ EBITA − 2017: NOK 309m − 2018: NOK 537m
Slide 20: Aibel: new orders in offshore platforms and wind power
▪ 2018: after final delivery of Johan Sverdrup Drilling Platform, new project Johan Sverdrup Process Platform P2 − Contract in May 2018, final delivery first half of 2022, total value approximately NOK 8 billion ▪ Major new orders in offshore wind power in May 2019 − DolWin 5, Germany, major 5-year
Slide 21: Marketing and credit products of the future
Marketing and credit products of the future ▪ In 2015, Bisnode initiated a transformation from traditional analogue services to market-leading digital solutions ▪ The foundation for the transformation was One Bisnode, which included: − New growth products: shared marketing, credit information and de
Slide 22: "Featherweight" project: June 2018–Dec 2019
“Featherweight” project: June 2018–Dec 2019 Aim: to increase rolling 12-month earnings by SEK 140m through constant sales ▪ New organisation − New acting CEO in June − New permanent CEO in September − New decentralised structure ▪ Production rationalisation and investments − Closure of factory in Ch
Slide 23: Annual General Meeting 2019
Annual General Meeting 2019 Ratos 2018 Ratos Q1 2019 “The new Ratos” and the road ahead Objectives for 2019 Annual General Meeting 2019 8 May 2019 23
Slide 24: Ratos's history
Ratos's history Founded in 1866 Listed on the stock exchange in 1954 Private equity strategy established in 1999 12 holdings as of 2018 Iron wholesaler Söderberg & Haak Acquisition of Förvaltnings AB Ratos Ratos listed on the stock Tibnor, Dahl, founded quoted shares formed exchange Smedjeba
Slide 25: "The new Ratos"
“THE NEW RATOS” THE BEST OF BOTH WORLDS ▪ We acquire, develop and retain companies as long as we are the best owner − Improve profitability − Grow organically and through acquisitions financed through our own cash flow − We aim to achieve improvements quickly, but are a long-term owner ▪ Responsibil
Slide 26: "The new Ratos"
“THE NEW RATOS” THE BEST OF BOTH WORLDS ▪ Right CEO and management team with share-based incentives ▪ Strategic direction set by Ratos ▪ Focused agenda for value creation through prioritised initiatives for profitability and growth. Organic and acquired ▪ We believe in a decentralised structure with
Slide 27: "The new Ratos"
“THE NEW RATOS” THE BEST OF BOTH WORLDS ▪ Leverage synergies in purchasing, recruiting, IT, travel, auditing, etc. ▪ Focus on leadership and networks within in the Group ▪ Benchmarking and best practice in function groups ▪ Attract talented industrial advisors to the Group ▪ Streamline important pro
Slide 28: Ratos and sustainable development
Ratos and sustainable development 100% Transparent and sound corporate (80) governance, Code of Conduct business ethics and proactive anti-corruption Sustainable initiatives 39% 5 companies development (28) (4) Proportion of and Focus on Report CO2 women in senior climate impact, environmental equal
Slide 29: Annual General Meeting 2019
Annual General Meeting 2019 Ratos 2018 Ratos Q1 2019 “The new Ratos” and the road ahead Objectives for 2019 Annual General Meeting 2019 8 May 2019 29
Slide 30: Objectives for 2019
Objectives for 2019 ▪ Create a positive profitability trend ▪ Strengthen the financial positions of our subsidiaries ▪ Maintain favourable growth Annual General Meeting 2019 8 May 2019 30
Slide 31: Why Ratos will succeed
Why Ratos will succeed ▪ We will leverage and conduct our operations according to our unique positions of strength ▪ We have a strong brand ▪ We are an attractive owner ▪ We are an attractive workplace ▪ We have a strong balance sheet and long-term principal owners Annual General Meeting 2018 3 May
Slide 32: Thank you!
THANK YOU!