Slide 1: Q1 Report 2019
Q1 Report 2019 8 May 2019
Slide 2: Improved earnings and higher rate of growth
Improved earnings and higher rate of growth ▪ Net sales increased by 15% and amounted to 5,207 MSEK (4,530) − A majority of Ratos’s companies show both increased net sales and an improved order situation − Organic growth of 14% ▪ EBITA, excluding IFRS 16, improved to 44 MSEK (-19) − Actions implemen
Slide 3: New organisation from 1 March 2019
New organisation from 1 March 2019 Business areas with a clear P&L responsibility Construction & Consumer & Industry Services Technology Net sales, last 12 months 31 March (MSEK) 10,423 7,554 4,221 EBITA last 12 months 31 March (MSEK) 351 479 60 3
Slide 4: Business Area Construction & Services
Business Area Construction & Services ▪ Increased Net sales by 21% ▪ Decreased EBITA from 91 MSEK to 69 MSEK due to lower earnings in HENT in connection with the project impairments that were carried out at the end of 2018 N et sales EBIT A Q1 Q1 LT M Full Year Q1 Q1 LT M Full Year MSEK 2019 2018 18
Slide 5: Business Area Consumer & Technology
Business Area Consumer & Technology ▪ Net sales growth 8% ▪ EBITA improvement mainly driven by Plantasjen ▪ EBITA for Consumer & Technology in the first quarter was affected by Plantasjens seasonal nature and is therefore negative N et sales EBIT A Q1 Q1 LT M Full Year Q1 Q1 LT M Full Year MSEK 2019
Slide 6: Business Area Industry
Business Area Industry ▪ Growth in Net sales 12% ▪ EBITA improved by 48 MSEK, primarily driven by Diab and HL Display N et sales EBIT A Q1 Q1 LT M Full Year Q1 Q1 LT M Full Year MSEK 2019 2018 18/ 19 2018 2019 2018 18/ 19 2018 Companies in its entirety Diab 439 357 1,578 1,496 38 3 -120 -155 HL Disp
Slide 7: Financial targets
Financial targets Increase profit each year The earnings of the company portfolio should increase each year legs than 2.5x (Net debt / EBITDA) at Total share return should outperform index Total return of the Ratos share should over time outperform the average on Nasdaq Stockholm RATOS
Slide 8: Earnings (EBITA) in Ratos company portfolio
Earnings (EBITA) in Ratos company portfolio EBITA-development, MSEK Earnings in Ratos compay portfolio last 12 months, 31 March 2019, amounted to 895 MSEK (838) 8
Slide 9: Ratos net debt target removed from financial targets
Ratos net debt target will no longer be part of Ratos’s financial targets ▪ Ratos is still striving for a well balanced net debt to EBITDA ▪ Important to create a sustainable dividend base in the portfolio companies 9
Slide 10: Dividend history 2013-2017
Dividend history 2013-2017 ▪ Accumulated dividend amounted to 4.6 bn SEK ▪ Accumulated profit amounted to 2.1 bn SEK, including exit gains and impairments ▪ Excluding exit gains and impairments, the accumulated profit for the period amounted to approximately 0.6 bn 10
Slide 11: New dividend policy
New dividend policy ▪ Dividends from Ratos should grow consistently over time based on growth in earnings and by maintaining a stable financial position ▪ The dividend should range between 30-50 percent of profit after tax attributable to owners of the parent 11
Slide 12: Summary Q1 2019
Summary Q1 2019 ▪ Improved earnings and higher growth rate in a small quarter ▪ Measures taken in portfolio companies starting to yield results ▪ Modification of financial targets ▪ New dividend policy ▪ Aibel won a larger order within strategically important offshore wind power - DolWin5, after the
Slide 13: Q&A
Q&A RATaS