Slide 1: Presentation Q4 2024
Presentation Q4 2024 17 February 2025 .
Slide 2: Fourth quarter: An important and strong quarter for Ratos with major one-offs
Fourth quarter: An important and strong quarter for Ratos with major one-offs • EBITA Q4 2023 – positive one-off of SEK 1,656m related to Aibel • EBITA Q4 2024 – negative one-offs of SEK 256m related to Plantasjen, Knightec Group and TFS • Merger of Knightec and Semcon to Knightec Group • Merger of
Slide 3: Fourth quarter: Increased earnings and strong cash flows in a significant quarter
Fourth quarter: Increased earnings and strong cash flows in a significant quarter • Adjusted EBITA increased with 23% to SEK 401m (326) • Adjusted EBITA-margin of 5.2% (4.1%) • Adj EBITA Corebusiness (excl Consumer) SEK 610m (491) • Adj EBITA-margin Corebusiness of 9.0% (7.1%) • Continued strong dev
Slide 4: Full year: Increased earnings and strong cash flows
Full year: Increased earnings and strong cash flows • Profit increases in all segments except in Consumer • Adjusted EBITA increased with 4% to SEK 2,329m (2,244) • Adjusted EBITA-margin of 7.2% (6.7%) • Adj EBITA Corebusiness increased with 8% SEK 2,269m (2,109) • Adj EBITA-margin Corebusiness of 8
Slide 5: Business Areas
Business Areas 5 .
Slide 6: Industry: Good development for the Technical consultancy companies
Industry: Good development for the Technical consultancy companies Segments: Industrial Services and Product Solutions Comments Net sales LTM -1% SEKm 10,563 10,414 • Net sales flat, whereof -6% organic and 6% structural 7,755 • Positive organic growth of 4% in the Technical consultancy companies •
Slide 7: Segment financials - Industry Q4 2024
Segment financials - Industry Q4 2024 Industrial Services Product Solutions Net Sales Net sales SEK 1,369m (1,415), -3% Net sales SEK 1,219m (1,166), +5% Share of total group sales 18% Share of total group sales 16% Sales was negatively affected by Sales growth driven by acquisitions / weak CRO mark
Slide 8: Construction & Services: Sentia - HENT and SSEA Group join forces
Construction & Services: Sentia - HENT and SSEA Group join forces Segments: Construction and Critical Infrastructure Comments Net sales LTM Order backlog Order intake LTM 18,194 SEKm -5% SEKm 17,298 • Construction operations consolidated 15,730 16,375 34,915 29,285 under the name of Sentia 26,792 •
Slide 9: Segment financials - Construction & Services Q4 2024
Segment financials - Construction & Services Q4 2024 Construction Critical Infrastructure Net Sales Net sales SEK 3,048m (3,226), -6% Share of total group sales 39% Net sales SEK 1,147m (1,085), +6% Share of total group sales 15% Temporarily weak sales in Construction EBITA SEK 181m (129), +40% EBIT
Slide 10: Consumer: Plantasjen restructuring in line with plan
Consumer: Plantasjen restructuring in line with plan Segments: Consumer Comments Net sales LTM SEKm -9% • Reconstruction in Plantasjen in line 6,392 5,888 5,337 with plan • Net sales decreased 11%, whereof -6% organic, and -5% driven by Plantasjen and the closure of Finland • Adj EBITA SEK -209m (-1
Slide 11: Financials
Financials 11 .
Slide 12: Net sales and adjusted EBITA
Net sales and adjusted EBITA SEKm LTM 32,125 SEKm LTM 2,329 +23% -3% 8,195 7,960 7,731 401 318 326 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2023 2024 2022 2023 2024 • Negative net sales growth of 3% in the quarter • Adjusted EBITA up 23% in the quarter whereof -5% organic growth •
Slide 13: Items Affecting Comparability
Items Affecting Comparability Q4 2024 Total IAC in Ratos Group - 256 MSEK o Industrial Services (-55 MSEK) - Knightec Group – related to the merger of Knightec and Semcon (-27 MSEK) - TFS – related to severance cost / efficiency measures (-28 MSEK) o Consumer (-201 MSEK) - Plantasjen – mainly (appro
Slide 14: Cash flow from operating activities
Cash flow from operating activities SEKm LTM 3,445 Cash flow from operating activities, SEKm Q4 2024 Q4 2023 FY 2024 FY 2023 +59% EBIT 112 1,206 1,670 3,010 1,403 Adjustment for non-cash 330 -673 1,568 565 items Received dividends and -131 -117 -225 -430 882 financial items, net Income tax paid -193
Slide 15: Net working capital
Net working capital SEKm NWC 4QTR average % LTM net sales Net working capital, 2024 2023 1,459 SEKm Dec Dec Inventories 1,851 1,868 Trade receivables 3,025 3,277 3.9% -283% Contract assets 669 725 1.9% Accounts payable 2,676 2,803 -367 Contract liabilities 2,398 2,407 -0.5% Other receivables/payable
Slide 16: Adj EBITA up 23%
Adj EBITA up 23% Net sales bridge, SEKm Net sales 149 • Net sales down 3% in the quarter 7,960 -397 • Acquired growth of 2% in the quarter 7,731 • Negative organic sales growth of 5% in the -29 48 quarter. All segments had negative growth • Minor negative FX-effect Q4 2023 Acquired/disposed Organic
Slide 17: Leverage, ROCE and ROIC
Leverage, ROCE and ROIC Leverage development Leverage Leverage reported Leverage adjusted • Leverage at 1.3x in Q4 2024, below the target range (1.5x – 2.5x) and adj leverage 2.5x at 1.2x 2.2x • Leverage Q4 2023 at 1.1x adjusted for 2.3x reversal of write-down of the holding in Aibel 1.6x S • Increa
Slide 18: Financial targets
Financial targets Targets 2025 Outcomes Q4 2024 EBITA growth SEK 3 billion SEK 2,329m EBITA is to amount of at least SEK 3 billion by 2025 (Adjusted EBITA LTM) Leverage 1.5 – 2.5x 1.3x (non-adjusted) 1.2x (adjusted) Net debt, excluding financial lease liabilities, in relation to EBITDA should normal
Slide 19: Final Remarks
Final Remarks 19 .
Slide 20: Final remarks
Final remarks • Merger of Knightec and Semcon to Knightec Group • Merger of HENT and SSEA Group to Sentia • Plantasjen restructuring in line with plan • Acquisition of the minority holding in Presis Infra • Continued strong development in the segment Industrial Services • Strong quarter in the segme
Slide 21: Q&A
Q&A 21 .
Slide 22: Our financial segment reporting
Our financial segment reporting Industry Construction & Services Consumer Industrial Services Product Solutions Critical Infrastructure Construction Consumer 22
Slide 23: Ratos Group and Business areas
Ratos Group and Business areas Net sales, Adj EBITA and Adj EBITA-margin Q4 Q4 Change Net sales, SEKm 2024 2023 % Industry 2,577 2,572 0% Construction & Services 4,195 4,310 -3% Consumer 959 1,077 -11% Net sales 7,731 7,960 -3% Q4 Q4 Change Adj EBITA, SEKm 2024 2023 % Industry 226 209 +8% Constructi