Slide 1: Presentation – Q4 2022
Presentation – Q4 2022 13 February 2023
Slide 2: Full year 2022: Strong year in a challenging environment
Full year 2022: Strong year in a challenging environment Net sales ▪ Adj EBITA 1,966 MSEK, +9% 29,875 MSEK ▪ Companies acquired 2021 showed growth 32% strong EBITA-growth in 2022 ▪ Net sales +32%, whereof organic +8% ▪ Record high order backlog and order intake ▪ Weaker markets for wind power and Co
Slide 3: Fourth quarter: Adjusted EBITA +41% - continued good demand
Fourth quarter: Adjusted EBITA +41% - continued good demand Net sales 8,195 MSEK ▪ Adj EBITA +41% growth 42% ▪ Net sales +42%, whereof organic +12% ▪ Continued strong order intake ▪ Cost reducing actions ▪ Semcon acquired end of October ▪ The wind power and consumer markets Adj EBITA 318 MSEK have d
Slide 4: Business Areas
Business Areas
Slide 5: Construction & Services: Strong net sales and EBITA growth
Construction & Services: Strong net sales and EBITA growth We build and maintain a sustainable society Comments • Record-breaking order backlog and order intake • Net sales growth 51%, whereof organic 22% • Limited exposure in housing construction and exposure in critical public buildings • EBITA 39
Slide 6: Consumer: Lower net sales in Plantasjen
Consumer: Lower net sales in Plantasjen Provide a better and easier life for consumers Comments • Net sales declined -2%, whereof -5% organic, driven by lower sales in Plantasjen (-10% organic) • EBITA -189 MSEK (-33), Plantasjen’s EBITA negatively impacted by lower net sales and higher costs for en
Slide 7: Industry: Strong EBITA growth and strategic acquisition
Industry: Strong EBITA growth and strategic acquisition Building industrial market leaders, based in the Nordics who exporting to the world Comments • Net sales increased 61%, whereof 1% organic • Continued low sales in wind segment Diab • EBITA 160 MSEK (51) • EBITA-margin 8.1% (4.1%) and Adj. EBIT
Slide 8: Acquisition journey
Acquisition journey
Slide 9: Platform acquisitions – important steps to become a homogeneous group
Platform acquisitions – important steps to become a homogeneous group - Ratos growth journey started 2021 Construction & Services Industry 2021 2022 9
Slide 10: EBITA growth 2022 for platform acquisitions in 2021
EBITA growth 2022 for platform acquisitions in 2021 Construction & Services 2021 EBITA-growth from EBITA-growth from Total EBITA-growth from 45 MSEK to 86 MSEK 299 MNOK to 377 MNOK 359 MSEK to 483 MSEK +35% +91% +26% 10
Slide 11: M&A activity: 6 add-on acquisitions completed in 2022
M&A activity: 6 add-on acquisitions completed in 2022 M&A Activity 2022 Construction & Services Industry Q4 Q4 Q4 Q4 • 6 add-on acquisitions completed Grundströms in 2022 (4 within Construction & Plåt i Kiruna AB Services and 2 within Industry) Q4 to strengthen offering and position Q3 11
Slide 12: Sustainability
Sustainability - a prerequisite for profitable growth
Slide 13: Sustainability Q4 2022
Sustainability Q4 2022 Recognitions and sustainable business to be proud of Speed Group receives Stora Vestia (part of SSEA Group) Knightec and Alfa Wall Oceanbird hållbarhetspriset appointed Company of the Year ▪ The sustainability award is Swedish and was established in 2021 by the city of Borås,
Slide 14: Financials
Financials
Slide 15: Decreased EPS – affected by one-off effects
Decreased EPS – affected by one-off effects LTM EPS Comments • LTM EPS decreased 41%, affected by one-off effects: -41% 2.83 • Unrealized revaluation D&B shares in Q4 2021 • DTA recognized in Q4 2021 • One-time effects in Q4 2022 1.68 1.58 • Increased debt and interest rates Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 16: Profit for the period affected by one-time effects of -370 MSEK (vs Q4 PY)
Profit for the period affected by one-time effects of -370 MSEK (vs Q4 PY) MSEK Comments 138 • Op EBIT referring to change in EBIT -164 compared to previous year, excluding 383 one-time effects -43 • D&B-shares referring to unrecognized revaluation of D&B-shares in Q4 2021 -28 of 164 MSEK -45 -40 •
Slide 17: Leverage development
Leverage development Leverage Comments Comments 2.5x • Leverage at 2.5x - in the higher end of the range (1.5x – 2.5x) • Increased leverage mainly due to financing related to acquisition of 1.1x Semcon 0.9x 0.9x 0.6x • Net debt 4,798 MSEK (342) 0.1x -0.4x -0.5x -0.7x Q4 Q3 Q2 Q1 Q4 Q1 Q2 Q3 Q4 2020
Slide 18: Strong organic net sales growth in the quarter
Strong organic net sales growth in the quarter Net sales bridge 8,195 Comments 228 -15 Comments 706 • Strong organic net sales growth in the quarter 1,523 • Net sales up 42%, of which 26% 5,754 acquired, 12% organic and 4% FX Q4 Acquired/ Organic FX Other Q4 2021 disposed 2022 Adj EBITA bridge • EBI
Slide 19: ROCE
ROCE LTM ROCE Comments • ROCE 10.2% compared to 11.0% -7% last year 11.0% 10.2% 8.4% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2021 2022 ROCE excluding financial leasing 19
Slide 20: Final Remarks
Final Remarks
Slide 21: A good year and an even better fourth quarter in a challenging environment
A good year and an even better fourth quarter in a challenging environment ▪ Adj EBITA growth of +9% in the full year A group of market leaders and +41% in the fourth quarter with a strong culture and being part of something ▪ Companies acquired 2021 showed larger strong EBITA-growth in 2022 ▪ Recor
Slide 22: Q&A
Q&A RATOS
Slide 23: The leading company builder in the Nordics
The leading company builder in the Nordics A group of market leaders A clear culture Part of something larger Decentralized structure Ratos is a sustainable long-term owner with no exit horizon It’s all about people Gain benefits of the larger group through contacts and network We own companies that