Slide 1: Telephone conference
Telephone conference CEO Susanna Campbell 19 February 2015
Slide 2: 2014: High level of transaction activity and gradual improvement in the holdings
2014: High level of transaction activity and gradual improvement in the holdings ▪ Strong Q4 in many holdings ▪ 12 of 18 holdings increased their operating profit and margin in 2014 ▪ Successful exits: SB Seating and Inwido ▪ Acquisition of Ledil ▪ Good financial position, net cash approximately SEK
Slide 3: Increased market activity 2014
Increased market activity 2014 ▪ Increased market activity Sales by geographic market, % continues Rest of the world 5% ▪ Improved order intake, higher North America 5% Eastern customer activity Europe 4% ▪ Trend continued end of year, but did not gain momentum Western Europe 15% ▪ Economic developm
Slide 4: Improvement in holdings
Improvement in holdings ▪ Strong Q4 in many holdings − Adjusted EBITA +9% ▪ Reported operating profit affected by extraordinary items and impairment ▪ 12 of 18 holdings increased EBITA and EBITA margin during the year ▪ Action programmes and value-creating initiatives yield results ▪ Negative earnin
Slide 5: Performance in holdings Q4 2014
Performance in holdings Q4 2014 Ratos’s share 100% Ratos’s share excl. Aibel Sales -3% 0% +4% EBITA -18% -6% +13% EBITA excluding items +15% +9% +8% affecting comparability EBT -80% -75% -44% EBT excluding items +41% +11% -1% affecting comparability 5
Slide 6: Performance in holdings 2014
Performance in holdings 2014 Ratos’s share 100% Ratos’s share excl. Aibel Sales -8% -2% +4% EBITA -19% -6% +10% EBITA excluding items -1% 0% +4% affecting comparability EBT -55% -30% +5% EBT excluding items +10% +6% +11% affecting comparability 6
Slide 7: Overall view of performance in the portfolio
Overall view of performance in the portfolio Arcus-Gruppen Aibel AH Industries Biolin Scientific Bisnode Hafa Bathroom Group GS-Hydro DIAB Jøtul HENT Euromaint Inwido HL Display KVD Ledil Mobile Climate Control Nebula Nordic Cinema Group 7
Slide 8: Strong transaction market
Strong transaction market ▪ High level of activity ▪ IPO market functioning well ▪ Very good access to bank financing ▪ No signs of slowdown ▪ For Ratos − Opportunities − More challenging to find good acquisitions 8
Slide 9: Two major exits for Ratos
Two major exits for Ratos Share price performance Inwido ▪ Successful IPO Inwido SEK per share 100 − 31% holding retained 90 − Strong share price performance 80 ▪ Successful sale of SB Seating 70 60 − Completed Q4 50 14-09-26 14-10-26 14-11-26 14-12-26 15-01-26 ▪ Total exit gains SEK 1,390m Inwido O
Slide 10: Acquisition of exciting Finnish growth company
Acquisition of exciting Finnish growth company ▪ Ledil acquired in 2014 holding 66% EUR m Financial performance 2010-2014 % 30 40 ▪ Finnish leading global supplier of secondary 25 35 30 20 optics for LED lighting 25 15 20 ▪ Company’s end customers are lighting 10 15 10 5 5 manufacturers 0 0 2010/11
Slide 11: Increased dividend proposed
Increased dividend proposed ▪ SEK 3.25 per ordinary share SEK Dividend per ordinary share ▪ Increase +8% 4 ▪ Earnings per share SEK 3.22 3,25 3 3 3 (2.13) ▪ Dividend policy 2 − Actual earnings development − Stable development sought 1 0 2012 2013 2014* * Proposed dividend 11
Slide 12: Adjusted return target
Adjusted return target ▪ Previously IRR 20% ▪ New target: company specific at least 15-20% IRR, depending on company- and market specific factors ▪ Better opportunity to make interesting investments ▪ Target adjusted to market situation − Low growth, low interest rates − PE sector has matured ▪ Adju
Slide 13: 2015
2015 ▪ No expectations for strong macro recovery ▪ Shifting market development ▪ Strong transaction market ▪ Conditions exist for current portfolio of companies to increase operating profit in 2015 13
Slide 14: 2014: High level of transaction activity and gradual improvement in the holdings
2014: High level of transaction activity and gradual improvement in the holdings ▪ Strong Q4 in many holdings ▪ 12 of 18 holding increased their operating profit and margin in 2014 ▪ Successful exits: SB Seating and Inwido ▪ Acquisition of Ledil ▪ Good financial position, net cash approximately SEK