Slide 1: Presentation Q4 2023
Presentation Q4 2023 12 February 2024 .
Slide 2: Full year: Strong cash flow, low leverage and increased profit
Full year: Strong cash flow, low leverage and increased profit • Adj EBITA +14% (Reported EBITA +127%) Net sales SEK 33,748m • Strong EBITA growth in Industry and growth +13% Construction & Services • EBITA declined in Consumer driven by planned inventory reduction program in Plantasjen • Net sales
Slide 3: Fourth quarter: Strong cash flow, low leverage and increased profit
Fourth quarter: Strong cash flow, low leverage and increased profit • Adj EBITA +2% • Strong EBITA growth in Industry Net sales SEK 7,960m decline -3% • Adj EBITA in Construction & Services negatively affected by corrections in Expin Group • EBITA on par with previous year in Consumer • Plantasjen E
Slide 4: Group financials Q4 2023
Group financials Q4 2023 Net sales, SEKm Adjusted EBITA, SEKm -3% +18% +2% 8,195 +18% 7,960 318 326 5,754 226 4,844 200 Adjusted 4.1% 3.9% 3.9% 4.1% EBITA margin % Q4 2020 Q4 2021 Q4 2022 Q4 2023 Q4 2020 Q4 2021 Q4 2022 Q4 2023 4
Slide 5: Business Areas
Business Areas 5 .
Slide 6: Construction & Services: Affected by Expin Group
Construction & Services: Affected by Expin Group We build and maintain a sustainable society Comments • Net sales growth -10%, organic growth -2% • Somewhat slower construction market ahead anticipated • Aibel reported strong operating result and positive currency effects • Adjusted EBITA SEK 307m (
Slide 7: Industry: Continued strong EBITA growth
Industry: Continued strong EBITA growth Building industrial market leaders, based in the Nordics on a global market Comments • Net sales increased 12%, whereof -4% organic • Continued low net sales in Diab wind segment and in Speed Group • Somewhat weaker market for the technical consultancy busines
Slide 8: Consumer: Planned inventory reduction program in Plantasjen
Consumer: Planned inventory reduction program in Plantasjen Provide a better and easier life for consumers Comments • Net sales declined -4%, -2% organic, driven by marginally lower sales in Plantasjen and lower sales but increased unit sales in KVD due to improved business model • EBITA SEK -165m (
Slide 9: Financials
Financials 9 .
Slide 10: Net sales and adjusted EBITA
Net sales and adjusted EBITA SEKm LTM 33,748 SEKm LTM 2,244 -3% +2% 8,195 7,960 5,754 318 326 226 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 2022 2023 2021 2022 2023 • Net sales growth of -3% in the quarter whereof -3% • Adjusted EBITA growth of 2% in the quarter organic growth • Adj
Slide 11: Cash flow from operating activities
Cash flow from operating activities SEKm LTM 4,275 Pos. Cash flow from operating activities, SEKm Q4 2023 Q4 2022 FY 2023 FY 2022 EBIT 1,206 282 3,010 1,618 Adjustment for non-cash -673 234 565 1,227 items 882 Received dividends and -117 -101 -430 -476 financial items, net Income tax paid -116 -71 -
Slide 12: Net working capital
Net working capital SEKm NWC 4QTR average % LTM net sales -125% 1.459 Net working capital, SEKm FY 2023 FY 2022 Inventories 1,868 2,477 Trade receivables 3,277 3,699 3.9% Contract assets 725 1,250 590 Accounts payable 2,803 2,916 1.7% 1.9% Contract liabilities 2,407 1,750 Other receivables/payables
Slide 13: Strong organic EBITA growth in the quarter
Strong organic EBITA growth in the quarter Net sales bridge, SEKm 334 Net sales • Acquired growth of 4% in the quarter 8,195 -231 • Negative organic sales growth of -3% in the -149 quarter mainly driven by SSEA Group 7,960 • Negative FX-effects of -2% -190 • Other, correction Expin Group Q4 2022 Acq
Slide 14: Leverage development
Leverage development Leverage 2.5x • Leverage at 0.7x in Q4 2023, below the target range (1.5x – 2.5x) 2.2x • Leverage at 1.1x excluding reversal of write- down of the holding in Aibel 1.6x • Decreased leverage in the quarter due to strong cash flow and increased LTM EBITDA 1.3xS after reversal of w
Slide 15: Financial targets
Financial targets EBITA Net Debt / EBITDA Dividend payout SEK 3 billion 1.5-2.5x 30-50% of profit after tax The dividend payout ratio EBITA is to amount to at least Net debt in relation to EBITDA should amount to 30-50% of SEK 3 billion by 2025. should normally range from 1.5 profit after tax attrib
Slide 16: Final Remarks
Final Remarks 16 .
Slide 17: Final remarks
Final remarks A group of market leaders • Adjusted EBITA +2% with a strong culture and being part of something • EBITA negatively affected by Expin larger Group • Net sales -3%, whereof organic -3% • Strong cash flow and decreased leverage • Our focus is technology- and infrastructure solutions in a
Slide 18: Ratos is on track to reach SEK 3bn EBITA goal by 2025
Ratos is on track to reach SEK 3bn EBITA goal by 2025 3,000 16% 2,244 +39% 1,966 1,802 1,468 +86% 701 425 2018 2019 2020 2021 2022 2023 2025 0.1x 2.3x (2.5) 1.1x (0.7) 18
Slide 19: Q&A
Q&A 19 .