Ratos Ab Class A · OMXSTO:RATO_A
Ratos Ab Class A — Shareholder Meeting (May 2018)
31 slides from Ratos Ab Class A's shareholder meeting presentation, May 3, 2018
Slide 1: Annual General Meeting 2018
Annual General Meeting 2018 Jonas Wiström 3 May 2018
Slide 2: Who is Jonas Wiström?
Who is Jonas Wiström? ▪ Royal Institute of Technology Stockholm 1983 ▪ Philips Defence Electronics ▪ Saab-Scania ▪ SUN Microsystems ▪ Silicon Graphics ▪ Prevas ▪ ÅF ▪ Ratos ▪ Current Board memberships − Business Sweden, IVA Annual General Meeting 2018 3 May 2018 2
Slide 3: My task
My task To increase shareholder value in a growing Ratos Annual General Meeting 2018 3 May 2018 3
Slide 4: Ratos's 2018 AGM
Ratos’s 2018 AGM ▪ Ratos 2017 ▪ Q1 2018 ▪ Starting position and activities ▪ Ratos moving forward ▪ Objectives 2018 Annual General Meeting 2018 3 May 2018 4
Slide 5: Market conditions 2017
Market conditions 2017 ▪ Performance varied between companies, which are exposed to different industries and markets ▪ Generally very positive underlying Sales breakdown by geographic market trend ▪ Continued strong transaction market − Ratos’s net sellers in 2017 -2%* -10%* Sales performance Sales
Slide 6: Ratos during 2017
Ratos during 2017 ▪ Updated strategic agenda Focus holdings on fewer sectors Retain certain companies for a longer period with lower indebtedness over time In future, dividends on Ratos shares will be based on stable cash flows from the portfolio companies instead of exit gains Changed investment in
Slide 7: Ratos during 2017 (cont.)
Ratos during 2017 (cont.) ▪ Preference shares ended ▪ Impairment of book values SEK -550m ▪ New STI programme ▪ More efficient organisation − Reduced central management costs ▪ Weak performance by the company portfolio during the second half of the year Annual General Meeting 2018 3 May 2018 7
Slide 8: EBITA trend 2017
EBITA trend 2017 SEKm, Ratos’s holding Jan-Dec Jan-Dec Companies 2017 2016 Aibel 102 15 Bisnode 277 159 Diab 1 105 HENT 190 174 HL Display 42 66 Ledil 71 70 Plantasjen 217 230 Other 7 companies 149 189 Ratos total 1,048 1,008 Annual General Meeting 2018 3 May 2018 8
Slide 9: Ratos is pursuing a sustainability agenda
Ratos’s companies Ratos AB Ratos is pursuing a sustainability agenda 40% CDP Share of companies with Reports to CDP CO2 reporting Develop and involve our employees Sustainability Do business with 100% good business Share of companies with and ethics and culture Code of Conduct profitability go hand
Slide 10: Ratos's 2018 AGM
Ratos’s 2018 AGM ▪ Ratos 2017 ▪ Q1 2018 ▪ Starting position and activities ▪ Ratos moving forward ▪ Objectives 2018 Annual General Meeting 2018 3 May 2018 10
Slide 11: Weak start to 2018
Weak start to 2018 ▪ Plantasjen − EBITA performance SEK -60m (-40%) − Restructuring SEK -23m − Cold March in the Nordic countries ▪ Diab − EBITA performance SEK -22m (-88%) − Weak trend in wind power − High commodity costs ▪ Under-performer, EBITA performance SEK -31m − Kvdbil − TFS − Speed Group ▪
Slide 12: EBITA performance Q1 2018
EBITA performance Q1 2018 SEKm, Ratos’s holding Jan-Mar Jan-Mar Companies 2018 2017 Aibel 35 45 Bisnode 50 56 Diab 3 25 HENT 48 48 HL Display 21 14 Ledil 22 17 Plantasjen -209 -149 Other 6 companies 12 46 Ratos total -18 102 Annual General Meeting 2018 3 May 2018 12
Slide 13: Important events Q1 2018
Important events Q1 2018 ▪ Divestment of Jøtul ▪ HENT − Strong order intake, NOK 3.2 billion (2.1) − Divestment of residential development operations (April) ▪ airteam − Expansion to Sweden through acquisition of Luftkontroll Energy ▪ Speed Group − Acquisition of Samdistribution to establish a prese
Slide 14: Ratos's 2018 AGM
Ratos’s 2018 AGM ▪ Ratos 2017 ▪ Q1 2018 ▪ Starting position and activities ▪ Ratos moving forward ▪ Objectives 2018 Annual General Meeting 2018 3 May 2018 14
Slide 15: My view of Ratos
My view of Ratos ▪ Established and well-known 300 brand in the Nordic countries, 250 with a fantastic history and enormous potential 200 Index ▪ Clear, long-term and dedicated 150 principal owner 100 ▪ Operates as a listed PE 50 RATO B OMXSGI company 0 ▪ Very poor share price trend since 2011 with h
Slide 16: History
History ▪ High valuation 2011 ▪ “Sold good companies and held on to lesser ones” ▪ Company development in the portfolio is too weak, although some companies are performing well Annual General Meeting 2018 3 May 2018 16
Slide 17: Ratos's challenge
Ratos’s challenge Development of the company portfolio ▪ During 2017, only 7 of 14 companies showed an improved EBITA performance, despite a boom in nearly all industries ▪ The companies’ earnings generation and indebtedness do not finance Ratos’s dividends Annual General Meeting 2018 3 May 2018 17
Slide 18: My own experience
My own experience Understand The answers BEFORE are to be you want to found be in the understood! organisation Annual General Meeting 2018 3 May 2018 18
Slide 19: Agenda for my first 70 days
Agenda for my first 70 days Understand and go through in detail ▪ Portfolio companies − Management − Board of Directors − Market − Results ▪ Our corporate governance ▪ Ratos AB − Organisation − Processes − Culture − Incentive system Annual General Meeting 2018 3 May 2018 19
Slide 20: Nothing is more important to a good result for Ratos than...
Nothing is more important to a good result for Ratos than... TEAM TAKE Good CEOs ACTION in our companies! STRATEGY HAVE FUN Annual General Meeting 2018 3 May 2018 20
Slide 21: My view of leadership
My view of leadership ▪ Definition of a good leader/CEO − A good leader delivers favourable results over time Annual General Meeting 2018 3 May 2018 21
Slide 22: What is a good result
What is a good result (EBITA and growth)? Annual General Meeting 2018 3 May 2018 22
Slide 23: Difficult, more difficult and most difficult
Difficult, more difficult and most difficult Organisation Processes Culture & Systems (Difficult) (More difficult) (Most difficult) Annual General Meeting 2018 3 May 2018 23
Slide 24: Action (Organisation)
Action (Organisation) ▪ Reduced and changed investment organisation -5 +2 − Was too large − We require less of certain competences and more of others − We need new eyes ▪ Changed incentive system − Short-term incentive programme (1 year) based on the earnings trend in the company portfolio, excludin
Slide 25: Ratos's 2018 AGM
Ratos’s 2018 AGM ▪ Ratos 2017 ▪ Q1 2018 ▪ Starting position and activities ▪ Ratos moving forward ▪ Objectives 2018 Annual General Meeting 2018 3 May 2018 25
Slide 26: Ratos moving forward
Ratos moving forward Processes Organisation Culture & Systems (Corporate governance) Annual General Meeting 2018 3 May 2018 26
Slide 27: Agenda looking forward
Agenda looking forward ▪ Focus on existing portfolio companies − Right management − The company’s market position, 1st or 2nd in each market? − Stability => Profitability => Growth − Correct level of indebtedness ▪ Define “The Ratos Way:” − Our processes and systems − Our corporate governance − Our
Slide 28: Ratos's 2018 AGM
Ratos’s 2018 AGM ▪ Ratos 2017 ▪ Q1 2018 ▪ Starting position and activities ▪ Ratos moving forward ▪ Objectives 2018 Annual General Meeting 2018 3 May 2018 28
Slide 29: Objectives 2018
Objectives 2018 ▪ Reverse the negative profitability trend ▪ Determine which are our more long-term holdings ▪ Deliver on the updated strategy Annual General Meeting 2018 3 May 2018 29
Slide 30: Why Ratos will succeed
Why Ratos will succeed ▪ We will highlight and live according to our unique positions of strength ▪ We have a strong brand ▪ We are an attractive owner ▪ We are an attractive workplace ▪ We have a strong balance sheet and long-term principal owners Annual General Meeting 2018 3 May 2018 30
Slide 31: Thank you!
THANK YOU!