Slide 1: Presentation – Q2 2022
Presentation – Q2 2022 18 July 2022
Slide 2: Solid quarter considering circumstances and uncertainties in the world
Solid quarter considering circumstances and uncertainties in the world ▪ Adj EBITA -7% and EBITA +2% Net sales ▪ Net sales up 20% whereof organic 2% 8,420 MSEK growth 20% ▪ Plantasjen affected by poor weather and inflation ▪ Signed agreement to acquire Knightec with EBITA of 140 MSEK ▪ Closed acquis
Slide 3: Group financials Q2 2022
Group financials Q2 2022 Net sales, MSEK LTM 25,765 Comments 8 420 • Net sales growth 20% 6 525 6 994 • Strong growth in Construction & Services • LTM net sales growth 22% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 2021 2022 Adj EBITA, MSEK LTM Adj EBITA 1,807 1 035 958 963 • Adj EBITA decreased with 7% • Nega
Slide 4: Financial targets
Financial targets Announced in February 2021 EBITA 3 Billion SEK Comments 1 733 1 807 1 128 ▪ LTM Adj. EBITA at 1,807 MSEK inline with 2025 target Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 2021 2022 Net debt / EBITDA 1.5 – 2.5x 1,0x 0,5x ▪ Leverage increased to 0.5x as a result of acquisitions and inventory i
Slide 5: Acquisition activity and strategy
Acquisition activity and strategy M&A Activity Q2 2022 • New platform • Add-on to NVBS • Three acquisitions during the quarter • Expanding consulting • Ratatek an add-on business in • Attractive pipeline, strong balance sheet business with high profit Finland with 4 BSEK in acquisition capacity marg
Slide 6: Ratos acquired 70% of consulting company Knightec
Ratos acquired 70% of consulting company Knightec and enter partnership with co-founder & CEO Dimitris Gioulekas About the business ▪ Knightec is a fast-growing consulting company focused on technology, design and digitalization of products and services ▪ Stands out in the consulting market due to r
Slide 7: Business Areas
Business Areas
Slide 8: Construction & Services: Strong net sales growth
Construction & Services: Strong net sales growth We build and maintain a sustainable society Comments • Strong order backlog • Net sales growth 37%, whereof organic 11% • Continuing negative impact and uncertainty from increased material and energy costs • EBITA 279 MSEK (128), increased by 118%, EB
Slide 9: Consumer: Impacted by poor weather and inflation
Consumer: Impacted by poor weather and inflation Provide a better and easier life for consumers Comments • Net sales growth of 11%, whereof -4% organic, driven by lower sales in Plantasjen • EBITA amounted to 664 MSEK (838), Plantasjen’s contribution negatively impacted by colder weather, inflation
Slide 10: Industry: Good performance, except for Diab
Industry: Good performance, except for Diab Building industrial market leaders, based in the Nordics who exporting to the world Comments • Net sales increased 2% whereof -4% organic, due to Diab • Strong quarter for HL Display, LEDiL and TFS • Lower wind segment sales and increased material and ener
Slide 11: Sustainability
Sustainability - a prerequisite for profitable growth
Slide 12: Sustainability Q2 2022
Sustainability Q2 2022 The Ratos companies continues to transform and makes a big effort to reduce footprint Aibel takes part in the largest HENT join construction industry’s HL Display partnering for more offshore wind project in the world climate commitments in Norway circular solutions ▪ Aibel wi
Slide 13: Financials
Financials 13
Slide 14: Group financials
Group financials 2022 2021 2022 2021 Comments Q2 Q2 Q2 LTM FY • Net debt increased as a result of Net sales 8,420 6,994 25,765 22,551 acquisitions and high inventory Adj EBITA 963 1,035 1,807 1,802 levels - margin 11.4% 14.8% 7.0% 8.0% • Net financial cost increased, primarily due to revaluation of
Slide 15: Acquired growth for the quarter account for 15% of the increased net sales
Acquired growth for the quarter account for 15% of the increased net sales Net sales bridge Comments -12 Comments 234 156 • Strong growth from acquisitions • Net sales up 20%, of which 15% 1 048 8,420 acquired, 2% organic and 3% FX 6,994 Q2 Acquired/ Organic FX Other Q2 2021 disposed 2022 Adj EBITA
Slide 16: Increasing EPS and positive return on capital employed trajectory
Increasing EPS and positive return on capital employed trajectory LTM EPS Comments +10% • LTM EPS increased 10% as a 2,05 2,16 1,96 result of increased earnings levels Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 2021 2022 LTM ROCE 8.5% 8.7% • ROCE positive trajectory at 8.7% 7.5% compared to 8.5% last year driv
Slide 17: Final Remarks
Final Remarks
Slide 18: The Ratos model shows strength in challenging times
The Ratos model shows strength in challenging times A group of market leaders ▪ Second quarter show a solid with a strong culture and performance despite significant being part of something challenges in our operating environment larger ▪ Proof of concept, for the Ratos model, with decentralised str
Slide 19: Q&A
Q&A RATOS
Slide 20: 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