Slide 1: Telephone conference
Telephone conference CEO Susanna Campbell 7 May 2015
Slide 2: Strong start to the year
Strong start to the year ▪ Good earnings improvement Q1 for the companies ▪ Two key divestments in April − Nordic Cinema Group – exit gain approx. SEK 900m − Reduced shareholding in Inwido – exit gain approx. SEK 230m ▪ Strong financial position ▪ Unchanged positive view of 2015 2
Slide 3: Stable markets
Stable markets ▪ Most markets stable compared Sales breakdown by segment* with end of 2014 Life Science Consumer 1% ▪ Market development varies Services 9% − Growth DIAB (wind energy) and MCC Oil & Gas (buses) 16% Industrials − Weak market HL Display (retail UK) and 36% Aibel (maintenance) ▪ Growth
Slide 4: Strong Q1 for the companies
Strong Q1 for the companies ▪ Strong earnings trend – adjusted EBITA +35% ▪ Q1 small quarter – should not be over-interpreted ▪ Effects of growth and efficiency improvement initiatives ▪ Positive currency effects ▪ Aibel: new construction contract worth approx. NOK 8 billion in Johan Sverdrup field
Slide 5: Performance in the companies Q1 2015
Performance in the companies Q1 2015 100% Ratos’s share Sales -1% +4% EBITA +92% +53% EBITA excluding items +36% +35% affecting comparability EBT - +558% EBT excluding items +146% +106% affecting comparability 5
Slide 6: Overall view of performance in the companies
Overall view of performance in the companies Arcus-Gruppen Aibel AH Industries Biolin Scientific Bisnode Hafa Bathroom Group DIAB Euromaint Jøtul GS-Hydro HL Display HENT Inwido KVD Ledil Mobile Climate Control Nebula Nordic Cinema Group 6
Slide 7: Good sales and earnings development in the portfolio in the first quarter
Good sales and earnings development in the portfolio in the first quarter Sales +15% Sales -10% Sales +10% EBITA +80% EBITA -11% EBITA neg Adj. EBITA +64% Adj. EBITA -15% Adj. EBITA neg Adj. EBITA marg +7.1% (5.0) Adj. EBITA marg +4.1% (4.4) Adj. EBITA marg neg (neg) 0% 27% 73% Share of adjusted EBI
Slide 8: Strong transaction market
Strong transaction market ▪ High pressure ▪ Very good access to bank financing Industrial network ~100+ ▪ No signs of slowdown Industrial Advisors and ▪ Opportunities for Ratos to Advisory Boards <<<< ~15 capture value creation through Ratos’s exits investment organisation ▪ Challenge to find attrac
Slide 9: Two major exits for Ratos in April
Two major exits for Ratos in April Share price performance Inwido ▪ Agreement for sale of Nordic SEK 100 90 Cinema Group 80 ▪ Reduced shareholding in Inwido 70 60 − Holding 10.4% after deal 50 14-09-26 14-10-26 14-11-26 14-12-26 15-01-26 15-02-26 15-03-26 15-04-26 − Exit gain approx. SEK 230m Inwido
Slide 10: Nordic-leading cinema operator created
Nordic-leading cinema operator created ▪ Ratos acquired Finnkino 2011 – leading cinema operator in Finland and Baltics ▪ Nordic Cinema Group formed 2013 through a merger with SF Bio ▪ Strong strategic position and good long-term prospects ▪ Value-creating growth initiatives: investments in modern ci
Slide 11: Strengthened strategic position provides good return
Strengthened strategic position provides good return ▪ Agreement signed in April on sale NOKm Financial performance 2012-2014 % 16 to Bridgepoint 2500 14 12 2000 ▪ Enterprise value approximately 10 1500 8 1000 6 4 SEK 4,700m 500 0 2 0 − Approx. SEK 1,700m for Ratos’s holding 2012* 2013* 2014* Sales
Slide 12: 2015
2015 ▪ No expectations for strong macro recovery ▪ Shifting market development ▪ Strong transaction market ▪ Continued focus on change in Ratos’s companies ▪ Conditions exist for portfolio of companies at end of Q1 to increase operating profit in 2015 12
Slide 13: Q&A
Q&A 13