Slide 1: Interim report January - June 2017
Interim report January - June 2017 Magnus Agervald 17 August 2017
Slide 2: An eventful first half of the year with improved profit
An eventful first half of the year with improved profit ▪ Updated strategic agenda presented on Ratos’s Capital Markets Day ▪ Important divestments signed in the second quarter − Nebula and Serena Properties ▪ Divestment of AH Industries and the remaining shares of Arcus in the first quarter ▪ Redem
Slide 3: Diversified company portfolio
Diversified company portfolio Sales breakdown by segment*, at 30 June 2017 Net sales trend* at 30 June 2017 (Local currency) Business Healthcare Technology, % services 2% 2% Media, 20 Telecom 12% 15 Industrials 10 32% 5 0 -5 -10 -15 -20 Construction -25 25% Consumer goods/retail 27% * Adjusted for t
Slide 4: Varied market situation
Varied market situation ▪ Varies between the companies, which are exposed to different segments and geographies ▪ Overall positive market development Sales breakdown by geographic market ▪ Continued uncertainty in the offshore market − Weak market development in offshore affecting Aibel and GS-Hydro
Slide 5: Improved earnings
Improved earnings ▪ Development in company portfolio − Increased reported EBITA ▪ Improved profit before tax − Increased from SEK 7m to SEK 514m ▪ Lowered central management costs − From SEK -145m to SEK -84m, YTD 2017 − From SEK -100m to SEK -39m, Q2 2017 ▪ Continued focus on earnings and developme
Slide 6: Continued focus on long-term value creation
Continued focus on long-term value creation ▪ Growth initiatives through add-on acquisitions − Plantasjen, Bisnode and Speed Group ▪ Strategic and operational investments − Plantasjen and HENT − Ledil, Oase Outdoors, Speed Group,Diab and TFS ▪ Efficiency enhancement of Ratos’s central organisation ▪
Slide 7: Performance in the companies Jan-Jun 2017
Performance in the companies1) Jan-Jun 2017 Ratos’s holding Sales in the portfolio 11,421 +2% The portfolio’s 757 +21% EBITA Adjusted EBITA2) in the portfolio 777 -4% EBT 514 7 1) Comparison with corresponding period last year and for comparable companies. 2) Excluding items affecting comparability.
Slide 8: Performance in the companies Q2 2017
Performance in the companies1) Q2 2017 Ratos’s holding Sales in the portfolio 6,383 -1% The portfolio’s 694 +7% EBITA Adjusted EBITA2) in the 706 -6% portfolio EBT 546 32 1) Comparison with corresponding period last year and for comparable companies. 2) Excluding items affecting comparability. 17 Au
Slide 9: Company overview – development status
Company overview – development status GOOD DEVELOPMENT DEVIATIONS CHALLENGES HENT Sales +1% Aibel Sales +5% GS-Hydro Sales -1% EBITA +1% EBITA +68% EBITA +27% KVD Bisnode Jøtul EBITA marg +9.4% (9.3) EBITA marg +5.5% (3.5) EBITA marg -8.1% (-11.0) Ledil Diab Plantasjen HL Display airteam TFS Gudrun
Slide 10: Important exits for Ratos
Important exits for Ratos ▪ Nebula − Sold to Telia Company − Exit gain SEK 515m, IRR 37%, Money Multiple 3,3x ▪ Serena Properties − Sold to Fastighets AB Balder − Exit gain appr SEK 90m, IRR appr 30%, Money Multiple appr 1,5x Divestment of Nebula was completed in July, Serena is expected to be compl
Slide 11: Activity level in the transaction market still good
Activity level in the transaction market still good ▪ Continued high activity and challenging valuations ▪ Continued good access to bank financing ▪ Cash position SEK 1,281m − Cash position after closing of the divestments of Nebula and Serena Properties approximately 2,4 bn SEK 17 August 2017 11
Slide 12: Outlook
Outlook ▪ Market development varies between segments and geographies − Continued weak development within offshore ▪ Focus on earnings in portfolio companies ▪ High activity in the transaction market but challenging valuations ▪ Looking for companies that fits Ratos’s unique offering ▪ Further effect
Slide 13: Q&A
Q&A 17 August 2017 13