Slide 1: Telephone conference
Telephone conference CEO Susanna Campbell 7 November 2014
Slide 2: Q1-3 2014: High level of transaction activity and continued improvement in holdings
Q1-3 2014: High level of transaction activity and continued improvement in holdings ▪ Increased operating profit in majority of holdings ▪ Increased market activity continues, but not gaining momentum ▪ Q4 expected to be in line with Q3 ▪ Major transactions: SB Seating and Inwido ▪ Net cash approxim
Slide 3: Increased market activity
Increased market activity ▪ Increased activity from mid-February ▪ Increase in order bookings, higher customer activity ▪ In half of the holdings ▪ Q3: trend continues but not gaining momentum ▪ Many markets remain sluggish/stable ▪ No effect from increased macro uncertainty 3
Slide 4: Improvement in holdings
Improvement in holdings ▪ Majority of holdings increase operating profit ▪ Action programmes having an impact ▪ A couple of companies drag down total (Aibel, Bisnode) ▪ Focus on change continues in many companies 4
Slide 5: Performance in holdings Q3 2014
Performance in holdings Q3 2014 Ratos’s share 100% Ratos’s share excl. Aibel Sales -11% -1% +7% EBITA -17% -4% +4% EBITA excluding items -11% 0% +7% affecting comparability EBT -13% +11% +23% EBT excluding items -9% +8% +15% affecting comparability 5
Slide 6: Performance in holdings Q1-3 2014
Performance in holdings Q1-3 2014 Ratos’s share 100% Ratos’s share excl. Aibel Sales -9% -2% +5% EBITA -21% -10% +1% EBITA excluding items -10% -2% +5% affecting comparability EBT -45% -12% +14% EBT excluding items -10% +11% +23% affecting comparability 6
Slide 7: Overall view of performance
Overall view of performance Arcus-Gruppen Aibel AH Industries Biolin Scientific Bisnode Hafa Bathroom Group GS-Hydro DIAB Jøtul HENT Euromaint Inwido HL Display KVD Mobile Climate Control Nebula Nordic Cinema Group (SB Seating) 7
Slide 8: Strong transaction market
Strong transaction market ▪ Higher pressure – demand for acquisition candidates ▪ IPO market functioning well ▪ Very good access to bank financing ▪ No signs of slowdown ▪ High level of activity for Ratos − Exits − Acquisitions more challenging 8
Slide 9: Two major exits for Ratos
Two major exits for Ratos ▪ Two exits − Inwido IPO − Sale SB Seating (completed in October) ▪ Exit gains total approx. SEK 1,374m (SEK 1,174m in Q3) ▪ Strong financial position: cash approx. SEK 3.8 billion 9
Slide 10: Inwido IPO – Europe’s leading window manufacturer
Inwido IPO – Europe’s leading window manufacturer ▪ First trading day 26 September − SEK 68 per share − Ratos sold shares for SEK 2,579m − Ratos’s holding today 31% ▪ Value creation approx. SEK 2.6 billion for Ratos − Exit gain approx. SEK 1,174m, IRR 15%, Money multiple 3.3x ▪ From leading in Swede
Slide 11: Portfolio pro forma, after exits: performance in holdings Q1-3 2014
Portfolio pro forma, after exits: performance in holdings Q1-3 2014 Ratos’s share 100% Ratos’s share excl. Aibel Sales -9% -4% +4% EBITA -22% -10% +4% EBITA excluding items -10% -7% +1% affecting comparability EBT -53% -2% +55% EBT excluding items -9% +1% +21% affecting comparability 11
Slide 12: Remainder of 2014
Remainder of 2014 ▪ Steady, slow market recovery ▪ Increased overall macro uncertainty ▪ Changed portfolio after exits: pro forma ▪ Q4 expected to be in line with Q3 12
Slide 13: Q1-3 2014: High level of transaction activity and continued improvement in holdings
Q1-3 2014: High level of transaction activity and continued improvement in holdings ▪ Increased operating profit in majority of holdings ▪ Increased market activity continues, but not gaining momentum ▪ Q4 expected to be in line with Q3 ▪ Major transactions: SB Seating and Inwido ▪ Net cash approxim