Slide 1: Presentation – Q3 2021
Presentation – Q3 2021 25 October 2021
Slide 2: Ratos – a company group building great companies
Ratos – a company group building great companies A company group A clear culture & A part of of market leaders strategy something larger We own companies that are or Simplicity, speed in execution, Ratos is a long-term owner can become market leaders it’s all about people with no exit horizon Profit
Slide 3: Ratos is a Nordic business group with locations worldwide
Ratos is a Nordic business group with manufacturing & sales locations in Europe, North America, South America, Asia and Australia Location of Ratos subsidiaries Ratos companies 3
Slide 4: 5 year summary – Ratos group EBIT
5 year summary – Ratos group EBIT Ratos EBIT Consolidated, excluding capital gains, MSEK 1.926 1.653 522 188 -1.913 2016 2017 2018 2019 2020 Note: Consolidated EBIT impacted by impairment charges 4
Slide 5: Financial targets
Financial targets Dividend payout EBITA Net Debt / EBITDA 30–50% 3 Billion SEK 1.5 – 2.5x of profit after tax Net debt in relation to EBITDA The dividend payout ratio should normally range from 1.5 EBITA is to amount to at least should amount to 30–50% of to 2.5x, excluding financial SEK 3 billion b
Slide 6: Q3 2021
Q3 2021 Improved earnings in the companies, strong order intake, and new acquisitions
Slide 7: Adj. consolidated EBIT in Ratos is improving
Adj. consolidated EBIT in Ratos is improving. Revaluation of Dun & Bradstreet shares impacts reported EBIT with -149 MSEK Comments Ratos EBIT Consolidated, MSEK EBIT impact of -149 MSEK from unrealised loss in D&B Reported EBIT D&B re-valuation impact stock Unusually high tax rate of 52% of EBT
Slide 8: EBITA in company group in Q3 2021 continues to grow
EBITA in company group in Q3 2021 continues to grow Comments Quarterly EBITA Ratos Share, MSEK Net sales amounted to 5 560 MSEK (5 577) Present Ratos companies Bisnode ̶ Quarterly organic growth of 2% EBITA amounted to 360 MSEK (426) 76 ̶ 9 / 12 companies improved EBITA in the quarter vs. previo
Slide 9: Centralized financing and improved leverage
Ratos is a company group – centralized financing and improved leverage Comments Net Debt / EBITDA LTM Net Debt continued to decrease to -1 613 MSEK in Q3 2021 from 2 635 MSEK in Q3 2020 1,4x ̶ Net Debt / EBITDA at -0.9x in Q3 2021 vs 1.4x in Q3 -2.0x 2020 1.1x Cash flow from operations decreased
Slide 10: Business Area: Construction & Services
Business Area: Construction & Services Comments Q3 2021 Q3 Organic sales development, -1.6% Organic growth EBITA ̶ Higher project volumes and good project execution in Aibel -1.6% +32 MSEK ̶ Material/project delays had an impact on airteam ̶ Many HENT projects in early stages which caused lower sa
Slide 11: Business Area: Consumer
Business Area: Consumer Comments Q3 2021 Q3 Organic sales development, +6.4% Organic growth EBITA ̶ Strong sales in KVD driven by trading cars in own book +6.4% -58 MSEK ̶ Plantasjen and Oase Outdoors slightly higher than PY EBITA increased by 21% adj. for Organic growth EBITA Bisnode Q3 2021 Q3
Slide 12: Business Area: Industry
Business Area: Industry Comments Q3 2021 Q3 Organic sales development, +3.7% Organic growth EBITA ̶ Strong organic sales growth for HL Display, LEDiL and TFS +3.7% -39 MSEK ̶ Negative sales growth for Diab. Sales to the wind market decreased by 28%. Increased sales in the Marine segment Organic gr
Slide 13: Focus on sustainability
Focus on sustainability The companies in the Ratos Group contribute considerably to long-term sustainable development One area is industrial construction in wood. Sara Kulturhus in Skellefteå, Sweden´s tallest wooden building, with HENT as the general contractor, opened in the quarter In Septe
Slide 14: Acquisition strategy
Acquisition strategy Add-ons & adjacencies Platform acquisitions Add-ons Decentralized company-driven processes Market leaders or potential to be market leaders Group companies often seen as natural consolidators Bilateral processes, more attractive valuations, lower risk Sizeable EBITA
Slide 15: Acquisition strategy – how we will succeed
Acquisition strategy – how we will succeed 1 2 3 Stable EBITA Deploy significant Strong team & growth firepower track record 1 Operating cash flows can fund high acquisition pace New companies can grow and improve EBITA Capacity to deploy an estimated 9 000 MSEK in new acquisitions 2 Leverag
Slide 16: Two acquisitions made in Q3, six YTD in 2021
Two acquisitions made in Q3, and a total of 6 acquisitions made YTD in 2021 with an annual revenue of approx. 1 900 MSEK Concept Group ULTEM Strengthened HL’s offer and customer Sales Add-on Add-on Acquired ULTEM foam production line base in UK acquisition in Production synergies and broadened
Slide 17: Summary Q3 2021
Summary Q3 2021 Strong order intake Growth Positive organic net sales growth Adjusted EBITA continues to increase EBITA 9 / 12 companies improved EBITA in the quarter vs. year earlier period Plantasjen impacts operating cash flows due to inventory build-up Cash Flow Leverage is improving
Slide 18: Q&A
Q&A RATOS
Slide 19: Relentless since 1866
Relentless since 1866 www.ratos.com