Slide 1: Interim report January-September 2017
Interim report January-September 2017 Magnus Agervald 14 November 2017
Slide 2: Important divestments
Important divestments ▪ Four exits completed − Nebula − Serena Properties − Arcus − AH Industries ▪ Stable sales and profit development for the first nine months of 2017 − Weaker development in the third quarter ▪ GS-Hydro Holding Oy and GS-Hydro Oy was declared in bankruptcy in September ▪ Strong f
Slide 3: Diversified company portfolio
Diversified company portfolio Sales breakdown by segment*, at 30 September 2017 Net sales trend* at 30 September 2017 (Local currency, Q3 2017) Business Healthcare 2% Technology, Media, Telecom services 2% % 13% 20 15 Industrials 29% 10 5 0 -5 -10 -15 -20 -25 -30 Construction 27% Consumer goods/comm
Slide 4: Varied market situation
Varied market situation ▪ Unchanged and overall positive market development ▪ Varies between the companies, which are exposed to different segments and geographies Sales breakdown by geographic market -5%* 0%* Sales growth Q3 Sales growth YTD 2017 2017 * Adjusted for the size of Ratos’s holding. 4
Slide 5: Focus on earnings improvement
Focus on earnings improvement ▪ Good earnings trend Q1-Q3 − EBITA +7% ▪ Weaker earnings in Q3 − EBITA -18% − Negative EBITA-development in Diab, TFS and Plantasjen ▪ Improved profit before tax − Changed company portfolio − Improved earnings in Bisnode and lower non- recurring costs − Lowered central
Slide 6: Performance in the companies, January-September 2017
Performance in the companies1) January-September 2017, MSEK Ratos’s holding Sales in the portfolio 15,874 +0% The portfolio’s EBITA 1,006 +7% Adjusted EBITA2) in the portfolio 1,045 -7% EBT 1,255 -2,220 1) Comparison with corresponding period last year and for comparable companies. 2) Excluding item
Slide 7: Performance in the companies, Q3 2017
Performance in the companies1) Q3 2017, MSEK Ratos’s holding Sales in the portfolio 4,861 -5% The portfolio’s EBITA 202 -18% Adjusted EBITA2) in the portfolio 222 -15% EBT 741 -2,227 1) Comparison with corresponding period last year and for comparable companies. 2) Excluding items affecting comparab
Slide 8: Company overview – development status
Company overview – development status GOOD DEVELOPMENT DEVIATIONS CHALLENGES airteam Sales +1% Aibel Sales -1% Diab Sales +3% EBITA +14% EBITA +4% EBITA -69% Bisnode HL Display Jøtul EBITA marg 8.1% (7.2) EBITA marg 3.5% (3.3) EBITA marg 1.1% (3.7) Gudrun Sjödén TFS Group HENT Kvdbil Ledil Oase Outd
Slide 9: 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 SEK 79m, IRR 26%, Money Multiple 1.4x 9
Slide 10: GS-Hydro
GS-Hydro ▪ Filed for bankruptcy in September ▪ Liquidity and profitability problems, largest customers could not meet its payment commitments ▪ Extensive action programme and substantial capital contributions since 2015 10
Slide 11: Net seller in strong transaction market
Net seller in strong transaction market ▪ Continued high activity and challenging valuations ▪ Opportunities for Ratos to capture value creation through exits ▪ Continued good access to bank financing ▪ Challenging work to find attractive investment opportunities ▪ Cash position SEK 2,405m 11
Slide 12: Summary
Summary ▪ Market development varies between segments and geographies ▪ Focus on earnings in portfolio companies ▪ High activity in the transaction market but challenging valuations ▪ Looking for companies that fits Ratos’s unique offering 12
Slide 13: Q&A
Q&A RATaS