Slide 1: Presentation Q2 2024
Presentation Q2 2024 18 July 2024 .
Slide 2: Our financial segment reporting
Our financial segment reporting Industry Construction & Services Consumer Industrial Services Product Solutions Critical Infrastructure Construction Consumer 2
Slide 3: Second quarter: increased EBITA and EBITA-margin, strong cash flow and high order intake
Second quarter: increased EBITA and EBITA-margin, strong cash flow and high order intake • EBITA +2% Net sales • Weak quarter in Plantasjen SEK 9,114m • EBITA-margin 12.1% (10.8) decline 9% • Net sales declined 9%, whereof organic -10% • Strong order intake in Construction and Critical Infrastructur
Slide 4: Group financials Q2 2024
Group financials Q2 2024 Net sales, SEKm Adjusted EBITA, SEKm +2% +9% +2% -9% 10,001 1,078 1,101 1,035 9,114 963 8,420 6,994 Adjusted 14.8% 11.4% 10.8% 12.1% EBITA margin % Q2 2021 Q2 2022 Q2 2023 Q2 2024 Q2 2021 Q2 2022 Q2 2023 Q2 2024 4
Slide 5: Business Areas
Business Areas 5 .
Slide 6: Industry: EBITA growth and EBITA-margin at 10.2%
Industry: EBITA growth and EBITA-margin at 10.2% Segments: Industrial Services and Product Solutions Comments Net sales LTM +8% SEKm 10,446 9,641 • Net sales decreased -3.6%, whereof -6.1% organic and 2.1% structural 6,816 • Low net sales in wind market and CRO market • EBITA SEK 276m (258) Q2 Q3 Q4
Slide 7: Segment financials - Industry Q2 2024
Segment financials - Industry Q2 2024 Industrial Services Net sales SEK 1,339m (1,432), -6% Share of total group sales 15% EBITA SEK 87m (88) EBITA-margin 7% (6%) EBITA adjusted for calendar effect SEK 74m, EBITA-margin 6% Good performance in the technical consultancy companies including calendar ef
Slide 8: Construction & Services: Strong EBITA and order intake growth
Construction & Services: Strong EBITA and order intake growth Segments: Construction and Critical Infrastructure Comments Net sales LTM Order backlog Order intake LTM 18,396 SEKm -4% SEKm 17,400 16,773 • Net sales growth -11.7%, whereof 32,733 31,498 32,686 organic growth -12.2% 12,573 • Lower net s
Slide 9: Segment financials – Construction & Services Q2 2024
Segment financials – Construction & Services Q2 2024 Construction Net sales SEK 3,123m (3,780), -17% Share of total group sales 34% EBITA SEK 178m (152) EBITA-margin 6% (4%) Order intake SEK 6,707m (3,017) Order backlog SEK 22,785m (22,201) Critical Infrastructure Net sales SEK 915m (794), +15% Shar
Slide 10: Consumer: Volume drop and lower EBITA
Consumer: Volume drop and lower EBITA Segment: Consumer Comments Net sales LTM SEKm -6% • Net sales decreased 9.5%, whereof 6,377 6,011 5,652 -9.2% organic, driven by Plantasjen and unfavorable weather conditions in Norway • EBITA SEK 518m (581), down 11% • Plantasjen’s EBITA SEK 478m (543), Q2 Q3 Q
Slide 11: Financials
Financials 11 .
Slide 12: Net sales and adjusted EBITA
Net sales and adjusted EBITA SEKm LTM 32,870 SEKm LTM 2,302 +2% -9% 10,001 1,078 1,101 9,114 963 8,420 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2022 2023 2024 2022 2023 2024 • Negative net sales growth of 8.9% in the quarter • Adjusted EBITA growth of 2% in the quarter whereof -9.7% org
Slide 13: Cash flow from operating activities
Cash flow from operating activities SEKm LTM 3,004 -31% Cash flow from 2,024 operating activities, SEKm Q2 2024 Q2 2023 FY 2023 EBIT 1,070 1,038 3,010 1,397 Adjustment for non-cash 286 466 565 items 1,054 Received dividends and -150 -161 -430 financial items, net Income tax paid -81 -73 -316 Change
Slide 14: Net working capital
Net working capital SEKm NWC 4QTR average % LTM net sales Net working capital, 2024 2023 2023 SEKm June June Dec 1.187 Inventories 2,025 2,401 1,868 -78% 915 Trade receivables 3,220 3,716 3,277 3.6% 3.2% Contract assets 634 1,046 725 Accounts payable 2,687 2,774 2,803 203 0.8% Contract liabilities 1
Slide 15: EBITA growth of 2%
EBITA growth of 2% Net sales bridge, SEKm Net sales 10,001 57 • Net sales down 9% in the quarter • Acquired growth of 1% in the quarter 968 • Negative organic sales growth of -10% in the 9,114 quarter mainly driven by Construction 25 0 segment Q2 2023 Acquired/disposed Organic FX Other Q2 2024 • Sma
Slide 16: Leverage, ROCE and ROIC
Leverage, ROCE and ROIC Leverage development Leverage Leverage reported Leverage adjusted • Leverage at 0.7x in Q2 2024, below the 2.5x target range (1.5x – 2.5x) 2.2x • Leverage at 1.2x excluding reversal of write- down of the holding in Aibel • Decreased leverage in the quarter due to 1.6x decreas
Slide 17: Financial targets
Financial targets Targets 2025 Outcomes Q2 2024 EBITA growth SEK 3 billion SEK 2,302m EBITA is to amount of at least SEK 3 billion by 2025 (Adjusted EBITA LTM) Leverage 1.5 – 2.5x 0.7x (non-adjusted) 1.2x (adjusted) Net debt, excluding financial lease liabilities, in relation to EBITDA should normal
Slide 18: Final Remarks
Final Remarks 18 .
Slide 19: Final remarks
Final remarks • EBITA +2% A group of market leaders • Weak quarter in Plantasjen with a strong culture and • EBITA-margin 12.1% (10.8) being part of something • Net sales declined 9%, whereof organic -10% larger • Strong order intake in Construction and Critical Infrastructure • Strong development i
Slide 20: Ratos is on track to reach SEK 3bn EBITA goal by 2025
Ratos is on track to reach SEK 3bn EBITA goal by 2025 19% 3,000 2,244 2,302 +33% 1,966 1,802 1,468 +86% 701 425 2018 2019 2020 2021 2022 2023 Q2 2024 2025 LTM 0.1x 2.3x (2.5) 1.1x (0.7) 1.2x (0.7) 20
Slide 21: Q&A
Q&A 21 .
Slide 22: Ratos Group and Business areas
Ratos Group and Business areas Net sales, EBITA and EBITA-margin Q2 Q2 Change Net sales, SEKm 2024 2023 % Industry 2,696 2,798 -4% Construction & Services 4,038 4,573 -12% Consumer 2,380 2,630 -9% Elimination of internal net sales -0 Net sales 9,114 10,001 -9% Q2 Q2 Change EBITA, SEKm 2024 2023 % In