Slide 1: Presentation – Q3 2023
Presentation – Q3 2023 Presentation – Q1 2023 2327 October 2023 April 2023
Slide 2: Third quarter: strong cash flow, decreased leverage and EBITA increased +20%
Third quarter: strong cash flow, decreased leverage and EBITA increased +20% Net sales Adj EBITA +20% SEK 7 971m growth +13% Strong EBITA growth in Construction & Services and Industry Plantasjen EBITA negatively affected by planned inventory reduction program Net sales +13%, whereof organic
Slide 3: Group financials Q3 2023
Group financials Q3 2023 Net sales, SEKm Adjusted EBITA, SEKm +18% +13% 7,971 7,039 +17% +20% 517 5,371 4,868 432 365 321 Adjusted EBITA 6.6% 6.8% 6.1% 6.5% margin % Q3 2020 Q3 2021 Q3 2022 Q3 2023 Q3 2020 Q3 2021 Q3 2022 Q3 2023 3
Slide 4: Business Areas
Business Areas
Slide 5: Construction & Services: Strong growth in net sales and adjusted EBITA
Construction & Services: Strong growth in net sales and adjusted EBITA We build and maintain a sustainable society Comments • Net sales growth 10%, organic 10% • Well prepared for a more challenging market (orderbook and low presence in residential construction) • Strong EBITA in HENT and Aibel due
Slide 6: Industry: Strong EBITA growth
Industry: Strong EBITA growth Building industrial market leaders, based in the Nordics exporting to the world Comments • Net sales increased 35%, whereof -8% organic • Continued low net sales in Diab wind segment and in Speed Group • Adjusted EBITA SEK 194m (166) • Adjusted EBITA-margin 7.9% (9.1%)
Slide 7: Consumer: Inventory reduction program in Plantasjen
Consumer: Inventory reduction program in Plantasjen Provide a better and easier life for consumers Comments • Net sales declined -5%, -5% organic, driven by lower sales in KVD in line with plan • EBITA SEK -67m (10). Plantasjen’s EBITA SEK -100m (6), negatively affected by inventory reduction progra
Slide 8: Financials
Financials
Slide 9: Net sales and adjusted EBITA
Net sales and adjusted EBITA SEKm SEKm LTM 33,984 LTM 2,237 +13% +20% 7,971 7,039 5,371 517 432 365 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2021 2022 2023 2021 2022 2023 Net sales growth of 13% in the quarter whereof 2% Adjusted EBITA growth of 20% in the quarter organic growth Adjuste
Slide 10: Cash flow from operating activities
Cash flow from operating activities SEKm LTM 3,413 Cash flow from operating activities, last 12 months, SEKm Q3 2023 Q3 2022 FY 2022 +17% EBIT, LTM 2,086 1,715 1,618 Adjustment for non-cash items 1,471 977 1,227 Received dividends and -414 -461 -476 financial items, net 862 736 Income tax paid -271
Slide 11: Net working capital
Net working capital SEKm NWC 4QTR average Net working capital, SEKm Q3 2023 Q3 2022 FY 2022 % LTM net sales -30% Inventories 2,135 2,549 2,477 Trade receivables 3,166 3,318 3,699 979 Contract assets 1,154 951 1,250 Accounts payable 2,732 2,917 2,916 683 Contract liabilities 1,782 1,384 1,750 507 3.4
Slide 12: Strong organic and acquired EBITA growth in the quarter
Strong organic and acquired EBITA growth in the quarter Net sales bridge, SEKm 7,971 Comments 88 0 Comments 167 Net sales 676 • Organic net sales growth of 2% in the 7,039 quarter • Net sales up 13%, of which 10% acquired and 1% FX-effect Q3 Acquired/ Organic FX Other Q3 2022 disposed 2023 EBITA Adj
Slide 13: Leverage development
Leverage development Leverage Comments Comments 2.5x 2.2x • Leverage at 1.3x in Q3 2023, below the target range (1.5x – 2.5x) 1.6x 1.3x • Decreased leverage in the quarter due to strong cash flow and 0.9x 0.9x increased LTM EBITDA 0.6x • Net debt SEK 3,254m (1,824) 0.1x -0.5x Q3 2021 Q4 Q1 Q2 Q3 202
Slide 14: 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 15: Final Remarks
Final Remarks
Slide 16: Final remarks
Final remarks A group of market leaders with a strong culture and being part of something larger EBITA +20% Net sales +13%, whereof organic +2% Strong cash flow and decreased leverage Our focus is technology- and infrastructure solutions Ratos is a group with focus on technology and infrastr
Slide 17: Ratos is on track to reach SEK 3bn EBITA goal by 2025
Ratos is on track to reach SEK 3bn EBITA goal by 2025 3,000 +47% 1,966 Organic EBITA 1,802 growth 1,468 +86% 701 425 2018 2019 2020 2021 2022 1.3x in Q3 2025 3.4x 2.5x *Based on current structure, all exit gains, sale of property & revaluation of D&B shares excluded
Slide 18: Q&A
Q&A RATOS