Ratos AB: Strong cash flow, low leverage and increased profit

Regulatory Information 2024-02-12

Q4 2023

• Adjusted EBITA amounted to SEK 326m (318)
• Operating profit amounted to SEK 1,206m (282)
• Profit for the period amounted to SEK 980m (45)
• Adjusted diluted earnings per share amounted to SEK 0.15 (-0.11)
• Diluted earnings per share amounted to SEK 1.45 (-0.11)
• Cash flow from operating activities amounted to SEK 882m (21)

Full-year 2023

• Adjusted EBITA amounted to SEK 2,244m (1,966)
• Operating profit amounted to SEK 3,010m (1,618)
• Profit for the period amounted to SEK 2,006m (879)
• Adjusted diluted earnings per share amounted to SEK 2.43 (2.08)
• Diluted earnings per share amounted to SEK 3.72 (1.68)
• Cash flow from operating activities amounted to SEK 4,275m (1,431)
• Adjusted leverage excluding finance leases was 1.1x (2.3x)
• Leverage excluding finance leases was 0.7x (2.5x)
• The Board of Ratos proposes a dividend for full-year 2023 of SEK 1.25 per share (0.84)

Significant events during and after the end of the quarter

• The previous impairment of Aibel amounting to SEK 1,656m was reversed during the period and had a positive impact on EBITA
• As a result of accounting errors within NVBS Projekt and NVBS Anläggning (two subsidiaries of Expin Group), the acquisition analysis has been adjusted to increase the original recognised goodwill by SEK 308m. Expin Group has also decided to leave the engineering projects market. All in all, this resulted in impairment of goodwill of SEK 524m in the period
• Goodwill in Plantasjen was impaired by SEK 250m in conjunction with the annual impairment testing in the fourth quarter
• After the end of the quarter, HL Display signed an agreement to acquire pr trading-Flekota A/S, the company’s distribution partner in Denmark

“Adjusted EBITA amounted to SEK 326m for the quarter and SEK 2,244m for the full year, up 2% and 14%, respectively. Sales totalled SEK 7,960m for the quarter and SEK 33,748m for the full year, down 3% and up 13%, respectively. Free cash flow amounted to SEK 3,073m for the full year and leverage ratio was 0.7x (2.5x). As a result of continued strong cash flows and low leverage, we can accelerate the pace of add-on acquisitions.”

Jonas Wiström, President and CEO, Ratos

A presentation of the interim report will be held today at 09.00 CET. The presentation will be held in English and will also be available as a webcast on Ratos website, www.ratos.com.

The presentation can be followed on Youtube via the following link;
https://youtube.com/live/7Hg1raV2EpQ?feature=share

Participants who wish to ask questions live are asked to pre-register, please send an e-mail to helena.jansson@ratos.com in advance for a personal invitation.

Representatives of the media are welcome to contact Josefine Uppling, Vice President Communication, for interview requests.

Stockholm 12 February 2024
Jonas Wiström
President and CEO

For further information, please visit www.ratos.com or contact:
Josefine Uppling, Vice President Communication and Sustainability
+46 76 114 54 21
josefine.uppling@ratos.com

Jonas Ågrup, CFO and IR
+46 8 700 17 00

Jonas Wiström, President and CEO
+46 8 700 17 00

This is information that Ratos AB is obliged to make public pursuant to the Swedish Securities Market Act. The information was submitted for publication, through the agency of the contact persons set out above, at 7:00 a.m. CET on 12 February 2024.


About Ratos
Ratos is a business group consisting of 17 companies divided into three business areas: Construction & Services, Consumer and Industry. The companies have approximately SEK 34 billion in net sales (LTM). Our business concept is to own and develop companies that are or can become market leaders. We have a distinct corporate culture and strategy – everything we do is based on our core values: Simplicity, Speed in execution and It’s All About People. We enable independent companies to excel by being part of something larger. People, leadership, culture and values are key focus areas.