Preliminary financial information regarding Q4 and full year 2023 and proposed dividend

Continued strong cash flows, reduced leverage and improved results. The result was positively affected by reversed write-downs in Aibel and negatively affected by write-downs in Expin Group and Plantasjen.

Q4 2023
 

-   Net sales amounted to SEK 7,960m (8,195)

-   Adjusted1) EBITA amounted to SEK 326m (318)

-   EBITA amounted to SEK 1,982m (318). EBITA was positively affected by a reversal of a previous write-down of the holding in Aibel of SEK 1,656m

-   Operating profit amounted to SEK 1,206m (282) and was positively affected by a reversal of a previous write-down of the holding in Aibel and negatively by a write-down of goodwill and book values ​​in Expin Group as well as a write-down of goodwill in Plantasjen.

-   Adjusted diluted earnings per share amounted to SEK 0,15 (-0,11) 2)

-   Diluted earnings per share amounted to SEK 1,45 (-0,11)

-   Cash flow from operating activities amounted to SEK 882m (21)

Full-year 2023
 

-   Net sales amounted to SEK 33,748m (29,875)

-   Adjusted1) EBITA amounted to SEK 2,244m (1,966)

-   EBITA amounted to SEK 3,901m (1,718)

-   Operating profit amounted to SEK 3,010m (1,618)

-   Adjusted diluted earnings per share amounted to SEK 2.43 (2.08) 2)

-   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 financial leasing amounted to 1.1x (2.5x) 3)

-   Leverage excluding financial leasing amounted to 0.7x (2.5x)

-   The Board of Ratos proposes a dividend for full-year 2023 of SEK 1.25 per share (0.84)

1) For definition see https://www.ratos.com/sv/investerare/definitions/. EBITA is adjusted for the reversal of the write-down of the holding in Aibel by SEK 1,656m (Refers to Ratos controlling share).
2) Earnings per share are adjusted for the reversed write-down of the holding in Aibel with SEK 1,060m and the write-down of goodwill in Expin Group and Plantasjen.
3) Adjusted for the reversed write-down of the holding in Aibel.

Reversal of write-down of the holding in Aibel
Aibel has developed very positively in recent years and a transformation from fossil to renewable energy is ongoing. A majority of the order book today consists of contracts related to offshore wind and electrification. For 2023, EBITA amounted to NOK 899m and the company ended the year with a net cash position of NOK 1,865m and an order backlog of NOK 32 billion. As a result of this, the write-down that took place of the holding in Aibel during 2016 is no longer justified and has therefore been reversed in the period.

Impairment of goodwill and book values in Expin Group
During the period, Ratos has identified errors in the accounting within NVBS Projekt and NVBS Anläggning (two subsidiaries of the Expin Group), which are mostly attributable to the time before Ratos' acquisition of the company. Ratos investigates whether the now corrected errors arose due to irregularities. As a result, the acquisition analysis has been adjusted, which increased the originally reported goodwill by SEK 308m. Expin Group has also decided to leave the market for civil engineering projects and focus its operations on railway track, electrification, signal and telecom. All in all, this has resulted in a write-down of goodwill of SEK 524m in the period. Expin Group operates in a market with strong growth and the identified, now corrected, errors in previous projects are not judged to affect the company's long-term earning capacity. Overall, the amount of goodwill attributable to the acquisition has decreased from SEK 666m to SEK 450m after the implemented adjustments.

Impairment of goodwill in Plantasjen
During the last two years, Plantasjen has had a weak financial development. In connection with the annual impairment test in the fourth quarter, a write-down of goodwill of SEK 250m was made. In 2024, a comprehensive cost-saving program will be implemented.

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

Stockholm 22 January 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 EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 07:00 a.m. CET on 22 January 2024.

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