===== SIDA 1 ===== Interim report Q1 2023 ===== SIDA 2 ===== 1 Ratos Interim Report Q1 2023 Interim report January-March, 2023 Q1 2023  Adjusted 1) EBITA amounted to SEK 324m (253)  Operating profit amounted to SEK 285m (5)  Profit in the year-earlier period was negatively impacted by an unrealised loss of SEK -100m related to the revaluation of shares in Dun & Bradstreet Holding Inc and restructuring costs of SEK -130m attributable to Diab  Diluted earnings per share amounted to SEK -0.09 (-0.66)  Cash flow from operating activities amounted to SEK 507m (-379)  Leverage excluding finance leases was 2.2x (0.9x) Significant events during and after the end of the quarter  HL Display, which is part of the Industry business area, acquired the company Akriform Plast AB on 15 February, and the companies Oechsle Display Systems and werba print & display were acquired on 3 April  During the quarter, Ratos initiated the process for a compulsory buy-out of the remaining shares in Semcon. The process is expected to be completed in the second quarter of 2023 Ratos Group, SEKm Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 LTM LTM LTM LTM Full Year Full Year Full Year Full Year 2023 2023 2023 2023 2022 2022 2022 2022 Rolling Rolling Rolling Rolling 2022 2022 2022 2022 Net sales 7,817 6,220 26% 31,472 29,875 5% EBITDA 661 334 98% 3,285 2,958 11% EBITA, adjusted/one.sups⁾ 324 253 28% 2,038 1,966 4% EBITA %, adjusted/one.sups⁾ 4.1% 4.1% 6.5% 6.6% EBITA 324 22 pos 2,020 1,718 18% EBITA % 4.1% 0.4% 6.4% 5.8% Operating profit 285 5 pos 1,898 1,618 17% Profit/loss before tax 90 -98 pos 1,367 1,178 16% Profit/loss for the period 57 -139 141% 1,075 879 22% Basic earnings per share, SEK -0.09 -0.66 86% 2.26 1.69 34% Diluted earnings per share, SEK -0.09 -0.66 86% 2.26 1.68 35% Cash flow from operating activities/two.sups⁾ 507 -379 pos 2,317 1,431 62% Leverage excl. financial leasing 2.2x 0.9x 2.2x 2.5x Return on capital employed excl. financial leasing 10.0% 11.3% 10.0% 10.2% Change% Change% Change% Change% Change% Change% Change% Change% /two.sups⁾ Cash flow metric is changed from 1 January 2023 retroactively, for more information see page 15 "Note 1 Accounting principles". /one.sups⁾ For reconciliation of EBITA, adjusted see page 18. For definition see page 21. ===== SIDA 3 ===== 2 Ratos Interim Report Q1 2023 CEO comments on performance in the first quarter of 2023 Adjusted EBITA up 28% in the first quarter – sales growth remains favourable Adjusted EBITA amounted to SEK 324m (253) for the quarter, up 28%. EBITA was negatively impacted by Plantasjen, whose earnings declined SEK 111m, mainly due to adverse weather in March. The Group’s sales in the quarter increased 26% to SEK 7,817m, of which 8% was organic growth. Demand remained favourable, with a high order intake in the quarter. Our acquired companies performed well and have already created synergies with other group companies. Cash flow improved, and Ratos’s leverage declined to 2.2x. Demand in the first quarter remained favourable. Net sales for the period amounted to SEK 7,817m (6,220), up 26% year on year. Organic sales growth in the period amounted to 8%. Demand remained high, and our order books were at record-breaking levels. The first quarter is a quiet quarter for Ratos due to seasonal effects. Adjusted EBITA amounted to SEK 324m, up 28%. Reported EBITA totalled SEK 324m, compared with SEK 22m in the year-earlier period. All companies performed well with the exception of Plantasjen and Speed Group. Aibel’s EBITA also declined, but only due to phasing of its projects. The company has good prospects to deliver yet another record-breaking year in 2023. Ratos’s leverage declined to 2.2x in the quarter as a result of higher EBITDA and improved operational cash flow. To make it easier to analyse the Ratos Group, we decided to report sales and EBITA for Plantasjen separately. The seasonally dependent Plantasjen is a relatively large company in the Group, whose sales and EBITA vary considerably between quarters. Development of Ratos’s business areas Development of Ratos’s business areas Development of Ratos’s business areas Development of Ratos’s business areas EBITA for the Construction & Services Construction & Services Construction & Services Construction & Services business area amounted to SEK 284m (292), down 2%, and the EBITA margin was 6% (8). Aibel’s EBITA declined during the quarter compared with the preceding year. The company generates limited earnings at the start of major projects. The construction companies continued to deliver a strong performance, and it bears repeating that these projects almost exclusively comprise commercial and public properties. The exposure to residential construction is very limited. The business area’s net sales for the first quarter amounted to SEK 4,515m, a year-on-year increase of 23%. Organic growth amounted to 19%. The structural effect was 6% and pertained to the acquisition of NVBS. EBITA for the Consumer Consumer Consumer Consumer business area amounted to SEK -162m (-75). The decline in earnings in Plantasjen was significantly lower than in the year-earlier period. Other companies improved their earnings during the quarter compared with the year-earlier period. Plantasjen posted EBITA of SEK -215m (-103) for the quarter. Plantasjen’s sales in March were negatively impacted by adverse weather in Norway and Sweden. Net sales for the business area amounted to SEK 1,017m (1,279) for the quarter, down 21% year on year. The consumer market continued to be negatively impacted by high inflation, with a decline in household purchasing power, particularly with respect to durable consumer goods. Adjusted EBITA for the Industry Industry Industry Industry business area amounted to SEK 252m (87) for the quarter, and the adjusted EBITA margin was 11% (7). This significant improvement in earnings was attributable to acquired EBITA in Semcon and Knightec and to the fact that all other companies in the business area improved their earnings in the quarter compared with the earlier-period. Net sales in Industry amounted to SEK 2,285m for the quarter, up 79%. This increase was primarily attributable to acquisitions and to growth in all other companies. Organic growth amounted to 7% and the structural effect amounted to 66%. The collaboration between Knightec and Semcon developed quickly, with the companies working together to create a stronger and more complete offering, which resulted in new business during the quarter. HL Display signed agreements for three acquisitions in the quarter. HL Display has since its acquisition journey started in 2021 acquired seven companies which have generated, and will continue to generate, major industrial synergies. Sustainability and partnerships Sustainability and partnerships Sustainability and partnerships Sustainability and partnerships Corporate Sustainability Reporting Directive (CSRD) is part of EU’s agenda for sustainable financing and a key component for meeting the targets of the European Green Deal. As the new directive is implemented the requirements for sustainability reporting will increase. Going forward, sustainability reporting will require greater transparency and comparability. Ratos plans to devote a great deal of focus to this area during the year. It is gratifying to see new partnerships developing between the companies in the Group – in specific business areas and between the companies in general. Earlier, I mentioned the ongoing collaboration between Semcon and Knightec. Another example is HL Display and Speed Group, which have entered into a long-term partnership agreement concerning logistics services. Overall, Ratos’s performance in the quarter was significantly better than I dared to hope for a year ago when the full-scale invasion of Ukraine and all of its consequences became a reality. The strength of our management model, based on follow-up and earnings generation in a highly decentralised group, is becoming clear as our companies create synergies between themselves, on their own initiative. However, our progress towards becoming a group focused on infrastructure and technological solutions is moving somewhat more slowly than planned due to significantly weaker M&A and capital markets. Ratos continued to deliver improved earnings despite a turbulent global backdrop. Jonas Wiström, President and CEO ===== SIDA 4 ===== 3 Ratos Interim Report Q1 2023 Group performance Q1 2023 Net sales Net sales in the period amounted to SEK 7,817m (6,220), up 26% year on year. Organic sales growth in the period amounted to 8%. Construction & Services and Industry reported organic sales growth, while Consumers’ sales declined organically. Currency effects had a positive impact of SEK 6m (0%) on net sales. The structural effect amounted to SEK 1 ,083m (17%) and was mainly attributable to the acquisitions of Semcon and Knightec in the Industry business area and NVBS in the Construction & Services business area. EBITA Adjusted EBITA during the quarter amounted to SEK 324m (253). The adjusted EBITA margin was 4.1% (4.1). The change in earnings was due to higher earnings in the Industry business area and pertains to organic EBITA growth as well as acquired EBITA through Semcon and Knightec. Construction & Services was impacted by a seasonally weak quarter, with Aibel reporting low earnings due to the phase of its projects. Earnings in the Consumer business area declined during the quarter, primarily due to lower sales in Plantasjen. Construction & Services was impacted in the quarter by non-recurring costs of SEK 21m for efficiency programmes in Speed Group. Financial performance Q1 2023 Adjusted EBITA, quarterly and LTM, SEKm Adjusted EBITA, LTM, SEKm Sales bridge Q1 Net sales, LTM, SEKbn Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 LTM LTM LTM LTM Full Year Full Year Full Year Full Year Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 LTM LTM LTM LTM Full Year Full Year Full Year Full Year SEKm SEKm SEKm SEKm 2023 2023 2023 2023 2022 2022 2022 2022 Rolling Rolling Rolling Rolling 2022 2022 2022 2022 2023 2023 2023 2023 2022 2022 2022 2022 Rolling Rolling Rolling Rolling 2022 2022 2022 2022 Construction & Services 4,515 3,668 23% 17,749 16,901 284 292 -2% 1,269 1,276 Consumer 1,017 1,279 -21% 6,724 6,986 -162 -75 -115% 337 424 Industry 2,285 1,280 79% 7,007 6,002 252 87 pos 610 445 Group costs -50 -50 1% -179 -179 Elimination of internal sales -0 -7 -8 -15 Net sales and adjusted EBITA Net sales and adjusted EBITA Net sales and adjusted EBITA Net sales and adjusted EBITA 7,817 7,817 7,817 7,817 6,220 6,220 6,220 6,220 26% 31,472 31,472 31,472 31,472 29,875 29,875 29,875 29,875 324 324 324 324 253 253 253 253 28% 2,038 2,038 2,038 2,038 1,966 1,966 1,966 1,966 Revaluation and gain/loss listed shares -100 100% -18 -118 Items affecting comparability -130 100% -130 Amortisation and impairment of intangible assets in connection with company acquisitions -39 -17 -127% -122 -100 Consolidated operating profit Consolidated operating profit Consolidated operating profit Consolidated operating profit 285 285 285 285 5 5 55 pos 1,898 1,898 1,898 1,898 1,618 1,618 1,618 1,618 Finance net -195 -103 -88% -531 -440 Profit/loss before tax Profit/loss before tax Profit/loss before tax Profit/loss before tax 90 90 90 90 -98 -98 -98 -98 pos 1,367 1,367 1,367 1,367 1,178 1,178 1,178 1,178 Tax -33 -41 18% -292 -299 Profit/loss for the period Profit/loss for the period Profit/loss for the period Profit/loss for the period 57 57 57 57 -139 -139 -139 -139 141% 1,075 1,075 1,075 1,075 879 879 879 879 Net sales EBITA, adjusted Change Change Change Change % % % % Change Change Change Change % % % % 176 1,035 365 226 253 963 432 318 324 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 0 200 400 600 800 1,000 1,200 1,400 Q1 2021 Q2 Q3 Q4 Q1 2022 Q2 Q3 Q4 Q1 2023 LTM 1,655 1,733 1,777 1,802 1,879 1,807 1,874 1,966 2,038 8.0% 8.2% 8.2% 8.0% 7.7% 7.0% 6.8% 6.6% 6.5 % Q1 2021 Q2 Q3 Q4 Q1 2022 Q2 Q3 Q4 Q1 2023 EBITA % Net sales 2022, SEKm 6,220 Structure, % 17% Currency, % 0% Other, % 0% Organic growth, % 8% Total, % 26% 2023, SEKm 7,817 20.7 21.1 21.6 22.6 24.3 25.8 27.4 29.9 31.5 -1.3% 2.3% 2.4% 4.2% 7.9% 5.9% 6.5% 8.9% 5.3 % Q1 2021 Q2 Q3 Q4 Q1 2022 Q2 Q3 Q4 Q1 2023 Growth % ===== SIDA 5 ===== 4 Ratos Interim Report Q1 2023 Construction & Services Net sales Net sales for the first quarter amounted to SEK 4,515m, a year-on-year increase of 23%. Of this increase, 19% was driven by strong organic growth of services in construction and critical infrastructure and 6% was driven by completed acquisitions. The business area is well equipped with record-breaking order books in an uncertain market. Both projects in progress and the order books in the construction operations contain a large share of partnering projects and have very limited exposure to the housing market. EBITA EBITA for the business area amounted to SEK 284m (292) for the quarter, down 2%, and the EBITA margin was 6.3% (8.0). The decline in earnings was attributable to lower earnings generation in Aibel due to the phase of its projects and to non-recurring costs of SEK 21m for efficiency programmes in Speed Group. Financial performance EBITA, LTM, SEKm Net sales, LTM, SEKm Sales bridge, net sales The Construction & Services business area’s focus is on building and maintaining a sustainable society. The service offering ranges from constructing new sustainable buildings and maintaining critical infrastructure to energy supply and managing material flows. The business area’s operations benefit from current social developments and trends such as urbanisation, growing populations, the need for renewable energy and efficient resource management. The business area comprises the companies Aibel, airteam, HENT, NVBS, Presis Infra, Speed Group and SSEA Group. Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 LTM LTM LTM LTM Full Year Full Year Full Year Full Year SEKm SEKm SEKm SEKm 2023 2023 2023 2023 2022 2022 2022 2022 Rolling Rolling Rolling Rolling 2022 2022 2022 2022 Net sales 4,515 3,668 23% 17,749 16,901 5% EBITA, adjusted 284 292 -2% 1,269 1,276 -1% EBITA %, adjusted 6.3% 8.0% 7.1% 7.6% EBITA 284 292 -2% 1,269 1,276 -1% EBITA % 6.3% 8.0% 7.1% 7.6% Operating profit 264 276 -4% 1,188 1,199 -1% Operating profit % 5.9% 7.5% 6.7% 7.1% Cash flow from operating activities /one.sups⁾ 521 182 pos 1,910 1,691 13% Return on capital employed excl. financial leasing % 16% 25% 16% 16% Average number of employees 7,816 Change Change Change Change % % % % Change Change Change Change % % % % /one.sups⁾ Cash flow metric is changed from 1 January 2023 retroactively, for more information see page 15 "Note 1 Accounting principles". 490 526 567 677 842 992 1,136 1,276 1,269 4.7% 4.9% 5.3% 5.9% 6.6% 7.2% 7.5% 7.6% 7.1% Q1 2021 Q2 Q3 Q4 Q1 2022 Q2 Q3 Q4 Q1 2023 EBITA % 10,396 10,744 10,785 11,406 12,664 13,765 15,189 16,901 17,749 -2.8% 3.3% 0.4% 5.8% 11.0% 8.7% 10.3% 11.3% 5.0% Q1 2021 Q2 Q3 Q4 Q1 2022 Q2 Q3 Q4 Q1 2023 Growth % Q1 Q1 Q1 Q1 2023 2023 2023 2023 2022, SEKm 3,668 Structure, % 6% Currency, % -2% Other, % 0% Organic growth, % 19% Total, % 23% 2023, SEKm 4,515 ===== SIDA 6 ===== 5 Ratos Interim Report Q1 2023 Consumer Net sales Net sales in the business area for the first quarter amounted to SEK 1,017m (1,279), down 21% year on year. Organic growth was negative and amounted to -20%. Plantasjen’s net sales for the first quarter amounted to SEK 542m, down 18% year on year. Plantasjen’s sales were negatively impacted by adverse weather in March and a general decline in consumer purchasing power. EBITA EBITA for the business area amounted to SEK -162m (-75) for the quarter, and the EBITA margin was -16.0% (-5.9). The decline in earnings was attributable to weaker earnings in Plantasjen, which reported EBITA of SEK -215m compared with SEK -103m in the year-earlier period. Plantasjen’s earnings for the quarter were primarily negatively impacted by the adverse weather in March. Other companies in the business area improved their earnings during the quarter compared with the year-earlier period. Financial performance EBITA, LTM, SEKm Sales bridge, net sales Net sales, LTM, SEKm The Consumer business area works to simplify and improve life for consumers. To us, simplifying and improving life means, for example, making life healthier and more sustainable, and saving time. The business area consists of companies that are well positioned in relation to strong prevailing macrotrends such as spending holidays at home, growing interest in outdoor activities and interior design and horticulture. The business area comprises the companies KVD, Oase Outdoors and Plantasjen. Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 LTM LTM LTM LTM Full Year Full Year Full Year Full Year SEKm SEKm SEKm SEKm 2023 2023 2023 2023 2022 2022 2022 2022 Rolling Rolling Rolling Rolling 2022 2022 2022 2022 Net sales /one.sups⁾ 1,017 1,279 -21% 6,724 6,986 -4% EBITA , adjusted /one.sups⁾ -162 -75 -115% 337 424 -20% EBITA %, adjusted -16.0% -5.9% 5.0% 6.1% EBITA -162 -75 -115% 337 424 -20% EBITA % -16.0% -5.9% 5.0% 6.1% Operating profit/loss -163 -77 -114% 333 420 -21% Operating profit/loss % -16.1% -6.0% 4.9% 6.0% Cash flow from operating activities /two.sups⁾ -276 -507 46% 134 -97 pos Return on capital employed excl. financial leasing % 4% 18% 4% 6% Average number of employees 1,609 /one.sups⁾ Refer to page 19 for Plantasjens Net sales and EBITA, adjusted. /two.sups⁾ Cash flow metric is changed from 1 January 2023 retroactively, for more information see page 15 "Note 1 Accounting principles". Change Change Change Change % % % % Change Change Change Change % % % % 738 826 845 845 834 660 581 424 337 13.4% 14.9% 14.2% 13.6% 12.6% 9.5% 8.3% 6.1% 5.0% Q1 2021 Q2 Q3 Q4 Q1 2022 Q2 Q3 Q4 Q1 2023 EBITA % 5,492 5,553 5,934 6,232 6,643 6,953 7,004 6,986 6,724 1.8% 1.1% 6.9% 5.0% 6.6% 4.7% 0.7% -0.3% -3.8% Q1 2021 Q2 Q3 Q4 Q1 2022 Q2 Q3 Q4 Q1 2023 Growth % Q1 Q1 Q1 Q1 2023 2023 2023 2023 2022, SEKm 1,279 Structure, % 0% Currency, % 0% Organic growth, % -20% Total, % -21% 2023, SEKm 1,017 ===== SIDA 7 ===== 6 Ratos Interim Report Q1 2023 Industry Net sales Net sales in the business area for the first quarter amounted to SEK 2,285m (1 ,280), up 79%. The increase was attributable to the acquired companies Semcon and Knightec and to growth in all other companies. Organic growth amounted to 7% for the quarter. The structural effect amounted to 66% and pertained to the acquisitions of Semcon and Knightec. EBITA Adjusted EBITA for the business area amounted to SEK 252m (87) for the quarter, up 190% year on year. The adjusted EBITA margin was 11.0% (6.8). The improvement in earnings was mainly attributable to the acquired companies Semcon and Knightec. All companies in the business area improved their earnings during the quarter compared with the year-earlier period. Financial performance Adjusted EBITA, LTM, SEKm Sales bridge, net sales Net sales, LTM, SEKm The Industry business area develops market-leading industrial companies that are based in the Nordics but export to the entire world. The companies are active in more than 30 countries across five continents. The companies in the Industry business area are exposed to high-growth markets such as energy-efficient lighting, lightweight material, renewable energy, grocery, product development in Swedish industry and pharmacology. The business area comprises the companies Diab, HL Display, Knightec, LEDiL, Semcon, and TFS Healthcare. Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 LTM LTM LTM LTM Full Year Full Year Full Year Full Year SEKm SEKm SEKm SEKm 2023 2023 2023 2023 2022 2022 2022 2022 Rolling Rolling Rolling Rolling 2022 2022 2022 2022 Net sales 2,285 1,280 79% 7,007 6,002 17% EBITA, adjusted 252 87 pos 610 445 37% EBITA %, adjusted 11.0% 6.8% 8.7% 7.4% EBITA 252 -43 pos 610 315 94% EBITA % 11.0% -3.4% 8.7% 5.3% Operating profit/loss 234 -44 pos 581 303 92% Operating profit/loss % 10.2% -3.4% 8.3% 5.1% Cash flow from operating activities /one.sups⁾ 271 79 pos 475 284 67% Return on capital employed excl. financial leasing % 9% 7% 9% 9% Average number of employees 5,659 /one.sups⁾ Cash flow metric is changed from 1 January 2023 retroactively, for more information see page 15 "Note 1 Accounting principles". Change Change Change Change % % % % Change Change Change Change % % % % 571 538 501 432 371 329 336 445 610 11.9% 11.1% 10.2% 8.8% 7.4% 6.5% 6.4% 7.4% 8.7% Q1 2021 Q2 Q3 Q4 Q1 2022 Q2 Q3 Q4 Q1 2023 EBITA % 4,785 4,842 4,921 4,913 5,039 5,060 5,254 6,002 7,007 -1.5% 1.2% 1.6% -0.2% 2.6% 0.4% 3.8% 14.2% 16.7% Q1 2021 Q2 Q3 Q4 Q1 2022 Q2 Q3 Q4 Q1 2023 Growth % Q1 Q1 Q1 Q1 2023 2023 2023 2023 2022, SEKm 1,280 Structure, % 66% Currency, % 6% Other, % 0% Organic growth, % 7% Total, % 79% 2023, SEKm 2,285 ===== SIDA 8 ===== 7 Ratos Interim Report Q1 2023 Financial outlook, Ratos Group Cash flow Q1 Cash flow for the quarter amounted to SEK -405m (-465), of which cash flow from operating activities accounted for SEK 507m (-379). Cash flow from investing activities amounted to SEK -163m (-126) and cash flow from financing activities to SEK -749m (41). The change in cash flow for the quarter was mainly attributable to operating activities, with operating profit amounting to SEK 285m (5), dividends received from associates amounting to SEK 122m (-) and changes in working capital amounting to SEK -54m (-581). Financing activities were mainly impacted by the change in external loans, which amounted to SEK -730m (435) for the quarter. Tax Q1 The tax expense for the Group amounted to SEK -33m (-41) and profit before tax to SEK 90m (-98). The effective tax rate for the quarter was thus 37% (negative), primarily because tax loss carry-forwards in certain countries were not capitalised. Financial position and leverage The Group’s cash and cash equivalents at the end of the period amounted to SEK 2,072m (2,532 at 31 December 2022) and interest-bearing net debt including financial lease liabilities totalled SEK 10,614m (10,468 at 31 December 2022). Including financial lease liabilities, the Group’s leverage at the end of the period amounted to 3.2x (3.5x at 31 December 2022). The Group’s interest-bearing net debt excluding financial lease liabilities amounted to SEK 4,826m (4,798 at 31 December 2022). Leverage excluding financial lease liabilities at the end of the period amounted to 2.2x (2.5x at 31 December 2022). The total translation effect of currency for interest-bearing liabilities amounted to approximately SEK -200m, of which approximately SEK -70m related to liabilities to credit institutions and approximately SEK -130m to financial lease liabilities. At the end of the period, the Group’s interest-bearing liabilities to credit institutions amounted to SEK 6,316m (6,869 at 31 December 2022). Ratos’s equity At 31 March 2023, Ratos’s equity (attributable to owners of the parent) amounted to SEK 11,670m (12,289 at 31 December 2022), corresponding to SEK 36 (38) per share outstanding. Parent company The parent company’s operating loss amounted to SEK -49m (-34) for the period. The parent company’s profit before tax amounted to SEK 132m (-21) and was positively impacted by dividends from Group companies of SEK 192m. Cash and cash equivalents in the parent company amounted to SEK 956m (410 at 31 December 2022). The parent company has a related party relationship with its Group companies. For more information, refer to Note 28 in the 2022 Annual Report. No new types of significant transactions were carried out with related parties during the year compared with those presented in the most recent Annual Report. Ratos share data Earnings per share amounted to SEK -0.09 (-0.66) before dilution and SEK -0.09 (-0.66) for the period. Profit for the period attributable to owners of the parent was negative and was impacted by lower earnings in Plantasjen and Aibel. The closing price for Ratos’s Class B shares on 31 March 2023 was SEK 31.62. The total return on Class B shares in the first quarter amounted to -21.7%, compared with the performance for the SIX Return Index, which was 8.7%. Number of shares and repurchased/sold shares At the beginning of the year, Ratos owned no treasury shares. No new shares were issued during the period. At 31 March 2023, the total number of shares and shares outstanding in Ratos (Class A and B shares) amounted to 325,898,988 and the number of votes to 108,763,253. Resolutions at the 2023 Annual General Meeting Information on resolutions passed at the 2023 Annual General Meeting is available at www.ratos.com. The Annual General Meeting resolved on a dividend for the 2022 financial year of SEK 0.84 (1.20) per Class A and B share. The dividend was paid through Euroclear Sweden on 4 April 2023. The Meeting resolved, in accordance with the proposal from the Board, to introduce the long-term incentive programme 2023/2027 for the CEO and other key personnel, which will include convertibles and warrants. ===== SIDA 9 ===== 8 Ratos Interim Report Q1 2023 Significant events during and after the end of the quarter HL Display, which is part of the Industry business area, acquired the Swedish company Akriform Plast AB on 15 February. The company is a producer of bulk bins and custom-made solutions for grocery retail and branded goods suppliers throughout the Nordics. On 3 April, HL Display acquired the German company Oechsle Display Systems, a manufacturer of communication and shelf management solutions, and werba print & display, a provider of print and display solutions. During the quarter, Ratos initiated the process for a compulsory buy-out of the remaining shares in Semcon. The process is expected to be completed in the second quarter of 2023. Interest-bearing net debt and leverage1) , SEKm 1) Excluding financial lease liabilities Diluted earnings per share, SEK -1,442 -2,549 -1,962 342 1,485 1,006 1,824 4,798 4,826 -0.4x -0.7x -0.5x 0.1x 0.9x 0.6x 0.9x 2.5x 2.2x Q1 2021 Q2 Q3 Q4 Q1 2022 Q2 Q3 Q4 Q1 2023 Leverage -1.40 2.11 2.17 8.10 1.68 2.26 -2.00 2018 2019 2020 2021 2022 2023 LTM ===== SIDA 10 ===== 9 Ratos Interim Report Q1 2023 Financial statements Consolidated income statement Consolidated statement of comprehensive income Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Full Year Full Year Full Year Full Year SEKm SEKm SEKm SEKm 2023 2023 2023 2023 2022 2022 2022 2022 2022 2022 2022 2022 Net sales 7,817 6,220 29,875 Other operating income 31 44 155 Cost of goods and services sold -4,393 -3,822 -18,186 Employee benefit costs -2,102 -1,492 -6,494 Depreciation/amortisation and impairment of property, plant and equipment and intangible assets and right-of-use assets -376 -329 -1,340 Other external costs -762 -602 -2,529 Capital gain/loss from Group companies -0 -0 Share of profit/loss from investments recognised according to the equity method 69 88 255 Revaluation and capital gain/loss listed shares -100 -118 Operating profit Operating profit Operating profit Operating profit 285 285 285 285 5 5 55 1,618 1,618 1,618 1,618 Net financial items/one.sups⁾ -195 -103 -440 Profit/loss before tax Profit/loss before tax Profit/loss before tax Profit/loss before tax 90 90 90 90 -98 -98 -98 -98 1,178 1,178 1,178 1,178 Income tax -33 -41 -299 Profit/loss for the period Profit/loss for the period Profit/loss for the period Profit/loss for the period 57 57 57 57 -139 -139 -139 -139 879 879 879 879 Profit/loss for the period attributable to: Owners of the parent -28 -215 548 Non-controlling interests 85 76 331 Earnings per share, SEK - basic earnings per share -0.09 -0.66 1.69 - diluted earnings per share -0.09 -0.66 1.68 /one.sups⁾ See page 20 for a specification of the finance net Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Full Year Full Year Full Year Full Year SEKm SEKm SEKm SEKm 2023 2023 2023 2023 2022 2022 2022 2022 2022 2022 2022 2022 Profit/loss for the period Profit/loss for the period Profit/loss for the period Profit/loss for the period 57 57 57 57 -139 -139 -139 -139 879 879 879 879 Items that will not be reclassified to profit or loss: Remeasurement of defined benefit pension obligations, net 46 Tax attributable to items that will not be reclassified to profit or loss -4 42 42 42 42 Items that may be reclassified subsequently to profit or loss: Translation differences for the period -342 236 392 Change in hedging reserve for the period 5 -10 -9 Tax attributable to items that may be reclassified subsequently to profit or loss -1 2 1 -339 -339 -339 -339 228 228 228 228 384 384 384 384 -339 228 384 Other comprehensive income for the period Other comprehensive income for the period Other comprehensive income for the period Other comprehensive income for the period -339 -339 -339 -339 228 228 228 228 426 426 426 426 -339 228 426 Total comprehensive income for the period Total comprehensive income for the period Total comprehensive income for the period Total comprehensive income for the period -282 -282 -282 -282 89 89 89 89 1,305 1,305 1,305 1,305 -282 89 1,305 Total comprehensive income for the period attributable to: Owners of the parent -280 -24 913 Non-controlling interest -2 113 392 ===== SIDA 11 ===== 10 Ratos Interim Report Q1 2023 Summary consolidated statement of financial position SEKm SEKm SEKm SEKm 2023-03-31 2023-03-31 2023-03-31 2023-03-31 2022-03-31 2022-03-31 2022-03-31 2022-03-31 2022-12-31 2022-12-31 2022-12-31 2022-12-31 ASSETS Non-current assets Non-current assets Non-current assets Non-current assets Goodwill 14,580 10,353 14,811 Other intangible non-current assets 2,027 1,424 2,096 Property, plant and equipment 1,726 1,525 1,725 Right-of-use assets 5,228 5,199 5,100 Financial assets 1,410 2,203 1,675 Deferred tax assets 376 318 357 Total non-current assets Total non-current assets Total non-current assets Total non-current assets 25,348 25,348 25,348 25,348 21,022 21,022 21,022 21,022 25,764 25,764 25,764 25,764 Current assets Current assets Current assets Current assets Inventories 2,661 2,531 2,477 Accounts receivable 3,640 3,095 3,699 Current receivables 2,691 1,115 2,703 Cash and cash equivalents 2,072 1,836 2,532 Total current assets Total current assets Total current assets Total current assets 11,063 11,063 11,063 11,063 8,577 8,577 8,577 8,577 11,411 11,411 11,411 11,411 Total assets Total assets Total assets Total assets 36,411 36,411 36,411 36,411 29,599 29,599 29,599 29,599 37,175 37,175 37,175 37,175 EQUITY AND LIABILITIES Equity including non-controlling interests Equity including non-controlling interests Equity including non-controlling interests Equity including non-controlling interests 13,099 13,099 13,099 13,099 12,858 12,858 12,858 12,858 13,788 13,788 13,788 13,788 Non-current liabilities Non-current liabilities Non-current liabilities Non-current liabilities Interest-bearing liabilities 11,358 7,458 11,318 Non-interest bearing liabilities 1,669 910 1,668 Pension provisions 59 75 60 Other provisions 45 38 44 Deferred tax liabilities 741 442 742 Total non-current liabilities Total non-current liabilities Total non-current liabilities Total non-current liabilities 13,871 13,871 13,871 13,871 8,924 8,924 8,924 8,924 13,832 13,832 13,832 13,832 Current liabilities Current liabilities Current liabilities Current liabilities Interest-bearing liabilities 1,374 1,562 1,723 Non-interest bearing liabilities 7,586 5,711 7,393 Provisions 480 544 439 Total current liabilities Total current liabilities Total current liabilities Total current liabilities 9,440 9,440 9,440 9,440 7,817 7,817 7,817 7,817 9,555 9,555 9,555 9,555 Total liabilities Total liabilities Total liabilities Total liabilities 23,312 23,312 23,312 23,312 16,741 16,741 16,741 16,741 23,387 23,387 23,387 23,387 Total equity and liabilities Total equity and liabilities Total equity and liabilities Total equity and liabilities 36,411 36,411 36,411 36,411 29,599 29,599 29,599 29,599 37,175 37,175 37,175 37,175 ===== SIDA 12 ===== 11 Ratos Interim Report Q1 2023 Summary statement of changes in consolidated equity SEKm SEKm SEKm SEKm Owners of Owners of Owners of Owners of the parent the parent the parent the parent Non- Non- Non- Non- controlling controlling controlling controlling interest interest interest interest Total Total Total Total equity equity equity equity Owners of Owners of Owners of Owners of the parent the parent the parent the parent Non- Non- Non- Non- controlling controlling controlling controlling interest interest interest interest Total Total Total Total equity equity equity equity Owners Owners Owners Owners of the of the of the of the parent parent parent parent Non- Non- Non- Non- controlling controlling controlling controlling interest interest interest interest Total Total Total Total equity equity equity equity Opening equity Opening equity Opening equity Opening equity 12,289 12,289 12,289 12,289 1,499 1,499 1,499 1,499 13,788 13,788 13,788 13,788 11,940 11,940 11,940 11,940 1,387 1,387 1,387 1,387 13,326 13,326 13,326 13,326 11,940 11,940 11,940 11,940 1,387 1,387 1,387 1,387 13,326 13,326 13,326 13,326 Total comprehensive income for the period -280 -2 -282 -24 113 89 913 392 1,305 Dividends -274 -61 -335 -390 -147 -537 -390 -262 -651 Non-controlling interests’ share of capital contribution and new issue 0 0 -0 -0 Transfer of treasury shares 2 2 2 2 Conversion of convertible loan to shares 33 33 The value of the conversion option of the convertible debentures 7 7 Option premiums 9 9 Put options, future acquisitions from non-controlling interests -64 32 -33 -2 -21 -23 -227 -567 -794 Acquisition of shares in subsidiaries from non-controlling interests -1 -39 -40 4 -10 -6 Disposal of shares in subsidiaries to non-controlling interests -1 2 1 -1 36 35 Non-controlling interests at acquisition 0 0 522 522 Closing equity Closing equity Closing equity Closing equity 11,670 11,670 11,670 11,670 1,429 1,429 1,429 1,429 13,099 13,099 13,099 13,099 11,525 11,525 11,525 11,525 1,333 1,333 1,333 1,333 12,858 12,858 12,858 12,858 12,289 12,289 12,289 12,289 1,499 1,499 1,499 1,499 13,788 13,788 13,788 13,788 2023-03-31 2023-03-31 2023-03-31 2023-03-31 2022-03-31 2022-03-31 2022-03-31 2022-03-31 2022-12-31 2022-12-31 2022-12-31 2022-12-31 ===== SIDA 13 ===== 12 Ratos Interim Report Q1 2023 Summary consolidated statement of cash flows Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Full Year Full Year Full Year Full Year SEKm SEKm SEKm SEKm 2023 2023 2023 2023 2022 2022 2022 2022 2022 2022 2022 2022 Operating activities Operating activities Operating activities Operating activities Operating profit 285 5 1,618 Adjustment for non-cash items 423 457 1,227 708 462 2,845 Received dividends from associated companies 122 Interest and financial items, net -138 -153 -476 Income tax paid -132 -107 -301 Cash flow from operating activities before change in working capital Cash flow from operating activities before change in working capital Cash flow from operating activities before change in working capital Cash flow from operating activities before change in working capital 560 560 560 560 202 202 202 202 2,068 2,068 2,068 2,068 Cash flow from change in working capital Increase (-)/Decrease (+) in inventories -330 -641 -487 Increase (-)/Decrease (+) in operating receivables 90 -179 -1,062 Increase (+)/Decrease (-) in operating liabilities 187 238 913 Cash flow from operating activities Cash flow from operating activities Cash flow from operating activities Cash flow from operating activities 507 507 507 507 -379 -379 -379 -379 1,431 1,431 1,431 1,431 Investing activities Investing activities Investing activities Investing activities Acquisition, group companies -48 -53 -4,542 Disposal, group companies 5 5 Investments and disposal, intangible assets/property, plant and equipment -114 -78 -405 Investments and disposal, financial assets -0 685 Cash flow from investing activities Cash flow from investing activities Cash flow from investing activities Cash flow from investing activities -163 -163 -163 -163 -126 -126 -126 -126 -4,257 -4,257 -4,257 -4,257 Financing activities Financing activities Financing activities Financing activities Non-controlling interests' share of issue/capital contribution 0 0 Transfer of treasury shares 2 2 Option premiums paid 17 Repurchase/final settlements options -0 -11 Acquisition and disposal of shares in subsidiaries from non-controlling interests -4 1 -0 Dividends paid -390 -390 Dividends paid, non-controlling interests -15 -8 -248 Borrowings 777 852 9,957 Amortisation of loans -1,271 -192 -5,519 Amortisation of financial lease liabilitities -236 -225 -816 Cash flow from financing activities Cash flow from financing activities Cash flow from financing activities Cash flow from financing activities -749 -749 -749 -749 41 41 41 41 2,991 2,991 2,991 2,991 Cash flow for the period Cash flow for the period Cash flow for the period Cash flow for the period -405 -405 -405 -405 -465 -465 -465 -465 165 165 165 165 Cash and cash equivalents at the beginning of the period 2,532 2,230 2,230 Exchange differences in cash and cash equivalents -56 72 138 Cash and cash equivalents at the end of the period 2,072 1,836 2,532 ===== SIDA 14 ===== 13 Ratos Interim Report Q1 2023 Summary parent company income statement Parent company statement of comprehensive income Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Full Year Full Year Full Year Full Year SEKm SEKm SEKm SEKm 2023 2023 2023 2023 2022 2022 2022 2022 2022 2022 2022 2022 Other operating income 0 7 15 Administrative expenses -49 -41 -149 Depreciation of property, plant and equipment -0 -0 -1 Operating profit/loss Operating profit/loss Operating profit/loss Operating profit/loss -49 -49 -49 -49 -34 -34 -34 -34 -135 -135 -135 -135 Gain from sale of participating interests in group companies 110 Dividends from group companies 192 102 Net financial items/one.sups⁾ -12 14 94 Profit/loss after financial items Profit/loss after financial items Profit/loss after financial items Profit/loss after financial items 132 132 132 132 -21 -21 -21 -21 172 172 172 172 Group contribution, recieved 92 Profit/loss before tax Profit/loss before tax Profit/loss before tax Profit/loss before tax 132 132 132 132 -21 -21 -21 -21 264 264 264 264 Income tax 14 3 56 Profit/loss for the period Profit/loss for the period Profit/loss for the period Profit/loss for the period 145 145 145 145 -18 -18 -18 -18 320 320 320 320 /one.sups⁾ See page 20 for a specification of the finance net Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Full Year Full Year Full Year Full Year SEKm SEKm SEKm SEKm 2023 2023 2023 2023 2022 2022 2022 2022 2022 2022 2022 2022 Profit/loss for the period Profit/loss for the period Profit/loss for the period Profit/loss for the period 145 145 145 145 -18 -18 -18 -18 320 320 320 320 Other comprehensive income for the period Other comprehensive income for the period Other comprehensive income for the period Other comprehensive income for the period 00 00 0 0 00 0 0 00 Total comprehensive income for the period Total comprehensive income for the period Total comprehensive income for the period Total comprehensive income for the period 145 145 145 145 -18 -18 -18 -18 320 320 320 320 ===== SIDA 15 ===== 14 Ratos Interim Report Q1 2023 Summary parent company balance sheet Summary parent company statement of changes in equity SEKm SEKm SEKm SEKm 2023-03-31 2023-03-31 2023-03-31 2023-03-31 2022-03-31 2022-03-31 2022-03-31 2022-03-31 2022-12-31 2022-12-31 2022-12-31 2022-12-31 ASSETS Non-current assets Non-current assets Non-current assets Non-current assets Property, plant and equipment 4 3 3 Financial assets 10,754 7,984 10,150 Receivables from group companies 4,875 4,986 6,180 Deferred tax assets 144 77 130 Total non-current assets Total non-current assets Total non-current assets Total non-current assets 15,776 15,776 15,776 15,776 13,050 13,050 13,050 13,050 16,464 16,464 16,464 16,464 Current assets Current assets Current assets Current assets Current receivables 47 59 48 Receivables from group companies 2,728 1,238 1,741 Cash and cash equivalents 956 474 410 Total current assets Total current assets Total current assets Total current assets 3,730 3,730 3,730 3,730 1,771 1,771 1,771 1,771 2,199 2,199 2,199 2,199 Total assets Total assets Total assets Total assets 19,507 19,507 19,507 19,507 14,821 14,821 14,821 14,821 18,663 18,663 18,663 18,663 EQUITY AND LIABILITIES Equity Equity Equity Equity 9,846 9,846 9,846 9,846 9,588 9,588 9,588 9,588 9,975 9,975 9,975 9,975 Non-current liablities Non-current liablities Non-current liablities Non-current liablities Interest-bearing liabilities, group companies 81 948 206 Interest-bearing liabilities 6,178 2,116 6,237 Convertible debentures 79 76 79 Deferred tax liabilities 3 2 3 Total non-current liabilities Total non-current liabilities Total non-current liabilities Total non-current liabilities 6,341 6,341 6,341 6,341 3,142 3,142 3,142 3,142 6,524 6,524 6,524 6,524 Current provisions Current provisions Current provisions Current provisions 95 95 95 95 70 70 70 70 86 86 86 86 Current liabilities Current liabilities Current liabilities Current liabilities Interest-bearing liabilities, group companies 2,781 1,318 1,464 Interest-bearing liabilities 100 652 590 Non-interest bearing liabilities, group companies 0 Non-interest bearing liabilities 344 50 25 Total current liabilities Total current liabilities Total current liabilities Total current liabilities 3,225 3,225 3,225 3,225 2,020 2,020 2,020 2,020 2,079 2,079 2,079 2,079 Total equity and liabilities Total equity and liabilities Total equity and liabilities Total equity and liabilities 19,507 19,507 19,507 19,507 14,821 14,821 14,821 14,821 18,663 18,663 18,663 18,663 SEKm SEKm SEKm SEKm 2023-03-31 2023-03-31 2023-03-31 2023-03-31 2022-03-31 2022-03-31 2022-03-31 2022-03-31 2022-12-31 2022-12-31 2022-12-31 2022-12-31 Opening equity Opening equity Opening equity Opening equity 9,975 9,975 9,975 9,975 9,994 9,994 9,994 9,994 9,994 9,994 9,994 9,994 Comprehensive income for the period 145 -18 320 Dividends -274 -390 -390 Transfer of treasury shares 2 2 Conversion of convertible loan to shares 33 The value of the conversion option of the convertible debentures 8 Deferred tax, conversion option -2 Option premiums 9 Closing equity Closing equity Closing equity Closing equity 9,846 9,846 9,846 9,846 9,588 9,588 9,588 9,588 9,975 9,975 9,975 9,975 ===== SIDA 16 ===== 15 Ratos Interim Report Q1 2023 Note 1 Accounting principles Ratos’s consolidated financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) and associated interpretations (IFRIC), as endorsed by the EU. This interim report was prepared in accordance with IAS 34, Interim Financial Reporting, and applicable provisions in the Swedish Annual Accounts Act. The parent company also applies RFR 2 Accounting for Legal Entities. As of 1 January 2023, Ratos has changed the presentation of its cash flow statement to harmonise its reporting against comparable companies. The difference entails that, as of 1 January 2023, interest rates and other incoming and outgoing financial payments are classified as operating activities rather than investing and financing activities, as was previously the case. The operation key figure “Cash flow from operations” has been replaced with “Cash flow from operating activities” in the tables for the Group and the business areas. All comparative figures have been changed in accordance with this amendment, and in all other respects, the reporting and measurement principles are unchanged compared with those applied in Ratos’s 2022 Annual Report. The new and revised IFRS standards which came into force in 2023 have not had any material effect on the Ratos Group’s financial statements. Amounts are presented in SEK million (SEKm) unless otherwise stated. Rounding may apply in tables and calculations, which means that the stipulated total amounts are not always an exact amount of the rounded amounts. Note 2 Risks and uncertainties Ratos is a business group that makes it possible for independent mid-sized companies to develop more rapidly by being a part of something larger. A focus on people, leadership, culture and values is a key component of Ratos. These operations include inherent risks attributable to both Ratos and the companies. These mainly comprise market, operational and transaction risks and can include both general risks, such as external factors and macroeconomic development, as well as company and sector-specific risks. The financial risks consist of liquidity risk, interest rate risk, credit risk and currency risk. There are several financial risks to which most of the companies are exposed, primarily related to loans, trade receivables, trade payables and derivative instruments. The risks to which the companies are exposed are managed by each individual company. Ratos is exposed to financial risks, mainly in terms of value changes in the companies and liquidity risk. Ratos’s future earnings development is dependent to a large extent on the success of the underlying companies, which in turn is dependent on, among other things, how successful each company’s management group and board of directors are at developing the company and implementing value-adding initiatives. A more detailed description of the material risks and uncertainties to which the Group and the parent company are exposed is provided in the Directors’ Report and in Notes 25 and 31 in the 2022 Annual Report. Note 3 Financial instruments Ratos applies fair value measurements to a limited extent and mainly for derivatives, synthetic options, contingent considerations and put options. These items are measured according to levels two and three, respectively, in the fair value hierarchy. In the statement of financial position at 31 March 2023, the net value of derivatives, level 2, amounted to SEK 7m (1 at 31 December 2022), of which SEK 14m (7 at 31 December 2022) was recognised as an asset and SEK 7m (6 at 31 December 2022) as a liability. In the statement of financial position at 31 March 2023, the total value of financial instruments measured at fair value in accordance with level 3 was SEK 2,105m (2,058 at 31 December 2022). The change is presented in the table below. Change, level 3 Change, level 3 Change, level 3 Change, level 3 SEKm SEKm SEKm SEKm 2023-03-31 2023-03-31 2023-03-31 2023-03-31 2022-12-31 2022-12-31 2022-12-31 2022-12-31 2023-03-31 2023-03-31 2023-03-31 2023-03-31 2022-12-31 2022-12-31 2022-12-31 2022-12-31 2023-03-31 2023-03-31 2023-03-31 2023-03-31 2022-12-31 2022-12-31 2022-12-31 2022-12-31 Opening balance 153 144 1,669 830 236 194 Recognised in comprehensive income 24 18 -34 44 0 12 Recognised against equity 33 221 Newly issued/subsequent expenditure 2 566 47 49 Acquisitions, Group companies 8 26 Settlements 0 -11 -23 -46 Closing balance Closing balance Closing balance Closing balance 176 176 176 176 153 153 153 153 1,668 1,668 1,668 1,668 1,669 1,669 1,669 1,669 260 260 260 260 236 236 236 236 Synthetic options Synthetic options Synthetic options Synthetic options Call and put options Call and put options Call and put options Call and put options Contingent considerations Contingent considerations Contingent considerations Contingent considerations ===== SIDA 17 ===== 16 Ratos Interim Report Q1 2023 Note 4 Acquired and divested companies Acquisitions within business areas Construction & Services In 2022, NVBS acquired the companies Ratatek and TKBM Entreprenad AB. The preliminary acquisition analyses during the first quarter of 2023 were updated after the final acquisition balances were determined, which entailed an adjustment to the purchase price of SEK 31m. In 2022, SSEA Group acquired the company Kiruna Målbygg AB. The preliminary acquisition analysis during the first quarter of 2023 was updated after the final acquisition balance was determined, which entailed an adjustment to the purchase price of SEK 1m. Consumer On 2022 March, Plantasjen acquired Flyinge Plantshop AB. The preliminary acquisition analysis during the first quarter of 2023 was updated after the final acquisition balance was determined, which entailed an adjustment to the purchase price of SEK 3m. Industry HL Display, which is part of the Industry business area, acquired the Swedish company Akriform Plast AB on 15 February. The company is a producer of bulk bins and custom-made solutions for grocery retail and branded goods suppliers throughout the Nordics. The company had sales of SEK 85m for the last 12 months as per 31 March 2023. In the first quarter of 2023, TFS conducted a minor acquisition of assets and liabilities in its subsidiary in Israel. The total purchase price amounted to EUR 0.2m. The preliminary acquisition analyses for the add-on acquisitions carried out during the year and updated items pertaining to established acquisition analyses for previous acquisitions are presented below. Acquisition of Semcon In 2022, Ratos acquired Semcon AB (publ) through a public offer. The preliminary acquisition analysis during the first quarter of 2023 was updated after the final acquisition balance was determined. No material changes were identified. During the quarter, Ratos initiated the process for a compulsory buy-out of the remaining shares in Semcon. The process is expected to be completed in the second quarter of 2023. Final acquisition analysis Semcon Final acquisition analysis Semcon Final acquisition analysis Semcon Final acquisition analysis Semcon SEKm SEKm SEKm SEKm Intangible assets 3 Property, plant and equipment 10 Right-of-use assets 10 Financial assets 0 Trade receivables 14 Current assets 10 Cash and cash equivalents 3 Non-current liabilities -2 Current liabilities -23 Net identifiable assets and liabilities Net identifiable assets and liabilities Net identifiable assets and liabilities Net identifiable assets and liabilities 24 24 24 24 Goodwill 39 Purchase price Purchase price Purchase price Purchase price 63 63 63 63 of which, paid in cash 28 of which, contingent consideration 35 SEKm SEKm SEKm SEKm Intangible assets 427 Property, plant and equipment 23 Right-of-use assets 66 Deferred tax asset 3 Trade receivables 306 Current assets 249 Cash and cash equivalents 203 Non-controlling interest -36 Deferred tax liability -157 Non-current liabilities and provisions -36 Current liabilities and provisions -440 Net identifiable assets and liabilities Net identifiable assets and liabilities Net identifiable assets and liabilities Net identifiable assets and liabilities 609 609 609 609 Goodwill 2,125 Purchase price Purchase price Purchase price Purchase price 2,734 2,734 2,734 2,734 of which, paid in cash 2,734 ===== SIDA 18 ===== 17 Ratos Interim Report Q1 2023 Key figures For definitions, see page 21 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Full Year Full Year Full Year Full Year SEKm SEKm SEKm SEKm 2023 2023 2023 2023 2022 2022 2022 2022 2022 2022 2022 2022 Leverage excl. financial leasing 2.2x 0.9x 2.5x Leverage 3.2x 2.7x 3.5x Equity ratio, % 36.0 43.4 37.1 Return on equity, % 6.1 6.3 4.6 Return on capital employed excl. financial leasing, % 10.0 11.3 10.2 Return on capital employed, % 8.6 9.2 8.6 Key figures per share Key figures per share Key figures per share Key figures per share/one.sups/one.sups /one.sups/one.sups⁾⁾ ⁾⁾ Total return, % -21.7 -13.6 -26.6 Dividend yield, % 2.0 Market price, SEK 31.62 48.84 41.49 Dividend, SEK 0.84 Equity attributable to owners of the parent, SEK/two.sups⁾ 35.81 35.49 37.71 Basic earnings per share, SEK -0.09 -0.66 1.69 Diluted earnings per share, SEK -0.09 -0.66 1.68 Average number of ordinary shares outstanding: – before dilution 325,898,988 324,685,348 325,223,889 – after dilution 326,024,625 325,048,043 326,442,359 Total number of registered shares 325,898,988 324,738,820 325,898,988 Number of shares outstanding/three.sups⁾ 325,898,988 324,738,820 325,898,988 – of which, Class A shares 84,637,060 84,637,060 84,637,060 – of which, Class B shares 241,261,928 240,101,760 241,261,928 /one.sups⁾ Relates to Class B shares unless specified otherwise /two.sups⁾ Equity attributable to owners of the parent divided by the number of outstanding ordinary shares at the end of the period /three.sups ⁾ After redemption and transfer of Ratos own shares ===== SIDA 19 ===== 18 Ratos Interim Report Q1 2023 Reconciliations between alternative performance measures (APM) and IFRS Ratos applies financial measures that are not defined in IFRS but are so-called alternative performance measures (APMs). The alternative performance measures presented are considered to be valuable supplementary information for analysts and other stakeholders for the evaluation and assessment of the Group’s financial performance and position. Ratos’s definitions of these performance measures may differ from other companies and, accordingly, these are not always comparable with similar performance measures used in other companies. The following reconciliations and accounts pertain to sub- components included in the material alternative performance measures used in this report. Reconciliation is made against the most reconcilable item, subtotal or total provided in the financial statements for the corresponding period. Definitions are available at www.ratos.com and on page 21 of this report. Organic growth EBITDA, EBITA and operating profit Interest-bearing net debt Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Full Year Full Year Full Year Full Year SEKm SEKm SEKm SEKm 2023 2023 2023 2023 2022 2022 2022 2022 2022 2022 2022 2022 Growth Net Sales, % Growth Net Sales, % Growth Net Sales, % Growth Net Sales, % 26% 26% 26% 26% 40% 40% 40% 40% 32% 32% 32% 32% Net sales Net sales Net sales Net sales 7,817 7,817 7,817 7,817 6,220 6,220 6,220 6,220 29,875 29,875 29,875 29,875 Acquired net sales 1,083 1,102 4,629 Effects from change in currency 6 209 914 Other -3 -39 Net sales, adjusted Net sales, adjusted Net sales, adjusted Net sales, adjusted 6,730 6,730 6,730 6,730 4,909 4,909 4,909 4,909 24,371 24,371 24,371 24,371 Divested net sales in the comparison period 1 7 Net sales, adjusted in the comparison period Net sales, adjusted in the comparison period Net sales, adjusted in the comparison period Net sales, adjusted in the comparison period 6,220 6,220 6,220 6,220 4,431 4,431 4,431 4,431 22,544 22,544 22,544 22,544 Elimination of internal net sales 0 -7 -15 Organic growth Organic growth Organic growth Organic growth 511 511 511 511 485 485 485 485 1,841 1,841 1,841 1,841 Organic growth, % Organic growth, % Organic growth, % Organic growth, % 8% 8% 8% 8% 11% 11% 11% 11% 8% 8% 8% 8% Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Full Year Full Year Full Year Full Year SEKm SEKm SEKm SEKm 2023 2023 2023 2023 2022 2022 2022 2022 2022 2022 2022 2022 EBITDA EBITDA EBITDA EBITDA 661 661 661 661 334 334 334 334 2,958 2,958 2,958 2,958 Depreciations and impairment -337 -312 -1,240 EBITA EBITA EBITA EBITA 324 324 324 324 22 22 22 22 1,718 1,718 1,718 1,718 Revaluation and capital gain/loss listed shares -100 -118 Restructuring costs -130 -130 Adjusted EBITA Adjusted EBITA Adjusted EBITA Adjusted EBITA 324 324 324 324 253 253 253 253 1,966 1,966 1,966 1,966 Amortisation and impairment of intangible assets in connection with company acquisitions -39 -17 -100 Operating profit Operating profit Operating profit Operating profit 285 285 285 285 5 5 55 1,618 1,618 1,618 1,618 SEKm SEKm SEKm SEKm 2023-03-31 2023-03-31 2023-03-31 2023-03-31 2022-03-31 2022-03-31 2022-03-31 2022-03-31 2022-12-31 2022-12-31 2022-12-31 2022-12-31 Interest-bearing liabilities, other 6,943 3,325 7,371 Provisions for pensions 59 75 60 Interest-bearing assets -106 -78 -101 Cash and cash equivalents -2,072 -1,836 -2,532 Interest-bearing net debt excl. financial leasing Interest-bearing net debt excl. financial leasing Interest-bearing net debt excl. financial leasing Interest-bearing net debt excl. financial leasing 4,826 4,826 4,826 4,826 1,485 1,485 1,485 1,485 4,798 4,798 4,798 4,798 Financial leasing liabilities 5,789 5,696 5,670 Interest-bearing net debt incl. financial leasing Interest-bearing net debt incl. financial leasing Interest-bearing net debt incl. financial leasing Interest-bearing net debt incl. financial leasing 10,614 10,614 10,614 10,614 7,181 7,181 7,181 7,181 10,468 10,468 10,468 10,468 ===== SIDA 20 ===== 19 Ratos Interim Report Q1 2023 Segments by quarter, summary Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q2 Q2 Q2 Q2 Q3 Q3 Q3 Q3 Q4 Q4 Q4 Q4 Full Year Full Year Full Year Full Year Net sales, SEKm Net sales, SEKm Net sales, SEKm Net sales, SEKm 2023 2023 2023 2023 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 Construction & Services 4,515 3,668 4,098 4,059 5,077 16,901 Consumer 1,017 1,279 3,018 1,540 1,148 6,986 - whereof Plantasjen 542 661 2,118 887 740 4,407 Industry 2,285 1,280 1,310 1,441 1,971 6,002 Elimination of internal net sales 0 -7 -6 -2 0 -15 Ratos group Ratos group Ratos group Ratos group 7,817 7,817 7,817 7,817 6,220 6,220 6,220 6,220 8,420 8,420 8,420 8,420 7,039 7,039 7,039 7,039 8,195 8,195 8,195 8,195 29,875 29,875 29,875 29,875 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q2 Q2 Q2 Q2 Q3 Q3 Q3 Q3 Q4 Q4 Q4 Q4 Full Year Full Year Full Year Full Year EBITDA, SEKm EBITDA, SEKm EBITDA, SEKm EBITDA, SEKm 2023 2023 2023 2023 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 Construction & Services 383 374 369 410 493 1,646 Consumer -15 62 799 162 -42 982 Industry 341 178 142 195 239 754 Revaluation and capital gain/loss listed shares -100 -18 -118 Items affecting comparability -130 -130 Group costs -49 -49 -53 -28 -45 -175 Ratos group Ratos group Ratos group Ratos group 661 661 661 661 334 334 334 334 1,239 1,239 1,239 1,239 739 739 739 739 646 646 646 646 2,958 2,958 2,958 2,958 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q2 Q2 Q2 Q2 Q3 Q3 Q3 Q3 Q4 Q4 Q4 Q4 Full Year Full Year Full Year Full Year EBITA, adjusted, SEKm EBITA, adjusted, SEKm EBITA, adjusted, SEKm EBITA, adjusted, SEKm 2023 2023 2023 2023 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 Construction & Services 284 292 278 313 394 1,276 Consumer -162 -75 664 25 -189 424 - whereof Plantasjen -215 -103 565 6 -142 325 Industry 252 87 76 123 160 445 Group costs -50 -50 -54 -29 -46 -179 Ratos group Ratos group Ratos group Ratos group 324 324 324 324 253 253 253 253 963 963 963 963 432 432 432 432 318 318 318 318 1,966 1,966 1,966 1,966 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q2 Q2 Q2 Q2 Q3 Q3 Q3 Q3 Q4 Q4 Q4 Q4 Full Year Full Year Full Year Full Year Operating profit/loss, SEKm Operating profit/loss, SEKm Operating profit/loss, SEKm Operating profit/loss, SEKm 2023 2023 2023 2023 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 Construction & Services 264 276 259 292 373 1,199 Consumer -163 -77 662 24 -191 420 Industry 234 87 76 118 152 433 Revaluation and capital gain/loss listed shares -100 -18 -118 Items affecting comparability -130 -130 Group costs -50 -50 -54 -29 -53 -186 Ratos group Ratos group Ratos group Ratos group 285 285 285 285 55 55 925 925 925 925 406 406 406 406 282 282 282 282 1,618 1,618 1,618 1,618 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q2 Q2 Q2 Q2 Q3 Q3 Q3 Q3 Q4 Q4 Q4 Q4 Full Year Full Year Full Year Full Year Profit/loss before tax, SEKm Profit/loss before tax, SEKm Profit/loss before tax, SEKm Profit/loss before tax, SEKm 2023 2023 2023 2023 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 Construction & Services 224 239 234 257 340 1,070 Consumer -261 -134 592 -32 -294 132 Industry 191 64 58 94 4 221 Revaluation and capital gain/loss listed shares -100 -18 -118 Items affecting comparability -130 -130 Group costs -64 -37 -42 24 59 4 Ratos group Ratos group Ratos group Ratos group 90 90 90 90 -98 -98 -98 -98 825 825 825 825 343 343 343 343 109 109 109 109 1,178 1,178 1,178 1,178 ===== SIDA 21 ===== 20 Ratos Interim Report Q1 2023 Specification of net financial items Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Full Year Full Year Full Year Full Year Ratos Group, SEKm Ratos Group, SEKm Ratos Group, SEKm Ratos Group, SEKm 2023 2023 2023 2023 2022 2022 2022 2022 2022 2022 2022 2022 Interest income 18 1 pos 15 Interest expense -81 -17 neg -124 Interest expense financial leasing -71 -66 -7% -266 Net interest Net interest Net interest Net interest -134 -134 -134 -134 -82 -82 -82 -82 -64% -64% -64% -64% -375 -375 -375 -375 Net exchange rate effects -27 0 neg -9 Other financial items -34 -22 -53% -56 Net financial items Net financial items Net financial items Net financial items -195 -195 -195 -195 -103 -103 -103 -103 -88% -88% -88% -88% -440 -440 -440 -440 Change Change Change Change % % % % Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Full Year Full Year Full Year Full Year Parent company, SEKm Parent company, SEKm Parent company, SEKm Parent company, SEKm 2023 2023 2023 2023 2022 2022 2022 2022 2022 2022 2022 2022 Net interest 26 32 -19% 149 Net exchange rate effects -16 -10 -60% -19 Other financial items -22 -8 neg -36 Net financial items Net financial items Net financial items Net financial items -12 -12 -12 -12 14 14 14 14 neg neg neg neg 94 94 94 94 Change Change Change Change % % % % ===== SIDA 22 ===== 21 Ratos Interim Report Q1 2023 Definitions Dividend yield Proposed dividend on ordinary shares expressed as a percentage of the Class B share’s closing price at the period’s last trading day. Total return Price development of Class B shares including reinvested dividends (this year’s paid dividend) on ordinary shares. Return on equity Profit for the period attributable to owners of the parent for the last 12 months divided by average equity attributable to owners of the parent during the five most recent quarters. Return on capital employed Adjusted EBITA for the last 12 months as a percentage of average capital employed during the five most recent quarters. EBITDA EBITA with depreciation, amortisation and impairment reversed (Earnings Before Interest, Tax, Depreciation and Amortisation). EBITDA margin EBITDA expressed as a percentage of net sales. EBITA Operating profit before impairment of goodwill as well as amortisation and impairment of other intangible assets that arose in conjunction with company acquisitions and similar transactions (Earnings Before Interest, Tax and Amortisation). EBITA margin EBITA expressed as a percentage of net sales. Equity per share Equity attributable to owners of the parent divided by the number of outstanding ordinary shares at the end of the period. Adjusted EBITA EBITA adjusted for capital gains and the revaluation of listed shares and non-recurring items affecting comparability at the business area level. Adjusted EBITA margin Adjusted EBITA expressed as a percentage of net sales. Cash flow from operating activities Includes cash flow from operating profit, dividends received from associates, interest and financial items, income tax paid, and changes in working capital. Average number of employees Total number of hours worked during the most recent full year restated as full-time positions. Also includes average number of employees in key associates. Organic growth Net sales growth in comparable units. The effects of acquisitions, divestments and exchange rate changes are excluded. Basic earnings per share Profit for the period attributable to owners of the parent company divided by the average number of outstanding ordinary shares. Diluted earnings per share When calculating diluted earnings per share, earnings and the average number of shares are adjusted to take into account the effects of potential ordinary shares, which, for the reported periods, pertain to convertible debt instruments and warrants issued to employees. Interest-bearing net debt Interest-bearing liabilities (including financial lease liabilities) and pension provisions minus interest-bearing assets and cash and cash equivalents. Capital employed Equity, non-controlling interests and interest-bearing liabilities. Leverage Interest-bearing net debt in relation to EBITDA for the last 12 months. Equity ratio Reported equity expressed as a percentage of total assets. Non-controlling interests are included in equity. Last 12-month period The most recent 12 months. ===== SIDA 23 ===== Investor presentation 27 April 9:00 am Webcast: https://youtube.com/live/LKaop4fJ4Uk Financial calendar 2023 2023 2023 2023 Interim report Q2 2023 19 July Interim report Q3 2023 23 October Stockholm, 27 April 2023 Ratos AB (publ) Jonas Wiström President and CEO For further information, please contact: Jonas Wiström, President and CEO, +46 8 700 17 00 Jonas Ågrup, CFO and IR, +46 8 700 17 00 Josefine Uppling, Vice President Communication & Sustainability, +46 8,700 17 00 This report has not been reviewed by Ratos’s auditors. 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 persons set out above, at 7:00 a.m. CEST on April 27, 2023. Ratos AB (publ) Sturegatan 10, Mailbox 511 SE-114 11 Stockholm Tel: +46 8 700 17 00 www.ratos.com Reg. no. 556008-3585 Ratos is a business group consisting of 16 companies divided into three business areas: Construction & Services, Consumer and Industry. 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. ===== SIDA 24 =====