===== SIDA 1 ===== Interim report Q3 2023 ===== SIDA 2 ===== 1 Ratos Interim report Q3 2023 Interim report January–September 2023 Q3 2023  Adjusted 1) EBITA amounted to SEK 517m (432)  Operating profit amounted to SEK 481m (406)  Profit for the period amounted to SEK 287m (283) and was impacted by net financial items of SEK -172m (-63)  Diluted earnings per share amounted to SEK 0.57 (0.61)  Cash flow from operating activities amounted to SEK 862m (736) January–September 2023  Adjusted 1) EBITA amounted to SEK 1,918m (1,648)  Operating profit amounted to SEK 1,804m (1,336) 2)  Profit for the period amounted to SEK 1,026m (834) and was impacted by net financial items of SEK -573m (-267)  Diluted earnings per share amounted to SEK 2.28 (1.79)  Cash flow from operating activities amounted to SEK 3,393m (1,411)  Leverage excluding finance leases was 1.3x (0.9x) Significant events during and after the end of the quarter  In October, Semcon completed the spin-off of its Product Information business area, which is now the new independent company Aleido. Both companies remain as wholly owned Ratos subsidiaries Ratos Group, SEKm Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 LTM LTM LTM LTM Full Year Full Year Full Year Full Year 2023 2023 2023 2023 2022 2022 2022 2022 2023 2023 2023 2023 2022 2022 2022 2022 Rolling Rolling Rolling Rolling 2022 2022 2022 2022 Net sales 7,971 7,039 13% 25,788 21,680 19% 33,984 29,875 14% EBITDA 896 739 21% 2,978 2,312 29% 3,624 2,958 22% EBITA, adjusted/one.sups ⁾ 517 432 20% 1,918 1,648 16% 2,237 1,966 14% EBITA %, adjusted/one.sups ⁾ 6.5% 6.1% 7.4% 7.6% 6.6% 6.6% EBITA 517 432 20% 1,918 1,400 37% 2,237 1,718 30% EBITA % 6.5% 6.1% 7.4% 6.5% 6.6% 5.8% Operating profit 481 406 18% 1,804 1,336 35% 2,086 1,618 29% Profit before tax 309 343 -10% 1,231 1,069 15% 1,339 1,178 14% Profit for the period 287 283 1% 1,026 834 23% 1,072 879 22% Basic earnings per share, SEK 0.57 0.61 -7% 2.28 1.79 27% 2.17 1.69 28% Diluted earnings per share, SEK 0.57 0.61 -7% 2.28 1.79 2 7% 2.17 1.68 29% Cash flow from operating activities/three.sups ⁾ 862 736 17% 3,393 1,411 141% 3,413 1,431 139% Leverage excl. financial leasing 1.3x 0.9x 1.3x 2.5x Return on capital employed excl. financial leasing 10.3% 10.5% 10.3% 10.1% Change Change Change Change % % % % Change Change Change Change % % % % Change Change Change Change % % % % 3) Cash flow metric is changed from January 1st 2023 retroactively, for more information see page 16 "Note 1 Accounting principles". 1) For reconciliation of EBITA, adjusted see page 19. For definition see page 22. 2) Operating profit in the year-earlier period was negatively impacted by an unrealised loss of SEK -118m related to the revaluation of shares in Dun & Bradstreet Holding Inc and restructuring costs of SEK -130m attributable to Diab. ===== SIDA 3 ===== 2 Ratos Interim report Q3 2023 CEO comments on performance in the third quarter of 2023 Strong cash flows, reduced leverage and 20% increase in EBITA EBITA amounted to SEK 517m (432) for the quarter, up 20% year on year. Excluding the acquisition of Semcon, which was completed in the fourth quarter of 2022, EBITA increased 11%. The EBITA margin was 6.5% (6.1). The Group’s sales in the period increased 13% to SEK 7,971m. Cash flow increased 17% to SEK 862m. Leverage declined to 1.3x, compared with 2.5x at year-end. I’m pleased with the third quarter, we posted good EBITA growth and strong cash flows in an increasingly challenging market. Our financial position has continued to improve during the year. Construction & Services and Industry, which will be our focus areas moving forward, both contributed to our strong performance in the quarter. Within Consumer cash flow improvements were prioritised over profitability in a weaker consumer market. Construction & Services Construction & Services Construction & Services Construction & Services posted favourable organic growth and strong earnings. EBITA increased 52% and the return on capital employed was satisfactory. This positive performance applies not least to our construction operations (airteam, HENT and SSEA Group), which delivered strong earnings in a market that is gradually growing more difficult. The construction operations had good project closures and has limited exposure to the housing market. Demand within the infrastructure operations (Aibel, NVBS and Presis Infra) remained strong. Industry Industry Industry Industry increased its EBITA by 17%. The increase in earnings was mainly attributable to higher earnings in Diab, the acquired company Semcon and add-on acquisitions, primarily in HL Display. Altogether, we noted negative organic sales growth in our technology companies that develop, manufacture and sell their own products (Diab, HL Display, LEDiL and Oase Outdoors), with demand in the market generally showing signs of a slowdown. Overall, our companies that sell technological solutions for projects and consulting services (Knightec, Semcon, Speed Group and TFS) continued to post positive organic growth despite one fewer work day in the quarter. The focus within Consumer Consumer Consumer Consumer has been on improving operating cash flow in Plantasjen by reducing inventory levels through a sales campaign for specific product groups at a lower gross margin. The initiative has this year led to SEK 645m in cash flow improvements. Organic sales growth for the business area was negative. This was exclusively related to KVD that focused on increasing its auction business, which means that sales of cars from its own stock continue to decline. Ratos’s focus moving forward will be on solutions for technology and infrastructure (public buildings included), of which are markets with strong underlying growth. The increasing pace of technological development is a condition for a more sustainable society from every perspective, and our engineers will play an important role. Acquisitions and divestments will remain important for achieving our future structure. As part of our focus on the technology consulting industry, we are separating out the aftermarket business of Semcon in the new company Aleido. I look forward to the continued development of this area. In an increasingly worrisome and uncertain world, I’m confident that Ratos is well equipped and that our operational model Ratos Business System (RBS) will help us react quickly to changes in the market. Jonas Wiström, President and CEO ===== SIDA 4 ===== 3 Ratos Interim report Q3 2023 Group performance Q3 2023 Net sales Net sales for the period amounted to SEK 7,971m (7,039), up 13% year on year. Organic sales growth in the period amounted to 2%. Construction & Services reported organic sales growth, while Consumer and Industry’s sales declined organically. Currency effects had a positive effect of SEK 88m (1%) on net sales. The structural effect amounted to SEK 676m (10%) and was primarily attributable to the acquisition of Semcon in the Industry business area and add-on acquisitions in the Industry and Construction & Services business areas. Adjusted EBITA Adjusted EBITA during the quarter amounted to SEK 517m (432). The adjusted EBITA margin was 6.5% (6.1). The improvement in earnings was due to higher earnings in the Construction & Services and Industry business areas and pertains to organic EBITA growth as well as acquired EBITA in Industry, primarily through Semcon. In Construction & Services, the construction company HENT reported a positive earnings development, and Aibel’s earnings increased compared with the same quarter last year. Earnings in the Consumer business area were lower due to sale campaigns at lower gross margins to reduce Plantasjen’s inventory levels. In the Industry business area, Diab reported a strong improvement in earnings driven by a favourable performance in Marine, Industry and Aerospace (MIA) despite a challenging wind market. Financial performance Q3 2023 Adjusted EBITA, quarterly and LTM, SEKm Sales bridge Q3 Net sales, quarterly and LTM, SEKm Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 SEKm SEKm SEKm SEKm 2023 2023 2023 2023 2022 2022 2022 2022 2023 2023 2023 2023 2022 2022 2022 2022 Construction & Services 4,155 3,788 10% 408 268 52% Consumer 1,351 1,424 -5% -67 10 neg Industry 2,465 1,827 35% 194 166 17% Group costs -18 -12 -50% Elimination of internal net sales -0 Net sales and adjusted EBITA Net sales and adjusted EBITA Net sales and adjusted EBITA Net sales and adjusted EBITA 7,971 7,971 7,971 7,971 7,039 7,039 7,039 7,039 13% 517 517 517 517 432 432 432 432 20% Amortisation and impairment of intangible assets in connection with company acquisitions -35 -26 -35% Consolidated operating profit Consolidated operating profit Consolidated operating profit Consolidated operating profit 481 481 481 481 406 406 406 406 18% Finance net -172 -63 neg Profit before tax Profit before tax Profit before tax Profit before tax 309 309 309 309 343 343 343 343 -10% Tax -22 -60 63% Profit for the period Profit for the period Profit for the period Profit for the period 287 287 287 287 283 283 283 283 1% From Q2 2023, Ratos has changed the composition of its business areas. For more information see page 16 "Note 1 Accounting principles". Change Change Change Change % % % % Change Change Change Change % % % % Net sales EBITA, adjusted 365 226 253 963 432 318 324 1,078 517 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 Q3 2021 Q4 Q1 Q2 Q3 2022 Q4 Q1 Q2 Q3 2023 LTM Net sales 2022, SEKm 7,039 Structure, % 10% Currency, % 1% Other, % 0% Organic growth, % 2% Total, % 13% 2023, SEKm 7,971 5,371 5,754 6,220 8,420 7,039 8,195 7,817 10,001 7,971 Q3 2021 Q4 Q1 Q2 Q3 2022 Q4 Q1 Q2 Q3 2023 LTM ===== SIDA 5 ===== 4 Ratos Interim report Q3 2023 Group performance January–September 2023 Net sales Net sales for the period amounted to SEK 25,788m (21,680), up 19% year on year. Organic sales growth in the period amounted to 6%. Construction & Services reported organic sales growth, while Consumer and Industry's sales declined organically. Currency effects had a positive effect of SEK 37m (0%) on net sales. The structural effect amounted to SEK 2,831m (13%) and was primarily attributable to the acquisition of Semcon in the Industry business area and add-on acquisitions in the Industry and Construction & Services business areas. Adjusted EBITA Adjusted EBITA in the period amounted to SEK 1,918m (1,648). The adjusted EBITA margin was 7.4% (7.6). The improvement in earnings was primarily due to higher earnings in the Construction & Services and Industry business areas and pertains to organic EBITA growth as well as acquired EBITA. Earnings in the Consumer business area declined during the period due to Plantasjen. Financial performance January–September 2023 Adjusted EBITA, LTM, SEKm Sales bridge, January–September Net sales, LTM, SEKbn Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Rolling Rolling Rolling Rolling Full Year Full Year Full Year Full Year Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Rolling Rolling Rolling Rolling Full Year Full Year Full Year Full Year SEKm SEKm SEKm SEKm 2023 2023 2023 2023 2022 2022 2022 2022 LTM LTM LTM LTM 2022 2022 2022 2022 2023 2023 2023 2023 2022 2022 2022 2022 LTM LTM LTM LTM 2022 2022 2022 2022 Construction & Services 12,987 10,950 19% 17,767 15,730 984 777 27% 1,338 1,130 Consumer 4,810 5,265 -9% 5,938 6,392 301 492 -39% 135 326 Industry 7,991 5,467 46% 10,279 7,755 754 496 52% 929 671 Group costs -121 -116 -4% -165 -160 Elimination of internal sales -0 -1 -0 -1 Net sales and adjusted EBITA Net sales and adjusted EBITA Net sales and adjusted EBITA Net sales and adjusted EBITA 25,788 25,788 25,788 25,788 21,680 21,680 21,680 21,680 19% 33,984 33,984 33,984 33,984 29,875 29,875 29,875 29,875 1,918 1,918 1,918 1,918 1,648 1,648 1,648 1,648 16% 2,237 2,237 2,237 2,237 1,966 1,966 1,966 1,966 Revaluation and gain/loss listed shares -118 100% -118 Items affecting comparability -130 100% -130 Amortisation and impairment of intangible assets in connection with company acquisitions -114 -64 -80% -151 -100 Consolidated operating profit Consolidated operating profit Consolidated operating profit Consolidated operating profit 1,804 1,804 1,804 1,804 1,336 1,336 1,336 1,336 35% 2,086 2,086 2,086 2,086 1,618 1,618 1,618 1,618 Finance net -573 -267 -115% -747 -440 Profit before tax Profit before tax Profit before tax Profit before tax 1,231 1,231 1,231 1,231 1,069 1,069 1,069 1,069 15% 1,339 1,339 1,339 1,339 1,178 1,178 1,178 1,178 Tax -204 -236 13% -268 -299 Profit for the period Profit for the period Profit for the period Profit for the period 1,026 1,026 1,026 1,026 834 834 834 834 23% 1,072 1,072 1,072 1,072 879 879 879 879 From Q2 2023, Ratos has changed the composition of its business areas. For more information see page 16 "Note 1 Accounting principles". Net sales EBITA, adjusted Change Change Change Change % % % % Change Change Change Change % % % % 1,777 1,802 1,879 1,807 1,874 1,966 2,038 2,153 2,237 8.2% 8.0% 7.7% 7.0% 6.8% 6.6% 6.5% 6.5% 6.6 % Q3 2021 Q4 Q1 Q2 Q3 2022 Q4 Q1 Q2 Q3 2023 EBITA % Net sales 2022, SEKm 21,680 Structure, % 13% Currency, % 0% Other, % 0% Organic growth, % 6% Total, % 19% 2023, SEKm 25,788 21.6 22.6 24.3 25.8 27.4 29.9 31.5 33.1 34.0 2.4% 4.2% 7.9% 5.9% 6.5% 8.9% 5.3% 5.0% 2.8 % Q3 2021 Q4 Q1 Q2 Q3 2022 Q4 Q1 Q2 Q3 2023 Growth % ===== SIDA 6 ===== 5 Ratos Interim report Q3 2023 Construction & Services Net sales Net sales for the third quarter amounted to SEK 4,155m (3,788), a year on year increase of 10%. This increase was driven by organic growth of 10%, stemming from services in Critical Infrastructure (Aibel, NVBS and Presis Infra) and Construction Services (airteam, HENT and SSEA Group). EBITA EBITA for the business area amounted to SEK 408m (268) for the quarter, up 52%, and the EBITA margin was 9.8% (7.1). This positive performance was primarily due to strong profit growth in HENT and higher earnings in Aibel as a result of the phase of its projects. Financial performance EBITA, LTM, SEKm Net sales, LTM, SEKm Sales bridge, net sales The Construction & Services business area consists of the Critical Infrastructure (Aibel, NVBS and Presis Infra) and Construction Services (airteam, HENT and SSEA Group) sub- segments Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 LTM LTM LTM LTM Full Year Full Year Full Year Full Year SEKm SEKm SEKm SEKm 2023 2023 2023 2023 2022 2022 2022 2022 2023 2023 2023 2023 2022 2022 2022 2022 Rolling Rolling Rolling Rolling 2022 2022 2022 2022 Net sales 4,155 3,788 10% 12,987 10,950 19% 17,767 15,730 13% EBITA, adjusted 408 268 52% 984 777 27% 1,338 1,130 18% EBITA %, adjusted 9.8% 7.1% 7.6% 7.1% 7.5% 7.2% EBITA 408 268 52% 984 777 27% 1,338 1,130 18% EBITA % 9.8% 7.1% 7.6% 7.1% 7.5% 7.2% Operating profit 392 250 57% 929 727 28% 1,264 1,061 19% Operating profit % 9.4% 6.6% 7.2% 6.6% 7.1% 6.7% Cash flow from operating activities /one.sups⁾ 798 907 -12% 1,779 1,376 29% 1,893 1,490 27% Return on capital employed, business area % 20% 17% 20% 15% Average number of employees 6,798 Change Change Change Change % % % % Change Change Change Change % % % % Change Change Change Change % % % % 1) Cash flow metric is changed from January 1st 2023 retroactively, for more information see page 16 "Note 1 Accounting principles". From Q2 2023, Speed Group is included in the business area Industry. For more information see page 16 "Note 1 Accounting principles". 459 549 706 862 995 1,130 1,156 1,198 1,338 4.7% 5.3% 6.1% 6.9% 7.1% 7.2% 6.9% 6.9% 7.5% Q3 2021 Q4 Q1 Q2 Q3 2022 Q4 Q1 Q2 Q3 2023 EBITA % 9,840 10,345 11,516 12,573 13,996 15,730 16,629 17,400 17,767 -0.6% 5.1% 11.3% 9.2% 11.3% 12.4% 5.7% 4.6% 2.1% Q3 2021 Q4 Q1 Q2 Q3 2022 Q4 Q1 Q2 Q3 2023 Growth % Q3 Q3 Q3 Q3 Q1-3 Q1-3 Q1-3 Q1-3 2023 2023 2023 2023 2023 2023 2023 2023 2022, SEKm 3,788 10,950 Structure, % 0% 3% Currency, % -1% -2% Other, % 0% 0% Organic growth, % 10% 17% Total, % 10% 19% 2023, SEKm 4,155 12,987 ===== SIDA 7 ===== 6 Ratos Interim report Q3 2023 Consumer Net sales Net sales in the business area for the third quarter amounted to SEK 1,351m (1,424), down 5% year on year. Organic sales growth was negative and amounted to -5% due to a planned lower share of sales from kvdbil’s own inventory. Plantasjen’s net sales for the third quarter amounted to SEK 904m, up 2% year on year. The increase in sales was due to sale campaigns at lower gross margins to reduce inventory levels. Plantasjen’s underlying market was somewhat weaker during the third quarter due to a general sense of caution among consumers. EBITA EBITA for the business area amounted to SEK -67m (10) for the quarter. The EBITA margin was -5.0% (0.7). Plantasjen reported earnings of SEK -100m (6) in the third quarter. The decrease in earnings is primarily due to inventory downsizing and higher rent costs. KVD improved its earnings during the quarter, with a continued strong performance in the auction business and lower overhead costs. Financial performance EBITA, LTM, SEKm Sales bridge, net sales Net sales, LTM, SEKm The Consumer business area consists of KVD and Plantasjen Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 LTM LTM LTM LTM Full Year Full Year Full Year Full Year SEKm SEKm SEKm SEKm 2023 2023 2023 2023 2022 2022 2022 2022 2023 2023 2023 2023 2022 2022 2022 2022 Rolling Rolling Rolling Rolling 2022 2022 2022 2022 Net sales 1,351 1,424 -5% 4,810 5,265 -9% 5,938 6,392 -7% EBITA, adjusted -67 10 neg 301 492 -39% 135 326 -58% EBITA %, adjusted -5.0% 0.7% 6.3% 9.3% 2.3% 5.1% EBITA -67 10 neg 301 492 -39% 135 326 -58% EBITA % -5.0% 0.7% 6.3% 9.3% 2.3% 5.1% Operating profit/loss -68 9 neg 298 488 -39% 131 321 -59% Operating profit/loss % -5.0% 0.6% 6.2% 9.3% 2.2% 5.0% Cash flow from operating activities /two.sups⁾ -247 -331 25% 747 35 pos 667 -45 pos Return on capital employed, business area % -1% 9% -1% 4% Average number of employees 1,521 Change Change Change Change % % % % Change Change Change Change % % % % Change Change Change Change % % % % 2) Cash flow metric is changed from January 1st 2023 retroactively, for more information see page 16 "Note 1 Accounting principles". 1) Refer to page 20 for Plantasjens Net sales and EBITA, adjusted. From Q2 2023, Oase Outdoors is included in the business area Industry. For more information see page 16 "Note 1 Accounting principles". 760 766 750 561 480 326 218 212 135 13.9% 13.3% 12.2% 8.8% 7.5% 5.1% 3.6% 3.5% 2.3% Q3 2021 Q4 Q1 Q2 Q3 2022 Q4 Q1 Q2 Q3 2023 EBITA % 5,468 5,769 6,152 6,377 6,424 6,392 6,090 6,011 5,938 7.5% 5.5% 6.6% 3.7% 0.7% -0.5% -4.7% -1.3% -1.2% Q3 2021 Q4 Q1 Q2 Q3 2022 Q4 Q1 Q2 Q3 2023 Growth % Q3 Q3 Q3 Q3 Q1-3 Q1-3 Q1-3 Q1-3 2023 2023 2023 2023 2023 2023 2023 2023 2022, SEKm 1,424 5,265 Structure, % 0% 0% Currency, % 0% -1% Organic growth, % -5% -7% Total, % -5% -9% 2023, SEKm 1,351 4,810 ===== SIDA 8 ===== 7 Ratos Interim report Q3 2023 Industry Net sales Net sales in the business area for the third quarter amounted to SEK 2,465m (1 ,827), up 35%. Organic growth was negative and amounted to -8% for the quarter. The structural effect amounted to 37%. The sales increase was mainly attributable to the acquisitions of Semcon and Knightec as well as add-on acquisitions, in for example HL Display. Overall demand in Product Solutions (Diab, HL Display and LEDiL, Oase Outdoors) declined during the quarter, which was reflected in negative organic growth. Industrial Services (Knightec, Semcon, Speed Group and TFS) posted organic growth, with the exception of Speed Group, which saw lower volumes from one of the company’s main customers, resulting in negative organic growth. Adjusted EBITA Adjusted EBITA for the business area amounted to SEK 194m (166) for the quarter, up 17% year on year. The adjusted EBITA margin was 7.9% (9.1). The improvement in earnings was mainly attributable to higher earnings in Diab, the acquired company Semcon and add-on acquisitions. Financial performance Adjusted EBITA, LTM, SEKm Sales bridge, net sales Net sales, LTM, SEKm The Industry business area consists of the Industrial Services (Aleido, Knightec, Semcon, Speed Group and TFS) and Product Solutions (Diab, HL Display, LEDiL and Oase Outdoors) sub-segments Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 LTM LTM LTM LTM Full Year Full Year Full Year Full Year SEKm SEKm SEKm SEKm 2023 2023 2023 2023 2022 2022 2022 2022 2023 2023 2023 2023 2022 2022 2022 2022 Rolling Rolling Rolling Rolling 2022 2022 2022 2022 Net sales 2,465 1,827 35% 7,991 5,467 46% 10,279 7,755 33% EBITA, adjusted 194 166 17% 754 496 52% 929 671 39% EBITA %, adjusted 7.9% 9.1% 9.4% 9.1% 9.0% 8.6% EBITA 194 166 17% 754 366 106% 929 540 72% EBITA % 7.9% 9.1% 9.4% 6.7% 9.0% 7.0% Operating profit 175 160 10% 698 355 97% 856 514 67% Operating profit % 7.1% 8.7% 8.7% 6.5% 8.3% 6.6% Cash flow from operating activities /one.sups⁾ 337 273 24% 977 413 136% 994 430 131% Return on capital employed, business area % 10% 9% 10% 10% Average number of employees 6,765 From Q2 2023, Speed Group and Oase Outdoors is included in the business area Industry. For more information see page 16 "Note 1 Accounting principles". 1) Cash flow metric is changed from January 1st 2023 retroactively, for more information see page 16 "Note 1 Accounting principles". Change Change Change Change % % % % Change Change Change Change % % % % Change Change Change Change % % % % 693 628 582 548 552 671 824 901 929 10.9% 9.8% 8.7% 8.0% 7.9% 8.6% 9.4% 9.3% 9.0% Q3 2021 Q4 Q1 Q2 Q3 2022 Q4 Q1 Q2 Q3 2023 EBITA % 6,333 6,437 6,672 6,816 7,014 7,755 8,754 9,641 10,279 2.9% 1.6% 3.6% 2.2% 2.9% 10.6% 12.9% 10.1% 6.6% Q3 2021 Q4 Q1 Q2 Q3 2022 Q4 Q1 Q2 Q3 2023 Growth % Q3 Q3 Q3 Q3 Q1-3 Q1-3 Q1-3 Q1-3 2023 2023 2023 2023 2023 2023 2023 2023 2022, SEKm 1,827 5,467 Structure, % 37% 45% Currency, % 6% 6% Other, % 0% 0% Organic growth, % -8% -4% Total, % 35% 46% 2023, SEKm 2,465 7,991 ===== SIDA 9 ===== 8 Ratos Interim report Q3 2023 Financial overview, Ratos Group Cash flow Q3 Cash flow from operating activities amounted to SEK 862m (736). Cash flow from investing activities amounted to SEK -41m (-1,219) and cash flow from financing activities to SEK -887m (1,052). Cash flow for the quarter amounted to SEK -67m (569). The change in cash flow for the quarter was mainly due to financing activities, with the decrease in external loans amounting to SEK -542m (1,312). Investing activities were mainly affected by lower purchase prices of SEK -74m (-1,147) as a result of fewer acquired companies. Cash flow January–September Cash flow from operating activities amounted to SEK 3,393m (1,411) Cash flow from investing activities amounted to SEK -476m (-1,506) and cash flow from financing activities to SEK -3,516m (-324). Cash flow for the period amounted to SEK -599m (-420). The change in cash flow for the period attributable to operating activities amounted to SEK 3,393m (1,411), with operating profit amounting to SEK 1,804m (1,336), dividends received from associates amounting to SEK 122m (-) and changes in working capital amounting to SEK 864m (-314). Investing activities were mainly affected by lower purchase prices as a result of fewer acquired companies of SEK -312m (-1,916). In the year-earlier period, cash flow was positively affected by the sale of listed shares (SEK 690m). Financing activities were mainly impacted by the change in external loans, which amounted to SEK -2,279m (890). Net financial items Q3 Net financial items amounted to SEK -172m (-63). Net financial items were impacted by higher interest expenses as a result of increased financing and rising market interest rates, and the revaluation of synthetic options. Net financial items in the year-earlier period were positively impacted by changes in exchange rates. Net financial items January–September Net financial items amounted to SEK -573m (-267). Net financial items were impacted by higher interest expenses as a result of increased financing and rising market interest rates, negative exchange rate effects, and the revaluation of synthetic options. Tax Q3 The tax expense for the Group amounted to SEK -22m (-60) and profit before tax to SEK 309m (343). The effective tax rate for the quarter was 7% (17). The lower effective tax rate is primarily attributable to a larger share of earnings from associates during the quarter and higher capitalisation of loss carry-forwards. Tax January–September The tax expense for the Group amounted to SEK -204m (-236) and profit before tax to SEK 1,231m (1,069). The effective tax rate for the period was 17% (22). Financial position and leverage The Group’s cash and cash equivalents at the end of the period amounted to SEK 1,895m (2,532 at 31 December 2022) and interest-bearing net debt excluding financial lease liabilities totalled SEK 3,254m (4,798 at 31 December 2022). The Group’s leverage excluding financial lease liabilities at the end of the period amounted to 1.3x (2.5x at 31 December 2022). The Group’s interest-bearing net debt including financial lease liabilities totalled SEK 8,762m (10,468 at 31 December 2022). Including financial lease liabilities, the Group’s leverage at the end of the period amounted to 2.4x (3.5x at 31 December 2022). The total translation effect of currency for interest-bearing liabilities amounted to approximately SEK -90m, of which approximately SEK -30m related to liabilities to credit institutions and approximately SEK -60m to financial lease liabilities. At the end of the period, the Group’s interest-bearing liabilities to credit institutions amounted to SEK 4,569m (6,869 at 31 December 2022). Ratos’s equity At 30 September 2023, Ratos’s equity (attributable to owners of the parent) amounted to SEK 12,399m (12,289 at 31 December 2022), corresponding to SEK 38 (38) per share outstanding. Parent company The parent company’s operating loss amounted to SEK -119m (-109) for the January–September period. The parent company’s profit before tax amounted to SEK 69m (-30) and was positively impacted by dividends from Group companies of SEK 192m. Cash and cash equivalents in the parent company amounted to SEK 1,164m (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 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 for the January–September period amounted to SEK 2.28 (1.79) before dilution and to SEK 2.28 (1.79) after dilution. The closing price for Ratos’s Class B shares on 30 September 2023 was SEK 32.62. The total return on Class B shares in the January–September period amounted to -19.2%, compared with the performance for the SIX Return Index, which was 4.6%. Number of shares and repurchased/sold shares Ratos owned no treasury shares during the period. During the second quarter, 117,500 new Class B shares were issued in connection with the exercise/conversion of warrants and a convertible debenture. At 30 September 2023, the total number of shares and shares outstanding in Ratos (Class A and B shares) amounted to 326,016,488 and the number of votes to 108,775,003. ===== SIDA 10 ===== 9 Ratos Interim report Q3 2023 Incentive programmes During the period, the parent company issued warrants and a convertible debenture in accordance with the resolution of the Annual General Meeting (AGM) on 28 March 2023. In total, 650,000 warrants and 990,000 convertibles were issued. Significant events during and after the end of the quarter In October, Semcon completed the spin-off of its Product Information business area, which marks the official launch of the new and independent company Aleido. This strategic step was taken to strengthen both operations and to continue to develop the companies’ services and profitability. Both companies remain as wholly owned Ratos subsidiaries. Interest-bearing net debt and leverage 1) , SEKm Diluted earnings per share, SEK 1) Excluding financial lease liabilities -1,962 342 1,485 1,006 1,824 4,798 4,826 3,750 3,254 -0.5x 0.1x 0.9x 0.6x 0.9x 2.5x 2.2x 1.6x 1.3x Q3 2021 Q4 Q1 Q2 Q3 2022 Q4 Q1 Q2 Q3 2023 Leverage -1.40 2.11 2.17 8.10 1.68 2.17 -2.00 2018 2019 2020 2021 2022 2023 R12 ===== SIDA 11 ===== 10 Ratos Interim report Q3 2023 Financial statements Summary consolidated income statement Consolidated statement of comprehensive income Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Full Year Full Year Full Year Full Year SEKm SEKm SEKm SEKm 2023 2023 2023 2023 2022 2022 2022 2022 2023 2023 2023 2023 2022 2022 2022 2022 2022 2022 2022 2022 Net sales 7,971 7,039 25,788 21,680 29,875 Other operating income 106 51 173 137 155 Cost of goods and services sold -4,496 -4,313 -14,513 -13,224 -18,186 Employee benefit costs -2,027 -1,490 -6,396 -4,525 -6,494 Depreciation/amortisation and impairment of property, plant and equipment and intangible assets and right-of-use assets -415 -333 -1,174 -976 -1,340 Other external costs -747 -585 -2,314 -1,824 -2,529 Capital gain/loss from Group companies -0 -0 -0 Share of profit/loss from investments recognised according to the equity method 89 37 239 187 255 Revaluation and capital gain/loss listed shares -118 -118 Operating profit Operating profit Operating profit Operating profit 481 481 481 481 406 406 406 406 1,804 1,804 1,804 1,804 1,336 1,336 1,336 1,336 1,618 1,618 1,618 1,618 Net financial items/one.sups⁾ -172 -63 -573 -267 -440 Profit before tax Profit before tax Profit before tax Profit before tax 309 309 309 309 343 343 343 343 1,231 1,231 1,231 1,231 1,069 1,069 1,069 1,069 1,178 1,178 1,178 1,178 Income tax -22 -60 -204 -236 -299 Profit for the period, continuing operations Profit for the period, continuing operations Profit for the period, continuing operations Profit for the period, continuing operations 287 287 287 287 283 283 283 283 1,026 1,026 1,026 1,026 834 834 834 834 879 879 879 879 Profit/loss for the period attributable to: Owners of the parent 184 200 743 583 548 Non-controlling interests 103 83 284 251 331 Earnings per share, SEK - basic earnings per share 0.57 0.61 2.28 1.79 1.69 - diluted earnings per share 0.57 0.61 2.28 1.79 1.68 /one.sups⁾ See page 21 for a specification of the finance net Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Full Year Full Year Full Year Full Year SEKm SEKm SEKm SEKm 2023 2023 2023 2023 2022 2022 2022 2022 2023 2023 2023 2023 2022 2022 2022 2022 2022 2022 2022 2022 Profit for the period Profit for the period Profit for the period Profit for the period 287 287 287 287 283 283 283 283 1,026 1,026 1,026 1,026 834 834 834 834 879 879 879 879 Items that will not be reclassified to profit or loss: Remeasurement of defined benefit pension obligations, net 8 5 -1 64 46 Tax attributable to items that will not be reclassified to profit or loss -2 -5 -2 -5 -4 77 77 0 0 00 -2 -2 -2 -2 59 59 59 59 42 42 42 42 Items that may be reclassified subsequently to profit or loss: Translation differences for the period -65 90 -47 233 392 Change in hedging reserve for the period 115 -3 -59 -13 -9 Tax attributable to items that may be reclassified subsequently to profit or loss -1 0 -5 2 1 49 49 49 49 87 87 87 87 -112 -112 -112 -112 222 222 222 222 384 384 384 384 49 87 -112 222 384 Other comprehensive income for the period Other comprehensive income for the period Other comprehensive income for the period Other comprehensive income for the period 55 55 55 55 87 87 87 87 -114 -114 -114 -114 281 281 281 281 426 426 426 426 55 87 -114 281 426 Total comprehensive income for the period Total comprehensive income for the period Total comprehensive income for the period Total comprehensive income for the period 343 343 343 343 371 371 371 371 912 912 912 912 1,115 1,115 1,115 1,115 1,305 1,305 1,305 1,305 343 371 912 1,115 1,305 Total comprehensive income for the period attributable to: Owners of the parent 200 273 680 822 913 Non-controlling interest 143 98 233 293 392 ===== SIDA 12 ===== 11 Ratos Interim report Q3 2023 Summary consolidated statement of financial position SEKm SEKm SEKm SEKm 2023-09-30 2023-09-30 2023-09-30 2023-09-30 2022-09-30 2022-09-30 2022-09-30 2022-09-30 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 14,779 12,517 14,811 Other intangible non-current assets 2,044 1,676 2,096 Property, plant and equipment 1,686 1,683 1,725 Right-of-use assets 5,031 5,072 5,100 Financial assets 1,640 1,611 1,675 Deferred tax assets 467 382 357 Total non-current assets Total non-current assets Total non-current assets Total non-current assets 25,647 25,647 25,647 25,647 22,941 22,941 22,941 22,941 25,764 25,764 25,764 25,764 Current assets Current assets Current assets Current assets Inventories 2,135 2,549 2,477 Accounts receivable 3,166 3,318 3,699 Current receivables 2,653 1,914 2,703 Cash and cash equivalents 1,895 1,901 2,532 Total current assets Total current assets Total current assets Total current assets 9,848 9,848 9,848 9,848 9,682 9,682 9,682 9,682 11,411 11,411 11,411 11,411 Total assets Total assets Total assets Total assets 35,495 35,495 35,495 35,495 32,623 32,623 32,623 32,623 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 13,992 13,992 13,992 13,992 13,805 13,805 13,805 13,805 13,788 13,788 13,788 13,788 Non-current liabilities Non-current liabilities Non-current liabilities Non-current liabilities Interest-bearing liabilities 9,274 8,306 11,318 Non-interest bearing liabilities 1,928 1,504 1,668 Pension provisions 53 57 60 Other provisions 45 35 44 Deferred tax liabilities 833 549 742 Total non-current liabilities Total non-current liabilities Total non-current liabilities Total non-current liabilities 12,133 12,133 12,133 12,133 10,451 10,451 10,451 10,451 13,832 13,832 13,832 13,832 Current liabilities Current liabilities Current liabilities Current liabilities Interest-bearing liabilities 1,432 1,071 1,723 Non-interest bearing liabilities 7,244 6,770 7,393 Provisions 694 526 439 Total current liabilities Total current liabilities Total current liabilities Total current liabilities 9,371 9,371 9,371 9,371 8,367 8,367 8,367 8,367 9,555 9,555 9,555 9,555 Total liabilities Total liabilities Total liabilities Total liabilities 21,503 21,503 21,503 21,503 18,818 18,818 18,818 18,818 23,387 23,387 23,387 23,387 Total equity and liabilities Total equity and liabilities Total equity and liabilities Total equity and liabilities 35,495 35,495 35,495 35,495 32,623 32,623 32,623 32,623 37,175 37,175 37,175 37,175 ===== SIDA 13 ===== 12 Ratos Interim report Q3 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 680 233 912 822 293 1,115 913 392 1,305 Dividends -274 -113 -386 -390 -189 -579 -390 -262 -651 Non-controlling interests’ share of capital contribution and new issue 0 0 0 0 -0 -0 Transfer of treasury shares 2 2 2 2 Conversion of converible loan to shares 3 3 29 29 33 33 The value of the conversion option of the convertible debentures 3 3 7 7 7 7 Option premiums 6 6 9 9 9 9 Put options, future acquisitions from non- controlling interests -305 34 -272 -64 -556 -620 -227 -567 -794 Acquisition of shares in subsidiaries from non-controlling interests -6 -64 -70 -2 -2 4 -10 -6 Disposal of shares in subsidiaries to non- controlling interests 3 4 7 -2 33 31 -1 36 35 Non-controlling interests at acquisition 486 486 522 522 Closing equity Closing equity Closing equity Closing equity 12,399 12,399 12,399 12,399 1,593 1,593 1,593 1,593 13,992 13,992 13,992 13,992 12,354 12,354 12,354 12,354 1,451 1,451 1,451 1,451 13,805 13,805 13,805 13,805 12,289 12,289 12,289 12,289 1,499 1,499 1,499 1,499 13,788 13,788 13,788 13,788 2023-09-30 2023-09-30 2023-09-30 2023-09-30 2022-09-30 2022-09-30 2022-09-30 2022-09-30 2022-12-31 2022-12-31 2022-12-31 2022-12-31 ===== SIDA 14 ===== 13 Ratos Interim report Q3 2023 Summary consolidated statement of cash flows Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Full Year Full Year Full Year Full Year SEKm SEKm SEKm SEKm 2023 2023 2023 2023 2022 2022 2022 2022 2023 2023 2023 2023 2022 2022 2022 2022 2022 2022 2022 2022 Operating activities Operating activities Operating activities Operating activities Operating profit 481 406 1,804 1,336 1,618 Adjustment for non-cash items 349 271 1,238 994 1,227 830 677 3,042 2,329 2,845 Received dividends from associated companies 122 Interest and financial items, net -136 -131 -435 -375 -476 Income tax paid 5 -58 -200 -230 -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 699 699 699 699 488 488 488 488 2,529 2,529 2,529 2,529 1,724 1,724 1,724 1,724 2,068 2,068 2,068 2,068 Cash flow from change in working capital Increase (-)/Decrease (+) in inventories 222 -16 333 -606 -487 Increase (-)/Decrease (+) in operating receivables 190 52 563 -386 -1,062 Increase (+)/Decrease (-) in operating liabilities -249 212 -32 678 913 Cash flow from operating activities Cash flow from operating activities Cash flow from operating activities Cash flow from operating activities 862 862 862 862 736 736 736 736 3,393 3,393 3,393 3,393 1,411 1,411 1,411 1,411 1,431 1,431 1,431 1,431 Investing activities Investing activities Investing activities Investing activities Acquisition, group companies -74 -1,147 -312 -1,916 -4,542 Disposal, group companies 0 5 5 Investments and disposal, intangible assets/property, plant and equipment 33 -69 -162 -279 -405 Investments and disposal, financial assets -0 -2 -2 684 685 Cash flow from investing activities Cash flow from investing activities Cash flow from investing activities Cash flow from investing activities -41 -41 -41 -41 -1,219 -1,219 -1,219 -1,219 -476 -476 -476 -476 -1,506 -1,506 -1,506 -1,506 -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 0 Transfer of treasury shares -0 2 2 Option premiums paid 15 17 Repurchase/final settlements options -2 -0 -9 -11 Acquisition and disposal of shares in subsidiaries from non-controlling interests -0 -2 -27 -1 -0 Dividends paid -274 -390 -390 Dividends paid, non-controlling interests -1 -28 -129 -189 -248 Borrowings 6 1,490 1,835 3,470 9,957 Amortisation of loans -548 -178 -4,114 -2,580 -5,519 Amortisation of financial lease liabilitities -345 -228 -806 -643 -816 Cash flow from financing activities Cash flow from financing activities Cash flow from financing activities Cash flow from financing activities -887 -887 -887 -887 1,052 1,052 1,052 1,052 -3,516 -3,516 -3,516 -3,516 -324 -324 -324 -324 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 -67 -67 -67 -67 569 569 569 569 -599 -599 -599 -599 -420 -420 -420 -420 165 165 165 165 Cash and cash equivalents at the beginning of the period 1,987 1,267 2,532 2,230 2,230 Exchange differences in cash and cash equivalents -26 64 -39 91 138 Cash and cash equivalents at the end of the period 1,895 1,901 1,895 1,901 2,532 ===== SIDA 15 ===== 14 Ratos Interim report Q3 2023 Summary parent company income statement Parent company statement of comprehensive income Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Full Year Full Year Full Year Full Year SEKm SEKm SEKm SEKm 2023 2023 2023 2023 2022 2022 2022 2022 2023 2023 2023 2023 2022 2022 2022 2022 2022 2022 2022 2022 Other operating income 0 0 0 7 15 Administrative expenses -18 -27 -119 -116 -149 Depreciation of property, plant and equipment -0 -0 -0 -0 -1 Operating profit/loss Operating profit/loss Operating profit/loss Operating profit/loss -18 -18 -18 -18 -27 -27 -27 -27 -119 -119 -119 -119 -109 -109 -109 -109 -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⁾ -1 53 -4 79 94 Profit/loss after financial items Profit/loss after financial items Profit/loss after financial items Profit/loss after financial items -19 -19 -19 -19 26 26 26 26 69 69 69 69 -30 -30 -30 -30 172 172 172 172 Group contribution, recieved 92 Profit/loss before tax Profit/loss before tax Profit/loss before tax Profit/loss before tax -19 -19 -19 -19 26 26 26 26 69 69 69 69 -30 -30 -30 -30 264 264 264 264 Income tax 25 9 65 47 56 Profit/loss for the period Profit/loss for the period Profit/loss for the period Profit/loss for the period 77 77 35 35 35 35 134 134 134 134 17 17 17 17 320 320 320 320 /one.sups⁾ See page 21 for a specification of the finance net Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Full Year Full Year Full Year Full Year SEKm SEKm SEKm SEKm 2023 2023 2023 2023 2022 2022 2022 2022 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 77 77 35 35 35 35 134 134 134 134 17 17 17 17 320 320 320 320 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 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 77 77 35 35 35 35 134 134 134 134 17 17 17 17 320 320 320 320 ===== SIDA 16 ===== 15 Ratos Interim report Q3 2023 Summary parent company balance sheet Summary parent company statement of changes in equity SEKm SEKm SEKm SEKm 2023-09-30 2023-09-30 2023-09-30 2023-09-30 2022-09-30 2022-09-30 2022-09-30 2022-09-30 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 10,736 8,801 10,150 Receivables from group companies 4,124 5,682 6,180 Deferred tax assets 195 121 130 Total non-current assets Total non-current assets Total non-current assets Total non-current assets 15,058 15,058 15,058 15,058 14,608 14,608 14,608 14,608 16,464 16,464 16,464 16,464 Current assets Current assets Current assets Current assets Current receivables 37 58 48 Receivables from group companies 2,505 1,878 1,741 Cash and cash equivalents 1,164 858 410 Total current assets Total current assets Total current assets Total current assets 3,706 3,706 3,706 3,706 2,794 2,794 2,794 2,794 2,199 2,199 2,199 2,199 Total assets Total assets Total assets Total assets 18,764 18,764 18,764 18,764 17,402 17,402 17,402 17,402 18,663 18,663 18,663 18,663 EQUITY AND LIABILITIES Equity Equity Equity Equity 9,847 9,847 9,847 9,847 9,668 9,668 9,668 9,668 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 75 1,906 206 Interest-bearing liabilities 4,453 3,055 6,237 Convertible debentures 110 97 79 Deferred tax liabilities 3 3 3 Total non-current liabilities Total non-current liabilities Total non-current liabilities Total non-current liabilities 4,641 4,641 4,641 4,641 5,060 5,060 5,060 5,060 6,524 6,524 6,524 6,524 Current provisions Current provisions Current provisions Current provisions 21 21 21 21 76 76 76 76 86 86 86 86 Current liabilities Current liabilities Current liabilities Current liabilities Interest-bearing liabilities, group companies 4,100 2,428 1,464 Interest-bearing liabilities 104 10 590 Non-interest bearing liabilities, group companies 0 133 Non-interest bearing liabilities 50 27 25 Total current liabilities Total current liabilities Total current liabilities Total current liabilities 4,254 4,254 4,254 4,254 2,598 2,598 2,598 2,598 2,079 2,079 2,079 2,079 Total equity and liabilities Total equity and liabilities Total equity and liabilities Total equity and liabilities 18,764 18,764 18,764 18,764 17,402 17,402 17,402 17,402 18,663 18,663 18,663 18,663 SEKm SEKm SEKm SEKm 2023-09-30 2023-09-30 2023-09-30 2023-09-30 2022-09-30 2022-09-30 2022-09-30 2022-09-30 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 134 17 320 Dividends -274 -390 -390 Transfer of treasury shares 2 2 Conversion of convertible loan to shares 3 29 33 The value of the conversion option of the convertible debentures 4 8 8 Deferred tax, conversion option -1 -2 -2 Option premiums 6 9 9 Closing equity Closing equity Closing equity Closing equity 9,847 9,847 9,847 9,847 9,668 9,668 9,668 9,668 9,975 9,975 9,975 9,975 ===== SIDA 17 ===== 16 Ratos Interim report Q3 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 operational 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. From the second quarter of 2023, Ratos has changed the composition of its business areas to better reflect the companies’ business focus. Speed Group, which was previously part of the Construction & Services business area, and Oase Outdoors, which was previously part of the Consumer business area, now belong to the Industry business area. From the second quarter of 2023, Ratos’s central holding companies are reported in their respective business areas rather than as “Group costs” as was the case in the past. All comparative figures have been retroactively restated in accordance with the above changes, 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 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 30 September 2023, the net value of derivatives (level two) amounted to SEK -4m (1 at 31 December 2022), of which SEK 6m (7 at 31 December 2022) was recognised as an asset and SEK 10m (6 at 31 December 2022) as a liability. In the statement of financial position at 30 September 2023, the total value of financial instruments measured at fair value in accordance with level three was SEK 2,336m (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 2023-09-30 2023-09-30 2023-09-30 2023-09-30 2022-12-31 2022-12-31 2022-12-31 2022-12-31 2023-09-30 2023-09-30 2023-09-30 2023-09-30 2022-12-31 2022-12-31 2022-12-31 2022-12-31 2023-09-30 2023-09-30 2023-09-30 2023-09-30 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 67 18 -12 44 16 12 Recognised against equity 221 Newly issued/subsequent expenditure 2 273 566 68 49 Acquisitions, Group companies 8 26 Settlements -11 -134 -46 Closing balance Closing balance Closing balance Closing balance 220 220 220 220 153 153 153 153 1,930 1,930 1,930 1,930 1,669 1,669 1,669 1,669 186 186 186 186 236 236 236 236 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 18 ===== 17 Ratos Interim report Q3 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 were updated in 2023 after the final acquisition balances were determined. This has not entailed any significant effects for the Group. In 2022, SSEA Group acquired the company Kiruna Målbygg AB. The preliminary acquisition analysis was updated in 2023 after the final acquisition balance was determined. This has not entailed any significant effects for the Group. In 2022, airteam acquired the company Grundströms Plåt i Kiruna AB. The preliminary acquisition analysis was updated in 2023 after the final acquisition balance was determined. This has not entailed any significant effects for the Group. Consumer In 2022, Plantasjen acquired Flyinge Plantshop AB. The preliminary acquisition analysis was updated in the first quarter of 2023 after the final acquisition balance was determined. This has not entailed any significant effects for the Group. Industry On 15 February, HL Display acquired the Swedish company Akriform Plast AB. The company is a producer of bulk bins and custom-made solutions for grocery retail and branded goods suppliers throughout the Nordics. The company’s sales for the last 12 months amounted to SEK 85m at 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. On 3 April, HL Display acquired the company Oechsle Display Systems, a manufacturer of communication and shelf management solutions, and its sister company werba print & display, a provider of print and display solutions. Both companies have annual sales of EUR 13m. On 2 June, Speed Group acquired the Swedish company Supplier Partner, a Gothenburg-based company in industrial logistics with annual sales of approximately SEK 60m. In 2022, TFS acquired the company Appletree CI Group AG. The preliminary acquisition analysis was updated in 2023 after the final acquisition balance was determined. This has not entailed any significant effects for the Group. 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 was updated in the first quarter of 2023 after the final acquisition balance was determined. No material changes were identified. During the second quarter, Ratos concluded the process for a compulsory buy-out of the remaining shares in Semcon. As of 30 June 2023, the company is a wholly owned subsidiary. Final acquisition analysis Semcon Final acquisition analysis Semcon Final acquisition analysis Semcon Final acquisition analysis Semcon SEKm SEKm SEKm SEKm Intangible assets 80 Property, plant and equipment 34 Right-of-use assets 40 Financial assets 0 Deferred tax asset 0 Trade receivables 56 Current assets 85 Cash and cash equivalents 14 Deferred tax liability -16 Non-current liabilities -5 Current liabilities -99 Net identifiable assets and liabilities Net identifiable assets and liabilities Net identifiable assets and liabilities Net identifiable assets and liabilities 189 189 189 189 Goodwill 60 Purchase price Purchase price Purchase price Purchase price 249 249 249 249 of which, paid in cash 192 of which, contingent consideration 57 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 19 ===== 18 Ratos Interim report Q3 2023 Key figures For definitions, see page 22 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 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 1.3x 0.9x 2.5x Leverage 2.4x 2.5x 3.5x Equity ratio, % 39.4 42.3 37.1 Return on equity, % 5.8 7.5 4.6 Return on capital employed excl. financial leasing, % 10.3 10.5 10.1 Return on capital employed, % 8.9 8.7 8.5 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, % -19.2 -32.6 -26.6 Dividend yield, % 2.0 Market price, SEK 32.62 38.09 41.49 Dividend, SEK 0.84 Equity attributable to owners of the parent, SEK/two.sups⁾ 38.03 37.92 37.71 Basic earnings per share, SEK 2.28 1.79 1.69 Diluted earnings per share, SEK 2.28 1.79 1.68 Average number of ordinary shares outstanding: – before dilution 325,957,221 325,010,394 325,223,889 – after dilution 328,333,600 327,787,875 326,442,359 Total number of registered shares 326,016,488 325,786,488 325,898,988 Number of shares outstanding/three.sups⁾ 326,016,488 325,786,488 325,898,988 – of which, Class A shares 84,637,060 84,637,060 84,637,060 – of which, Class B shares 241,379,428 241,149,428 241,261,928 /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 20 ===== 19 Ratos Interim report Q3 2023 Reconciliations between alternative performance measures 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 22 of this report. Organic growth EBITDA, EBITA and operating profit Interest-bearing net debt Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Full Year Full Year Full Year Full Year SEKm SEKm SEKm SEKm 2023 2023 2023 2023 2022 2022 2022 2022 2023 2023 2023 2023 2022 2022 2022 2022 2022 2022 2022 2022 Growth Net Sales, % Growth Net Sales, % Growth Net Sales, % Growth Net Sales, % 13% 13% 13% 13% 31% 31% 31% 31% 19% 19% 19% 19% 29% 29% 29% 29% 32% 32% 32% 32% Net sales Net sales Net sales Net sales 7,971 7,971 7,971 7,971 7,039 7,039 7,039 7,039 25,788 25,788 25,788 25,788 21,680 21,680 21,680 21,680 29,875 29,875 29,875 29,875 Acquired net sales 676 1,058 2,830 3,032 4,629 Effects from change in currency 88 243 37 864 914 Other 0 -12 -4 -24 -39 Net sales, adjusted Net sales, adjusted Net sales, adjusted Net sales, adjusted 7,207 7,207 7,207 7,207 5,750 5,750 5,750 5,750 22,925 22,925 22,925 22,925 17,807 17,807 17,807 17,807 24,371 24,371 24,371 24,371 Divested net sales in the comparison period 2 5 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 7,039 7,039 7,039 7,039 5,369 5,369 5,369 5,369 21,680 21,680 21,680 21,680 16,792 16,792 16,792 16,792 22,544 22,544 22,544 22,544 Organic growth Organic growth Organic growth Organic growth 167 167 167 167 381 381 381 381 1,245 1,245 1,245 1,245 1,015 1,015 1,015 1,015 1,827 1,827 1,827 1,827 Organic growth, % Organic growth, % Organic growth, % Organic growth, % 2% 2% 2% 2% 7% 7% 7% 7% 6% 6% 6% 6% 6% 6% 6% 6% 8% 8% 8% 8% Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Full Year Full Year Full Year Full Year SEKm SEKm SEKm SEKm 2023 2023 2023 2023 2022 2022 2022 2022 2023 2023 2023 2023 2022 2022 2022 2022 2022 2022 2022 2022 EBITDA EBITDA EBITDA EBITDA 896 896 896 896 739 739 739 739 2,978 2,978 2,978 2,978 2,312 2,312 2,312 2,312 2,958 2,958 2,958 2,958 Depreciations and impairment -379 -307 -1,059 -913 -1,240 EBITA EBITA EBITA EBITA 517 517 517 517 432 432 432 432 1,918 1,918 1,918 1,918 1,400 1,400 1,400 1,400 1,718 1,718 1,718 1,718 Revaluation and capital gain/loss listed shares -118 -118 Restructuring costs -130 -130 Adjusted EBITA Adjusted EBITA Adjusted EBITA Adjusted EBITA 517 517 517 517 432 432 432 432 1,918 1,918 1,918 1,918 1,648 1,648 1,648 1,648 1,966 1,966 1,966 1,966 Amortisation and impairment of intangible assets in connection with company acquisitions -35 -26 -114 -64 -100 Operating profit Operating profit Operating profit Operating profit 481 481 481 481 406 406 406 406 1,804 1,804 1,804 1,804 1,336 1,336 1,336 1,336 1,618 1,618 1,618 1,618 SEKm SEKm SEKm SEKm 2023-09-30 2023-09-30 2023-09-30 2023-09-30 2022-09-30 2022-09-30 2022-09-30 2022-09-30 2022-12-31 2022-12-31 2022-12-31 2022-12-31 Interest-bearing liabilities, other 5,198 3,804 7,371 Provisions for pensions 53 57 60 Interest-bearing assets -102 -136 -101 Cash and cash equivalents -1,895 -1,901 -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 3,254 3,254 3,254 3,254 1,824 1,824 1,824 1,824 4,798 4,798 4,798 4,798 Financial leasing liabilities 5,508 5,573 5,670 Interest-bearing net debt inc. financial leasing Interest-bearing net debt inc. financial leasing Interest-bearing net debt inc. financial leasing Interest-bearing net debt inc. financial leasing 8,762 8,762 8,762 8,762 7,397 7,397 7,397 7,397 10,468 10,468 10,468 10,468 ===== SIDA 21 ===== 20 Ratos Interim report Q3 2023 Segments by quarter, summary Q1 Q1 Q1 Q1 Q2 Q2 Q2 Q2 Q3 Q3 Q3 Q3 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 2023 2023 2023 2023 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 4,259 4,573 4,155 3,360 3,802 3,788 4,780 15,730 Consumer 830 2,630 1,351 1,132 2,709 1,424 1,127 6,392 - whereof Plantasjen 542 2,132 904 661 2,118 887 740 4,407 Industry 2,728 2,798 2,465 1,728 1,911 1,827 2,288 7,755 Elimination of internal net sales 0 0 -1 0 0 -1 Ratos group Ratos group Ratos group Ratos group 7,817 7,817 7,817 7,817 10,001 10,001 10,001 10,001 7,971 7,971 7,971 7,971 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 Q2 Q2 Q2 Q2 Q3 Q3 Q3 Q3 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 2023 2023 2023 2023 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 349 358 477 309 310 333 418 1,370 Consumer -67 724 84 31 721 145 -19 877 Industry 427 391 353 274 279 272 290 1,115 Revaluation and capital gain/loss listed shares -100 -18 -118 Items affecting comparability -130 -130 Group costs -48 -52 -17 -49 -53 -11 -43 -156 Ratos group Ratos group Ratos group Ratos group 661 661 661 661 1,421 1,421 1,421 1,421 896 896 896 896 334 334 334 334 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 Q2 Q2 Q2 Q2 Q3 Q3 Q3 Q3 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 2023 2023 2023 2023 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 284 293 408 258 250 268 353 1,130 Consumer -213 581 -67 -105 587 10 -166 326 - whereof Plantasjen -215 543 -100 -103 565 6 -142 325 Industry 303 258 194 150 180 166 175 671 Group costs -50 -53 -18 -50 -54 -12 -44 -160 Ratos group Ratos group Ratos group Ratos group 324 324 324 324 1,078 1,078 1,078 1,078 517 517 517 517 253 253 253 253 963 963 963 963 432 432 432 432 318 318 318 318 1,966 1,966 1,966 1,966 Q1 Q1 Q1 Q1 Q2 Q2 Q2 Q2 Q3 Q3 Q3 Q3 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 2023 2023 2023 2023 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 265 272 392 244 233 250 335 1,061 Consumer -214 580 -68 -106 586 9 -167 321 Industry 284 239 175 148 178 160 158 644 Revaluation and capital gain/loss listed shares -100 -18 -118 Items affecting comparability -130 -130 Group costs -50 -53 -18 -50 -54 -12 -44 -160 Ratos group Ratos group Ratos group Ratos group 285 285 285 285 1,038 1,038 1,038 1,038 481 481 481 481 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 Q2 Q2 Q2 Q2 Q3 Q3 Q3 Q3 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 2023 2023 2023 2023 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 230 235 358 211 215 221 300 947 Consumer -308 482 -152 -162 517 -46 -268 41 Industry 230 158 123 119 153 127 10 410 Revaluation and capital gain/loss listed shares -100 -18 -118 Items affecting comparability -130 -130 Group costs -62 -45 -19 -36 -42 40 67 29 Ratos group Ratos group Ratos group Ratos group 90 90 90 90 831 831 831 831 309 309 309 309 -98 -98 -98 -98 825 825 825 825 343 343 343 343 109 109 109 109 1,178 1,178 1,178 1,178 From Q2 2023, Ratos has changed the composition of its business areas. For more information see page 16 "Note 1 Accounting principles". ===== SIDA 22 ===== 21 Ratos Interim report Q3 2023 Specification of net financial items Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 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 2023 2023 2023 2023 2022 2022 2022 2022 2022 2022 2022 2022 Interest income 19 3 pos 56 5 pos 15 Interest expense -84 -26 neg -254 -64 neg -124 Interest expense financial leasing -71 -64 -11% -208 -196 -6% -266 Net interest Net interest Net interest Net interest -136 -136 -136 -136 -87 -87 -87 -87 -56% -56% -56% -56% -406 -406 -406 -406 -256 -256 -256 -256 -59% -59% -59% -59% -375 -375 -375 -375 Net exchange rate effects 1 33 -97% -69 36 neg -9 Other financial items -37 -9 neg -98 -47 -108% -56 Net financial items Net financial items Net financial items Net financial items -172 -172 -172 -172 -63 -63 -63 -63 neg neg neg neg -573 -573 -573 -573 -267 -267 -267 -267 -115% -115% -115% -115% -440 -440 -440 -440 Change Change Change Change % % % % Change Change Change Change % % % % Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 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 2023 2023 2023 2023 2022 2022 2022 2022 2022 2022 2022 2022 Net interest 17 43 -60% 61 109 -44% 149 Net exchange rate effects -1 15 -109% -19 -7 neg -19 Other financial items -16 -5 neg -46 -23 -99% -36 Net financial items Net financial items Net financial items Net financial items -1 -1 -1 -1 53 53 53 53 -102% -102% -102% -102% -4 -4 -4 -4 79 79 79 79 -104% -104% -104% -104% 94 94 94 94 Change Change Change Change % % % % Change Change Change Change % % % % ===== SIDA 23 ===== 22 Ratos Interim report Q3 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. Return on capital employed, business area Adjusted EBITA for the business area’s operating companies for the last 12 months as a percentage of average capital employed excluding financial lease liabilities 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 excl. finance leases Interest-bearing net debt excluding finance leases in relation to EBITDA for the last 12 months. 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 24 ===== Investor presentation 23 October 9:00 a.m. Webcast: https://youtube.com/live/zmOVIGWY3fg?feature=share Financial calendar 2023 2023 2023 2023 Year-end report 2023 12 February Stockholm, 23 October 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 23 October 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 17 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.