===== SIDA 1 ===== Interim report Q3 2024 ===== SIDA 2 ===== 1 Ratos Interim report Q3 2024 Interim report January–September 2024 Q3 2024  Adjusted 1) EBITA amounted to SEK 469m (517)  Operating profit amounted to SEK 159m 2) (481)  Profit for the period amounted to SEK -54m 2) (287)  Adjusted diluted earnings per share amounted to SEK 0.40 (0.57)  Diluted earnings per share amounted to SEK -0.45 2) (0.57)  Cash flow from operating activities amounted to SEK 783m (862) January–September 2024  Adjusted 1) EBITA amounted to SEK 1,928m (1,918)  Operating profit amounted to SEK 1,558m 2) (1,804)  Profit for the period amounted to SEK 806m 2) (1,026)  Adjusted diluted earnings per share amounted to SEK 2.32 (2.28)  Diluted earnings per share amounted to SEK 1.47 2) (2.28)  Cash flow from operating activities amounted to SEK 2,042m (3,393)  Adjusted leverage excluding finance leases amounted to 1.2x (1.3x)  Leverage excluding finance leases was 0.7x 3) (1.3x) Significant events during and after the end of the quarter  On 22 August, Plantasjen filed for reconstruction for selected legal entities in Sweden, Norway and Finland. In September, Plantasjen’s Finnish operations were declared bankrupt. The reconstruction decision resulted in an impairment of goodwill of SEK 246m being carried out in the quarter.  The merger of the Ratos companies Knightec and Semcon commenced in the third quarter and is expected to be completed in early 2025. Following the merger, the new company will hold a leading position in the northern Europe within product development and digital services.  During the quarter, Expin Group’s operations were restructured to focus on the electrification of rail infrastructure.  On 1 October, HL Display acquired Kost Klip Manufacturing Ltd., a Canadian manufacturer of in-store communication and shelf management solutions for the retail industry. Ratos Group, SEKm 1) For a reconciliation of adjusted EBITA, see page 21. For definitions, see page 23. 2) Negatively impacted by impairment of goodwill in Plantasjen of SEK -246m and other items affecting comparability of SEK -34m. 3) Positively impacted by a previous impairment of the holding in Aibel of SEK 1,656m in December 2023 and negatively impacted by other items affecting comparability of SEK -34m in Q3 2024. 4) Operating profit and profit for the period were impacted by impairment of goodwill in Plantasjen of SEK -246m and other items affecting comparability of SEK -34m in Q3 2024. Operating profit and profit for the period were positively affected, net, in December 2023 by a reversal of a previous impairment of the holding in Aibel of SEK 1,656m, and negatively affected by an impairment of goodwill and book values in Expin Group of SEK -524m, and impairment of goodwill in Plantasjen of SEK -250m. Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Change Change Change Change Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Q1-3 Change Change Change Change LTM LTM LTM LTM Full Year Full Year Full Year Full Year Change Change Change Change 2024 2024 2024 2024 2023 2023 2023 2023 % % %% 2024 2024 2024 2024 2023 2023 2023 2023 % % %% Rolling Rolling Rolling Rolling 2023 2023 2023 2023 %% %% Net sales 7,454 7,971 -6% 24,394 25,788 -5% 32,353 33,748 -4% EBITDA 758 896 -15% 2,933 2,978 -2% 5,263 5,308 -1% EBITA, adjusted/one.sups ⁾ 469 517 -9% 1,928 1,918 1% 2,254 2,244 0% EBITA %, adjusted/one.sups ⁾ 6.3% 6.5% 7.9% 7.4% 7.0% 6.7% EBITA 435 517 -16% 1,894 1,918 -1% 3,877 3,901 -1% EBITA % 5.8% 6.5% 7.8% 7.4% 12.0% 11.6% Operating profit ⁴⁾ 159 481 -67% 1,558 1,804 -14% 2,764 3,010 -8% Profit before tax 1 309 -100% 1,091 1,231 -11% 2,133 2,273 -6% Profit/loss for the period ⁴⁾ -54 287 -119% 806 1,026 -22% 1,785 2,006 -11% Basic earnings per share, SEK -0.45 0.57 neg 1.47 2.28 -3 5% 2.93 3.73 -21% Diluted earnings per share, SEK -0.45 0.57 neg 1.47 2.28 - 35% 2.92 3.72 -22% Cash flow from operating activities 783 862 -9% 2,042 3,3 93 -40% 2,925 4,275 -32% Leverage excl. financial leasing 0.7x 1.3x 0.7x Return on capital employed excl. financial leasing 10.2% 10.3% 10.0% ===== SIDA 3 ===== 2 Ratos Interim report Q3 2024 CEO comments on performance in the third quarter of 2024 Strong cash flows and stable earnings trend in a weaker market Overall, I am pleased with our performance in a busy third quarter. The Industry business area continued to deliver increased earnings, improved profitability and strong cash flows in a slightly weaker-than-expected market. We were particularly pleased with the impressive performance of our technology consultancy companies. Earnings in the Consumer business area also improved slightly in the quarter, while earnings in Construction & Services declined. The order intake increased, and the backlog of orders is now equivalent to nearly two years’ worth of sales for the business area. In August, we filed for reconstruction for selected legal entities in Plantasjen in Norway, Sweden and Finland. Following a decline in market demand over time, we need to create a smaller but profitable Plantasjen. The primary focus of the reconstruction is to downsize the store network, optimise lease contracts, and rightsize the organisation. These actions are necessary to transform Plantasjen into a financially viable business with favourable profitability going forward. Goodwill in Plantasjen was impaired in conjunction with the debt restructuring. In September, work commenced on the merger of Knightec and Semcon (Knightec Group) to create a leading partner for the development of products and digital services. Following the merger, Knightec Group is expected to have a sales of approximately SEK 2.7 billion and about 2,400 employees. The merger process has started, and the results so far have exceeded our expectations. The organisational component of the merger will be completed in the first quarter of 2025 and is expected to create significant synergies. Expin Group’s operations were restructured during the quarter. Going forward, Expin Group’s operations will focus on the electrification of rail infrastructure through its subsidiaries Ratatek, ES-Infra and TKBM. Its project planning, contracting and maintenance operations have been discontinued. Overall, the actions taken in the quarter have laid a solid foundation for further earnings improvements and increased profitability in the future. Development of Ratos’s business areas Development of Ratos’s business areas Development of Ratos’s business areas Development of Ratos’s business areas Industry Industry Industry Industry Earnings in the business area increased 21%. Adjusted EBITA amounted to SEK 235m (194). The EBITA margin was 9.7% (7.9). The Industrial Services segment performed well during the quarter, with all companies reporting higher EBITA, corresponding to a total increase of 31%. The technology consultancy companies reported organic sales growth of 8% despite a slightly weaker market. Sales in the Industrial Services segment decreased in the quarter due to lower demand for clinical trials. Overall, this was a good quarter for Industrial Services. The Product Solutions segment also delivered a strong performance during the quarter, with all companies reporting higher EBITA, corresponding to a total increase of 15%. Sales increased by 1% as a result of add-on acquisitions in HL Display and LEDiL. Diab, which accounted for the most significant EBITA growth in the quarter, continued to reduce its sales in wind power. HL Display continued to report organic sales and EBITA growth. The company also continued to deliver an impressive performance and strengthened its market- leading position in Europe. Overall, this was a good quarter for Product Solutions. Construction & Services Construction & Services Construction & Services Construction & Services Earnings in the business area declined 22%. Adjusted EBITA amounted to SEK 317m (408). The EBITA margin was 8.2% (9.8). The LTM order intake for the business area increased 25% excluding Aibel. The Construction segment’s earnings were 19% lower in the quarter than in the corresponding period last year, which included several strong project completions. The order intake increased in the quarter, as did the backlog of orders, which mainly comprise government contracts. While demand in the construction market remained generally weak, strong order books and a high order intake mean that our prospects for a continued favourable performance are good. In the installation market, airteam continued to deliver favourable earnings. The Critical Infrastructure segment’s sales declined 26% due to the overstated reporting of Expin Group’s earnings for the same period last year. A new structure is in place, and Expin Group’s focus going forward will be on creating a profitable player in the Swedish market for the electrification of rail infrastructure. Presis Infra continued to deliver higher, strong earnings. Aibel, which reported slightly weaker earnings due to project phasing during the quarter, continues to perform very well. Consumer Consumer Consumer Consumer The business area’s earnings improved slightly. Adjusted EBITA amounted to SEK -56m (-67), and the EBITA margin was -4.8% (-5.0). Plantasjen’s earnings improved as a result of the cost-saving programme initiated in 2023 and the sale of goods at a lower margin during the same period previous year to reduce tied-up capital. KVD’s EBITA declined SEK 1m as a result of profitability improvement measures totalling approximately SEK 4m that were charged to adjusted EBITA in the quarter. SS SSustainability ustainability ustainability ustainability within Ratos within Ratos within Ratos within Ratos During the quarter, we continued to focus on preparing for our future sustainability reporting in line with the new EU sustainability directive. Furthermore, the work with the Group's climate and sustainability targets continues. In the fourth quarter of 2024, we will submit our commitment to the Science Based Targets initiative (SBTi) and anticipate having our climate targets approved in 2025. Ratos’s sustainability agenda is based both on scientific grounds and on the pursuit of value creation. Strong performance in the first three quarters of 2024 Strong performance in the first three quarters of 2024 Strong performance in the first three quarters of 2024 Strong performance in the first three quarters of 2024 All in all, Ratos performed well during the period in a market with slightly weaker demand overall. Adjusted EBITA increased slightly, profitability improved, and our cash flows are strong. The measures implemented during the quarter provide a good foundation for continued value creation in a market with varying demand. Our earnings and profitability continued to improve, our order intake was strong, and Ratos’s financial position has been further strengthened. Jonas Wiström, President and CEO ===== SIDA 4 ===== 3 Ratos Interim report Q3 2024 Group performance Q3 2024 Net sales Net sales for the period amounted to SEK 7,454m (7,971), down -6% year on year. Organic sales growth was negative for the period and amounted to -4%. The Critical Infrastructure segment displayed strong organic sales growth, while the other segments reported negative organic growth. Currency effects had a negative impact of SEK -281m (-4%) on net sales, primarily as a result of the weak NOK. The structural effect amounted to SEK 64m (1%) and was attributable to add-on acquisitions in the Product Solutions segment. Profit Adjusted EBITA amounted to SEK 469m (517) for the period and the adjusted EBITA margin was 6.3% (6.5). The decline in earnings was attributable to lower earnings in Construction & Services, where the previous year was positively impacted by the completion of projects in Construction. For the Industrial Services and Product Solutions segments, earnings improved compared with the year- earlier period. The Consumer segment reported stronger earnings compared with the year-earlier quarter due to an earnings improvement in Plantasjen. Operating profit was negatively affected by an impairment of goodwill in Plantasjen of SEK 246m. Net financial items amounted to SEK -158m (-172). The Group’s net interest was lower than in the year-earlier period due to lower market interest rates. The effective tax rate for the quarter, adjusted for items affecting comparability, was 20% (7). Financial performance Q3 2024 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 2024 2024 2024 2024 2023 2023 2023 2023 2024 2024 2024 2024 2023 2023 2023 2023 Industry 2,428 2,465 -2% 235 194 21% Construction & Services 3,873 4,155 -7% 317 408 -22% Consumer 1,154 1,351 -15% -56 -67 17% Group costs -28 -18 -55% Elimination of internal net sales -0 Net sales and EBITA, adjusted Net sales and EBITA, adjusted Net sales and EBITA, adjusted Net sales and EBITA, adjusted 7,454 7,454 7,454 7,454 7,971 7,971 7,971 7,971 -6% 469 469 469 469 517 517 517 517 -9% Items affecting comparability -34 Amortisation and impairment of intangible assets in connection with company acquisitions -276 -35 neg Consolidated operating profit Consolidated operating profit Consolidated operating profit Consolidated operating profit 159 159 159 159 481 481 481 481 -67% Finance net -158 -172 8% Profit before tax Profit before tax Profit before tax Profit before tax 11 11 309 309 309 309 -100% Tax -55 -22 neg Profit/loss for the period Profit/loss for the period Profit/loss for the period Profit/loss for the period -54 -54 -54 -54 287 287 287 287 -119% Change Change Change Change % % % % Change Change Change Change % % % % Net sales EBITA, adjusted 432 318 324 1,078 517 326 359 1,101 469 0 200 400 600 800 1,000 1,200 1,400 Q3 2022 Q4 Q1 Q2 Q3 2023 Q4 Q1 Q2 Q3 2024 LTM Net sales 2023, SEKm 7,971 Structure, % 1% Currency, % -4% Organic growth, % -4% Total, % -6% 2024, SEKm 7,454 7,039 8,195 7,817 10,001 7,971 7,960 7,825 9,114 7,454 Q3 2022 Q4 Q1 Q2 Q3 2023 Q4 Q1 Q2 Q3 2024 LTM ===== SIDA 5 ===== 4 Ratos Interim report Q3 2024 Group performance January–September 2024 Net sales Net sales for the period amounted to SEK 24,394m (25,788), down -5% year on year. Organic sales growth was negative for the period and amounted to -5%. The Critical Infrastructure segment displayed strong organic sales growth, while the other segments reported negative organic growth. Currency effects had a negative impact of SEK -341m (-1%) on net sales, primarily as a result of the weak NOK. The structural effect amounted to SEK 277m (1%) and was mainly attributable to add-on acquisitions in the Industrial Services and Product Solutions segments. Profit Adjusted EBITA in the period amounted to SEK 1,928m (1,918), up 1% year on year. The adjusted EBITA margin was 7.9% (7.4). The Construction and Critical Infrastructure segments reported slightly weaker earnings compared with the year-earlier quarter, which was mainly the result of positive project completions in the preceding year and a decline in earnings in Expin Group. Earnings for the Industrial Services and Product Solutions segments increased by 6% and 10%, respectively. Earnings for the Consumer segment declined by 11% during the period as a result of weaker earnings in Plantasjen, where sales in the Norwegian market were negatively impacted by poor weather conditions in the second quarter. Operating profit was negatively affected by an impairment of goodwill in Plantasjen of SEK 246m. Net financial items amounted to SEK -467m (-573) and were negatively impacted in the year-earlier period by changes in exchange rates and the revaluation of synthetic options. The effective tax rate for the period, adjusted for items affecting comparability, was 21% (17). Financial performance January–September 2024 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 2024 2024 2024 2024 2023 2023 2023 2023 LTM LTM LTM LTM 2023 2023 2023 2023 2024 2024 2024 2024 2023 2023 2023 2023 LTM LTM LTM LTM 2023 2023 2023 2023 Industry 7,837 7,991 -2% 10,409 10,563 819 754 9% 1,028 963 Construction & Services 12,180 12,987 -6% 16,491 17,298 9 67 984 -2% 1,274 1,291 Consumer 4,378 4,810 -9% 5,455 5,888 269 301 -11% 103 136 Group costs -127 -121 -5% -151 -146 Elimination of internal sales -2 -0 -2 -0 Net sales and EBITA, adjusted Net sales and EBITA, adjusted Net sales and EBITA, adjusted Net sales and EBITA, adjusted 24,394 24,394 24,394 24,394 25,788 25,788 25,788 25,788 -5% 32,353 32,353 32,353 32,353 33,748 33,748 33,748 33,748 1,928 1,928 1,928 1,928 1,918 1,918 1,918 1,918 1% 2,254 2,254 2,254 2,254 2,244 2,244 2,244 2,244 Items affecting comparability -34 1,622 1,656 Amortisation and impairment of intangible assets in connection with company acquisitions -337 -114 neg -1,112 -890 Consolidated operating profit Consolidated operating profit Consolidated operating profit Consolidated operating profit 1,558 1,558 1,558 1,558 1,804 1,804 1,804 1,804 -14% 2,764 2,764 2,764 2,764 3,010 3,010 3,010 3,010 Finance net -467 -573 19% -631 -737 Profit before tax Profit before tax Profit before tax Profit before tax 1,091 1,091 1,091 1,091 1,231 1,231 1,231 1,231 -11% 2,133 2,133 2,133 2,133 2,273 2,273 2,273 2,273 Tax -285 -204 -40% -348 -267 Profit for the period Profit for the period Profit for the period Profit for the period 806 806 806 806 1,026 1,026 1,026 1,026 -22% 1,785 1,785 1,785 1,785 2,006 2,006 2,006 2,006 Net sales EBITA, adjusted Change Change Change Change % % % % Change Change Change Change % % % % 1,874 1,966 2,038 2,153 2,237 2,244 2,279 2,302 2,254 6.8% 6.6% 6.5% 6.5% 6.6% 6.7% 6.8% 7.0% 7.0 % Q3 2022 Q4 Q1 Q2 Q3 2023 Q4 Q1 Q2 Q3 2024 EBITA % Net sales 2023, SEKm 25,788 Structure, % 1% Currency, % -1% Organic growth, % -5% Total, % -5% 2024, SEKm 24,394 27.4 29.9 31.5 33.1 34.0 33.7 33.8 32.9 32.4 6.5% 8.9% 5.3% 5.0% 2.8% -0.7% 0.0% -2.6% -1.6% Q3 2022 Q4 Q1 Q2 Q3 2023 Q4 Q1 Q2 Q3 2024 Growth % ===== SIDA 6 ===== 5 Ratos Interim report Q3 2024 Industry The Industry business area consists of the Industrial Services and Product Solutions segments. Industrial Services consists of Aleido, Knightec, Semcon, Speed Group and TFS, while Product Solutions consists of Diab, HL Display, LEDiL and Oase Outdoors. See Note 5 for segment reporting. Net sales The business area’s net sales for the third quarter amounted to SEK 2,428m (2,465), down 2%, of which structural effects accounted for a positive 3%, corresponding to SEK 64m pertaining to add-on acquisitions in HL Display and LEDiL. Organic sales growth was negative for the quarter and amounted to -2%. In Diab, volumes in the wind segment continued to decline in the quarter, which had a negative impact on organic growth. In the Industrial Services segment, the technology consultancy companies displayed positive organic sales growth of 8%. Profit Adjusted EBITA for the business area amounted to SEK 235m (194) for the quarter, up 21% year on year. The adjusted EBITA margin was 9.7% (7.9). Both Industrial Services and Product Solutions reported healthy increases in profit for the quarter. Earnings in the Industrial Services segment were positively impacted by the fact that the current quarter contained one more working day than in the preceding year. All companies in the Product Solutions segment reported healthy earnings improvements. Financial performance Adjusted EBITA, LTM, SEKm Sales bridge, net sales Net sales, LTM, 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 SEKm SEKm SEKm SEKm 2024 2024 2024 2024 2023 2023 2023 2023 2024 2024 2024 2024 2023 2023 2023 2023 Rolling Rolling Rolling Rolling 2023 2023 2023 2023 Net sales 2,428 2,465 -2% 7,837 7,991 -2% 10,409 10,563 -1% EBITA, adjusted 235 194 21% 819 754 9% 1,028 963 7% whereof Industrial Services 104 80 31% 332 313 6% 442 423 4% whereof Product Solutions 131 114 15% 487 441 10% 586 540 8% EBITA %, adjusted 9.7% 7.9% 10.5% 9.4% 9.9% 9.1% EBITA 215 194 11% 799 754 6% 1,008 963 5% EBITA % 8.9% 7.9% 10.2% 9.4% 9.7% 9.1% Operating profit 196 175 12% 743 698 6% 933 889 5% Operating profit % 8.1% 7.1% 9.5% 8.7% 9.0% 8.4% Cash flow from operating activities 395 337 17% 958 977 -2% 1,355 1,374 -1% Return on capital employed, business area % 11.3% 10.3% 10.9% Average number of employees 6,785 Change Change Change Change % % % % Change Change Change Change % % % % Change Change Change Change % % % % 552 671 824 901 929 963 967 986 1,028 7.9% 8.6% 9.4% 9.3% 9.0% 9.1% 9.2% 9.4% 9.9% Q3 2022 Q4 Q1 Q2 Q3 2023 Q4 Q1 Q2 Q3 2024 EBITA % 7,014 7,755 8,754 9,641 10,279 10,563 10,548 10,446 10,409 2.9% 10.6% 12.9% 10.1% 6.6% 2.8% -0.1% -1.0% -0.4% Q3 2022 Q4 Q1 Q2 Q3 2023 Q4 Q1 Q2 Q3 2024 Growth % Q3 Q3 Q3 Q3 Q1-3 Q1-3 Q1-3 Q1-3 2024 2024 2024 2024 2024 2024 2024 2024 2023, SEKm 2,465 7,991 Structure, % 3% 3% Currency, % -2% -0% Organic growth, % -2% -5% Total, % -2% -2% 2024, SEKm 2,428 7,837 ===== SIDA 7 ===== 6 Ratos Interim report Q3 2024 Construction & Services The Construction & Services business area consists of the Critical Infrastructure and Construction segments. Critical Infrastructure consists of Aibel, Expin Group and Presis Infra, and Construction Services consists of airteam, HENT and SSEA Group. See Note 5 for segment reporting. Order status At the end of the quarter, the LTM order intake 1) for the business area amounted to SEK 18,326m (14,646) and the order backlog to SEK 29,580m (29,144). The order intake during the quarter amounted to SEK 1,401m (1,470) and was negatively impacted by currency effects totalling SEK 154m (-10%). Organic growth in order intake was positive in the quarter and amounted to 6%. Net sales Net sales in the business area for the third quarter amounted to SEK 3,873m (4,155), down -7% year on year. Organic sales growth was negative and amounted to -2%. Currency effects had a negative impact of SEK -180m (-4) on net sales, primarily as a result of the weak NOK. Strong organic sales growth was reported for the Critical Infrastructure segment, while the Construction segment delivered negative organic growth. Profit Adjusted EBITA for the business area amounted to SEK 317m (408) for the quarter, a decline of -22%, and the adjusted EBITA margin was 8.2% (9.8). In the Critical Infrastructure segment, Presis Infra reported strong earnings, while Expin Group posted weaker earnings compared with the year-earlier quarter. The decline in earnings in the Construction segment was attributable to the fact that the preceding year’s earnings were heavily impacted by the completion of projects. Financial performance 1) Aibel’s order intake and order backlog are not consolidated in the business area. See Note 5 for information about Aibel’s order intake and order backlog. Adjusted EBITA, LTM, SEKm Sales bridge, net sales Net sales, LTM, SEKm Order backlog and order intake, 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 SEKm SEKm SEKm SEKm 2024 2024 2024 2024 2023 2023 2023 2023 2024 2024 2024 2024 2023 2023 2023 2023 Rolling Rolling Rolling Rolling 2023 2023 2023 2023 Net sales 3,873 4,155 -7% 12,180 12,987 -6% 16,491 17,298 -5% EBITA, adjusted 317 408 -22% 967 984 -2% 1,274 1,291 -1% whereof Construction 183 225 -19% 494 500 -1% 773 779 -1% whereof Critical Infrastructure 135 183 -26% 473 485 -2% 501 512 -2% EBITA %, adjusted 8.2% 9.8% 7.9% 7.6% 7.7% 7.5% EBITA 339 408 -17% 989 984 0% 2,951 2,947 0% EBITA % 8.7% 9.8% 8.1% 7.6% 17.9% 17.0% Operating profit 328 392 -16% 957 929 3% 2,414 2,386 1% Operating profit % 8.5% 9.4% 7.9% 7.2% 14.6% 13.8% Cash flow from operating activities 500 798 -37% 648 1,779 -64% 1,097 2,228 -51% Return on capital employed, business area % 15.1% 19.7% 17.2% Order intake /one.sups⁾ 1,401 1,470 -5% 14,807 11,427 30% 18,326 14,947 23% Order backlog/one.sups⁾ 29,580 29,144 26,792 Average number of employees 7,464 Change Change Change Change % % % % Change Change Change Change % % % % Change Change Change Change % % % % 995 1,130 1,156 1,198 1,338 1,291 1,304 1,364 1,274 7.1% 7.2% 6.9% 6.9% 7.5% 7.5% 7.5% 8.1% 7.7% Q3 2022 Q4 Q1 Q2 Q3 2023 Q4 Q1 Q2 Q3 2024 EBITA % Q3 Q3 Q3 Q3 Q1-3 Q1-3 Q1-3 Q1-3 2024 2024 2024 2024 2024 2024 2024 2024 2023, SEKm 4,155 12,987 Currency, % -4% -2% Organic growth, % -2% -4% Total, % -7% -6% 2024, SEKm 3,873 12,180 13,996 15,730 16,629 17,400 17,767 17,298 17,308 16,773 16,491 11.3% 12.4% 5.7% 4.6% 2.1% -2.6% 0.1% -3.1% -1.7% Q3 2022 Q4 Q1 Q2 Q3 2023 Q4 Q1 Q2 Q3 2024 Growth % Order intake has been reported from January 1, 2022. The first period with 12 reported months is thus Q4 2022 34,697 34,915 30,231 31,498 29,144 26,792 27,916 32,686 29,580 21,069 19,991 18,545 14,646 14,947 14,755 18,396 18,326 Q3 2022 Q4 Q1 Q2 Q3 2023 Q4 Q1 Q2 Q3 2024 Order intake, LTM ===== SIDA 8 ===== 7 Ratos Interim report Q3 2024 Consumer The Consumer business area and segment consists of KVD and Plantasjen. See Note 5 for segment reporting. Net sales Net sales in the business area for the third quarter amounted to SEK 1,154m (1,351), down -15% year on year. Organic sales growth was negative and amounted to -11%, mainly due to Plantasjen, where sales from the preceding year were positively impacted by sales campaigns to reduce capital tied up in inventories. Plantasjen’s net sales for the period amounted to SEK 730m (904), down -19% year on year. Plantasjen was negatively impacted by a challenging market during the quarter. Profit Adjusted EBITA for the business area amounted to SEK -56m (-67) for the quarter, and the adjusted EBITA margin was -4.8% (-5.0). Plantasjen reported earnings of SEK -86m (-100) for the period. The earnings improvement was a result of the negative impact of sales campaigns on goods at lower margins in the preceding year and the positive impact on earnings in the current quarter from the ongoing cost-saving programme. Operating profit was negatively affected by an impairment of goodwill in Plantasjen of SEK 246m. Financial performance 1) See Note 5 for Plantasjen’s adjusted net sales and EBITA. EBITA, LTM, SEKm Sales bridge, net sales Net sales, LTM, 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 SEKm SEKm SEKm SEKm 2024 2024 2024 2024 2023 2023 2023 2023 2024 2024 2024 2024 2023 2023 2023 2023 Rolling Rolling Rolling Rolling 2023 2023 2023 2023 Net sales 1,154 1,351 -15% 4,378 4,810 -9% 5,455 5,888 -7% EBITA, adjusted -56 -67 17% 269 301 -11% 103 136 -24% EBITA %, adjusted -4.8% -5.0% 6.1% 6.3% 1.9% 2.3% EBITA -90 -67 -34% 234 301 -22% 68 136 -50% EBITA % -7.8% -5.0% 5.3% 6.3% 1.3% 2.3% Operating profit/loss -337 -68 neg -16 298 -105% -432 -119 neg Operating profit/loss % -29.2% -5.0% -0.4% 6.2% -7.9% -2.0% Cash flow from operating activities -89 -247 64% 585 747 -22% 585 746 -22% Return on capital employed, business area % -2.9% -1.1% -1.3% Average number of employees 1,638 Change Change Change Change % % % % Change Change Change Change % % % % Change Change Change Change % % % % 480 326 218 212 135 136 154 91 103 7.5% 5.1% 3.6% 3.5% 2.3% 2.3% 2.6% 1.6% 1.9% Q3 2022 Q4 Q1 Q2 Q3 2023 Q4 Q1 Q2 Q3 2024 EBITA % 6,424 6,392 6,090 6,011 5,938 5,888 5,901 5,652 5,455 0.7% -0.5% -4.7% -1.3% -1.2% -0.8% 0.2% -4.2% -3.5% Q3 2022 Q4 Q1 Q2 Q3 2023 Q4 Q1 Q2 Q3 2024 Growth % Q3 Q3 Q3 Q3 Q1-3 Q1-3 Q1-3 Q1-3 2024 2024 2024 2024 2024 2024 2024 2024 2023, SEKm 1,351 4,810 Currency, % -3% -1% Organic growth, % -11% -8% Total, % -15% -9% 2024, SEKm 1,154 4,378 ===== SIDA 9 ===== 8 Ratos Interim report Q3 2024 Financial overview, Ratos Group Cash flow Q3 Cash flow from operating activities amounted to SEK 783m (862). Cash flow from investing activities amounted to SEK -116m (-41) and cash flow from financing activities to SEK -305m (-887). Cash flow for the quarter amounted to SEK 362m (-67). The change in cash flow for the quarter was mainly due to changes in external loans of SEK 52m (-542) as well as divested non-current assets of SEK 2m (110). During the quarter, a new loan of SEK 3,300m was secured, while two existing loans of SEK 3,246 million were redeemed. Cash flow January–September Cash flow from operating activities amounted to SEK 2,042m (3,393). Cash flow from investing activities amounted to SEK -693m (-476) and cash flow from financing activities to SEK -1,566m (-3,516). Cash flow for the period amounted to SEK -216m (-599). The change in cash flow for the period was mainly due to changes in working capital of SEK -405m (864) and was negatively impacted by changes in working capital in Construction and changes in external loans of SEK -39m (-2,316). During the period, a new loan of SEK 3,300m was secured, while two existing loans of SEK 3,246 million were redeemed. Financial position and leverage The Group’s cash and cash equivalents at the end of the period amounted to SEK 2,121m (2,360 at 31 December 2023) and interest-bearing net debt excluding financial lease liabilities totalled SEK 2,755m (2,720 at 31 December 2023). The Group’s leverage excluding financial lease liabilities at the end of the period amounted to 0.7x (0.7x at 31 December 2023). The adjusted leverage as of 30 September 2024 amounted to 1.2x (1.1x at 31 December 2023) after a reversal of impairment pertaining to the holding in Aibel that was carried out in December 2023 and the reconstruction of Plantasjen and the restructuring of Aleido, Semcon and Expin Group in the third quarter of 2024. The Group’s interest- bearing net debt including financial lease liabilities totalled SEK 7,550m (8,118 at 31 December 2023). The Group’s leverage including financial lease liabilities at the end of the period amounted to 1.4x (1.5x at 31 December 2023). The total translation effect of currency tied to interest-bearing liabilities amounted to SEK -23, of which SEK 16 related to liabilities to credit institutions and SEK -39 to financial lease liabilities. At the end of the period, the Group’s interest-bearing liabilities to credit institutions amounted to SEK 4,511m (4,509 at 31 December 2023). Net financial items Q3 Net financial items amounted to SEK -158m (-172). The preceding year’s net financial items were negatively impacted by the revaluation of synthetic options. Net financial items January–September Net financial items amounted to SEK -467m (-573). Net financial items in the year-earlier period were negatively impacted by changes in exchange rates and the revaluation of synthetic options. Tax Q3 The tax expense for the Group amounted to SEK -55m (-22) and profit before tax to SEK 1m (309). The effective tax rate for the quarter was negative (7%). Adjusted for the impairment of goodwill (SEK -246m) and items affecting comparability (SEK -34m), the effective tax rate was 20%. The higher effective tax rate was mainly attributable to a lower share of capitalised loss carry-forwards in the current quarter. Tax January–September The tax expense for the Group amounted to SEK -285m (-204) and profit before tax to SEK 1,091m (1,231). The effective tax rate for the period was 26% (17). Adjusted for the impairment of goodwill (SEK -246) and items affecting comparability (SEK -34), the effective tax rate was 21%, which is in line with the Group’s nominal tax rate of approximately 20%. Ratos’s equity At 30 September 2024, Ratos’s equity (attributable to owners of the parent) amounted to SEK 12,234m (12,314 at 31 December 2023), corresponding to SEK 37 (38) per share outstanding. Parent company The parent company’s operating loss amounted to SEK -127m (-119) for the January–September period. The parent company’s loss before tax amounted to SEK -110m (69). Cash and cash equivalents in the parent company amounted to SEK 1,037m (876 at 31 December 2023). The parent company has a related party relationship with its Group companies. For more information, refer to Note 28 in the 2023 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 period amounted to SEK 1.47 (2.28) before dilution and to SEK 1.47 (2.28) after dilution. The closing price for Ratos’s Class B shares on 30 September 2024 was SEK 34.66. The total return on Class B shares in the first quarter amounted to -0.3%, compared with the performance for the SIX Return Index, which was 15.2%. Number of shares During the period, 869,200 new Class B shares were issued in connection with the exercise/conversion of warrants and a convertible debenture. At 30 September 2024, the total number of shares and shares outstanding in Ratos (Class A and B shares) amounted to 327,385,688 and the number of votes to 108,911,923. 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 26 March 2024. In total, 650,000 warrants and 1,070,000 convertibles were issued. ===== SIDA 10 ===== 9 Ratos Interim report Q3 2024 Significant events during and after the end of the quarter On 22 August, Plantasjen filed for reconstruction for selected legal entities in Sweden, Norway and Finland. In September, Plantasjen’s Finnish operations were declared bankrupt as a result of failing to agree on rent reductions that would allow the company to achieve profitability under the prevailing market conditions. The primary objectives of the reconstruction are to downsize the store network, optimise lease contracts, and rightsize the organisation. These actions were necessary to transform Plantasjen into a financially viable business going forward. The reconstruction decision resulted in an impairment of goodwill of SEK 246m being carried out in the quarter. The merger of the Ratos companies Knightec and Semcon commenced in the third quarter and is expected to be completed in early 2025. Following the merger, the new company will hold a leading position in the northern Europe within product development and digital services. During the quarter, Expin Group’s operations were restructured to focus on the electrification of rail infrastructure. On 1 October, HL Display acquired Kost Klip Manufacturing Ltd., a Canadian manufacturer of in-store communication and shelf management solutions for the retail industry. This acquisition will expand HL Display’s footprint in North America and further strengthen its position as a leading supplier of in-store merchandising and communication solutions. Interest-bearing net debt and leverage 1) , SEKm Diluted earnings per share, SEK 1) Excluding financial lease liabilities 1,824 4,798 4,826 3,750 3,254 2,720 3,346 3,091 2,755 0.9x 2.5x 2.2x 1.6x 1.3x 0.7x 0.8x 0.7x 0.7x Q3 2022 Q4 Q1 Q2 Q3 2023 Q4 Q1 Q2 Q3 2024 Leverage 2.11 2.17 8.10 1.68 3.72 2.92 -2.00 2019 2020 2021 2022 2023 2024 R12 ===== SIDA 11 ===== 10 Ratos Interim report Q3 2024 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 2024 2024 2024 2024 2023 2023 2023 2023 2024 2024 2024 2024 2023 2023 2023 2023 2023 2023 2023 2023 Net sales 7,454 7,971 24,394 25,788 33,748 Other operating income 38 106 93 173 223 Cost of goods and services sold -4,642 -4,496 -13,769 -14,513 -19,102 Employee benefit costs -1,987 -2,027 -6,453 -6,396 -8,657 Depreciation/amortisation and impairment of property, plant and equipment and intangible assets and right-of-use assets -600 -415 -1,375 -1,174 -2,298 Other external costs -257 -747 -1,692 -2,314 -2,997 Capital gain/loss from Group companies 63 63 3 Reversal of a previous write-down for investments recognised according to the equity method 1,656 Share of profit/loss from investments recognised according to the equity method 88 89 297 239 433 Operating profit Operating profit Operating profit Operating profit 159 159 159 159 481 481 481 481 1,558 1,558 1,558 1,558 1,804 1,804 1,804 1,804 3,010 3,010 3,010 3,010 Net financial items/one.sups⁾ -158 -172 -467 -573 -737 Profit before tax Profit before tax Profit before tax Profit before tax 11 11 309 309 309 309 1,091 1,091 1,091 1,091 1,231 1,231 1,231 1,231 2,273 2,273 2,273 2,273 Income tax -55 -22 -285 -204 -267 Profit/loss for the period Profit/loss for the period Profit/loss for the period Profit/loss for the period -54 -54 -54 -54 287 287 287 287 806 806 806 806 1,026 1,026 1,026 1,026 2,006 2,006 2,006 2,006 Profit/loss for the period attributable to: Owners of the parent -146 184 482 743 1,218 Non-controlling interests 92 103 323 284 788 Earnings per share, SEK - basic earnings per share -0.45 0.57 1.47 2.28 3.73 - diluted earnings per share -0.45 0.57 1.47 2.28 3.72 /one.sups⁾ See page 22 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 2024 2024 2024 2024 2023 2023 2023 2023 2024 2024 2024 2024 2023 2023 2023 2023 2023 2023 2023 2023 Profit/loss for the period Profit/loss for the period Profit/loss for the period Profit/loss for the period -54 -54 -54 -54 287 287 287 287 806 806 806 806 1,026 1,026 1,026 1,026 2,006 2,006 2,006 2,006 Items that will not be reclassified to profit or loss: Remeasurement of defined benefit pension obligations, net 0 8 -1 -1 -25 Tax attributable to items that will not be reclassified to profit or loss -2 -2 1 00 00 7 7 77 -1 -1 -1 -1 -2 -2 -2 -2 -24 -24 -24 -24 Items that may be reclassified subsequently to profit or loss: Translation differences for the period -200 -65 -68 -47 -432 Change in hedging reserve for the period 94 115 109 -59 -53 Tax attributable to items that may be reclassified subsequently to profit or loss 2 -1 0 -5 -2 -104 -104 -104 -104 49 49 49 49 41 41 41 41 -112 -112 -112 -112 -487 -487 -487 -487 -104 49 41 -112 -487 Other comprehensive income for the period Other comprehensive income for the period Other comprehensive income for the period Other comprehensive income for the period -104 -104 -104 -104 55 55 55 55 40 40 40 40 -114 -114 -114 -114 -510 -510 -510 -510 -104 55 40 -114 -510 Total comprehensive income for the period Total comprehensive income for the period Total comprehensive income for the period Total comprehensive income for the period -158 -158 -158 -158 343 343 343 343 846 846 846 846 912 912 912 912 1,496 1,496 1,496 1,496 -158 343 846 912 1,496 Total comprehensive income for the period attributable to: Owners of the parent -233 200 531 680 828 Non-controlling interest 74 143 315 233 667 ===== SIDA 12 ===== 11 Ratos Interim report Q3 2024 Summary consolidated statement of financial position SEKm SEKm SEKm SEKm 2024-09-30 2024-09-30 2024-09-30 2024-09-30 2023-09-30 2023-09-30 2023-09-30 2023-09-30 2023-12-31 2023-12-31 2023-12-31 2023-12-31 ASSETS Non-current assets Non-current assets Non-current assets Non-current assets Goodwill 14,015 14,779 14,047 Other intangible non-current assets 1,799 2,044 1,931 Property, plant and equipment 1,582 1,686 1,617 Right-of-use assets 4,449 5,031 4,816 Financial assets 3,321 1,640 3,307 Deferred tax assets 553 467 477 Total non-current assets Total non-current assets Total non-current assets Total non-current assets 25,719 25,719 25,719 25,719 25,647 25,647 25,647 25,647 26,195 26,195 26,195 26,195 Current assets Current assets Current assets Current assets Inventories 1,839 2,135 1,868 Accounts receivable 2,915 3,166 3,277 Current receivables 2,229 2,653 2,430 Cash and cash equivalents 2,121 1,895 2,360 Total current assets Total current assets Total current assets Total current assets 9,105 9,105 9,105 9,105 9,848 9,848 9,848 9,848 9,935 9,935 9,935 9,935 Total assets Total assets Total assets Total assets 34,824 34,824 34,824 34,824 35,495 35,495 35,495 35,495 36,129 36,129 36,129 36,129 EQUITY AND LIABILITIES Equity including non-controlling interests Equity including non-controlling interests Equity including non-controlling interests Equity including non-controlling interests 14,592 14,592 14,592 14,592 13,992 13,992 13,992 13,992 14,451 14,451 14,451 14,451 Non-current liabilities Non-current liabilities Non-current liabilities Non-current liabilities Interest-bearing liabilities 8,267 9,274 9,141 Non-interest bearing liabilities 1,068 1,928 1,875 Pension provisions 66 53 65 Other provisions 41 45 45 Deferred tax liabilities 898 833 801 Total non-current liabilities Total non-current liabilities Total non-current liabilities Total non-current liabilities 10,340 10,340 10,340 10,340 12,133 12,133 12,133 12,133 11,927 11,927 11,927 11,927 Current liabilities Current liabilities Current liabilities Current liabilities Interest-bearing liabilities 1,412 1,432 1,306 Non-interest bearing liabilities 7,818 7,244 7,936 Provisions 662 694 509 Total current liabilities Total current liabilities Total current liabilities Total current liabilities 9,891 9,891 9,891 9,891 9,371 9,371 9,371 9,371 9,751 9,751 9,751 9,751 Total liabilities Total liabilities Total liabilities Total liabilities 20,231 20,231 20,231 20,231 21,503 21,503 21,503 21,503 21,678 21,678 21,678 21,678 Total equity and liabilities Total equity and liabilities Total equity and liabilities Total equity and liabilities 34,824 34,824 34,824 34,824 35,495 35,495 35,495 35,495 36,129 36,129 36,129 36,129 ===== SIDA 13 ===== 12 Ratos Interim report Q3 2024 Summary statement of changes in consolidated equity SEKm SEKm SEKm SEKm Owners Owners Owners Owners of the of the of the of the parent parent parent parent Non- Non- Non- Non- controll controll controll controll ing ing ing ing 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- controll controll controll controll ing ing ing ing 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- controll controll controll controll ing ing ing ing interest interest interest interest Total Total Total Total equity equity equity equity Opening equity Opening equity Opening equity Opening equity 12,314 12,314 12,314 12,314 2,137 2,137 2,137 2,137 14,451 14,451 14,451 14,451 12,289 12,289 12,289 12,289 1,499 1,499 1,499 1,499 13,788 13,788 13,788 13,788 12,289 12,289 12,289 12,289 1,499 1,499 1,499 1,499 13,788 13,788 13,788 13,788 Total comprehensive income for the period 531 315 846 680 233 912 828 667 1,496 Dividends -409 -280 -689 -274 -113 -386 -274 -177 -451 Non-controlling interests’ share of capital contribution and new issue 24 24 0 0 1 1 Conversion of options/convertible loan to shares 21 21 3 3 15 15 The value of the conversion option of the convertible debentures 4 4 3 3 3 3 Option premiums 6 6 6 6 6 6 Put options, future acquisitions from non- controlling interests -34 -38 -72 -305 34 -272 -549 200 -349 Acquisition of shares in subsidiaries from non- controlling interests -39 -11 -49 -6 -64 -70 -6 -64 -70 Disposal of shares in subsidiaries to non- controlling interests -4 55 51 3 4 7 2 11 13 Non-controlling interests share of dividends from associated companies -156 156 Closing equity Closing equity Closing equity Closing equity 12,234 12,234 12,234 12,234 2,358 2,358 2,358 2,358 14,592 14,592 14,592 14,592 12,399 12,399 12,399 12,399 1,593 1,593 1,593 1,593 13,992 13,992 13,992 13,992 12,314 12,314 12,314 12,314 2,137 2,137 2,137 2,137 14,451 14,451 14,451 14,451 2024-09-30 2024-09-30 2024-09-30 2024-09-30 2023-09-30 2023-09-30 2023-09-30 2023-09-30 2023-12-31 2023-12-31 2023-12-31 2023-12-31 ===== SIDA 14 ===== 13 Ratos Interim report Q3 2024 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 2024 2024 2024 2024 2023 2023 2023 2023 2024 2024 2024 2024 2023 2023 2023 2023 2023 2023 2023 2023 Operating activities Operating activities Operating activities Operating activities Operating profit 159 481 1,558 1,804 3,010 Adjustment for non-cash items 570 349 1,238 1,238 565 729 830 2,796 3,042 3,575 Received dividends from associated companies 2 318 122 122 Interest and financial items, net -105 -136 -412 -435 -552 Income tax paid -50 5 -255 -200 -316 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 576 576 576 576 699 699 699 699 2,448 2,448 2,448 2,448 2,529 2,529 2,529 2,529 2,829 2,829 2,829 2,829 Cash flow from change in working capital Increase (-)/Decrease (+) in inventories 155 222 30 333 571 Increase (-)/Decrease (+) in operating receivables 75 190 501 563 25 Increase (+)/Decrease (-) in operating liabilities -24 -249 -936 -32 850 Cash flow from operating activities Cash flow from operating activities Cash flow from operating activities Cash flow from operating activities 783 783 783 783 862 862 862 862 2,042 2,042 2,042 2,042 3,393 3,393 3,393 3,393 4,275 4,275 4,275 4,275 Investing activities Investing activities Investing activities Investing activities Acquisition, group companies -24 -74 -412 -312 -333 Disposal, group companies -25 -25 -2 Investments and disposal, intangible assets/property, plant and equipment -70 33 -223 -162 -231 Investments and disposal, financial assets 3 -0 -33 -2 24 Cash flow from investing activities Cash flow from investing activities Cash flow from investing activities Cash flow from investing activities -116 -116 -116 -116 -41 -41 -41 -41 -693 -693 -693 -693 -476 -476 -476 -476 -542 -542 -542 -542 Financing activities Financing activities Financing activities Financing activities Non-controlling interests' share of issue/capital contribution 24 24 0 1 Transfer of treasury shares -2 -2 Transactions regarding options -11 -21 -0 -80 Acquisition and disposal of shares in subsidiaries from non-controlling interests -1 -0 3 -27 -24 Dividends paid -409 -274 -274 Dividends paid, non-controlling interests -26 -1 -278 -129 -194 Borrowings 3,315 6 3,387 1,835 1,884 Amortisation of loans -3,263 -548 -3,381 -4,114 -4,141 Amortisation of financial lease liabilitities -341 -345 -889 -806 -970 Cash flow from financing activities Cash flow from financing activities Cash flow from financing activities Cash flow from financing activities -305 -305 -305 -305 -887 -887 -887 -887 -1,566 -1,566 -1,566 -1,566 -3,516 -3,516 -3,516 -3,516 -3,798 -3,798 -3,798 -3,798 Cash flow for the period Cash flow for the period Cash flow for the period Cash flow for the period 362 362 362 362 -67 -67 -67 -67 -216 -216 -216 -216 -599 -599 -599 -599 -65 -65 -65 -65 Cash and cash equivalents at the beginning of the period 1,819 1,987 2,360 2,532 2,532 Exchange differences in cash and cash equivalents -60 -26 -23 -39 -108 Cash and cash equivalents at the end of the period 2,121 1,895 2,121 1,895 2,360 ===== SIDA 15 ===== 14 Ratos Interim report Q3 2024 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 2024 2024 2024 2024 2023 2023 2023 2023 2024 2024 2024 2024 2023 2023 2023 2023 2023 2023 2023 2023 Other operating income 0 0 0 0 9 Administrative expenses -28 -18 -127 -119 -151 Depreciation of property, plant and equipment -0 -0 -1 -0 -1 Operating profit/loss Operating profit/loss Operating profit/loss Operating profit/loss -28 -28 -28 -28 -18 -18 -18 -18 -127 -127 -127 -127 -119 -119 -119 -119 -142 -142 -142 -142 Dividends from group companies 192 192 Net financial items/one.sups⁾ 2 -1 18 -4 9 Profit/loss after financial items Profit/loss after financial items Profit/loss after financial items Profit/loss after financial items -26 -26 -26 -26 -19 -19 -19 -19 -110 -110 -110 -110 69 69 69 69 59 59 59 59 Group contribution, recieved 158 Profit/loss before tax Profit/loss before tax Profit/loss before tax Profit/loss before tax -26 -26 -26 -26 -19 -19 -19 -19 -110 -110 -110 -110 69 69 69 69 217 217 217 217 Income tax 0 25 48 65 75 Profit/loss for the period Profit/loss for the period Profit/loss for the period Profit/loss for the period -26 -26 -26 -26 7 7 77 -62 -62 -62 -62 134 134 134 134 292 292 292 292 /one.sups⁾ See page 22 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 2024 2024 2024 2024 2023 2023 2023 2023 2024 2024 2024 2024 2023 2023 2023 2023 2023 2023 2023 2023 Profit/loss for the period Profit/loss for the period Profit/loss for the period Profit/loss for the period -26 -26 -26 -26 7 7 77 -62 -62 -62 -62 134 134 134 134 292 292 292 292 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 -26 -26 -26 -26 7 7 77 -62 -62 -62 -62 134 134 134 134 292 292 292 292 ===== SIDA 16 ===== 15 Ratos Interim report Q3 2024 Summary parent company balance sheet Summary parent company statement of changes in equity SEKm SEKm SEKm SEKm 2024-09-30 2024-09-30 2024-09-30 2024-09-30 2023-09-30 2023-09-30 2023-09-30 2023-09-30 2023-12-31 2023-12-31 2023-12-31 2023-12-31 ASSETS Non-current assets Non-current assets Non-current assets Non-current assets Property, plant and equipment 4 4 4 Financial assets 10,794 10,736 10,736 Receivables from group companies 3,257 4,124 3,919 Deferred tax assets 252 195 205 Total non-current assets Total non-current assets Total non-current assets Total non-current assets 14,306 14,306 14,306 14,306 15,058 15,058 15,058 15,058 14,864 14,864 14,864 14,864 Current assets Current assets Current assets Current assets Current receivables 32 37 38 Receivables from group companies 2,935 2,505 2,975 Cash and cash equivalents 1,037 1,164 876 Total current assets Total current assets Total current assets Total current assets 4,004 4,004 4,004 4,004 3,706 3,706 3,706 3,706 3,889 3,889 3,889 3,889 Total assets Total assets Total assets Total assets 18,310 18,310 18,310 18,310 18,764 18,764 18,764 18,764 18,752 18,752 18,752 18,752 EQUITY AND LIABILITIES Equity Equity Equity Equity 9,577 9,577 9,577 9,577 9,847 9,847 9,847 9,847 10,016 10,016 10,016 10,016 Non-current liablities Non-current liablities Non-current liablities Non-current liablities Interest-bearing liabilities, group companies 75 150 Interest-bearing liabilities 4,131 4,453 4,423 Convertible debentures 111 110 110 Deferred tax liabilities 4 3 3 Total non-current liabilities Total non-current liabilities Total non-current liabilities Total non-current liabilities 4,246 4,246 4,246 4,246 4,641 4,641 4,641 4,641 4,687 4,687 4,687 4,687 Current provisions Current provisions Current provisions Current provisions 26 26 26 26 21 21 21 21 16 16 16 16 Current liabilities Current liabilities Current liabilities Current liabilities Interest-bearing liabilities, group companies 3,980 4,100 3,940 Interest-bearing liabilities 408 104 24 Non-interest bearing liabilities, group companies 30 0 0 Non-interest bearing liabilities 43 50 69 Total current liabilities Total current liabilities Total current liabilities Total current liabilities 4,461 4,461 4,461 4,461 4,254 4,254 4,254 4,254 4,033 4,033 4,033 4,033 Total equity and liabilities Total equity and liabilities Total equity and liabilities Total equity and liabilities 18,310 18,310 18,310 18,310 18,764 18,764 18,764 18,764 18,752 18,752 18,752 18,752 SEKm SEKm SEKm SEKm 2024-09-30 2024-09-30 2024-09-30 2024-09-30 2023-09-30 2023-09-30 2023-09-30 2023-09-30 2023-12-31 2023-12-31 2023-12-31 2023-12-31 Opening equity Opening equity Opening equity Opening equity 10,016 10,016 10,016 10,016 9,975 9,975 9,975 9,975 9,975 9,975 9,975 9,975 Comprehensive income for the period -62 134 292 Dividends -409 -274 -274 Conversion of options/convertible loan to shares 21 3 15 The value of the conversion option of the convertible debentures 5 4 4 Deferred tax, conversion option -1 -1 -1 Option premiums 6 6 6 Closing equity Closing equity Closing equity Closing equity 9,577 9,577 9,577 9,577 9,847 9,847 9,847 9,847 10,016 10,016 10,016 10,016 ===== SIDA 17 ===== 16 Ratos Interim report Q3 2024 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. From the first quarter of 2024, Ratos has changed its segment reporting to better reflect the Group’s business focus. The new segments are Industrial Services, Product Solutions, Construction, Critical Infrastructure and Consumer. They comprise the Group’s business areas, which are presented on pages 5–7. The change does not entail any restatement of previous financial reports, but rather provides additional information about the new segments that reflects how operations are monitored. In all other respects, the reporting and measurement principles are unchanged compared with those applied in Ratos’s 2023 Annual Report. The new and revised IFRS standards which came into force in 2024 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 Operations at Ratos Group include inherent risks attributable to both the parent company and companies in the business areas. 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. As a result of the reconstruction of Plantasjen, the company’s recoverable amount was tested in the third quarter of 2024. Plantasjen has decided to close all of its stores in Finland and selected stores in Norway and Sweden, which will result in a significant reduction in sales in the years ahead. This gave rise to an impairment requirement, and an impairment loss of SEK 246m was recognised in the third quarter. Due to the impairment of goodwill in Plantasjen, the carrying amount is in line with the recoverable amount and is therefore sensitive to changes in material assumptions. 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 2023 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 2024, the net value of derivatives (level two) amounted to SEK 2m (-14 at 31 December 2023), of which SEK 9m (5 at 31 December 2023) was recognised as an asset and SEK 7m (18 at 31 December 2023) as a liability. In the statement of financial position at 30 September 2024, the total value of financial instruments measured at fair value in accordance with level three was SEK 2,111m (2,158 at 31 December 2023). The change is presented in the table below. Change, level 3 Change, level 3 Change, level 3 Change, level 3 SEKm SEKm SEKm SEKm 2024-09-30 2024-09-30 2024-09-30 2024-09-30 2023-12-31 2023-12-31 2023-12-31 2023-12-31 2024-09-30 2024-09-30 2024-09-30 2024-09-30 2023-12-31 2023-12-31 2023-12-31 2023-12-31 2024-09-30 2024-09-30 2024-09-30 2024-09-30 2023-12-31 2023-12-31 2023-12-31 2023-12-31 Opening balance 149 153 1,869 1,669 141 236 Recognised in comprehensive income 29 76 -10 -63 -3 23 Recognised against equity 71 263 Newly issued/subsequent expenditure 5 69 Acquisitions, Group companies Settlements -43 -80 -97 -187 Closing balance Closing balance Closing balance Closing balance 135 135 135 135 149 149 149 149 1,930 1,930 1,930 1,930 1,869 1,869 1,869 1,869 46 46 46 46 141 141 141 141 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 2024 Note 4 Acquired and divested companies Acquisitions within business areas In March, HL Display completed the acquisition of pr trading- Flekota A/S (pr trading), which had been its distribution partner in Denmark. pr trading delivers standard and customised display and store solutions to Danish grocery retailers as well as specialist retailers and brand manufacturers. The company has 38 employees and sales of approximately DKK 160m. In June, LEDiL completed the acquisition of Ingemann Components A/S. The company is a Denmark-based, northern European leader in light output, luminaire efficiency, light distribution, and glare control for large-scale optics. The company has approximately DKK 90m in annual sales. In the third quarter, two minor acquisitions were carried out in HL Display and Speed Group. The preliminary acquisition analyses for the add-on acquisitions carried out during the period are presented to the right. Divestments within business areas In September, Plantasjen filed for bankruptcy for its Finnish subsidiary as a result of the ongoing reconstruction proceedings. Plantasjen reported capital gains totalling SEK 27m as a result of the bankruptcy in Finland. In September, Expin Group filed for bankruptcy for three subsidiaries as a result of the ongoing restructuring and divested its Norwegian subsidiary to employees in the company. Expin Group reported capital gains totalling SEK 35m as a result of the divestments. The impact on the consolidated statement of financial position and statement of cash flows as a result of the divestments carried out during the period are presented to the right. SEKm SEKm SEKm SEKm Intangible assets 1 Property, plant and equipment 17 Right-of-use assets 8 Financial assets 2 Trade receivables 74 Current assets 43 Cash and cash equivalents 5 Non-controlling interest -0 Deferred tax liability -0 Current liabilities -92 Net identifiable assets and liabilities Net identifiable assets and liabilities Net identifiable assets and liabilities Net identifiable assets and liabilities 58 58 58 58 Goodwill 266 Purchase price Purchase price Purchase price Purchase price 324 324 324 324 of which, paid in cash 319 of which, contingent consideration 5 Cash in the acquired companies -5 Paid contingent consideration 97 Effect on Group´s cash and cash equivalents Effect on Group´s cash and cash equivalents Effect on Group´s cash and cash equivalents Effect on Group´s cash and cash equivalents 412 412 412 412 SEKm SEKm SEKm SEKm Intangible assets 0 Property, plant and equipment 21 Right-of-use assets 342 Financial assets 3 Trade receivables 79 Current assets 189 Cash and cash equivalents 25 Non-current liabilities and provisions -423 Current liabilities and provisions -313 Net assets and liabilities Net assets and liabilities Net assets and liabilities Net assets and liabilities -76 -76 -76 -76 Sales price 0 Cash in the divested companies -25 Effect on Group´s cash and cash equivalents Effect on Group´s cash and cash equivalents Effect on Group´s cash and cash equivalents Effect on Group´s cash and cash equivalents -25 -25 -25 -25 ===== SIDA 19 ===== 18 Ratos Interim report Q3 2024 Note 5 Segment reporting The Industry business area consists of two segments, Industrial Services and Product Solutions, that develop and sell their own products. The companies in this segment are active in markets with strong underlying growth such as technology consultancy services, energy-efficient lighting, sustainable lightweight structures and renewable energy, modern grocery retail, pharmacology and aftermarket solutions. Industrial Services consists of Aleido, Knightec, Semcon, Speed Group and TFS, while Product Solutions consists of Diab, HL Display, LEDiL and Oase Outdoors. The Construction & Services business area’s focus is on building and maintaining a sustainable society. The business area is divided into two segments – Construction, which focuses on community building (such as hospitals, schools and commercial buildings), and Critical Infrastructure, with a service offering primarily comprising maintenance of infrastructure within railway, road and energy solutions. Critical Infrastructure consists of Aibel, Expin Group and Presis Infra, and Construction Services consists of airteam, HENT and SSEA Group. Consumer consists of KVD and Plantasjen. 1) Ratos Group’s adjusted EBITA margin also includes the parent company and central companies Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 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 Net sales, SEKm Net sales, SEKm Net sales, SEKm Net sales, SEKm 2024 2024 2024 2024 2023 2023 2023 2023 2024 2024 2024 2024 2023 2023 2023 2023 LTM LTM LTM LTM 2023 2023 2023 2023 Industrial Services 1,233 1,279 3,987 4,183 5,403 5,598 Product Solutions 1,203 1,190 3,880 3,815 5,046 4,981 Elimination of internal net sales -8 -4 -30 -7 -39 -17 Industry Industry Industry Industry 2,428 2,428 2,428 2,428 2,465 2,465 2,465 2,465 7,837 7,837 7,837 7,837 7,991 7,991 7,991 7,991 10,409 10,409 10,409 10,409 10,563 10,563 10,563 10,563 Construction 2,858 3,318 9,020 10,456 12,246 13,682 Critical Infrastructure 1,015 838 3,160 2,531 4,245 3,616 Construction & Services Construction & Services Construction & Services Construction & Services 3,873 3,873 3,873 3,873 4,155 4,155 4,155 4,155 12,180 12,180 12,180 12,180 12,987 12,987 12,987 12,987 16,491 16,491 16,491 16,491 17,298 17,298 17,298 17,298 Consumer Consumer Consumer Consumer 1,154 1,154 1,154 1,154 1,351 1,351 1,351 1,351 4,378 4,378 4,378 4,378 4,810 4,810 4,810 4,810 5,455 5,455 5,455 5,455 5,888 5,888 5,888 5,888 - whereof Plantasjen 730 904 3,210 3,579 3,912 4,281 Elimination of internal net sales -0 -2 -0 -2 -0 Ratos group Ratos group Ratos group Ratos group 7,454 7,454 7,454 7,454 7,971 7,971 7,971 7,971 24,394 24,394 24,394 24,394 25,788 25,788 25,788 25,788 32,353 32,353 32,353 32,353 33,748 33,748 33,748 33,748 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 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 EBITA, adjusted, SEKm EBITA, adjusted, SEKm EBITA, adjusted, SEKm EBITA, adjusted, SEKm 2024 2024 2024 2024 2023 2023 2023 2023 2024 2024 2024 2024 2023 2023 2023 2023 LTM LTM LTM LTM 2023 2023 2023 2023 Industrial Services 104 80 332 313 442 423 Product Solutions 131 114 487 441 586 540 Industry Industry Industry Industry 235 235 235 235 194 194 194 194 819 819 819 819 754 754 754 754 1,028 1,028 1,028 1,028 963 963 963 963 Construction 183 225 494 500 773 779 Critical Infrastructure 135 183 473 485 501 512 Construction & Services Construction & Services Construction & Services Construction & Services 317 317 317 317 408 408 408 408 967 967 967 967 984 984 984 984 1,274 1,274 1,274 1,274 1,291 1,291 1,291 1,291 Consumer Consumer Consumer Consumer -56 -56 -56 -56 -67 -67 -67 -67 269 269 269 269 301 301 301 301 103 103 103 103 136 136 136 136 - whereof Plantasjen -86 -100 194 229 6 40 Group costs -28 -18 -127 -121 -151 -146 Ratos group Ratos group Ratos group Ratos group 469 469 469 469 517 517 517 517 1,928 1,928 1,928 1,928 1,918 1,918 1,918 1,918 2,254 2,254 2,254 2,254 2,244 2,244 2,244 2,244 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 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 EBITA %, adjusted EBITA %, adjusted EBITA %, adjusted EBITA %, adjusted 2024 2024 2024 2024 2023 2023 2023 2023 2024 2024 2024 2024 2023 2023 2023 2023 LTM LTM LTM LTM 2023 2023 2023 2023 Industrial Services 8.4% 6.2% 8.3% 7.5% 8.2% 7.6% Product Solutions 10.9% 9.6% 12.6% 11.6% 11.6% 10.8% Industry Industry Industry Industry 9.7% 9.7% 9.7% 9.7% 7.9% 7.9% 7.9% 7.9% 10.5% 10.5% 10.5% 10.5% 9.4% 9.4% 9.4% 9.4% 9.9% 9.9% 9.9% 9.9% 9.1% 9.1% 9.1% 9.1% Construction 6.4% 6.8% 5.5% 4.8% 6.3% 5.7% Critical Infrastructure 13.3% 21.8% 15.0% 19.1% 11.8% 14.2% Construction & Services Construction & Services Construction & Services Construction & Services 8.2% 8.2% 8.2% 8.2% 9.8% 9.8% 9.8% 9.8% 7.9% 7.9% 7.9% 7.9% 7.6% 7.6% 7.6% 7.6% 7.7% 7.7% 7.7% 7.7% 7.5% 7.5% 7.5% 7.5% Consumer Consumer Consumer Consumer -4.8% -4.8% -4.8% -4.8% -5.0% -5.0% -5.0% -5.0% 6.1% 6.1% 6.1% 6.1% 6.3% 6.3% 6.3% 6.3% 1.9% 1.9% 1.9% 1.9% 2.3% 2.3% 2.3% 2.3% Ratos group Ratos group Ratos group Ratos group/one.sups/one.sups /one.sups/one.sups⁾ 6.3% 6.3% 6.3% 6.3% 6.5% 6.5% 6.5% 6.5% 7.9% 7.9% 7.9% 7.9% 7.4% 7.4% 7.4% 7.4% 7.0% 7.0% 7.0% 7.0% 6.7% 6.7% 6.7% 6.7% ===== SIDA 20 ===== 19 Ratos Interim report Q3 2024 Note 5, cont. 1) Ratos Group’s return on capital employed also includes the parent company and central companies. 2) Aibel’s order intake and order backlog are not consolidated in the Critical Infrastructure segment. Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 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 Operating profit/loss, SEKm Operating profit/loss, SEKm Operating profit/loss, SEKm Operating profit/loss, SEKm 2024 2024 2024 2024 2023 2023 2023 2023 2024 2024 2024 2024 2023 2023 2023 2023 LTM LTM LTM LTM 2023 2023 2023 2023 Industrial Services 65 61 257 257 347 349 Product Solutions 131 114 487 441 586 540 Industry Industry Industry Industry 196 196 196 196 175 175 175 175 743 743 743 743 698 698 698 698 933 933 933 933 889 889 889 889 Construction 183 225 494 491 774 770 Critical Infrastructure 145 167 463 438 1,640 1,616 Construction & Services Construction & Services Construction & Services Construction & Services 328 328 328 328 392 392 392 392 957 957 957 957 929 929 929 929 2,414 2,414 2,414 2,414 2,386 2,386 2,386 2,386 Consumer Consumer Consumer Consumer -337 -337 -337 -337 -68 -68 -68 -68 -16 -16 -16 -16 298 298 298 298 -432 -432 -432 -432 -119 -119 -119 -119 Group costs -28 -18 -127 -121 -151 -146 Ratos group Ratos group Ratos group Ratos group 159 159 159 159 481 481 481 481 1,558 1,558 1,558 1,558 1,804 1,804 1,804 1,804 2,764 2,764 2,764 2,764 3,010 3,010 3,010 3,010 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 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 Cash flow from operating activities, SEKm Cash flow from operating activities, SEKm Cash flow from operating activities, SEKm Cash flow from operating activities, SEKm 2024 2024 2024 2024 2023 2023 2023 2023 2024 2024 2024 2024 2023 2023 2023 2023 LTM LTM LTM LTM 2023 2023 2023 2023 Industrial Services 175 106 433 442 609 617 Product Solutions 221 231 524 535 746 757 Industry Industry Industry Industry 395 395 395 395 337 337 337 337 958 958 958 958 977 977 977 977 1,355 1,355 1,355 1,355 1,374 1,374 1,374 1,374 Construction 505 766 303 1,636 755 2,089 Critical Infrastructure -5 32 345 143 342 139 Construction & Services Construction & Services Construction & Services Construction & Services 500 500 500 500 798 798 798 798 648 648 648 648 1,779 1,779 1,779 1,779 1,097 1,097 1,097 1,097 2,228 2,228 2,228 2,228 Consumer Consumer Consumer Consumer -89 -89 -89 -89 -247 -247 -247 -247 585 585 585 585 747 747 747 747 585 585 585 585 746 746 746 746 Parent company and central companies -23 -27 -149 -110 - 112 -74 Ratos group Ratos group Ratos group Ratos group 783 783 783 783 862 862 862 862 2,042 2,042 2,042 2,042 3,393 3,393 3,393 3,393 2,925 2,925 2,925 2,925 4,275 4,275 4,275 4,275 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 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 Order intake, SEKm Order intake, SEKm Order intake, SEKm Order intake, SEKm 2024 2024 2024 2024 2023 2023 2023 2023 2024 2024 2024 2024 2023 2023 2023 2023 LTM LTM LTM LTM 2023 2023 2023 2023 Construction 1,356 1,055 10,934 8,144 13,671 10,882 Critical Infrastructure 45 415 3,872 3,283 4,655 4,065 Construction & Services Construction & Services Construction & Services Construction & Services 1,401 1,401 1,401 1,401 1,470 1,470 1,470 1,470 14,807 14,807 14,807 14,807 11,427 11,427 11,427 11,427 18,326 18,326 18,326 18,326 14,947 14,947 14,947 14,947 Aibel/two.sups ⁾ 2,339 2,034 12,764 17,309 12,820 17,365 Order backlog, SEKm Order backlog, SEKm Order backlog, SEKm Order backlog, SEKm Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Full Year Full Year Full Year Full Year Construction Construction Construction Construction 2024 2024 2024 2024 2023 2023 2023 2023 2023 2023 2023 2023 Construction 20,791 20,141 19,212 Critical Infrastructure 8,790 9,003 7,580 Construction & Services Construction & Services Construction & Services Construction & Services 29,580 29,580 29,580 29,580 29,144 29,144 29,144 29,144 26,792 26,792 26,792 26,792 Aibel/two.sups ⁾ 30,783 37,257 32,041 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Full Year Full Year Full Year Full Year Return on capital employed, % Return on capital employed, % Return on capital employed, % Return on capital employed, % 2024 2024 2024 2024 2023 2023 2023 2023 2023 2023 2023 2023 Industrial Services 14.1% 14.7% 14.3% Product Solutions 9.9% 8.1% 9.2% Industry Industry Industry Industry 11.3% 11.3% 11.3% 11.3% 10.3% 10.3% 10.3% 10.3% 10.9% 10.9% 10.9% 10.9% Construction 21.0% 26.4% 26.1% Critical Infrastructure 11.0% 15.1% 11.1% Construction & Services Construction & Services Construction & Services Construction & Services 15.1% 15.1% 15.1% 15.1% 19.7% 19.7% 19.7% 19.7% 17.2% 17.2% 17.2% 17.2% Consumer Consumer Consumer Consumer -2.9% -2.9% -2.9% -2.9% -1.1% -1.1% -1.1% -1.1% -1.3% -1.3% -1.3% -1.3% Ratos group Ratos group Ratos group Ratos group/one.sups/one.sups /one.sups/one.sups⁾ 10.2% 10.2% 10.2% 10.2% 10.3% 10.3% 10.3% 10.3% 10.0% 10.0% 10.0% 10.0% ===== SIDA 21 ===== 20 Ratos Interim report Q3 2024 Key figures For definitions, see page 23 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 2024 2024 2024 2024 2023 2023 2023 2023 2023 2023 2023 2023 Leverage excl. financial leasing 0.7x 1.3x 0.7x Leverage 1.4x 2.4x 1.5x Equity ratio, % 41.9 39.4 40.0 Return on equity, % 7.8 5.8 10.0 Return on capital employed excl. financial leasing, % 10.2 10.3 10.0 Return on capital employed, % 9.1 8.9 8.8 Return on invested capital, % 7.3 7.7 7.4 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, % -0.3 -19.2 -10.6 Dividend yield, % 3.5 Market price, SEK 34.66 32.62 36.08 Dividend, SEK 1.25 Equity attributable to owners of the parent, SEK/two.sups⁾ 37.37 38.03 37.71 Basic earnings per share, SEK 1.47 2.28 3.73 Diluted earnings per share, SEK 1.47 2.28 3.72 Average number of ordinary shares outstanding: – before dilution 327,114,930 325,957,221 326,042,022 – after dilution 327,348,795 328,333,600 329,761,727 Total number of registered shares 327,385,688 326,016,488 326,516,488 Number of shares outstanding/three.sups ⁾ 327,385,688 326,016,488 326,516,488 – of which, Class A shares 84,637,060 84,637,060 84,637,060 – of which, Class B shares 242,748,628 241,379,428 241,879,428 /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 22 ===== 21 Ratos Interim report Q3 2024 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 23 of this report. Organic growth * Corrections related to Expin Group of SEK -193m for Full Year 2023 EBITDA, EBITA and operating profit * Of which, SEK -20m pertains to the Industry business area and SEK 21m to the Construction & Services business area 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 2024 2024 2024 2024 2023 2023 2023 2023 2024 2024 2024 2024 2023 2023 2023 2023 2023 2023 2023 2023 Growth Net Sales, % Growth Net Sales, % Growth Net Sales, % Growth Net Sales, % -6% -6% -6% -6% 13% 13% 13% 13% -5% -5% -5% -5% 19% 19% 19% 19% 13% 13% 13% 13% Net sales Net sales Net sales Net sales 7,454 7,454 7,454 7,454 7,971 7,971 7,971 7,971 24,394 24,394 24,394 24,394 25,788 25,788 25,788 25,788 33,748 33,748 33,748 33,748 Acquired net sales 67 676 287 2,830 3,166 Effects from change in currency -281 88 -341 37 -112 Other* 0 -4 -194 Net sales, adjusted Net sales, adjusted Net sales, adjusted Net sales, adjusted 7,669 7,669 7,669 7,669 7,207 7,207 7,207 7,207 24,448 24,448 24,448 24,448 22,925 22,925 22,925 22,925 30,888 30,888 30,888 30,888 Divested net sales in the comparison period 3 10 2 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 7,967 7,967 7,967 7,967 7,039 7,039 7,039 7,039 25,778 25,778 25,778 25,778 21,680 21,680 21,680 21,680 29,873 29,873 29,873 29,873 Organic growth Organic growth Organic growth Organic growth -299 -299 -299 -299 167 167 167 167 -1,331 -1,331 -1,331 -1,331 1,245 1,245 1,245 1,245 1,014 1,014 1,014 1,014 Organic growth, % Organic growth, % Organic growth, % Organic growth, % -4% -4% -4% -4% 2% 2% 2% 2% -5% -5% -5% -5% 6% 6% 6% 6% 3% 3% 3% 3% 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 2024 2024 2024 2024 2023 2023 2023 2023 2024 2024 2024 2024 2023 2023 2023 2023 2023 2023 2023 2023 EBITDA EBITDA EBITDA EBITDA 758 758 758 758 896 896 896 896 2,933 2,933 2,933 2,933 2,978 2,978 2,978 2,978 5,308 5,308 5,308 5,308 Depreciations and impairment -323 -379 -1,038 -1,059 -1,408 EBITA EBITA EBITA EBITA 435 435 435 435 517 517 517 517 1,894 1,894 1,894 1,894 1,918 1,918 1,918 1,918 3,901 3,901 3,901 3,901 Reversal of write-down in associates 1,656 Reconstruction -35 -35 Restructuring* 1 1 Adjusted EBITA Adjusted EBITA Adjusted EBITA Adjusted EBITA 469 469 469 469 517 517 517 517 1,928 1,928 1,928 1,928 1,918 1,918 1,918 1,918 3,901 3,901 3,901 3,901 Amortisation and impairment of intangible assets in connection with company acquisitions -276 -35 -337 -114 -890 Operating profit/loss Operating profit/loss Operating profit/loss Operating profit/loss 159 159 159 159 481 481 481 481 1,558 1,558 1,558 1,558 1,804 1,804 1,804 1,804 3,010 3,010 3,010 3,010 SEKm SEKm SEKm SEKm 2024-09-30 2024-09-30 2024-09-30 2024-09-30 2023-09-30 2023-09-30 2023-09-30 2023-09-30 2023-12-31 2023-12-31 2023-12-31 2023-12-31 Interest-bearing liabilities, other 4,883 5,198 5,049 Provisions for pensions 66 53 65 Interest-bearing assets -74 -102 -34 Cash and cash equivalents -2,121 -1,895 -2,360 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 2,755 2,755 2,755 2,755 3,254 3,254 3,254 3,254 2,720 2,720 2,720 2,720 Financial leasing liabilities 4,796 5,508 5,398 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 7,550 7,550 7,550 7,550 8,762 8,762 8,762 8,762 8,118 8,118 8,118 8,118 ===== SIDA 23 ===== 22 Ratos Interim report Q3 2024 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 2024 2024 2024 2024 2023 2023 2023 2023 2024 2024 2024 2024 2023 2023 2023 2023 2023 2023 2023 2023 Interest income 17 19 -13% 54 56 -3% 76 Interest expense -71 -84 16% -229 -254 10% -340 Interest expense financial leasing -69 -71 3% -213 -208 -2% -276 Net interest Net interest Net interest Net interest -123 -123 -123 -123 -136 -136 -136 -136 10% 10% 10% 10% -387 -387 -387 -387 -406 -406 -406 -406 5% 5% 5% 5% -540 -540 -540 -540 Net exchange rate effects -2 1 neg -10 -69 86% -70 Other financial items -32 -37 13% -70 -98 29% -127 Net financial items Net financial items Net financial items Net financial items -158 -158 -158 -158 -172 -172 -172 -172 8% 8% 8% 8% -467 -467 -467 -467 -573 -573 -573 -573 19% 19% 19% 19% -737 -737 -737 -737 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 2024 2024 2024 2024 2023 2023 2023 2023 2024 2024 2024 2024 2023 2023 2023 2023 2023 2023 2023 2023 Net interest 7 17 -58% 41 61 -34% 79 Net exchange rate effects 5 -1 pos 1 -19 106% -21 Other financial items -10 -16 39% -24 -46 48% -49 Net financial items Net financial items Net financial items Net financial items 22 22 -1 -1 -1 -1 pos pos pos pos 18 18 18 18 -4 -4 -4 -4 pos pos pos pos 99 99 Change% Change% Change% Change% Change% Change% Change% Change% ===== SIDA 24 ===== 23 Ratos Interim report Q3 2024 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. Internal rate of return Adjusted EBITA less tax paid for the last 12 months as a percentage of average capital invested 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 and segment Adjusted EBITA for 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. Invested capital Non-current assets (including goodwill) and working capital. Adjusted EBITA EBITA adjusted for 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. Order intake The value of projects and contracts received, as well as changes in the value of existing projects and agreements during the current period. Order intake is only reported for the Construction & Services business area since it is considered a key performance measure for its operations. Order backlog The value of the remaining unearned project revenue in pending assignments at the end of the period. Order backlog is only reported for the Construction & Services business area since it is considered a key performance measure for its operations. 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 25 ===== Investor presentation 22 October 9:00 a.m. Webcast: https://youtube.com/live/2ZQv4BDWQb0?feature=share Financial calendar 2025 2025 2025 2025 Year-end report 2024 17 February Stockholm, 22 October 2024 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 22 October 2024. Ratos AB (publ) Sturegatan 10, Mailbox 511 SE-114 11 Stockholm Tel: +46 8 700 17 00 www.ratos.com Reg. no. 556008-3585 ===== SIDA 26 =====