Ratos AB (publ)

Good morning and welcome to this presentation covering the third quarter in Ratos for 2024. I am joined by Jonas Wiström, our president and CEO, and Jonas Åhgrup, our CFO, here in the studio. And they will guide us through the results shortly. Starting this quarter, we will also give you a slightly deeper understanding of our individual subsidiaries in connection to the quarterly report. To do that, we will invite guests to our webcast starting today. First up is the HL Display CEO, Björn Boryman, who will join us later on to give us a little bit more insight on HL's recent development and the exciting growth journey. In the end of the presentation, you will be able to raise your questions in our Q&A session, and this webcast is also recorded, so you will find it afterwards at ratos.com. Without further ado, I'll hand over to Jonas Wiström.

Thank you, Josefine, and thank you everyone for joining this meeting to listen to what I think is a good result for a good quarter for Ratos. And we start up with a summary. It's really been a busy quarter. Again, I'm happy with the results and coming back to that and the strong cash flows. If we start with all processes we're in, I would like to highlight the merger of Nitech and Semcon, which was announced in the quarter. That process have had a really good start and We see them as one company with one structure in the beginning of 2025. But it started up very well, and I'm coming back a little bit to this later. We also launched a reconstruction in Plantagen, which is absolutely necessary to do our structural changes forward. And we also finalized the restructuring in Expin Group. I'm very happy that industry continues to develop actually very strong. We had a temporary week quarter in construction with tough comparisons and I will come back to that during my presentation of the business area. And as you see, the order backlog is very strong and also the order intake growth. This quarter is also a quarter in a little bit weaker market than we expected. Net sales is down 6%, organic minus 4. We have to note that the currency effects were quite substantial this quarter. And again, cash flows continues to be strong and Jonas is coming back to that, but it's even a little bit stronger than the last year. We're on 167% in cash conversion. So let's take a look into the business areas and starting up then with industry. They had a EBITDA growth of 21%, EBITDA margin close to 10%. I mentioned the merger of Nitech and Semcon. We will create a leading R&D partner for product and digital solutions. I'm really looking forward to that. Also, both companies had very good numbers in the quarter separately. They actually grow 8% in the technical consultants grow 8% organic in a quarter with a weaker market. Net sales down 2%, 2% organic negatively and again 2% currency effects. HL and the deal perform add-on acquisitions in the quarter and the effect of that is 3% in structural. We continue to see a lower market in the wind and CRO market remains on a low level. We see signs of improvement. EBITDA up 21% and we had increased adjusted EBITDA in both segments and in all our subsidiaries. Again, EBITDA margin close to 10%. Looking into industrial services, we had a bit lower sales here and the EBITDA grow 31% in the quarter. Our EBITDA margin also increased. We had one day more in the quarter, which normally means something. Here we had the two longer days in July, one shorter day in August. So the calendar effect is not as strong as it is in theory because of the vacation period. But I'm very happy with the development in industrial services. Coming into product solutions, there we had a net sales growth. We did acquisitions, as I mentioned, in HL Display and Lidil in the quarter. Sales was negatively affected by the weaker wind market or a continued weak wind market, I would say, in DIAB. EBITDA up 15%, EBITDA margin close to 11%. And again, all subsidiaries increased their EBITDA in the quarter. And now I'm really looking forward, Josefin, to listen to Björn Borgman in CEO. CEO in HL Display. Should I switch the slide here now?

No, I think Björn will come in here. Yeah, indeed. I am super excited to introduce Björn Borgman, the CEO of HL Display. Please.