Ratos (RATO) CMD 2026 presentation summary

Strategic transformation and structure

• Transitioning from an operating company to a focused investment company with majority and minority holdings in Nordic businesses, emphasizing long-term active ownership and value creation.

• Portfolio streamlined to core, platform, and minority holdings, with clear development paths for each category.

• Governance model enhanced with a mix of internal and industry expertise on boards, and reporting shifting to individual company performance and NAV disclosure.

• Capital allocation prioritized for organic growth, add-on M&A, and shareholder returns, with disciplined risk management and clear thresholds.

• Strategic focus on industry and infrastructure segments, with ongoing exits from non-core assets and targeted new investments.

Financial targets and performance

• New mid-term financial targets for 2028: revenue growth ≥5%, EBITA margin ≥10%, ROCE ≥10%, and leverage (net debt/EBITDA) 1.5–2.5x.

• Dividend policy set at 30–50% of EPS on average per year, aiming for improved earnings quality and capital efficiency.

• 2022–2025 performance showed revenue CAGR of +3%, EBITA CAGR of +8%, and a slight decline in ROCE, with a renewed focus on accelerating growth and margin improvement.

• EPS expected to grow faster than EBITA due to improved performance, lower financing costs, and reduced minority positions.

• Capital allocation for 2026–2028 estimated at 40% for organic and operational initiatives, 30% for M&A add-ons, and 30% for shareholder returns.

Portfolio company highlights

• Presis Infra: Leading Nordic infrastructure services provider with strong growth, high margins, and a focus on organic expansion and M&A, especially in Eastern Norway and adjacent segments.

• HL Display: European leader in in-store communication and merchandising, delivering five years of profitable growth through organic initiatives and strategic acquisitions, with a vision for undisputed market leadership.

• Diab Group: Global partner in sandwich core solutions, shifting focus to high-margin segments, improving profitability, and leveraging sustainability as a competitive advantage.

• Knightec Group: Leading strategic partner in product and digital service development, with a strong client base, high share of project-based deliveries, and a growth strategy centered on organic initiatives and targeted M&A.