Ratos as an investment
Ratos is a Swedish public listed company that owns and develops both listed and unlisted small and mid-sized Nordic companies. All of Ratos’ holdings operate under their own brand with their own boards and management teams. As an active and long-term owner, Ratos aims to create sustainable value in each company.
Keys to success
Ratos Business System (RBS)
The Ratos Business System (RBS) – the Ratos Group’s operational model is built on Ratos’s core values: Simplicity, Speed in execution and Its all about people.
Focus on profitability and sustained profit growth
Ratos increases the Group’s earnings through a combination of focusing on operational profitability, organic growth, and acquisitions.
Strong decentralised structure
The Ratos Group has a strong decentralised structure and each subsidiary has a large degree of independence.
Sustainability at the core
Sustainability permeates Ratos’s entire business model. Long-term sustainability also creates long-term profitability. We take a comprehensive approach, focusing on sustainable strategies rather than sustainability strategies.
The best of small-scale operations combined with the resources of a larger group
With a small and efficient group organisation and leadership with extensive operational experience, we combine the flexibility and speed of a smaller company with the resources, network and stability of a larger group. Our structural capital and model enable us to act quickly in light of market changes and provide us with all of the necessary conditions to create shareholder value.
Structured follow-ups
Ratos’s day-to-day work is conducted through regular contact with its companies, including monthly follow-ups of earnings, cash flow and the balance sheet. The Ratos Group maintains a close collaboration with its subsidiaries through small, committed boards.
The 90–10 model
Ratos encourages its subsidiaries to maintain a 90% focus on execution and a 10% focus on strategy. It is important for the subsidiaries to have a clear idea about where they are headed, but planning for the future in detail is often a waste of time considering its unpredictability. It is more important to execute the chosen strategy, listen to customers, follow market developments and be quick to adapt to a changing world.
People in focus
Ratos’s role is to enable skilled leaders and employees to excel in a heavily decentralised structure.
The right CEOs for our subsidiaries
The single most important assignment for Ratos is to appoint the CEOs for our subsidiaries. When we attract the best CEOs to our companies, they will in turn attract a strong team.
Continual exchange of experiences and networking
Our subsidiaries reap the rewards of being part of the Ratos network through the exchange of experiences within Ratos, both in the individual business areas and in the Group.
Financial targets
EBITA GROWTH
- EBITA is to amount to at least SEK 3 billion by 2025.
LEVERAGE
- Net debt, excluding financial lease liabilities, in relation to EBITDA should normally range from 1.5 to 2.5x.
DIVIDEND PAYOUT RATIO
- The dividend payout ratio should amount to 30–50% of profit after tax attributable to owners of the parent, excluding capital gains and losses.
