The Ratos share as an investment
Ratos is a business group that enables independent companies to excel by being part of something larger. People, leadership, culture and values are key focus areas for Ratos. Everything we do is based on Ratos’s core values: Simplicity, Speed in Execution and It’s All About People. Our business concept is to own and develop companies that are or can become market leaders.
Create synergies together
At Ratos, we retain ownership of our companies for as long as we consider ourselves to be the best owner for the company. We focus on delivering increased and sustainable earnings in our companies through achieving stability, followed by profitability and growth. It is a fundamental principle that our companies maintain their independence but are also a part of something larger. “Something larger” does not simply refer to being a part of a company group with almost 10,500 employees, net sales of approximately SEK 34 billion and a parent company with strong net cash. The most important aspect of being part of “something larger” is our network, where experiences are shared between companies and industries and where we can create synergies together.— Jonas Wiström, CEO
The investment case
A well-functioning business model
Ratos’s model for company development is built on a few fundamental principles for value creation called the Ratos Principles. Founded on our experience of successful company development, these principles define our organization and companies and serve as a guide in our day-to-day operations.
A unique asset class
The Ratos share is a competitive and liquid investment opportunity, offering exposure to an attractive and well-diversified portfolio of unlisted Nordic high-quality companies.
Focus on strong financial performance achieving
Stability – Profitability – Growth
Our main focus is to achieve strong earnings growth in our companies. We are, together with the management teams, focusing on achieving stability, followed by profitability and growth in our companies. We believe that good profitability is the basis for growth. Organic growth is a priority, acquired growth with synergies also drives value.
A well-balanced risk
Ratos has a well-balanced portfolio of investments with exposure to several industries and geographies. Our strong balance sheet and cash flow allow us to capture attractive investment opportunities and enable a good dividend level over time.
A strong history with long-term majority owners
Ratos has been around for more than 150 years and its largest owner is the Söderberg family and the foundations Ragnar and Torsten Söderberg.
No 1 or 2
Each company is expected to deliver continuous earnings improvements and to be or become No. 1 or No. 2 in its industry.
Since 2018 we have focused on our existing company group and to achieve a positive earnings trend. We continuously review the mix of companies in the Ratos Group to maximize shareholder value. In recent years some companies have been divested as they were viewed as non-core to Ratos, or where we no longer consider ourselves to be the best owner. Divestments over the last three years include: Bisnode, Gudrun Sjödén Group, Jøtul, Serena Properties, Sophion Bioscience.
Target: EBITA is to amount to at least SEK 3 billion by 2025.
Target: Net debt, excluding financial lease liabilities, in relation to EBITDA should normally range from 1.5 to 2.5x.
Dividend payout ratio
Target: The dividend payout ratio should amount to 30–50% of profit after tax attributable to owners of the parent, excluding capital gains and losses.
Ratos has four focus areas for its sustainability efforts, which form the basis for its reporting on our sustainability efforts:
- Transparency and corporate governance
- Business ethics and anti-corruption
- Environment and climate impact