Ratos — Audit Report / Information 2021

Feb 14, 2022

Year-end report 2021

Year-end report 2021

Strong quarterly and annual earnings as well as several acquisitions – transition from investment company to Group is completed

Performance Ratos Group

Q4 2021

• Adjusted1) operating profit amounted to SEK 215m (198)
• Adjusted1) profit for the period amounted to SEK 220m (97)
• Operating profit amounted to SEK 379m (198)
• Profit for the period amounted to SEK 383m (97)
• Profit for the period was impacted positively by an unrealised gain of SEK 164m related to the revaluation of shares in Dun & Bradstreet Holding Inc.
• Diluted earnings per share amounted to SEK 0.94 (0.05)
• Cash flow from operating activities amounted to SEK 234m (724). Cash flow was impacted by a planned inventory build-up in the Consumer business area. Bisnode was included in the comparative period, which also affected the change compared with the previous year.

Full-year 2021

• Adjusted1) operating profit amounted to SEK 1,772m (1,457)
• Adjusted1) profit for the period amounted to SEK 2,971m (883)
• Operating profit amounted to SEK 1,656m (1,457)
• Profit for the period amounted to SEK 2,855m (883) and was affected positively by the capital gain from the sale of Bisnode
• Profit for the period was impacted negatively by an unrealised loss of SEK 116m related to the revaluation of shares in Dun & Bradstreet Holding Inc.
• Diluted earnings per share amounted to SEK 8.10 (2.17). Excluding the capital gain from the sale of Bisnode, diluted earnings per share amounted to SEK 2.83
• Cash flow from operating activities amounted to SEK 1,448m (3,201). Cash flow was impacted by a planned inventory build-up in the Consumer business area. Bisnode was included in the comparative period, which also affected the change compared with the previous year
• The Board of Ratos proposes a dividend for full-year 2021 of SEK 1.20 per share (0.95)

Significant events during the quarter

• On 30 November, Ratos acquired the company Presis Infra in the Construction & Services business area
• On 16 December, Ratos announced the establishment of Svensk Samverkansentreprenad Aktiebolag (SSEA) Group with the ambition of becoming Sweden's leading construction group in partnering and collaboration contracts
• On 30 December, Speed Group, which is part of the Construction & Services business area, acquired Dream Logistics' transport management services (4PL)

Financial performance

	Q4	Q4	Change	Q1-4	Q1-4	Change
SEKm	2021 2021	2020 2020	%	2021	2020	%
Ratos Group
Net sales	5,754	4,844	19%	22,551	20,941	8%
EBITA	390	200	95%	1,686	1,468	15%
Operating profit	379	198	92%	1,656	1,457	14%
Profit before tax	289	20	pos	1,306	873	50%
Profit for the period	383	97	pos	2,855	883	pos
Diluted earnings per share total group, SEK2⁾	0.94	0.05	pos	8.10	2.17	pos
Diluted earnings per share, continuing operations, SEK	0.94	-0.27	pos	2.83	1.58	79%
Cash flow from operating activities	234	724	-68%	1,448	3,201	-55%
Leverage				1,3x	2,3x

1⁾ Adjusted for revaluation of listed shares

2⁾ 2020 includes Bisnode that was divested in January 2021 and associated capital gain

Improved quarterly and full-year earnings – growth journey started

Full-year and quarterly EBITA for the group improved by 23% and 13%, respectively, excluding the capital gain from the divestment of Bisnode and the change in value of the D&B shares. Our diversified business areas stands strong together in a turbulent operating environment, with supply chain challenges, increased costs for input goods and Covid-19 infections at workplaces. Earnings per share developed very positively.

The turnaround period that began in 2018 came to an end in early 2021. We embarked on a growth journey during the year which amongst other resulted in eight acquisitions that collectively contributed approximately 30% of the increase in EBITA in 2021. Generally speaking, the companies were acquired at relatively low multiples. Several of the companies had strong demand at the end of 2021 and entered 2022 with healthy order books. During the year, Ratos completed its transition from an investment company to a consolidated group. Ratos's transition to a group has had several positive effects. Centralised financing of our companies contributed to a significant improvement in net financial items for the year. We now have better opportunities to improve our tax expenses and our acquisition rate has accelerated. We can now fully focus on EBITA growth with high return on capital employed and synergetic acquisitions.

Our business areas

Companies in Construction & Services Construction & Services& Services increased their EBITA by 48% during the year and 46% in the fourth quarter. This was a positive year and quarter for the business area with a robust sales growth. Aibel posted a strong EBITA trend for the year and quarter. The order intake was strong, and the company entered 2022 with an order book of NOK 14.7 billion, the majority of which comprises offshore wind and electrification orders. Speed Group also performed well and posted record-high EBITA for the year. airteam, with industry-leading profitability, also posted a record-high EBITA and order book. HENT continued to stabilise its operations during the year, with a slight improvement in profitability. At the end of the year, the company had a record-high backlog of orders of NOK 19 billion, of which 76% pertained to public contracts. Vestia's operations performed well during the year, with EBITA growth of 80% and high profitability compared to the industry. Ratos formed a new company at year-end, combining Vestia and the Swedish portions of HENT, into a new company called Svensk Samverkansentreprenad AB (SSEA). The ambition is to become Sweden's leading construction group in partnering and collaboration contracts. Presis Infra was acquired at the end of November and contributed to the business area's earnings in December. The acquisition will help Ratos strengthen its position as a society developer. A positive side effect of this acquisition is that it will help to even out the Group's seasonal EBITA variations owing to Plantasjen.

The Consumer ConsumerConsumer business area was affected by the divestment of Bisnode at the turn of the year 2020-2021. Adjusted for this, the companies in the business area continued to post strong EBITA growth of 30% for the year. Earnings decreased by 1% for the seasonally weak fourth quarter. Sales growth amounted to 16% for the full year and 34% for the fourth quarter. Plantasjen continued to perform well during the year, with increased EBITA, and has strengthened its market share in a growing market over the past two years. KVD increased its EBITA and sales drastically during the year due to the acquisition of Forsbergs Fritidscenter in July and the further development of its business model. KVD's total EBITA decreased during the quarter due to seasonal losses in Forsbergs Fritidscenter. Oase Outdoors performed very well during the year,

with EBITA growth of 65%. Both EBITA and sales were the highest in the company's history, including the order book for 2022.

EBITA for the companies in the Industry Industry business area decreased 23% during the year and 57% during the quarter as a direct result of the negative impact that the decline in the wind market and an ongoing shift in technology in terms of materials had on Diab (since all other companies performed well). As a result, Diab carried out a cost-savings programme during the quarter that will lower costs by approximately SEK 30m. A larger restructuring programme is planned to be initiated during the first quarter 2022 to further reduce costs by approximately SEK 130m. The savings are expected to take full effect during 2022, but the pressure on the wind market is expected to continue throughout the year. HL Display continued to perform well and delivered all-time high in both EBITA and sales during the year. During the quarter, HL Display was affected by restructuring costs in Asia and continued increases in commodity costs. LEDiL also had a good year, with record-high EBITA and sales for the year. The order intake was strong, and the company entered 2022 with a record-high backlog of orders. TFS also performed exceptionally well, with strong EBITA growth of 58% during the year and 84% for the quarter. The market for clinical trials is growing quickly and TFS continues to increase its market share in Europe and the US.

Ratos companies driving sustainable development Sustainability is a prerequisite for long-term profitability. Several events during the quarter demonstrated the strength of the Ratos family. The fourth quarter marked an important milestone for Aibel, since the share of green projects pertaining to offshore wind and electrification in the backlog of orders now accounts for a full 64% of the order book. The recent electrification contracts that Aibel was awarded during the quarter will help reduce CO2 emissions by more than 800,000 tonnes annually, representing approximately 1.5% of Norway's total emissions.

The year-end climate report for the Parent Company showed that we reduced our climate impact by a gratifying 50% during the past year. While the pandemic had a significant impact, not least within air travel, it has nonetheless spurred us to find ways to continue this positive climate-smart way of working in the future. Moving to newer, smaller offices has also helped.

2021 was a challenging year in many ways, with the pandemic continuing to have a significant impact on several of our companies. Nevertheless, we delivered a strong earnings development and carried out several acquisitions. We are now entering 2022 having made a great deal of progress towards our financial targets for 2025, including a stronger balance sheet than planned.

I'm proud of what we accomplished together during 2021 and look forward to an exciting 2022.

Jonas Wiström, President and CEO

Construction & Services

Business area development

	Net sales sales				EBITA EBITA
	Q4	Q4	Q1-4	Q1-4	Q4	Q4	Q1-4	Q1-4
SEKm	2021 2021	2020 2020	2021	2020	2021	2020	2021	2020
Companies in its entirety
Aibel	3,702	3,042	12,890	12,022	206	143	700	447
airteam	370	392	1,311	1,331	44	54	128	126
HENT	2,151	2,149	8,054	8,644	41	36	170	172
Presis Infra2)	225		225		32		32
Speed Group	318	203	1,060	726	27	17	117	62
Vestia2)	299		754		16		43
Companies total	7,067 7,067	5,786 5,786	24,296	22,723	366	250	1,190	807
Adjustment for Ratos's holding	-3,482	-2,829	-12,004	-11,131	-187	-128	-620	-407
Total, adjusted for Ratos's holding for holding	3,585 3,585	2,958	12,292	11,592	179	122	569	400
Growth, net sales 1⁾	21%	-17%	6%	-5%
EBITA margin 1⁾					5.0%	4.1%	4.6%	3.4%

1⁾ Adjusted for Ratos's holding

2⁾ Presis Infra förvärvades i Q4 2021, Vestia förvärvades i Q2 2021

The order intake during the quarter remained strong and for the full year amounted to NOK 16.8 billion due to high levels of market activity in all segments. The backlog of orders at the end of the year amounted to NOK 14.7 billion, of which 64% pertained to offshore wind power and electrification projects. An important milestone was passed in the fourth quarter when the share of green projects accounted for the majority of the backlog of orders. The existing backlog of orders includes options for significant potential orders in the future.

Sales and EBITA vary from quarter to quarter, depending on the phasing in the project portfolio. Sales for the full year increased by 5% compared with the previous year. EBITA increased by 38% during the quarter and the EBITA margin for the full year improved by 1.7 percentage points compared with the yearearlier period. The process of a potential listing continues.

In the fourth quarter, Aibel was awarded a contract for the electrification of Oseberg's offshore platform and the Kårstøonshore gas processing facility. Electrification of these facilities will reduce CO2 emissions by more than 800,000 tonnes annually, representing approximately 1.5% of Norway's total emissions.

In 2021, Aibel established clear market leadership in the electrification of oil and gas infrastructure segment.

		Q4 Q4	Q1-4 Q1-4
NOKm NOKm	2021 2021	2020	2021	2020
Net sales	3,658	3,183	12,915	12,286
EBITDA	267	207	956	718
EBITA	204	148	701	457
Cash flow from operations	291	463	644	446
Interest-bearing net debt			1,377	2,030
-whereof leasing liability			529	660
Growth, Net sales	15%	-14%	5%	5%
- whereof currency effect	0%	0%	0%	0%
Growth, Organic	15%	-14%	5%	5%
EBITDA margin	7.3%	6.5%	7.4%	5.8%
EBITA margin	5.6%	4.7%	5.4%	3.7%

Amounts referring to 100% of the company.

Aibel is active within the offshore wind, oil and gas space. The company provides their customers with optimal and innovative solutions within engineering, construction, modifications and maintenance. Aibel's skilled employees are located close to their customers at the company's offices in Norway and South East Asia. In addition, they operate two modern yards, one in Haugesund and one in Thailand, with complete prefabrication and construction capabilities. The average number of employees in the company amounted to 4,213 in 2021.

airteam's EBITA for the full year was record-high DKK 94 million, equivalent to a sector-leading EBITA margin of 9.8%. EBITA for the quarter was affected by project delays and was lower than same period last year. airteam reported organic sales growth of just over 2% during the year despite the fact that the fourth quarter and much of 2021 were characterised by challenges in construction material and air compressor deliveries, resulting in project delays.

The backlog of orders amounted to just over DKK 1 billion at year-end. During the year, the backlog of orders in the Swedish market more than doubled.

Demands in the area of energy efficiency, where airteam holds a leading position, are continuously increasing and creating a favourable market. Efforts to offer energy optimisation by replacing older ventilation systems are ongoing, and energy optimisation in new facilities is now a normal part of deliveries. In 2021, airteam added additional specialists to its team to meet growing demand.

		Q4 Q4	Q1-4 Q1-4
DKKm DKKm	2021 2021	2020	2021	2020
Net sales	272	283	961	946
EBITDA	35	41	102	98
EBITA	32	38	94	89
Cash flow from operations	11	41	36	133
Interest-bearing net debt			5	22
-whereof leasing liability			17	13
Growth, Net sales	-4%	12%	2%	18%
- whereof currency effect	0%	1%	1%	0%
- whereof acquisition				3%
Growth, Organic	-4%	11%	1%	15%
EBITDA margin	12.7%	14.4%	10.6%	10.3%
EBITA margin	11.9%	13.6%	9.8%	9.4%

Amounts referring to 100% of the company.

Holding 70% airteam offers high-quality, effective ventilation solutions in Denmark and Sweden. With the most talented employees in the industry, airteam develop advanced systems for a wide range of industries and are solely focused on ventilation, unlike certain competitors. The company focuses on project development, project management and procurement where the projects, to a large extent, are carried out by a broad network of quality-assured subcontractors. Furthermore, airteam offers maintenance and service of its installed ventilation solutions. The average number of employees in the company amounted to 347 in 2021.

The order intake was strong during the year and the backlog of orders at the end of the year amounted to a record-high NOK 19 billion, of which 76% pertained to public contracts.

Sales for HENT decreased during the year since a significant share of projects are in an early phase where the level of construction activity and invoicing to customers is low. HENT was also negatively impacted by the pandemic and the subsequent travel restrictions for foreign workers and increases in material prices. Sales fell by 6% in the fourth quarter compared with the year-earlier period.

Despite a downturn in sales, the EBITA margin improved for the quarter and full-year 2021. These improvements in the margin were attributable to continued positive growth in a project portfolio with higher average profitability.

		Q4 Q4	Q1-4 Q1-4
NOKm NOKm	2021 2021	2020	2021	2020
Net sales	2,122	2,250	8,070	8,833
EBITDA	63	58	253	253
EBITA	40	38	170	176
Cash flow from operations	297	34	-43	165
Interest-bearing net debt			-989	-529
-whereof leasing liability			228	201
Growth, Net sales	-6%	-9%	-9%	0%
- whereof currency effect	-1%	2%	0%	2%
Growth, Organic	-5%	-11%	-8%	-2%
EBITDA margin	3.0%	2.6%	3.1%	2.9%
EBITA margin	1.9%	1.7%	2.1%	2.0%

Amounts referring to 100% of the company.

HENT is a leading construction company that mainly works with new construction of public and commercial real estate. HENT focuses on project development, project management and purchasing. Its projects are carried out with their own project administration and in collaboration with a knowledgeable network of qualityassured subcontractors. They conduct projects throughout Norway and in selected segments in Sweden and Denmark. The average number of employees in the company amounted to 1,027 in 2021.

Presis Infra, which was acquired at the end of November, reported a strong December. Sales amounted to NOK 226m and EBITA for the month amounted to NOK 32m, equivalent to an EBITA margin of just over 14%.

	Q4 Q4	Q1-4 Q1-4
NOKm NOKm	2021 2021	2021
Net sales	226	226
EBITDA	38	38
EBITA	32	32
Cash flow from operations	21	21
Interest-bearing net debt		1,337
-whereof leasing liability		232
EBITDA margin	17.0%	17.0%
EBITA margin	14.0%	14.0%

Amounts referring to 100% of the company.

Holding 75% Presis Infra is a leading Norwegian maintenance group in critical transportation infrastructure based in Bergen. They are also active in ferry quay operations and maintenance as well as rockfall protection. Presis Infra is known for its lean organisation, decentralised business model and leading margins, which are unique in its sector. The average number of employees in the company amounted to 366 in 2021.

Growth during the year was strong and Speed Group reported record-high sales as well as EBITA. Activity remained high in the industrial and staffing segments during the fourth quarter, which had a positive effect on operations. Sales for the full year increased 46% compared to same period last year. To respond to this growing demand, the business gradually expanded its facilities during the year and additional capacity was added to meet the higher level of activity.

EBITA increased drastically, both for the quarter and for the year, due to high volumes and improved productivity.

To complement the service offering within logistics, Dream Logistics' transport management services (4PL) were acquired during the quarter. The company has sales of approximately MSEK 100 and an EBITA margin of 3%. Holding

		Q4	Q1-4
SEKm SEKm	2021 2021	2020	2021	2020
Net sales	318	203	1,060	726
EBITDA	57	45	229	162
EBITA	27	17	117	62
Cash flow from operations	37	17	151	63
Interest-bearing net debt			600	762
-whereof leasing liability			719	755
Growth, Net sales	57%	6%	46%	3%
Growth, Organic	57%	6%	46%	3%
EBITDA margin	18.0%	22.3%	21.6%	22.3%
EBITA margin	8.4%	8.5%	11.0%	8.5%

Amounts referring to 100% of the company.

Speed Group is one of the Nordic region's leading third-party logistics providers, with effective automation solutions and a total of approximately 150,000 square meters of warehouse space in Borås, Gothenburg and Stockholm. With solutions for fast integration, balancing of volume fluctuations, smart distribution, and revenue-driving follow-ups, the company offers both warehouse space but also a full-service takeover and responsibility of its customers' logistics. Within staffing, Speed Group offers flexible staffing services of both blue and white-collar personnel. The average number of employees in the company amounted to 1,020 in 2021.

The order intake during the year was strong, and during the fourth quarter the order book grew, amongst others, through a major additional order in the high-profile SEEL project, Sweden's largest test facility for electromobility. During the quarter, Vestia won a major new project in the Campus Lundby area with AB Volvo as customer. At year-end, the backlog of orders amounted to SEK 2.8 billion, which is the largest order book in the history of the company and three times the annual sales for the current year.

Net sales for the fourth quarter increased by 48% year on year, and EBITA increased by 51%.

Ratos established Svensk Samverkansentreprenad (SSEA) during the quarter by combining Vestia with the Swedish portion of HENT. Holding

	Q4 Q4	Q1-4 Q1-4
SEKm SEKm	2021 2021	2021
Net sales	299	754
EBITDA	17	46
EBITA	16	43
Cash flow from operations	-10	46
Interest-bearing net debt		-79
-whereof leasing liability		4
EBITDA margin	5.8%	6.1%
EBITA margin	5.5%	5.7%

Amounts referring to 100% of the company.

62%

Vestia is an expansive construction operating in Gothenburg, Sweden and its surrounding municipalities. With several of the best on-site organisations in the region, the company works to strengthen its customers' brands. Vestia works according to a so-called "partnering model," whereby the customer and Vestia work transparently, and make all key decisions jointly to achieve the best total economy and effective implementation. The process creates a large amount of comfort for all parties, the financial risks are minimised and the projects are delivered with a high level of quality and using long-term sustainable solutions. The average number of employees in the company amounted to 76 in 2021.

Consumer

Business area development

	Net sales			EBITA
	Q4	Q4	Q1-4	Q1-4	Q4	Q4	Q1-4	Q1-4
SEKm	2021 2021	2020 2020	2021	2020	2021	2020	2021	2020
Companies in its entirety
Bisnode		966		3,673		182		504
KVD	383	105	1,086	393	10	13	52	37
Oase Outdoors	7	10	463	418	-21	-15	79	48
Plantasjen	777	753	4,682	4,582	-21	-30	713	566
Companies total	1,166 1,166	1,836 1,836	6,232	9,067	-33	150	845	1,155
Adjustment for Ratos's holding	-9	-300	-143	-1,240	5	-51	-24	-167
Total, adjusted for Ratos's holding for holding	1,158 1,158	1,535	6,089	7,827	-28	99	821	987
Growth, net sales 1⁾	-25%	3%	-22%	2%
EBITA margin 1⁾					-2.4%	6.4%	13.5%	12.6%
1⁾ Adjusted for Ratos's holding

Sales increased drastically during the year due to the acquisition of Forsbergs Fritidscenter and Kvdbil's complementary business model, which focuses on purchasing second-hand cars to its own warehouse and sell thorough its own digital sale channels.

A shortage of semiconductors and other components for the automotive industry led to lower supply and higher demand in the industry, resulting in further price increases.

The downturn in the quarterly performance was attributable to seasonal losses in the quarter for Forsbergs and a lower inflow of second-hand cars in the fourth quarter.

		Q4 Q4	Q1-4 Q1-4
SEKm SEKm	2021 2021	2020	2021	2020
Net sales EBITDA EBITA Cash flow from operations	383 22 10 -110	105 21 13 21	1,086 92 52 -145	393 67 37 58
Interest-bearing net debt -whereof leasing liability			486 106	22 53
Growth, Net sales - whereof acquisition Growth, Organic EBITDA margin EBITA margin	264% 123% 140% 5.8% 2.6%	-3% -3% 19.7% 12.5%	176% 100% 76% 8.5% 4.8%	2% 2% 17.1% 9.3%

Amounts referring to 100% of the company.

Holding 100% At KVD, the belief is that a car trade should feel good – and be good – whether you are buying or selling a vehicle. KVD is Sweden's largest online marketplace offering valuation and broker services for second-hand vehicles (company cars and private cars), machines and heavy vehicles as well as sales of related products and services. Every week more than 500 secondhand cars are sold via the online marketplace. KVD handles the entire transaction from client order to end customer and guarantees the quality of the brokered car by means of testing. The average number of employees in the company amounted to 338 in 2021.

Sales for 2021 were the highest in the history of the company. Organic sales growth was 14%, which was higher than the rate of growth in the market. Improved gross margins and a more focused product strategy with better quality assurance resulted in increased EBITA.

Sales for the seasonally weak fourth quarter decreased compared with the previous year due to lower inventory after record sales during the busy season.

The outlook for outdoor activities remains positive, and Oase Outdoors ended the year with a record-high order book.

		Q4 Q4	Q1-4 Q1-4
DKKm DKKm	2021 2021	2020	2021	2020
Net sales	5	9	339	297
EBITDA	-15	-9	62	39
EBITA	-16	-11	58	34
Cash flow from operations	-37	-19	43	93
Interest-bearing net debt			107	118
-whereof leasing liability			11	13
Growth, Net sales	-44%	2%	14%	-1%
- whereof currency effect	0%	0%	0%	0%
Growth, Organic	-44%	2%	14%	-1%
EBITDA margin	neg	neg	18.2%	13.2%
EBITA margin	neg	neg	17.1%	11.5%

Amounts referring to 100% of the company.

Holding 78% Oase Outdoors develops, designs and sells innovative camping and outdoor equipment under three strong brands, namely Outwell ®, Easy Camp® and Robens®. Oase Outdoors offers a broad product range mainly comprising tents, camping furniture, sleeping bags and other outdoor equipment. The three independent brands clearly cater to different target groups – for example, families, beginners, festival goers and experienced adventurers – who have different requirements in terms of quality and price, and who want to enjoy the outdoors with high-quality equipment. The average number of employees in the company amounted to 85 in 2021.

Plantasjen has performed well for the last two years, with an increased market share in a growing market. Investments such as upgrading stores and updating the product offering have improved the customer experience.

Sales for full-year 2021 grew by just over 1% organically and EBITA increased by 24% to SEK 715m, the best performance in the history of the company. Improved efficiency in logistics led to overall higher margins and improved earnings. Earnings in the fourth quarter was affected positively by non-recurring items of NOK 28m arising from early terminated lease contracts.

During the year, the development of Plantasjen's "click-n-collect" and "click-n-deliver" e-commerce solutions continued to ensure positive e-commerce growth in the next few years. Due to limited global logistics capacity, Plantasjen has rescheduled its deliveries to earlier dates to ensure availability during the high season, resulting in an inventory build-up and weaker cash flow for the second half of the year.

		Q4 Q4	Q1-4 Q1-4
NOKm NOKm	2021 2021	2020	2021	2020
Net sales	756	802	4,691	4,682
EBITDA	93	103	1,194	1,069
EBITA	-25	-26	715	578
Cash flow from operations	-208	64	89	465
Interest-bearing net debt			4,778	5,060
-whereof leasing liability			3,676	4,037
Growth, Net sales	-6%	24%	0%	16%
- whereof currency effect	-3%	6%	-1%	3%
- whereof divestment		0%		-6%
Growth, Organic	-2%	18%	1%	19%
EBITDA margin	12.3%	12.8%	25.4%	22.8%
EBITA margin	-3.4%	-3.2%	15.2%	12.4%

Amounts referring to 100% of the company.

Plantasjen is the Nordic region's leading chain for the sale of plants, flowers and related products. The company operates in a market with stable underlying growth and many committed customers. With just over 130 stores in Norway, Sweden and Finland, the vision is to create the Nordic region's loveliest greenhouse, which brings customers closer the positive power of nature. Plantasjen's employees provide customers with inspiration, knowledge and tools that serve as a natural spring for a growing life. The average number of employees in the company amounted to 1,216 in 2021.

Industry

Business area development

	Net sales				EBITA
	Q4	Q4	Q1-4	Q1-4	Q4	Q4	Q1-4	Q1-4
SEKm	2021 2021	2020 2020	2021	2020	2021	2020	2021	2020
Companies in its entirety
Diab	412	528	1,832	2,121	-19	56	56	280
HL Display	439	394	1,708	1,520	29	38	195	163
LEDiL	119	95	481	389	23	16	115	76
TFS	253	213	891	828	18	10	66	42
Companies total	1,223 1,223	1,230 1,230	4,913	4,858	51	119	432	561
Adjustment for Ratos's holding	-50	-55	-205	-224	-8	-8	-41	-38
Total, adjusted for Ratos's holding	1,173 1,173	1,175 1,175	4,709	4,634	43	111	391	524
Growth, net sales 1⁾	0%	-1%	2%	1%
EBITA margin 1⁾					3.7%	9.5%	8.3%	11.3%
1⁾ Adjusted for Ratos's holding

Diab's earnings declined significantly due to lower demand in the wind market, primarily in China, and an ongoing shift in technology.

Diab has been implementing change initiatives since 2018 to address the technological shift in the industry, which is moving away from PVC-based materials in favour of PET. The programme Diab launched in 2018 to expand its PET capacity is expected to be completed in 2022. In 2021, the shift accelerated, and Diab have a too high PVC capacity, with associated costs, and were unable to meet the increased PET demand. Sales decreased during the year due to reduced volumes in wind, which resulted in lower profit combined with overcapacity and start-up costs for PET production.

To adjust the cost base, operations in Ecuador and Lithuania were restructured, which is expected to lead to annual savings of approximately SEK 30m after a non-recurring cost of SEK 11m, which was recognised in the fourth quarter.

To balance the cost base, additional restructuring will begin during the first quarter of 2022. This restructuring is expected to cost approximately SEK 130m and reduce the cost base by approximately SEK 130m annually. The savings are expected to have full effect in 2022.

During the quarter, sales decreased by 22%, of which 47% was attributable to the wind segment, while the Marine, Industry & Aerospace segment increased by 32%.

		Q4	Q1-4
SEKm SEKm	2021 2021	2020	2021	2020
Net sales	412	528	1,832	2,121
EBITDA	15	83	175	380
EBITA	-19	56	56	280
Cash flow from operations	6	13	-40	65
Interest-bearing net debt			1,125	935
-whereof leasing liability			231	132
Growth, Net sales	-22%	8%	-14%	13%
- whereof currency effect	2%	-7%	-2%	-2%
Growth, Organic	-24%	15%	-11%	16%
EBITDA margin	3.6%	15.7%	9.5%	17.9%
EBITA margin	-4.6%	10.6%	3.1%	13.2%

Amounts referring to 100% of the company.

Diab supports manufacturers in making products more competitive and sustainable, offering the broadest range of stronger, lighter, smarter core materials for sandwich composite structures. Diab's high-performance core materials can be found in applications all over the world, in industries like marine, aerospace, wind energy and transport. The core materials have a unique combination of characteristics such as low weight, high strength, insulation properties and chemical resistance. The company has production units in Sweden, Italy, US, China, Lithuania and Ecuador combined with 14 sales units around the world. The average number of employees in the company amounted to 1,113 in 2021.

During the year, HL Display began its acquisition journey to further strengthen its position as a market leader in Europe. HL Display acquired three companies during the year: Concept Group in the UK, Cool Presentations in the Netherlands and Display Italia, all of which developed well. HL Display is entering 2022 with a strong pipeline of new acquisition candidates.

Over the past year, HL Display delivered a strong financial performance, with all-time-high sales and EBITA, where sales growth was attributable to a mix of organic and acquisition-related growth.

Sales increased 11% in the fourth quarter, driven by the acquired companies.

EBITA declined as a result of restructuring costs for portions of HL Display's Asian operations combined with increased raw material and shipping costs. Price increases were carried out during the quarter to offset the cost trend.

	Q4 Q4		Q1-4 Q1-4
SEKm SEKm	2021 2021	2020	2021	2020
Net sales	439	394	1,708	1,520
EBITDA	46	62	264	252
EBITA	29	38	195	163
Cash flow from operations	72	88	190	253
Interest-bearing net debt			223	216
-whereof leasing liability			100	83
Growth, Net sales	11%	-3%	12%	-5%
- whereof currency effect	1%	-5%	-3%	-2%
- whereof acquisition	11%		7%
Growth, Organic	-1%	2%	8%	-3%
EBITDA margin	10.5%	15.9%	15.4%	16.6%
EBITA margin	6.5%	9.6%	11.4%	10.7%

Amounts referring to 100% of the company.

Holding 99% HL Display help retailers and brands around the world to create attractive and profitable in-store environments that strengthen the consumer's shopping experience. The vision is to be the preferred partner in their industry leading the development of innovative and sustainable solutions for a better shopping experience around the world. From store communication, merchandising and secondary displays to bespoke design and services, HL Display is an expert in improving the shopping experience whilst increasing cost efficiency and maintaining environmental sustainability. HL Display has production sites in Sweden, Poland, China and the UK combined with sales units across more than 20 countries. The average number of employees in the company amounted to 1,059 in 2021.

During the last two years, LEDiL has undergone a change initiative entailing an increased customer focus, decentralised responsibility and a higher share of customised products. This has had positive results with record-high sales and EBITA for the year. The order intake was also strong during the year, which resulted in LEDiL entering 2022 with an all-time-high backlog of orders.

Sales increased 27% in the fourth quarter, driven by growth in both the indoor and outdoor segments. EBITA increased sharply by 49% over the year-earlier period, driven by higher income and improved operating efficiency.

	Q4		Q1-4
EURm EURm	2021 2021	2020	2021	2020
Net sales	11.8	9.3	47.5	37.1
EBITDA	3.0	2.4	14.5	10.5
EBITA	2.3	1.6	11.3	7.3
Cash flow from operations	3.8	1.8	12.2	7.6
Interest-bearing net debt			9.3	14.8
-whereof leasing liability			1.1	1.7
Growth, Net sales	27%	-5%	28%	-9%
- whereof currency effect	0%	-2%	-2%	0%
Growth, Organic	27%	-3%	30%	-9%
EBITDA margin	25.4%	26.1%	30.6%	28.4%
EBITA margin	19.6%	16.8%	23.9%	19.6%

Amounts referring to 100% of the company.

Holding 66% LEDiL designs, develops and sells secondary optics for LED lighting globally. Secondary optics process light from the LED to achieve the luminaries' optimal function, with the highest energy efficiency possible. Development and design are carried out in Salo, Finland. Products are sold worldwide through the company's own sales force, agents and distributors. Most production is performed by subcontractors in Finland, China and the US. The company's products are primarily used in commercial applications such as street lighting, retail and offices. The average number of employees in the company amounted to 109 in 2021.

During the last two years, TFS has carried out a change initiative to professionalise and decentralise its operations. Profitability has been a focus area, with a goal of raising the company's profitability to an industry-wide high. Despite the ongoing pandemic, TFS delivered significant and profitable growth during the year, with 9%* growth in service income and 64% growth in EBITA.

During the fourth quarter, service income increased 18%* which, together with improved efficiency, led to EBITA growth of 86% compared with the same period last year.

The market for clinical trials is growing quickly due to major investments in new treatments and increased regulatory requirements. TFS continues to increase its market share in Europe and the US.

*According to IFRS, TFS and other contract research organisations (CROs) generate two types of revenue: 1) Service sales (actual revenue-generating sales) and 2) reinvoicing of expenditure (for example, travel expenses, laboratory costs and other overheads) at no or a very low margin. In all material respects, service sales are the most important when it comes to the company's performance and earnings.

	Q4 Q4		Q1-4 Q1-4
EURm EURm	2021 2021	2020	2021	2020
Net sales	25.0	20.7	87.9	79.0
EBITDA	2.3	1.3	8.9	6.4
EBITA	1.7	0.9	6.5	4.0
Cash flow from operations	1.8	-1.4	6.8	2.0
Interest-bearing net debt			-2.1	1.8
-whereof leasing liability			2.2	2.9
Growth, Net sales	28%	-12%	11%	-10%
- whereof currency effect	-2%	0%	0%	0%
Growth, Organic	30%	-12%	11%	-9%
EBITDA margin	9.4%	6.2%	10.1%	8.1%
EBITA margin	7.0%	4.5%	7.5%	5.1%

Amounts referring to 100% of the company.

Holding 100% TFS HealthScience is a global contract research organisation (CRO) that supports biotech and pharmaceutical companies through the entire clinical development process. TFS provides custom clinical research services in more than 40 countries and supports its customers with solutions through three strong business models: Clinical Development Services (CDS), which offers clinical trials for pharmaceutical companies during the development process; Strategic Resourcing Solutions (SRS), which offers resource solutions featuring clinical professionals and targeting major pharmaceutical companies; and Functional Services (FSP), which offers customers strategic staffing solutions. The average number of employees in the company amounted to 645 in 2021.

Ratos's companies

Adjusted for Ratos's holdings

		Net sales				EBITDA
	Q4	Q4	Q1-4	Q1-4	Q4	Q4	Q1-4	Q1-4
SEKm	2021	2020	2021	2020	2021	2020	2021	2020
Aibel	1,184	973	4,124	3,846	87	63	305	225
airteam	259	274	918	932	33	40	97	96
Diab	405	508	1,802	2,040	15	80	172	365
HENT	1,570	1,568	5,876	6,306	46	40	185	181
HL Display	436	391	1,695	1,508	46	62	262	250
KVD	383	105	1,086	393	22	21	92	67
LEDiL	79	63	320	258	20	16	98	73
Oase Outdoors	5	8	363	328	-16	-11	66	43
Plantasjen	770	746	4,639	4,539	98	92	1,181	1,037
Presis Infra	169		169		29		29
Speed Group	218	142	737	508	39	32	159	113
TFS	253	213	891	827	24	13	90	67
Vestia	185		469		11		28
	5,915	4,992	23,090	21,486	453	449	2,764	2,518
Bisnode		675		2,567		167		524
Total	5,915	5,668	23,090	24,053	453	615	2,764	3,041
Change	4%		-4%		-26%		-9%
Margin					7.7%	10.9%	12.0%	12.6%
		EBITA				Profit/loss before tax
	Q4	Q4	Q1-4	Q1-4	Q4	Q4	Q1-4	Q1-4
SEKm	2021	2020	2021	2020	2021	2020	2021	2020
Aibel	66	46	224	143	77	32	150	33
airteam	31	38	90	88	30	36	85	83
Diab	-19	54	55	269	-9	13	71	167
HENT	30	27	124	126	30	27	121	100
HL Display	28	38	193	162	-77	28	74	131
KVD	10	13	52	37	-8	12	33	33
LEDiL	16	11	76	51	15	10	74	47
Oase Outdoors	-17	-12	62	38	-19	-14	55	27
Plantasjen	-21	-30	707	561	-76	-123	443	225
Presis Infra	24		24		19		19
Speed Group	18	12	81	43	8	7	57	27
TFS	18	10	66	42	17	8	53	32
Vestia	10		27		6		13
Bisnode	194	204 127	1,782	1,558 352	14	34 138	1,250	905 280
Total	194	332	1,782	1,910	14	172	1,250	1,185
Change	-42%		-7%		-92%		5%
Margin	3.3%	5.9%	7.7%	7.9%	0.2%	3.0%	5.4%	4.9%

Ratos's

			Cash flow from operations operations			Interest-bearing net debt net debt
	Q4	Q4	Q1-4	Q1-4
SEKm	2021	2020	2021	2020	2021-12-31	2020-12-31	2021-12-31
Aibel	94	145	206	140	452	620	32
airteam	11	39	34	131	5	21	70
Diab	6	12	-39	62	1,107	899	98
HENT	215	23	-31	118	-740	-368	73
HL Display	71	87	188	251	221	215	99
KVD	-110	21	-145	58	486	22	100
LEDiL	26	12	82	53	63	99	66
Oase Outdoors	-39	-22	46	103	116	125	78
Plantasjen	-204	58	88	451	4,854	4,785	99
Presis Infra	16		16		1,025		75
Speed Group	25	12	105	44	418	533	70
TFS	18	-15	69	21	-22	18	100
Vestia	-6		28		-49		62
	122	375	647	1,430	7,935	6,968
Bisnode		64		337		1,181
Total	122	439	647	1,768	7,935	8,149
Change	-72%		-63%		-3%

Financial information

Ratos Group results October–December

Adjusted operating profit amounted to SEK 215m (198). Recognised operating profit amounted to SEK 379m (198). Operating profit for the period was positively impacted by SEK 164m from revaluation of shares in Dun & Bradstreet.

Operating profit includes profit and shares of profit from the companies of SEK 264m (230).

Ratos's income and expenses attributable to the parent company and central companies amounted to SEK -50m (-34). The higher cost is mainly attributable to transaction costs of SEK 10m related to acquisitions.

Net financial items amounted to SEK -90m (-178). Interest expenses to banks were SEK -13m (-21), interest expenses for finance leases were SEK -61m (-76),

remeasurement/redemption of financial instruments was SEK -4m (-45) and currency effects were SEK -6 (-31).

Profit before tax amounted to SEK 289m (20). Tax expense for the period amounted to SEK 94m (-70). The positive tax income in the quarter was mainly due to the utilisation of previously uncapitalised tax loss carry-forward and capitalisation of the preceding year's tax loss carry-forward.

An agreement to divest Bisnode was signed in October 2020 and the transaction was completed in January 2021. This means that Bisnode is recognised as a discontinued operation and its earnings after tax are included in "Profit for the period from discontinued operations" for 2020 in the consolidated income statement.

Refer to Note 5 on page 28 for more details on earnings for the period.

Ratos Group results January–December

Adjusted operating profit totalled SEK 1,772m (1,457). Recognised operating profit amounted to SEK 1,656m (1,457). Operating profit for the period was impacted by SEK -116m from the revaluation of shares in Dun & Bradstreet.

Operating profit includes profit and shares of profit from the companies of SEK 1,924m (1,603).

Ratos's income and expenses attributable to the parent company and central companies amounted to SEK -156m (-151).

Net financial items amounted to SEK -350m (-584). Interest expenses to banks were SEK -67m (-143), interest expenses for finance leases were SEK -246m (-255), remeasurement/redemption of financial instruments was SEK -10m (-73) and currency effects were SEK -4 (-91).

Profit before tax amounted to SEK 1,306 (873). Tax expense for the period amounted to SEK -166m (-258). The lower tax expense in the period was mainly due to the utilisation of previously uncapitalised tax loss carry-forward and capitalisation of the preceding year's tax loss carryforward.

An agreement to divest Bisnode was signed in October 2020 and the transaction was completed in January 2021. This means that Bisnode is recognised as a discontinued operation and its earnings after tax are included in "Profit for the period from discontinued operations" for all periods in the consolidated income statement. Bisnode Belgium, which was acquired in January 2021 as part of the divestment of Bisnode to Dun & Bradstreet, was divested on 31 March. Bisnode Belgium is also included in "Profit for the period

from discontinued operations," as are the profit or loss effects and costs attributable to the divestment of Bisnode and Bisnode Belgium.

Refer to Note 5 on page 28 for more details on earnings for the period.

Ratos Group cash flow October–December

Cash flow for the quarter amounted to SEK -549m (-14), of which cash flow from operating activities accounted for SEK 234m (724). Cash flow from investing activities amounted to SEK -2,173m (-207) and cash flow from financing activities to SEK 1,390m (-532).

The negative cash flow for the quarter was primarily due to investing activities and the acquisition of Presis Infra. The acquisition was financed through Ratos AB's own cash and cash equivalents as well as external loans, which is why financing activities had a positive effect on cash flow during the quarter. Cash flow from operating activities declined as a result of a planned inventory build-up.

Ratos Group cash flow January–December

Cash flow for the year amounted to SEK -1,037m (40), of which cash flow from operating activities accounted for SEK 1,448m (3,201). Cash flow from investing activities amounted to SEK -258m (-694) and cash flow from financing activities to SEK -2,227m (-2,467).

The change in cash flow for the year pertained primarily to operating activities, which declined as a result of a planned inventory build-up. The largest cash flow items in investing activities came from the acquisition of Presis Infra and the sale of Bisnode. The acquisition of Presis Infra was financed through Ratos AB's own cash and cash equivalents as well as external loans, which had a positive impact on cash flow from financing activities.

Financial position and leverage

The Group's cash and cash equivalents at the end of the year amounted to SEK 2,230m (3,182) and interest-bearing net debt totalled SEK 5,850m (7,269). The Group's leverage at the end of the year amounted to 1.3x (2.3x). Excluding financial lease liabilities, leverage amounted to 0.1x (1.1x) at year-end. The total translation effect of currency for interest-bearing liabilities amounted to approximately SEK 295m, of which approximately SEK 120m related to liabilities to credit institutions and approximately SEK 175m to financial lease liabilities.

At the end of the year, the Group's interest-bearing liabilities to credit institutions amounted to SEK 2,102m (2,813). Total unutilised credit facilities amounted to SEK 875m (2,820), with predetermined interest margins. In a majority of the Group's credit facilities there is an obligation to meet, amongst other, a leverage target. During the fourth quarter all criteria were met.

When divesting Bisnode to Dun & Bradstreet at the beginning of the year, Ratos chose to invest one quarter of the equity value in Dun & Bradstreet shares, which are listed on the New York Stock Exchange. The shares were acquired at a value of SEK 924m. The fair value and book value of the shares at the

end of the year amounted to SEK 808m and are included in financial assets.

Ratos's equity

At 31 December 2021, Ratos's equity (attributable to owners of the parent) amounted to SEK 11,940m (9,366), corresponding to SEK 37 (29) per share outstanding.

Parent company

The parent company's operating loss amounted to SEK -144m (-150) for the year. The parent company's profit before tax amounted to SEK 1,755m (142), of which SEK 1,878m (134) pertains to capital gains. The capital gains pertain to the divestment of Bisnode and Bisnode Belgium, which differs from the Group's capital gains due to different accounting methods. The preceding year's capital gains pertain to the liquidation of dormant companies and had no impact on the group's consolidated profit. The parent company's cash and cash equivalents totalled SEK 294m (1,166).

Parts of Ratos's business group are financed centrally, initially with the parent company's own funds and in time, as loan requirements increase, with funds borrowed from external banks. The aim is to achieve increased control and savings for the Group. During the year, loans were issued by the parent company to Diab, HL Display, KVD, LEDiL, Oase Outdoors, Plantasjen and Presis Infra. More companies will be financed by Ratos AB during the coming year.

Ratos's share

Earnings per share for the period amounted to SEK 8.17 (2.17) before dilution and to SEK 8.10 (2.17) after dilution. Earnings per share for continuing operations amounted to SEK 2.84 (1.58) before dilution and to SEK 2.83 (1.58) after dilution. The closing price for Ratos's Class B shares on 30 December 2021 was SEK 57.95. The total return on Class B shares for full-year 2021 amounted to 53.7%, compared with the performance for the SIX Return Index, which was 39.3%.

Incentive programmes

During the year, the parent company issued warrants and a convertible debenture in accordance with the resolution of the Annual General Meeting (AGM) on 10 March 2021. In total, 725,000 warrants and 908,100 convertibles were issued.

Number of shares and repurchased/sold shares

At the beginning of the year, Ratos owned 5,126,262 Class B shares (corresponding to 1.6% of the total number of shares). During the first quarter, call option programmes from 2016 and part of 2017 were redeemed whereby 478,000 treasury shares were divested through the redemption of call options. After the redemption, Ratos owned 4,648,262 Class B shares (corresponding to 1.4% of the total number of shares). On 29 March, Ratos's Board decided to transfer 4,430,762 treasury shares. The sales process was carried out by Skandinaviska Enskilda Banken AB (publ) and resulted in the shares being transferred to Carnegie Fonder and Nordea Fonder. After the transfer of treasury shares, Ratos owned 217,500 shares (corresponding to 0.1% of the total number of shares). During the fourth quarter, an additional 155,000 treasury shares were divested through the redemption of call options, meaning that 62,500 treasury shares remained as of the closing date. During the period, 597,924 new Class B shares were issued through convertibles. At 31 December, the number of Class A and B shares outstanding amounted to 324,676,320. At 31 December 2021, the total number of shares in Ratos (Class A and B shares) amounted to 324,738,820 and the number of votes to 108,647,236.

2021 Annual General Meeting

The Annual General Meeting of Ratos will be held on 22 March 2022. The Annual General Meeting will be conducted by postal vote. The Annual Report will be available at the company's website, www.ratos.com, not later than 1 March 2022.

Proposed dividend for Class A and B shares

The Board proposes an ordinary dividend for the 2021 financial year of SEK 1.20 (0.95) per Class A and Class B share. The record date for the dividend is proposed as 24 March 2022 and dividends are expected to be paid from Euroclear Sweden on 29 March 2022.

Significant events during and after the end of the period

On 30 November, Ratos acquired 75% of the shares in Presis Infra, a leading Norwegian maintenance group in critical transportation infrastructure. Through this acquisition, Ratos has established a long-desired presence in a stable and growing market. Presis Infra is currently the second-largest player in the Norwegian market for transportation infrastructure services, such as road and tunnel maintenance, ferry quay operations and maintenance, and rockfall protection. The cash-free, debt-free purchase price (enterprise value) for 100% of the shares amounts to NOK 2,600m, which corresponds to an EV/EBITA multiple of 10.9x for the period from October 2020 to September 2021. The acquisition was financed with Ratos's own cash and bank financing. Presis Infra has annual sales of approximately NOK 1,700m and will be part of the Construction & Services business area.

On 16 December, Ratos announced the establishment of Svensk Samverkansentreprenad Aktiebolag (SSEA) Group with the ambition of becoming Sweden's leading construction group in partnering and collaboration contracts. The Ratosowned company Vestia Construction Group and HENT's Swedish operations will be part of SSEA. The foundation of SSEA Group and acquisition of HENT Sverige AB were concluded in December 2021. This transaction was just one intra-Group transaction at Ratos.

On 30 December, Speed Group (in the Construction & Services business area) acquired Dream Logistics' transport management services (4PL). The company is based in Mölndal, Sweden and is expected to have sales of SEK 100m for 2022, with an EBITA margin of approximately 3%, which is in line with other 4PL providers.

Key figures

For definitions, see page 30.

	Q1-4 Q1-4	Q1-4 Q1-4
SEKm	2021 2021	2020
Leverage, Ratos Group	1,3x	2,3x
Leverage, Ratos business group1⁾	0,5x	1,1x
Equity ratio, Ratos Group %	47.0	39.4
Return on equity, Ratos Group %	23.7	7.3
Return on capital employed, Ratos Group %	16.8	9.3
Return on capital employed, Ratos business group %	10.7	10.6
2⁾ Key figures per share 2 Key per
Total return, %	53.7	17.3
Dividend yield, %	2.1	2.5
Market price, SEK	57.95	38.48
Dividend, SEK	1.20 5)	0.95
Equity attributable to owners of the parent, SEK 3⁾	36.77	29.36
Basic earnings per share, SEK	8.17	2.17
Diluted earnings per share, SEK	8.10	2.17
Average number of ordinary shares outstanding:
– before dilution	322,945,842	319,014,634
– after dilution	326,332,029	321,037,084
Total number of registered shares	324,738,820	324,140,896
Number of shares outstanding ⁴⁾	324,676,320	319,014,634
– of which, Class A shares	84,637,060	84,637,060
– of which, Class B shares	240,039,260	234,377,574

1⁾ Incl. parent company cash and liabilities to credit institutions, excluding the companies financial leasing liabilities

2⁾ Relates to Class B shares unless specified otherwise

3⁾ Equity attributable to owners of the parent divided by the number of outstanding ordinary shares at the end of the period

⁴⁾ After redemption and transfer of Ratos own shares

⁵⁾ Proposed dividend

Financial statements

Consolidated income statement

SEKm	Q4 2021	Q4 2020	Q1-4 2021	Q1-4 2020
Net sales	5,754	4,844	22,551	20,941
Other operating income	95	17	183	70
Cost of goods and services sold	-3,600	-2,910	-13,445	-12,624
Employee benefit costs	-1,310	-1,095	-4,855	-4,358
Depreciation/amortisation and impairment of property, plant and equipment, intangible assets and right-of-use assets	-273	-250	-1,014	-966
Other external costs	-552	-448	-1,840	-1,650
Capital gain from Group companies	2	0	2	0
Share of profit/loss from investments recognised according to the equity method	99	40	189	44
Revaluation listed shares	164		-116
Operating profit	379 379	198 198	1,656	1,457
Financial income	39	2	72	26
Financial expenses	-129	-180	-422	-610
Net financial items	-90	-178	-350	-584
Profit before tax	289	20	1,306	873
Income tax	94	-70	-166	-258
Profit for the period, continuing operations1⁾	383	-50	1,139	614
Profit for the period, discontinued operations		147	1,715	269
Profit for the period	383	97	2,855	883
Profit for the period attributable to:
Owners of the parent	308	16	2,637	693
Non-controlling interests	75	81	218	191
Earnings per share, SEK
- basic earnings per share	0.95	0.05	8.17	2.17
- diluted earnings per share	0.94	0.05	8.10	2.17
Earnings per share from continuing operations, SEK
- basic earnings per share	0.95	-0.27	2.84	1.58
- diluted earnings per share	0.94	-0.27	2.83	1.58

1⁾ Profit for the period from continuing operations attributable to the owners of the parent for Q4 amounts to SEK 308m (-86) and for Q1-4 to SEK 918m (505). Profit for the period from continuing operations attributable to non-controlling interests for Q4 amounts to SEK 75m (36) and for Q1-4 to SEK 221m (109).

Consolidated statement of comprehensive income

Q4	Q4	Q1-4	Q1-4
2021	2020	2021	2020
383	97	2,855	883
1	12	-49	-30
-2	-1	-2	5
-1	11	-51	-25
112	-228	291	-480
-17	8	41	-34
4	-6	-9	2
99	-226	323	-512 -512
97	-215	271	-537 -537
480	-118	3,126	346 346
395	-148	2,879	278
85	30	247	69
	99 97 480	-226 -215 -118	323 271 3,126

Summary consolidated statement of financial position

ASSETS Non-current assets Goodwill 10,028 6,958 Other intangible non-current assets 1,390 1,123 Property, plant and equipment 1,503 1,198 Right-of-use assets 5,006 4,677 Financial assets 2,157 1,072 Deferred tax assets 303 156 Total non-current assets 20,387 20,387 15,185 Current assets Inventories 1,903 1,075 Current receivables 3,865 3,094 Cash and cash equivalents 2,230 2,826 7,998 7,998 6,995 Assets held for sale 6,458 Total current assets 7,998 7,998 13,453 13,453 Total assets 28,385 28,385 28,638 28,638
EQUITY AND LIABILITIES
Equity including non-controlling interests 13,326 13,326 11,281
Non-current liabilities
Interest-bearing liabilities 7,191 6,760
Non-interest bearing liabilities 836 257
Pension provisions 76 86
Other provisions 39 28
Deferred tax liabilities 440 275
Total non-current liabilities 8,582 8,582 7,405
Current liabilities
Interest-bearing liabilities 891 1,601
Non-interest bearing liabilities 5,166 4,403
Provisions 421 447
6,477 6,477 6,451 6,451
Liabilities attributable to assets held for sale 3,501
Total current liabilities 6,477 6,477 9,952
Total liabilities 15,059 15,059 17,357
Total equity and liabilities 28,385 28,385 28,638 28,638

Summary statement of changes in consolidated equity

		2021-12-31 2021-12-31			2020-12-31 2020-12-31
SEKm	Owners of the parent	Non controlling interest Total	interest Total equity	Owners of the parent	Non controlling interest	Total equity
Opening equity	9,366	1,915	11,281	9,298	1,920	11,218
Total comprehensive income for the period	2,879	247	3,126	278	69	346
Dividends	-303	-3	-306	-207	-75	-283
Non-controlling interests' share of capital contribution and new issue		0	0		2	2
Transfer of treasury shares	227		227
Conversion of converible loan to shares	16		16
The value of the conversion option of the convertible debentures	5		5	2		2
Option premiums	5		5	0		0
Share options redeemed by employees	-6		-6
Put options, future acquisitions from non-controlling interests	-207	-357	-564		-5	-5
Acquisition of shares in subsidiaries from non-controlling interests	-31	-7	-38	-12	-7	-19
Disposal of shares in subsidiaries to non-controlling interests	-10	19	8	7	11	19
Non-controlling interests at acquisition		493	493
Non-controlling interests in disposals		-921	-921
Closing equity	11,940 11,940	1,387 1,387	13,326	9,366	1,915	11,281

Consolidated statement of cash flows

	Q4	Q4	Q1-4	Q1-4
SEKm	2021 2021	2020 2020	2021	2020
Operating activities
Operating profit, continuing operations	379	198	1,656	1,457
Operating profit, discontinued operations		174	1,721	472
Adjustment for non-cash items	-16	258	-960	1,332
	362	629	2,416	3,261
Income tax paid	-114	-33	-265	-223
Cash flow from operating activities before change in working capital n capital	248 248	596	2,151	3,038
Cash flow from change in working capital
Increase (-)/Decrease (+) in inventories	-306	-41	-459	-109
Increase (-)/Decrease (+) in operating receivables	71	50	-38	264
Increase (+)/Decrease (-) in operating liabilities	221	119	-206	7
Cash flow from operating activities	234 234	724 724	1,448	3,201
Investing activities
Acquisition, group companies	-2,084	-4	-2,492	-38
Disposal, group companies	8	2	2,634	2
Investments and disposal, intangible assets/property, plant and equipment	-114	-205	-419	-664
Investments and disposal, financial assets	14	-0	15	0
Interest received	2	1	4	6
Cash flow from investing activities	-2,173 -2,173	-207 -207	-258	-694
Financing activities
Non-controlling interests' share of issue/capital contribution	0		0	2
Transfer of treasury shares	8		227
Option premiums paid	0		5	3
Repurchase/final settlements options	-5	-33	-243	-39
Acquisition and disposal of shares in subsidiaries from non-controlling interests	2	6	-29	-0
Dividends paid		-207	-303	-207
Dividends paid, non-controlling interests	-3	-75	-3	-75
Borrowings	1,825	165	2,361	795
Amortisation of loans	-250	-135	-3,279	-1,832
Interest paid	-88	-101	-339	-439
Amortisation of financial lease liabilitities	-99	-150	-623	-673
Cash flow from financing activities	1,390 1,390	-532 -532	-2,227	-2,467
Cash flow for the period	-549 -549	-14 -14	-1,037	40
Cash and cash equivalents at the beginning of the period	2,788	3,218	3,182	3,219
Exchange differences in cash and cash equivalents	-9	-22	84	-77
Cash and cash equivalents at the end of the period	2,230	3,182	2,230	3,182
- attributable to continuing operations	2,230	2,826	2,230	2,826
- attributable to discontinued operations		356		356

Parent company income statement

	Q4	Q4	Q1-4	Q1-4
SEKm	2021 2021	2020 2020	2021	2020
Other operating income	5	5	8	5
Administrative expenses	-48	-39	-152	-155
Depreciation of property, plant and equipment	-0	-0	-0	-0
Operating loss	-43 -43	-34 -34	-144	-150
Gain from sale of participating interests in group companies		69	1,878	134
Dividends from group companies				175
Result from other securities and receivables accounted for as non-current assets	0	1	-70	1
Other interest income and similar profit/loss items	23	0	53	0
Interest expenses and similar profit/loss items	-34	-15	-59	-18
Profit/loss after financial items	-53	21	1,658	142
Group contribution, recieved	97		97
Profit before tax	44	21	1,755	142
Income tax	75	0	76	0
Profit for the period	119	21	1,831	143

Parent company statement of comprehensive income

	Q4	Q4	Q1-4	Q1-4
SEKm	2021 2021	2020 2020	2021	2020
Profit for the period	119	21	1,831	143
Other comprehensive income for the period	0	0	0	0
Total comprehensive income for the period	119	21	1,831	143

Summary parent company balance sheet

SEKm	2021-12-31 2021-12-31	2020-12-31
ASSETS
Non-current assets
Property, plant and equipment	2	1
Financial assets	7,975	7,602
Receivables from group companies	4,029
Deferred tax assets	75
Total non-current assets	12,081 12,081	7,603
Current assets
Current receivables	35	16
Receivables from group companies	1,145	7
Cash and cash equivalents	294	1,166
Total current assets	1,474 1,474	1,189
Total assets	13,555 13,555	8,792
EQUITY AND LIABILITIES
Equity	9,994 9,994	8,219 8,219
Non-current liablities
Interest-bearing liabilities, group companies	670	391
Interest-bearing liabilities	1,908	48
Non-interest bearing liabilities		14
Convertible debentures	75	54
Deferred tax liabilities	2	1
Total non-current liabilities	2,655 2,655	508
Current provisions	65	10
Current liabilities Interest-bearing liabilities, group companies	664
Interest-bearing liabilities	41	1
Non-interest bearing liabilities, group companies	79
Non-interest bearing liabilities	57	53
Total current liabilities	842	54
Total equity and liabilities	13,555 13,555	8,792 8,792

Summary statement of changes in parent company's equity

SEKm	2021-12-31 2021-12-31	2020-12-31
Opening equity	8,219 8,219	8,281 8,281
Comprehensive income for the period	1,831	143
Dividends	-303	-207
Transfer of treasury shares	227
Excercise of options	-6
Conversion of convertible loan to shares	16
The value of the conversion option of the convertible debentures	6	3
Deferred tax, conversion option	-1	-1
Option premiums	5	0
Closing equity	9,994 9,994	8,219 8,219

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. Reporting and measurement principles are unchanged compared with those applied in Ratos's 2020 Annual Report. The new and revised IFRS standards which came into force in 2021 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.

In this report, Ratos reports its previous holding in Bisnode as a discontinued operation since Ratos signed an agreement pertaining to the sale to Dun & Bradstreet in October 2020. The sale was completed in January 2021. In accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, Bisnode's profit after tax is reported on a separate row in the income statement for 2021 and 2020. In the statement of financial position, Bisnode's assets and related liabilities are reported on separate rows for 31 December 2020. Bisnode had no effect on the fourth quarter of 2021. The holding in Bisnode Belgium that was acquired and divested in 2021 is also reported as discontinued operations in the income statement for 2021.

Note 2 Risks and uncertainties

Ratos is a business group that makes it possible for independent mid-sized companies to develop more rapidly by being a part of something larger. A focus on people, leadership, culture and values is a key component of Ratos. These operations include inherent risks attributable to both Ratos and the companies. 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.

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 2020 Annual Report.

Parts of Ratos's business group are financed centrally, initially with the parent company's, Ratos AB, own funds and in time, as loan requirements increase, with funds borrowed by Ratos AB from external banks. The aim is to achieve savings in the form of a return on Ratos's existing funds, and in time, lower financing costs for the Group. Work is also under way to streamline liquidity management and surplus liquidity by establishing a so-called cash pool for different currencies and companies in the Group. This means that Ratos AB's taxation under the rules for investment companies are considered to have ceased as of the third quarter of 2021, and instead the company is taxed under conventional income tax regulations. In the fourth quarter, this meant that the Parent Company received Group contributions from one subsidiary and that portions of the loss carry-forward were capitalised with deferred tax liabilities (SEK 75m).

The ongoing Covid-19 pandemic had an impact on earnings for the year and creates uncertainty for Ratos's financial development for 2022. The impact of the Covid-19 pandemic on Ratos's companies varies, since they are active in different segments, industries and geographies. Ratos's business model, with clearly decentralised earnings responsibility, entails that the companies make decisions independently and make adaptations to the prevailing circumstances. The effect on the measurement of balancesheet items has been limited to date.

Note 3 Alternative performance measures

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. The tables displayed with a tinted background are APMs. 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 30 of this report.

Net sales

	Q4	Q4	Q1-4	Q1-4
SEKm	2021 2021	2020 2020	2021	2020
Ratos business group, Net sales	5,915 5,915	5,668 5,668	23,090	24,053
Net sales in subsidiaries, holding not owned by Ratos	1,023	1,116	3,585	4,419
Subsidiaries divested during current year		-966		-3,673
Investments recognised according to the equity method	-1,184	-973	-4,124	-3,846
Eliminations	0	-1	-0	-12
Ratos Group, Net sales	5,754 5,754	4,844 4,844	22,551	20,941

Organic growth, Ratos's holding

	Q4	Q4	Q1-4	Q1-4
SEKm	2021 2021	2020 2020	2021	2020
Ratos business group, Growth Net Sales, %	4.4% 4.4%	-8.9% -8.9%	-4.0%	-1.8%
Ratos business group, Net sales	5,915 5,915	5,668 5,668	23,090	24,053
Acquired net sales	528	4	1,139	40
Effects from change in currency	194	-381	108	-1,227
Ratos business group, adjusted Net Sales	5,193 5,193	6,044 6,044	21,843	25,240
Divested net sales in the comparison period	675	1	2,567	231
Ratos business group, adjusted Net Sales in the comparison period	4,992 4,992	6,223 6,223	21,486	24,251
Ratos business group, Organic growth	201 201	-180 -180	357	989
Ratos business group, Organic growth, %	3.5% 3.5%	-2.9% -2.9%	1.5%	4.0%

EBITDA, EBITA and Group operating profit

	Q4	Q4	Q1-4	Q1-4
SEKm	2021 2021	2020 2020	2021	2020
Ratos business group, EBITDA	453 453	615 615	2,764	3,041
Depreciation and impairment	-259	-284	-982	-1,131
Ratos business group, EBITA	194 194	332 332	1,782	1,910
Ratos business group, EBITA margin	3.3% 3.3%	5.9% 5.9%	7.7%	7.9%
EBITA in subsidiaries, holding not owned by Ratos	50	90	209	308
Subsidiaries divested during current year		-182		-504
Investments recognised according to the equity method	32	-6	-36	-100
Revaluation listed shares	164		-116
Income and expenses attributable to the parent company and central
companies	-50	-34	-156	-151
Other	1	1	3	3
Ratos Group, EBITA	390 390	200 200	1,686	1,468
Amortisation and impairment of intangible assets in connection with
company acquisitions	-11	-3	-31	-12
Ratos Group, Operating profit/loss	379 379	198 198	1,656	1,457

Cash flow from operations

	Q4	Q4	Q1-4	Q1-4
SEKm	2021 2021	2020 2020	2021	2020
Ratos business group, Cash flow from operations	122 122	439 439	647	1,768
Cash flow from operations in subsidiaries, holding not owned by Ratos	99	60	127	327
Cash flow from operations, holdings divested during current year			40
Investments recognised according to the equity method	-94	-145	-206	-140
Investement and disposals, intangible assets/property, plant and equipment	114	205	419	664
Lease payment	158	228	866	932
Income tax paid	-114	-33	-265	-223
Attributable to the parent company and central companies	39	150	110	51
Eliminations	-90	-179	-290	-180
Ratos Group, Cash flow from operating activities	234 234	724 724	1,448	3,201

Interest-bearing net debt

SEKm	2021-12-31 2021-12-31	2020-12-31 2020-12-31
Ratos business group, Interest-bearing net debt	7,935 7,935	8,149 8,149
Interest-bearing net debt in subsidiaries, holding not owned by Ratos	356	777
Investments recognised according to the equity method	-452	-620
Internal loans	-3,762
Attributable to the parent company and central companies	1,765	-1,061
Other	7	23
Ratos Group, Interest-bearing net debt	5,850 5,850	7,269

	2021-12-31 2021-12-31	2020-12-31 2020-12-31
Interest-bearing liabilities, other	2,575	4,503
Interest-bearing liabilities, leasing	5,507	5,362
Provisions for pensions	76	629
Interest-bearing assets	-78	-43
Cash and cash equivalents	-2,230	-3,182
Ratos Group, Interest-bearing net debt	5,850 5,850	7,269

Note 4 Acquired and divested businesses

Acquisitions within subsidiaries

HL Display

On 4 March, HL Display acquired Concept Group, a UK supplier of store solutions and services with annual sales of approximately GBP 5.4m and 65 employees.

On 1 April, HL Display acquired the company

CoolPresentation, thus strengthening its market position in the Netherlands. CoolPresentation has established a strong position in the Dutch market with high-quality products and services for grocery retailers, pharmacies and brand manufacturers. CoolPresentation has approximately SEK 40m in annual sales.

On 1 September, HL Display acquired the company Display Italia, with annual sales of approximately SEK 100m. The acquisition strengthened HL Display's customer base and position as a market-leading supplier of in-store communication solutions for grocery retailers in Europe.

Refer to the preliminary purchase price allocation for the acquisitions below.

Preliminary purchase price allocation (PPA), add- purchase price add-on acquisition HL Display HL Display

	SEKm
Intangible assets	3
Property, plant and equipment	7
Right-of-use assets	27
Financial assets	0
Deferred tax asset	3
Trade receivables	45
Current assets	22
Cash and cash equivalents	23
Deferred tax liability	-0
Non-current liabilities and provisions	-40
Current liabilities	-32
Net identifiable assets and liabilities	56
Goodwill	107
Purchase price	163
of which, paid in cash	156
of which, contingent consideration	8

KVD

On 16 July, KVD acquired Forsbergs Fritidscenter, which is the largest mobile home dealer in the Nordics. With this acquisition, KVD expanded its range and strengthened its offering to the end consumer. Forsbergs has annual sales of approximately SEK 940m.

Preliminary purchase price allocation (PPA), add- Preliminary purchase add-on acquisition KVD

	SEKm
Intangible assets	1
Property, plant and equipment	20
Right-of-use assets	40
Trade receivables	12
Current assets	212
Cash and cash equivalents	56
Deferred tax liability	-10
Non-current liabilities	-75
Current liabilities	-81
Net identifiable assets and liabilities	176
Goodwill	96
Purchase price	272
of which, paid in cash	272

Speed Group

On 30 December, Speed Group acquired shares in a subsidiary of Dream Logistics that provides transport management services, known as fourth-party logistics (4PL). The company is based in Mölndal, Sweden and is expected to have sales of SEK 100m for 2022, with an EBITA margin of approximately 3%, which is in line with other 4PL providers. Refer to the preliminary purchase price allocation for the acquisition below.

Preliminary purchase price allocation (PPA), add- Preliminary purchase add-on acquisition Speed Group Group

	SEKm
Intangible assets	4
Property, plant and equipment	0
Trade receivables	11
Current assets	0
Cash and cash equivalents	3
Non-controlling interest	-2
Deferred tax liability	-1
Current liabilities and provisions	-16
Net identifiable assets and liabilities and liabilities	0 0
Goodwill	7
Purchase price	7
of which, paid in cash	7

Plantasjen

On 17 December, Plantasjen acquired shares in the property company Kaggen Gård AS. The transaction is not considered of material importance for the Ratos Group.

Divestments within subsidiaries

On 30 December, KVD carried out a transaction entailing the sale of shares in the subsidiary Smart365. The transaction is not considered of material importance for the Ratos Group.

Acquisition of Vestia

On 9 April, Ratos acquired 62.8% of the shares of the construction company Vestia Construction Group, active in the Gothenburg market. Vestia works in accordance with a so-called "partnering model", whereby work is based on a target budget and Vestia is paid running costs coupled with a predetermined fee.

The total purchase price for the shares in Vestia Construction Group amounted to SEK 262m, of which Ratos's share amounted to SEK 165m. A maximum contingent consideration of SEK 95m may be paid depending on EBITA for the period from July 2020 to June 2023. The fair value of the contingent consideration amounted to SEK 77m on the acquisition date and corresponds with the carrying amount. Goodwill in the preliminary purchase price allocation amounts to SEK 232m and is attributable to the company's growth and business model. This goodwill is not expected to be tax-deductible.

Vestia has been included in the Ratos Group from the date of acquisition, with net sales of SEK 754m and profit before tax of SEK 21m. For full-year 2021, net sales amounted to SEK 932m and profit before tax to SEK 23m. Acquisition related transaction costs amounted to approximately SEK 3.8m.

Preliminary purchase price allocation (PPA), Vestia

	SEKm
Customer contracts	45
Property, plant and equipment	0
Right-of-use assets	6
Trade receivables	79
Current assets	5
Cash and cash equivalents	33
Deferred tax liability	-9
Non-current liabilities and provisions	-23
Current liabilities	-105
Net identifiable assets and liabilities	31
Goodwill	232
Purchase price	262
of which, paid in cash	185
of which, contingent consideration	77

Acquisition of Presis Infra

On 30 November, Ratos acquired 75% of the shares in Presis Infra, a leading Norwegian maintenance group in critical transportation infrastructure. Presis Infra is currently the second-largest player in the Norwegian market for transportation infrastructure services, such as road and tunnel maintenance, ferry quay operations and maintenance, and rockfall protection.

The purchase price for the shares in Presis Infra totalled NOK 2.6 billion, of which Ratos's portion is SEK 1.95 billion. Goodwill in the preliminary purchase price allocation amounts to SEK 2.2 billion and is attributable to the company's growth and business model. This goodwill is not expected to be tax-deductible.

Presis Infra has been included in the Ratos Group from the date of acquisition, with net sales of SEK 225m and profit before tax of SEK 26m. For full-year 2021, net sales amounted to SEK 1,922m and profit before tax to SEK 287m. Acquisition related transaction costs amounted to SEK 8.5m.

Preliminary purchase price allocation (PPA), Presis Preliminary purchase Presis Infra , Infra

	SEKm
Intangible assets	291
Property, plant and equipment	35
Right-of-use assets	252
Financial assets	22
Deferred tax asset	0
Trade receivables	307
Current assets	86
Cash and cash equivalents	207
Non-controlling interest	-28
Deferred tax liability	-38
Non-current liabilities and provisions	-240
Current liabilities and provisions	-556
Net identifiable assets and liabilities	337
Goodwill	2,219
Purchase price	2,556
of which, paid in cash	2,556

Divestment of Bisnode

In October 2020, Ratos signed an agreement to divest all of the shares in Bisnode, excluding its operations in Belgium, for an enterprise value of SEK 7,200m for 100% of the company. Ratos's holding amounts to 70%. In January 2021, Ratos completed the sale of Bisnode to Bisnode's partner Dun & Bradstreet. The equity value for Ratos's holding of 70% was SEK 3,860m, yielding a consolidated capital gain of SEK 1,816m. A specification of Bisnode's divested operations and the effect on

Income statement from discontinued operations Income from operations

the consolidated statement of financial position and statement of cash flows is presented below.

Acquisitions and divestment of Bisnode Belgium

For the divestment of Bisnode to Dun & Bradstreet, Bisnode's Belgian operations were not included in the transaction. Bisnode Belgium was included in the Ratos Group in the first quarter. On 31 March 2021, Ratos signed an agreement to divest Bisnode Belgium. The consolidated capital loss amounted to SEK 25m.

	Q4	Q4	Q1-4	Q1-4
SEKm	2021	2020	2021	2020
Income		968	105	3,691
Expenses		-771	-116	-3,291
Profit/loss before tax		197	-10	400
Tax		-50	-1	-131
Profit/loss after tax		147 147	-11 -11	269
whereof Bisnode		147	9	269
Capital gain from divestment of discontinued operations			1,727
whereof Bisnode			1,816
Total profit for the period		147	1,715	269
Profit for the period attributable to:
Owners of the parent		103	1,719	189
Non-controlling interests		44	-3	81
Earnings per share, SEK
- basic earnings per share		0.32	5.32	0.59
- diluted earnings per share		0.32	5.28	0.59

Cash flow statement from discontinued operations statement discontinued

	Q4	Q4	Q1-4	Q1-4
SEKm	2021	2020	2021	2020
Cash flow from operating activities		158	61	655
Cash flow from investing activities		-54	2,636	-224
Cash flow from financing activities		-102	-191	-192
Change in cash and cash equivalents		1	2,506	238

Net assets at time of divestment Net assets time of divestment

Assets and liabilities that were part of the discontinued operation in Bisnode are presented below.

SEKm	2021-01-08
Goodwill	4,186
Other intangible non-current assets	720
Property, plant and equipment	28
Right-of-use assets	141
Financial assets	24
Deferred tax assets	206
Current receivables	650
Cash and cash equivalents	247
Non-controlling interest	-881
Non-current interest-bearing liabilities	-631
Non-current non-interest bearing liabilities	-148
Current interest-bearing liabilities	-1,162
Current non-interest bearing liabilities	-1,338
Divested net assets	2,044
Capital gain, excluding transaction costs	1,816
Consideration transferred	3,860
Shares in Dun & Bradstreet, non-cash	-924
Less: cash in divested operations	-247
Total effect on cash flow	2,690

Note 5 Operating segments

	Net sales				EBITA and operating profit 1⁾
	Q4	Q4	Q1-4	Q1-4	Q4	Q4	Q1-4	Q1-4
SEKm	2021 2021	2020 2020	2021	2020	2021	2020	2021	2020
Aibel					98	39	188	43
airteam	370	392	1,311	1,331	44	54	128	126
HENT	2,151	2,149	8,054	8,644	41	36	170	172
Speed Group	318	203	1,060	726	27	17	117	62
Construction & Services	2,840 2,840	2,744 2,744	10,426	10,701	209	147	603	403
KVD	383	105	1,086	393	10	13	52	37
Oase Outdoors	7	10	463	418	-21	-15	79	48
Plantasjen	777	753	4,682	4,582	-21	-30	713	566
Consumer	1,166	869	6,232	5,393	-33	-32	845	651
Diab	412	528	1,832	2,121	-19	56	56	280
HL Display	439	394	1,708	1,520	29	38	195	163
LEDiL	119	95	481	389	23	16	115	76
TFS	253	213	891	828	18	10	66	42
Industry	1,223 1,223	1,230 1,230	4,913	4,858	51	119	432	561
Total companies all reported periods all periods	5,229 5,229	4,844	21,571	20,952	227	233	1,880	1,615
Presis Infra	225		225		32		32
Vestia	299		754		16		43
Total companies acquired during reported periods	525 525		980 980		48		75
Elimination of sales internal	0	-1	-0	-12
	5,754 5,754	4,844 4,844	22,551	20,941	275	233	1,955	1,615
Total net sales and EBITA, companies
Revaluation listed shares					164		-116
Income and expenses in the parent company and central companies					-50	-34	-156	-151
Other					1	1	3	3
Consolidated EBITA continued operations					390 390	200 200	1,686	1,468
Amortisation and impairment of intangible assets in connection with
company acquisitions					-11	-3	-31	-12
Consolidated operating profit continued operations					379 379	198 198	1,656	1,457
Bisnode		966	60	3,673		175	13	473
Bisnode Belgium			45				-19
Total companies divested during reported periods		966	104	3,673		175	-6	473
Bisnode							1,816
Other							-89
Total exit gains							1,727
Consolidated net sales and operating profit	5,754 5,754	5,810 5,810	22,655	24,614	379	372	3,377	1,929

1⁾ Subsidiaries are included with 100% in consolidated profit/loss. Investments recognised according to the equity method are included with holding percentage of profit/loss including tax for the period.

	Q4	Q4	Q1-4	Q1-4
SEKm	2021 2021	2020 2020	2021	2020
Break down of net sales
Sales of goods	2,108	1,857	10,152	9,314
Service contracts	751	388	2,036	1,461
Construction contracts	2,821	2,541	10,120	9,964
Reimbursable expenditures	73	57	242	202
	5,754 5,754	4,844 4,844	22,551	20,941

Note 6 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 31 December 2021, the total value of financial instruments measured at fair value in accordance with level three was SEK 1,167m (643). This change was mainly attributable to the exercising of synthetic options in conjunction with the sale of subsidiaries, options to minority holders in conjunction with the acquisition of Presis Infra, and additional contingent considerations in connection with the acquisition of subsidiaries.

In the statement of financial position at 31 December 2021, the net value of derivatives amounted to SEK -36m (-31), of which SEK 13m (1) was recognised as an asset and SEK 49m (33) as a liability.

Note 7 Goodwill

Goodwill changed during the period as shown below.

	Accumulated	Accumulated
SEKm	cost	impairment impairment	Total Total
Opening balance 1 January 2021	8,302	-1,344	6,958
Business combinations	2,785		2,785
Divested companies	-5		-5
Translation differences for the period	331	-42	289
Closing balance 31 December 2021	11,413 11,413	-1,385	10,028
		-1,385

Note 8 Related party disclosures

Transactions with related parties are made on market terms.

Parent company

The parent company has a related party relationship with its Group companies. For more information, refer to Note 29 in the 2020 Annual Report. The parent company has no pledged assets. The parent company has contingent liabilities to subsidiaries and associates amounting to SEK 131m (554).

The parent company's transactions with subsidiaries and associates for the period and the parent company's balance sheet items in relation to its subsidiaries and associates at the end of the period are presented below. During the year, the parent company commenced work for Ratos's business group to be financed centrally and issued loans to Diab, HL Display, KVD, LEDiL, Oase Outdoors, Plantasjen and Presis Infra. The decline in contingent liabilities was due to the fact that bank guarantees for Plantasjen expired in connection with the repayment of the company's bank loans.

No unusual business transactions of material value occurred between Ratos and Board members or other senior executives of the Group.

	Q1-4 Q1-4	Q1-4
SEKm	2021	2020
Financial income	48
Other income	5	5
Capital contribution		288
Dividend		175

SEKm SEKm	2021-12-31	2021-12-312021-12-31 2020-12-31 2020-12-31
Receivable	4,904	7
Provision	60
Liability	749	391
Contingent liability	131	554

Note 9 Exchange rates

Exchange rates, average

	Q1-4 Q1-4	Q1-4
SEK	2021	2020
Danish crowns, DKK	1.364	1.407
Euro, EUR	10.145	10.487
Norwegian crowns, NOK	0.998	0.979

Exchange rates, closing

SEK SEK	2021-12-31 2021-12-31 2021-12-31	2020-12-31
Danish crowns, DKK	1.375	1.349
Euro, EUR	10.227	10.038
Norwegian crowns, NOK	1.025	0.955

Definitions

Certain of the following performance measures are presented for Ratos's business group – both for the companies in their entirety (100%) regardless of Ratos's holding and also presented adjusted for the size of Ratos's holding in each company. When performance measures are presented adjusted for Ratos's holdings the performance measure is multiplied by the percentage of the holding. For example: Ratos's holding amounts to 70% and the company's EBITA is SEK 100m for the period, EBITA adjusted for Ratos's holdings then amounts to SEK 70m (70% x SEK 100m).

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 divided by average equity attributable to owners of the parent.

Return on capital employed

EBITA for the last 12 months as a percentage of average capital employed 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.

Adjusted operating profit

Operating profit for the Group excluding revaluation of listed shares.

Adjusted profit

Profit for the period for the Group excluding revaluation of listed shares.

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. Dilution resulting from convertible debt instruments is calculated by increasing the number of shares by the total number of shares to which the convertibles correspond and increasing earnings by the recognised interest expense after tax. Potential ordinary shares are considered to have a dilutive effect only during periods when they result in lower earnings or a higher loss per share.

Interest-bearing net debt

Interest-bearing liabilities and pension provisions minus interest-bearing assets and cash and cash equivalents.

Cash flow from operations

Cash flow from operating activities, excluding paid tax, but including cash flow from investments and divestments of intangible assets and property, plant and equipment, as well as amortisation of lease liabilities and interest paid on leasing.

Capital employed

Equity, non-controlling interests and interest-bearing liabilities.

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.

Telephone conference

14 February 9:00 a.m. SE: +46 8 566 426 93 UK: +44 333 300 9264 US: +1 646 722 4903

Financial calendar

2022

Publication of Ratos 2021 Annual Report 1 March Annual General Meeting 22 March Interim report Q1 2022 2 May Interim report Q2 2022 18 July Interim report Q3 2022 24 October

Stockholm, 14 February 2022 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, +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. CET on 14 February 2022

Ratos AB (publ) Sturegatan 10, Mailbox 511 SE-114 11 Stockholm Tel: +46 8 700 17 00 www.ratos.com Reg. no. 556008-3585

Ratos is a business group consisting of 13 companies divided into three business areas: Construction & Services, Consumer and Industry. Our business concept is to develop companies headquartered in the Nordics that are or can become market leaders. We enable independent companies to excel by being part of something larger. A focus on people, leadership, culture and values is a key component of Ratos. Everything we do is based on Ratos's core values: Simplicity, Speed in Execution and It's All About People.