Drottninggatan 2 Box 1661 SE-111 96 Stockholm Sweden Org nr/Corp. Id no. 556008-3585 Phone +46 8 700 17 00 Fax +46 8 10 25 59 www.ratos.se

Interim Report January – June 2007

CEO ARNE KARLSSON COMMENTS ON THE REPORT AT www.ratos.se TELEPHONE CONFERENCE 10.00 a.m. CET, tel no. +46 8 505 201 10

Profit before tax SEK 2,480m (1,048)
Earnings per share SEK 13.24 (4.57)
Five new holdings in the portfolio AH Industries, Contex, EuroMaint, HÅG/RH/RBM and MCC
Strong development and high transaction activity in holdings
Entire holding in Bluegarden sold
Property sale within Arcus Gruppen capital gain SEK 731m
Total return on Ratos shares +41%

Important events

The period was characterised by a high level of transaction activity, for both Ratos and the holdings. Five new holdings were added to the portfolio, two after the end of the period.

At the beginning of 2007 acquisition was completed of 85% of the office chair producers RH Form (Sweden) and RBM (Denmark) and 100% of the Norwegian chair company HÅG was acquired in June. The intention is to merge these three companies into a single group, in which Ratos will own 85%. Ratos has invested a total of SEK 747m in HÅG/RH/RBM.

Mobile Climate Control (MCC) was acquired in April. MCC offers complete climate systems for buses and construction vehicles, with approximately 60% of sales in North America and the rest in Europe. Ratos's investment amounts to SEK 298m for a 60% holding.

In June, an agreement was signed for acquisition of 100% of EuroMaint, which is Sweden's leading train maintenance company. In 2006 the company's sales exceeded SEK 2 billion with an operating profit (EBITA) of SEK 102m. Ratos's investment amounts to SEK 440m.

After the end of the period, agreements were concluded for acquisition of the Danish companies AH Industries and Contex Holding. AH Industries supplies components and services to customers within the wind power, marine and offshore industries. The company's sales totalled SEK 470m in 2006 with an operating profit (EBITA) of SEK 91m. The company has 180 employees. Ratos's investment amounts to SEK 296m for a 66% holding. Contex is the world leader within development, manufacture and marketing of advanced two- and three-dimensional image solutions. Contex had sales of SEK 901m in 2006 and achieved an operating profit of SEK 165m. Ratos's investment in Contex amounts to approximately SEK 600m for a 100% stake in the company.

The entire holding in Bluegarden was sold to the Danish company Multidata in June. The sale generated an exit gain for Ratos of SEK 160m and an average annual return (IRR) of 6%. In December 2006 Ratos concluded an agreement to sell the entire holding in Alimak Hek. The deal was finalised in January and provided an exit gain of SEK 727m, corresponding to an average annual return (IRR) of 30%.

A number of add-on acquisitions and divestments were made by the holdings. Arcus Gruppen sold its property in central Oslo which resulted in a capital gain for the company of NOK 645m. Inwido acquired three companies during the first half of the year. Bisnode has made a total of 13 acquisitions and 3 divestments during 2007. The Norwegian company Jøtul acquired the flue pipe and chimney accessories company Hammerstrøm. GS-Hydro sold its Norwegian property which resulted in a capital gain of NOK 27m. Haglöfs sold Alfa Skofabrik in Norway. Superfos acquired the Swedish company Mipac. After the end of the period, Atle Industri sold its subsidiary Moving Hjulex which generated a capital gain for Atle Industri of SEK 26m. More information about important events in the holdings is provided on pages 8-12.

A refinancing of Haglöfs was carried out during the period, as a result of which Ratos received SEK 100m in February.

Business environment and market

Ahead of 2007, Ratos's general assessment of the economic outlook was that the weakening of the global economy would continue for a while – with the USA on the way towards levelling out prior to slowly gathering pace again, while large areas of the rest of the world will have a bit to go in the downturn cycle. Following this, prospects for continued growth are good. So far during the year this scenario has shown itself to be largely correct, assessed in view of the trend in the corporate sector, economic statistics, different geographic markets, leading indicators, etc.

The turbulence which (primarily) the financial market is experiencing at the time of writing is, as always in such situations, dramatic in real time. Ratos's assessment, however, is that the problems that undeniably exist in parts of the financial system, are not of a type that will affect the favourable macroeconomic development in the long term. Exactly as before, our opinion is that there are local excesses in the financial markets, but that currently there are very limited risks for spread effects that have an impact on the entire economy.

It should be underlined that the turbulence faced has not so far affected Ratos's operations. In view of its long-standing conservative financial strategy, Ratos has not acted in or been dependent on the parts of the financial market that are experiencing problems at present. And since our underlying portfolio of companies continues to develop well, it is our assessment – provided our macroeconomic assessment holds true – that we will not be affected by disruptions in our activities in the future.

Development for Ratos's holdings during the first half of the year was generally positive. Order bookings, sales growth and earnings were strong. The combined sales for the underlying portfolio at the end of the period increased by 17% compared with the previous year. Taking Ratos's ownership stakes into account, sales also rose 17%. The corresponding figures for operating profit were +34% and +28% respectively and for profit before tax +42% and +35% respectively (all earnings figures adjusted for the large property capital gain in Arcus Gruppen).

To facilitate analysis, an extensive table is provided on page 20 with key figures for all Ratos's holdings. A summary of income statements and balance sheets for Ratos's associated companies and subsidiaries is available at www.ratos.se in downloadable Excel files.

Ratos's results

Profit before tax for the first half of the year amounted to SEK 2,480m (1,048). This result includes profit from holdings of SEK 2,567m, of which SEK 731m is attributable to the property sale within Arcus Gruppen and SEK 919m to exits (1,075, of which exit gains SEK 258m). Exit gains are mainly attributable to the sale of Alimak Hek and Bluegarden.

	Ratos'
SEKm	holding, %	2007 Q 1-2	2006 Q 1-2
Anticimex	85	30	26
Arcus Gruppen	83	719	-30
Bisnode	701)	250	176
Camfil	30	48	36
DIAB	50	75	50
GS-Hydro	100	105	34
Haendig	100	15	33
Haglöfs	100	-1	4
HL Display	29	21	11
HÅG/RH/RBM	85	36
Hägglunds Drives	100	136	124
Inwido	95	90	110
Jøtul	63	-50
Lindab	22	102	130
MCC	60	13
Medifiq Healthcare	78	-25
Superfos	33	20	9
Other holdings 2)		2	32
Alimak Hek			42
Bluegarden		-9	9
Gadelius			13
Total profit/share of profits		1,577	809
Exit gains
Alimak Hek		727
Bluegarden		160
Lindab			1
LRT/Tornet			198
Other holdings		32	59
Total exit gains		919	258
Dividends from Other holdings		71	8
Profit from holdings		2,567	1,075
Net expenses		-87	-27
Consolidated profit before tax		2,480	1,048

Ratos's results January – June 2007

1) Holding formally 80%, but 70% taking dilution into account.

2) Other holdings include the subsidiary BTJ Group, associate Atle Industri and holdings in Overseas Telecom and Industri Kapital.

Central income and expenses

Ratos's net income and expenses amounted to SEK -87m (-27) of which personnel costs were SEK 148m (34). The variable portion of personnel costs amounted to SEK 110m (4). Other management costs were SEK 48m (38). Net financial items amounted to SEK +109m (+45).

Tax

Ratos's consolidated tax expense comprises subsidiaries' and Ratos's share of tax in associates. The tax rate in the consolidated income statement is affected, among other things, by the parent company's investment company status, capitalisation of loss carry forward and by non-taxable capital gains.

Financial position

Cash flow from operating activities and investing activities was SEK -68m (628) and the Group's cash and cash equivalents at the end of the period were SEK 4,365m (2,216) of which short-term interest-bearing investments accounted for SEK 2,059m (1,241). Interest-bearing debt was SEK 11,805m (7,450).

Parent company

The parent company's profit before tax was SEK 1,302m (1,300). The parent company's cash and cash equivalents, including short-term interest-bearing investments, was SEK 2,475m (1,296). Taking into account financial transactions agreed but not yet carried out, Ratos had an investment capacity of approximately SEK 1.4 billion at the end of the period without needing to utilise existing credit facilities.

Risks and uncertainties

A description of the Group's and parent company's material risks and uncertainties is provided in the Director's report and in Note 31 and Note 40 in the 2006 Annual Report.

Ratos shares

Earnings per share amounted to SEK 13.24 (4.57). The total return on Ratos shares during the period amounted to 41%, compared with the SIX Return Index which rose 13%.

Ordinary and extra dividend

The Annual General Meeting decided on an ordinary dividend for 2006 of SEK 5.50 (4.19) per share and an extra dividend of SEK 5.50 per share. The record date for dividends was 16 April and payments from VPC were made on 19 April.

Purchase of treasury shares

During the period 487,200 shares were repurchased at an average price of SEK 218.33. The number of call options exercised during the period corresponded to 1,142,725 shares. At the end of the period, Ratos owned 2,416,997 B shares corresponding to 1.5% of the outstanding number of shares. The average number of B shares in Ratos's ownership during the period was 2,420,424 (2,894,681 in 2006).

Equity, SEKm	30 June 2007	%
Anticimex	606	5
Arcus Gruppen	1,136	10
Bisnode	1,295	11
Camfil	544	5
DIAB	758	7
GS-Hydro	295	3
Haendig	227	2
Haglöfs	57	1
HL Display	259	2
HÅG/RH/RBM	768	7
Hägglunds Drives	-399	-4
Inwido	970	8
Jøtul	282	2
Lindab	530	5
MCC	306	3
Medifiq Healthcare	257	2
Superfos	362	3
Other holdings 1)	286	2
Total	8,539	74
Other net assets in central companies	2,834	26
Equity attributable to equity holders of the parent	11,373	100

1) Other holdings include the subsidiary BTJ Group, associate Atle Industri and holdings in Overseas Telecom and Industri Kapital.

Equity

At 30 June 2007, Ratos's equity (attributable to equity holders of the parent) amounted to SEK 11,373m (12,164 at 31 March 2007) corresponding to SEK 72 per outstanding share.

Credit facilities

Since the beginning of 2005, the parent company has a rolling five-year credit facility amounting to SEK 1.3 billion including an overdraft facility. Normally, the parent company should be unleveraged. The purpose of the facility is to be able to use it when bridging financing is required for acquisitions, and to be able to finance dividends and day-to-day running costs in periods of few or no exits. The credit facility was unutilised at the end of the period.

Conversion of shares

The 2003 Annual General Meeting resolved that a conversion clause allowing conversion of A shares to B shares should be added to the articles of association. This means that owners of A shares have an ongoing right to convert them to B shares. No conversions took place during the period.

Accounting principles in accordance with IFRS

The consolidated accounts are prepared in accordance with the Swedish Annual Accounts Act and International Financial Reporting Standards (IFRS). The interim report is prepared in accordance with RR 31, Interim reporting for groups and is therefore in accordance with IAS 34, Interim Financial Reporting. The Group's accounting principles are unchanged compared with the most recent annual report.

The key accounting principles applied by Ratos are described below.

Associated companies

As previously, Ratos applies the equity method for consolidation of associates. IFRS requires uniform accounting principles within a group. This requirement applies to both subsidiaries and associates.

Acquisition analyses

An acquisition analysis is preliminary until it is adopted, which takes place within 12 months of the acquisition. In cases where an acquisition analysis is changed, income statements and balance sheets are adjusted for the comparative period. The acquisition analysis for Jøtul was handled as set out above. In the final acquisition analysis trademarks were valued at NOK 190m and deferred tax, which reduced the value of goodwill.

During the period Ratos acquired RH Form, RBM, HÅG and MCC. The acquisitions were carried out by newly formed acquisition companies. Ratos's investment pertains to capital provided to the acquisition company where identifiable assets, assumed liabilities and contingent liabilities were measured at fair value. Ratos's acquisition analysis therefore only recognises goodwill where acquired assets, liabilities and contingent liabilities in conjunction with the acquisition had already been measured at fair value in sub groups. In the acquisition companies' preliminary acquisition analyses the difference between the cost and fair value of acquired identifiable assets and liabilities is attributed to goodwill.

At the beginning of 2007, an acquisition was made of 85% of the two office chair producers RH Form and the Danish company RBM. In June, Ratos acquired 85% of the Norwegian office chair producer HÅG. The three companies have merged into a new group. Company management owns the remaining 15%. RH/RBM is included in Ratos's earnings with effect from 1 January and HÅG with effect from 1 June. Sales during the period totalled SEK 410m and profit before tax SEK 37m.

At the beginning of May 2007, Ratos acquired 60% of the climate systems company Mobile Climate Control (MCC). MCC is included in Ratos's earnings with effect from 1 May. Sales during the period totalled SEK 120m and profit before tax 13m.

The table below shows fair value on the acquisition date.

SEKm	MCC	HÅG/RH/RBM
Intangible non-current assets		21
Property, plant and equipment	26	185
Financial assets	1	5
Current assets	223	321
Cash and cash equivalents	15	125
Non-current liabilities	406	1 826
Current liabilities	213	235
Net, identifiable assets and liabilities	-354	-1,404
Consolidated goodwill	845	1,643
Purchase price, total	491	239
Ratos's holding, %	60	85
Purchase price paid	295	194
Costs directly attributable to acquisition	3
In addition, shareholder loan		553
Total investment	298	747

At the end of June 2007, Ratos signed an agreement to acquire 100% of EuroMaint. Senior executives in the company will be invited to co-invest with Ratos. Ratos's investment amounts to SEK 440m. Ratos's acquisition is subject to the approval of the relevant regulatory authorities. Closing accounts for the new group have not yet been adopted.

At the beginning of July 2007, Ratos signed an agreement to acquire 66% of the Danish company AH Industries. The sellers will remain as owners of 26% of the company. Senior executives in the company will be invited to co-invest with Ratos. Ratos's investment amounts to SEK 296m. Ratos's acquisition is subject to the approval of the relevant regulatory authorities. Closing accounts for the new group have not yet been adopted.

At the end of July 2007, Ratos signed an agreement to acquire 100% of the Danish company Contex Holding A/S. Ratos's investment amounts to approximately SEK 600m. Ratos's acquisition is subject to the approval of the relevant regulatory authorities. Closing accounts for the new group have not yet been adopted.

Acquisitions were carried out in subsidiaries.

Goodwill and intangible assets

IFRS represents a requirement to identify and measure intangible assets at acquisition. To the extent intangible assets can be identified and measured, goodwill decreases correspondingly. Goodwill is not amortised but is subject to an annual test for impairment. Other intangible assets are amortised to the extent an amortisation period can be determined. In such cases, testing for impairment is only carried out when there is an indication of a decline in value. If the amortisation period cannot be determined and amortisation is therefore not effected, an annual impairment test must be performed regardless of whether or not there is any indication of impairment.

In the Ratos Group, goodwill and intangible assets are attributed to a holding, i.e. a subsidiary or associated company, where each holding comprises a cash-generating unit. Testing of carrying amounts is performed per holding, including the value of goodwill and intangible fixed assets attributable to the holding in question. Testing is conducted annually by calculating a recoverable amount regardless of whether or not there is any indication of impairment. Testing is conducted between annual periods if there is any indication of impairment.

Holdings

Anticimex

Sales SEK 718m (668) and EBITA SEK 77m (64)
Continued good organic sales growth, +7%, with good development for Sweden and Germany while the trend was weaker in Norway
Improved EBITA margin, 10.7% (9.6)

Anticimex operates within pest control as well as offering a broad range of services for healthy and safe indoor environments. The Group is currently represented in Sweden, Finland, Denmark, Norway, Germany and the Netherlands.

Ratos's holding in Anticimex amounted to 85% and the consolidated book value in Ratos was SEK 606m at 30 June 2007.

Arcus Gruppen

Sales SEK 603m (440) and EBITA SEK 734m (-18). Adjusted for the capital gain from property sale EBITA was SEK 3m (-18)
Sale of the property in Hasle, Oslo completed capital gain SEK 731m
Continued good sales trend for the wine and spirits product areas
Good earnings trend mainly due to ongoing action programme and strong development within wine sales

Arcus Gruppen is Norway's leading wine and spirits supplier. The company was formed in 1996 on the initiative of the Norwegian government and privatised in 1998. The group's best-known brands include Braastad Cognac, Vikingfjord Vodka, Løiten and Linie Aquavit. The company has 560 employees.

Ratos's holding in Arcus Gruppen amounted to 83% and the consolidated book value in Ratos was SEK 1,136m at 30 June 2007.

Bisnode

Sales SEK 1,775m (1,670) and EBITA SEK 314m (279)
Good sales growth due to completed acquisitions and organic growth of +5%
Positive earnings trend within all business areas
Nine add-on acquisitions were made during the second quarter. In 2007 a total of 13 add-on acquisitions and three divestments have been carried out

Bisnode is a leading European publishing house within digital business information with services within market, credit and product information. Operations are conducted in 19 countries. The group was formed through a merger between Bonnier Business Information (BBI) and Infodata.

Ratos's holding in Bisnode at 30 June 2007 amounted to 70% and the consolidated book value of the holding was SEK 1,295m.

Camfil

Sales SEK 2,037m (1,831) and EBITA SEK 179m (136)
Continued favourable sales trend (+11%), partly due to full-year effects of acquisitions
Strong development in Asia, Spain and Germany
Improved EBITA margin, 8.8% (7.4)

Camfil is a world leader in clean air technology and air filters. The Group's products and services contribute to a good indoor climate and protect sensitive manufacturing processes and the surrounding environment. Manufacture takes place in 19 plants on three continents and the Group is represented by subsidiaries and agents in some 55 countries.

Ratos's holding in Camfil amounted to 30% and the consolidated book value was SEK 544m at 30 June 2007.

DIAB

Sales SEK 683m (571) and EBITA SEK 155m (105)
Sales rose 20% due to strong demand from the wind power segment and the Asia region. Growth and productivity improvements laid the founding for a strong earnings increase
Investments totalling SEK 133m were made in expanded production capacity and new technology to enable continued growth
Investment in own production in India to start in 2007
Establishment of sales company in Poland with focus on marine customers

DIAB is a world-leading company that manufactures and develops core materials for composite structures. Key applications include blades for wind turbines, hulls and decks for boats, and components for aircraft, trains, buses and space rockets. The material has a unique combination of characteristics such as low weight, high strength, insulation properties and chemical resistance.

Ratos's holding in DIAB amounted to 50% and the consolidated book value was SEK 758m at 30 June 2007.

GS-Hydro

Sales SEK 667m (426) and EBITA SEK 120m (40)
Continued very strong sales and earnings trend due to strong market development within all market segments and geographic regions
Sale of property in Norway provided a capital gain of NOK 27m
Adjusted for the capital gain from the property sale, EBITA margin was 13% (9)

GS-Hydro is a leading supplier of non-welded piping systems. Products are mainly used in the marine and offshore industries as well as in the pulp and paper, metals and mining, automotive and aerospace and defence industries. The head office is located in Finland.

Ratos's holding in GS-Hydro amounted to 100% and the consolidated book value in Ratos was SEK 295m at 30 June 2007.

Haendig

Sales (for continuing operations) SEK 379m (368) and EBITA SEK 18m (27)
Following divestments in 2006 Haendig comprises the subsidiaries DeCasa and Hafa Bathroom Group
Strong sales and earnings boost in DeCasa due to good market and measures to strengthen margins
Lower earnings in Hafa Bathroom Group due to costs from repositioning of the Westerberg brand
Ratos received a dividend of SEK 125m during the period

Haendig is an active owner of wholesalers with a focus on strong brands to the Nordic building trade and the DIY market. The Group includes the subsidiaries Hafa Bathroom Group (with the brands Hafa Bathroom and Westerberg) and DeCasa Interiör (Lundbergs Produkter and Duri).

Ratos's holding in Haendig amounted to 100% and the consolidated book value in Ratos was SEK 227m at 30 June 2007.

Haglöfs

Sales SEK 184m (180) and EBITA SEK 2m (6)
Lower earnings primarily due to delayed deliveries and distribution problems in Norway
Divestment of Alfa Skofabrik in Norway
Refinancing carried out in February, Ratos received SEK 100m

Haglöfs is a Nordic market leader in equipment and clothes for an active outdoor life. The company develops and markets high-quality clothes, sleeping bags, footwear, tents and rucksacks. The Group has strong growth throughout Western Europe.

Ratos's holding in Haglöfs amounted to 100% and the consolidated book value in Ratos after the refinancing was SEK 57m at 30 June 2007.

HL Display

Sales SEK 779m (703) and EBITA SEK 77m (47)
Continued good sales growth, +11%, with particularly good development for the markets in Sweden, Norway, Russia, Poland, Turkey and Asia
Strong earnings improvement due to completed efficiency enhancements
Acquisition of the Finnish companies Display Team Oy och Sooni Oy which strengthens positions in the customer segment brand suppliers and position in the Finnish market

HL Display is a global, market leading supplier of products and systems for merchandising and in-store communication. The company has some 900 employees in 29 countries. Manufacture takes place in China, the UK, Sweden and the US. HL Display is listed on the OMX Nordic Exchange, Small Cap list.

Ratos's holding in HL Display amounted to 29% and the consolidated book value was SEK 259m at 30 June 2007.

HÅG/RH/RBM

Sales SEK 761m (687) and EBITA SEK 125m (91)
Acquisition of Norwegian chair manufacturer HÅG. Together with Ratos's earlier acquisitions of RH Form and RBM the new HÅG/RH/RBM Group was established
Good earnings growth where HÅG and RH showed strong development
Lars Røiri appointed as new CEO

HÅG/RH/RBM designs, manufactures and markets ergonomic seating products for offices, conference premises, canteens and educational premises. The group also produces special chairs for customers in trade and industry. Production is carried out in Denmark and Sweden. The group has approximately 500 employees.

Ratos's holding in HÅG/RH/RBM amounted to 85% and the consolidated book value in Ratos was SEK 768m at 30 June 2007.

Hägglunds Drives

Sales SEK 815m (759) and EBITA SEK 162m (127)
Continued strong market with particularly good development within the Marine & Offshore segment
Continued positive sales trend and high capacity utilisation laid the foundation for a strong earnings increase
Strong cash flow despite a higher level of investment

Hägglunds Drives is an international supplier of complete hydraulic motors and drive systems. The largest customer segments are mining and materials handling and marine and offshore. The company has subsidiaries in approximately some 15 countries.

Ratos's holding in Hägglunds Drives amounted to 100% and the consolidated book value in Ratos following the refinancing in 2006 was SEK -399m at 30 June 2007.

Inwido

Sales SEK 2,140m (1,445) and EBITA SEK 167m (155)
Strong organic growth, +10%, for comparable units
Positive earnings trend in Sweden, Norway and Finland contributed to EBITA increase

• In the second quarter acquisition of British company Allan Brothers, the Swedish A-Gruppen and the Finnish company TIiivi. The three companies combined sales total approximately SEK 780m

Inwido develops, manufactures and sells a full range of windows and doors to the building trade, construction companies and modular home manufacturers. Operations are conducted in all the Nordic countries and Poland. Inwido also exports outside the Nordic region. The Group's main brands are Elitfönster and Allmogefönster in Sweden, Storke and Outline in Denmark, Pihla and Eskopuu in Finland, Lyssand and Diplomatdörren in Norway and Sokolka in Poland.

Ratos's holding in Inwido amounted to 95% and the consolidated book value was SEK 970m at 30 June 2007.

Jøtul

Sales SEK 367m (417) and EBITA SEK -17m (2)
Lower earnings and sales trend mainly attributable to Germany, Denmark and the US. Norway and Sweden continue to show good development
The first half is the low season for the industry
Acquisition of the Norwegian flue pipe manufacturer Hammerstrøm

Jøtul is a Norwegian stove and fireplace manufacturer established in 1853. Production is carried out in Norway, Denmark, France, Poland and the US. The company's products are sold worldwide, primarily through speciality stores, but in some markets also through the DIY trade.

Ratos's holding in Jøtul amounted to 62.5% and the consolidated book value was SEK 282m at 30 June 2007.

Lindab

Sales SEK 4 301m (3 412) and EBITA SEK 515m (315)
Strong demand in all regions
Good sales trend within Ventilation and Building Components. Sales for comparable units rose 12%
Lower deliveries than planned in Building System but a strong increase in order backlog

Lindab is a leading manufacturer of building materials in sheet metal and steel and is established in 28 countries. Operations are conducted in two operating areas: Ventilation which focuses on the ventilation sector with circular ducting and indoor climate systems, and Profile which manufactures building components and complete steel building systems. Approximately 80% of sales go to countries outside Sweden.

Ratos's holding in Lindab amounted to 22.5% and the consolidated book value in Ratos was SEK 530m at 30 June 2007.

MCC

Sales SEK 333m (292) and EBITA SEK 59m (50)
Strong sales development underpinned by good development in North America and within the commercial vehicle segment in Europe
Good earnings growth due to strong sales

Mobile Climate Control (MCC), which was founded in 1975 and has its head office in Norrtälje, Sweden, offers complete climate comfort systems for buses, off road and specialty vehicles. Approximately 60% of the company's sales take place in North America and the remainder in Europe. Major production plants are located in Toronto, Canada, and in Norrköping and Norrtälje, Sweden.

Ratos's holding in MCC amounted to 60% and the consolidated book value in Ratos was SEK 306m at 30 June 2007.

Medifiq Healthcare

Sales SEK 171m (236) and EBITA SEK -21m (23)
Weak sales development due to start-up problems for a major single product launch, where action has been taken with the aim of solving these problems at the end of 2007
Cost-cutting programme initiated to compensate for lower sales

Medifiq Healthcare is one of the world-leading players in development and manufacture of medical devices for delivery and administration of drugs, contraceptives, blood sampling equipment, and medical devices for healthcare providers within a range of applications. Medifiq Healthcare has some 500 employees in Finland, the UK and China.

Ratos's holding in Medifiq Healthcare amounted 78% and the consolidated book value in Ratos was SEK 257m at 30 June 2007.

Superfos

Sales SEK 1,677m (1,567) and EBITA SEK 104m (66)
Strong earnings trend driven by good volume and margin development
Acquisition of the Swedish company Mipac in May
Change programme under way in 2007. The programme includes closure of the factory in Vipperød, Denmark

Superfos is an international group with operations in 18 countries. The company develops, produces and sells injection moulded packaging to the food and chemical-technical industries.

Ratos's holding in Superfos amounted to 33% and the consolidated book value in Ratos was SEK 362m at 30 June 2007.

Other holdings

Within Atle Industri, Moving Hjulex was sold which provided a capital gain of SEK 26m. The two remaining companies, Moving and Nordhydraulic, reported good earnings, SEK 6m (-2).
Lower earnings for BTJ Group due to lower sales in Sweden
Divestments within Industri Kapital contributed SEK 32m to Ratos's exit result
Ratos received a dividend of SEK 71m from Overseas Telecom

Other holdings comprise four holdings: Atle Industri, BTJ Group, Industri Kapital and Overseas Telecom.

The consolidated book value of Other holdings in Ratos was SEK 286m at 30 June 2007.

The six-month interim report provides a true and fair overview of the Parent Company's and the Group's operations, their financial position and performance, and describes material risks and uncertainties facing the Parent Company and other companies in the Group.

Stockholm, 21 August 2007 Ratos AB (publ)

Olof Stenhammar (Chairman) Lars Berg Staffan Bohman Göran Grosskopf

Annette Sadolin Jan Söderberg Per-Olof Söderberg Arne Karlsson (CEO)

This report has not been reviewed by Ratos's auditors.

For additional information, please contact: Arne Karlsson, CEO, +46 8 700 17 00 Clara Bolinder-Lundberg, Head of Corporate Communications, +46 8 700 17 63

Financial calendar: Interim report January – September 2007 9 November 2007 Year-end report 2007 21 February 2008 AGM 2008 9 April 2008 Interim report January – March 2008 8 May 2008 Interim report January – June 2008 22 August 2008 Interim report January – September 2008 7 November 2008

Consolidated income statement

	2007	2006	2007	2006	2006
SEKm	Q 2	Q 2	Q 1-2	Q 1-2	full year

Net sales	4,864	3,988	9,081	7,369	16,156
Other operating income	58	25	85	48	144
Change in inventories	47	-38	81	-6	-35
Raw materials and consumables	-1,972	-1,684	-3,670	-3,213	-6,735
Employee benefit costs	-1,623	-1,189	-3,002	-2,119	-4,749
Depreciation and impairment of
tangible and intangible non-current
assets	-144	-82	-275	-173	-666
Other costs	-897	-703	-1,736	-1,388	-3,063
Profit on sale of group companies	891	-4	957	63	89
Profit on sale of associates	15	1	742	199	1,617
Share of profit of associates	142	218	265	318	733
Operating profit	1,381	532	2,528	1,098	3,491

Financial income	98	58	248	112	204
Financial expenses	-166	-91	-296	-162	-461
Net financial items	-68	-33	-48	-50	-257
Profit before tax	1,313	499	2,480	1,048	3,234
Tax	-98	-123	-187	-228	-572
Profit for the period	1,215	376	2,293	820	2,662
Attributable to
Equity holders of the parent	1,056	347	2,104	767	2,527
Minority interests	159	29	189	53	135

Earnings per share, SEK
- before dilution	6.63	2.05	13.24	4.57	15.50
- after dilution	6.59	2.04	13.15	4.54	15.41

Number of shares outstanding,
recalculated taking split
and redemption into account
- average before dilution	159,332,158	169,139,064	158,928,828	167,907,216	163,005,841
- average after dilution	160,223,017	170,040,342	160,050,002	168,763,216	164,014,723

Consolidated balance sheet
SEKm	30 June 2007	30 June 2006	31 Dec 2006
ASSETS
Non-current assets
Goodwill	12,526	8,587	9,049
Other intangible assets	1,468	1,038	1,415
Property, plant and equipment	2,346	1,443	2,124
Financial assets	3,096	3,628	2,929
Deferred tax assets	208	187	187
Total non-current assets	19,644	14,883	15,704
Current assets
Inventories	2,352	1,665	1,696
Current receivables	4,845	3,452	3,866
Cash and cash equivalents	4,365	2,216	5,009
Assets held for sale	34		445
Total current assets	11,596	7,333	11,016
Total assets	31,240	22,216	26,720
EQUITY AND LIABILITIES
Equity including minority interests	12,808	9,996	11,814
Non-current liabilities
- interest-bearing	9,533	5,617	6,878
- non-interest bearing	302	76	196
- provisions for pensions	586	554	577
- other provisions	270	123	264
- deferred tax liabilities	549	333	586
Total non-current liabilities	11,240	6,703	8,501
Current liabilities
- interest-bearing	1,686	1,279	1,254
- non-interest bearing	5,117	4,229	4,574
- provisions	349	9	392
- liabilities attributable to Assets held for sale	40		185
Total current liabilities	7,192	5,517	6,405
Total equity and liabilities	31,240	22,216	26,720

	2007-06-30				2006-06-30		2006-12-31
	Equity holders			Equity holders			Equity holders
	of the parent	Minority	Total	of the parent	Minority	Total	of the parent	Minority	Total
Opening balance	10875	939	11814	10 942	504	11446	10 942	504	11446
Change in acquisition analysis				16	92	108	16	92	108
Adjusted equity	10875	939	11814	10 958	596	11 5 5 4	10958	596	11 5 5 4
Change in translation reserves	169	30	199	$-193$	$-12$	$-205$	$-343$	-39	$-382$
Fair value reserve/hedging reserve after tax	2	-6	$-4$	8	5.	13		4	4
Redemption of convertible programme, associates
Equity component of convertible debenture
Acquired minority interest		-5	$-5$		$-16$	$-16$		$-44$	$-44$
Minority interest in sold company					-2	-2		-2	$-2$
Minority interest at acquisition		259	259		60	60		219	219
Other recognised directly in equity	-3		-3
Net income recognised
directly in equity	11 043		1 217 12 260	10774	631	11 4 0 5	10 615	734'	11 349
Profit for the period	2 104	189	2 2 9 3	767	53	820	2 5 2 7	135	2662
Net income excluding transactions
with equity holders	13 147		1406 14 553	11 541	684 ⁷	12 2 2 5	13 14 2	869	14 011
Dividend	$-1754$		$-1754$	$-715$	-6	$-721$	$-715$	-6	$-721$
Redemptions				$-1510$		$-1510$	$-1510$		$-1510$
Purchase/sales of treasury shares	-39		-39	$-45$		-45	$-43$		$-43$
Reallocation of capital contribution				$-13$	13		$-13$	13
New issue		29	29		35	35		63	63
Option premiums	19		19	12		12	14		14
Closing equity	11 3 7 3		1435 12808	9 2 7 0	726	9996	10875	939	11814

Consolidated cash flow statement

SEKm	2007 Q 1-2	2006 Q 1-2	2006 full year
Operating activities
Consolidated profit before tax	2,480	1,048	3,234
Adjustment for non-cash items	-1,541	-495	-1,531
	939	553	1,703
Income tax paid	-201	-106	-325
Cash flow from operating activities before
change in working capital	738	447	1,378
Cash flow from change in working capital
Increase (-)/Decrease (+) in inventories	-350	-178	-84
Increase (-)/Decrease (+) in operating receivables	-334	19	-265
Increase (+)/Decrease (-) in operating liabilities	-262	-339	-68

Cash flow from operating activities	-208	-51	961

Investing activities
Acquisitions, group companies	-1,530	-1,001	-1,542
Sales, group companies	1,414	132	513
Acquisition of shares in associates and other holdings	-85	-5	-10
Sale and redemption, shares in associates and other holdings	1,178	1,937	3,897
Acquisition, other intangible/tangible assets	-292	-252	-445
Change in financial assets	-545	-132	-248
Cash flow from investing activities	140	679	2,165

Financing activities
Purchase of treasury shares	-107	-71	-71
Transfer of treasury shares	68	26	28
Option premiums	19	10	12
Minority interest in issue	29	35
Dividend paid	-1,754	-715	-715
Redemption		-1,510	-1,510
Dividends paid to minority interests	-3	-6	-6
Increase (+)/Decrease (-) in interest-bearing liabilities	1,139	154	506
Cash flow from financing activities	-609	-2,077	-1,756

Cash flow for the period	-677	-1,449	1,370
Cash and cash equivalents at beginning of the period	5,009	3,677	3,677
Exchange differences in cash and cash equivalents	33	-12	-38
Cash and cash equivalents at the end of the period	4,365	2,216	5,009

Consolidated key figures
Return on equity, %			23
Equity ratio, %	41	45	44
Interest-bearing debt, SEKm	7,340	5,124	3,604

Key figures per share taking split and redemption into account
Total return, %	41	20	85
Dividend yield, %			3.4 1)
Market price, SEK	218.50	105.50	162.50
Dividend, SEK			5.50
Extra dividend, SEK			5.50
Equity attributable to equity holders of the parent, SEK	72	59	69

Total number of shares (registered 161,349,252 and
80,674,626 respectively)
Number of shares outstanding	158,932,255	158,253,080	158,276,730
- of which A shares	42,328,770	42,330,810	42,328,770
- of which B shares	116,603,485	115,922,270	115,947,960
1) Including extra dividend of SEK 5.50 dividend yield amounts to 6.8%.

Parent company income statement

	2007	2006	2007	2006	2006
SEKm	Q 2	Q 2	Q 1-2	Q 1-2	full year

Other operating income	1	2	2	3	5
Other external costs	-22	-21	-45	-35	-77
Personnel costs	-91	-18	-148	-34	-192
Depreciation of property, plant and equipment	-1	-1	-1	-1	-2
Other operating expenses	-1	-1	-2	-2	-3
Operating profit/loss	-114	-39	-194	-69	-269

Profit on sale of participations in group companies	160	1,142	317	1,142	2,850
Dividends from group companies		100	59	100	100
Impairment of participations in group companies					-99
Profit on sale of interests in associates		1	800	1	1,685
Dividends from associates	74		82	19	19
Result from other securities and receivables
accounted for as non-current assets	38	50	158	95	160
Other interest income and similar profit/loss items	29	15	85	30	71
Interest expenses and similar profit/loss items	-3	-12	-5	-18	-51
Profit after financial items	184	1,257	1,302	1,300	4,466
Tax
Profit for the period	184	1,257	1,302	1,300	4,466

Parent company balance sheet
SEKm	30 June 2007	30 June 2006	31 Dec 2006
ASSETS
Non-current assets
Property, plant and equipment	14	14	14
Financial assets	8,719	7,345	8,032
Total non-current assets	8,733	7,359	8,046
Current assets
Current receivables	451	1,414	192
Cash and cash equivalents	2,475	1,296	4,007
Total current assets	2,926	2,710	4,199
Total assets	11,659	10,069	12,245
EQUITY AND LIABILITIES
Equity	11,240	8,544	11,712
Provisions
- provisions for pensions	3	3	3
Non-current liabilities
- non-interest bearing	53	30	78
- interest-bearing	170	141	141
Current liabilities
- non-interest bearing	193	46	192
- interest-bearing		1,305	119
Total equity and liabilities	11,659	10,069	12,245

Statement of changes in parent company's equity

	30 June 2007	30 June 2006	31 Dec 2006
Opening equity	11,712	9,504	9,504
Profit for the period	1,302	1,300	4,466
Net income excluding
transactions with equity holders	13,014	10,804	13,970
Dividend	-1,754	-715	-715
Redemption		-1,510	-1,510
Purchase of treasury shares	-107	-71	-71
Call options exercised	68	26	28
Option premiums	19	10	10
Closing equity	11,240	8,544	11,712

Parent company cash flow statement

			2006 full
SEKm	2007 Q 1-2	2006 Q 1-2	year
Operating activities
Profit before tax	1,302	1,300	4,466
Adjustment for non-cash items	-1,049	-1,203	-4,435
	253	97	31
Income tax paid	-	-	-
Cash flow from operating activities before
change in working capital	253	97	31
Cash flow from change in working capital
Increase (-)/Decrease (+) in operating receivables	-287	2	-23
Increase (+)/Decrease (-) in operating liabilities	-24	-65	124
Cash flow from operating activities	-58	34	132
Investing activities
Acquisition, shares in subsidiaries	-492	-487	-2,309
Sale, shares in subsidiaries	443	1,241	3,700
Acquisition, shares in associates and other holdings	-25	-5	-5
Sale and redemption, shares in associates and other holdings	1,068	722	2,674
Acquisition of other property, plant and equipment	-1		-1
Change in financial assets	-603	-1,722	-513
Cash flow from investing activities	390	-251	3,546
Financing activities
Purchase of treasury shares	-107	-71	-71
Transfer of treasury shares	68	26	28
Option premiums	19	10	10
Dividend paid	-1,754	-715	-715
Redemption		-1,510	-1,510
Increase (+)/Decrease (-) in interest-bearing liabilities	-90	1,260	74
Cash flow from financing activities	-1,864	-1,000	-2,184
Cash flow for the period	-1,532	-1,217	1,494
Cash and cash equivalents at beginning of the period	4,007	2,513	2,513
Cash and cash equivalents at the end of the period	2,475	1,296	4,007

Ratos's holdings at 30 June 2007

															Average no.	Consoli-
	Net sales 2007	Net sales		EBITA	EBITA	EBITA	EBT*	EBT*	EBT*	Depreci-		ation Investments Cash flow*	Equity****	Interest-bearing net debt**** employees	of	dated value	Ratos holding
SEKm	$Q1-2$		2006 Q1-2 Net sales 2006	2007 Q1-2	2006 Q1-2	2006 H1	2007 Q1-2	2006 Q1-2	2006 H1	2007 Q1-2	2007 Q1-2	2007 Q1-2	30/06/07	30/06/07	2006	30/06/07	30/06/07
Anticimex ¹	718	668	1373	77	64	140	42	40	84	16	25	47	716	884	1021	606	85%
Arcus Gruppen ²⁾	603	440	1 1 1 1	734	$-18$	95	729	$-28$	77	19	11	$-152$	1390	$-544$	435	1 1 3 6	83%
Bisnode	1775	1670	3 3 8 9	314	279	528	285	222	366	38	71	171	2 3 2 3	2352	2 5 2 7	1 2 9 5	70%
Camfil	2037	1831	3763	179	136	279	161	122	246	48	129	-86	1413	867	2949	544	30%
DIAB	683	571	1 2 0 5	155	105	258	151	99	244	25	133	$-29$	508	191	892	758	50%
GS-Hydro	667	426	985	120	40	101	105	34	86	10 ^°	15	-6	295	286	404	295	100%
Haendig ²⁾	379	368	727	18	27	62	16	18	59	$\overline{4}$	$\overline{2}$	21	171	121	258	227	100%
$Haglofs$ ²⁾³⁾	184	180	412	$\overline{2}$	6	29	$-1$	3	22	$\overline{2}$	-3	-6	200	135	72	57	100%
HL Display	779	703	1448	77	47	107	73	39	92	21	32	48	415	-5	949	259	29%
HÅG/RH/RBM ¹	761	687	1328	125	91	175	86	51	98	23		٠	826	1071	633	768	85%
Hägglunds Drives ³⁾	815	759	1 5 4 7	162	127	261	136	100	206	14	33	67	1490	1079	638	$-399$	100%
Inwido	2 140	1445	3 2 8 5	167	155	390	95	113	272	55	106	$-223$	1 2 3 1	2482	2 1 2 3	970	95%
løtul ¹¹	367	417	1042	$-17$	$\overline{2}$	89	$-35$	$-14$	52	23	91	$-135$	425	717	821	282	63%
Lindab	4 3 0 1	3412	7 609	515	315	903	452	272	797	99	77	$-27$	2355	2 9 0 3	4 4 3 8	530	22%
MCC ¹	333	292	614	59	50	107	38	33	75	3		$\sim$	504	500	495	306	60%
Medifiq Healthcare ¹	171	236	491	$-21$	23	21	$-25$	19	10 ¹⁰	18	-5	8	327	240	493	257	78%
Superfos ²⁾	1677	1567	3026	104	66	115	61	23	32	113	91	$-22$	1061	1500	1525	362	33%
Other companies ²¹⁴⁾	749	755	1345	6	12	36	5	8	31	16	29	$-45$	176	168	882	116
Total	19 139	16427	34 700	2776	1527	3696	2374	1 1 5 4	2849
Change		17%			82%			106%

Total excluding capital gain in Arcus	19 139	16 427	34 700	2045	1527	3696	1643	1 1 5 4	2849
Change		17%			34%			42%