Interim report Q2 2021

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Interim report January–June 2021

Continued positive performance in the business group – the Group’s earnings impacted by revaluation of shareholding

Performance Ratos business group, adjusted for Ratos’s holdings

EBITA increased to SEK 1,055m (1,045). In the previous year’s profit, the divested Bisnode was included by SEK 91m
Net sales decreased to SEK 6,949m (7,221). Net sales increased 2% organically
Cash flow from operations amounted to SEK 1,105m (1,232)

Performance Ratos Group

The revaluation of shares in Dun & Bradstreet Holding Inc. had a negative impact of SEK 113m on earnings in the quarter
Profit for the period for the Ratos Group amounted to SEK 679m (780)
Operating profit from continuing operations for the Ratos Group amounted to SEK 915m (955)
Diluted earnings per share decreased to SEK 1.90 (2.18)
Cash and cash equivalents in the parent company totalled SEK 2,338m (1,245)

Significant events during and after the end of the period

On 1 April, HL Display acquired the company CoolPresentation, thus strengthening its market position in the Netherlands.
On 17 May, Diab acquired production of ULTEM[TM ] foam from SABIC in order to expand the product offering and better serve high-end core material applications.
On 20 May, Ratos announced that Aibel’s owners, including Ratos, are considering the possibility of diversifying the company’s ownership, preferably through a listing on the Oslo Stock Exchange.
On 30 June, the wholly owned KVD Group signed an agreement to acquire 100% of Forsbergs Fritidscenter, which is the largest mobile home and caravan dealer in the Nordics.

Financial performance

Financial performance
SEKm	Q2 2021	Q2 2020 Change%	Q1-2 2021	Q1-2 LTM Full Year 2020 Rolling 2020 Change% Change %
Ratos Group	6,994 679 915 827 1.90 1.84	6,525 7% 780 -13% 955 -4% 790 5% 2.18 -13% 1.87 -2%	11,426 2,412 1,069 894 7.14 1.85 2,338	11,229 2% 21,138 20,941 1% 667 pos 2,629 883 pos 941 14% 1,585 1,457 9% 663 35% 1,104 873 27% 1.80 pos 7.51 2.17 pos 1.47 26% 1.96 1.58 24% 1,245 88% 1,166
Net sales Profit/loss for the period1⁾ Operating profit/loss, continuing operations Profit/loss before tax, continuing operations Diluted earnings per share total group, SEK1⁾ Diluted earnings per share, continuing operations, SEK
Cash and cash equivalents in the parent company, at period end
Ratos business group, Ratos's holding1⁾ 2⁾
Net sales EBITDA EBITA EBITA margin Profit/loss before tax Cash flow from operations	6,949 1,300 1,055 15.2% 921 1,105	7,221 -4% 1,323 -2% 1,045 1% 14.5% 907 2% 1,232 -10%	11,615 1,705 1,228 10.6% 999 580	12,809 -9% 22,859 24,053 -5% 1,708 0% 3,038 3,041 0% 1,153 7% 1,986 1,910 4% 9.0% 8.7% 7.9% 816 22% 1,368 1,185 15% 1,124 -48% 1,224 1,768 -31%
Leverage3⁾			-1,1x	1,5x 1,1x

1⁾ 2020 includes Bisnode that was divested in January 2021.

2⁾ Tables in a tinged background are alternative performance measures, refer to Note 3 Alternative performance measures, page 23 for reconciliation and page 29 for definitions.

3⁾ Excluding financial lease liability and including cash and cash equivalents in the parent company.

1 Ratos Interim Report 2021 Q2

CEO comments on performance in the second quarter of 2021

Continued positive earnings trend in the Ratos business group

The positive trend in the business group continued in the second quarter. 11 of 12 companies reported stronger or significantly stronger earnings than in the year-earlier period. EBITA rose 1%, despite the fact that the comparative figures for 2020 include SEK 91m from Bisnode. For the current business group, EBITA increased 11%. This means that we reported EBITA growth for the eighth consecutive quarter. Net sales increased 2% organically.

All companies in the Ratos business group performed well with the exception of Diab. Aibel, TFS, HL Display, Oase Outdoors, Speed Group, airteam and LEDiL reported particularly strong earnings growth. Plantasjen’s earnings improvement of SEK 62m in the quarter was particularly impressive given the challenges the company has faced, with store closures and unfavourable weather at the beginning of the quarter, which caused sales to decrease 2%. This improvement in earnings was achieved through reduced costs for logistics, for example, and an improved product range mix. I am also pleased to report that the newly acquired company Vestia delivered a strong performance compared with the year-earlier period, more than doubling its net sales and reporting an even better earnings trend.

Diab, on the other hand, faced major challenges due to a sharp increase in raw material prices in the second quarter and a decline in the demand in the wind power market as a result of the discontinuation of subsidies, particularly in China. Combined with declining sales, the fact that the price increases implemented by the company failed to yield results in the quarter resulted in a major drop in earnings. We previously underestimated the short-term impact of the discontinuation of subsidies, and our new assessment is that the market will normalise in 2022. We still believe in the longterm potential of the wind power market. Two new production sites were put into operation in the first half of 2021, an important achievement in the company’s transition to meet the market demand for new materials.

While the impact of the pandemic subsided in most companies, Aibel and HENT continued to be affected by travel restrictions preventing foreign labour from entering the country, which among others resulted in costs for construction delays. However, most companies faced significantly higher costs for input goods and transportation, which put pressure on our management teams to implement price adjustments.

High rate of M&A activity

The level of transaction activity in the quarter was high. In early April, HL Display acquired CoolPresentation, thus strengthening its market position in the Netherlands. In May, Diab acquired production of ULTEM[TM ] foam from SABIC in order to expand the product offering and better serve highend core material applications. On 30 June, the wholly owned KVD Group signed an agreement to acquire, 100% of Forsbergs Fritidscenter, which is the largest mobile home and caravan dealer in the Nordics. All of these acquisitions have a strong commercial rationale and are fully in line with our strategy to combine organic growth with add-on acquisitions in the business group in order to strengthen our market position and leverage synergies. A number of other candidates for both add-on acquisitions and platform acquisitions were assessed during the quarter.

In May, we also announced that we are considering the possibility of diversifying Aibel’s ownership, preferably through a listing on the Oslo Stock Exchange. Aibel’s development is impressive. Its operations are stable, and nearly half of the order book now comprises projects related to offshore wind power and electrification. We are very positive about further improving the company’s financial conditions in order to accelerate its transition into the renewable energy industry.

Despite the development in Diab, I am pleased with the work our management teams, other employees and the Ratos team have accomplished in our business group. For the past three years, our focus has been on improving the companies’ operational profitability and efficiency. We are now shifting our focus to achieving industry-leading profitability in each company combined with organic growth and acquisitions.

Jonas Wiström, President and CEO

The Ratos Group’s earnings were negatively affected in an amount of SEK -113m due to an unrealised change in value in the listed holding in Dun & Bradstreet Holding, Inc.

2 Ratos Interim Report 2021 Q2

Overview, Ratos’s business areas

The Ratos business group is divided into three business areas: Construction & Services, Consumer and Industry. Net sales for the last 12-month period for the Ratos business group, adjusted for Ratos’s holdings, amounted to SEK 22,859m (24,981), down 8%. Organic net sales increased by 2% during the quarter. EBITA for the last 12-month period increased to SEK 1,986m (1,573), adjusted for Ratos’s holdings. In this years last 12 month period, Bisnode is only included for two quarters.

Net sales and EBITA in Ratos’s business areas

LTM refers to the last 12-month period. The diagrams below are based on figures adjusted for the size of Ratos’s holding.

EBITA (SEKm) and EBITA margin (%), Q2

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1,100 1,045 1,055
900 15.2%
14.5%
700 701
500
9.9%
300
Q2 19 Q2 20 Q2 21
19.0%
17.0%
15.0%
13.0%
11.0%
9.0%
7.0%
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EBITA (SEKm) and EBITA margin (%), LTM[1)]

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1,976 1,986
1,910
8.7%
1,667
1,573
8.5%
7.9%
1,230
1,197
6.8%
1,041
6.3%
830
4.9% 4.9%
4.4%
3.6%
Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21
1) The effects of the transition to IFRS 16 impact the periods up to and including the third quarter of 2019.
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3 Ratos Interim Report 2021 Q2

Construction & Services

Business area development

During the second quarter of 2021, net sales for Construction & Services increased by 9% (organically 0.5%). EBITA increased to SEK 129m (79), primarily due to higher EBITA in Aibel and Speed Group as well as the acquisition of Vestia. For details, see each company section.

			Net sales	Net sales			Q1-2 Q1-2 LTM Full Year 2021 2020 Rolling 2020 EBITA
SEKm	Q2 2021	Q2 2020	Q1-2 2021	Q1-2 LTM Full Year 2020 Rolling 2020	Q2 2021	Q2 2020	Q1-2 2021
Companies in its entirety Aibel airteam HENT Speed Group Vestia Companies total Adjustment for Ratos's holding Total, adjusted for Ratos's holding Growth, net sales 1⁾ EBITA margin 1⁾ 1⁾Adjusted for Ratos's holding	2,889 332 2,164 252 248 5,886 -2,821 3,065 9%	2,831 346 2,122 181 5,480 -2,657 2,822 -5%	5,989 631 4,054 473 248 11,395 -5,596 5,799 -1%	6,148 11,863 12,022 621 1,340 1,331 4,388 8,310 8,644 354 845 726 248 11,512 22,607 22,723 -5,661 -11,066 -11,131 5,851 11,540 11,592 5% 0% -5%	161 35 30 33 14 272 -143 129 4.2%	94 26 27 16 163 -84 79 2.8%	303 54 72 57 14 500 -264 236 4.1%

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The level of market activity remains high in all of Aibel’s segments. The order intake during the second quarter amounted to NOK 3.1 billion, of which NOK 1.9 billion was related to extension and increase in the scope of framework agreements within maintenance and modifications. The order intake for the first half of 2021 was NOK 8.2 billion.

The backlog of orders amounted to NOK 13 billion by the end of the second quarter, which is in line with the end of the first quarter of 2021. The portion of the backlog related to the growing area of offshore wind power and electrification grew to NOK 5.8 billion, an increase of approximately 20% compared with the year-earlier period.

Net sales and EBITA vary from quarter to quarter, depending on when deliveries are completed. Sales decreased somewhat compared with the previous quarter, but were in line with the year-earlier period. Profitability increased due to successful implementation in the project portfolio.

			Q1-2		LTM
NOKm	2021	2020	2021	2020	21/20
Net sales	2,873	2,932	6,016	6,181	12,120
EBITDA	222	163	434	314	838
EBITA	160	97	305	186	576
Cash flow from operations	-313	-243	-306	-307	447
Interest-bearing net debt			2,362	2,841
-whereof leasing liability			594	738
Growth, Net sales	-2%	12%	-3%	26%
- whereof currency effect	0%	1%	0%	0%
Growth, Organic	-2%	11%	-3%	26%
EBITDA margin	7.7%	5.6%	7.2%	5.1%	6.9%
EBITA margin	5.6%	3.3%	5.1%	3.0%	4.7%

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 4,000 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 4,068 in 2020.

Holding 32 %

4 Ratos Interim Report 2021 Q2

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Growth continued during the second quarter, primarily in Denmark, where airteam has a market-leading position. Sweden grew in the right direction. The order book rose 17% compared with the year-earlier period and totalled DKK 1,035m at the end of the quarter, equivalent to approximately a year’s worth of sales.

EBITA increased 37% in the second quarter compared with the year-earlier quarter, despite a 10% increase in employees at airteam during the second quarter in order to meet growing demand for airteam’s services. The higher profitability is primarily attributable to a larger share of advanced projects in the project portfolio than in the year-earlier period.

A strong environmental trend combined with legislative initiatives is increasing demand for energy-efficient solutions and the optimisation of energy consumption in previously installed ventilation solutions. airteam developed an offering in this area early on and is well equipped to meet demand.

During the quarter, an office was opened in Malmö, which will also serve as a base for airteam’s Swedish ventilation engineers, who are responsible for providing customer support.

			Q1-2		LTM
DKKm	2021	2020	2021	2020	21/20
Net sales	243	242	463	435	974
EBITDA	27	20	43	29	113
EBITA	25	19	40	24	105
Cash flow from operations	12	54	10	85	57
Interest-bearing net debt			30	70
-whereof leasing liability			16	14
Growth, Net sales	1%	29%	6%	22%
- whereof currency effect	0%	-1%	0%	0%
- whereof acquisition				3%
Growth, Organic	1%	30%	6%	20%
EBITDA margin	11.2%	8.5%	9.4%	6.6%	11.6%
EBITA margin	10.4%	7.7%	8.6%	5.6%	10.7%

Amounts referring to 100% of the company.

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 326 in 2020.

Holding

70 %

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The order book increased significantly during the quarter to NOK 18.4 billion and is now twice as large as the company’s sales for the last 12-month period. Two-thirds of the company’s assignments are carried out on behalf of government agencies and municipalities, whereof a number of major, prestigious projects. More than half of the order book comprises partnering projects with a low risk profile.

Net sales decreased 2% in the second quarter compared with the year-earlier period, mainly due to project restrictions and postponements as a result of the Covid-19 pandemic. At the same time, profitability increased slightly due to higher average profitability in the project portfolio, despite significant price increases for input goods and cost increases related to the Covid-19 pandemic.

The company’s negative cash flow was attributable to variations in invoicing between quarters depending on when invoicing for major projects takes place.

The Covid-19 pandemic continues to impact the operations. However, the situation gradually improved during the second quarter.

			Q1-2		LTM
NOKm	2021	2020	2021	2020	21/20
Net sales	2,156	2,192	4,072	4,412	8,494
EBITDA	50	48	112	113	251
EBITA	29	28	73	75	173
Cash flow from operations	-152	-157	-336	15	-187
Interest-bearing net debt			-144	-389
-whereof leasing liability			217	189
Growth, Net sales	-2%	0%	-8%	5%
- whereof currency effect	-1%	4%	0%	3%
Growth, Organic	-1%	-4%	-8%	3%
EBITDA margin	2.3%	2.2%	2.7%	2.6%	3.0%
EBITA margin	1.4%	1.3%	1.8%	1.7%	2.0%

Amounts referring to 100% of the company.

Holding 73 %

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 1,012 in 2020.

5 Ratos Interim Report 2021 Q2

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The high activity level in the logistics and staffing segments had a positive impact on the operations, and net sales for the quarter rose 39% compared with the year-earlier period. To meet the increased demand, the business expanded its logistics facility to include an additional 10,000 square metres.

EBITA and profitability increased substantially as a result of high volumes, improved productivity and higher capacity. The Covid-19 pandemic had a limited effect on the operations.

			Q1-2		LTM
SEKm	2021	2020	2021	2020	21/20
Net sales	252	181	473	354	845
EBITDA	60	38	110	68	204
EBITA	33	16	57	24	95
Cash flow from operations	56	8	77	23	116
Interest-bearing net debt			651	475
-whereof leasing liability			717	428
Growth, Net sales	39%	4%	34%	3%
Growth, Organic	39%	4%	34%	3%
EBITDA margin	23.6%	21.1%	23.3%	19.2%	24.1%
EBITA margin	13.0%	8.6%	12.0%	6.7%	11.2%

Amounts referring to 100% of the company.

Holding Speed Group is one of the Nordic region’s leading third-party logistics providers, with effective automation solutions and a total of 70 % 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 699 in 2020.

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Net sales for the second quarter more than doubled compared with the year-earlier period and EBITA nearly tripled.

The order intake during the quarter was strong and the order book amounted to SEK 2.5 billion at the end of the period, including early-stage projects.

The construction market in the Gothenburg area is stable and is expected to remain so for the long term. The supply of partnering projects in the quarter exceeded Vestia’s bidding capacity.

	Q2	Q1-2
SEKm	2021	2021
Net sales	248	248
EBITDA	15	15
EBITA	14	14
Cash flow from operations	37	37
Interest-bearing net debt		-88
-whereof leasing liability		5
EBITDA margin	5.9%	5.9%
EBITA margin	5.6%	5.6%
Amounts referring to 100% of the company.

Holding 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 80 in 2019/2020.

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Consumer

Business area development

During the second quarter of 2021, net sales for Consumer decreased by 18% (+1.6% organically). Excluding Bisnode, net sales increased 2%. EBITA decreased to SEK 817m (825), primarily due to the divestment of Bisnode. Excluding Bisnode, EBITA increased 11%. For details, see each company section.

	Q2 Q2 2021 2020	Q1-2 Q1-2 LTM Full Year 2021 2020 Rolling 2020 Net sales	Q2 Q2 2021 2020	Q1-2 Q1-2 LTM Full Year 2021 2020 Rolling 2020 EBITA
SEKm	Q2 2021	Q1-2 2021	Q2 2021	Q1-2 2021
Companies in its entirety Bisnode KVD Oase Outdoors Plantasjen Companies total Adjustment for Ratos's holding Total, adjusted for Ratos's holding Growth, net sales 1⁾ EBITA margin 1⁾ 1⁾Adjusted for Ratos's holding	142 224 2,341 2,708 -70 2,638 -18%	245 343 2,988 3,576 -102 3,474 -25%	13 62 763 838 -21 817 31.0%	21 87 665 773 -25 748 21.5%

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During the second quarter, net sales rose 41%. During the quarter, KVD began purchasing cars for its own use and selling them at a fixed price online, which had a positive effect on net sales.

Profitability improved and EBITA increased 93% in the second quarter compared with the year-earlier period. This improvement is mainly attributable to economies of scale increasing in pace with net sales and generally improved margins.

			Q1-2		LTM
SEKm	2021	2020	2021	2020	21/20
Net sales EBITDA	142 20	101 14	245 37	194 27	444 77
EBITA	13	7	21	11	46
Cash flow from operations	-45	8	-48	20	-10
Interest-bearing net debt			75	60
-whereof leasing liability			53	59
Growth, Net sales	41%	7%	26%	5%
Growth, Organic	41%	7%	26%	5%
EBITDA margin	14.4%	14.3%	14.9%	13.7%	17.4%
EBITA margin	8.8%	6.5%	8.5%	5.8%	10.4%

Amounts referring to 100% of the company.

On 30 June, the KVD Group signed an agreement to acquire Forsbergs Fritidscenter, a market-leading dealer of mobile homes and caravans. Closing is expected to take place in early August. With this acquisition, KVD expanded its range and strengthened its offering to the end consumer. Forsbergs Fritidscenter’s sales for the last 12-month period amounted to SEK 936m as of May 2021, with EBITA of approximately SEK 51m.

Holding 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 100 % 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 199 in 2020.

Holding

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Demand for outdoor leisure products remained high during the second quarter. Organic net sales increased by 41% compared with the year-earlier and the order book is strong.

EBITA increased 51% compared with the year-earlier period, with an improved EBITA margin, despite rising transportation prices due to insufficient global transportation capacity. The improvement is primarily due to higher sales as a result of continued efforts related to category management and a focus on products with higher gross margins.

		Q2	Q1-2		LTM
DKKm	2021	2020	2021	2020	21/20
Net sales	165	117	252	206	343
EBITDA	47	31	66	42	63
EBITA	46	30	64	40	58
Cash flow from operations	67	71	-6	14	73
Interest-bearing net debt			117	178
-whereof leasing liability			12	14
Growth, Net sales	40%	9%	22%	-10%
- whereof currency effect	0%	-1%	0%	0%
Growth, Organic	41%	10%	22%	-10%
EBITDA margin	28.3%	26.8%	26.2%	20.4%	18.4%
EBITA margin	27.7%	25.7%	25.3%	19.2%	17.0%

Amounts referring to 100% of the company.

During the quarter, Oase Outdoor’s innovative solutions for brands such as Robens, Outwell and Easy Camp received several industry awards.

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 79 in 2020.

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During the second quarter, which is the strongest quarter seasonally, organic net sales declined 2% compared with the year-earlier period. April was colder than usual, which meant that the season started late. In addition, store closures in Norway due to the Covid-19 pandemic had a negative impact of approximately NOK 80m on sales. However, sales in May and June were at an all-time high and up to 38 stores previously closed in Norway reopened.

“Click & collect” and “click & deliver” e-commerce services grew significantly in the first half of the year.

		Q2	Q1-2		LTM
NOKm	2021	2020	2021	2020	21/20
Net sales	2,346	2,406	3,001	2,943	4,740
EBITDA	893	823	912	776	1,205
EBITA	767	699	668	532	714
Cash flow from operations	1,122	1,137	778	755	487
Interest-bearing net debt			4,071	4,335
-whereof leasing liability			3,825	3,630
Growth, Net sales	-3%	24%	2%	17%
- whereof currency effect	-1%	5%	0%	4%
- whereof divestment		-6%		-9%
Growth, Organic	-2%	25%	2%	22%
EBITDA margin EBITA margin	38.1% 32.7%	34.2% 29.1%	30.4% 22.3%	26.4% 18.1%	25.4% 15.1%

Amounts referring to 100% of the company.

EBITA increased NOK 68m during the quarter compared with the year-earlier period. This improvement was attributable to lower costs, higher efficiency in logistics, for example, and an improved product range mix.

Due to limited delivery capacity from Asia, Plantasjen has scheduled its deliveries for an earlier date to ensure its products are available before the start of the school year and the Christmas season. Cash flow from operations decreased 1% compared with the year-earlier period as a result of the earlier deliveries.

Holding

99 %

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 1,185 in 2020.

8 Ratos Interim Report 2021 Q2

Industry

Business area development

During the second quarter of 2021, net sales for Industry increased by 6% (7% organically). EBITA decreased to SEK 109m (141) due to a weaker earnings trend in Diab. For details, see each company section.

			Net sales	Net sales			Q1-2 Q1-2 LTM Full Year 2021 2020 Rolling 2020 EBITA
SEKm	Q2 2021	Q2 2020	Q1-2 2021	Q1-2 LTM Full Year 2020 Rolling 2020	Q2 2021	Q2 2020	Q1-2 2021
Companies in its entirety Diab HL Display LEDiL TFS Companies total Adjustment for Ratos's holding Total, adjusted for Ratos's holding Growth, net sales 1⁾ EBITA margin 1⁾ 1⁾Adjusted for Ratos's holding	505 441 124 219 1,289 -43 1,246 6%	585 352 94 202 1,233 -57 1,176 1%	949 848 238 409 2,444 -102 2,342 0%	1,065 2,006 2,121 757 1,610 1,520 204 423 389 434 803 828 2,460 4,842 4,858 -115 -211 -224 2,345 4,631 4,634 3% 0% 1%	14 58 29 18 118 -9 109 8.8%	88 42 21 1 152 -11 141 12.0%	62 118 58 29 266 -21 245 10.5%

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EBITA fell 85% during the second quarter as a result of a significant increase in raw material costs and 33% lower sales in the wind segment. While the company implemented price adjustments to offset these increased costs, they did not yield results during the quarter.

The subsidies for wind power in China were discontinued at the end of 2020. As a result, investments in wind power in China in 2020 exceeded the total capacity installed over the past three years. These high investments in capacity and discontinued subsidies meant that investments in wind power have decreased significantly since the end of 2020. We previously underestimated the impact this would have on current year, but now expect the market to normalise in 2022.

The marine segment performed well in the second quarter, with sales growth of 74% compared with the second quarter of 2020. Diab’s net sales decreased a total of 14% compared with the year-earlier period.

Diab’s planned transition to the production of new materials continued in an effort to meet future demand in the wind market. While this transition will strengthen the company in the long term, it will also entail increased costs in 2021 and have a negative impact on cash flow.

		Q2	Q1-2		LTM
SEKm	2021	2020	2021	2020	21/20
Net sales	505	585	949	1,065	2,006
EBITDA	39	112	113	205	288
EBITA	14	88	62	157	184
Cash flow from operations	-52	-17	-66	-18	16
Interest-bearing net debt			1,017	971
-whereof leasing liability			117	117
Growth, Net sales	-14%	20%	-11%	15%
- whereof currency effect	-5%	-1%	-6%	1%
Growth, Organic	-9%	21%	-5%	14%
EBITDA margin	7.7%	19.2%	11.9%	19.2%	14.3%
EBITA margin	2.7%	15.0%	6.5%	14.8%	9.2%
Amounts referring to 100% of the company.

Holding 98 %

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 1,234 in 2020.

9 Ratos Interim Report 2021 Q2

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Net sales in the second quarter increased 22% organically compared with the year-earlier period. The companies acquired during the year contributed 8 percentage points. The growth was partly attributable to strong sales growth in France.

During the first quarter of 2021, costs for raw materials and shipping increased rapidly in HL Display’s markets, which the company compensated for through price increases early in the second quarter. The increases in costs continued during the rest of the second quarter.

EBITA rose 38% in the second quarter compared with the yearearlier period due to increased sales and continued efficiency improvements.

			Q1-2		LTM
SEKm	2021	2020	2021	2020	21/20
Net sales	441	352	848	757	1,610
EBITDA	77	63	152	119	285
EBITA	58	42	118	79	202
Cash flow from operations	74	56	87	96	244
Interest-bearing net debt			216	354
-whereof leasing liability			103	88
Growth, Net sales	25%	-12%	12%	-5%
- whereof currency effect	-5%	-1%	-6%	1%
- whereof acquisition	8%		5%
Growth, Organic	22%	-11%	13%	-6%
EBITDA margin	17.4%	18.0%	17.9%	15.7%	17.7%
EBITA margin	13.3%	12.0%	13.9%	10.4%	12.6%

Amounts referring to 100% of the company.

Holding

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 995 in 2020.

99 %

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Net sales in the second quarter rose 42% organically compared with the year-earlier period, driven by strong sales in the outdoor and indoor segments, particularly in Europe and the US.

The order book remained at a high level during the year, 32% higher than in the year-earlier period. The order intake is expected to remain strong during the next few quarters.

EBITA increased by 43% over the year-earlier period, driven by higher sales and continued operating efficiency despite unusually high transportation costs.

Global problems with raw materials and component availability could create short-term uncertainty that will impact demand.

		Q2	Q1-2		LTM
EURm	2021	2020	2021	2020	21/20
Net sales EBITDA	12.2 3.7	8.8 2.7	23.5 7.4	19.1 5.5	41.5 12.4
EBITA	2.8	2.0	5.7	4.0	9.1
Cash flow from operations	3.6	2.0	5.3	4.2	8.7
Interest-bearing net debt			10.4	17.2
-whereof leasing liability			1.4	1.4
Growth, Net sales	39%	-6%	23%	-4%
- whereof currency effect	-3%	1%	-3%	1%
Growth, Organic	42%	-7%	26%	-5%
EBITDA margin	30.0%	30.3%	31.5%	28.7%	30.0%
EBITA margin	23.1%	22.5%	24.3%	20.7%	21.8%

Amounts referring to 100% of the company.

==> picture [56 x 31] intentionally omitted <==

----- Start of picture text -----

Holding
66 %
----- End of picture text -----

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 107 in 2020.

10 Ratos Interim Report 2021 Q2

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Revenue from service sales* increased 11% compared with the year-earlier period. This improvement was attributable to strong sales and efficiency combined with a diminished impact from the Covid-19 pandemic.

EBITA rose EUR 1.7m, mainly driven by higher sales combined with a lower cost structure. It should be noted that EBITA in the second quarter of 2020 was unusually low due to the Covid-19 pandemic.

The higher activity level is expected to continue in the coming quarters, fuelled by a strong order book and continued high market growth.

*According to IFRS, TFS and other contract research organisations (CROs) generate two types of revenue:

1) Service sales (actual revenue-generating sales) and 2) re-invoicing 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.

			Q1-2		LTM
EURm	2021	2020	2021	2020	21/20
Net sales	21.6	18.9	40.4	40.7	78.6
EBITDA	2.3	0.7	4.0	2.5	8.0
EBITA	1.7	0.1	2.8	1.1	5.7
Cash flow from operations	6.5	1.1	6.6	2.1	6.5
Interest-bearing net debt			-1.9	2.3
-whereof leasing liability			2.8	4.1
Growth, Net sales	14%	-14%	-1%	-6%
- whereof currency effect	0%	0%	0%	0%
Growth, Organic	14%	-15%	-1%	-7%
EBITDA margin	10.6%	4.0%	10.0%	6.1%	10.1%
EBITA margin	8.0%	0.3%	7.0%	2.7%	7.3%

Amounts referring to 100% of the company.

TFS is a global, mid-sized, clinical contract research organisation (CRO) that supports biotech companies through the entire clinical development process. TFS focuses its scientific and medical competence across a broad therapeutic spectrum, with industryleading capabilities in dermatology, oncology and haematology. TFS has two business Areas: Clinical Development Services (CDS), which offers clinical trials for small pharmaceutical companies during the development process, and Strategic Resourcing Solutions (SRS), which offers resource solutions featuring clinical professionals and targeting major pharmaceutical companies. Over the past five years, TFS has been involved in approximately 1,100 studies in 40 countries across Europe and North America. The average number of employees in the company amounted to 636 in 2020.

Holding

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100 %
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11 Ratos Interim Report 2021 Q2

Ratos’s companies

Adjusted for Ratos’s holdings

SEKm	Q2 Q2 Q1-2 Q1-2 LTM Full Year Q2 Q2 Q1-2 Q1-2 LTM Full Year 2021 2020 2021 2020 Rolling 2020 2021 2020 2021 2020 Rolling 2020 EBITDA Net sales
Aibel airteam Diab HENT HL Display KVD LEDiL Oase Outdoors Plantasjen Speed Group TFS Vestia	924 906 1,916 1,967 3,795 3,846 71 51 138 100 263 225 232 242 442 435 938 932 26 20 41 29 109 96 507 563 934 1,024 1,950 2,040 40 108 111 197 279 365 1,579 1,548 2,958 3,201 6,062 6,306 36 33 81 82 180 181 437 349 841 752 1,598 1,508 76 63 151 118 283 250 142 101 245 194 444 393 20 14 37 27 77 67 82 62 158 135 281 258 25 19 50 39 84 73 176 131 269 231 366 328 50 35 70 47 66 43 2,319 2,357 2,960 2,900 4,599 4,539 881 812 899 765 1,171 1,037 177 127 331 247 592 508 42 27 77 48 143 113 219 201 409 434 802 827 23 8 41 26 82 67 153 153 153 9 9 9 6,949 6,588 11,615 11,521 21,580 21,486 1,300 1,191 1,705 1,476 2,746 2,518 633 1,288 1,279 2,567 132 232 292 524 6,949 7,221 11,615 12,809 22,859 24,053 1,300 1,323 1,705 1,708 3,038 3,041 -4% -9% -5% -2% 0% 0% 18.7% 18.3% 14.7% 13.3% 13.3% 12.6%
Bisnode Total Change Margin
	EBITA Profit/loss before tax
SEKm	Q2 Q2 Q1-2 Q1-2 LTM Full Year Q2 Q2 Q1-2 Q1-2 LTM Full Year 2021 2020 2021 2020 Rolling 2020 2021 2020 2021 2020 Rolling 2020
Aibel	51 30 97 59 181 143 13 19 44 -4 81 33
airteam Diab HENT HL Display KVD LEDiL Oase Outdoors Plantasjen Speed Group TFS Vestia	24 19 38 24 101 88 23 18 36 23 96 83 14 84 61 151 179 269 26 28 73 96 144 167 22 20 53 55 124 126 22 23 53 46 108 100 58 42 117 78 201 162 48 35 108 62 177 131 13 7 21 11 46 37 12 6 21 10 44 33 19 14 39 28 61 51 18 13 37 26 58 47 49 34 68 44 62 38 47 31 65 38 53 27 756 694 659 525 695 561 674 613 511 355 380 225 23 11 40 17 66 43 18 7 30 10 47 27 18 1 29 12 59 42 12 1 16 10 37 32 9 9 9 5 5 5 1,055 954 1,228 1,004 1,783 1,558 921 793 999 673 1,231 905 91 149 203 352 115 144 136 280 1,055 1,045 1,228 1,153 1,986 1,910 921 907 999 816 1,368 1,185 1% 7% 4% 2% 22% 15% 15.2% 14.5% 10.6% 9.0% 8.7% 7.9% 13.3% 12.6% 8.6% 6.4% 6.0% 4.9%
Bisnode Total Change Margin
SEKm

12 Ratos Interim Report 2021 Q2

Financial information

Ratos Group results April–June

Operating profit for the period was impacted in an amount of SEK -113m by the revaluation of shares in Dun & Bradstreet. Operating profit from continuing operations amounted to SEK 915m (955). All companies, with the exception of Diab and Aibel, reported better earnings compared with the year-earlier period. Plantasjen and Oase Outdoors accounted for the greatest improvements in absolute figures, while Speed Group, TFS and KVD accounted for the greatest improvements in terms of percentage.

Operating profit from continuing operations includes profit and shares of profit from the companies of SEK 1,076m (991). Ratos’s income and expenses attributable to the parent company and central companies amounted to SEK -49m (-37). The higher expenses are connected to incentive programmes, although the underlying personnel costs and overheads are lower than in the year-earlier period. Net financial items from continuing operations amounted to SEK -88m (-166). This improvement in net financial items is attributable to lower interest expenses to banks of SEK -13m (-40) and positive effects of SEK 11m (-37) from the remeasurement/redemption of financial instruments.

For continuing operations, profit before tax amounted to SEK 827m (790), including profit and shares of profit from the companies of SEK 980m (835). Tax expense for the period amounted to SEK -166m (-155).

Since the agreement to divest Bisnode was signed in October 2020 and the transaction was completed in January 2021, Bisnode is recognised as a discontinued operation. This means that’s Bisnode’s 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 27 for more details on earnings for the period.

Ratos Group results January–June

Operating profit for the period was impacted in an amount of SEK -131m by the revaluation of shares in Dun & Bradstreet. Operating profit from continuing operations amounted to SEK 1,069m (941). All companies, with the exception of Diab and HENT, reported better earnings compared with the yearearlier period. Plantasjen and Aibel accounted for the greatest improvements in absolute figures, while Speed Group, TFS and KVD accounted for the greatest improvements in terms of percentage.

Operating profit from continuing operations includes profit and shares of profit from the companies of SEK 1,280m (1,010).

Ratos’s income and expenses attributable to the parent company and central companies amounted to SEK -81m (-72). The higher expenses for the period are connected to incentive programmes.

Net financial items from continuing operations amounted to SEK -175m (-278). The change in net financial items is attributable to lower interest expenses to banks of SEK -33m (-78), remeasurement/redemption of financial instruments of SEK -3m (-27) and lower currency effects and currency derivatives of SEK 4m (-31).

For continuing operations, profit before tax amounted to SEK 894m (663), including profit and shares of profit from the

companies of SEK 1,099m (729). Tax expense for the period amounted to SEK -197m (-152). Since the agreement to divest Bisnode was signed in October 2020 and the transaction was completed in January 2021, Bisnode is recognised as a discontinued operation. This means that’s Bisnode’s 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 27 for more details on earnings for the period.

Ratos Group’s cash flow April–June

Cash flow for the quarter amounted to SEK 699m (579), of which cash flow from operating activities accounted for SEK 1,461m (1,681). Cash flow from investing activities amounted to SEK -215m (-146) and cash flow from financing activities to SEK -548m (-956).

The improvement in cash flow for the quarter was mainly due to financing activities and the sale of treasury shares as well as reduced loan repayments. Cash flow from operating activities declined as a result of higher tied-up capital. The acquisition of companies during the quarter had a negative effect on cash flow from investing activities.

Ratos Group’s cash flow January–June

Cash flow for the period amounted to SEK 1,239m (562), of which cash flow from operating activities accounted for SEK 1,072m (1,940). Cash flow from investing activities amounted to SEK 2,312m (-327) and cash flow from financing activities to SEK -2,145m (-1,050).

The improvement in cash flow for the period was mainly due to investing activities and the sale of Bisnode. Cash flow from operating activities declined as a result of higher tied-up capital. Increased amortisation of loans and dividends paid during the period had a negative impact on cash flow from financing activities.

Financial position and leverage

The Group’s cash and cash equivalents at the end of the period amounted to SEK 4,492m (3,182 at 31 December 2020) and interest-bearing net debt totalled SEK 2,543m (7,269 at 31 December 2020). The Group’s leverage at the end of the period amounted to 0.5x (2.3x at 31 December 2020). The leverage excluding financial lease liabilities at the end of the period amounted to -0.7x (1.1x at 31 December 2020). The total translation effect of currency for interest-bearing liabilities amounted to approximately SEK 140m, of which approximately SEK 50m related to liabilities to credit institutions and approximately SEK 90m to financial lease liabilities.

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

13 Ratos Interim Report 2021 Q2

to an amount of SEK 924m. The fair value and book value of the shares at the end of the period amounted to SEK 793m and is included in financial assets.

Ratos’s equity

At 30 June 2021, Ratos’s equity (attributable to owners of the parent) amounted to SEK 11,683m (9,366 at 31 December 2020), corresponding to SEK 36 per share outstanding (29 at 31 December 2020).

Parent company

The parent company posted an operating loss of SEK -77m (-71) for the period. The parent company’s profit before tax amounted to SEK 1,730m (167), of which SEK 1,878m (65) 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. Cash and cash equivalents in the parent company amounted to SEK 2,338m (1,166 at 31 December 2020).

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 savings for the Group. During the period, loans were issued by the parent company to HL Display, Diab, LEDiL and KVD. More companies, such as Plantasjen, will be financed by Ratos AB during the course of the year.

Ratos’s share

Earnings per share for the period amounted to SEK 7.20 (1.81) before dilution and to SEK 7.14 (1.80) after dilution. Earnings per share for continuing operations amounted to SEK 1.86 (1.47) before dilution and to SEK 1.85 (1.47) after dilution. The closing price for Ratos’s Class B shares on 30 June 2021 was SEK 51.90. The total return on Class B shares in the first quarter amounted to 37.6%, compared with the performance for the SIX Return Index, which was 22.4%.

Incentive programmes

During the period, 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, 752,500 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 period, 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). After

the redemption and divestment of Ratos treasury shares, the total number of Class A and B shares amounted to 323,923,396. On 30 June 2021, the total number of shares in Ratos (Class A and B shares) amounted to 324,140,896 and the number of votes to 108,587,444.

Important events during and after the end of the period

On 9 April, Ratos acquired 63% of Vestia Construction Group, which is active in the Gothenburg market. Vestia’s sales for the current financial year are estimated to be approximately SEK 750m. The acquisition of Vestia is a complement to Ratos’s existing construction company, HENT, both geographically and in terms of expertise.

On 1 April, the transfer of Ratos’s treasury shares was completed. On 29 March, Ratos’s Board decided to transfer treasury shares, pursuant to the authority granted by the AGM on 10 March 2021, representing 1.37% of the total number of shares outstanding. 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. The transaction was completed with a discount of 4.05% compared with the closing price on 29 March 2021 and a discount of 3.97% compared with the volume-weighted average share price in the month prior to the transaction as well as a premium of 2.61% compared with the volume-weighted average share price in the three months prior to the transaction.

On 1 April, HL Display acquired the company CoolPresentation, thus strengthening its market position in the Netherlands. CoolPresentation has established a position in the Dutch market with high-quality products and services for grocery retailers, pharmacies and brand manufacturers. CoolPresentation has approximately SEK 40m in sales.

On 17 May, Diab acquired production of ULTEM[TM ] foam from SABIC, a global chemicals company, in order to expand the product offering and better serve high-end core material applications. ULTEM[TM] resin-based foam has excellent fire, smoke and toxicity (FST) properties, making the material especially well-suited for aerospace applications. Diab will relocate the acquired production line equipment to its manufacturing site in DeSoto, TX, USA. During 2021, Diab will assume responsibility for sales, marketing, production and product management for the product portfolio.

On 20 May, Ratos announced that Aibel’s owners, including Ratos, were considering the possibility of diversifying the company’s ownership, preferably through a listing on the Oslo Stock Exchange, in order to further accelerate the company’s transition into the renewable energy industry. However, a final decision has not been taken.

On 30 June, the wholly owned KVD Group signed an agreement to acquire 100% of Forsbergs Fritidscenter (Forsbergs), which is the largest mobile home and caravan dealer in the Nordics. With this acquisition, KVD expanded its range and strengthened its offering to the end consumer. The transaction has a strong commercial rationale based on the growing importance of online sales, opportunities for knowledge sharing and significant synergy potential. The purchase price is SEK 275m, corresponding to a 5.6 multiple of EV/EBITA, with financing taking place through a long-term loan agreement from Ratos to KVD.

14 Ratos Interim Report 2021 Q2

Key figures

For definitions, see page 29

For definitions, see page 29
SEKm	Q1-2 2021	Q1-2 Full Year 2020 2020
Leverage, Ratos Group Leverage, Ratos business group incl. parent company cash 1⁾ Equity ratio, Ratos Group % Return on equity, Ratos Group % Return on capital employed, Ratos Group % Return on capital employed, Ratos business group % Key figures per share 2⁾ Total return, % Dividend yield, % Market price, SEK Dividend, SEK Equity attributable to owners of the parent, SEK 3⁾ Basic earnings per share, SEK Diluted earnings per share, SEK Average number of ordinary shares outstanding: – before dilution – after dilution Total number of registered shares Number of shares outstanding⁴⁾ – of which, Class A shares – of which, Class B shares	0,5x -1,1x 49.4 22.2 17.5 11.7 37.6 51.90 36.04 7.20 7.14 321,501,344 324,737,389 324,140,896 323,923,396 84,637,060 239,286,336	2,4x 2,3x 1,5x 1,1x 39.2 39.4 6.1 7.3 9.9 9.3 8.5 10.6 -25.4 17.3 2.5 24.92 38.48 0.95 30.13 29.36 1.81 2.17 1.80 2.17 319,014,634 319,014,634 320,639,067 321,037,084 324,140,896 324,140,896 319,014,634 319,014,634 84,637,060 84,637,060 234,377,574 234,377,574

1⁾ Excluding financial leasing liability

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

15 Ratos Interim Report 2021 Q2

Financial statements

Consolidated income statement

Consolidated income statement
	Q2 2021	Q2 2020	Q1-2 2021	Q1-2 Full Year 2020 2020
SEKm
Net sales Other operating income Cost of goods and services sold Employee benefit costs Depreciation/amortisation and impairment of property, plant and equipment and intangible assets and right-of-use assets Other external costs Capital gain/loss from Group companies Share of profit/loss from investments recognised according to the equity method Revaluation listed shares	6,994 24 -3,979 -1,315 -252 -461 17 -113	6,525 24 -3,774 -1,176 -237 -429 24	11,426 68 -6,552 -2,439 -485 -873 55 -131	11,229 20,941 38 70 -6,694 -12,624 -2,290 -4,358 -473 -966 -864 -1,650 0 0 -5 44
Operating profit Financial income Financial expenses	915 4 -92	955 3 -168	1,069 32 -207	941 1,457 20 26 -298 -610
Net financial items Profit before tax Income tax Profit for the period, continuing operations1⁾ Profit for the period, discontinued operations Profit for the period Profit/loss for the period attributable to: Owners of the parent Non-controlling interests Earnings per share, SEK - basic earnings per share - diluted earnings per share Earnings per share from continuing operations, SEK - basic earnings per share - diluted earnings per share	-88 827 -166 661 18 679	-166 790 -155 634 145 780	-175 894 -197 697 1,716 2,412	-278 -584 663 873 -152 -258 511 614 156 269 667 883

	620	700	2,316	576 693
	59	80	96	91 191

	1.91	2.19	7.20	1.81 2.17
	1.90	2.18	7.14	1.80 2.17

	1.86	1.87	1.86	1.47 1.58
	1.84	1.87	1.85	1.47 1.58

1⁾ Profit for the period from continuing operations attributable to the owners of the parent for Q2 amounts to SEK 602m (598), Q1-2 to SEK 597m (467) and for full year 2020 to SEK 505m. Profit for the period from continuing operations attributable to non-controlling interests for Q2 amounts to SEK 59m (36), Q1-2 to SEK 100m (44) and for full year 2020 to SEK 109m.

Consolidated statement of comprehensive income

	Q2 2021	Q2 2020	Q1-2 2021	Q1-2 Full Year 2020 2020
SEKm
Profit for the period Items that will not be reclassified to profit or loss: Remeasurement of defined benefit pension obligations, net Tax attributable to items that will not be reclassified toprofit or loss	679 -0	780 -22 5	2,412 -44	667 883 -30 -30 5 5
Items that may be reclassified subsequently to profit or loss: Translation differences for the period Change in hedging reserve for the period Tax attributable to items that maybe reclassified subsequentlytoprofit or loss	-0 -91 13 -3	-17 -247 -7 -3	-44 147 45 -10	-25 -25 -275 -480 -28 -34 5 2
Other comprehensive income for the period Total comprehensive income for the period Total comprehensive income for the period attributable to: Owners of the parent Non-controlling interest	-81 -82 597 555 42	-257 -275 505 476 29	182 138 2,550 2,437 113	-299 -512 -324 -537 343 346 326 278 17 69

Ratos Interim Report 2021 Q2

Summary consolidated statement of financial position

SEKm	2021-06-30	2020-06-30 2020-12-31
ASSETS Non-current assets Goodwill Other intangible non-current assets Property, plant and equipment Right-of-use assets Financial assets Deferred tax assets	7,339 1,198 1,267 4,591 1,985 174
		11,351 6,958 1,846 1,123 1,206 1,198 4,248 4,677 1,097 1,072 438 156
Total non-current assets Current assets Inventories Current receivables Cash and cash equivalents	16,554 1,357 3,764 4,492	20,185 15,185 1,174 1,075 4,188 3,094 3,712 2,826
Assets held for sale	9,613	9,074 6,995 6,458
Total current assets	9,613	9,074 13,453
Total assets EQUITY AND LIABILITIES Equity including non-controlling interests Non-current liabilities Interest-bearing liabilities Non-interest bearing liabilities Pension provisions Other provisions Deferred tax liabilities	26,167 12,923 5,180 269 86 28 311	29,259 28,638 11,466 11,281 7,525 6,760 285 257 676 86 23 28 360 275
Total non-current liabilities Current liabilities Interest-bearing liabilities Non-interest bearing liabilities Provisions	5,875 1,850 5,093 426	8,869 7,405 2,234 1,601 6,248 4,403 443 447
Liabilities attributable to assets held for sale	7,369	8,925 6,451 3,501
Total current liabilities	7,369	8,925 9,952
Total liabilities	13,244	17,793 17,357
Total equity and liabilities	26,167	29,259 28,638

17 Ratos Interim Report 2021 Q2

Summary statement of changes in consolidated equity

SEKm	2021-06-30	Owners of the parent Non- controlling interest Total equity Owners of the parent Non- controlling interest Total equity 2020-06-30 2020-12-31
	Owners of the parent Non- controlling interest Total equity
Opening equity Total comprehensive income for the period Dividends Non-controlling interests’ share of capital contribution and new issue Transfer of treasury shares The value of the conversion option of the convertible debentures Option premiums Share options redeemed by employees Put options, future acquisitions from non- controlling interests Acquisition of shares in subsidiaries from non- controlling interests Disposal of shares in subsidiaries to non- controlling interests Non-controlling interests at acquisition Non-controllinginterests in disposals	9,366 1,915 11,281 2,437 113 2,550 -303 -303 -0 -0 218 218 5 5 5 5 -4 -4 -17 -17 -34 -5 -39 -8 14 6 140 140 -918 -918	9,298 1,920 11,218 9,298 1,920 11,218 326 17 343 278 69 346 -75 -75 -207 -75 -283 2 2 2 2 2 2 2 2 0 0 0 0 -16 -2 -18 -5 -5 1 -7 -6 -12 -7 -19 -0 -0 -0 7 11 19
Closing equity	11,683 1,240 12,923	9,611 1,855 11,466 9,366 1,915 11,281

18 Ratos Interim Report 2021 Q2

Consolidated statement of cash flows

Consolidated statement of cash flows
SEKm	Q2 2021	Q2 2020	Q1-2 2021	Q1-2 Full Year 2020 2020
Operating activities Operating profit, continuing operations Operating profit, discontinued operations	915 18 305	955 122	1,069 1,721 -1,289	941 1,457 197 472
Adjustment for non-cash items		277		678 1,332
Income taxpaid	1,238 -55	1,354 -39	1,501 -137	1,816 3,261 -133 -223
Cash flow from operating activities before change in working capital	1,183 93 -90 275	1,315	1,364 -250 -301 259	1,683 3,038
Cash flow from change in working capital Increase (-)/Decrease (+) in inventories Increase (-)/Decrease (+) in operating receivables

		187		-153 -109
		156		79 264
Increase (+)/Decrease (-) in operatingliabilities		22		330 7
Cash flow from operating activities	1,461 -117 5 -103 0	1,681	1,072 -116 2,621 -195 1	1,940 3,201
Investing activities Acquisition, group companies Disposal, group companies Investments and disposal, intangible assets/property, plant and equipment Investments and disposal, financial assets

				-28 -38
		1		1 2
		-146		-304 -664
		-0		0 0
Interest received				4 6
Cash flow from investing activities	-215 196 2 -19 -34 82 -531 -81 -163	-146	2,312 0 218 2 -236 -31 -303 524 -1,836 -171 -313	-327 -694
Financing activities Non-controlling interests' share of issue/capital contribution Transfer of treasury shares Option premiums paid Repurchase/final settlements options Acquisition and disposal of shares in subsidiaries from non-controlling interests Dividends paid Dividends paid, non-controlling interests Borrowings

		2		2 2

				3 3
		-5		-6 -39
		-6		-6 -0
				-207
				-75
		89		587 795
Amortisation of loans Interest paid Amortisation of financial lease liabilitities		-749 -111 -177		-1,056 -1,832 -225 -439 -350 -673
Cash flow from financing activities	-548 699 3,789 4 4,492 4,492	-956	-2,145 1,239 3,182 71 4,492 4,492	-1,050 -2,467
Cash flow for the period Cash and cash equivalents at the beginning of the period Exchange differences in cash and cash equivalents Cash and cash equivalents at the end of the period - attributable to continuing operations - attributable to discontinued operations
		579		562 40

		3,184		3,219 3,219
		-51		-69 -77
		3,712		3,712 3,182
		3,712		3,712 2,826
				356

19 Ratos Interim Report 2021 Q2

Parent company income statement

SEKm	Q2 2021	Q2 2020	Q1-2 2021	Q1-2 Full Year 2020 2020
Other operating income Administrative expenses Depreciation of property, plant and equipment	3 -48 -0	0 -37 -0	3 -80 -0	0 5 -71 -155 -0 -0
Operating profit/loss	-45 18 17 -11	-37	-77 1,878 -70 10 -12	-71 -150
Gain from sale of participating interests in group companies				65 134
Dividends from group companies Result from other securities and receivables accounted for as non-current assets				175 175 1
Other interest income and similar profit/loss items		1		9 0
Interest expenses and similarprofit/loss items		-9		-10 -18
Profit/loss after financial items Income tax	-21 0	-46 0	1,730 0	167 142 0 0
Profit/loss for the period	-20	-46	1,730	168 143

Parent company statement of comprehensive income

SEKm	Q2 2021	Q2 2020	Q1-2 2021	Q1-2 Full Year 2020 2020
Profit/loss for the period	-20	-46	1,730	168 143
Other comprehensive income for the period	0 -20	0	0	0 0
Total comprehensive income for the period		-46	1,730	168 143

20 Ratos Interim Report 2021 Q2

Summary parent company balance sheet

SEKm	2021-06-30	2020-06-30 2020-12-31
ASSETS Non-current assets Property, plant and equipment Financial assets Receivables fromgroupcompanies	1 6,919 1,336	1 1 7,588 7,602 1
Total non-current assets Current assets Current receivables Receivables from group companies Cash and cash equivalents	8,255 43 72 2,338	7,590 7,603 24 16 180 7 1,245 1,166
Total current assets	2,453	1,449 1,189
Total assets EQUITY AND LIABILITIES Equity Non-current liablities Interest-bearing liabilities, group companies Interest-bearing liabilities Non-interest bearing liabilities Convertible debentures Deferred tax liabilities	10,708 9,870 585 52 6 92 2	9,039 8,792 8,452 8,219 355 391 35 48 8 14 53 54 1 1
Total non-current liabilities Current provisions Current liabilities Interest-bearing liabilities, group companies Interest-bearing liabilities Non-interest bearingliabilities	738 66 0 33	453 508 2 10 92 0 1 40 53
Total current liabilities	34	132 54
Total equity and liabilities	10,708	9,039 8,792

Summary statement of changes in parent company’s equity

SEKm	2021-06-30	2020-06-30 2020-12-31
Opening equity Comprehensive income for the period Dividends Transfer of treasury shares Excercise of options The value of the conversion option of the convertible debentures Deferred tax, conversion option Optionpremiums	8,219 1,730 -303 218 -4 6 -1 5	8,281 8,281 168 143 -207 3 3 -1 -1 0 0
Closing equity	9,870	8,452 8,219

21 Ratos Interim Report 2021 Q2

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 second 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-creating 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 going forward, 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 will cease, and instead the company will be taxed under the rules for limited companies. The date of the transition to the new tax rules, and the effects of the transition, are unknown at present.

The ongoing Covid-19 pandemic had an impact on earnings for the period and creates uncertainty for Ratos’s financial development for the rest of 2021. The impact of Covid-19 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.

22 Ratos Interim Report 2021 Q2

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 subcomponents 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 29 of this report.

Net sales

SEKm	Q2 2021	Q2 2020	Q1-2 2021	Q1-2 Full Year 2020 2020
Ratos business group, Net sales Net sales in subsidiaries, holding not owned by Ratos Subsidiaries divested during current year Investments recognised according to the equity method Eliminations	6,949 970 -924 -0	7,221 1,120 -906 -906 -5	11,615 1,727 -1,916 -0	12,809 24,053 2,241 4,419 -1,843 -3,673 -1,967 -3,846 -11 -12
Ratos Group, Net sales continued operations	6,994	6,525	11,426	11,229 20,941

Organic growth, Ratos’s holding

SEKm	Q2 2021	Q2 2020	Q1-2 2021	Q1-2 Full Year 2020 2020
Ratos business group, Growth Net Sales, % Ratos businessgroup, Net sales	-3.8% 6,949	1.7% 7,221	-9.3% 11,615	4.1% -1.8% 12,809 24,053
Acquired net sales Effects from change in currency	182 35	4 -377	187 -144	19 40 -457 -1,227
Ratos business group, adjusted Net Sales Divested net sales in the comparison period Ratos businessgroup, adjusted Net Sales in the comparisonperiod	6,732 633 6,588	7,594 102 6,995	11,571 1,288 11,521	13,246 25,240 198 231 12,112 24,251
Ratos business group, Organic growth	144	599	50	1,134 989
Ratos business group, Organic growth, %	2.0%	8.6%	0.4%	9.4% 4.0%

EBITDA, EBITA and Group operating profit

EBITDA, EBITA and Group operating profit
	Q2 2021	Q2 2020	Q1-2 2021	Q1-2 Full Year 2020 2020
SEKm
Ratos business group, EBITDA Depreciation and impairment	1,300 -245	1,323 -278	1,705 -476	1,708 3,041 -555 -1,131
Ratos business group, EBITA Ratos business group, EBITA margin EBITA in subsidiaries, holding not owned by Ratos Subsidiaries divested during current year Investments recognised according to the equity method Income and expenses attributable to the parent company and central companies Other	1,055 15.2% 63 -35 -162 1	1,045 14.5% 86 -130 -7 -37 1	1,228 10.6% 104 -42 -213 2	1,153 1,910 9.0% 7.9% 140 308 -213 -504 -64 -100 -72 -151 2 3
Ratos Group, EBITA continued operations Amortisation and impairment of intangible assets in connection with company acquisitions	923 -8	958 -3	1,080 -11	947 1,468 -6 -12
Ratos Group, Operating profit continued operations	915	955	1,069	941 1,457

23 Ratos Interim Report 2021 Q2

Cash flow from operations

Cash flow from operations
SEKm	Q2 2021	Q2 2020	Q1-2 2021	Q1-2 2020	Full Year 2020
Ratos business group, Cash flow from operations	1,105	1,232	580	1,124	1,768
Cash flow from operations in subsidiaries, holding not owned by Ratos Cash flow from operations, holdings divested during current year Investments recognised according to the equity method Investement and disposals, intangible assets/property, plant and equipment Lease payment Income tax paid Attributable to the parent company and central companies Eliminations	37	57	-26	160	327
	-0		40
	100	77	98	98	-140
	103	146	195	304	664
	224	236	435	469	932
	-55	-39	-137	-133	-223
	190	-27	58	-83	51
	-242	-1	-170	-0	-180
Ratos Group, Cash flow from operating activities	1,461	1,681	1,072	1,940	3,201

Interest-bearing net debt

Interest-bearing net debt
SEKm	2021-06-30	2020-06-30 2020-12-31
Ratos business group, Interest-bearing net debt	6,551	7,923 8,149
Interest-bearing net debt in subsidiaries, holding not owned by Ratos Investments recognised according to the equity method Internal loans Attributable to the parent company and central companies Other	261	746 777
	-751	-872 -620
	-1,331	-1,154
	-2,209	-1,061
	23	22 23
Ratos Group, Interest-bearing net debt	2,543
	2021-06-30
Interest-bearing liabilities, other Interest-bearing liabilities, leasing Provisions for pensions Interest-bearing assets Cash and cash equivalents	1,937 5,094 86 -82 -4,492	5,048 4,503 4,711 5,362 676 629 -59 -43 -3,712 -3,182
Ratos Group, Interest-bearing net debt	2,543	6,664 7,269

24 Ratos Interim Report 2021 Q2

Note 4 Acquired and divested businesses

Acquisitions within subsidiaries

On 4 March, HL Display acquired Concept Group, a UK supplier of store solutions and services with 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. Refer to the preliminary purchase price allocation for the acquisitions below.

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

	SEKm
Intangible assets Property, plant and equipment Deferred tax asset Trade receivables Current assets Cash and cash equivalents Deferred tax liability Current liabilities Net identifiable assets and liabilities Goodwill	4
	6 1 16 13 20 -0 -14 44 30
Consideration transferred of which, paid in cash of which, contingent consideration	74 67 8

Acquisition of Vestia

In March, Ratos signed an agreement to acquire 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 acquisition was completed on 9 April.

The total payment made for the shares in Vestia Construction Group amounted to SEK 254m, of which Ratos contributed SEK 159m. A maximum contingent consideration of SEK 68m (fair value, which corresponds with the book value) may be paid, depending on EBITA from July 2020 to June 2023. Goodwill in the preliminary purchase price allocation amounts to SEK 225m 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 248m and profit before tax of SEK 9m. For the January to June period, net sales amounted to SEK 426m and profit before tax to SEK 11m. Acquisition-related transaction costs amounted to approximately SEK 3.3m.

Preliminary purchase price allocation (PPA), Vestia

	SEKm
Customer contracts	43
Property, plant and equipment Right-of-use assets Trade receivables Current assets Cash and cash equivalents Deferred tax liability Non-current liabilities and provisions Current liabilities Net identifiable assets and liabilities Goodwill	0 6 79 5 33 -10 -23 -105 28 225
Consideration transferred of which, paid in cash of which, contingent consideration	254 149 68

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 the consolidated statement of financial position and statement of cash flows is presented on the next page.

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.

25 Ratos Interim Report 2021 Q2

Income statement from discontinued operations

Income statement from discontinued operations
SEKm	Q2 2021	Q2 2020	Q1-2 2021	Q1-2 Full Year 2020 2020
Income		914 -749	105 -116	1,853 3,691 -1,648 -3,291
Expenses
Profit/loss before tax		165 -18	-10 -1	205 400 -50 -131
Tax
Profit/loss after tax whereof Bisnode Capital gain from divestment of discontinued operations	18	145 145	-11 9 1,727 1,816	156 269 156 269
whereof Bisnode
Total profit/loss for the period Profit/loss for the period attributable to: Owners of the parent Non-controlling interests Earnings per share, SEK - basic earnings per share - diluted earnings per share	18 18 0.06 0.06	145 101 44 0.32 0.32	1,716 1,719 -3 5.35 5.30	156 269 109 189 47 81 0.34 0.59 0.34 0.59

Cash flow statement from discontinued operations

Cash flow statement from discontinued operations
SEKm	Q2 2021	Q2 2020	Q1-2 2021	Q1-2 Full Year 2020 2020
Cash flow from operating activities Cash flow from investing activities		173 -46 -30	61 2,636 -191	344 655 -120 -224 -61 -192
Cash flow from financingactivities
Change in cash and cash equivalents		97	2,506	162 238

Net assets at time of divestment

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

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

26 Ratos Interim Report 2021 Q2

Note 5 Operating segments

			Net sales	Net sales	EBITA a	EBITA a	nd operating profit 1⁾	nd operating profit 1⁾

SEKm	Q2 2021	Q2 2020	Q1-2 2021	Q1-2 Full Year 2020 2020	Q2 2021	Q2 2020	Q1-2 2021	Q1-2 Full Year 2020 2020
Aibel airteam HENT Speed Group Total Construction & Services KVD Oase Outdoors Plantasjen Total Consumer Diab HL Display LEDiL TFS Total Industry	332 2,164 252 2,748 142 224 2,341 2,708 505 441 124 219 1,289	346 2,122 181 2,649 101 167 2,380 2,648 585 352 94 202 1,233	631 4,054 473 5,158 245 343 2,988 3,576 949 848 238 409 2,444	621 1,331 4,388 8,644 354 726 5,363 10,701 194 393 295 418 2,928 4,582 3,416 5,393 1,065 2,121 757 1,520 204 389 434 828 2,460 4,858	17 35 30 33 114 13 62 763 838 14 58 29 18 118	23 26 27 16 92 7 43 700 750 88 42 21 1 152	55 54 72 57 238 21 87 665 773 62 118 58 29 266	-5 43 35 126 75 172 24 62 129 403 11 37 56 48 530 566 597 651 157 280 79 163 42 76 12 42 290 561
Total companies all reported periods Vestia	6,746 248	6,530	11,178 248	11,240 20,952	1,070 14	994	1,277 14	1,016 1,615
Total companies acquired during reported periods Elimination of sales internal	248 -0	-5	248 -0	-11 -12	14		14
Total Net Sales and EBITA, companies Revaluation listed shares Income and expenses in the parent company and central companies	6,994	6,525	11,426	11,229 20,941	1,084 -113 -49 1	994 -37 1	1,291 -131 -81 2	1,016 1,615 -72 -151 2 3
Other
Consolidated EBITA continued operations Amortisation and impairment of intangible assets in connection with companyacquisitions					923 -8	958 -3	1,080 -11	946 1,468 -6 -12
Consolidated operating profit continued operations Bisnode		906	60 45	1,843 3,673	915	955 122	1,069 13 -19	941 1,457 197 473
Bisnode Belgium
Total companies divested during reported periods Bisnode Other		906	104	1,843 3,673	18	122	-6 1,816 -89	197 473
Total exit gains Consolidated net sales and operating profit	6,994	7,431	11,530	13,072 24,614	18 933	1,077	1,727 2,789	1,138 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.

	Q2 2021	Q2 2020	Q1-2 2021	Q1-2 Full Year 2020 2020
SEKm
Break down of net sales	3,753 434 2,744 63	3,651 364 2,462 47	5,562 822 4,933 108	5,389 9,314 733 1,461 4,999 9,964 108 202
Sales of goods Service contracts Construction contracts Reimbursable expenditures
	6,994	6,525	11,426	11,229 20,941

27 Ratos Interim Report 2021 Q2

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 30 June 2021, the total value of financial instruments measured at fair value in accordance with level three was SEK 472m (643 at 31 December 2020). This change was mainly attributable to the exercising of synthetic options in conjunction with the sale of subsidiaries and additional contingent considerations in connection with the acquisition of subsidiaries.

In the statement of financial position at 30 June 2021, the net value of derivatives amounted to SEK -4m (-31 at 31 December 2020), of which SEK 4m (1 at 31 December 2020) was recognised as an asset and SEK 9m (33 at 31 December 2020) as a liability.

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 525m (554 at 31 December 2020).

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 period, the parent company commenced work for Ratos's business group to be financed centrally and issued loans to HL Display, Diab and LEDiL.

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

Note 7 Goodwill

Goodwill changed during the period as shown below.

	Accumulated	Accumulated
SEKm	cost	impairment	Total
Opening balance 1 January 2021	8,302	-1,344	6,958
Business combinations	255		255
Translation differences for
theperiod	148	-23	125
Closing balance
30 June 2021	8,705	-1,367	7,339

	Financial	Other	Capital
SEKm	income	income	contribution	Dividend
2021 Q1-2	9
2020 Q1-2			288	175
2020 Full Year		5	288	175
				Contingent
SEKm	Receivable	Provision	Liability	liability
2021-06-30	1,407	60	585	525
2020-06-30	181		448	557
2020-12-31	7		391	554

Note 9 Exchange rates

Exchange rates, average SEK	Q1-2 Q1-2 Full Year 2021 2020 2020	Q1-2 Q1-2 Full Year 2021 2020 2020
	Q1-2 2021
Danish crowns, DKK Euro, EUR Norwegian crowns, NOK Exchange rates, closing SEK	1.362 10.128 0.996
	2021-06-30
Danish crowns, DKK Euro, EUR Norwegian crowns, NOK	1.362 10.125 0.994	1.406 1.349 10.480 10.038 0.960 0.955

28 Ratos Interim Report 2021 Q2

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.

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.

29 Ratos Interim Report 2021 Q2

The six-month 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.

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Stockholm, 16 July 2021
Ratos AB (publ)
Per-Olof Söderberg
Chairman
Ulla Litzén Eva Karlsson Karsten Slotte
Board member Board member Board member
Jan Söderberg Jonas Wiström
Board member Board member, CEO
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Ratos Interim Report 2021 Q2

THIS REPORT IS A TRANSLATION FROM THE SWEDISH ORIGINAL

Auditor’s review report

Ratos AB (publ), Corp. Reg. No. 556008-3585

Introduction

We have reviewed the condensed interim report for Ratos AB as at 30 June 2021 and for the six months period then ended. The Board of Directors and the CEO are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Scope of review

We conducted our review in accordance with the International Standard on Review Engagements, ISRE 2410 Review of Interim Financial Statements Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act regarding the Group, and in accordance with the Swedish Annual Accounts Act regarding the Parent Company.

Stockholm, date as evidenced by our digital signature Ernst & Young AB

Erik Sandström

Authorized Public Accountant

31 Ratos Interim Report 2021 Q2

Telephone conference 16 July 9:00 a.m. SE: +46 8 566 426 92 UK: +44 333 300 9032 US: +1 631 913 1422, PIN for US: 61959798#

Financial calendar 2021 Interim report Q3 2021 25 October (new date)

For further information, please contact:

Jonas Wiström, President and CEO, +46 8 700 17 00 Jonas Ågrup, CFO, +46 8 700 17 00

This is information that Ratos AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 7:00 a.m. CET on 16 July 2021.

Ratos AB (publ) Drottninggatan 2 Box 1661 SE-111 96 Stockholm Tel: +46 8 700 17 00 www.ratos.com Reg. no. 556008-3585

Ratos is a business group consisting of 12 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.

32 Ratos Interim Report 2021 Q2

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Ratos — Interim / Quarterly Report 2021

2957_ir_2021-07-16_7494c0d5-1f97-466a-8e1a-12249b4b6e58.pdf

Interim report Q2 2021

Interim report January–June 2021

Performance Ratos business group, adjusted for Ratos’s holdings

Performance Ratos Group

Significant events during and after the end of the period

Financial performance

Continued positive earnings trend in the Ratos business group

High rate of M&A activity

Overview, Ratos’s business areas

Net sales and EBITA in Ratos’s business areas

EBITA (SEKm) and EBITA margin (%), Q2

EBITA (SEKm) and EBITA margin (%), LTM[1)]

Construction & Services

Business area development

Consumer

Business area development

99 %

Industry

Business area development

99 %

Holding

Ratos’s companies

Financial information

Ratos Group results April–June

Ratos Group results January–June

Ratos Group’s cash flow April–June

Ratos Group’s cash flow January–June

Financial position and leverage

Ratos’s equity

Parent company

Ratos’s share

Incentive programmes

Number of shares and repurchased/sold shares

Important events during and after the end of the period

Key figures

Financial statements

Consolidated income statement

Consolidated statement of comprehensive income

Summary consolidated statement of financial position

Summary statement of changes in consolidated equity

Consolidated statement of cash flows

Parent company income statement

Parent company statement of comprehensive income

Summary parent company balance sheet

Summary statement of changes in parent company’s equity

Note 1 Accounting principles

Note 2 Risks and uncertainties

Note 3 Alternative performance measures

Reconciliations between alternative performance measures (APM) and IFRS

Net sales

Organic growth, Ratos’s holding

Cash flow from operations

Interest-bearing net debt

Note 4 Acquired and divested businesses

Acquisitions within subsidiaries

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

Acquisition of Vestia

Preliminary purchase price allocation (PPA), Vestia

Divestment of Bisnode

Acquisitions and divestment of Bisnode Belgium

Income statement from discontinued operations

Net assets at time of divestment

Note 5 Operating segments

Note 6 Financial instruments

Note 8 Related party disclosures

Parent company

Note 7 Goodwill

Note 9 Exchange rates

Definitions

Dividend yield

Total return

Return on equity

Return on capital employed

EBITDA

EBITDA margin

EBITA

EBITA margin

Ratos Interim / Quarterly Report 2021