Ratos AB: Ratos presents updated strategic agenda
(Thomson Reuters ONE) -
Press release 12 June 2017
Ratos, in conjunction with its Capital Markets Day being held today, is
presenting an updated strategic agenda. Through increased value creation and
earnings levels in the portfolio companies, the long-term intention is to lay
the foundation for a larger part of cash-flow-generated financing of the future
dividends of the Ratos share. The investment interval for new investments has
been updated and the central management costs have been reduced through internal
efficiency measures. Ratos has chosen six sectors to focus its acquisition and
company development efforts on going forward.
Ratos's CEO Magnus Agervald comments:
"Ratos will continue to operate under the same business concept, but with
increased focus on acquisition and company development efforts within six
sectors. We regard Ratos as having a unique position in the market, with our
flexible investment horizon, strong brand and history, and a transparent and
value-driven culture. We also have broad expertise, a large network and
extensive experience in operational development," says Ratos's CEO Magnus
Agervald.
"To gain greater flexibility to make new acquisitions, we are changing our
lowest investment interval and lowering the upper interval to create a better
spread of risk in the portfolio. We are working closely with our portfolio
companies to take measures more quickly, but also to continue investing in and
focusing on improvement programmes in the companies that we regard as having
continued potential. Through higher levels of earning in our portfolio companies
and through ownership of certain companies over a longer time, our long-term
ambition is to be able to finance a larger portion of the Ratos share dividends
through cash flow from the portfolio companies."
"In addition to these initiatives, we have been working for some time to improve
our internal processes and operations, which has enabled a reduction in our
central costs. Ratos has progressed from operational management costs of SEK
261m for 2016 to the current SEK 150m on a prospective annual basis."
Changed investment criteria
To create greater flexibility to make new acquisitions, the former lowest
investment interval of SEK 250m in equity has been removed. The goal for new
acquisitions is instead that the company in question must have the potential to
reach SEK 0.5 billion in equity in the next five years. The upper investment
interval has been lowered from SEK 5 billion in equity to SEK 2 billion in
equity to create a better balance and risk spread in the portfolio.
Long-term ownership provides the opportunity to finance the Ratos share dividend
Ratos's potential for long-term ownership is a strength in many investments,
particularly partnerships in which we develop companies in cooperation with the
former owners. Owning and developing profitable companies over a long period of
time provides the possibility of receiving continuous cash flow from these
portfolio companies. In the future, it should be possible to partly finance the
dividend of Ratos's common share using the current cash flow from the portfolio
companies. Ratos will thus own certain companies for a longer time and work to
reduce the debt level in the companies to enable dividends from these.
Focus on more rapid change
We are increasing our impatience of companies that do not deliver the desired
results by taking measures more quickly, and continuing to invest in and focus
on improvement programmes in the companies that we regard as having continued
favourable potential.
To build internal structural capital and competence more effectively, Ratos has
changed its working methods and the investment organisation is now structured in
six sectors; Business Services, Construction, Consumer/Retail/Leisure,
Healthcare/Lifescience, Industrials and TMT (Technology, Media, Telecom). Ratos
has also launched a number of operational focus areas to effectively support the
development of the companies. Such examples are Purchasing, Digitalisation and
Sustainability.
Ratos's central costs
In the past year, Ratos's central organisation has undergone efficiency
enhancements, which has led to a smaller organisation and, accordingly, reduced
central operational management costs. Ratos's operational management costs are
expected to be approximately SEK 150m on an annual basis in the future (compared
with SEK 261m for 2016) excluding transaction and financing costs.
The presentations at today's capital markets day are available at www.ratos.se
For further information, please contact:
Magnus Agervald, CEO Ratos, +46 8 700 17 00
Helene Gustafsson, Head of IR & Press, +46 8 700 17 98
Financial calendar from Ratos:
Interim report January-June 2017 17 August 2017
Interim report January-September 2017 14 November 2017
Ratos is an investment company that owns and develops unlisted medium-sized
companies in the Nordic countries. Our goal as an active owner is to contribute
to long-term and sustainable business development in the companies we invest in
and to make value-generating transactions. Ratos's portfolio consists of 17
medium-sized Nordic companies and the largest segments in terms of sales are
Construction, Industrials and Consumer goods/Commerce. Ratos is listed on Nasdaq
Stockholm and has a total of approximately 14,200 employees.
Press release:
http://hugin.info/1180/R/2112392/803428.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Ratos via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 12.06.2017 - 08:30 Uhr
Sprache: Deutsch
News-ID 547335
Anzahl Zeichen: 6431
contact information:
Town:
Stockholm
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 192 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Ratos AB: Ratos presents updated strategic agenda"
steht unter der journalistisch-redaktionellen Verantwortung von
Ratos (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
