Arne Karlsson, CEO Ratos

1. Listed Private Equity
Arne Karlsson
www.ratos.se NIR 17 June 2010
1

2. Definition of Investor Relations
Investor relations i a strategic management
I t l ti is t t i t
responsibility that integrates finance, communication,
marketing and securities law compliance to enable the
most effective two-way communication between a
company,
company the financial community, and other
community
constituencies, which ultimately contributes to a
company s
company's securities achieving fair valuation.
(Adopted by the NIRI Board of Directors, March 2003)
2

3. Strategic shift
Listed → Unlisted √
Asset management → Holdings √
2-4 years √
Retained profitability √
Successive revaluation
S i l ti √
Tailored organisation √
Own deal flow √
Transparency √
3

4. Process of change (1)
Unlisted 10%
Unlisted
92%
Listed
90%
Listed 8%
January 1999 June 2001
4

5. Process of change (2)
Holdings Holdings
44% 100%
Asset
management
56%
January 1999 June 2001
5

6. Risk of drowning on the way?
Highly
Hi hl negative market and media i
ti k t d di image
- wrong strategy
- no transparency
- incompetent management
- owner with focus other than profitability
hf h h f bl
- and so on
Facts?
- totally wrong!
- but…
6

7. Get a grip Ratos!
The market rejects
Ratos Ratos must make
a commitment
7

8. Risk of drowning on the way?
Highly
Hi hl negative market and media i
ti k t d di image
- wrong strategy
- no transparency
- incompetent management
- owner with focus other than profitability
hf h h f bl
- and so on
Facts?
- totally wrong!
- but…
Risk: no opportunity to complete
pp y p
8

9. Info/IR
Strategically
St t i ll central part of problem management
t l t f bl t
- Info/IR first new recruitment!
- straight into group management
Enormous exchange/-d impact
- never experienced such strategically central info effort
- shift knowledge and perception
- recreate confidence
- rebuild brand (sauna effect!)
But
- multi-year project!
y p j
9

10. Why is Info/IR important? (1)
Creates
C t accurate image of company/organisation
t i f / i ti
Transparency
Credibility
Building the brand
g
Coherent internal and external image
Corporate culture
Recruitment
Feeler (critical examination)
Etc.
10

11. Why is Info/IR important? (2)
But:
B t you cannot inform yourself to success!!
ti f lf t !!
- reality and profitability always control over time…
- …and d not always catch up
d do l h
- IR function must not live its own life
Business support
- tools/means
- strategically central!
Info/IR < deals
- form vs. content
11

12. Info/IR vs. CEO (1)
For this teamwork to function
- Info/IR must have near and close access to CEO…
- …and vice versa
d i
- close cooperation with other central functions is also
necessary
Creates Info/IR unit that is …
- in th k
i the know
- informed
…and can manage Issue Management/Early Warning
d I M /E l W i
- interface, several units
- catalyst!
12

13. Info/IR vs. CEO (2)
Tube Mac
T b M
- background
- tried to make use of Swedish media
13

14. Big blow
g
threatens
Ratos
Ratos sued
for SEK 700m
DI 070813 14

15. Info/IR vs CEO (2)
Tube Mac
T b M
- background
- tried to make use of Swedish media
i d k f S di h di
- effect the same day: Ratos share price rose…
Keys
- knowledge/facts
- preparations (IM)
- confidence (long time to build…)
Info/IR integrated part of Ratos’s everyday life
- Group management, Q g p, Kick-offs, etc.
p g , group,
15

16. Good adviser to CEO?
Group management
G t
Management – does not “monitor” info interests!
Overall view
Must not be too much of a gate keeper
g p
Most successful when not noticed (outwards)!
Long-term
Long term agenda setter not “media adaptable
setter, media adaptable”
16

17. Strategic unit
Business plan
B i l
- regard as an operating business area
17