Interim Management Statement: January-March 2021

Strong performance in the first three months of 2021. Consolidated turnover increased by 9 per cent year-on-year driven by robust demand. Consolidated EBITDA increased by 10 per cent year-on-year supported by the strong turnover development and cost control. Although the impact of the COVID-19 pandemic on Rettig Group continued to ease across key markets, uncertain market conditions prevail and the outlook for 2021 remains unchanged.

1)The definition of EBITDA has been changed as of 2020 in terms of certain other operating expenses that are of exceptional nature and therefore booked in the income statement below EBITDA. The impact of this change was EUR 0.3 million in Q1/2020 and EUR 5.5 million in 2020.

2)The definition of EBIT has been changed as of 2021 in terms of the gain or loss from financial investments which has been moved to EBIT from financial items. The impact of this change has been restated in the 2020 numbers and was EUR 2.6 million in Q1/2020 and EUR 3.7 million in 2020.

3)Including adjustments as defined in Rettig Group’s senior loan terms and conditions.

Financial highlights

  • Rettig Group’s turnover improved in January-March 2021 thanks to robust demand in both Purmo Group and Nordkalk
  • EBITDA of Rettig Group improved in January-March by 10 per cent year-on-year to EUR 44 million (1-3/2020: 40), of which Purmo Group’s EBITDA was EUR 29 million (20) and Nordkalk’s EBITDA was EUR 16 million (22*))
  • The strong financial performance was supported by the strong turnover growth and cost control in both Purmo Group and Nordkalk
  • Rettig Group’s EBIT also increased significantly as a result of the strong performance of the financial investments portfolio
  • Free cash flow in the first quarter of 2021 was somewhat weaker compared to the same period in the previous year, most notably due to higher net working capital
  • Net debt and net debt / EBITDA (including adjustments defined in Rettig Group’s senior loan terms and conditions) at the end of Q1 2021 were significantly lower compared to Q1 2020.

 *)Q1/2020 includes the sale of Nordkalk’s excess CO2 emission rights (EBITDA impact: EUR 7.6 million).

Outlook for 2021

The economic recovery in 2021 is dependent on the success of the measures to contain the COVID-19 virus. Pent-up demand and expansionary monetary and fiscal policies are expected to support the recovery. Performance improvement in the portfolio companies continues to be the main objective for Rettig Group in 2021.

Events after the reporting period

Rettig Group announced the divestment of its 24.9 per cent stake in Alandia on 1 April 2021 to UBV Alandia Holding, a company owned by a consortium of investors including Bank of Åland, Veritas Pension Insurance, Viking Line, Lundquist Shipping Company Limited, Wiklöf Holding, and the association Föreningen Konstsamfundet. Completion of the transaction is subject to regulatory approval from the Finnish Financial Supervisory Authority.

Financial calendar 2021

Rettig Group will publish its January-June interim report on 20 August 2021 and January-September Interim Management Statement on 1 November 2021.

Further information:

Matts Rosenberg, CEO, Rettig Group: Tel. +358 40 745 5276; email: rettiggroup@rettig.fi

Rettig Group is a leading Finnish family-owned investment company that creates value for generations through active and responsible ownership. Our core investments are Alandia, eQ, Nordkalk, Purmo Group, and Terveystalo. We are also increasingly active in financial investments, including private equity fund- and co-investments.

This is a summary of Rettig Group’s Interim Management Statement for the period from 1 January to 31 March 2021. Unless otherwise stated, the figures refer to 1 January to 31 March 2021 and the corresponding period last year. All figures are unaudited and according to International Financial Reporting Standards (IFRS). The complete Interim Management Statement is available on https://www.rettig.fi/en/reports-and-presentations/