Interim report for January-June 2021: Continued strong performance and value creation

This press release is a summary of Rettig Group’s Interim Report for the period from 1 January to 30 June 2021. Unless otherwise stated, the figures refer to 1 January to 30 June 2021 and the corresponding period last year. All figures are unaudited and according to International Financial Reporting Standards (IFRS). The complete report is available on www.rettig.fi.

Financial highlights

1) 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 -1.5 million in Q2/2020, EUR 1.1 million in 1-6/2020 and EUR 3.7 million in 2020. 2) Including adjustments as defined in Rettig Group’s senior loan terms and conditions. 3) Including divestment of Alandia shares in June 2021.

Key events of the reporting period

Rettig Group continued its strong performance during the first half of 2021. Consolidated turnover increased by 23 per cent year-on-year, and consolidated EBITDA increased by 22 per cent year-on-year, supported by the strong turnover development and good operating cost control in both Purmo Group and Nordkalk. Like-for-like consolidated EBITDA increased by 36 per cent.

Terveystalo performed well during the first half of 2021 and eQ continued its excellent growth track record.

During the reporting period Rettig Group completed the divestment of its entire 24.9 per cent stake in the marine and yacht insurance company Alandia.

In March Topi Jokiranta was appointed Rettig Group’s CFO and member of Rettig Group’s management team. John Lindström, Director in Rettig Group’s Investment team, was appointed member of the Rettig Group’s management team in May.

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 the remainder of the year 2021.

Key events after the reporting period

On 15 July, Rettig Group announced the divestment of Nordkalk for an enterprise value of EUR 500 million, and a EUR 50 million re-investment into SigmaRoc Plc., the buyer of Nordkalk. Subject to closing of the Nordkalk disposal, Rettig Group intends to repay all outstanding bilateral loans and cancel existing committed revolving credit facilities, which will be replaced with a new committed revolving credit facility post closing of the transaction. Completion of the transaction is expected to occur on 31 August 2021.

Further information

Matts Rosenberg, CEO, Rettig Group: Tel.: +358 40 7455276; 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 eQ, Nordkalk, Purmo Group, and Terveystalo. We are also increasingly active in financial investments, including private equity fund- and co-investments. www.rettig.fi