Investor Ab Class A · OMXSTO:INVE_A
Investor Ab Class A — Q4 2023 Earnings Presentation
33 slides from Investor Ab Class A's earnings presentation, Jan 19, 2024
Slide 1: Year-end report 2023
Year-end report 2023 January 19, 2024 1
Slide 2: Johan Forssell, President and CEO
Johan Forssell President and CEO 2
Slide 3: 2023 in summary
2023 in summary • Our adjusted net asset value reached a new all-time-high, passing the SEK 800bn mark for the first time • Total shareholder return of 26% compared to 19% for SIXRX return index - beating the stock market for the 13th consecutive year • Listed Companies outperformed the Swedish stoc
Slide 4: Performance
Performance 2023 Q4 2023 26% 24% 14% 12% 19% 8% Adj. NAV TSR SIXRX Adj. NAV TSR SIXRX 4
Slide 5: Business areas
Business areas December 31, 2023 Total adjusted assets SEK 832bn Adjusted net asset value SEK 818bn Listed Companies Patricia Industries Investments in EQT SEK 576bn SEK 174bn SEK 82bn 69% of total assets 21% of total assets 10% of total assets 5
Slide 6: Listed Companies
Listed Companies SEK 576bn 69% of total assets 6
Slide 7: Performance
Performance 2023 Q4 2023 25% 19% 14% 9% TSR SIXRX TSR SIXRX 7
Slide 8: Highlights during the quarter
Highlights during the quarter • Epiroc announced the acquisition of Stanley Infrastructure • Electrolux Professional announced the acquisition of Tosei • Ericsson entered a strategic 5G-contract with AT&T • In January 2024, Vagner Rego was appointed new CEO of Atlas Copco 8
Slide 9: Patricia Industries
Patricia Industries SEK 174bn 21% of total assets 9
Slide 10: Performance – total return (excl. cash)
Performance – total return (excl. cash) Q4 2023 2023 24% Earnings and cash flow +6% Currency -4% Multiples -2-3% -1% 10
Slide 11: Valuation methodology for estimated market values
Peer groups show Valuation methodology for estimated market values similar pattern but with somewhat lower volatility 110 +14% 105 100 95 90 85 80 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 SIXRX Avg Q3 Avg Q4 11
Slide 12: Operating performance – Major subsidiaries
Operating performance – Major subsidiaries Q4 2023 2023 26% 22% 16% 11% 8% 9% Reported Organic Adjusted Reported Organic Adjusted sales growth sales growth EBITA growth sales growth sales growth EBITA growth Laborie completed the strategic acquisition of Urotronic Mölnlycke distributed EUR 300m to P
Slide 13: EBITDA
LTM sales: EBITDA SEK 62.6bn EBITDA: SEK 15.2bn SEK m 4 500 16 000 4 000 14 000 3 500 12 000 3 000 10 000 2 500 8 000 2 000 6 000 1 500 1 000 4 000 500 2 000 0 0 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20
Slide 14: Operating performance
Operating performance Value, Organic growth, % Margins, % Change vs. SEK bn Q4 2023 Q4 2023 Q4 2022 EBITDA 9.7 -0.2 8.6 16 EBITA 7.8 0.1 EBITDA 44.9 12.8 Adj. EBITDA Δ +8.2 9.8 14 EBITA 42.8 12.2 Adj. EBITA Δ +7.7 EBITDA 27.7 5.5 77.7 9 EBITA 24.4 5.7 EBITDA 24.1 5.7 10.5 8 EBITA 19.9 5.2 EBITDA 23.
Slide 15: Mölnlycke performance
Mölnlycke performance Group • Organic sales growth amounted to 9 percent in constant currency, driven primarily by Wound Care and ORS. Antiseptics 3% Gloves • The EBITA margin increased significantly compared to last year, which was 12% impacted by production disturbances and restructuring of the Cu
Slide 16: Investments in EQT
Investments in EQT SEK 82bn 10% of total assets 16
Slide 17: Performance
Performance Q4 2023 SEK m Net Cash Flow to Investor Total return 16% 7 000 - EQT AB 31% 6 000 - EQT Funds –2% 5 000 4 000 Net cash flow to Investor SEK 1.2bn 3 000 2 000 1 000 2023 0 Total return 17% -1 000 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 - EQT AB 30% - EQT Funds 1% Net cash flow t
Slide 18: Priorities 2024
Priorities 2024 Navigate the current market environment Continue to future-proof our companies to drive sustainable profit growth Use financial strength to capture investment opportunities 18
Slide 19: Driving Value Creation
Driving Value Creation Proven business model and clear strategic direction Portfolio of industry leaders with strong profitability and high exposure to secular growth Strong balance sheet and cash flow generation 19
Slide 20: Helena Saxon, CFO
investor Helena Saxon CFO
Slide 21: Grow net asset value
19% annual growth, SEK 818bn, Grow net asset value with dividend added adjusted net asset back, 5 years value, December 31, SEK bn (SIXRX 15%) 2023 900 800 700 600 500 400 300 200 100 0 2017 2018 2019 2020 2021 2022 2023 -100 Listed companies Patricia Industries Investments in EQT Other assets & lia
Slide 22: Total return by business area
Total return by business area Q4 2023 2023 25% 24% 24% 16% 17% 9% 8% -1% Listed Patricia Investments in Total Listed Patricia Investments in Total Companies Industries EQT Companies Industries EQT 22
Slide 23: Listed companies – Total shareholder return and NAV contribution, 2023
Listed companies – Total shareholder return and NAV contribution, 2023 SEK m % 50 000 80 40 000 60 30 000 40 20 000 20 10 000 0 0 -20 -10 000 -40 23
Slide 24: Major drivers of estimated market values Q4
Major drivers of estimated market values Q4 Currency & EBITDA & multiple 185 011 cash flow contraction 183 574 Q3 2023 Q4 2023 24
Slide 25: Patricia Industries – change in estimated market values
Patricia Industries – change in estimated market values 963 3 896 -9 -390 -392 -472 -488 -762 185 011 -1 223 Distribution to Patricia Industries 1 214 183 574 Patricia -1 805 of SEK 643m Industries Distribution to Patricia Industries injection of -1 969 Patricia injection of SEK SEK 2,513m Industrie
Slide 26: Ensuring financial strength and investment capacity
Financial development Ensuring financial strength and investment capacity 26
Slide 27: Leverage in the lower end of the range
Leverage in the lower end of the range AA-/Aa3 ratings S&P/Moody’s % 20 15 10 5 0 2019 2020 2021 2022 2023 -5 Leverage target range Leverage 27
Slide 28: Strong cash flow generation
Strong cash flow generation 2015-2023 Net debt Investments in Other, net reduction Listed EQT Companies SEK SEK 165bn 165bn Sources Uses Patricia Patricia Industries Dividend Industries paid Listed Companies Leverage down from ~7% in 2015 to ~2% in 2023 28
Slide 29: Pay a steadily rising dividend
Pay a steadily rising dividend Dividend per share, SEK 9% average annual growth 6 5 4 3 2 1 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023p 29
Slide 30: Average annual total return, December 31, 2023
Average annual total return, December 31, 2023 % 30 25 20 15 10 5 0 1 year 5 years 10 years 20 years Investor B SIXRX Return requirement 30
Slide 31: Our Purpose
We create value for people Our Purpose and society by building strong and sustainable businesses 31
Slide 32: Financial calendar
Financial calendar April 18, 2024 Interim Management Statement January-March 2024 May 7, 2024 Annual General Meeting Jacob Lund July 17, 2024 Chief Communications & Sustainability Officer +46 725 60 21 57 Interim Report Jacob.lund@investorab.com January-June 2024 October 17, 2024 Interim Management
Slide 33: investor
investor