Investor Ab Class A · OMXSTO:INVE_A
Investor Ab Class A — FY2022 Earnings Presentation
42 slides from Investor Ab Class A's earnings presentation, January 2023
Slide 1: Year-End Report 2022
Year-End Report 2022 Johan Forssell, CEO 1 Helena Saxon, CFO
Slide 2: A challenging year for the global economy
2022 A challenging year for the global economy Resilient performance by Investor 2
Slide 3: Investor 2022 in summary
Investor 2022 in summary Adjusted net asset value growth and total shareholder return outperformed SIXRX return index Overall good operational performance Strong cash flow generation Our financial position strengthened further SEK 4.40 per share dividend proposed, an increase of 10 percent 3
Slide 4: 2022 adjusted NAV growth and total shareholder return
% 0 -5 -10 -15 -20 -25 Adjusted NAV * TSR SIXRX 2022 -10% Adj. Net Asset Value growth* -15% Total Shareholder Return (-23% SIXRX) 4 *Dividend added back
Slide 5: 2022 and Q4 2022 NAV growth and TSR
% % 0 18 16 -5 14 12 -10 10 8 -15 6 -20 4 2 -25 0 Adjusted NAV * TSR SIXRX Adjusted NAV * TSR SIXRX 2022 Q4 2022 -10% Adj. Net Asset Value growth* -15% Total Shareholder Return 7% Adj. Net Asset Value growth* 16% Total Shareholder Return (-23% SIXRX) (11% SIXRX) 5 *Dividend added back
Slide 6: Listed Companies – Focus on Strategic Initiatives
Listed Companies – Focus on Strategic Initiatives 2022 Q4 2022 Total return -5% Total return 12% SIXRX return index -23% SIXRX return index 11% Managing Initiatives to Portfolio R&D Complementary volatile market improve climate management initiatives acquisitions environment footprint 70% of total a
Slide 7: Patricia Industries – Good Operating Performance
Patricia Industries – Good Operating Performance 2022 Q4 2022 Total return -2% Total return -4% Organic sales growth 9% (constant currency) Organic sales growth 11% (constant currency) Adjusted EBITA growth 20% Adjusted EBITA growth 34% Managing Initiatives to Strategic Add-on volatile market improv
Slide 8: Patricia Industries – Estimated Market Values
Patricia Industries – Estimated Market Values 1. Based on multiples, typically EV/12-month trailing operating profit (EBITDA) 2. Multiples compiled by third party, based on relevant listed peers and indices • ((Quarterly VWAP of peers’ market cap) + closing net debt)/12m rolling EBITDA • Multiple ba
Slide 9: Patricia Industries – Valuation
Patricia Industries – Valuation Base 100 (June 30) SIXRX return index 115 110 December 31, 105 2022 100 September 30, 2022 95 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 9
Slide 10: Patricia Industries – Record LTM Profit in Q4 2022
Patricia Industries – Record LTM Profit in Q4 2022 SEK m 4 000 14 000 3 500 12 000 3 000 10 000 2 500 8 000 2 000 6 000 1 500 4 000 1 000 500 2 000 0 0 Q3 21 Q3 22 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 2
Slide 11: Operating Performance
Operating Performance Value, Organic growth Margins, % Change vs. SEK bn Q4 2022 % Q4 2022 Q4 2021 EBITDA 9.9 2.7 5.2 25 EBITA 7.7 3.1 EBITDA 25.1 7.9 11.7 17 EBITA 21.7 8.4 EBITDA 22.2 -2.9 58.9 9 EBITA 18.7 -2.5 EBITDA 32.7 6.3 16.0 9 EBITA 30.6 6.4 EBITDA 42.8 -8.6 2.8 9 EBITA 37.0 -8.0 EBITDA 18
Slide 12: Mölnlycke Q4 2022 operating performance
Antiseptics 3% Gloves 14% Q4 2022 Wound Share of sales, Operating • Reported sales grew by 13 percent, of which 9 percent last 12 months Care 58% (Dec. 31, 2022) Room organically in constant currency Solutions 25% • Wound Care +9 percent organically • Gloves +23 percent organically • ORS +4 percent
Slide 13: Patricia Industries – Industry Leaders with Attractive Exposure
Patricia Industries – Industry Leaders with Attractive Exposure SEK ~54.3bn* revenue SEK ~12.3bn* EBITDA >50% ROCE** The graph presents adjusted market values as of Dec. 31, 2022 Financial Investments *Subsidiaries and 40 percent of Three Scandinavia 13 **Based on 2022 reported figures for all major
Slide 14: Investments in EQT – A Record Year for Cash Flow
Investments in EQT – A Record Year for Cash Flow 2022: -35% total return - EQT AB -55% total return SEK 2.7bn average net cash flow to Investor - EQT funds 21% reported value growth 7 000 6 000 - SEK 6.2bn net cash flow to Investor 5 000 4 000 3 000 Q4 2022: 2% total return 2 000 1 000 - EQT AB 1% t
Slide 15: Prepared for both challenges and opportunities
Prepared for both challenges and opportunities Companies with leading market positions in attractive segments with secular growth, good profitability and strong cash flow generation Investor has a proven ownership model, a strong financial position and a clear strategic direction 15
Slide 16: Priorities 2023
Priorities 2023 Manage the current market environment Continue to future-proof our companies to drive sustainable profit growth Use financial strength to capture investment opportunities 16
Slide 17: Year-End Report 2022
Year-End Report 2022 Helena Saxon, CFO 17
Slide 18: Adjusted Net Asset Value
Adjusted Net Asset Value 14% Avg. annual 673 growth, SEK bn, with dividend adjusted added back, net asset value 5 years Dec. 31, 2022 900 (SIXRX 10%) 800 700 600 500 400 300 200 100 0 2017 2018 2019 2020 2021 2022 -100 Listed companies Patricia Industries Investments in EQT Other assets & liabilitie
Slide 19: Total Return by Business Area
Total Return by Business Area Q4 2022 2022 % % 0 14 12 -2 12 -5 -5 10 -10 -10 8 7 -15 6 -20 4 2 2 -25 0 -30 -2 -35 -4 -35 -4 -40 -6 Listed Patricia Investments in Total Listed Patricia Investments in Total Companies Industries EQT Companies Industries EQT Share of total adjusted assets 70% 20% 10% 1
Slide 20: Listed Companies
Listed Companies SEK 475 market value bn 70% of total adjusted assets
Slide 21: Listed Companies – contribution to NAV and total return
21 2022 SEK m 5 000 10 000 15 000 20 000 25 000 -30 000 -25 000 -20 000 -15 000 -10 000 -5 000 0 AstraZeneca Saab Sobi Accelleron Nasdaq Listed Companies SEB Electrolux Pro Electrolux Wärtsilä ABB Husqvarna Epiroc Contribution to NAV Ericsson Atlas Copco % 0 20 40 60 80 100 -60 -40 -20 Saab AstraZen
Slide 22: Patricia Industries
Patricia Industries SEK 138 bn adjusted market value 20% of total adjusted assets
Slide 23: Patricia Industries – Change in Estimated Market Values
Patricia Industries – Change in Estimated Market Values SEK m Estimated market value change Distributions/proceeds 443 237 234 13 2 570 (146) (590) 156 171 (1 288) (1 559) (1 574) 4 328 150 317 (8 523) Total NAV Permobil BraunAbility Piab Sarnova Vectura Atlas Financial Laborie Advanced Three Mölnly
Slide 24: Major Drivers of Estimated Market Values Q4
Major Drivers of Estimated Market Values Q4 Est. market value change Q4 2022 vs. Q3 2022 SEK bn Major Drivers Lower multiples impacted negatively, SEK 3.2bn distribution to Patricia -8.5 Industries Lower multiples impacted negatively, SEK 1.1bn distribution of -1.6 proceeds from divestment of passiv
Slide 25: Financial position
Financial position
Slide 26: Leverage in the Lower End of the Range, December 31, 2022
Leverage in the Lower End of the Range, December 31, 2022 AA-/Aa3 Ratings S&P/ Moody’s % 20 15 10 5 0 2018 2019 2020 2021 2022 -5 Leverage target range Leverage 26
Slide 27: Strong Balance Sheet - No Maturities until 2029
Strong Balance Sheet - No Maturities until 2029 11.8 years SEK m Average maturity 7 000 6 000 5 000 4 000 3 000 2 000 1 000 0 2031 2023 2024 2025 2026 2027 2028 2029 2030 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 27
Slide 28: Maintain Financial Flexibility – Sources and Uses
Maintain Financial Flexibility 2015-2022 Sources Uses Net debt Investments reduction Listed in EQT Net other Companies SEK Dividend SEK ~145bn paid ~145bn Patricia Industries Patricia Listed Industries Companies Net debt SEK 10bn lower, leverage down from ~7 percent to 1.5 percent 28
Slide 29: Pay a Steadily Rising Dividend
Pay a Steadily Rising Dividend +10% DPS SEK 5 4 3 2 1 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022p 29
Slide 30: Average Annual Total Shareholder Return (December 31, 2022)
Average Annual Total Shareholder Return (December 31, 2022) Average Annual Total Shareholder Return, December 31, 2022 % 25 20 15 10 5 0 -5 -10 -15 -20 -25 1 year 5 years 10 years 20 years Investor B SIXRX Return requirement 30 30
Slide 31: Financial Calendar
Financial Calendar Viveka Hirdman-Ryrberg 2023-04-21 Head of Corporate Communication & Interim Management Statement Sustainability January-March 2023 +46 70 550 3500 2023-05-03 Viveka.hirdman-ryrberg@investorab.com Annual General Meeting 2023-07-17 Interim Report January-June 2023 2023-10-19 Magnus
Slide 32: Appendix
Appendix investor
Slide 33: Activities during the quarter – Mölnlycke
Activities during the quarter Group • Reported sales grew by 13 percent, of which 9 percent organically in constant currency, mainly driven by Wound Care and Gloves. • The EBITA margin was negatively impacted during the quarter by a reorganization of the structure of Customer Care, and production di
Slide 34: Activities during the quarter – Laborie
Negative impact from transaction and integration costs related to Clinical Innovations Negative impact from transaction and integration costs related to Cogentix Negative impact from transaction costs related to Pelvalon and OptilumeTM Activities during the quarter ● Organic sales growth amounted to
Slide 35: Activities during the quarter – Sarnova
Negative impact from transaction costs related Activities during the quarter to Digitech acquisition ● Organic sales grew by 6 percent in constant currency, driven by the Acute USD m and Cardiac Response business units. The Acute business benefitted % from a normalized flu season and the Cardiac Res
Slide 36: Activities during the quarter – Permobil
Activities during the quarter ● Organic sales growth amounted to 17 percent in constant currency, supported by all regions. SEK m % 1 800 30 ● Last year’s EBITA margin was negatively impacted by a strategic 1 600 development project. Adjusting for this, the margin still increased 25 significantly, p
Slide 37: Activities during the quarter – Advanced Instruments
Negative impact from costs related to Activities during the quarter Artel acquisition ● Organic sales growth declined by 5 percent in constant currency, Negative impact negatively impacted by weak instrument sales to biopharmaceutical USD m from costs related to Solentim acquisition % customers and
Slide 38: Activities during the quarter – Piab
Negative Activities during the quarter Negative impact impact from from costs costs related related to to TAWI TAWI acquisition acquisition Negative impact Negative impact ● Organic sales growth amounted to 7 percent in constant currency, driven from from write-down write-down and and by all regions
Slide 39: Activities during the quarter – BraunAbility
Activities during the quarter ● Organic sales growth amounted to 25 percent in constant currency, driven by strong pent-up demand in the commercial WAVs (Wheelchair SEK m % Accessible Vehicle) and lifts segments as supply chain constraints eased. 300 12 The Q’Straint securement products also showed
Slide 40: Activities during the quarter – Vectura
Grand Hôtel property divested, last quarter with Activities during the quarter revenues from Grand Hôtel ● Total sales growth amounted to 9 percent, driven by new Community Services properties. SEK m % 100 80 ● The EBITDA margin declined, as growth was somewhat counteracted by 90 higher costs due to
Slide 41: Activities during the quarter – Atlas Antibodies
Activities during the quarter ● Organic sales growth amounted to 9 percent in constant currency, driven by the evitria business. SEK m % ● The EBITA margin decreased compared to last year, impacted by 120 60 investments to build the commercial organization. 100 50 ● Atlas Antibodies announced that i
Slide 42: Activities during the quarter – Three Scandinavia
Negative impact from VAT rulings Activities during the quarter % SEK m ● The subscription base increased by 62,000, of which 53,000 in Sweden 3 500 80 and 9,000 in Denmark. 3 000 60 ● Service revenue increased by 10 percent and EBITDA by 5 percent, negatively impacted by higher energy expenses. 2 50