Investor AB Class A · OMXSTO:INVE_A
Investor AB Class A — Q3 2021 Earnings Presentation
31 slides from Investor AB Class A's earnings presentation, October 2021
Slide 1: Interim Management Statement Q3 2021
Interim Management Statement Q3 2021 Johan Forssell CEO Helena Saxon CFO
Slide 2: Investor
investor
Slide 3: Adj. Net Asset Value growth and Total Shareholder Return
4% Adj. Net Asset Value growth, -4% Total Shareholder Return, 1% Total Shareholder Return, Investor AB Investor AB SIXRX 3
Slide 4: Listed Companies
3% ABB Electrolux Electrolux Sobi Total return Further New dividend policy Professional Pending bid, valuing (SIXRX 1 percent) concentration of and extra capital Strategic acquisition of our ownership stake at product portfolio distribution Unified Brands, SEK 25.3bn strengthening US presence (annou
Slide 5: Major subsidiaries
Major subsidiaries -2% Strategic add-on -1% -9% Organic sales growth adjusted EBITA growth acquisitions Total return Advanced Instruments (excl.cash) Sarnova Atlas Antibodies Major subsidiaries excl. Mölnlycke SEK 5.3bn equity 15% 24% investment from Organic sales growth adjusted EBITA growth Patric
Slide 6: Q3 2021 Group
Sales, EURm Q3 2021 Group • Organic sales growth -16 percent in constant currency, explained by a strong contribution of covid-19 related sales of Q3 19 Q3 20 Q3 21 PPE in Q3 2020, no contribution this quarter Wound Care Surgical EUR m. % • Despite positive mix, EBITA margin decline mainly explained
Slide 7: Organic growth Q3 and margins
Organic growth Margins, % Change vs. Q3, % Q3 2021 Q3 2020 EBITDA 52.6 -0.2 39 EBITA 50.1 +4.1 EBITDA 29.6 +0.5 26 EBITA 25.9 +2.5 EBITDA 45.7* -3.1 26 EBITA 44.3* -2.7 EBITDA 9.0 -2.2 17 EBITA 6.6 -2.2 EBITDA 16.5* +2.2 14 EBITA 15.2* +2.1 EBITDA 20.1 -3.3 11 EBITA 16.0 -2.7 EBITDA 27.7 -0.7 6 EBIT
Slide 8: Investments in EQT
16% 17% 0.3 High activity Total Return, Total Return, Net cash flow to Significant Investments in EQT AB Investor, SEK bn investments and EQT exits in EQT funds 15% Reported value growth, EQT funds Investments in EQT 13% of total adjusted assets SEK 91bn 8
Slide 9: Going forward
Going forward 9
Slide 10: We create value for people and society by building strong and sustainable businesses
We create value for people and society by building strong and sustainable businesses Generate an attractive Ultimate total return Target Grow net Pay a steadily Deliver on our asset value rising dividend ESG targets Strategic Priorities Engaged Ensure an Operate Maintain Ownership Attractive Efficie
Slide 11: Sharpened Climate Targets
Sharpened Climate Targets Targets 2030 Encourage portfolio companies to Investor: Net Zero Align with Paris Agreement Portfolio: -70% CO2e (vs 2016) Commit to Science Based Targets when relevant Report Value chain ambition: Net Zero 2050 in accordance with TCFD Committed to 1.5o C 11
Slide 12: Well positioned to continue delivering attractive long-term total returns
Well positioned to continue delivering attractive long-term total returns Proven Strong Great governance cash flow companies model generation 12
Slide 13: Interim Management Statement Q3 2021
Interim Management Statement Q3 2021 Helena Saxon CFO
Slide 14: Net Asset Value Development
Net Asset Value Development SEK bn 700 682 Adjusted NAV 650 600 601 Reported NAV 550 500 450 400 350 300 250 200 150 100 50 0 11 12 13 14 15 16 17 18 19 20 21 14
Slide 15: Listed Companies Q3 2021
Listed Companies Q3 2021 SEK bn TSR, % • Q3 2021: TSR 3%, SIXRX 1% 9 60 • YTD 2021: TSR 29%, SIXRX 24% 8 51 50 7 6 Husqvarna Saab 5 12 14 20 Electrolux Elux Pro 10 4 4 10 Wärtsilä 2% 1% Atlas Copco 1 1 Sobi 2% 3 5% 24% 3 -7 -7 0 2% 2 -8 Ericsson 2% -13 5% 1 -16 -10 0 -20 Nasdaq 7% -1 465bn -30 -2 8%
Slide 16: Patricia Industries
Patricia Industries -2% Total return (excl. cash) Q3 2021 16
Slide 17: Patricia Industries – Change in Estimated Market Values
Patricia Industries – Change in Estimated Market Values Q3 2021 Summary Estimated market value change Distributions/proceeds 664 353 1 481 (11) (163) (297) 1 902 (460) 2 962 Acquired 3 154 Solentim (5 246) 161 746 Acquired evitria 158 651 Acquired (7 434) Allied100 Total NAV Sarnova Atlas Laborie Ad
Slide 18: Major Drivers of Estimated Market Values Q3 2021
Major Drivers of Estimated Market Values Q3 2021 Est. market value change Major Drivers Q3 2021 vs. Q2 2021 SEK -7.4bn Lower multiples, lower earnings, partly mitigated by cash flow SEK 1.9bn Higher earnings, higher multiples and positive currency effect SEK 0.7bn Higher earnings 18
Slide 19: Financial Position, September 30, 2021
Financial Position, September 30, 2021 Ratings 10.0y Average AA-/Aa3 maturity of % S&P/ debt 20 Moody’s portfolio 15 10 5 0 2017 2018 2019 2020 2021 -5 Leverage target range Leverage 19
Slide 20: Leverage Policy and Dividend Policy
Leverage Policy Target leverage range 0-10% (net debt / total adjusted assets) over a business cycle Previous policy: Target leverage range 5-10% (net debt / total reported assets) over a business cycle Dividend Policy Our goal is to pay a steadily rising dividend. Our dividend is supported by cash
Slide 21: Average Annual Total Shareholder Return
Average Annual Total Shareholder Return As of September 30, 2021 % 35 30 25 20 15 10 5 0 YTD 1 year 5 years 10 years 20 years Investor B SIXRX Return requirement 21
Slide 22: Financial Calendar
Viveka Hirdman-Ryrberg Head of Corporate Communication & Sustainability +46 70 550 3500 Viveka.hirdman-ryrberg@investorab.com Magnus Dalhammar Head of Investor Relations +46 73 524 2130 Magnus.dalhammar@investorab.com Financial Calendar 2022-01-21 Year-End Report 2021 2022-04-21 Interim Management S
Slide 23: Appendix
Appendix 23
Slide 24: Advanced Instruments Q3 2021
Q3 2021 • Organic sales growth amounted to 6 percent in constant USD m. Negative impact from % currency. End customer demand was strong, but deliveries Negative impact from transaction and integration 90 transaction and integration costs related to Clinical 40 were negatively impacted by supply chai
Slide 25: Q3 2021 subsidiary results
Q3 2021 • Organic sales growth amounted to 11 percent in constant SEK m. % currency. Sales grew in EMEA and Americas, compared to a 1 400 25 weak third quarter last year, as covid-19-related restrictions eased. APAC declined, affected by changes in the Australian 1 200 20 reimbursement system 1 000
Slide 26: Sarnova Q3 2021
Q3 2021 • Organic sales growth amounted to 14 percent in constant USD m. % currency, with all segments growing. Acute showed the highest Negative impact from 250 transaction costs related 18 growth to Digitech acquisition 16 200 • Acquired Allied 100, a leading specialty distributor of automated 14
Slide 27: Piab Q3 2021
Q3 2021 • Organic sales growth amounted to 26 percent in constant SEK m. Negative impact % currency, with strong contribution from all divisions and regions from costs related to 500 40 TAWI acquisition 450 • The EBITA margin increased compared to last year, primarily 35 driven by operating leverage
Slide 28: Advanced Instruments Q3 2021
SEK m. % Q3 2021 1 400 25 • Organic sales growth amounted to 26 percent in constant 1 200 % USD m. Negative impact 20 currency, driven by strong instruments, consumables and from transaction 30 1 000 costs related to 60 services performance. In addition, covid-19 negatively impacted Solentim acquisi
Slide 29: BraunAbility Q3 2021
Q3 2021 • Organic sales growth amounted to 17 percent in constant USD m. % currency, driven by strong consumer demand and last year’s 250 12 sales being depressed by covid-19. Recovery led by consumer 10 WAVs (Wheelchair Accessible Vehicles) and the retail business, 200 yet remains constrained by a
Slide 30: Atlas Antibodies Q3 2021
Q3 2021 • Presented as a major subsidiary as of the third quarter 2021 SEK m. % 100 60 • To facilitate comparisons with the prior year, all financial figures 90 are presented on a pro forma basis 50 80 • Acquired evitria, a quality leader within custom recombinant 70 40 antibody expression serving t
Slide 31: Three Scandinavia Q3 2021
Q3 2021 • Subscription base +40,000, of which 37,000 in Sweden and SEK m. % 3,000 in Denmark 3 500 Negative impact 50 from VAT rulings 40 • Adjusted for the negative earnings impact from the divestment 3 000 of Three Scandinavia’s passive network infrastructure assets, 30 2 500 EBITDA increased 20 2