Investor Ab Class A · OMXSTO:INVE_A
Investor Ab Class A — FY2021 Earnings Presentation
38 slides from Investor Ab Class A's earnings presentation, January 2022
Slide 1: Year-End Report 2021
Year-End Report 2021 Johan Forssell, CEO 1 Helena Saxon, CFO
Slide 2: A strong year for Investor
2021 Despite challenges, the global economy continued to improve A strong year for Investor 2
Slide 3: 2021 NAV growth and Total Shareholder Return
2021 41% Adj. Net Asset Value growth, 55% Total Shareholder Return, Investor AB Investor AB (39% SIXRX) 3
Slide 4: Q4 2021 NAV growth and Total Shareholder Return
Q4 2021 12% Adj. Net Asset Value growth, 21% Total Shareholder Return, Investor AB Investor AB (12% SIXRX) 4
Slide 5: Highlights 2021
Highlights 2021 • Our companies managed pandemic- and supply chain-related challenges successfully • Listed Companies –focus on strategic investments within our companies • Patricia Industries – significant add-on acquisitions • Investments in EQT - strong value growth and cash flow • Sharpened clim
Slide 6: Listed Companies - Generally strong performance in our Companies
Listed Companies - Generally strong performance in our Companies • 44% total return 2021 (11% Q4) • Prioritized areas: sustainability, innovation, digitalization, talent management • Important strategic acquisitions and investments • Bid on Sobi withdrawn, full focus on long-term value creation • SE
Slide 7: Patricia Industries – High activity within our Companies
Patricia Industries – High activity within our Companies • 3% total return 2021 (-1% Q4) • Atlas Antibodies new subsidiary • Divestment of Grand Group and Grand Hôtel property • Several strategic add-on acquisitions in platform companies 19% of total adjusted assets SEK 144bn adjusted market value 7
Slide 8: Patricia Industries – Continues to grow great Platform Companies
Patricia Industries – Continues to grow great Platform Companies • Advanced Instruments acquired Solentim • Atlas Antibodies acquired evitria • Sarnova acquired Allied 100 • BraunAbility acquired Q’straint • Additional add-on acquisitions • SEK ~6bn invested by Patricia Industries 19% of total adjus
Slide 9: Patricia Industries – Development in the subsidiaries, Q4
Patricia Industries – Development in the subsidiaries, Q4 Major subsidiaries Major subsidiaries -10% excl. Mölnlycke Organic sales growth -23% 8% 24% Organic sales growth Adjusted EBITA growth Adjusted EBITA growth 9
Slide 10: Mölnlycke Q4 2021
Sales, EUR m Q4 2021 Q4 19 Q4 20 Q4 21 Wound Care Surgical Group • Organic sales growth -26 percent in constant currency, explained by significant contribution of covid-19 related sales of PPE last year. Gloves remained impacted by a temporary, EUR m. % covid-19-related halt in production. Wound Car
Slide 11: Patricia Industries subsidiaries value, growth and margins
Organic Margins, Change Value, growth % vs. SEK bn Q4 % Q4 2021 Q4 2020 EBITDA 51.4 +0.9 3.0 19 EBITA 45.0 +0.9 EBITDA* 45.4 -3.1 7.0 18 EBITA* 44.1 -3.1 EBITDA* 31.3 +8.7 14.7 14 EBITA* 29.1 +10.3 EBITDA 7.2 -0.7 3.6 14 EBITA 4.6 -0.6 EBITDA 23.1 -5.4 8.0 8 EBITA 17.2 -7.4 Negatively impacted by wr
Slide 12: Investments in EQT - A strong 2021
Investments in EQT - A strong 2021 • 111% total return (30% Q4) - Total return, EQT AB 135% - Reported value growth, EQT funds 70% • SEK 4.8bn net cash flow to Investor - Drawdowns SEK 8.1bn - Proceeds SEK 12.9bn - High fund activity • EQT AB strategic acquisitions of Exeter Property Group and Life
Slide 13: Delivering on our strategy
Delivering on our strategy 13
Slide 14: Well positioned to continue delivering attractive long-term total returns
Well positioned to continue delivering attractive long-term total returns Regardless of how the global economy and equity markets develop, Investor stands strong • We own great companies with leading positions in attractive markets, led by top-quality people • We have a strong financial position, en
Slide 15: Year-End Report 2021
Year-End Report 2021 Johan Forssell, CEO 15 Helena Saxon, CFO
Slide 16: Adjusted Net Asset Value
Adjusted Net Asset Value 20% 761 Avg. annual SEK bn, growth, adjusted with dividend net asset value added back, December 31, 5 years 2021 SEK bn 900 800 700 600 500 400 300 200 100 0 -100 2016 2017 2018 2019 2020 2021 Listed companies Patricia Industries Investments in EQT Other assets & liabilities
Slide 17: Total Return by Business Area
Total Return by Business Area % Q4 2021 2021 % 120 111 35 100 30 30 80 25 20 60 44 41 15 11 12 40 10 20 5 3 0 0 -1 Listed Patricia Investments in Total -5 Companies Industries EQT Listed Patricia Investments in Total Companies Industries EQT Share of total adjusted assets 66% 19% 15% 17
Slide 18: Listed Companies
Listed Companies 18
Slide 19: Listed Companies
Listed Companies TSR 11% TSR 44% SIXRX 12% SIXRX 39% Q4 2021 2021 2021 AstraZeneca 11% SEK m % SEB 50 000 90 11% Epiroc 45 000 80 9% 40 000 70 Nasdaq 35 000 60 7% 30 000 ABB 50 18% 25 000 40 SEK 515bn Ericsson 20 000 5% 30 Sobi 15 000 4% 10 000 20 Husqvarna 10 3% 5 000 Wärtsilä 0 2% 0 Electrolux -5
Slide 20: Patricia Industries
Patricia Industries 20
Slide 21: Patricia Industries – Change in Estimated Market Values
Patricia Industries – Change in Estimated Market Values SEK m Estimated market value change Distributions/proceeds 286 144 0 529 680 -133 -3 -106 -171 158 651 BraunAbility Vectura 3% Atlas -1 740 3% Antibodies 2% Three Scandinavia 628 156 611 5% Advanced Instruments 5% -2 156 Piab 6% Mölnlycke 51% S
Slide 22: Major Drivers of Estimated Market Values Q4
Major Drivers of Estimated Market Values Q4 Est. market value change Q4 2021 vs. Q3 2021 Major Drivers SEK -2.2bn Lower multiples, lower earnings, partly mitigated by cash flow, EUR 50m distribution to Patricia Industries SEK -1.7bn Lower multiples and lower earnings SEK 0.5bn Higher earnings and cu
Slide 23: Financial Position, December 31, 2021
Financial Position, December 31, 2021 AA-/Aa3 10.8y % Ratings S&P/ Average Moody’s maturity of debt portfolio 20 15 10 5 0 -5 2016 2017 2018 2019 2020 2021 Target range Leverage 23
Slide 24: Maintain Financial Flexibility
Maintain Financial FlexibilityFinancial Flexibility 2015-2021 Sources Uses Net debt reduction Investments Net other in EQT Listed Listed Companies Companies SEK SEK ~122bn Dividend paid ~122bn Patricia Patricia Industries Industries Net debt SEK 6bn lower, leverage down from ~7 percent ~2 percent 24
Slide 25: Pay a Steadily Rising Dividend
Pay a Steadily Rising Dividend DPS, SEK 5 4 3 2 1 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021P 25
Slide 26: Average Annual Total Shareholder Return
Average Annual Total Shareholder Return % 60 50 40 30 20 10 0 1 year 5 years 10 years 20 years Investor B SIXRX Return requirement
Slide 27: Financial Calendar
Financial Calendar Viveka Hirdman-Ryrberg 2022-04-21 Head of Corporate Communication & Interim Management Statement Sustainability January-March 2022 +46 70 550 3500 2022-05-03 Viveka.hirdman-ryrberg@investorab.com Annual General Meeting 2022-07-15 Interim Report January-June 2022 2022-10-20 Magnus
Slide 28: Appendix
Appendix
Slide 29: Mölnlycke Q4 2021
Sales, EUR m Q4 2021 Q4 19 Q4 20 Q4 21 Wound Care Surgical Group • Organic sales growth -26 percent in constant currency, explained by significant contribution of covid-19 related sales of PPE last year. Gloves remained impacted by a temporary, EUR m. % covid-19-related halt in production. Wound Car
Slide 30: Laborie Q4 2021
Q4 2021 • Organic sales growth amounted to 14 percent in constant currency. Urology, Gastrointestinal and Maternal & child health USD m Negative impact from % all grew. End-customer demand was strong, but significant transaction and integration 90 Negative impact from costs related to Clinical 40 su
Slide 31: Sarnova Q4 2021
Q4 2021 • Organic sales were flat in constant currency compared to last year. The fourth quarter last year benefitted from significant USD m % covid-19-driven demand for personal protective equipment. The Negative impact from fourth quarter 2021 was negatively impacted by supply chain 250 transactio
Slide 32: Permobil Q4 2021
Q4 2021 • Organic sales growth amounted to 6 percent in constant currency, driven by EMEA and Americas, while APAC was flat. SEK m % 1 400 25 • The EBITA margin declined compared to last year mainly due to investments in a strategic product development project. 1 200 Adjusted for this, the margin de
Slide 33: Piab Q4 2021
Q4 2021 • Organic sales growth amounted to 8 percent in constant currency, driven by APAC and Americas. Vacuum Conveying SEK m Negative impact Negative impact and Vacuum Automation reported strong growth, while Lifting % 500 from costs related to from write-down and 40 Automation declined. TAWI acqu
Slide 34: Advanced Instruments Q4 2021
SEK m. % Q4 2021 1 400 25 • Organic sales growth amounted to 18 percent in constant 1 200 currency, driven by strong instruments, consumables and 20 1 000m USD % services performance. The recently acquired Solentim products, not included in organic growth, continued to perform strongly, 15 800 Negat
Slide 35: BraunAbility Q4 2021
Q4 2021 • Organic sales growth amounted to 14 percent in constant currency, driven by strong consumer demand and last year’s USD m % sales being depressed by covid-19. Recovery was led by the consumer and retail segments, while the commercial segment remained impacted by limited availability of OEM
Slide 36: Vectura Q4 2021
Q4 2021 • Total sales decreased by 20 percent, due to lost income from the divested Grand Hôtel property. Adjusted for the divestment SEK m % of Grand Hôtel, growth amounted to 24 percent driven by new Community Services properties. • A nursing home in Vällingby (6,800 m2) was acquired. 100 80 90 70
Slide 37: Atlas Antibodies Q4 2021
Q4 2021 • Organic sales growth amounted to 19 percent in constant currency. The evitria business was the largest growth driver. SEK m % 100 60 • The EBITA margin was slightly higher than last year. 90 50 • Investments in the commercial organization and administrative 80 functions continued. 70 40 60
Slide 38: Three Scandinavia Q4 2021
Q4 2021 • The subscription base increased by 44,000, of which 33,000 in Sweden and 11,000 in Denmark. Service revenue growth was 4 SEK m % percent. 3 500 Negative impact 50 from VAT rulings • Reported and adjusted (adjusted for items affecting 40 3 000 comparability last year and for the negative ea