Investor Ab Class A · OMXSTO:INVE_A
Investor Ab Class A — Q3 2022 Earnings Presentation
35 slides from Investor Ab Class A's earnings presentation, October 2022
Slide 1: Interim Management Statement January-September 2022
Interim Management Statement January-September 2022 Johan Forssell, CEO 1 Helena Saxon, CFO
Slide 2: Strong performance in the third quarter
Strong performance in the third quarter Consumer headwinds increase risk for weaker demand going forward Well positioned to perform in tougher times 2
Slide 3: Adjusted NAV growth and total shareholder return Q3 and YTD 2022
% % 3 0 2 -5 1 -10 0 -15 -1 -20 -2 -25 -3 -30 -4 -35 Adjusted NAV TSR SIXRX Adjusted NAV TSR SIXRX Q3 2022 YTD 2022 3% Adj. Net Asset Value growth -3% Total Shareholder Return -16% Adj. Net Asset Value growth -27% Total Shareholder Return 3 (-4% SIXRX) (-31% SIXRX)
Slide 4: Listed Companies
Listed Companies • Q3 2022: 2% total return, SIXRX return index -4% • YTD: -16% total return, SIXRX return index -31% • SEK 0.5bn invested in Atlas Copco • ABB completed the spin-off of Accelleron (after the end of the quarter) • Flexibility and preparedness critical near-term, continued investments
Slide 5: Patricia Industries – Industry Leaders with attractive Exposure
Patricia Industries – Industry Leaders with attractive Exposure SEK ~51bn* revenue SEK ~11.5bn* EBITDA (12m period ending Sept. 30, 2022) The graph presents adjusted market values as of Sept. 30, 2022 Financial Investments 5 *Subsidiaries and 40 percent of Three Scandinavia
Slide 6: Patricia Industries – Record Profit in Q3 2022
Patricia Industries – Record Profit in Q3 2022 EBITDA, 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 Q1 15 Q2 20 Q2 22 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 Q3 20
Slide 7: Patricia Industries
Patricia Industries • Q3 2022: 5% total return (ex. cash) • YTD: 2% total return (ex. cash) • 32% reported sales growth, of which 10% organic in constant currency. Adjusted EBITA growth 34% • Focus on integration of recent add-on acquisitions, efficiency measures, and capturing new growth opportunit
Slide 8: Operating Performance
Operating Performance Value, Organic growth Margins, % Change vs. SEK bn Q3 2022 % Q3 2022 Q3 2021 EBITDA 9.3 0.3 4.8 28 EBITA 7.5 0.9 EBITDA 31.3 3.6 17.3 20 EBITA 29.5 5.1 EBITDA 22.5 2.4 9.1 12 EBITA 18.9 2.9 EBITDA 28.6 1.1 67.4 9 EBITA 25.1 1.7 EBITDA 52.3 0 3.0 7 EBITA 46.4 -0.1 EBITDA 26.2 -3
Slide 9: Mölnlycke
Antiseptics 3% Gloves 14% Share of sales, Wound last 12 months Care 58% (Sept. 30, 2022) Operating Room • Reported sales grew by 16 percent, of which 9 percent Solutions 26% organically in constant currency • Wound Care +9 percent organically • ORS +10 percent organically • Gloves +15 percent organi
Slide 10: EUR 50m invested in new surgical gloves factory in Malaysia
EUR 50m invested in new surgical gloves factory in Malaysia Investment to increase capacity and decarbonize production 10 10
Slide 11: Investments in EQT
Investments in EQT • Q3 2022: 2% total return Net cash flow to Investor SEK m - EQT AB 5% total return 6 000 - EQT funds -1% reported value growth 5 000 • SEK 0.9bn net cash flow to Investor 4 000 - Proceeds SEK 1.4bn 3 000 - Drawdowns SEK 0.4bn 2 000 1 000 • Combination with BPEA completed (October
Slide 12: Well positioned for tougher times
Well positioned for tougher times 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 12
Slide 13: Interim Management Statement January-September 2022
Interim Management Statement January-September 2022 Helena Saxon, CFO 13
Slide 14: Adjusted Net Asset Value
Adjusted Net Asset Value 13% Avg. annual 626 growth, SEK bn, with dividend adjusted added back, net asset value 5 years Sept. 30, 2022 900 (SIXRX 7%) 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 15: Total Return by Business Area
Total Return by Business Area Q3 2022 Share of total adjusted assets Investments in EQT 11% Patricia Industries 5% 2% 2% 23% Patricia Listed Investments Industries Companies in EQT SEK 641bn 3% Total Listed Companies 66% - 4% SIXRX 15
Slide 16: Listed Companies
Listed Companies SEK 424 market value bn 66% of total adjusted assets
Slide 17: Listed Companies
Listed Companies TSR XX% TSR 2% SIXRX XX% SIXRX -4% Q3 2022 Contribution to NAV Total Return SEK m % 10 000 25 8 000 20 15 6 000 10 4 000 5 2 000 0 0 -5 -10 -2 000 -15 -4 000 -20 -6 000 -25 17
Slide 18: Patricia Industries
Patricia Industries SEK 149 bn adjusted market value 23% of total adjusted assets
Slide 19: Patricia Industries – Change in Estimated Market Values
Patricia Industries – Change in Estimated Market Values SEK m Estimated market value change Distributions/proceeds 401 81 48 15 155 156 171 421 815 (160) 868 1 019 1 496 2 314 148 696 Total NAV Laborie Mölnlycke Advanced Permobil Three BraunAbility Sarnova Atlas Financial Vectura Piab Patricia Total
Slide 20: Major Drivers of Estimated Market Values Q3
Major Drivers of Estimated Market Values Q3 Est. market value change Q3 2022 vs. Q2 2022 SEK bn Major Drivers Higher earnings and currency impacted positively, lower multiples 2.3 impacted negatively Higher earnings, currency and cash flow impacted positively, 1.5 lower multiples impacted negatively
Slide 21: Strong Balance Sheet - No Maturities until 2029
Strong Balance Sheet - No Maturities until 2029 SEK 23bn raised during the past 4 years SEK m 14 Average maturity years 7 000 12.1y ~1.5% Average fixed interest rate 6 000 Average maturity of total debt portfolio 5 000 4 000 3 000 2 000 1 000 0 21
Slide 22: Leverage in the lower End of the Range, September 30, 2022
Leverage in the lower End of the Range, September 30, 2022 AA-/Aa3 Ratings S&P/ Moody’s % 20 15 10 5 0 2018 2019 2020 2021 2022 -5 Leverage target range Leverage 22
Slide 23: Average Annual Total Shareholder Return (September 30, 2022)
Average Annual Total Shareholder Return (September 30, 2022) % 25 20 15 10 5 0 -5 -10 -15 -20 -25 -30 -35 YTD 1 year 5 years 10 years 20 years Investor B SIXRX Return requirement 23
Slide 24: Financial Calendar
Financial Calendar Viveka Hirdman-Ryrberg Head of Corporate Communication & Sustainability +46 70 550 3500 2023-01-20 Viveka.hirdman-ryrberg@investorab.com Year-End Report 2022 2023-04-21 Interim Management Statement January-March 2023 2023-07-17 Interim Report Magnus Dalhammar January-June 2023 Hea
Slide 25: Appendix
Appendix investor
Slide 26: Activities during the quarter – Mölnlycke
Activities during the quarter Group ● Reported sales grew by 16 percent, of which 9 percent organically in constant currency. Wound Care, ORS and Gloves grew, while Antiseptics declined. ● EBITA increased by 24 percent and the margin improvement amounted to almost 2 percentage points. While raw mate
Slide 27: Activities during the quarter – Laborie
Negative impact from Negative impact from transaction and integration transaction costs related to costs related to Cogentix Pelvalon and OptilumeTM Activities during the quarter Negative impact from ● Organic sales growth amounted to 20 percent in constant currency. USD m transaction and integratio
Slide 28: Activities during the quarter – Sarnova
Negative impact from Negative impact from transaction costs related Activities during the quarter transaction costs related to Digitech acquisition to Digitech acquisition ● Organic sales declined by 5 percent in constant currency, driven by the USD m % Acute business unit, explained by a notably st
Slide 29: Activities during the quarter – Advanced Instruments
Negative impact from costs related to Activities during the quarter Artel acquisition ● Organic sales growth amounted to 3 percent in constant currency, USD m Negative impact % negatively impacted by weak instrument sales to biopharmaceutical from costs related to customers. This was partly offset b
Slide 30: Activities during the quarter – Permobil
Activities during the quarter ● Organic sales growth amounted to 12 percent in constant currency, % supported by all regions and product categories. SEK m 1 600 25 ● The EBITA margin increased compared to last year, primarily driven by operating leverage and currency, mitigated by higher costs for s
Slide 31: Activities during the quarter – Piab
Activities during the quarter Negative impact Negative impact Negative impact from costs related to from write-down from write-down and and ● Organic sales growth amounted to 6 percent in constant currency, driven SEK m TAWI acquisition transaction costs transaction costs % by all divisions. The rec
Slide 32: Activities during the quarter – BraunAbility
Activities during the quarter ● Organic sales growth amounted to 28 percent in constant currency, with SEK m % solid demand recovery across all segments and continued easing of 300 12 supply chain constraints. In particular, the Commercial WAV (Wheelchair Accessible Vehicle) and lifts segments demon
Slide 33: Activities during the quarter – Vectura
Grand Hôtel property Activities during the quarter divested, last quarter with revenues from Grand Hôtel ● Total sales growth amounted to 23 percent, driven by new Community SEK m % Services properties. 100 80 ● New rental agreements were signed in both Forskaren and GoCo House. 90 70 ● Vectura acqu
Slide 34: Activities during the quarter – Atlas Antibodies
Activities during the quarter ● Organic sales growth amounted to 7 percent in constant currency, SEK m % primarily driven by the evitria business. 120 60 ● The EBITA margin was stable compared to last year. 100 50 ● Atlas Antibodies extended its product portfolio with monoclonal antibodies for ovari
Slide 35: Activities during the quarter – Three Scandinavia
Negative impact from VAT rulings SEK m % Activities during the quarter 3 500 80 ● The subscription base increased by 38,000, of which 34,000 in Sweden and 4,000 in Denmark. 3 000 60 ● Service revenue increased by 9 percent and EBITDA by 6 percent. 2 500 40 ● In Sweden, Three was ranked #1 among all