Investor Ab Class A · OMXSTO:INVE_A
Investor Ab Class A — Q3 2023 Earnings Presentation
36 slides from Investor Ab Class A's earnings presentation, October 2023
Slide 1: Interim Management Statement January-September 2023
Interim Management Statement January-September 2023 Johan Forssell, CEO 1 Helena Saxon, CFO
Slide 2: Stable performance despite challenging financial markets
Stable performance despite challenging financial markets Continued strong profit growth in the Patricia Industries subsidiaries High activity across the portfolio 2
Slide 3: Adjusted NAV and TSR vs SIXRX, Q3 and YTD 2023
% Q3 2023 % YTD 2023 0 20 15 -2 -2 15 13 -3 -4 10 5 -6 5 -6 -8 0 Adjusted NAV TSR SIXRX Adjusted NAV TSR SIXRX 3
Slide 4: Listed Companies - Performance
Listed Companies - Performance Electrolux Husqvarna Wärtsilä 2% % Total Return Electrolux 1% 2% Professional 1% 15 Ericsson 3% • Total return -3% (SIXRX -6%), Saab 4% 10 relative outperformance supported Atlas Sobi 5% by Sobi and SEB Copco 23% 5 Nasdaq 0 • SEK 2.2bn (pro rata share) invested 6% in S
Slide 5: Future-proofing activities in our companies
Next Generation Center for AI-enabled Technologies Future-proofing activities in our companies ABB to invest USD 280m in its European Robotics hub in Sweden 5
Slide 6: Patricia Industries – Performance
Patricia Industries – Performance Atlas Antibodies Three 1% • Total return, amounted to 0% (excl. cash) Scandinavia 4% Financial Investments 1% Vectura 4% • Sales growth for the major subsidiaries amounted to 10% BraunAbility 5% Mölnlycke of which 5% organically in constant currency 42% Piab 5% • Ad
Slide 7: Patricia Industries – EBITDA 12m rolling
Patricia Industries – EBITDA 12m rolling Sales: SEK 61.1bn EBITDA: SEK 14.6bn 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 4 000 1 000 500 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
Slide 8: Operating Performance
Operating Performance Value, Organic growth,% Margins, % Change vs. SEK bn Q3 2023 Q3 2023 Q3 2022 EBITDA 42.6 6.7 11.6 10 EBITA 40.8 6.5 EBITDA 25.3 2.8 15.8 8 EBITA 22.0 3.1 EBITDA 11.1 1.8 9.3 8 EBITA 9.3 1.8 EBITDA 29.4 3.2 9.6 6 EBITA 25.3 2.9 EBITDA 29.0 0.4 73.8 4 EBITA 25.5 0.4 EBITDA 33.0 1
Slide 9: Mölnlycke – Activities during the quarter
Antiseptics 3% Gloves 13% Activities during the quarter Share of sales, Group Operating last 12 months Wound (Sept. 30, 2023) Room • Organic sales growth amounted to 4 percent in constant currency, mainly Care 59% Solutions driven by Wound Care. 26% • The EBITA margin increased slightly, supported b
Slide 10: Laborie makes Strategic Acquisition of Urotronic
Laborie makes Strategic Acquisition of Urotronic Future-proofing • Medical device company offering the OptilumeTM drug-coated balloon technology activities in our companies • Significant potential within the large and growing global BPH* market • Strong clinical data • Clear synergies with Laborie’s
Slide 11: Investments in EQT
Investments in EQT Performance EQT AB Fund investments Net annual cash flow to Investor Total return 1% Total return 5% Reported value growth -2% SEK m 8 000 Net cash flow Outstanding commitment 6 000 SEK -1.1bn to Investor SEK 21.7bn 4 000 2 000 0 2019 2013 2014 2015 2016 2017 2018 2020 2021 2022 9
Slide 12: Driving Value Creation
Driving Value Creation Drive strategic initiatives to future-proof our companies Manage the current market environment, focus on agility and capturing opportunities 10
Slide 13: Interim Management Statement January-September 2023
Interim Management Statement January-September 2023 Helena Saxon, CFO 13
Slide 14: Adjusted Net Asset Value
Adjusted Net Asset Value 15% 760 Average annual SEK bn, growth, adjusted with dividend net asset value added back, September 30, 5 years 2023 900 (SIXRX 8%) 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
Slide 15: Adjusted Net Asset Value Growth
Adjusted Net Asset Value Growth Q3 2023 YTD 2023 % % 2 30 1 25 1 25 0 0 20 14 15 -1 15 -2 10 -2 -3 5 1 -3 -4 0 Listed Patricia Investments Total Listed Patricia Investments Total Companies Industries in EQT Companies Industries in EQT 15
Slide 16: Listed Companies
Listed Companies ‘investor
Slide 17: Listed Companies – Contribution to NAV
Listed Companies – Contribution to NAV TSR XX% SIXRX XX% TSR -3% 2023 Q3 SIXRX -6% SEK m 6 000 4 000 2 000 0 -2 000 -4 000 -6 000 -8 000 -10 000 17
Slide 18: Patricia Industries
Patricia Industries
Slide 19: Patricia Industries – Drivers of Estimated Market Values
Patricia Industries – Drivers of Estimated Market Values SEK bn Total Return 0% (0% incl. cash) Main drivers Main drivers Earnings and Multiple contraction cash flow and currency 185 185 June 30, 2023 September 30, 2023 19
Slide 20: Patricia Industries – Change in Estimated Market Values
Patricia Industries – Change in Estimated Market Values SEK m Estimated market value change Distributions/proceeds 566 284 234 631 681 (77) 687 (479) 1 162 3 448 (3 685) 185 005 185 011 (3 446) SEK 3.5bn capital injection from Patricia Industries Q2 2023 Vectura Sarnova Advanced BraunAbility Laborie
Slide 21: Strong Financial Flexibility
Strong Financial Flexibility
Slide 22: 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 22
Slide 23: Strong Balance Sheet - No Maturities until 2029
Strong Balance Sheet - No Maturities until 2029 11.1 years SEK m Average maturity 8 000 7 000 6 000 5 000 4 000 3 000 2 000 1 000 0 23
Slide 24: Average Annual Total Return, September 30, 2023
Average Annual Total Return, September 30, 2023 % 35 30 25 20 15 10 5 0 YTD 1 year 5 years 10 years 20 years Investor B SIXRX Return requirement 24 24
Slide 25: Financial Calendar
Financial Calendar Viveka Hirdman-Ryrberg 2023-12-08 Head of Corporate Communication & Capital Markets Update Sustainability 2024-01-19 +46 70 550 3500 Year-End Report 2023 Viveka.hirdman-ryrberg@investorab.com 2024-04-18 Interim Management Statement January-March 2024 2024-05-07 Annual General Meet
Slide 26: Appendix
Appendix investor
Slide 27: Mölnlycke – Activities during the quarter
Antiseptics 3% Gloves 13% Activities during the quarter Share of sales, Group Operating last 12 months Wound (Sept. 30, 2023) Room • Organic sales growth amounted to 4 percent in constant currency, mainly Care 59% Solutions driven by Wound Care. 26% • The EBITA margin increased slightly, supported b
Slide 28: Laborie – Activities during the quarter
Activities during the quarter • Organic sales growth amounted to 4 percent in constant currency. Growth was driven by the OptilumeTM urethral strictures product and the GI (Gastrointestinal) business, while UR (Urology) capital equipment faced headwinds due to a more conservative capital expenditure
Slide 29: Sarnova – Activities during the quarter
Activities during the quarter • Organic sales grew by 3 percent in constant currency. The highest growth was generated by the EMS (Emergency Medical Services) RCM (Revenue Cycle Management) business, which benefitted from higher volumes of EMS transports. Despite a notably strong prior-year quarter,
Slide 30: Permobil – Activities during the quarter
Activities during the quarter • Organic sales growth amounted to 8 percent in constant currency, driven by Americas and EMEA. • The EBITA margin increased driven by improved supply chain. • Permobil acquired Canada-based PDG Mobility, a leading provider of manual tilt-in-space wheelchairs with sales
Slide 31: Advanced Instruments – Activities during the quarter
Activities during the quarter • Organic sales growth amounted to 10 percent in constant currency. Instrument sales to the biopharmaceutical end market were lower compared to last year, but the decline was smaller than in previous quarters as the comparison period was more favorable. The company cont
Slide 32: Piab – Activities during the quarter
Activities during the quarter • Organic sales growth amounted to 6 percent in constant currency, mainly driven by Vacuum Automation. All geographies contributed to growth, with Americas showing the highest growth. • The EBITA margin increased, mainly driven by mix and a higher gross margin. • Within
Slide 33: BraunAbility – Activities during the quarter
Activities during the quarter • Organic sales growth amounted to 8 percent in constant currency, led by strong demand across the product portfolio and particularly in lifts and the Q’straint business. • The EBITA margin improved, driven by operating leverage, cost efficiency improvements, and favora
Slide 34: Vectura – Activities during the quarter
Activities during the quarter • Total sales growth amounted to 9 percent, mainly driven by rent increases due to annual indexation. • The EBITDA margin increased by 8 percentage points, mainly driven by growth and operating leverage. • New rental agreements were signed in both Forskaren in Hagastade
Slide 35: Atlas Antibodies – Activities during the quarter
Activities during the quarter • Organic sales declined by 36 percent in constant currency, driven by both the evitria and Atlas Antibodies businesses, although the former with a greater impact. Demand from smaller biotechnology companies, especially those focused on early stages in drug discovery in
Slide 36: Three Scandinavia – Activities during the quarter
Activities during the quarter • The subscription base increased by 47,000, of which 36,000 in Sweden and 11,000 in Denmark. • Service revenue increased by 10 percent and EBITDA increased by 15 percent, driven by price increases and operating leverage. • In the spectrum auction in September, Three Sw