Investor Ab Class A · OMXSTO:INVE_A
Investor Ab Class A — Q1 2022 Earnings Presentation
35 slides from Investor Ab Class A's earnings presentation, April 2022
Slide 1: Interim Management Statement January-March 2022
Interim Management Statement January-March 2022 Johan Forssell, CEO Helena Saxon, CFO
Slide 2: Invasion of Ukraine, supply chain challenges and inflation
The invasion of Ukraine has led to huge humanitarian suffering Supply chain challenges and inflation impacted further Close work with our companies to navigate in this environment 2
Slide 3: Deliver on our ESG targets – A Strategic Priority
Deliver on our ESG targets – A Strategic Priority Outcome 2021 Business Ethics & Governance Climate & Resource Efficiency Diversity & Inclusion Portfolio companies Portfolio companies’ scope 1 and 2, tonnes CO2e Diversity in portfolio 100% -49% 2 500 000 2 000 000 have an Anti- Corruption Policy 1 5
Slide 4: Q1 2022 Adj. Net Asset Value growth, Investor AB
Q1 2022 -10% Adj. Net Asset Value growth, -9% Total Shareholder Return, Investor AB Investor AB (-14% SIXRX) 4
Slide 5: Listed Companies
Listed Companies • -10% total return Q1 2022 • Within industrial pumps, Atlas Copco announced two acquisitions with leading differentiated technologies and significant aftermarket businesses, creating a strong foundation for further growth • Full support for Ericsson’s strategy as well as for the Bo
Slide 6: Patricia Industries – Limited direct Exposure to Russia
Patricia Industries – Limited direct Exposure to Russia • No production in Russia • Very limited presence on the ground • <SEK 50m in sales, ~0.1 percent of total sales • Indirect exposure, e.g. supply chains and costs for raw materials
Slide 7: Patricia Industries
Patricia Industries • -5% total return Q1 2022 • Strategic add-on acquisitions • Organic sales growth 5% in constant currency, adj. EBITA -3% • Excluding Mölnlycke: organic sales growth 16%, adj. EBITA +30% 20% of total adjusted assets SEK 138bn adjusted market value
Slide 8: Mölnlycke Q1 2022 results
Antiseptics 3% Gloves 13% Q1 2022 Wound Share of sales, Group Care 57% last 12 months Operating (March 31, 2022) Room • Organic sales growth -7% in constant currency, explained by significant Solutions contribution of covid-19-related sales of PPE last year. Excluding PPE, 27% organic growth was 6%,
Slide 9: Patricia Industries subsidiaries sales and margins
Organic Margins, Change Value, growth % vs. SEK bn Q1 2022 % Q1 2022 Q1 2021 EBITDA 9.8 3.2 4.0 43 EBITA 7.7 3.6 EBITDA 47.4 -5.3 2.9 20 EBITA 41.9 -5.1 EBITDA 44.3 -6.1 7.0 20 EBITA 42.8 -6.1 EBITDA* 30.2 0.4 8.1 17 EBITA* 26.7 0.8 EBITDA 15.9 -5.2 9.3 6 EBITA 12.0 -4.3 EBITDA 23.1 -7.8 15.0 4 EBIT
Slide 10: Patricia Industries – Strategic add-on Acquisitions
Patricia Industries – Strategic add-on Acquisitions Closed during Q1 2022 Announced after the end of Q1 2022 A breakthrough treatment for A leading company in ultra- Manufactures innovative urethral strictures light active wheelchairs handling systems FDA approval received, now Sales SEK 150m Sales
Slide 11: Patricia Industries – Attractive Platforms for continued Growth
Patricia Industries – Attractive Platforms for continued Growth Based on 2021 reported figures for all major subsidiaries excluding Vectura 19% EBITA margin ~3x ~55% Capital turnover Return on Capital Employed ex goodwill/intangibles
Slide 12: Investments in EQT
Investments in EQT • -15% total return - Total return, EQT AB -25% - Reported value growth, EQT funds 12% • SEK 0.1bn net cash flow to Investor - Drawdowns SEK 1.9bn - Proceeds SEK 1.9bn • EUR 6.8bn strategic acquisition of Baring Private Equity Asia • Significantly expands Assets under Management •
Slide 13: Well positioned to continue delivering attractive long-term total returns
Well positioned to continue delivering attractive long-term total returns In a challenging environment, Investor stands strong • We own great companies with leading positions in attractive markets, led by top-quality people • We have a strong financial position, enabling us to act on attractive oppo
Slide 14: Interim Management Statement January-March 2022
Interim Management Statement January-March 2022 Helena Saxon, CFO
Slide 15: Adjusted Net Asset Value
Adjusted Net Asset Value 15% Avg. annual 684 SEK bn, growth, adjusted with dividend net asset value added back, March 31, 2022 5 years 900 800 700 600 500 400 300 200 100 0 2016 2017 2018 2019 2020 2021 2022 -100 Listed companies Patricia Industries Investments in EQT Other assets & liabilities Net
Slide 16: Total Return by Business Area
Total Return by Business Area Q1 2022 Share of total adjusted assets Investments in EQT 14% -5% -10% -15% Patricia Industries 20% Patricia Listed Investments Industries Companies in EQT -10% -14% Listed Companies Total SIXRX 66% 16
Slide 17: Listed Companies
Listed Companies 457 66% SEK bn of total adj. assets 17
Slide 18: Listed Companies TSR and contribution to NAV
TSR -10% Listed Companies TSR XX% SIXRX -14% SIXRX XX% Q1 2022 Contribution to NAV Total Return % 60 SEK m 50 40 15 000 30 10 000 20 5 000 10 0 0 -5 000 -10 -10 000 -20 -15 000 -30 -20 000 -40 -25 000 -30 000 18
Slide 19: Patricia Industries
Patricia Industries 138 20% SEK bn (ex. cash) of total adj. assets 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 392 240 146 119 73 0 996 1 091 (23) 156 611 (1 473) (7 382) 146 169 (4 621) SEK 3.1bn internal transfer to Investor AB SEK 1.3bn provided in acquisition financing Total NAV Three Sarnov
Slide 21: Major Drivers of Estimated Market Values Q1
Major Drivers of Estimated Market Values Q1 Est. market value change Q1 2022 vs. Q4 2021 Major Drivers SEK -7.4bn Lower multiples and lower earnings impacted negatively Lower multiples impacted negatively. SEK 344m capital injection SEK -1.5bn from Patricia Industries SEK 0.4bn Higher earnings impac
Slide 22: Financial Position, March 31, 2022
Financial Position, March 31, 2022 AA-/Aa3 10.8y % Ratings S&P/ Average Moody’s maturity of debt portfolio 20 15 10 5 0 2018 2019 2020 2021 2022 -5 Leverage target range Leverage 22
Slide 23: Average Annual Total Shareholder Return
Average Annual Total Shareholder Return % 25 20 15 10 5 0 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 & 2022-05-03 Sustainability Annual General Meeting +46 70 550 3500 2022-07-15 Viveka.hirdman-ryrberg@investorab.com Interim Report January-June 2022 2022-10-20 Interim Management Statement January-September 2022 Magnus Dalhamm
Slide 25: Appendix
Appendix
Slide 26: Mölnlycke Q1 2022
Antiseptics 3% Gloves 13% Q1 2022 Wound Share of sales, Group Care 57% last 12 months Operating (March 31, 2022) Room • Organic sales growth -7% in constant currency, explained by significant Solutions contribution of covid-19-related sales of PPE last year. Excluding PPE, 27% organic growth was 6%,
Slide 27: Laborie Q1 2022
Q1 2022 ● Organic sales growth amounted to 4% in constant currency. End- customer demand was strong, but significant supply chain challenges Negative impact from had a negative impact on sales in the quarter. UR (Urology) declined transaction costs USD m % compared to prior year, while GI (Gastroint
Slide 28: Sarnova Q1 2022
Q1 2022 ● Organic sales growth amounted to 3% in constant currency. The quarter was negatively impacted by supply chain challenges related to the availability of Automated External Defibrillators (AEDs), as well as a USD m % slowdown in covid-19-driven demand for respiratory products within Acute Ne
Slide 29: Permobil Q1 2022
Q1 2022 ● Organic sales growth amounted to 6% in constant currency, with growth in all geographic regions. SEK m % ● The EBITA margin declined, mainly due to higher costs for freight and sourcing as well as some non-recurring items. 1 400 25 ● Operating cash flow was negative due to growth in net wo
Slide 30: Piab Q1 2022
Q1 2022 ● Organic sales growth amounted to 17 percent, driven by all divisions and regions. SEK m ● The EBITA margin was flat, negatively impacted by transaction-related Negative impact from write-down and costs. Adjusted for this, the EBITA margin was 27 percent. Negative impact transaction costs %
Slide 31: Advanced Instruments Q1 2022
SEK m. % Q1 2022 1 400 25 ● Organic sales growth amounted to 20% in constant currency, driven by 1 200 strong instruments, consumables and services performance. The recently 20 acquired Solentim products, not included in organic growth, continued to 1 000 USD m perform strongly, with growth well abo
Slide 32: BraunAbility Q1 2022
Q1 2022 ● Organic sales growth amounted to 43% in constant currency, driven by strong demand across all business units and easing of supply chain constraints that negatively impacted sales in the prior year period. SEK m % ● The EBITA margin improved, driven by operating leverage and product 250 12
Slide 33: Financial Investments / Real estate Q1 2022
Q1 2022 ● Total sales decreased with 8%, due to lost income from the divested Grand Hôtel property. Adjusted for this divestment, growth amounted to 45 percent driven by new Community Services properties. SEK m % 100 80 ● A rental agreement of more than 16,000 m2 was signed with Mölnlycke Healthcare
Slide 34: Vectura / Biotech subsidiary Q1 2022
Q1 2022 ● Organic sales growth amounted to 20% in constant currency primarily driven by the evitria business. SEK m % ● The EBITA margined decreased following investments in production and 120 60 the organization. ● During the quarter, evitria entered into a licensing agreement with 100 50 mAbsolve,
Slide 35: Three Scandinavia Q1 2022
Q1 2022 ● The subscription base increased by 26,000, of which 10,000 in Sweden and 16,000 in Denmark. SEK m % ● Service revenue increased by 7% and EBITDA increased by 3%. Negative impact from VAT rulings 3 500 50 ● The company invested significantly in the buildout of its 5G network to 40 deliver a