Investor Ab Class A · OMXSTO:INVE_A
Investor Ab Class A — Q3 2016 Earnings Presentation
50 slides from Investor Ab Class A's earnings presentation, Oct 19, 2016
Slide 1: January – September 2016
January – September 2016 CEO Johan Forssell
Slide 2: Vi är våra innehav
Vi är våra innehav 2
Slide 3: Q3 2016 – summary
Q3 2016 – summary > Strong quarter despite challenging environment – NAV and total shareholder return +12 percent (SIXRX 10 percent) > Continued execution on strategy – Continued focus on value-creation in existing portfolio – Add-on investments in Wärtsilä – Patricia Industries’ acquisition of LABO
Slide 4: Listed Core Investments
Listed Core Investments Summary Q3 > Total return 14 percent > Companies continue to work to ensure competitiveness and capture opportunities > SEK 106 m. invested in Wärtsilä, increasing ownership to 17.7 percent > Dividends of SEK 8.3 bn. expected from Listed Core Investments in 2016 (7.7) 4
Slide 5: Listed Core Investments: ABB's decision to retain Power Grids
Listed Core Investments ABB’s decision to retain Power Grids > Having thoroughly evaluated different options for Power Grids, ABB will retain the division > We fully support ABB’s decision to keep Power Grids: – Strategically and operationally right – A spin-off would not offer sufficient potential
Slide 6: Listed Core Investments: Ericsson
Listed Core Investments Ericsson > The tough demand situation continues > Rapid and major technology shifts > Key priority near-term to find the right CEO 6
Slide 7: EQT
EQT Summary Q3 > High activity in the quarter > Value change flat in constant currency, 6 percent YTD > SEK 0.2 bn. net cash flow to Investor during the quarter, SEK 1.1 bn. YTD 7
Slide 8: Patricia Industries
Patricia Industries Summary Q3 > Acquisition of LABORIE completed – strong platform in attractive industry segment > Mölnlycke Health Care 4 percent organic growth, strong profitability and cash flow – EUR 300 m. distribution to Patricia Industries after the end of the quarter > Good growth and marg
Slide 9: Patricia Industries
Patricia Industries Summary Q3 > Continued growth in Aleris, declining profitability, management transition > BraunAbility reported strong growth, profitability flat due to significant investments 9
Slide 10: Continued execution on strategy
Continued Vi är våraexecution innehavon strategy 10
Slide 11: Financials
Financials January-September 2016 CFO Helena Saxon Presentation – October 19, 2016
Slide 12: Financial highlights
Financial highlights Q3 2016 SEK bn. > Net Asset Value (NAV) amounted to SEK 300 291 291 bn. an increase of SEK 32 bn. during the quarter 250 > NAV grew by 12% 200 > Total shareholder return (Investor B-share) 150 12% compared to 10% SIXRX Index 100 50 0 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10
Slide 13: Contribution to Net Asset Value
Contribution to Net Asset Value Q3 2016 SEK m.
Slide 14: Listed Core Investments
Listed Core Investments Q3 2016 Contribution to NAV, Total return, SEK m. Investor (%) Atlas Copco 8 575 19.2 ABB 7 898 20.6 SEB 6 184 18.7 AstraZeneca 3 627 14.0 Wärtsilä 1 476 12.5 Saab 1 423 16.6 Husqvarna 1 199 19.8 Nasdaq 702 6.6 SEK 240 801 m. 77 percent of Sobi 366 3.3 total assets Ericsson -
Slide 15: EQT
EQT Q3 2016 Net cash flow SEK m. 5 000 SEK m. 4 000 3 000 2 000 1 000 0 SEK 13 300 m. 2011 2012 2013 2014 2015 YTD 4 percent of 2016 total assets Q3 2016 Draw-downs Proceeds to Investor SEK m. 942 1 141 A private equity group with portfolio companies in Northern and Eastern Europe, Asia and the U.S.
Slide 16: Patricia Industries
Patricia Industries Q3 2016 Contribution to NAV, SEK m. Mölnlycke Health Care 1 150 Financial Investments 3 Scandinavia 170 SEK 10 293 m. SEK 23 183 m. BraunAbility 88 Permobil 59 Vectura 48 Grand Group 15 Aleris 14 SEK 5 513 m. SEK 57 656 m. LABORIE 4 19 percent of Financial Investments -20 total a
Slide 17: Mölnlycke Health Care
Mölnlycke Health Care Q3 2016 > Organic growth 4 percent in constant EUR m. % currency 1 600 31 > Wound Care driven by advanced wound 1 400 1 200 30 29 28 care in the U.S. and developing markets 1 000 27 800 > Growth in Surgical driven by gloves and 26 600 25 400 24 ProcedurePakTM 200 23 0 22 > The
Slide 18: LABORIE
LABORIE Q3 2016 > Organic growth 7 percent in constant % currency USD m. 140 25 > Strong demand within both 120 20 100 gastrointestinal and urology 80 15 > The reported EBITA-margin 22 percent, 60 10 40 5 adjusted for transaction related costs 20 0 0 27 percent 2015 2016 Rolling 12 m > Expansion int
Slide 19: Permobil
Permobil Q3 2016 > Organic growth 1 percent in constant SEK m. currency 3 500 % 25 > Lower demand in the U.S. 3 000 20 2 500 > Organic growth in powered wheelchairs in 2 000 15 1 500 Europe and TiLite 1 000 10 > The EBITA margin was flat despite higher 5 500 0 0 operating expanses 2012 2013 2014 201
Slide 20: Aleris
Aleris Q3 2016 > New Chairman and CEO appointed in the quarter SEK m. % 10 000 7 > Organic growth 6 percent in constant 9 000 8 000 6 7 000 5 currency 6 000 4 5 000 > Care drove growth in all three regions 4 000 3 000 3 2 > EBITA margin fell due to weak 2 000 1 000 1 0 0 performance within Healthcar
Slide 21: BraunAbility
BraunAbility Q3 2016 > Organic growth 15 percent in constant currency USD m. % > Strong demand for commercial wheelchair 450 10 400 9 350 8 accessible vans 300 7 > The EBITA margin flat, due to significant 6 250 5 200 4 investments in operational improvement 150 3 100 and R&D 50 2 1 > Acquisition of
Slide 22: Vectura and Grand Group
Vectura and Grand Group Q3 2016 Vectura SEK m. 200 % 80 > Growth 12 percent driven by revenue based 150 60 40 rental income from Grand Hôtel 100 20 0 > Acquisition of property in SØborg, Denmark, 50 -20 0 -40 where Aleris runs the Hamlet hospital 2013 2014 2015 2016 Rolling 12 m Sales EBITDA, % EBIT
Slide 23: 3 Scandinavia
3 Scandinavia Q3 2016 > 13,000 new subscribers, all in Sweden > Subscriber base up 6 percent, service SEK m. % 12 000 28 27 revenue up 5 percent 10 000 26 8 000 > EBITDA improved by 8 percent due to 25 6 000 24 23 operating leverage 4 000 22 2 000 > Acquisition of spectrum in Denmark to 21 0 20 2012
Slide 24: Financial Investments
Financial Investments Q3 2016 > Continued focus on divestments > Exits were made in Kunskapsskolan and Aternity, parts of holdings in Tobii and Mindjet were divested > Proceeds amounted to SEK 546 m. Financial Investments consists of all former Investor Growth Capital (IGC) investments and other hol
Slide 25: Leverage development
Leverage development Leverage development > Leverage 6.7% (5.5%) as of September % 30 25 30, 2016 20 15 > Reported net debt SEK 20.9 bn. 10 5 > Cash and readily available placements 0 -5 amounted to SEK 12.6 bn. -10 > Average maturity of the debt portfolio 10.3 -15 years Leverage target range Levera
Slide 26: Financial calendar & Contact details
Financial calendar & Contact details Event Date Year-End Report, January – December 2016 January 31, 2017 Interim Management Statement, January – March 2017 April 25, 2017 Annual General Meeting May 3, 2017 Contact details Stefan Stern +46 70 636 7417 Head of Corporate Relations, Sustainability and
Slide 27: Q&A
Q&A
Slide 28: Permobil
permobil WORLD LEADER IN ADVANCED REHAB TECHNOLOGY
Slide 29: We make a difference
We make a difference permobil
Slide 30: Our Commitment
Our Commitment Every person with a disability has the right to have his or her handicap compensated as far as possible by aids with the same technical standard as those we all use in our everyday lives Dr. Per Uddén (1967) Founder of Permobil Dr. Per Uddén in dialogue with Swedish Prime Minister Tag
Slide 31: Permobil in a snapshot
Permobil in a snapshot 70 Countries served Timrå 1,400 Employees in 16 countries Pasco 3.3 Net sales 2016 LTM (SEK bn) St Louis Nashville Kunshan 20% Annual growth last 5 years 16% EBITA* margin 2016 (LTM) Key locations 1967 2014 2016 Timrå, Sweden Permobil Acquisition of Tilite Distributor acquisit
Slide 32: Permobil business mix
Permobil business mix RoW Manual Europe Seating & Positioning Business Region Segment Power Americas 32
Slide 33: Focus on four user groups – representing 75% of all wheelchairs sold
Focus on four user groups – representing 75% of all wheelchairs sold Spinal Cord Injury (SCI) MS ALS CP Stable condition with Degenerative Rapidly degenerative Stable neurological variety of disability in neurological disease neurological disease disease which muscle function, resulting in reduced t
Slide 34: Medically justified. Individually configured. Mass-produced.
Medically justified. Individually configured. Mass-produced. Advanced Power Wheelchairs Active Manual Wheelchairs Wheelchair Seating & Positioning 34
Slide 35: Advanced Power Wheelchairs
Advanced Power Wheelchairs Carl has cerebral palsy. Carl uses a power wheelchair from Permobil 35
Slide 36: Active Manual Wheelchairs
Active Manual Wheelchairs Teal uses a Tilite chair with a Roho cushion 36
Slide 37: Wheelchair Seating & Positioning
Wheelchair Seating & Positioning Amy uses a Tilite chair with a Roho cushion 37
Slide 38: Leading positions, with opportunities for further growth, in attractive segments
Leading positions, with opportunities for further growth, in attractive segments Advanced Power Active Manual Adjustable Wheelchairs Wheelchairs Wheelchair Cushions 15% 20% 40% Market share Positions Global #1 US #2 Global #1 Market size (SEKm) 4,200 2,000 1,600 Market growth 3-4% 4-5% 3-4% Average
Slide 39: Complex rehab value chain, with the many stakeholders
Complex rehab value chain, with the many stakeholders Manufacturer Dealer Therapist/ patient Payer Clinician User • Product development • Billing payers Clinician • Approve prescribed need • Manufacturing • Distribution • Determine need • Reimburse product and • Product education to • Service & supp
Slide 40: Products are always reimbursed, and primarily from public systems
Products are always reimbursed, and primarily from public systems Sweden Germany USA Private Other insur- ance VA Public payer Public health CMS insurers • Public payer landscape • State-dominated and highly • ~80% of market covered by with tax funded insurance fragmented payer Medicare and Medicaid
Slide 41: Fantastic growth journey, accelerating the last 5 years
Fantastic growth journey, accelerating the last 5 years, with ~20% CAGR (7- 8% organic) 5-year perspective 3 257 +20% 2 931 2 053 1 742 1 562 2012 2013 2014 2015 LTM LTM 1609 1984 2015 41
Slide 42: EBITA outgrowing revenue, through improved gross margin and operating leverage
EBITA outgrowing revenue, through improved gross margin and operating leverage EBITA development (mSEK) 600 500 +23% 400 300 200 100 0 2012 2013 2014 2015 2016 LTM 42
Slide 43: Strong drivers for long-term demand growth
Strong drivers for long-term demand growth • Patient population grows faster than the general population (+3%) Demographics – Increased incidence of underlying diagnoses drive demand for our products and wealth • GDP growth drives improved reimbursement coverage and additional growth • Vast amount o
Slide 44: Four strategic initiatives
Four strategic initiatives Penetration Increase penetration on existing Innovation Make the core assortment more through products / functionality through in Core competitive and comprehensive Value Proofs better evidence (clinical and health Products • New mid-wheel drive platform economic), for exa
Slide 45: Products and Solutions that deliver quality of life and medical outcomes
Products and Solutions that deliver quality of life for Users and medical outcomes for Patients Quality of life Medical outcomes 45
Slide 46: HEART
HEART permobil
Slide 47: PERFORMANCE
PERFORMANCE permobil
Slide 48: LOVE
LOVE permobil
Slide 49: Agenda
Agenda permobil
Slide 50: Permobil
permobil