Investor AB Class A · OMXSTO:INVE_A
Investor AB Class A — Investor Day (March 2017)
20 slides from Investor AB Class A's investor day presentation, Mar 30, 2017
Slide 1: Helena Saxon, CFO
Helena Saxon CFO
Slide 2: Clear strategy to build on going forward
Clear strategy to build on going forward Grow Net Asset Value Generate an attractive Operate efficiently total shareholder return Pay a steadily rising dividend 2
Slide 3: Clear strategy to build on going forward
Clear strategy to build on going forward Grow Net Asset Value Generate an attractive Operate efficiently total shareholder return Pay a steadily rising dividend 3
Slide 4: Valuation methodology overview
Valuation methodology overview LISTED CORE Listed shares at current share prices INVESTMENTS Unlisted holdings at multiple or third party valuation Listed shares at share price Subsidiaries by acquisition method Partner owned investments by equity method Financial Investments at multiple valuation a
Slide 5: Supplementary information
Supplementary information Improving transparency and facilitate evaluation by… …providing estimated market values for wholly-owned subsidiaries and partner-owned investments Change implemented from Interim Management Statement January-March 2017 5
Slide 6: Where will you find it?
Where will you find it? Net asset value overview As of Q4 2016 As of Q1 2017 Market value Market value Book value + Book value Estimated market value Increased transparency and consistency 6
Slide 7: Increased importance of unlisted holdings
Increased importance of unlisted holdings 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 7% 14% 10 years since we started building the unlisted portfolio 7
Slide 8: Analysts’ estimated values vs. reported values
Analysts’ estimated values vs. reported values Based on current consensus estimates SEK bn. Reported values, Dec. 31, 2016 Consensus adjusted, Dec. 31, 2016 51.8 Subsidiaries and partner-owned investments 21.1 Reported book value Analyst consensus 7.8 5.4 6.2 4.9 4.9 3.9 3.9 3.9 3.1 3.1 2.2 2.2 0.2
Slide 9: Mölnlycke – strong performance
Mölnlycke – strong performance Sales, EUR m. EBITDA margin Net debt, EUR m. Leverage 1 600 31% 2 250 10 2 000 9 1 400 30% 8 1 750 1 200 29% 7 EUR 870m. 1 500 distributed to 1 000 Patricia Industries 6 28% 1 250 800 5 27% 1 000 4 600 750 26% 3 400 500 2 200 25% 250 1 0 24% 0 0 2007 2008 2009 2010 201
Slide 10: Mölnlycke 2010-2016 reported value development
Reported value development – Mölnlycke 2010-2016 SEK bn. 1.6 4.1 19.2 8.3 4.1 21.1 6.4 13.6 Value, Dec. Invested EBITDA Depreciation Amortization Distributions Net interest, Value, Dec. 31, 2010 PPA taxes, FX & 31, 2016 Other 10
Slide 11: Mölnlycke – investment case
Mölnlycke – investment case SEK m. 60 000 ~6x net investment 50 000 40 000 30 000 20 000 10 000 0 -10 000 Gross investment Distributions/divestments Net investment Analyst consensus value 11
Slide 12: Clear strategy to build on going forward
Clear strategy to build on going forward Grow Net Asset Value Generate an attractive Operate efficiently total shareholder return Pay a steadily rising dividend 12
Slide 13: Operating efficiently
Operating efficiently Efficiency is key Continuous improvement is part of our culture Cost discipline to minimize leakage and maximize cash flow 13
Slide 14: Competitive and efficient cost structure
Competitive and efficient cost structure 0.16% of SEK m. total NAV 500 450 400 0.38% of PI total 350 assets 300 250 0.04% of Listed 200 Core 150 assets 100 50 0 Investor Listed Core Patricia Industries Investments SEK 465 m. management cost 2016, below 2015 guidance Cost efficient support structure,
Slide 15: Clear strategy to build on going forward
Clear strategy to build on going forward Grow Net Asset Value Generate an attractive Operate efficiently total shareholder return Pay a steadily rising dividend 15
Slide 16: Pay a steadily rising dividend
Pay a steadily rising dividend DPS, SEK 12 10 8 6 4 2 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016p 16
Slide 17: Proactive balance sheet management
Proactive balance sheet management > Funding to reflect long SEK m. Avg. maturity investment horizon 8 000 16 7 000 14 > Liquidity is key to financial 6 000 12 flexibility Average maturity 5 000 10 > Avoid financing under time or 4 000 8 other pressure 3 000 6 2 000 4 Providing financial flexibility
Slide 18: Leverage strategy stays firm
Leverage strategy stays firm > Strong balance sheet and rating % Leverage development 30 Maximum > Leverage policy intact 25 leverage 20 > Ample capacity to invest and 15 support our companies 10 Target range 5 0 -5 -10 Credit rating Standard & Poor’s AA- Moody’s Aa3 18
Slide 19: Financial Summary
Financial Summary Focus on true value creation and transparency Operate efficiently Ensure financial flexibility to support distribution and investments 19
Slide 20: Thank you
Thank you