Investor AB Class A · OMXSTO:INVE_A
Investor AB Class A — Q1 2020 Earnings Presentation
33 slides from Investor AB Class A's earnings presentation, April 2020
Slide 1: Interim Management Statement Q1 2020
Interim Management Statement Q1 2020 Johan Forssell, CEO 1 Helena Saxon, CFO
Slide 2: Covid-19
Covid-19 • Historic crisis for people and society with significant impact on the global economy • Focus on mitigating the negative impact on employees, customers, supply chains and production, securing liquidity and cash flow • Important to balance short-term cost efficiency and long-term investment
Slide 3: Q1 2020 Highlights
Q1 2020 Highlights -10% -11% 2.9 12% 11% Sustainability Adjusted NAV TSR SEK bn Adjusted EBITA Three focus Value change, growth (SIXRX -18%) invested in growth in major areas and Investments in Listed subsidiaries related targets EQT Companies defined 3
Slide 4: Listed Companies
Listed Companies 297 65% SEK bn of tot. adjusted assets 4
Slide 5: Listed Companies
Listed Companies 2.9 SEK bn invested #13 Listed company SEK 1.6bn SEK 1.1bn SEK 0.2bn 5
Slide 6: Engaged Ownership
Engaged Ownership Sobi AstraZeneca Ericsson Wärtsilä Initiated clinical study Tagrisso proven Continued Reorganization of for the treatment of effective against investments to Marine business to complications specific capture 5G simplify business associated with lung cancer opportunities structure c
Slide 7: Patricia Industries
Patricia Industries 118 26% SEK bn of tot. adjusted assets 7
Slide 8: Patricia Industries – Operational Development Q1 2020
Patricia Industries – Operational Development Q1 2020 1% 6 percent organic sales growth, % Reported EBITA growth 15% 14% 7% 5% 3% 12% Adjusted EBITA growth -2% -4% -17% • 6 percent service revenue growth Vectura Sarnova Mölnlycke Braun Ability Permobil Piab Laborie Grand Group • 6 percent adjusted E
Slide 9: Covid-19 Portfolio Implications Q2
Covid-19 Portfolio Implications Q2 Resilience Less resilience ~70% Estimated market value ~30% Estimated market value Patricia Industries Patricia Industries 9
Slide 10: Relative resilience in portfolio companies
Supported by Personal Protective Equipment, Supported by good demand for Gloves and Antiseptics respiratory products Supported by data usage and calls Relative resilience in and personal protective equipment Chronic and Prevention wound care 10
Slide 11: Fewer elective procedures within Urology and GI
Fewer elective Customer industries procedures within Limited customer access Limited customer access affected by lockdowns Urology and GI 11
Slide 12: Mölnlycke: advanced wound care and surgical solutions
A provider of advanced products for treatment and prevention of wounds and single-use surgical solutions Q1 2020 EUR m. % • Organic sales growth +7 percent in constant currency. 450 35 All regions grew, U.S. and Emerging Markets faster 400 than the group 30 350 25 • Wound Care +6 percent. Chronic an
Slide 13: Permobil: mobility and seating rehab solutions
A provider of advanced mobility and seating rehab solutions Q1 2020 SEK m. % • Organic sales growth +3 percent in constant currency 1 400 25 • Strong growth in APAC, North America grew slightly, 1 200 20 EMEA lower 1 000 15 • Q1 as a whole relatively unaffected by covid-19, 800 material impact durin
Slide 14: Laborie: urologic and gastrointestinal solutions
A provider of innovative capital equipment and consumables for the diagnosis and treatment of urologic and gastrointestinal disorders Q1 2020 Negative impact from transaction and integration USD m. costs related to Clinical Negative impact % • Organic sales growth -4 percent in constant currency fro
Slide 15: Sarnova: specialty healthcare distributor in the U.S.
A specialty distributor of healthcare products in the U.S. Q1 2020 USD m. Negative impact % • Organic sales growth +14 percent in constant from Ambu transition 200 18 currency 180 16 160 • Strong growth in both Emergency Preparedness and 14 140 Acute. Since March, significantly increased demand 120
Slide 16: BraunAbility: wheelchair accessible vehicles and lifts
A manufacturer of wheelchair accessible vehicles and wheelchair lifts Q1 2020 USD m. % • Organic sales growth +5 percent in constant currency 250 12 • Strong growth in Consumer and Commercial WAVs. 10 200 Since beginning of second quarter demand significantly depressed by covid-19-related lockdowns
Slide 17: Piab: gripping and moving solutions
A provider of gripping and moving solutions for automated manufacturing and logistics processes Q1 2020 SEK m. Negative impact % • Organic sales growth -2 percent in constant currency from transaction- 450 related costs 40 • Americas grew slightly, Europe and APAC declined 400 35 350 30 • Solid grow
Slide 18: Three Scandinavia: mobile voice and broadband
A provider of mobile voice and broadband services in Sweden and Denmark Q1 2020 Negative impact from VAT rulings SEK m. % • Subscription base +32,000 during the quarter 3 500 Negative impact 50 • Service revenue +6 percent 3 000 from VAT rulings 40 30 2 500 • EBITDA +6 percent excluding positive imp
Slide 19: Investments in EQT
Investments in EQT 41 9% SEK bn of tot. adjusted assets 19
Slide 20: Investments in EQT
Investments in EQT 11% Total value change (8% constant currency) 0.9 14% SEK bn 9% Net cash flow Total Return EQT AB Value change, investments in EQT funds 20
Slide 21: The Longer Perspective
The Longer Perspective 21
Slide 22: Sustainability – Future-Proofing Portfolio with Targets for 2030
Sustainability –Future-Proofing Portfolio with Targets for 2030 Business Ethics Climate & Resource Diversity & Governance Efficiency & Inclusion 100% 50% 40/60% Adhere to the Sustainability Reduce CO2e emissions Gender balance in management Guidelines compared to 2016 groups and boards of directors
Slide 23: Solid Q1 but tougher times ahead
Solid Q1 but Robust Will use tougher balance strong times ahead sheet and position liquidity wisely 23
Slide 24: Interim Management Statement Q1 2020
Interim Management Statement Q1 2020 Helena Saxon, CFO 24
Slide 25: 10-year Net Asset Value Development
10-year Net Asset Value Development SEK bn 500 450 438 Adjusted NAV 400 350 378 Reported NAV 300 250 200 150 100 50 0 10 11 12 13 14 15 16 17 18 19 20 25
Slide 26: Listed Companies Q1 2020 Summary
Listed Companies Q1 2020 Summary SEK bn TSR, % • Total contribution to NAV SEK -48bn 2 100 • Listed Companies TSR -14%, SIXRX -18% 1 0 86.6 Electrolux 2% Husqvarna 2% -1 Electrolux Wärtsilä 3% Professional 1% -2 50 Saab 3% Sobi 6% -3 Atlas Copco 23% -4 Nasdaq 6% -5 10.3 SEK -6 -2.1 -3.6 -4.2 Epiroc
Slide 27: Patricia Industries – Development in Q1 2020
Patricia Industries – Development in Q1 2020 -2% Total return, excl. cash (-1 percent including cash) - Negative impact from lower multiples 27
Slide 28: Patricia Industries – Change in Estimated Market Values
Patricia Industries – Change in Estimated Market Values Q1 2020 Summary Estimated market value change Incl. Incl. Distributions/proceeds SEK 4.3bn SEK 2.9bn equity injection transfer to 263 Investor (194) (206) (361) 2 515 1 097 1 006 (532) (583) (897) 136 381 -1% total 131 651 return (6 838) incl.
Slide 29: Major Drivers of Estimated Market Values Q1 2020
Major Drivers of Estimated Market Values Q1 2020 Est. market value Company change Q1 2020 vs. Major drivers Q4 2019 Higher profit and currency impacted positively, mitigated SEK 1.1bn by lower multiples Currency and higher profit impacted positively, mitigated SEK 1.0bn by lower multiples SEK -0.6bn
Slide 30: Financial Position as of March 31, 2020
Financial Position as of March 31, 2020 Percent • Leverage 4.7% (2.8% Dec 31, 2019) 15 10 • Net debt SEK 18.8bn 5 • Gross cash SEK 19.8bn 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 • Average maturity of the debt portfolio 10.8 years 15 15 15 15 16 16 16 16 17 17 17 17 18 18 18
Slide 31: Average Annual Total Shareholder Return
Average Annual Total Shareholder Return As of March 31, 2020 Percent 20 15 10 5 0 -5 -10 -15 -20 YTD 1 year 5 years 10 years 20 years Investor B SIXRX Return requirement 31
Slide 32: We create value for people and society
We create value for people and society by building strong and sustainable businesses
Slide 33: Financial Calendar Contact
Contact Financial Calendar Viveka Hirdman-Ryrberg Head of Corporate Communication & Sustainability 2020-07-17 Interim Report January – June 2020 +46 70 550 3500 Viveka.hirdman-ryrberg@investorab.com 2020-10-19 Interim Management Statement January – September 2020 2020-01-21 Magnus Dalhammar Year End