Slide 1: Interim Report January-June 2023
Interim Report January-June 2023 Johan Forssell, CEO 1 Helena Saxon, CFO
Slide 2: Strong performance and record net asset value
Strong performance and record net asset value Macro outlook remains uncertain Ensuring high flexibility is imperative 2
Slide 3: Adjusted NAV and TSR vs SIXRX, Q2 and YTD 2023
% Q2 2023 % YTD 2023 15 20 17 16 15 10 9 11 6 10 5 2 5 0 0 Adjusted NAV TSR SIXRX Adjusted NAV TSR SIXRX 3
Slide 4: Listed Companies - Performance
Listed Companies - Performance % Total Return AstraZeneca 30 ABB 15% Total return 9% (SIXRX 2%), mainly 21% • 25 driven by Atlas Copco and ABB 20 SEB 10% • Divestment of nearly 30 percent of 15 our holding in Accelleron, for total 10 SEK 546bn proceeds of approx. SEK 1bn Epiroc 5 8% Atlas Copco 0 24
Slide 5: Patricia Industries – Performance
Patricia Industries – Performance Sarnova 9% Advanced Laborie Instruments Total return, amounted to 11% (ex cash) 12% • 6% Permobil • Sales growth for the major subsidiaries amounted to 22% 9% Three of which 13% organically in constant currency Scandinavia SEK 173bn 4% Piab • Adjusted EBITA grew 34%
Slide 6: Patricia Industries – EBITDA 12m rolling
Patricia Industries – EBITDA 12m rolling Sales: SEK 60bn EBITDA: SEK 14bn SEK m 4 500 14 000 4 000 12 000 3 500 10 000 3 000 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 Q3 19 Q4 19
Slide 7: Operating Performance
Operating Performance Value, Organic growth,% Margins, % Change vs. SEK bn Q2 2023 Q2 2023 Q2 2022 EBITDA 12.9 4.8 8.6 36 EBITA 11.1 5.2 EBITDA 16.2 2.8 16.1 17 EBITA 14.2 2.7 EBITDA 20.0 4.1 15.2 13 EBITA 16.3 4.0 EBITDA 28.4 1.2 77.5 6 EBITA 25.0 1.4 EBITDA 28.2 0.3 9.3 4 EBITA 24.5 0.0 EBITDA 32.
Slide 8: Activities during the quarter
Antiseptics Activities during the quarter 3% Gloves 13% Group • Organic sales growth amounted to 6 percent in constant currency, driven by Wound Care and ORS. Share of sales, last 12 months Operating • The EBITA margin increased, driven by sales growth and lower logistics Wound (June 30, 2023) Room
Slide 9: Investments in EQT
Investments in EQT Performance EQT AB Fund investments Net annual cash flow to Investor Total return 3% Total return -1% Reported value growth 8% SEK m 8 000 Net cash flow Outstanding commitment 6 000 Launched Nexus, SEK 0.5bn to Investor EQT’s first strategy for SEK 24.4bn 4 000 individual investor
Slide 10: Driving value creation
Driving value creation Strong performance during the second quarter • Record net asset value • Strong outperformance in Listed Companies • Double-digit organic growth and strong profit growth in Patricia Industries Continue to future-proof our companies to drive sustainable profit growth Well prepar
Slide 11: Interim Report January-June 2023
Interim Report January-June 2023 Helena Saxon, CFO 11
Slide 12: Adjusted Net Asset Value
Adjusted Net Asset Value 16% Average annual 773 growth, SEK bn, with dividend adjusted added back, net asset value 5 years June 30, 2023 900 (SIXRX 11%) 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 & li
Slide 13: Total Return by Business Area
Total Return by Business Area 2023 Q2 % 12 11% 10 9% 9% 8 6 4 3% 2 0 Listed Companies Patricia Industries Investments in EQT Total 13
Slide 14: Listed Companies
Listed Companies SEK 546 market value bn 69% of total adjusted assets
Slide 15: Listed Companies – Contribution to NAV
Listed Companies – Contribution to NAV TSR XX% SIXRX XX% TSR 9% 2023 Q2 SIXRX 2% SEK m 25 000 20 000 15 000 10 000 5 000 0 -5 000 15
Slide 16: Patricia Industries
Patricia Industries SEK 173 bn adjusted market value 22% of total adjusted assets
Slide 17: Patricia Industries – Drivers of Estimated Market Values
Patricia Industries – Drivers of Estimated Market Values SEK bn Total Return 11% (10% incl. cash) 185 Main drivers Earnings growth Currency impact Multiple expansion Cash flow 168 March 31, 2023 June 30, 2023 17
Slide 18: Patricia Industries – Change in Estimated Market Values
Patricia Industries – Change in Estimated Market Values SEK m Estimated market value change Distributions/proceeds 1 636 218 171 14 8 185 005 1 782 (30) (106) (487) 2 228 2 502 8 838 168 231 Q1 2023 Mölnlycke Sarnova BraunAbility Permobil Laborie Advanced Three Vectura Piab Atlas Financial Patricia
Slide 19: Patricia Industries – Change in Estimated Market Values
Patricia Industries – Change in Estimated Market Values SEK m Estimated market value change Distributions/proceeds 1 636 218 171 14 8 185 005 1 782 (30) (106) (487) 2 228 2 502 8 838 168 231 Q1 2023 Mölnlycke Sarnova BraunAbility Permobil Laborie Advanced Three Vectura Piab Atlas Financial Patricia
Slide 20: Patricia Industries – Change in Estimated Market Values
Patricia Industries – Change in Estimated Market Values SEK m Estimated market value change Distributions/proceeds 1 636 218 171 14 8 185 005 1 782 (30) (106) (487) 2 228 2 502 8 838 168 231 Q1 2023 Mölnlycke Sarnova BraunAbility Permobil Laborie Advanced Three Vectura Piab Atlas Financial Patricia
Slide 21: Financial position
Financial position
Slide 22: Leverage in the Lower End of the Range, June 30, 2023
Leverage in the Lower End of the Range, June 30, 2023 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: Average Annual Total Return, June 30, 2023
Average Annual Total Return, June 30, 2023 % 35 30 25 20 15 10 5 0 YTD 1 year 5 years 10 years 20 years Investor B SIXRX Return requirement 23 23
Slide 24: Financial Calendar
Financial Calendar Viveka Hirdman-Ryrberg 2023-10-19 Head of Corporate Communication & Interim Management Statement Sustainability January-September 2023 +46 70 550 3500 2024-01-19 Viveka.hirdman-ryrberg@investorab.com Year-End Report 2023 2024-04-18 Interim Management Statement January-March 2024 2
Slide 25: Appendix
Appendix 25
Slide 26: Activities during the quarter
Antiseptics Activities during the quarter 3% Gloves 13% Group • Organic sales growth amounted to 6 percent in constant currency, driven by Share of sales, Wound Care and ORS. Wound last 12 months Operating • The EBITA margin increased, driven by sales growth and lower logistics (June 30, 2023) Room
Slide 27: Activities during the quarter
Activities during the quarter Negative impact from transaction and integration costs related to Clinical Negative impact from Innovations transaction costs related to • Organic sales growth amounted to 2 percent in constant currency. Growth Pelvalon and OptilumeTM was driven by the GI (Gastrointesti
Slide 28: Activities during the quarter
Negative impact Negative impact from transaction costs transaction from costs related related Negative impact from transaction costs related to Allied 100 acquisition, Activities during the quarter to Digitech to Digitech acquisition acquisition earn-out payment and integration costs related to Digi
Slide 29: Activities during the quarter
Activities during the quarter • Organic sales growth amounted to 13 percent in constant currency, supported by all regions. Aftermarket services, which is a prioritized area for Permobil, continued to report high growth. SEK m % 1 800 30 • The EBITA margin increased driven by operating leverage and
Slide 30: Activities during the quarter
Negative impact Activities during the quarter Negative impact from costs related to from costs related to Artel acquisition • Organic sales growth declined by 1 percent in constant currency and Solentim acquisition continued to be impacted by soft demand and a strong prior year comparison for instru
Slide 31: Activities during the quarter
Activities during the quarter Negative impact from costs related to Negative Negative impact impact • Organic sales growth amounted to 4 percent in constant currency, driven by from from write-down write-down and and TAWI acquisition transaction transaction costs costs Vacuum Automation and Vacuum C
Slide 32: Activities during the quarter
Activities during the quarter • Organic sales growth amounted to 36 percent in constant currency, led by strong demand across the product portfolio. SEK m % • The acquisitions of Q’Straint and the ProMaster wheelchair-accessible 350 14 vehicle conversion business are performing well. 300 12 • The EB
Slide 33: Activities during the quarter
Activities during the quarter • Total sales growth amounted to 9 percent, mainly driven by rent increases Grand Hôtel property divested, last quarter with due to annual indexation. revenues from Grand Hôtel SEK m % • The EBITDA margin decreased mainly driven by one-time costs. 100 80 • Vectura signe
Slide 34: Activities during the quarter
Activities during the quarter • Organic sales declined 6 percent in constant currency due to soft market demand. SEK m % • The EBITA margin decreased, mainly driven by one-time costs. 120 60 • Atlas Antibodies released a set of new monoclonal antibodies, 100 50 complementing the portfolio for cancer
Slide 35: Activities during the quarter
Activities during the quarter • The subscription base increased by 59,000, of which 38,000 in Sweden and 21,000 in Denmark. Three Sweden reached a milestone with 2.5 million subscriptions. SEK m % 3 500 70 • Service revenue increased by 11 percent, driven by a larger customer base 3 000 60 as well a