Investor Ab Class A · OMXSTO:INVE_A
Investor Ab Class A — Q1 2024 Earnings Presentation
57 slides from Investor Ab Class A's earnings presentation, April 2024
Slide 1: Interim management statement January - March 2024
Interim management statement January - March 2024
Slide 2: Johan Forssell, President and CEO
Johan Forssell President and CEO
Slide 3: Q1 in summary
Q1 in summary • Adjusted net asset value SEK 915bn, +12%, all business areas contributed strongly • Total shareholder return of 15% compared to 8% for the SIXRX return index • Listed Companies outperformed the Swedish stock market • Good sales and profit growth in Patricia Industries • Value increas
Slide 4: Performance
Performance Q1 2024 15% 12% 8% Adj. NAV TSR SIXRX 4
Slide 5: Business areas
Business areas March 31, 2024 Total adjusted assets SEK 923bn Adjusted net asset value SEK 915bn Listed Companies Patricia Industries Investments in EQT SEK 625bn SEK 203bn SEK 93bn 68% of total assets 22% of total assets 10% of total assets 5
Slide 6: Listed Companies
Listed Companies SEK 625bn 68% of total assets 6
Slide 7: Highlights during the quarter – Listed Companies
Highlights during the quarter – Listed Companies • AstraZeneca presented positive clinical data, announced strategic acquisitions • Epiroc announced a split of Tools & Attachments division to ensure strong focus on profitable growth in each business line following the STANLEY Infrastructure acquisit
Slide 8: Performance – Listed Companies
Performance – Listed Companies Q1 2024 10% 8% Total return SIXRX 8
Slide 9: Patricia Industries
Patricia Industries SEK 203bn 22% of total assets 9
Slide 10: Highlights during the quarter – Patricia Industries
Highlights during the quarter – Patricia Industries • Good organic sales and EBITA growth • Strong growth in Laborie, supported by OptilumeTM urethral strictures • Scott Nelson appointed new CEO of BraunAbility • Strong total return 10
Slide 11: Valuation methodology for estimated market values
Valuation methodology for estimated market values Peer companies valuation, illustration with SIXRX SIXRX 120 Q4 2023 SIXRX: +14% 115 Weighted SIXRX: +1% April 16 110 105 100 18% 95 total return 90 Q1 2024 SIXRX: +8% Driven by 85 Weighted SIXRX: +11% + Multiple expansion + Earnings growth 80 May-23
Slide 12: Operating performance – Major subsidiaries
Operating performance – Major subsidiaries Q1 2024 10% 7% 7% Reported sales Organic sales Adjusted EBITA growth growth growth 12
Slide 13: EBITDA – Patricia Industries
EBITDA – Patricia Industries LTM sales: SEK 63.6bn EBITDA: SEK 15.6bn SEK m 4 500 16 000 4 000 14 000 3 500 12 000 3 000 10 000 2 500 8 000 2 000 6 000 1 500 1 000 4 000 500 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
Slide 14: Operating performance – Major subsidiaries
Operating performance – Major subsidiaries Value, Organic growth, % Margins, % Change vs. SEK bn Q1 2024 Q1 2024 Q1 2023 EBITDA 28.2 -1.1 23.7 21 EBITA 26.7 -0.8 EBITDA 21.8 3.8 17.5 10 EBITA 18.4 4.3 EBITDA 40.3 4.3 12.7 7 EBITA 38.2 4.2 EBITDA 15.1 1.4 19.3 6 EBITA 13.1 1.3 EBITDA 13.2 0.1 9.8 6 E
Slide 15: Mölnlycke
Mölnlycke Group • Organic sales growth amounted to 5 percent in constant currency, mainly driven by Wound Care and ORS, while Gloves declined. Antiseptics • The EBITDA margin increased compared to last year, supported by volume growth and 3% Gloves lower raw materials costs, partly offset by increas
Slide 16: Laborie
Laborie OptilumeTM Urethral strictures • Strong sales growth, exceeding plan • High gross margin product contributing significantly to group profitability OptilumeTM BPH (Benign Prostatic Hyperplasia) • Recently launched, encouraging initial commercial uptake Transaction and • Significant market pot
Slide 17: Investments in EQT
Investments in EQT SEK 93bn 10% of total assets 17
Slide 18: Performance
Performance 2024 Q1 SEK m Net Cash Flow to Investor Total return 12% 7 000 - EQT AB 19% 6 000 - EQT Funds 0% 5 000 4 000 Net cash flow to Investor SEK -1bn 3 000 2 000 1 000 0 -1 000 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 18
Slide 19: Strategic Priorities
Strategic Priorities +20% average annual growth, 5 years Grow net asset value (SIXRX 14%) +9% Pay a steadily rising dividend average annual growth, 10 years Climate & Resource Efficiency Diversity & Inclusion Deliver on our ESG targets Business Ethics & Governance 19
Slide 20: Strategic Priorities – Highlights
Strategic Priorities – Highlights Climate & Resource Efficiency Diversity & Inclusion Business Ethics & Governance 65% 37% 100% (2022: 57%) (2022: 33%) (2022: 96%) Reduction of Average share Share of our portfolio scope 1&2 GHG of females in companies that conduct emissions in portfolio companies’ r
Slide 21: Priorities 2024
Priorities 2024 Future-proof our companies to drive sustainable profit growth while never compromising on efficiency Use financial strength to capture investment opportunities 21
Slide 22: Driving Value Creation
Driving Value Creation Proven business model and clear strategic direction Portfolio of industry leaders with strong profitability and high exposure to secular growth Strong balance sheet and cash flow generation 22
Slide 23: Helena Saxon, CFO
investor Helena Saxon CFO
Slide 24: Grow net asset value
Grow net asset value 20% average annual growth, with dividend SEK 915bn, added back, 5 years adjusted net asset SEK bn (SIXRX 14%) value, March 31, 2024 1 000 800 600 400 200 0 2017 2018 2019 2020 2021 2022 2023 2024 -200 Listed companies Patricia Industries Investments in EQT Other assets & liabili
Slide 25: Total return by business area
Total return by business area Q1 2024 18% 12% 12% 10% Listed Companies Patricia Industries Investments in Total EQT 25
Slide 26: Listed companies – Total return and NAV contribution, Q1 2024
Listed companies – Total return and NAV contribution, Q1 2024 % SEK m 60 30 000 50 25 000 40 20 000 30 15 000 20 10 000 10 5 000 0 0 -10 -5 000 -20 -10 000 26
Slide 27: Patricia Industries - major drivers of estimated market values
Patricia Industries - major drivers of estimated market values Q1 2024 SEK 214bn (incl. cash) Multiples, EBITDA & SEK 184bn currency (incl. cash) Q4 2023 Q1 2024 27
Slide 28: Patricia Industries – change in estimated market values
Patricia Industries – change in estimated market values 1 247 598 360 229 1 732 214 025 2 843 2 987 -81 -2 235 3 143 4 013 15 614 Net distribution to Patricia Industries of SEK 1,920m 183 574 Q4 2023 Mölnlycke Sarnova Laborie Permobil Advanced BraunAbility Tre Piab Financial Atlas Vectura Patricia Q
Slide 29: Ensuring financial strength and maximizing investment capacity
Financial development Ensuring financial strength and maximizing investment capacity 29
Slide 30: Leverage in the lower end of the range
Leverage in the lower end of the range AA-/Aa3 ratings S&P/Moody’s % 20 15 10 5 0 2020 2021 2022 2023 2024 -5 Leverage target range Leverage 30
Slide 31: Debt maturity profile
Debt maturity profile Average maturity 10.6 years SEK m 8 000 7 000 6 000 5 000 4 000 3 000 2 000 1 000 0 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 31
Slide 32: Average annual total return, March 31, 2024
Average annual total return, March 31, 2024 % 35 30 25 20 15 10 5 0 YTD 1 year 5 years 10 years 20 years Investor B SIXRX Return requirement 32
Slide 33: investor
investor
Slide 34: Investor AB Q1 Presentation: Permobil Group
Investor AB Q1 Presentation: Permobil Group April 18th 2024 34 CONFIDENTIAL
Slide 35: Bengt Thorsson, CEO and President of Permobil Group
Bengt Thorsson CEO and President of Permobil Group 35 CONFIDENTIAL
Slide 36: Our foundation is from 1967, we focus on solving our users' needs
Our foundation is from 1967, we focus on solving our users’ needs “ Every person has the right to have his or her disability compensated as far as possible by aids with the same technical standard as those we all use in our everyday lives. Dr. Per Udden Founder - 1967 36 CONFIDENTIAL CONFIDENTIAL
Slide 37: We innovate for individuals
We don’t forget our past; we look to the future. What we do is innovate for individuals We support individuals to live their lives to the fullest by developing the world’s most advanced assistive technology solutions 37 CONFIDENTIAL CONFIDENTIAL
Slide 38: We make a difference every day by innovating for individuals
We make a difference every day by innovating for individuals Example of how we innovate for individuals The design and functionality of the Explorer Mini aid the development of… …verbal and non- …cognitive abilities verbal development …functional and motor …psychosocial skills activities …social inc
Slide 39: Industry trends
Industry trends 39 CONFIDENTIAL
Slide 40: GDP and healthcare spending correlate strongly with the market
The fundamental economic indicators of GDP and healthcare spending correlate strongly with the market for complex rehab technology The underlying demand is growing, our industry is projected to grow in line with global healthcare expenditures Directional Healthcare expenditure per capita (USD) 15 00
Slide 41: Multiple market archetypes, majority of business through dealer markets
Multiple market archetypes, the majority of our business go through dealer markets Distributor market Dealer market Tender market Permobil sells through distributors in In a majority of Permobil’s key markets we In tender markets Permobil collects markets where we don’t have our own sell through a d
Slide 42: 10 key trends shaping the future of complex rehab technology
10 key trends are driving change across the healthcare ecosystem and shaping the future landscape of complex rehab technology Consolidation across healthcare Shifting global demographics value chain Geopolitical and policy Evolving payment models and uncertainty value based models Changing sites of
Slide 43: World leader in complex rehab technology
World leader in complex rehab technology 43 CONFIDENTIAL
Slide 44: We offer products and services tailored to our users' needs
We offer products and services tailored to meet our users' needs Permobil’s portfolio Power Manual Power Assist Seating Services Wheelchairs Wheelchairs Device and Positioning 44 CONFIDENTIAL
Slide 45: Power Wheelchairs represent half of our business, the US is our largest market
Power Wheelchairs represent half of our business, the US is our largest market Permobil’s business split Power Wheelchairs represent ~50% of the business, We have a global footprint, the US is our largest market revenue split per product category Power Other1 Assist Manual Wheelchair Power Services
Slide 46: Accelerated growth under Patricia Industries' ownership
Accelerated growth under Patrica Industries’ ownership Permobil financial development since 2013 Our growth is a result of innovation, our go to market, a decentralized operating model and strategic acquisitions 13% CAGR Profit margin expansion of ~4 pp. since 2018 1984 1993 2003 2013 2023 Note: 46
Slide 47: Complementary acquisitions to drive expansion and innovation
Complementary acquisitions to drive geographical expansion, segment expansion, portfolio expansion and innovation Acquisition Acquisition of Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition of SDL iCare of Prairie of Orbit One of Max of Supportec of Panthera of Tilite (Distrib
Slide 48: Nearly all offerings across regions experienced YoY growth in 2023
Nearly all offerings across regions experienced YoY growth in 2023 Revenue growth 2023 vs 2022 AMER EMEA APAC Power Wheelchairs Power Wheelchairs Power Wheelchairs Manual Wheelchairs Manual Wheelchairs Manual Wheelchairs Power Assist Devices Power Assist Devices Power Assist Devices Seating & Positi
Slide 49: Resilient profitable growth every quarter since Q3 2022
Resilient profitable growth every quarter since Q3 2022 Financials per quarter reported Revenue, reported Adj. EBITA1 SEKm Reported SEKm 2 000 400 1 500 300 1 000 200 500 100 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Year 2021 2022 2023 2024 49 CONFIDENTIAL Note: 1 Adjusted for non-recurring items (i.e., M&A proj
Slide 50: We continue to deliver profitable growth in Q1 2024
We continue to deliver profitable growth in Q1 2024 Financial performance Q1 2024 Revenues Adj. EBITA Cash conversion SEKm SEKm (%) 1 483 273 75% +10% ~47% 55% 10% 1 313 185 45% 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2024 Q1 2024 Target Reported Special project 50 CONFIDENTIAL Note: EBITA adjustments inclu
Slide 51: Our plans for 2024 and beyond
Our plans for 2024 and beyond 51 CONFIDENTIAL
Slide 52: In 2024, we will launch our new R&D and production site in Sundsvall
In 2024, we will launch our new R&D and production site in Sundsvall Example of what we will do in 2024 We have collaborated with the Patricia Industries - owned Vectura in the design and development of our new site, our ambition is to be the leader in accessibility Sundsvall 52 CONFIDENTIAL
Slide 53: We continue to invest in R&D and accelerate our focus on digital capabilities
We continue to invest in R&D and accelerate our focus on digital capabilities Example of what we will do in 2024 We have shifted our new … and are now accelerating our efforts in product development from digitalization and connectivity mainly hardware mechanics… Chassis mechanics Electronics and mec
Slide 54: Beyond 2024, we will maintain our focus on our users
Beyond 2024, we will maintain our focus on our users and further strengthen our position as the market leader 2 Our users’ needs will We push the boundaries for Continue to deliver on be at the center of why and complex rehab technology growth and profitability what we do 54 CONFIDENTIAL
Slide 55: Innovating for individuals
» permobil Innovating for i individuals
Slide 56: investor
investor
Slide 57: Financial calendar
Financial calendar May 7, 2024 Annual General Meeting July 17, 2024 Interim Report January-June 2024 October 17, 2024 Jacob Lund Interim Management Statement Chief Communications & Sustainability Officer +46 725 60 21 57 January-September 2024 Jacob.lund@investorab.com January 23, 2025 Year-End Repo