Investor Ab Class A · OMXSTO:INVE_A
Investor Ab Class A — Q1 2023 Earnings Presentation
61 slides from Investor Ab Class A's earnings presentation, April 2023
Slide 1: Interim Management Statement January-March 2023
Interim Management Statement January-March 2023 Johan Forssell, CEO 1 Helena Saxon, CFO
Slide 2: Globally, many challenges remain
Globally, many challenges remain Investor and our companies are well prepared to manage different scenarios Strong start of the year for Investor 2
Slide 3: Q1 2023
Q1 2023 % 15 7% Adjusted Net Asset Value growth 9% Total Shareholder Return 10 5 (9% SIXRX) 0 Adjusted NAV TSR SIXRX 3
Slide 4: Listed Companies
Listed Companies Performance Engaged ownership to future-proof our companies Portfolio New Initiatives to improve Total return 8% management Technology climate footprint ABB continued to adjust Epiroc landed its largest Wärtsilä has SIXRX return index 9% its portfolio through the automation order ev
Slide 5: Patricia Industries
Patricia Industries Performance Engaged ownership to future-proof our companies New Initiatives to improve Add-on Total return 13% Technology climate footprint acquisitions Sales growth 22% Permobil launched a new -24% CO2e emissions Piab acquired French electronics platform Patricia Industries comp
Slide 6: Attractive Add-on Acquisitions in Line with Strategy
Attractive Add-on Acquisitions in Line with Strategy 2022 Sales EUR 23m, EBITDA EUR 5m 2022 Sales EUR 6m, EBITDA EUR 1m Suction cups for plastics, Complements current portfolio within intelligent vacuum pumps additive manufacturing Strengthens presence in Additive manufacturing a strategic automotiv
Slide 7: A Great Platform for continued Profitable Growth
A Great Platform for continued Profitable Growth Strategy focused around four areas • Key segment focus • Geographic expansion • Strengthened product offering 330 11% • Enhanced aftermarket and service 18% -4% Organic growth, constant currency -4% 2 620 2 450 1 738 1 526 1 255 1 267 2018 2019 2020 2
Slide 8: Patricia Industries – EBITDA 12m rolling
Patricia Industries – EBITDA 12m rolling Sales: SEK 56.9bn EBITDA: SEK 13.0bn 6 companies SEK SEK m >1bn EBITDA 4 000 14 000 3 500 12 000 3 000 10 000 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
Slide 9: Operating Performance
Operating Performance Value, Organic growth Margins, % Change vs. SEK bn Q1 2023 % Q1 2023 Q1 2022 EBITDA 28.3 1.9 68.6 13 EBITA 25.0 2.4 EBITDA 28.5 -0.8 Adj. EBITA margin 9.3 12 EBITA 25.1 -0.8 flat at 27% EBITDA 13.1 3.3 6.4 11 EBITA 11.1 3.4 EBITDA 13.7 0.0 13.6 10 EBITA 11.8 0.0 EBITDA 18.0 2.1
Slide 10: Investments in EQT
Investments in EQT Performance EQT AB Fund Net annual cash flow investments SEK m to Investor 8 000 Total return -4% Total return -5% Reported value growth -2% 6 000 Outstanding commitment 4 000 SEK 2.7bn Net cash flow SEK -0.7bn to Investor SEK 24.3bn 2 000 0 2013 2014 2015 2016 2017 2018 2019 2020
Slide 11: Deliver on our ESG Targets – A strategic Priority
Deliver on our ESG Targets – A strategic Priority Business Climate & Diversity & Ethics & Resource Inclusion Governance Efficiency 11
Slide 12: Deliver on our ESG Targets – A strategic Priority
Deliver on our ESG Targets – A strategic Priority Outcome 2022 Climate & Resource Efficiency 100% -57% 63% of our companies CO2e emissions of our companies have set targets from our have targets for aligned with the companies’ scope scope 3 emissions Paris Agreement 1 and 2 since 2016 12
Slide 13: Priorities 2023
Priorities 2023 Manage the current market environment Continue to future-proof our companies to drive sustainable profit growth Use financial strength to capture investment opportunities 16
Slide 14: Interim Management Statement January-March 2023
Interim Management Statement January-March 2023 Helena Saxon, CFO 14
Slide 15: Adjusted Net Asset Value
Adjusted Net Asset Value 16% Average annual 724 growth, SEK bn, with dividend adjusted added back, net asset value 5 years March 31, 2023 900 (SIXRX 12%) 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 & l
Slide 16: Total Return by Business Area
Total Return by Business Area 2023 Q1 % 14 13% 12 10 8% 8 7% 6 4 2 -4% 0 -2 -4 -6 Listed Companies Patricia Industries Investments in EQT Total 16
Slide 17: Listed Companies
Listed Companies SEK 507 market value bn 69% of total adjusted assets
Slide 18: Listed Companies
18 2023 Q1 2 000 4 000 6 000 8 000 10 000 12 000 14 000 -6 000 -4 000 -2 000 0 ABB Saab Atlas Copco Epiroc AstraZeneca Sobi Husqvarna Wärtsilä Listed Companies Electrolux Pro Accelleron Ericsson Electrolux Contribution to NAV SEB Nasdaq 0 10 30 40 50 60 20 -20 -10 Saab Electrolux Pro Husqvarna ABB W
Slide 19: Patricia Industries
Patricia Industries SEK 156 bn adjusted market value 21% of total adjusted assets
Slide 20: Patricia Industries – drivers in Estimated Market Values
Patricia Industries – drivers in Estimated Market Values SEK bn Total Return 13% (12% incl. cash) 168 Main drivers Earnings growth and Multiple expansion 150 Dec 31, 2022 March 31, 2023 20
Slide 21: Patricia Industries – Change in Estimated Market Values
Patricia Industries – Change in Estimated Market Values SEK m Estimated market value change Distributions/proceeds 666 121 966 195 168 231 1 182 (93) (129) 1 418 (723) 1 772 2 784 9 753 150 317 Q4 2022 Mölnlycke Laborie Permobil Piab BraunAbility Sarnova Advanced Atlas Vectura Financial Three Patric
Slide 22: Financial position
Financial position
Slide 23: Leverage in the Lower End of the Range, March 31, 2023
Leverage in the Lower End of the Range, March 31, 2023 AA-/Aa3 Ratings S&P/ Moody’s % 20 15 10 5 0 -5 2019 2020 2021 2022 2023 Leverage target range Leverage 23
Slide 24: Average Annual Total Return, March 31, 2023
Average Annual Total Return, March 31, 2023 % 25 20 15 10 5 0 -5 1 year 5 years 10 years 20 years Investor B SIXRX Return requirement 24 24
Slide 25: investor
investor
Slide 26: Mölnlycke in Investor Q1 webcast
Mölnlycke in Investor Q1 webcast 21 April 2023
Slide 27: Zlatko Rihter CEO
Zlatko Susanne Rihter Larsson CEO CFO & EVP Global IT, Business Services and Indirect Procurement 25+ years of experience of growing businesses within MedTech 25+ years of business experience President and CEO of CellaVision, 2015–2020. Previous positions: Group CFO at Gunnebo, Previous positions in
Slide 28: A world-leading medical products and solutions company
A world-leading Will be MDR* medical products ready by 2023 and solutions *Medical Device Regulations company
Slide 29: This is Mölnlycke
MÖL NLYCKE AT A GL ANCE Our Business Areas This is Mölnlycke Global HQ 39 8,775 in Gothenburg, Sweden commercial entities employees worldwide 3% 99% 100 14% Wound Care owned by Investor AB countries where Mölnlycke is present ORS 25% 58% Gloves Wound Care Operating Room 1849 the year Mölnlycke was f
Slide 30: Macro & Strategy
Macro & Strategy *% Molnlycke’
Slide 31: Global healthcare trend: Professionals are struggling to cope with the immense pressure
Global healthcare trend: Professionals are struggling to cope with the immense pressure Healthcare professionals are experiencing The consequences: psychiatric symptoms at surprising rates, including posttraumatic stress disorder (38%), • Tasks towards less skilled and experienced will depression (7
Slide 32: Mölnlycke have exceptionally inspiring customer challenges that need to be resolved
Mölnlycke have exceptionally inspiring customer challenges that need to be resolved… Wound Care Operating Room How can we secure Solutions that all healthcare How can we reduce professionals that are wasted time before, during confronted with chronic and after surgeries and wound patients know there
Slide 33: Unprecedented challenges and new opportunities
Unprecedented challenges and new opportunities • Supply disturbances and lead time constrains drive cost • High inflation and interest rates • Ukraine war creates uncertainty of macro trends going forward • Energy challenges, mostly in Europe • Sustainability becoming top of the agenda 2022 2023 202
Slide 34: Our strategic direction is set and based on global transformation trends
ST RAT EGIC DIRECT ION Our strategic direction is set and based on global transformation trends and ethnographic studies
Slide 35: We have:
ST RAT EGIC DIRECT ION We have: listened to talked to visited conducted ~ 150 received > 125 > 160 > 65 hospitals hours > 1,000 doctors nurses and clinics of ethnographic survey studies responses
Slide 36: Focused strategy execution
Focused strategy execution Established: • Corporate priorities addressing global transformational trends • Strategic direction set for our Business Areas with strong innovation agendas in place • Clear governance model in place to support strategy execution Now accelerating innovation and business d
Slide 37: Each Business Area is on a mission
Each Business Area is on a mission Wound Care Operating Room Solutions Gloves Antiseptics Deliver innovative and Create an ecosystem Deliver innovative Prevent infections across intuitive solutions for of solutions and services and sustainable solutions the patient’s journey prevention, faster heali
Slide 38: Financial performance
Financial performance *&% Molnlycke
Slide 39: Our sales and organic growth 2018-2022
FINANCIAL PERFORMANCE Our sales and organic growth* 2018 - 2022 2.7% 8.4% 3.9% 4.3% EUR million 1,828 1,452 1,542 1,793 1,686 2018 2019 2020 2021 2022 COVID-19 related sales of personal protective equipment (PPE). Revenue from 2020 and 2021 was positively impacted by one-off orders of PPE. Excluding
Slide 40: EBITDA 2018–2022
FINANCIAL PERFORMANCE EBITDA 2018–2022 600 31% 30% 500 29% 26% 29% 29% In 2022, 29% material handling and 400 sourcing costs were 130 EUR million MEUR higher than in 2020, 300 27% i.e 7% EBITDA margin - partly offset by sales growth, 200 a general 25% cost consciousness 100 and FX. 418 451 536 486 4
Slide 41: Net sales Q1 2023 vs Q1 2022
FINANCIAL PERFORMANCE Net sales Q1 2023 vs Q1 2022 • Net sales of EUR 479 million +13% • Organic sales growth amounted to 13% in constant currency EUR million 426 479 • Mainly driven by Wound Care and Operating Room Solutions • Overall improved supply chain situation in all Business Areas 2022 2023
Slide 42: Net sales and sales growth Q1 2023 vs Q1 2022 by Business Area
FINANCIAL PERFORMANCE Net sales and sales growth Q1 2023 vs Q1 2022 by Business Area Sales growth* 14% 2023/2022 281 246 Sales growth* 16% 2023/2022 Sales growth* EUR million 127 4% 2023/2022 Sales growth* 112 6% 2023/2022 56 59 11 12 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 W
Slide 43: Mölnlycke performance Q1 2023 – highlights by Business Area
Mölnlycke performance Q1 2023 – highlights by Business Area Wound Care Organic sales growth: 14% in constant currency • Strong underlying demand in all regions • Improved staffing situation in the US Wound Care Gloves manufacturing plant Organic sales growth: 4% in constant currency • Increased outp
Slide 44: EBITDA Q1 2023 vs Q1 2022
FINANCIAL PERFORMANCE EBITDA Q1 2023 vs Q1 2022 EBITDA improvement from EUR 112 million to 136, 28.3% giving an EBITDA margin of 28.3% 26.4% • Strong organic sales growth together with positive sales mix: EUR 38 million • Improved material handling and sourcing: EUR 6 million • Increased cost of pro
Slide 45: EBITDA Q1 2023 vs Q1 2022 by Business Area
FINANCIAL PERFORMANCE EBITDA Q1 2023 vs Q1 2022 by Business Area EBITDA margin >40% Q1 2023 EBITDA margin EBITDA margin >5% >15% EBITDA margin Q1 2023 Q1 2023 <5% Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Wound Care ORS Gloves Antiseptics
Slide 46: Mölnlycke – key takeaways
Mölnlycke – key takeaways ✓ Long track record of profitable, solid organic growth – outperforming competition ✓ Strong strategy in place, truly based on ethnographic studies and solid geographic expansion ✓ Customer insight-driven strategy with customer centricity, sustainability and digitalisation
Slide 47: Mölnlycke
Molnlycke’
Slide 48: investor
investor
Slide 49: Financial Calendar
Financial Calendar Viveka Hirdman-Ryrberg Head of Corporate Communication & 2023-05-03 Sustainability Annual General Meeting +46 70 550 3500 2023-07-17 Viveka.hirdman-ryrberg@investorab.com Interim Report January-June 2023 2023-10-19 Interim Management Statement January-September 2023 Magnus Dalhamm
Slide 50: Appendix
Appendix investor
Slide 51: Activities during the quarter – Mölnlycke
Antiseptics 3% Gloves Activities during the quarter 14% Group • Organic sales growth amounted to 13 percent in constant currency, mainly driven by Wound Care and ORS, with an overall improved supply chain situation in all Share of sales, Wound Operating business areas. last 12 months Care 58% (Mar.
Slide 52: Activities during the quarter
Negative impact from transaction and integration Negative impact from transaction and integration costs related to Clinical Innovations Negative impact from Activities during the quarter costs related to Cogentix transaction costs related to Pelvalon and OptilumeTM • Organic sales growth amounted to
Slide 53: Activities during the quarter
Negative impact from transaction Negative impact from transaction costs related costs related to Allied 100 acquisition, earn-out payment and integration Activities during the quarter to Digitech acquisition costs related to Digitech acquisition • Organic sales grew by 10 percent in constant currenc
Slide 54: Activities during the quarter – Permobil
Activities during the quarter • Organic sales growth amounted to 9 percent in constant currency, supported by all regions. SEK m % • Last year’s EBITA margin was negatively impacted by a strategic 1 800 30 development project. Adjusting for this, the margin still increased, primarily 1 600 driven by
Slide 55: Activities during the quarter
Negative impact Activities during the quarter from costs related to Negative impact from costs related to Artel acquisition • Organic sales growth declined by 9 percent in constant currency, adversely Solentim acquisition impacted by the combination of continued soft demand and a strong last USD m %
Slide 56: Activities during the quarter – Piab
Activities during the quarter Negative impact Negative impact • Organic sales growth amounted to 12 percent in constant currency, driven Negative impact from from write-down from write-down and and write-down and by all regions and divisions. Negative impact transaction transaction costs costs trans
Slide 57: Activities during the quarter
Activities during the quarter • Organic sales growth amounted to 11 percent in constant currency, led by strong demand in the commercial and lifts products, as supply chain SEK m % constraints that negatively impacted sales in the corresponding period last 300 14 year eased. 12 • The EBITA margin im
Slide 58: Activities during the quarter
Activities during the quarter Grand Hôtel property • Total sales growth amounted to 13 percent, mainly driven by rent indexation. divested, last quarter with revenues from Grand Hôtel • The profit margin increased due to capitalization of costs related to SEK m % development projects. 100 80 90 • A
Slide 59: Activities during the quarter – Atlas Antibodies
Activities during the quarter • Organic sales growth amounted to 7 percent in constant currency. • The EBITA margin remained unchanged compared to last year. SEK m % 120 60 • A new cell control targeting a specific gene mutation, relevant in diagnosis of several cancers, was released. 100 50 • Peter
Slide 60: Activities during the quarter – Three Scandinavia
Activities during the quarter • The subscription base increased by 35,000, of which 23,000 in Sweden and Negative impact 12,000 in Denmark. from VAT rulings SEK m. % • Service revenue increased by 10 percent. EBITDA declined by 3 percent, 3 500 80 negatively impacted by higher energy expenses, netwo
Slide 61: Deliver on our ESG Targets – A strategic Priority
Deliver on our ESG Targets – A strategic Priority Outcome 2022 Business Ethics & Governance Climate & Resource Efficiency Diversity & Inclusion Portfolio companies Portfolio companies’ scope 1 and 2, tonnes CO2e Diversity in portfolio 96% -57% 2 500 000 2 000 000 conduct regular anti- corruption tra