Investor Ab Class A · OMXSTO:INVE_A
Investor Ab Class A — FY2016 Earnings Presentation
28 slides from Investor Ab Class A's earnings presentation, Jan 31, 2017
Slide 1: Year-End Report 2016
Year-End Report 2016 CEO Johan Forssell 1
Slide 2: 2
2
Slide 3: 2016 summary
2016 summary > Investor fully supports Atlas Copco’s proposal to split into two market-leading companies > SEK 1.5 bn. invested in listed core investments Ericsson, Wärtsilä and Atlas Copco > Laborie new subsidiary within Patricia Industries > Net asset value, with dividend added back, up 13 percent
Slide 4: Listed Core Investments
Listed Core Investments Summary 2016 > Total return 14 percent (SIXRX 10 percent) > SEK 1.5 bn. invested in Ericsson, Wärtsilä and Atlas Copco > SEK 8.3 bn. in dividends received, up 8 percent 4
Slide 5: Listed Core Investments: Atlas Copco
Listed Core Investments Atlas Copco > Proposal to split the group into two focused, market-leading companies > Logical and natural next step > Strong platforms for continued profitable growth and long-term value creation > Investor fully supports the proposal > Both companies will be listed core inv
Slide 6: EQT
EQT Summary 2016 > High activity during the year > Value change +10 percent in constant currency > SEK 1.0 bn. net cash flow to Investor 6
Slide 7: Mölnlycke
Mölnlycke Performance 2016 % 20 Key priorities going forward > Invest in R&D, new products and +16% 16 complementary acquisitions 12 +11% > Grow in emerging markets 8 +6% 4 > Continued focus on operational excellence 0 Sales growth EBITA growth Growth in operating cash flow 7
Slide 8: Continued growth in 2016
Continued growth in 2016 Organic growth, constant currency % 18 17% 16 14 13% 12 10% 10 8 7% 6% 6% 6% 6 5% 4 2 0 Vectura BraunAbility Laborie Aleris Mölnlycke Permobil Grand Group 3 Scandinavia (service rev.) 8
Slide 9: Strong distributions in 2016
Strong distributions in 2016 SEK bn. Total SEK 3.9 bn.* 4 SEK 2.9 bn. 3 2 1 SEK 0.8 bn. SEK 0.2 bn. 0 Mölnlycke 3 Scandinavia Permobil *Excluding SEK 860 m. in proceeds from refinancing of Laborie 9
Slide 10: Strong cash flow
Strong cash flow Leverage 5.3 percent - essentially flat despite investments and dividend paid Main sources, SEK 13.2 bn. Main uses, SEK 13.8 bn. Distributions* from Mölnlycke, Acquisition of Permobil, 3 Scandinavia Laborie SEK 3.9 bn. SEK 4.7 bn. Net cash flow from EQT SEK 1.0 bn. Investments, Divi
Slide 11: Our strategy remains firm
Our strategy remains firm Total shareholder return > Grow Net Asset Value % 30 > Operate efficiently 25 > Pay a steadily rising dividend 20 15 10 Generating an attractive total shareholder return 5 0 1 year 5 years 10 years 20 years INVE B SIXRX 11
Slide 12: Financials
Financials January-December 2016 CFO Helena Saxon Presentation – January 31st, 2017
Slide 13: Financial highlights
Financial highlights Q4 2016 > Net Asset Value (NAV) amounted to SEK SEK bn. 350 300.1 bn, an increase of SEK 9.4 bn during 300 300 the quarter, corresponding to a change of 3% 250 > Total shareholder return (Investor B-share) 200 150 9% compared to 3% SIXRX Index 100 50 0 96 97 98 99 00 01 02 03 04
Slide 14: Contribution to Net Asset Value
Contribution to Net Asset Value Q4 2016 SEK m.
Slide 15: Listed Core Investments
Listed Core Investments Q4 2016 Contribution to NAV, Total return, SEK m. Investor (%) Atlas Copco 4 930 9.3 SEB 4 501 11.5 Saab 1 193 11.9 Wärtsilä 840 6.3 Nasdaq 610 5.4 Electrolux 589 5.7 Sobi 54 0.5 ABB -209 -0.5 SEK 248 354 m. 78 percent of Husqvarna -267 -3.7 total assets Ericsson -1 409 -13.1
Slide 16: EQT
EQT Q4 2016 Net cash flow SEK m. 5,000 SEK m. 4,000 3,000 2,000 1,000 SEK 13 996 m. 0 5 percent of 2011 2012 2013 2014 2015 2016 total assets Q4 2016 Draw-downs Proceeds to Investor SEK m. 976 873 A private equity group with portfolio companies in Northern and Eastern Europe, Asia and the U.S.
Slide 17: Patricia Industries
Patricia Industries Q4 2016 Contribution to NAV, SEK m. Mölnlycke 809 Financial Investments Vectura 296 SEK 10 024 m. SEK 21 067 m. Laborie 268 3 Scandinavia 184 BraunAbility 172 Grand Group -13 Aleris -38 SEK 5 446 m. SEK 54 806 m. Permobil -40 17 percent of Financial Investments 24 total assets SE
Slide 18: Mölnlycke
Mölnlycke Q4 2016 > Organic growth 4 percent in constant EUR m. % currency 1,600 35 1,400 > Both Wound Care and Surgical 30 1,200 25 1,000 contributed to growth 800 20 15 600 > U.S. and Europe continued to grow, 400 200 10 5 strong growth in Emerging Markets 0 2012 2013 2014 2015 2016 0 > EBITA marg
Slide 19: Laborie
Laborie Q4 2016 > Organic growth 6 percent in constant currency > Continued strong performance within urodynamic business > EBITA margin impacted by transaction costs. Underlying margin 25 percent > Refinancing completed, USD 100 m. distributed to Patricia Industries A leading provider of innovative
Slide 20: Aleris
Aleris Q4 2016 > Organic growth 3 percent in constant currency SEK m. % 10,000 7 > Growth mainly driven by Care in Norway 9,000 6 8,000 7,000 5 and Denmark 6,000 4 5,000 > EBITA margin increase mainly driven by 4,000 3 3,000 2 Curato 2,000 1,000 1 0 0 > Two of Aleris’ Swedish hospitals again 2012 20
Slide 21: Permobil
Permobil Q4 2016 > Organic growth 1 percent in constant SEK m. % currency 4,000 25 > U.S. sales somewhat lower than last year, 3,500 20 3,000 2,500 good growth in Europe 2,000 15 1,500 10 > EBITA margin largely unchanged 1,000 5 500 > SEK 200 m distributed to owners, of which 0 2012 2013 2014 2015 2
Slide 22: BraunAbility
BraunAbility Q4 2016 > Organic growth 13 percent in constant USD m. % currency 450 10 > Strong demand for commercial wheelchair 400 8 350 6 accessible vans (WAVs) and domestic lifts 300 4 > EBITA margin slightly higher despite 250 2 200 0 significant investments 2013 Sales 2014 2015 EBITDA, % 2016 E
Slide 23: Vectura and Grand Group
Vectura and Grand Group Q4 2016 SEK m. % Vectura 200 80 > Growth 16 percent 60 150 40 100 20 > Grand Hôtel, new Aleris facilities, Hamlet 50 0 -20 addition contributed to growth 0 -40 2013 2014 2015 2016 > New construction project initiated Sales EBITDA, % EBITA, % % Grand Group SEK m. 700 10 > Grow
Slide 24: 3 Scandinavia
3 Scandinavia Q4 2016 > The subscriber base decreased by 10,000 SEK m. % in the quarter 12,000 28 > Hallon and Oister continued to attract 10,000 27 26 8,000 25 subscribers 6,000 24 23 > Service revenue growth 7 percent 4,000 22 2,000 21 > EBITDA grew 9 percent 0 2012 2013 2014 2015 2016 20 Sales EB
Slide 25: Financial Investments
Financial Investments Q4 2016 > Continued focus on divestitures > Net proceeds amounted to SEK 292 m SEK 10 024 m. 3 percent of total assets Financial Investments consists of all former Investor Growth Capital (IGC) investments and other holdings
Slide 26: Leverage development
Leverage development > Leverage 5.3% (5.5%) as of December 31, % 30 Leverage development 2016 25 > Net debt amounted to SEK 16.8 bn 20 15 > Cash and readily available placements 10 5 amounted to SEK 16.7 bn 0 -5 > Average maturity of the debt portfolio 10.0 -10 years -15 > After the end of the quart
Slide 27: Financial calendar & Contact details
Financial calendar & Contact details Event Date Capital Markets Day March 30, 2017 Interim Management Statement, January – March 2017 April 25, 2017 Annual General Meeting May 3, 2017 Interim Report, January – June 2017 July 19, 2017 Contact details Stefan Stern +46 70 636 7417 Head of Corporate Rel
Slide 28: Q&A
Q&A