Investor Ab Class A · OMXSTO:INVE_A
Investor Ab Class A — Q3 2003 Earnings Presentation
27 slides from Investor Ab Class A's earnings presentation, October 2003
Slide 1: Interim Report January – September 2003
Interim Report January – September 2003
Slide 2: Yearly stock market development
-60 -40 -20 0 20 40 60 80 100 % 19 0 19 1 0 19 4 0 19 7 10 19 1 Source: AFGX 19 3 1 19 6 1 19 9 2 19 2 2 19 5 2 19 8 31 19 3 19 4 3 19 7 4 19 0 1902 – September 2003 4 19 3 4 19 6 4 19 9 5 19 2 5 19 5 58 19 6 19 1 6 19 4 6 19 7 7 19 0 7 19 3 7 19 6 79 19 8 19 2 8 19 5 8 19 8 9 19 1 9 19 4 Yearly sto
Slide 3: Stock market performance
Stock market performance January - September, 2003 Important issues 140 • Pace of economic recovery • USD development NASDAQ 130 • Free trade/WTO 120 SAX S&P 500 110 100 88 Jan Feb Mar Apr May June July Aug Sept 2003 www.investorab.com
Slide 4: Summary
Summary January – September 2003 ü Positive Net Asset Value growth and total return for the Investor share ü Core Holdings – continued focus on profitability and strategic positioning ü New Investments – selective new investments and exits ü Costs in line with projections ü Good liquidity position w
Slide 5: Holdings per sector
Holdings per sector 1999 2003 December 31 September 30 Other Other Forest Healthcare Financial 6% Healthcare 7% Financial 7% 23% services 14% services 5% 36% 31% 22% 27% 22% Engineering Engineering Technology Technology www.investorab.com
Slide 6: Healthcare
Healthcare CORE HOLDINGS • Continued strong performance reported • Crestor launched in the U.S. • Promising research results for Exanta presented • Focus on operational and financial improvements • Approval of new dialyzer in the U.S. NEW INVESTMENTS • Positive development for Kyphon and ISTA Pharma
Slide 7: Technology
Technology CORE HOLDINGS • Improved cost structure • Stronger financial position • Åke Svensson new CEO since July 2003 • Strong order book but uncertainty regarding Swedish defense budget • Improved cost structure • Focus on developing core activities NEW INVESTMENTS • Tessera Technologies filed to
Slide 8: Technology – Hi3G/3
Technology – Hi3G/3 • New offerings launched for corporates and individuals in Sweden • Continued rollout in Sweden, launch in Denmark in October, license in Norway acquired • > 10,000 customers in Sweden ~ 520,000 customers worldwide (August) • Estimated capital requirement of SEK 4-5 bn. unchanged
Slide 9: Engineering
Engineering CORE HOLDINGS • Divestment of non-strategic compressor operation • Consolidation of brand portfolio • Convertible bond issued • Focus on core activities • Efficiency improvements in Rental Service • Strong profitability in Compressor Technique reported • Continued streamlining of product
Slide 10: Financial Services
Financial Services CORE HOLDINGS • Magnus Böcker new CEO • Acquisition of HEX finalized • 3C program continues • Strengthened market positions www.investorab.com
Slide 11: Priorities 2003
Priorities 2003 1. Actively work with each core holding: • Management • Profitability • Market positions 2. Support promising new investments and look for investment opportunities 3. Develop into a successful Scandinavian operator 4. Maintain financial flexibility and cost www.investorab.com
Slide 12: Financials
Financials
Slide 13: Net Asset Value
Net Asset Value September 30, 2003 December 31, 2002 SEK/share SEK m. SEK/share SEK m. Core Holdings 102 77 929 83 63 304 New Investments 16 12 472 16 12 860 Other Holdings 4 3 089 4 2 936 Other Operations 2 1 446 2 1 480 Other assets and liabilities 1 384 -2 -1 353 Total assets 125 95 320 103 79 22
Slide 14: Net Asset Value – change
Net Asset Value – change January – September 2003 SEK m. January 1, 2003 62 869 Surplus Dividend NAV P/L change paid change Core Holdings 1 513 14 716 16 229 New Investments -68 -139 -207 Other -858 142 -2 608 -3 324 Total 587 14 719 -2 608 12 698 September 30, 2003 75 567 www.investorab.com
Slide 15: Change in Net Asset Value (NAV)
Change in Net Asset Value (NAV) 2002 2003 Change SEK bn. Q4 Q1 Q2 Q3 Q1-Q3 NAV 63 59 69 76 Change, SEK bn. -4 +10 +7 +13 Change, % +20% www.investorab.com
Slide 16: Investor share
Investor share 2003 Q1-Q3 SIX SIXReturn Return Index Index19% 19% Total return 33% www.investorab.com
Slide 17: Changes in value – Core Holdings
Changes in value – Core Holdings January – September 2003 Share price SEK m. performance 2003 Ericsson 4 138 Ericsson 85% 2 253 AstraZeneca OMHEX 85% 2 228 ABB WM-data 70% Atlas Copco 1 793 ABB 70% 1 676 SEB Atlas Copco 34% Electrolux Electrolux 23% SEB 17% OMHEX Change in value Scania 16% Scania SE
Slide 18: Changes in value – Core Holdings
Changes in value – Core Holdings July 1, 2003 – September 30, 2003 Share price SEK m. performance Q3, 2003 2 332 Ericsson ABB 60% 1 955 ABB OMHEX 35% Atlas Copco Ericsson 31% AstraZeneca Atlas Copco 12% SEB Electrolux 7% WM-data 6% OMHEX SEB 4% Change in value Electrolux Saab AB 2% SEK 6 723 m. Saab
Slide 19: Core Holdings
Core Holdings Market Value – September 30, 2003 % of total Invested 2003 MV ASSET SEK/share SEK m. assets AstraZeneca 38 28 773 30% SEB 15 11 802 12% Ericsson 13 9 928 10% Atlas Copco 9 7 140 7% ABB 7 5 463 6% Gambro 5 3 638 4% Scania 5 3 493 4% Divested 2003 Electrolux 4 3 313 4% Ericsson 50 Saab A
Slide 20: New Investments
New Investments Contribution to Net Asset Value Jan. – Sept. 2003 Q1-Q3 SEK m. Q1 Q2 Q3 2003 Realized gain 40 156 122 318 Write-downs, net 168 -398 62 -168 Operating costs -74 -76 -68 -218 Result 134 -318 116 -68 Surplus change -195 -95 151 -139 Contr. to NAV -61 -413 267 -207 www.investorab.com
Slide 21: New Investments
New Investments Contribution to Net Asset Value – 1998-2003 Q1-Q3 1998- SEK m. 1998 1999 2000 2001 2002 2003 2003 Realized gain 709 2 399 3 004 524 297 318 7 251 Write-downs net -344 Write-downs, 14 -1 228 -2 802 -1 674 -168 -6 202 Operating costs -210 -249 -325 -336 -302 -218 -1 640 Result 155 2 16
Slide 22: New Investments
New Investments Market Value – September 30, 2003 % of total Invested 2003 MV ASSET SEK/share SEK m. assets IGC BMI Asia Neuronetics Investor Growth Capital (IGC) 10 7 842 8% FOI Corp. Micronic Pyrosequencing EQT 5 4 233 5% EQT ComHem Investor Capital Partners (ICP) 1 397 0% Total 1 407 Total 16 12
Slide 23: Other Holdings
Other Holdings Market Value – September 30, 2003 % of total Invested 2003 MV ASSET SEK/share SEK m. assets 3/Hi3G 3/Hi3G 2 1 621*) 2% Funds 1 933 1% Total 343 Other 1 535 0% Total 4 3 089 3% Divested 2003 Volvo Total 259 *) In addition: Loans of 1 294 (Other assets and liabilities) www.investorab.co
Slide 24: Leverage
Leverage SEK bn. Sept. 2003 Dec. 2002 Cash 12.4 5.4 Net debt -19.8 -16.4 Market value assets 95.3 79.2 Leverage 21% 21% www.investorab.com
Slide 25: Operating costs – Investor Group
Operating costs – Investor Group January – September 2003 Historical development By business area 740 624 Group 800 -1 6% Other Core 193 7% Holdings 600 Operations 174 17% 25% 400 547 Other 1% 200 450 435 Holdings 0 50% 2001 2002 2003 Jan-Sep Oct-Dec New Investments www.investorab.com
Slide 26: Net Asset Value
Net Asset Value 1983 – September 2003 SEK bn. 180 160 153 140 120 100 80 76 60 40 20 30 0 6 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 Sep 2003 www.investorab.com
Slide 27: Interim Report January – September 2003
Interim Report January – September 2003