Investor AB Class A · OMXSTO:INVE_A
Investor AB Class A — FY2020 Earnings Presentation
39 slides from Investor AB Class A's earnings presentation, January 2021
Slide 1: Year-End Report 2020
Year-End Report 2020 Johan Forssell, CEO 1 Helena Saxon, CFO
Slide 2: A globally exceptional and challenging year
A globally exceptional and challenging year 2
Slide 3: 2020 – a Strong Year for Investor
2020 – a Strong Year for Investor Flexibility Listed Patricia Investments Strong Sustainability Companies Companies Industries in EQT financials Three focus adapting rapidly SEK 3.4bn in Acquisition of Strong value Strong cash flow, areas and to covid-19 add-on Advanced growth successful bond target
Slide 4: NAV growth and Total Shareholder Return 2020
14% 19% XX XX 15% Adj. Net Asset Value growth, Total Shareholder Return, Total Shareholder Return, 2020 2020 2020 Total avkastning 2019 TSR Marknaden Investor AB Investor AB SIXRX 4
Slide 5: Pay a Steadily Rising Dividend
Pay a Steadily Rising Dividend DPS, SEK 14 12 10 8 6 4 2 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020p 5
Slide 6: 4:1 Share Split Proposed
4:1 Share Split Proposed • Strong surge in number of shareholders last few years • Investor trades at a relatively high share price compared to most large-cap companies on Nasdaq Stockholm • A split could increase liquidity by providing access to a larger shareholder base 6
Slide 7: Listed Companies
Listed Companies 367 65% SEK bn of tot. adjusted assets 7
Slide 8: Key Activities in 2020
Key Activities in 2020 Electrolux Add-on Strategic Corporate People Sustainability Professional investments acquisitions structures New CEOs in Further Successful ABB Ericsson ABB several integration of spin-off Ericsson Atlas Copco Wärtsilä companies sustainability in Electrolux Pro. AstraZeneca Va
Slide 9: Patricia Industries
Patricia Industries 142 25% SEK bn of tot. adjusted assets 9
Slide 10: Key Activities in 2020
Key Activities in 2020 Advanced Strategic Three People Sustainability Instruments add-on Scandinavia New CEO in Stepped-up Clear leader in Strategic Mölnlycke efforts acquisitions attractive Sarnova divestment of segment Laborie passive network infrastructure 10
Slide 11: Patricia Industries – Total Sales and Profit 2015-2020
Patricia Industries – Total Sales and Profit 2015-2020 SEK m 45 000 14 000 40 000 12 000 35 000 10 000 30 000 25 000 8 000 20 000 6 000 15 000 4 000 10 000 2 000 5 000 0 0 2015 2016 2017 2018 2019 2020 Total EBITDA, major subsidiaries (RHS) EBITDA, 40% of Three Scandinavia (RHS) Total sales, major s
Slide 12: Patricia Industries – Operational Performance (Subsidiaries)
Patricia Industries – Operational Performance (Subsidiaries) % 30 20 10 0 -10 -20 -30 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Reported sales growth Organic sales growth Adj. EBITA growth (RHS) 12
Slide 13: Patricia Industries – Operational Development Q4 2020
Patricia Industries – Operational Development Q4 2020 Organic sales growth 14% Organic sales 41% growth in constant 24% 19% currency** 16% 12% 1% -10% -14% 29% Adj. EBITA growth** -22% -57% Mölnlycke Vectura Sarnova Advanced Piab Three Permobil Laborie Braun Grand Instruments Scandinavia* Ability Gr
Slide 14: Strong performance in Q4 2020
Organic growth Q4, % Margins, % Q4 2020 Q4 2019 41 EBITDA EBITA 31.4 28.8 28.3 24.5 EBITDA 9.9 10.9 19 EBITA 8.5 9.4 (Adjusted margin higher) 48.5 39.1 16 EBITDA EBITA 47.2 38.1 EBITDA 28.5 23.7 12 EBITA 24.6 20.8 Strong performance in Q4 2020 14
Slide 15: Good margin resilience
Organic growth Q4, % Margins, % Q4 2020 Q4 2019 7.9 7.9 -22 EBITDA EBITA 5.2 6.2 -14 EBITDA EBITA 31.2 27.5 28.2 26.4 (Adjusted margin lower) EBITDA 22.0 19.1 -10 EBITA 17.4 14.8 Good margin resilience 15
Slide 16: Mölnlycke: wound care and surgical solutions
A provider of advanced products for treatment and prevention of wounds and single-use surgical solutions EUR m. % Q4 2020 600 35 • Organic sales growth 41 percent in constant currency, 30 500 mainly driven by covid-19-related sales of PPE. Underlying business also performed well and grew organically
Slide 17: Permobil: mobility and seating rehab solutions
A provider of advanced mobility and seating rehab solutions SEK m. % Q4 2020 1 400 25 • Organic sales growth -10 percent in constant 1 200 currency. Covid-19 restrictions continued to negatively 20 1 000 impact customer access. Continued growth in APAC, while Americas and EMEA declined 800 15 • EBIT
Slide 18: Sarnova: specialty healthcare distributor
A specialty distributor of healthcare products in the U.S. Negative impact from acquisition USD m. costs % Q4 2020 250 18 • Organic sales growth 19 percent in constant currency, 16 with strong growth in both Emergency Preparedness 200 14 and Acute 12 150 • Adjusting for USD 4m in transaction costs r
Slide 19: Laborie: urology and gastroenterology
A provider of innovative capital equipment and consumables for the urology and gastroenterology markets Negative impact from USD m. Negative impact from transaction and integration % Q4 2020 80 transaction and integration costs related to Clinical 40 costs related to Cogentix Innovations 35 • Organi
Slide 20: Piab: gripping and moving solutions
A provider of gripping and moving solutions for automated manufacturing and logistics processes SEK m. Negative impact Q4 2020 500 from transaction- 40 % related costs • Organic sales growth 12 percent in constant currency. 450 35 All regions contributed positively, with EMEA showing 400 30 the high
Slide 21: Advanced Instruments: osmolality testing
A provider of osmolality testing instrumentation and consumables for the clinical, biopharma, and food & beverage markets USD m. % Q4 2020 25 60 • Organic sales growth 16 percent in constant currency, driven 50 by strong growth in consumables and services. Instruments 20 also reported good organic g
Slide 22: BraunAbility: wheelchair accessible vehicles
A manufacturer of wheelchair accessible vehicles and wheelchair lifts USD m. % Q4 2020 250 12 • Organic sales growth -22 percent in constant 10 currency, driven by continued weakness in demand 200 8 on both the consumer and commercial side due to 6 covid-19 150 4 • Despite unfavorable demand trend,
Slide 23: Three Scandinavia: mobile voice and broadband
A provider of mobile voice and broadband services in Sweden and Denmark Negative impact SEK m. from VAT rulings % Q4 2020 3 500 50 • Subscription base +48,000 during the quarter, of 3 000 40 which 41,000 in Sweden, 7,000 in Denmark 30 2 500 • Service revenue growth 1 percent, negatively 20 2 000 imp
Slide 24: Investments in EQT
Investments in EQT 57 10% SEK bn of tot. adjusted assets
Slide 25: Investments in EQT
Investments in EQT SEK 57bn Investments in EQT 55% Total Return 2020 96 percent total return, EQT AB 12 percent total return EQT funds 10% SEK 0.2bn of total adjusted assets Net cash flow to Investor 2020 25
Slide 26: Strong prospects for continued attractive performance
Brygga Strong prospects for continued attractive performance Sharpen Ensure our role an attractive as an engaged portfolio owner 26
Slide 27: Market Leaders with Strong Exposure to Attractive Long-term Trends
Market Leaders with Strong Exposure to Attractive Long-term Trends SEK 566 bn 27
Slide 28: Committed to continue to Create Value
Committed to continue to Create Value 1. Clear and proven ownership model 2. Companies with strong market positions and exposure to attractive trends 3. Strong network and financial strength to support value creation 28
Slide 29: Year-End Report 2020 – Helena Saxon, CFO
Year-End Report 2020 Helena Saxon, CFO 29
Slide 30: Net Asset Value Development
Net Asset Value Development SEK bn 550 546 Adjusted NAV 500 462 Reported NAV 450 400 350 300 250 200 150 100 50 0 10 11 12 13 14 15 16 17 18 19 20 30
Slide 31: Listed Companies
Listed Companies 2020 SEK bn TSR, % • 2020: TSR 8%, SIXRX 15% 12 220 • Q4 2020: TSR -2%, SIXRX 6% 220 210 10 Electrolux 8 46 3% Wärtsilä 50 Saab 2% 6 34 40 3% Elux Pro 26 Husqvarna 1% 30 4 16 3% Atlas Copco 20 Sobi 24% 8 11 8 2 10 5% Nasdaq -3 0 -7 -9 0 6% -15 -10 -2 -23 Ericsson -20 SEK 367bn -4 7%
Slide 32: Patricia Industries – Total Return
Patricia Industries – Total Return XX XX 19% 5% Total avkastning 2019 Total return (excl. cash) TSR Marknaden Total return (excl. cash) 2020 Q4 2020 32
Slide 33: Patricia Industries – Change in Estimated Market Values
Patricia Industries – Change in Estimated Market Values Q4 2020 Summary Estimated market value change 733 313 Distributions/proceeds 842 871 (35) 1 736 (204) (361) 155 766 5 472 (33) (799) Net Distribution of 149 267 proceeds of SEK 3 681m SEK 69m Acquisition cost Total NAV Advanced Three Financial
Slide 34: Major Drivers of Estimated Market Values Q4 2020
Major Drivers of Estimated Market Values Q4 2020 Est. market value Company change Q4 2020 vs. Major drivers Q3 2020 Strong earnings and cash flow impacted positively, SEK 3.6bn currency impacted negatively (before distribution) Multiple lowered to reflect PPE profit during 2020 SEK 2.9bn Value incre
Slide 35: Strong Cash Flow - Great Financial Flexibility
Strong Cash Flow - Great Financial Flexibility 2015-2020 Sources Uses Dividend Listed ~98 ~98 paid Companies SEK bn SEK bn Investments in EQT Net debt approximately unchanged, leverage down from 7.3 percent to 4.1 percent 35
Slide 36: Financial Position, December 31, 2020
Financial Position, December 31, 2020 % Ratings 10.8y Average 20 AA-/Aa3 maturity of S&P/ debt Moody’s portfolio 15 10 5 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Leverage target range Leverage 36
Slide 37: Average Annual Total Shareholder Return
Average Annual Total Shareholder Return As of December 31, 2020 % 25 20 15 10 5 0 1 year 5 years 10 years 20 years Investor B SIXRX Return requirement 37
Slide 38: We create value for people and society
We create value for people and society by building strong and sustainable businesses
Slide 39: Contact and Financial Calendar
Contact Financial Calendar Viveka Hirdman-Ryrberg Head of Corporate Communication & 2021-04-20 Sustainability Interim Management Statement January-March 2021 +46 70 550 3500 [email protected] 2021-07-15 Interim Report January-June 2021 2021-10-18 Interim Management Statement Magn