Investor Ab Class A · OMXSTO:INVE_A
Investor Ab Class A — Investor Day (March 2017)
43 slides from Investor Ab Class A's investor day presentation, March 2017
Slide 1: Investor Capital Markets Day
Investor Capital Markets Day
Slide 2: Johan Forssell, CEO
Johan Forssell CEO
Slide 3: Purpose of the day
Purpose of the day Present our strategic direction Explain the value creation in our business areas Present the wholly-owned subsidiaries within Patricia Industries 3
Slide 4: Agenda
Agenda 09:00 Welcome – Pia Djupmark & Johan Forssell 09:10 Investor strategy – Johan Forssell 09:40 Financial strategy – Helena Saxon 10:00 Listed Core Investments – Daniel Nodhäll 10:45 Break 11:00 EQT – Thomas von Koch 11:20 Patricia Industries – Christian Cederholm & Noah Walley 11:45 Aleris – Al
Slide 5: Our genes – who we are
Our genes – who we are Long-term, active owner of great companies – buy-to-build strategy We strive to support our companies to become and stay best-in-class We focus on what we believe is best for each individual company Our long-term perspective is no excuse for lack of short-term performance Our
Slide 6: What has been the focus over the past two years?
What has been the focus over the past two years? Established a new organizational structure and 1 Management Team 2 Several key activities in our portfolio companies Significant investments in attractive assets while 3 maintaining financial flexibility 6
Slide 7: What has been the focus over the past two years?
What has been the focus over the past two years? Established a new organizational structure and 1 Management Team 2 Several key activities in our portfolio companies Significant investments in attractive assets while 3 maintaining financial flexibility 7
Slide 8: Strong business focus with common support functions
Strong business focus with common support functions LISTED CORE INVESTMENTS 248 78% SEK bn. of total assets 14 5% SEK bn. of total assets 55 17% SEK bn. of total assets EQT AB EQT EQUITY EQT INFRASTRUCTURE EQT MIDMARKET EQT CREDIT EQT VENTURES Financial Investments Common corporate support functions
Slide 9: New Management Team established
New Management Team established Clear division of responsibilities, efficient decision-making process Johan Forssell Helena Saxon Petra Hedengran Daniel Nodhäll Stefan Stern CEO CFO General Counsel, Head of Head of Listed Core Head of Corporate Corporate Governance, Investments Relations, Sustainabi
Slide 10: Valuation of unlisted holdings in Patricia Industries
Valuation of unlisted holdings in Patricia Industries Facilitating evaluation of Investor’s net asset value Increasing consistency between reporting of Listed Core Investments and unlisted holdings Continued effort to increase transparency 10
Slide 11: What has been the focus over the past two years?
What has been the focus over the past two years? Established a new organizational structure and 1 Management Team 2 Several key activities in our portfolio companies Significant investments in attractive assets while 3 maintaining financial flexibility 11
Slide 12: Sobi
Sobi > Successful launches of Elocta and Alprolix > Group sales SEK 2.6 bn. 2014, SEK 5.8-6.0 bn. expected 2017 12
Slide 13: Husqvarna
Husqvarna > Major operational improvement, significant margin expansion > Three business areas focusing on growth > Consumer brands focusing on improving profitability 13
Slide 14: Atlas Copco
Atlas Copco > Vacuum grows into new business area > Proposal to split into two focused market leaders 14
Slide 15: Ericsson
Ericsson > Tough market environment > New CEO in place > Focused business strategy presented 15
Slide 16: Our subsidiaries within Patricia Industries
Our subsidiaries within Patricia Industries 16
Slide 17: What has been the focus over the past two years?
What has been the focus over the past two years? Established a new organizational structure and 1 Management Team 2 Several key activities in our portfolio companies Significant investments in attractive assets while 3 maintaining financial flexibility 17
Slide 18: Listed Core Investments – SEK 7 bn. invested
Listed Core Investments – SEK 7 bn. invested 2015-2016 SEK SEK 220 120 Close Share price price Average price paid Share Close price Average price paid Invested 200 100 180 80 160 60 140 120 40 2015 2016 2017 2015 2016 2017 EUR SEK 55 270 Share price Close price price paid Average share price Share p
Slide 19: Patricia Industries
Patricia Industries Two new subsidiaries in North America 19
Slide 20: Significant investments in attractive assets
Significant investments in attractive assets Sources Uses SEK ~30 bn. SEK ~30 bn. LISTED CORE INVESTMENTS Strong financial flexibility for more investments 20
Slide 21: Strong performance
Strong performance Inve B SIXRX % 14 12 10 8 6 4 2 0 2015 2016 YTD YTD as of March 24, 2017 21
Slide 22: Going forward
Going forward 22
Slide 23: Clear strategy to build on going forward
Clear strategy to build on going forward Grow Net Strong owner Asset Value Capital allocation Generate an attractive Operate efficiently total shareholder return Pay a steadily rising dividend 23
Slide 24: Our model builds on clear roles of responsibility and great people
Our model builds on clear roles of responsibility and great people The Board Management > Board recruitment > Appoints the CEO > Executes strategic > Value creation plans > Strategy and goals decisions > Benchmarking > Financial development/ > Manages day-to-day reporting operations > Capital struct
Slide 25: Structured approach to value creation
Structured approach to value creation Value Full value potential Industrial structure Capital structure Value-creating growth Current Operational value excellence Time We are long-term in vision, but relentlessly impatient in follow-up 25
Slide 26: Be efficient, agile, and invest for the future
Be efficient, agile, and invest for the future Long-term growth Efficiency Geographic expansion Cost efficiency Innovation Agility Service Sustainability Technology change Both are necessary to ensure long-term competitiveness 26
Slide 27: Clear strategy to build on going forward
Clear strategy to build on going forward Grow Net Strong owner Asset Value Capital allocation Generate an attractive Operate efficiently total shareholder return Pay a steadily rising dividend 27
Slide 28: Well-positioned to find attractive investments
Well-positioned to find attractive investments Listed Core Focused business areas Investments Strong balance sheet and EQT cash flow Broad network Patricia Industries 28
Slide 29: What we look for in Listed Core Investments and Patricia Industries
What we look for in Listed Core Investments and Patricia Industries Listed Core Investments – Nordics Geography Patricia Industries – Nordics and North America Industry Attractive industry niches Growth opportunities Flexible business models Company Market-leading positions Strong service offering S
Slide 30: Listed Core Investments – investment priorities
Listed Core Investments – investment priorities > Continue to gradually increase our ownership in selected listed core investments > Ready to support companies in rights issues > New investments not ruled out should the right opportunities arise LISTED CORE INVESTMENTS 30
Slide 31: Attractive to invest in EQT funds
Attractive to invest in EQT funds Return, % > Strong team and track record 35 30 > Major part of the returns generated from investments as a Limited Partner 25 20 > Returns have been boosted by our part of carry and surplus from management fees 15 > Our part of carry and surplus from 10 management f
Slide 32: EQT – SEK 1.5 bn. in average annual net cash flow
EQT – SEK 1.5 bn. in average annual net cash flow 2007-2016 SEK m. 7 000 6 000 Net cash flow 5 000 4 000 3 000 2 000 1 000 Distributions 0 -1 000 Drawdowns -2 000 -3 000 -4 000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 32
Slide 33: Patricia Industries – investment priorities
Patricia Industries – investment priorities New Add-on platforms in investments the Nordics in existing and North companies America 33
Slide 34: Tough competition for assets
Tough competition for assets The stock market development Tough competition for assets 34
Slide 35: What is our edge?
What is our edge? Focused Deep knowledge Financial Heritage organization in focused areas strength and network Preferred buyer and ability to generate synergies 35
Slide 36: Warren Buffett quote on buying wonderful companies
It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” Warren Buffett 36
Slide 37: Clear strategy to build on going forward
Clear strategy to build on going forward Grow Net Asset Value Generate an attractive Operate efficiently total shareholder return Pay a steadily rising dividend 37
Slide 38: As always, getting the balance right is important
As always, getting the balance right is important 38
Slide 39: Clear strategy to build on going forward
Clear strategy to build on going forward Grow Net Asset Value Generate an attractive Operate efficiently total shareholder return Pay a steadily rising dividend 39
Slide 40: Pay a steadily rising dividend
Pay a steadily rising dividend DPS, SEK 12 10 8 6 4 2 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016p 40
Slide 41: Strategic priorities going forward
Strategic priorities going forward LISTED CORE > More companies to become best-in-class INVESTMENTS > Gradually strengthen ownership in selected holdings > Pay a steadily rising > Continue to invest in EQT funds dividend > Generate an attractive > New platforms in the Nordics and North America total
Slide 42: Performance
Performance % INVE B SIXRX Return requirement 30 25 20 15 10 5 0 1 year 5 years 10 years 20 years 42
Slide 43: Thank you
Thank you