interim report january june 2018 - investor ab · interim management statement, january...
TRANSCRIPT
![Page 1: Interim Report January June 2018 - Investor AB · Interim Management Statement, January –September 2018 October 17, 2018 Year-End report, January –December 2018 January 24, 2019](https://reader033.vdocuments.mx/reader033/viewer/2022042317/5f05c0ce7e708231d4148862/html5/thumbnails/1.jpg)
Interim Report
January – June 2018
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Q2 2018
2
Overview
Adjusted NAV SEK 394 bn., +5 percent including dividend
Listed Core Investments+4% total return
EQT+9% value change (constant currency)
Patricia IndustriesEstimated market values +9% (ex. cash)
Total Shareholder Return +1%
SIXRX +5%
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Q2 2018
3
The key highlights
Following its successful spin-off
from Atlas Copco, Epiroc has
become our 12th listed core
investment
Mölnlycke EBITA +10% (EUR)
New subsidiaries Piab and
Sarnova organic sales growth
10% and 8% respectively
Major subsidiaries:
Organic sales growth +6%
EBITA +9% (+18% ex. Laborie)
Near-term focus on supporting companies’ operational performance
Clear strategic direction, cash flow to enable investments and steadily rising dividend
Value of EQT investments +9%
in constant currency
High activity with a number of
investments and exits during the
quarter
Listed Core Investments Patricia Industries EQT
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Piab a new subsidiary
> Strong management team and corporate culture
> Critical premium products in an attractive market niche
> Leading market positions, large share of recurring revenue
> High profitability, strong cash flow generation
> Long-term growth potential driven by the trend towards increased automation
> Our broad network and industrial experience will support Piab’s growth strategy
4
High-quality company in attractive niche
A provider of gripping and moving solutions for automated manufacturing and logistics processes
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Piab
> Organic sales growth +10 percent in constant
currency
> EBITA margin 26 percent, impacted by changed
product mix and inventory step-up related to recent
acquisitions of SAS Automation and Feba
Automation
> New line of grippers for collaborative robots
launched
> Integration of recent acquisitions continued
5
Q2 2018
A provider of gripping and moving solutions for automated manufacturing and logistics processes
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Mölnlycke
> Organic sales growth +3 percent in constant currency
> Wound Care grew 4 percent, Surgical 2 percent
> The U.S. grew slightly, Emerging Markets the main
growth driver
> The EBITA margin increased, driven by higher gross
margin, cost-efficiency measures
> EUR 250 m. distribution to Patricia Industries
> Acquisition of German SastoMed after the end of the
quarter
6
Q2 2018
A provider of advanced products for treatment and prevention of wounds and single-use surgical solutions
0
5
10
15
20
25
30
35
0
200
400
600
800
1 000
1 200
1 400
1 600
2014 2015 2016 2017 201812 m. rolling
%EUR m.
Sales EBITDA, % EBITA, %
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Permobil
> Bengt Thorsson appointed new CEO, effective
September, 2018
> Organic sales growth +5 percent in constant
currency
> All business areas and geographies contributed
to growth
> The EBITA margin improved, driven by a higher
gross margin
7
Q2 2018
A provider of advanced mobility and seating rehab solutions
0
5
10
15
20
25
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
4 500
2014 2015 2016 2017 201812 m. rolling
%SEK m.
Sales EBITDA, % EBITA, %
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Sarnova
> Organic sales growth +8 percent in constant
currency
> Strong growth within both Acute Care and
Emergency Preparedness
> Profit growth exceeded sales growth
> Continued expansion of Curaplex private label
products and pre-assembled custom kits
> Investments in sales force, new products,
warehouse optimization and digital online
enhancement
8
Q2 2018
A specialty distributor of healthcare products in the U.S.
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BraunAbility
> Organic sales growth +22 percent in constant
currency
> Strong performance in the consumer segment
> Strong EBITA margin improvement, mainly
driven by higher sales and operating efficiency
9
Q2 2018
A manufacturer of wheelchair accessible vehicles and wheelchair lifts
012345678910
0
100
200
300
400
500
600
2014 2015 2016 2017 201812 m. rolling
%USD m.
Sales EBITDA, % EBITA, %
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Laborie
> Organic sales growth +11 percent in constant
currency
> Growth driven by strong urology business, shipment
of products that were delayed during the first quarter
> Profitability impacted by significant restructuring
expenses and expenses related to EV USD 215 m.
acquisition of Cogentix Medical
10
Q2 2018
A provider of innovative capital equipment and consumables for the diagnosis and treatment of urologic and gastrointestinal (GI) disorders
0
5
10
15
20
25
0
20
40
60
80
100
120
140
160
2015 2016 2017 201812 m. rolling
%USD m.
Sales EBITDA, % EBITA, %
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Aleris
> Organic sales growth +3 percent in constant
currency
> Profitability improved in Care, slightly lower in
Healthcare
> New contracts within Stockholm radiology at lower
prices in effect during the first quarter 2019
> Continued focus on operational improvement and
restructuring initiatives to sustainably improve
performance
11
Q2 2018
A provider of healthcare and care services in Scandinavia
0
1
2
3
4
5
6
0
2 000
4 000
6 000
8 000
10 000
12 000
2014 2015 2016 2017 201812 m. rolling
%SEK m.
Sales EBITDA, % EBITA, %
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3 Scandinavia
> Subscription base +32,000 driven by Hallon and
Oister
> Service revenue declined by 2 percent, reflecting
lower revenue per subscriber, mainly due to Danish
VAT ruling
> EBITDA improved slightly, but adjusting for IFRS 15,
EBITDA declined by 8 percent, partly driven by
Danish VAT ruling
12
Q2 2018
A provider of mobile voice and broadband services in Sweden and Denmark
0
5
10
15
20
25
30
0
2 000
4 000
6 000
8 000
10 000
12 000
2014 2015 2016 2017 201812 m. rolling
%SEK m.
Sales EBITDA, %
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EQT
> +9 percent value change in constant currency
> Net cash flow to Investor amounted to
SEK -705 m.
> SEK 19.4 bn. value of our EQT investments
13
Q2 2018
-1 000
0
1 000
2 000
3 000
4 000
5 000
2014
SEK m.
2017201620152013 H1 2018
Net cash flow to Investor
EQT AB EQT Equity EQT Infrastructure EQT Credit EQT Midmarket EQT Ventures EQT Real Estate
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Strategic priorities going forward
14
> More companies to become best-in-class
> Gradually strengthen ownership in selected holdings
> Continue to invest selectively in EQT funds
> Continued profitable growth in the existing companies
> New platforms in the Nordics and North America
> High quality
> Efficiency
> Pay a steadily rising
dividend
> Generate an attractive
total shareholder
return
LISTED CORE
INVESTMENTS
CORPORATE
FUNCTIONS
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Interim Report January – June 2018Financials, Helena Saxon, CFO
July 17, 2018
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Financial highlights
> Based on estimated market values of
Patricia Industries, adjusted Net Asset
Value amounted to SEK 394 bn., an
increase by 5 percent adjusted for
dividend
16
Q2 2018
0
100
200
300
400
181716151311 141009 12080499 0502 07060098 0301
SEK bn.
348348
394394
Reported NAV
Adjusted NAV
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Listed Core Investments
17
Q2 2018
-3 000
-2 000
-1 000
0
1 000
2 000
3 000
4 000
5 000
6 000
ElectroluxEricsson WärtsiläSaabHusqvarnaAstra
Zeneca
EpirocSobi Nasdaq ABB Atlas
Copco
SEB
SEK m.
> SEK 292 bn., 70% of total adjusted assets
> Total Contribution to NAV SEK 12 bn.
> TSR was 4.2% vs. SIXRX 4.6%
> June 18, first day of trading of Epiroc
TSR % 31 30 8 14 3 2 4 6 0 -5 -3 -21
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Patricia Industries
18
Estimated market value development Q2 2018 vs Q1 2018
4214 479
5 511
5055966613 813
117 053
Laborie 3
-60
Aleris
14
-453
Permobil The Grand
Group
-41
BraunAbility Vectura
-7 621
Sarnova Patricia CashFinancial
Investments
PiabMölnlycke
109 229
Total NAV
Mar 31, 2018
Total NAV
June 30,
2018
Mölnlycke distributed SEK 2,576 m. to
Patricia Industries during the quarter
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Major drivers of estimated market value Q2 2018
19
SEK +6.4 bn.Higher multiples and profit, cash flow and
currency also impacted positively
Company
Est. market value
change Q2 2018 vs.
Q1 2018
Comment
SEK -0.5 bn.Multiples impacted negatively, profits
slightly lower
SEK +0.7 bn. Higher profit and multiple expansion
SEK +0.6 bn.
Significantly higher profit and strong cash flow,
currency impacted positively,
multiples contracted
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Financial Investments
> Value increase 6%, supported by currency
> Strategic intent to gradually reduce the
portfolio remains
20
Q2 2018
4 225 m.
WhiteHat Security
Other 820 m.
Acquia
411 m.
428 m.
Neuronetics
1 796 m.
NS Focus
349 m.
Madrague
SEK 8 029 m.
2% of total adjusted assets
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Leverage development
> Leverage 5.3% (3.5%) as of June 30, 2018
> Net debt amounted to SEK 19.6 bn.
> Gross cash amounted to SEK 12.7 bn.
> Average maturity of the debt portfolio 9.3 years
21
Current rating
Standard & Poor’s AA-
Moody’s Aa3
-15
-10
-5
0
5
10
15
20
25
30% Leverage development
Leverage target range Leverage Maximum leverage
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Financial calendar & Contact details
Event Date
Interim Management Statement, January – September 2018 October 17, 2018
Year-End report, January – December 2018 January 24, 2019
Interim Management Statement, January – March 2019 April 24, 2019
Interim Report, January – June 2019 July 17, 2019
22
Contact details
Magnus Dalhammar +46 73 524 2130
Head of Investor Relations [email protected]