Interim Management Statement - Investor AB...Group. Financial Permobil. Investments (897) 136 381...
Transcript of Interim Management Statement - Investor AB...Group. Financial Permobil. Investments (897) 136 381...
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Interim Management Statement Q1 2020Johan Forssell, CEOHelena Saxon, CFO
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• Historic crisis for people and society with significant impact on the global economy
• Focus on mitigating the negative impact on employees, customers, supply chains and production, securing liquidity and cash flow
• Important to balance short-term cost efficiency and long-term investments
Covid-19
• Investor is well prepared with a strong financial position
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Q1 2020 Highlights
-10%Adjusted NAV
growth
12%Adjusted EBITA growth in major
subsidiaries
11% Value change, Investments in
EQT
2.9 SEK bn
invested in Listed
Companies
-11%TSR
(SIXRX -18%)
Sustainability Three focus areas and
related targets defined
Listed Companies
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65%of tot. adjusted assets
297SEK bn
2.9
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Listed Companies
#13 SEK bn invested Listed company
SEK 1.6bn SEK 0.2bn SEK 1.1bn
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Engaged Ownership
EricssonContinued
investments to capture 5G
opportunities
AstraZenecaTagrisso proven effective against
specific lung cancer
SobiInitiated clinical study for the treatment of
complications associated with
covid-19
WärtsiläReorganization of Marine business to simplify business
structure
Patricia Industries
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26%of tot. adjusted assets
118SEK bn
Patricia Industries – Operational Development Q1 2020
6 percent organic sales growth, %
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Vectura Mölnlycke Grand Group
LaborieBraunAbility
Permobil
7%
PiabSarnova-17%
-4%-2%
5%3%
15% 14%
1% Reported EBITA
growth
12%Adjusted EBITA
growth
• 6 percent service revenue growth• 6 percent adjusted EBITDA growth
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Covid-19 Portfolio Implications Q2
Resilience Less resilience
~70%Estimated market valuePatricia Industries
~30%Estimated market valuePatricia Industries
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Supported by Personal Protective Equipment, Gloves and AntisepticsRelative resilience in
Chronic and Prevention wound care
Supported by data usage and callsSupported by good demand for
respiratory productsand personal protective equipment
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Fewer elective procedures withinUrology and GI
Customer industries affected by lockdowns Limited customer access Limited customer access
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A provider of advanced products for treatment and prevention of wounds and single-use surgical solutions
Q1 2020
• Organic sales growth +7 percent in constant currency. All regions grew, U.S. and Emerging Markets faster than the group
• Wound Care +6 percent. Chronic and prevention good growth
• Surgical +7 percent driven by Gloves, Antiseptics, Personal Protective Equipment
• Growth in these areas to some extent supported by covid-19
• Products related to elective procedures negatively impacted by covid-19
• EBITA margin essentially flat, adjusted margin approximately 1 p.p. higher
IFRS 16 implemented as of the first quarter 2019
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A provider of advanced mobility and seating rehab solutions
Q1 2020
• Organic sales growth +3 percent in constant currency
• Strong growth in APAC, North America grew slightly, EMEA lower
• Q1 as a whole relatively unaffected by covid-19, material impact during the latter part, especially in EMEA and increasingly North America, as access to customers became more limited
• EBITA margin improved slightly compared to last year
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Negative impact from costs related to
acquisition of Cogentix
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A provider of innovative capital equipment and consumables for the diagnosis and treatment of urologic and gastrointestinal disorders
Q1 2020
• Organic sales growth -4 percent in constant currency
• Within Urology and GI, sales weakened significantly in March driven by sharp decline in elective procedures
• Maternal and child health business grew strongly as demand linked to childbirth procedures is more resilient
• Reported EBITA profitability includes USD 14m in costs related to the acquisition of Clinical Innovations, completed February 12, 2020
IFRS 16 implemented as of the first quarter 2019
Negative impact from transaction and integration
costs related to Clinical Innovations
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A specialty distributor of healthcare products in the U.S.
Q1 2020
• Organic sales growth +14 percent in constant currency
• Strong growth in both Emergency Preparedness and Acute. Since March, significantly increased demand for personal protective equipment and respiratory products driven by covid-19
• EBITA margin continued to be impacted by continued investments in commercial resources, digital platform enhancements and warehouse optimization
IFRS 16 implemented as of the first quarter 2019
Negative impact from Ambu transition
Positive impact from Ambu transition
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A manufacturer of wheelchair accessible vehicles and wheelchair lifts
Q1 2020
• Organic sales growth +5 percent in constant currency
• Strong growth in Consumer and Commercial WAVs. Since beginning of second quarter demand significantly depressed by covid-19-related lockdowns affecting dealers and consumers in several geographies
• Excluding USD 1.4m costs related to strategic project, EBITA margin slightly ahead of last year
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A provider of gripping and moving solutions for automated manufacturing and logistics processes
Q1 2020
• Organic sales growth -2 percent in constant currency
• Americas grew slightly, Europe and APAC declined
• Solid growth in Ergonomic Handling, Vacuum Automation flat, Robotic Gripping significantly lower. Increased covid-19 impact on demand and supply chain in the beginning of second quarter
• Excluding SEK 5m in costs related to TAWI and prior acquisition, EBITA margin amounted to 23 percent. Profitability declined due to lower sales as well as strategic investments
IFRS 16 implemented as of the first quarter 2019
Negative impact from transaction-
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A provider of mobile voice and broadband services in Sweden and Denmark
Q1 2020
• Subscription base +32,000 during the quarter
• Service revenue +6 percent
• EBITDA +6 percent excluding positive impact from VAT reclaim
• SEK 332m distribution to owners, of which SEK 133m to Patricia Industries
IFRS 16 implemented as of the first quarter 2019
Negative impact from VAT rulings
Negative impact from VAT rulings
Investments in EQT
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9%of tot. adjusted assets
41SEK bn
Investments in EQT
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11%Total value change (8% constant currency)
9%Total Return EQT AB
14%Value change, investments in EQT funds
0.9SEK bn
Net cash flow
The Longer Perspective
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Sustainability –Future-Proofing Portfolio with Targets for 2030
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Business Ethics & Governance
Climate & Resource Efficiency
Diversity & Inclusion
50%Reduce CO2e emissions
compared to 2016
100%All companies have CO2e
targets related to products, services or value chain
40/60%Gender balance in management groups and boards of directors
at the portfolio level
100%All companies measure
perceived level of inclusionamong employees
100%Adhere to the Sustainability
Guidelines
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Solid Q1 but tougher
times ahead
Robust balance
sheet and liquidity
Will use strong
position wisely
Interim Management Statement Q1 2020Helena Saxon, CFO
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10-year Net Asset Value Development
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SEK bn
1711 12 14 15 16 18 19 2010
378
438
Reported NAV
Adjusted NAV
Atlas Copco 23%
ABB 15%
AstraZeneca 15%SEB 10%
Ericsson 7%
Epiroc 7%
Nasdaq 6%
Sobi 6%
Saab 3%Wärtsilä 3%
Electrolux 2% Husqvarna 2%Electrolux
Professional 1%
Listed Companies
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Q1 2020 Summary
• Total contribution to NAV SEK -48bn• Listed Companies TSR -14%, SIXRX -18%
-50
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-6
-8
-2-1
-11
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Saab
Eric
sson
Epiro
c
Wär
tsilä
SEK bn
ABB
Atla
s C
opco
TSR, %
-23.6
10.3
Sobi
-18.8
86.6
-26.1
Elux
Pro
-14.4-2.1 -3.6
Nas
daq
-4.2
Astra
Zene
ca
Elec
trolu
x
-33.3
SEB
Hus
qvar
na
-39.7 -42.1
-10.8
Contribution to NAV (LHS) TSR (RHS)
SEK 297bn
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Patricia Industries – Development in Q1 2020
-2% - Negative impact from lower multiplesTotal return, excl. cash (-1 percent including cash)
Patricia Industries – Change in Estimated Market Values
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Q1 2020 Summary Estimated market value change
-1%total
returnincl. cash
2 515 1 006
263
(194) (206)(532)
(583)
(6 838)
Patricia Cash
Total NAV March 2020
Mölnlycke Sarnova BraunAbility Vectura The Grand Group
PermobilFinancial Investments
(897)136 381
(361)
PiabTotal NAV Dec 2019
Three Scandinavia
Laborie
1 097
131 651
Distributions/proceedsIncl. SEK 4.3bn
equity injection
Incl. SEK 2.9bn transfer to Investor
Major Drivers of Estimated Market Values Q1 2020
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CompanyEst. market value
change Q1 2020 vs. Q4 2019
Major drivers
SEK -0.6bn Lower multiples impacted negatively
SEK 1.0bn Currency and higher profit impacted positively, mitigated by lower multiples
SEK -0.9bn Lower multiples impacted negatively, mitigated by higher profit, SEK 133m distribution to Patricia Industries
SEK 1.1bn Higher profit and currency impacted positively, mitigated by lower multiples
SEK -1.8bn(excl. SEK 4.3bn equity injection)
Acquisition of Clinical Innovations, lower profit and lower multiples in “legacy” Laborie
Financial Position as of March 31, 2020
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• Leverage 4.7% (2.8% Dec 31, 2019)
• Net debt SEK 18.8bn
• Gross cash SEK 19.8bn
• Average maturity of the debt portfolio 10.8 years
Current ratingStandard & Poor’s AA-Moody’s Aa3
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Target range Leverage
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-15
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YTD 1 year 5 years 10 years 20 years
Percent
Investor B SIXRX
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Average Annual Total Shareholder ReturnAs of March 31, 2020
Return requirement
We create value for people and society
by buildingstrong and sustainable
businesses
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Financial Calendar
Viveka Hirdman-RyrbergHead of Corporate Communication & Sustainability
+46 70 550 [email protected]
Magnus DalhammarHead of Investor Relations
+46 73 524 [email protected]
2020-07-17 Interim Report January – June 2020
2020-10-19Interim Management Statement January – September 2020
2020-01-21 Year End Report 2020
Contact