Interim Report Q2 2020 - Investor - Home · Atlas Copco - Closed the strategic acquisition of ISRA...
Transcript of Interim Report Q2 2020 - Investor - Home · Atlas Copco - Closed the strategic acquisition of ISRA...
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Interim Report
Q2 2020Johan Forssell, CEO
Helena Saxon, CFO
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• The crisis has had significant impact on people and society.
Governments and companies have in many ways tried to support
• Rebound in leading indicators and economic activity, but the
sustainability and strength of the recovery remain uncertain
• Our companies have taken decisive actions to adapt
Covid-19
3
Q2 2020 Performance
14%Adjusted NAV
growth
-2%Total Return
Patricia
Industries
16% Value change,
Investments in
EQT
19%Total Return
Listed
Companies
9%TSR
(SIXRX 17%)
Listed Companies
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68%of tot. adjusted assets
351SEK bn
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Engaged Ownership
Sobi- Entered a licensing
agreement within gout
Atlas Copco- Closed the strategic
acquisition of ISRA
VISION
ABB- Sale of Power
Grids finalized
- Investor increased
ownership
Patricia Industries
6
22%of tot. adjusted assets
115SEK bn
Patricia Industries – Operational Development Q2 2020
Organic sales growth
7
SarnovaThree
Scandinavia*
Vectura Mölnlycke Piab LaboriePermobil Braun
Ability
Grand
Group
4%
-2%-4%
-7%
-16% -17%
-45%
-53%
-77%
-25% EBITA subsidiaries
-18% EBITDA,
subsidiaries and
40% ownership in
Three Scandinavia
-19%Organic sales
growth in
constant
currency
*Service revenue
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Covid-19 Impact
Resilient Less resilient
~70%Estimated market value
Patricia Industries
~30%Estimated market value
Patricia Industries
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Organic growth Q2, % Margins, %
EBITDA
EBITAEBITDA 28.8
24.7
12.9
11.6
36.6
29.6
25.8
11.6
10.4
35.9
Resilient performance in Q2
EBITAEBITDA
-7
-2
+4
Q2 2020 Q2 2019
10
Decisive actions to mitigate significant revenue declines
-16
-45
-53
-17
EBITAEBITDA
EBITAEBITDA
EBITAEBITDA
EBITAEBITDA
27.5
23.9
18.2
13.1
17.3
13.7
1.4
-2.6
29.2
26.7
21.0
16.5
26.4
23.1
10.7
8.9
Margins, % Organic growth Q2, %
Q2 2020 Q2 2019
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A provider of advanced products for treatment and prevention of wounds and single-use surgical solutions
Q2 2020
• Organic sales growth -7 percent in constant currency.
All regions contributed negatively, except Emerging
Markets. Decline primarily caused by fewer elective
surgical procedures and restricted access to hospitals
• New customer agreements within PPE to add
significantly to sales during the remainder of 2020.
Strong sales growth for the group expected in Q3 2020
• EBITA margin almost in line with last year despite lower
sales
• Cash flow generation was strong
• Zlatko Rihter, currently CEO of Cellavision, appointed
new CEOIFRS 16 implemented as of the first quarter 2019
0
5
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30
35
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Q216
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%EUR m
Sales EBITDA, % EBITA, %
12
A provider of advanced mobility and seating rehab solutions
Q2 2020
• Organic sales growth -17 percent in constant
currency. Social distancing measures severely
restricted possibility to market and sell across all
regions. Continued strong growth in APAC. Increased
market activity towards the end of quarter
• EBITA margin declined compared to last year as a
result of lower sales. Cost reduction initiatives
mitigated the margin drop
• M1 power wheelchair introduced in EMEA
IFRS 16 implemented as of the first quarter 2019
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%SEK m
Sales EBITDA, % EBITA, %
-15
-10
-5
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%USD m
Sales EBITDA, % EBITA, %
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A provider of innovative capital equipment and consumables for the diagnosis and treatment of urologic and
gastrointestinal disorders
Q2 2020
• Organic sales growth -45 percent in constant currency
due to significant decline in elective procedures within
both Urology and Gastrointestinal due to covid-19.
Sequential sales growth during the quarter, but June
still well below last year
• Clinical Innovations less impacted, performance close
to last year’s level
• EBITA margin declined due to sharply lower sales,
partly offset by cost containment and strong
performance in Clinical Innovations
IFRS 16 implemented as of the first quarter 2019
Negative impact from
transaction and integration
costs related to Clinical
InnovationsNegative impact from
transaction and integration
costs related to Cogentix
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%USD m
Sales EBITDA, % EBITA, %
EBITDA adjusted, % EBITA adjusted, %
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A specialty distributor of healthcare products in the U.S.
Q2 2020
• Organic sales growth -2 percent in constant currency
• EBITA margin expansion despite continued negative
impact from investments in commercial resources,
digital platform enhancements, 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
Q2 2020
• Organic sales growth -53 percent in constant currency
impacted by covid-19-related lockdowns and
decreased customer demand
• EBITA margin negatively impacted by sharply lower
sales. Negative impact partly offset by significant cost
containment measures
IFRS 16 implemented as of the first quarter 2019
-4
-2
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%USD m
Sales EBITDA, % EBITA, %
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%SEK m
Sales EBITDA, % EBITA, %
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A provider of gripping and moving solutions for automated manufacturing and logistics processes
Q2 2020
• Organic sales growth -16 percent in constant currency
as many customer groups were impacted by covid-19.
Solid growth in APAC. Americas and Europe declined.
Vacuum Conveying grew, the other divisions declined.
Increased customer demand towards the end of the
quarter
• Despite significant sales drop, EBITA margin of 24
percent supported by active cost management
• Launch of piFLOW®i/f range of vacuum conveyors
IFRS 16 implemented as of the first quarter 2019
Negative impact
from transaction-
related costs
-30
-20
-10
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1 000
1 500
2 000
2 500
3 000
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Q418
Q119
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%SEK m
Sales EBITDA reported, % EBITDA adjusted*, %
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A provider of mobile voice and broadband services in Sweden and Denmark
Q2 2020
• Subscription base +2,000 during the quarter. +37,000
in Sweden, 41,000 inactive SIM-cards in Denmark
disconnected
• Service revenue +4 percent
• EBITDA +3 percent
• Sweden’s largest 5G network launched
• SEK 494m distribution to owners, of which SEK 198m
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
49SEK bn
Investments in EQT
19
16%Total value change (19% constant currency)
42%Total Return EQT AB
-11%Value change, investments in EQT funds
(reported with a one-quarter lag)
-1.6SEK bn
Net cash flow
Going forward
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Signs of
recovery but
uncertainty
remains high
Strong
financial
position
Supporting
our
companies as
an engaged
owner
Strong and
well
positioned
companies
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Well positioned to capture opportunities
Acceleration of
long-term trends
- Digitalization
- Automation
- Integration of
Sustainability
Lessons learned and
new insights
- Customer offering
- New ways of working
- Supply chain
- Efficiency vs. resilience
Interim Report
Q2 2020Helena Saxon, CFO
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10-year Net Asset Value Development
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0
50
100
150
200
250
300
350
400
450
500
1610 12 15
SEK bn
11 13 14 17 18 19 20
432
491
Reported NAV
Adjusted NAV
Listed Companies
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Q2 2020 Summary
• Total contribution to NAV SEK 55bn
• Listed Companies TSR 19%, SIXRX 17%
20 20
27
20
53
2326
4
0
5
10
15
20
25
30
35
40
45
50
55
0
8
6
2
4
10
12
14
So
bi
Astr
aZ
en
eca
SEK bn TSR, %
Atla
s C
op
co
SE
B
AB
B
20
11
Ep
iro
c
17
Na
sd
aq
Husqva
rna
Sa
ab
12
Ericsso
n
Ele
ctr
olu
x
20
Elu
x P
ro
Wärt
silä
Contribution to NAV (LHS) TSR (RHS)
Saab
3%
Nasdaq
6%
ABB
16%
Atlas Copco
23%
Sobi
7%
SEB
10% AstraZeneca
14%
Epiroc
7%
Ericsson
7%
Wärtsilä
2%
Electrolux
2% Husqvarna
2%
Elux Pro
1%
SEK 351bn
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Patricia Industries – Development in Q2 2020
- Earnings impacted negatively
- Currency impacted negatively
- Multiples impacted positively
-2% Total return, excl. cash (-2 percent incl. cash)
Patricia Industries – Change in Estimated Market Values
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Q2 2020 Summary Estimated market value change
(699)
(839)
(541)
Sarnova
21
Financial
Investments
BraunAbility
128 927
Three
Scand.
(1 377)
Mölnlycke Patricia
Cash
Total NAV
June 2020
256
The Grand
Group
(743)
Total NAV
March
2020
1 789
Permobil
226
Laborie
131 651
(1 001)
Vectura
182
Piab
Distributions/proceeds
Net
proceeds of
SEK 715mIncl. SEK
198m
distribution
Major Drivers of Estimated Market Values Q2 2020
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Company
Est. market value
change Q2 2020 vs.
Q1 2020
Major drivers
SEK -0.8bnLower profit and currency impacted negatively, higher
multiples impacted positively
SEK -0.7bnLower profit and currency impacted negatively, higher
multiples impacted positively
SEK -1.0bnLower multiples impacted negatively, higher profit
impacted positively. SEK 198m capital distribution
SEK 1.8bnHigher multiples and cash flow impacted positively, lower
profit impacted negatively
SEK -1.4bnCurrency and lower profit impacted negatively, multiples
and cash flow generation impacted positively
Financial Position as of June 30, 2020
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• Leverage 5.1% (2.8% Dec 31, 2019)
• Net debt SEK 23.2bn
• Gross cash SEK 13.7bn
• Average maturity of the debt portfolio 10.6 years
Current rating
Standard & Poor’s AA-
Moody’s Aa3
0
5
10
15
20
25
30
201720152011 2016
%
20132012 2014 2018 2019 2020
Maximum leverage Reported leverageLeverage target range
Quarterly leverage development, 10 years
-10
-5
0
5
10
15
20
YTD 1 year 5 years 10 years 20 years
Percent
Investor B SIXRX
30
Average Annual Total Shareholder Return
As of June 30, 2020
Return requirement
We create value
for people and society
by building
strong and sustainable
businesses
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Financial Calendar
Viveka Hirdman-RyrbergHead of Corporate Communication &
Sustainability
+46 70 550 3500
Magnus DalhammarHead of Investor Relations
+46 73 524 2130
2020-10-19Interim Management Statement
January-September 2020
2021-01-21 Year End Report 2020
2021-04-20 Interim Management Statement
January-March 2021
2021-07-15Interim Report
January-June 2021
Contact
2020-11-13Capital Markets Day