Interim Report January-September CEO Börje Ekholm

Transcription

1 Interim Report January-September CEO Börje Ekholm

2 Third quarter highlights > Net asset value increase of SEK 8 bn. to SEK 163 bn. > Add-ons in Core Investments ABB and Wärtsilä > Run-rate cost expected at SEK m. by year-end > Leverage down to 12 percent future cash flow expected to lower leverage to target range

3 Core Investments Third quarter highlights Listed > Add-ons in ABB and Wärtsilä > Year-to date dividends of SEK 4.7 bn. received Subsidiaries > Mölnlycke Health Care continues to grow profitably despite more challenging environment > Deleveraging Aleris by injecting up to SEK 500 m. in equity during Q4

4 Financial Investments Third quarter highlights > Net cash flow from EQT of SEK 707 m. Value change -2 percent in constant currency > Cash flow from IGC of SEK 155 m. Value change +1 percent in constant currency > Solid quarter for Lindorff on the back of strong platform built > Successful execution of strategic plan expected to result in significant value, however near-term effects of earthquakes in Italy still impacting

5 Platform for cash flow generation Core Investments Listed Dividends/redemptions Core Investments Subsidiaries Cash flow Financial Investments Distribution from EQT, IGC & partner-owned Total yield/cash from assets - Exit Cost of investing activities proceeds from partner-owned companies Distribution and investment capacity 5

6 Financials January September CFO Susanne Ekblom

7 Financial highlights January-September > Net Asset Value SEK bn. (156.1) > Leverage 12.3% (9.8%) > TSR Investor B-share 18% (10% in Q3) > SIXRX Index 12% (5% in Q3) 7

8 Net Asset Value Q3 SEK bn , SEK bn. Contribution Jan-Sept SEK 7.3 bn Contribution Q3 SEK 8.5 bn

9 Net Asset Value September 30, vs. December 31, () Sept 30, Dec 31, Core Investments Financial Investments Other assets & liabilities Total assets Net debt Net asset value

10 Contribution to Net Asset Value Q3 vs. () Q3 Core Investments Financial Investments Business Areas Group-wide Dividend Contribution to NAV

11 Core Investments Market Value September 30, SEK m. SEK m. SEK m. Invested Q3 SEK m. SEK m. SEK 258 m. SEK m. SEK m. ABB 239 Wärtsilä 19 SEK m. SEK m. SEK m. SEK 151 bn. 81% of total assets of which Subsidiaries SEK 19.6 bn. SEK m. SEK m. SEK 0 m. SEK m. SEK m. Divested Q3 11

12 Core Investments Contribution to Net Asset Value, January-September, SEK 12 bn

13 Mölnlycke Health Care - Subsidiary Q3 EUR m. EUR m. Q3 EUR m. EUR m. Net Sales EBITDA * EBITDA % Operating Cash Flow Increase(-)/ decrease (+) in net debt Net sales EUR m. EBITDA margin % EBITDA 30% % 800 Net Sales 18% % % 0 0% Net sales (rolling 4Q) EBITDA margin (rolling 4Q) EUR m. Q3 Q4 Net debt Invested up to Dec Accumulated effect on value up to Invested/Divested in Effect on value in -992 > Good growth in Europe, strong growth in the Americas > Q3 sales +6% in constant currency > EBITDA margin essentially flat > Wound Care performed well, good quarter for Surgical despite challenging market > Strong cash flow, lower net debt Closing balance * Adjusted for PPA consumption of inventory of EUR 45 m. 13

14 Aleris Subsidiary Q3 Q3 Net Sales EBITDA EBITDA % Operating Cash Flow Net sales Net Sales EBITDA EBITDA margin 15% 12% 9% 6% 3% 0% Increase(-)/ decrease (+) in net debt Q3 Q4 Net debt Invested up to Dec. 31, Accumulated effect on value up to -198 Invested/Divested in 301 Effect on value in -152 Closing balance Net sales (rolling 4Q) EBITDA margin (rolling 4Q) > Q3 organic sales growth +4% in constant currency > EBITDA margin 2%, impacted by restructuring costs > Good performance within Care, Diagnostics, Norway > Denmark still challenging. Actions taken to have effect in coming quarters > Healthcare Sweden burdened by acquisitions, underperforming units > Actions to improve profitability launched 14

15 Grand Hôtel - Subsidiary Q3 Q3 Net Sales Net sales Net Sales EBITDA margin 50% 40% EBITDA % EBITDA % EBITDA 20% Operating Cash Flow % Increase (-)/ decrease (+) in Net debt Net sales (rolling 4Q) EBITDA margin (rolling 4Q) 0% Q3 Q4 Net debt Closing balance December 31, > Q3 sales flat > EBITDA margin 3 percentage points higher at 22% > Markets remain tough > Work to maintain and develop real estate continues Effect on value in -61 Closing balance

16 Financial Investments Net Asset Value September 30, Other partner-owned investments SEK 179 m. Other financial investments SEK m. Invested Q3 SEK m. SEK m. SEK m. SEK 35.7 bn. 19% of total assets SEK m. SEK m SEK 712 m. EQT 707 Other 5 EQT IGC 155 Other P-O 2 SEK m. Proceeds Q3 16

17 EQT Change in Net Asset Value September 30, NAV beginning of period Contribution to NAV Q Draw downs Proceeds to Investor NAV end of period Key events Q3 > 2 percent value decrease in constant currencies Q3 > Investor s outstanding commitments to EQT funds SEK 4.7 bn. as of September 30, (2.0). MV Asset % of total assets Total

18 Investor Growth Capital Change in Net Asset Value September 30, NAV beginning of period Contribution to NAV Capital Contribution Distribution to Investor NAV end of period Q3 H Key events Q3 > Investor received SEK 155 m. distribution from IGC > 1 percent value increase in constant currencies MV Asset % of total assets Total Of which net cash

19 Gambro Partner-owned Q3 Q3 Net sales SEK m Net Sales Normalized EBITDA margin 28% 24% Net Sales % Normalized EBITDA Normalized EBITDA 16% 12% Normalized EBITDA % % 4% 0 0% Q3 Q4 Net sales (rolling 4Q) Normalized EBITDA margin (rolling 4Q) Net debt Contributed up to Dec. 31, Accumulated effect on value up to 993 Invested/Divested in 375 Effect on value in -171 Closing balance Note: Period December 1, August 31, > Q3 sales growth -2% in constant currency > Italian earthquakes continue to impact sales and profitability negatively > Good growth for Chronic in emerging markets, Acute continued to perform well > Execution of strategic plan continues, but some delays > Substantial net debt reduction during the quarter 19

20 Lindorff Partner-owned Q3 EUR m. EUR m. Q3 EUR m. EUR m. Net Sales EBITdA Net sales EUR m Net Sales EBITdA EBITdA margin 40% 35% 30% 25% 20% EBITdA % % 10% 50 5% EUR m. Q3 Q4 0 0% Net debt Net sales (rolling 4Q) EBITdA margin (rolling 4Q) Invested up to Dec. 31, Uppdaterad 18/4 Accumulated effect on value up to 368 Effect on value in 43 Closing balance > Q3 sales +18% in constant currency > Sharp profitability improvement > Both Collection and Capital performed well > Several smaller portfolio acquisitions closed Note: Period December 1, August 31, 20

21 3 Scandinavia Partner-owned Q3 Q3 Net Sales Subscribers Subscribers ARPU (SEK) EBITDA ARPU EBITDA % Q3 Q4 0 0 Net debt Subscribers ARPU (SEK) Invested up to Dec. 31, * Accumulated effect on value up to Effect on value in -6 Closing balance > Q3 sales growth -7%, driven by lower handset sales > Net subscriber intake + 41,000, growth hampered by lack of new handsets > Continued pressure on ARPU, especially in Denmark > Strong operating cash flow, substantial net debt reduction Note: Period December 1, August 31, 21

22 Platform for cash flow generation Core Investments Listed Dividends/redemptions Core Investments Subsidiaries Cash flow Financial Investments Distribution from EQT, IGC & partner-owned Total yield/cash from assets - Exit Cost of investing activities proceeds from partner-owned companies Distribution and investment capacity 22

23 Q&A