Investor Capital Markets Day

Transcription

1 Investor Capital Markets Day

2 Johan Forssell CEO

3 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

4 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 Alexander Wennergren Helm 12:05 Vectura Susanne Ekblom 12:15 Lunch 13:00 Permobil Jon Sintorn 13:20 BraunAbility Nick Gutwein 13:50 Laborie Brian Ellacott 14:15 Mölnlycke Richard Twomey 14:45 Concluding remarks Johan Forssell 4

5 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 model builds on clear roles of responsibility and great people 5

6 What has been the focus over the past two years? 1 Established a new organizational structure and Management Team 2 Several key activities in our portfolio companies 3 Significant investments in attractive assets while maintaining financial flexibility 6

7 What has been the focus over the past two years? 1 Established a new organizational structure and Management Team 2 Several key activities in our portfolio companies 3 Significant investments in attractive assets while maintaining financial flexibility 7

8 Strong business focus with common support functions LISTED CORE INVESTMENTS % 14 5% 55 17% SEK bn. of total assets SEK bn. of total assets SEK bn. of total assets EQT AB EQT EQUITY EQT INFRASTRUCTURE EQT MIDMARKET EQT CREDIT EQT VENTURES Financial Investments Common corporate support functions 8

9 New Management Team established Clear division of responsibilities, efficient decision-making process Johan Forssell CEO Helena Saxon CFO Petra Hedengran General Counsel, Head of Corporate Governance, EQT investments Daniel Nodhäll Head of Listed Core Investments Stefan Stern Head of Corporate Relations, Sustainability and Communications ~100 years at Investor AB Christian Cederholm Co-head of Patricia Industries, Nordic Noah Walley Co-head of Patricia Industries, North America 9

10 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

11 What has been the focus over the past two years? 1 Established a new organizational structure and Management Team 2 Several key activities in our portfolio companies 3 Significant investments in attractive assets while maintaining financial flexibility 11

12 Sobi > Successful launches of Elocta and Alprolix > Group sales SEK 2.6 bn. 2014, SEK bn. expected

13 Husqvarna > Major operational improvement, significant margin expansion > Three business areas focusing on growth > Consumer brands focusing on improving profitability 13

14 Atlas Copco > Vacuum grows into new business area > Proposal to split into two focused market leaders 14

15 Ericsson > Tough market environment > New CEO in place > Focused business strategy presented 15

16 Our subsidiaries within Patricia Industries 16

17 What has been the focus over the past two years? 1 Established a new organizational structure and Management Team 2 Several key activities in our portfolio companies 3 Significant investments in attractive assets while maintaining financial flexibility 17

18 Listed Core Investments SEK 7 bn. invested SEK Close Share price Average price paid SEK Share Close price Invested Average price paid EUR SEK 270 Close Share price Average share price paid price Close Share price Average price paid

19 Patricia Industries Two new subsidiaries in North America 19

20 Significant investments in attractive assets Sources Uses SEK ~30 bn. SEK ~30 bn. LISTED CORE INVESTMENTS Strong financial flexibility for more investments 20

21 Strong performance % Inve B SIXRX YTD YTD as of March 24,

22 Going forward 22

23 Clear strategy to build on going forward Grow Net Asset Value Strong owner Capital allocation Operate efficiently Generate an attractive total shareholder return Pay a steadily rising dividend 23

24 Our model builds on clear roles of responsibility and great people The Board Management > Board recruitment > Value creation plans > Benchmarking > Appoints the CEO > Strategy and goals > Financial development/ reporting > Capital structure > Executes strategic decisions > Manages day-to-day operations > Reports back to the Board 24

25 Structured approach to value creation Value Full value potential Industrial structure Capital structure Current value Operational excellence Value-creating growth We are long-term in vision, but relentlessly impatient in follow-up Time 25

26 Be efficient, agile, and invest for the future Efficiency Cost efficiency Agility Long-term growth Geographic expansion Innovation Service Sustainability Technology change Both are necessary to ensure long-term competitiveness 26

27 Clear strategy to build on going forward Grow Net Asset Value Strong owner Capital allocation Operate efficiently Generate an attractive total shareholder return Pay a steadily rising dividend 27

28 Well-positioned to find attractive investments Focused business areas Listed Core Investments Strong balance sheet and cash flow EQT Broad network Patricia Industries 28

29 What we look for in Listed Core Investments and Patricia Industries Geography Listed Core Investments Nordics Patricia Industries Nordics and North America Industry Attractive industry niches Company Growth opportunities Market-leading positions Strong cash flow generation Flexible business models Strong service offering 29

30 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

31 Attractive to invest in EQT funds Return, % > Strong team and track record > Major part of the returns generated from investments as a Limited Partner > Returns have been boosted by our part of carry and surplus from management fees 10 > Our part of carry and surplus from management fees have declined over time 5 0 Since inception Last 10 years > Today Investor owns 19 percent of EQT AB 31

32 EQT SEK 1.5 bn. in average annual net cash flow SEK m Net cash flow Distributions Drawdowns 32

33 Patricia Industries investment priorities Add-on investments in existing companies New platforms in the Nordics and North America 33

34 Tough competition for assets The stock market development Tough competition for assets 34

35 What is our edge? Focused organization Deep knowledge in focused areas Financial strength Heritage and network Preferred buyer and ability to generate synergies 35

36 It s far better to buy a wonderful company at a fair price than a fair company at a wonderful price. Warren Buffett 36

37 Clear strategy to build on going forward Grow Net Asset Value Operate efficiently Generate an attractive total shareholder return Pay a steadily rising dividend 37

38 As always, getting the balance right is important 38

39 Clear strategy to build on going forward Grow Net Asset Value Operate efficiently Generate an attractive total shareholder return Pay a steadily rising dividend 39

40 Pay a steadily rising dividend DPS, SEK p 40

41 Strategic priorities going forward LISTED CORE INVESTMENTS > More companies to become best-in-class > Gradually strengthen ownership in selected holdings > Continue to invest in EQT funds > New platforms in the Nordics and North America > Continued profitable growth in the existing companies > Pay a steadily rising dividend > Generate an attractive total shareholder return SUPPORT FUNCTIONS > High quality > Cost-efficient 41

42 Performance % 30 INVE B SIXRX Return requirement year 5 years 10 years 20 years 42

43 Thank you