january – june 2016 - investor ab · january-june 2016 cfo helena saxon presentation –july...
TRANSCRIPT
January – June 2016CEO Johan Forssell
Q2 2016 – summary
> Stable quarter despite challenging environment
> Continued execution on strategy
EQT Equity
EQT Infrastructure
EQT Midmarket
EQT Credit
EQT AB
MCP
SEK 212.2 bn., 77 percent of total assets SEK 13.3 bn., 5 percent of total assets SEK 51.2 bn., 18 percent of total assets
2
Listed Core Investments
> SEK 247 m. invested in Wärtsilä, increasing ownership to 17.5 percent
> Companies continue to adapt to market demand, capture opportunities
> Dividends of SEK 8.3 bn. expected from Listed Core Investments in 2016 (7.7)
Summary Q2
3
EQT
> 7 percent value change in constant currency
> SEK -0.3 bn. in cash flow to Investor, reflecting draw-downs
> Increased commitments to EQT
Summary Q2
4
Patricia Industries
> Focus on existing companies, divesting legacy holdings, finding new subsidiaries
> Mölnlycke Health Care 10 percent organic growth and strong profitability
> Strong growth for Permobil, margin increase driven by operational improvement
> Broad-based growth in Aleris, acquisition of Curato, improvement work continues
> Solid progress for BraunAbility, improved profitability despite significant investments
Summary Q2
5
A tradition of building companies
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FinancialsJanuary-June 2016
CFO Helena Saxon
Presentation – July 19th, 2016
Financial highlights
> Net Asset Value amounted to SEK 259.1 bn.
a decrease of SEK 3.2 bn. during the quarter
> Adjusted for dividend paid, NAV growth 2%
> Total shareholder return (Investor B-share)
1% compared to a flat SIXRX Index
Q2 2016
259.1
SEK bn.
0
50
100
150
200
250
300
96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
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Contribution to Net Asset ValueQ2 2016
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Listed Core InvestmentsQ2 2016
Contribution to NAV,
SEK m.
Total return,
Investor (%)
Atlas Copco 3 051 7.2
AstraZeneca 2 280 9.6
ABB 1 673 4.6
Electrolux 962 9.4
Husqvarna 345 6.0
Nasdaq 198 1.9
Saab -387 -4.2
Wärtsilä -826 -6.6
Sobi -1 162 -9.5
Ericsson -2 161 -15.5
SEB -2 273 -6.4
Total 1 676
Q2 2016
Invested SEK m. Divested SEK m.
Wärtsilä 247
Total 247
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EQTQ2 2016
SEK m.
Q2 2016
Draw-downs Proceeds to Investor
SEK m. 633 365
A private equity group with portfolio companies in Northern and Eastern Europe, Asia and the U.S.
0
1,000
2,000
3,000
4,000
5,000
2011 2012 2013 2014 2015 H1 2016
SEK m.Net cash flow
11
Patricia IndustriesQ2 2016
Contribution to NAV,
SEK m.
Mölnlycke Health Care 1 114
Financial Investments 416
3 Scandinavia 187
BraunAbility 157
Aleris 108
Permobil 66
Grand Group 16
Vectura -2
Total 2 000
Q2 2016
Invested Divested/Distributions
SEK m. 137 753
12
Mölnlycke Health Care
> Organic growth 10 percent in constant
currency
> Wound Care driven by advanced wound
care in the U.S. and developing markets
> Surgical driven by surgical gloves and
ProcedurePakTM
> EBITA margin improved, primarily driven
by volume growth
> Operating cash flow improved, but
impacted by working capital
Q2 2016
A provider of single-use surgical and wound care products for customers, health care professionals and patients
22
23
24
25
26
27
28
29
30
31
0
200
400
600
800
1,000
1,200
1,400
1,600
2012 2013 2014 2015 2016Rolling 12 m
%EUR m.
Sales EBITDA, % EBITA, %
13
Permobil
> Organic growth 9 percent in constant
currency
> Strong growth in both Europe and the
U.S.
> EBITA margin improved driven by
operational improvement
> Partnership with BraunAbility announced
> Operating cash flow strong
Q2 2016
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
2012 2013 2014 2015 2016Rolling 12 m
%SEK m.
Sales EBITDA, % EBITA, %
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Aleris
> Organic growth 9 percent in constant
currency, Norway the primary driver
> EBITA margin slightly above last year
> Work to improve underperforming units in
Sweden continues
> Acquisition of Curato announced,
approved in July, closing in August
> Operating cash flow seasonally strong
Q2 2016
A provider of healthcare and care services in Scandinavia
0
1
2
3
4
5
6
7
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
2012 2013 2014 2015 2016Rolling 12 m
%SEK m.
Sales EBITDA, % EBITA, %
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BraunAbility
> Organic growth 1 percent in constant
currency
> EBITA improved despite significant
investments in production and R&D
> Process to improve operational excellence
continued
> Operating cash flow improved, reflecting
the seasonality of the business
Q2 2016
A world-leading manufacturer of wheelchair accessible vehicles and wheelchair lifts
0
1
2
3
4
5
6
7
8
9
10
200
250
300
350
400
450
2013 2014 2015 2016Rolling 12 m
%USD m.
Sales EBITDA, % EBITA, %
16
Vectura and Grand Group
Vectura
> Growth of 20 percent, primarily driven by
rental-income from Grand Hôtel and new
Aleris facilities
> New building permissions received
Grand Group
> Growth of 16 percent, driven by all
segments
> EBITA margin increased
Q2 2016
Vectura, develops and manages real estate, including Grand Hôtel and Aleris-related properties
Grand Hôtel, Scandinavia’s leading five-star hotel, and Lydmar Hotel, offering both lodging and food & beverage
-40
-20
0
20
40
60
80
0
50
100
150
200
2013 2014 2015 2016Rolling 12 m
%SEK m.
Sales EBITDA, % EBITA, %
-10
-5
0
5
10
0100200300400500600700
2013 2014 2015 2016Rolling 12 m
%SEK m.
Sales EBITDA, % EBITA, %
17
3 Scandinavia
> Service revenue growth 4 percent
> 53,000 new subscribers, of which 33,000
in Sweden
> EBITDA decreased, impacted by costs
related to a performance-based
compensation program
> Cash flow was strong and SEK 187 m.
was distributed to Patricia Industries
Q2 2016
20
21
22
23
24
25
26
27
28
0
2,000
4,000
6,000
8,000
10,000
12,000
2012 2013 2014 2015 2016Rolling 12 m
%SEK m.
Sales EBITDA, %
3 Scandinavia, a provider of mobile voice and broadband services in Sweden and Denmark18
Financial Investments
> Continued focus on divestments
> SEK 98 m. was invested in Affibody
> NAV contribution SEK 416 m.
Q2 2016
Financial Investments consists of all former Investor Growth Capital (IGC) investments and other holdings19
Leverage development
> Leverage 6.3% (5.5%) as of June 30,
2016
> Reported net debt SEK 17.4 bn.
> Cash and readily available placements
amounted to SEK 15.8 bn.
> Average maturity of the debt portfolio 10.5
years (10.3). -15
-10
-5
0
5
10
15
20
25
30% Leverage development
Leverage target range Leverage Maximum leverage
20
Financial calendar & Contact details
Event Date
Interim Management Statement, January – September 2016 October 19, 2016
Year-End Report, January – December 2016 January 31, 2017
Interim Management Statement, January - March 2017 April 25, 2017
Interim Report, January - June 2017 July 19, 2017
Contact details
Stefan Stern +46 70 636 7417
Head of Corporate Relations, Sustainability and
Communications
Magnus Dalhammar +46 735 24 2130
Head of Investor Relations [email protected]
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A tradition of building companies
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