Year-End Report 2016 - Investor - Home€¦ · Year-End Report 2016 CEO Johan Forssell 1. 2. 2016...
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Year-End Report 2016 CEO Johan Forssell 1
Transcript of Year-End Report 2016 - Investor - Home€¦ · Year-End Report 2016 CEO Johan Forssell 1. 2. 2016...
Year-End Report 2016CEO Johan Forssell
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2016 summary
> Investor fully supports Atlas Copco’s proposal to split into two market-leading companies
> SEK 1.5 bn. invested in listed core investments Ericsson, Wärtsilä and Atlas Copco
> Laborie new subsidiary within Patricia Industries
> Net asset value, with dividend added back, up 13 percent
> Total shareholder return 13 percent (SIXRX 10 percent)
> The Board proposes a dividend of SEK 11.00 per share (10.00) a 10 percent increase
EQT Equity EQT Infrastructure
EQT Midmarket EQT Credit
EQT AB
Financial Investments
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Listed Core Investments
> Total return 14 percent (SIXRX 10 percent)
> SEK 1.5 bn. invested in Ericsson, Wärtsilä and Atlas Copco
> SEK 8.3 bn. in dividends received, up 8 percent
Summary 2016
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Listed Core Investments
> Proposal to split the group into two focused, market-leading companies
> Logical and natural next step
> Strong platforms for continued profitable growth and long-term value creation
> Investor fully supports the proposal
> Both companies will be listed core investments
Atlas Copco
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EQTSummary 2016
> High activity during the year
> Value change +10 percent in constant currency
> SEK 1.0 bn. net cash flow to Investor
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Mölnlycke
> Invest in R&D, new products and
complementary acquisitions
> Grow in emerging markets
> Continued focus on operational
excellence
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Key priorities going forward
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4
8
12
16
20
Sales growth EBITA growth Growth in operatingcash flow
%Performance 2016
+6%
+16%
+11%
Continued growth in 2016Organic growth, constant currency
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0
2
4
6
8
10
12
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16
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Vectura BraunAbility Laborie Aleris Mölnlycke Permobil Grand Group 3 Scandinavia(service rev.)
%
17%
13%
10%
7%6% 6% 6%
5%
Strong distributions in 2016
9*Excluding SEK 860 m. in proceeds from refinancing of Laborie
SEK 2.9 bn.
SEK 0.8 bn.
SEK 0.2 bn.
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1
2
3
4
Mölnlycke 3 Scandinavia Permobil
SEK bn.Total SEK 3.9 bn.*
Strong cash flowLeverage 5.3 percent - essentially flat despite investments and dividend paid
Main sources, SEK 13.2 bn. Main uses, SEK 13.8 bn.
Dividends received,Listed Core Investments
SEK 8.3 bn.
Net cash flow from EQT
SEK 1.0 bn.
Distributions* from Mölnlycke, Permobil, 3 Scandinavia
SEK 3.9 bn.
Dividend paidSEK 7.6 bn.
Investments, Listed Core Investments
SEK 1.5 bn.
Acquisition of Laborie
SEK 4.7 bn.
*Excluding SEK 860 m. in proceeds from refinancing of Laborie 10
Our strategy remains firm
> Grow Net Asset Value
> Operate efficiently
> Pay a steadily rising dividend
Generating an attractive total shareholder return
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0
5
10
15
20
25
30
1 year 5 years 10 years 20 years
%
Total shareholder return
INVE B SIXRX
FinancialsJanuary-December 2016
CFO Helena Saxon
Presentation – January 31st, 2017
Financial highlights
> Net Asset Value (NAV) amounted to SEK
300.1 bn, an increase of SEK 9.4 bn during
the quarter, corresponding to a change of 3%
> Total shareholder return (Investor B-share)
9% compared to 3% SIXRX Index
Q4 2016
300
SEK bn.
0
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100
150
200
250
300
350
96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
Contribution to Net Asset ValueQ4 2016
SEK m.
Listed Core InvestmentsQ4 2016
SEK 248 354 m.78 percent of total assets
Contribution to NAV,
SEK m.
Total return,
Investor (%)
Atlas Copco 4 930 9.3
SEB 4 501 11.5
Saab 1 193 11.9
Wärtsilä 840 6.3
Nasdaq 610 5.4
Electrolux 589 5.7
Sobi 54 0.5
ABB -209 -0.5
Husqvarna -267 -3.7
Ericsson -1 409 -13.1
AstraZeneca -3 467 -11.9
Total* 7 341
Q4 2016
Invested SEK m. Divested SEK m.
Ericsson 1 011
Total 1 011
* Including Management cost
EQTQ4 2016
SEK m.
SEK 13 996 m.5 percent of total assets
Q4 2016
Draw-downs Proceeds to Investor
SEK m. 976 873
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 2016
SEK m.Net cash flow
Patricia IndustriesQ4 2016
Contribution to NAV,
SEK m.
Mölnlycke 809
Vectura 296
Laborie 268
3 Scandinavia 184
BraunAbility 172
Grand Group -13
Aleris -38
Permobil -40
Financial Investments 24
Total* 1 601
Q4 2016
Invested Divested/Distributions
SEK m. 155 4 673
SEK 54 806 m.17 percent of total assets
Financial
InvestmentsSEK 21 067 m.
SEK 3 923 m.
SEK 3 940 m.
SEK 181m.
SEK 2 161 m.
SEK 5 446 m.
SEK 10 024 m.
SEK 3 136 m.
SEK 4 928 m.
* Including Management cost
Mölnlycke
> Organic growth 4 percent in constant
currency
> Both Wound Care and Surgical
contributed to growth
> U.S. and Europe continued to grow,
strong growth in Emerging Markets
> EBITA margin increased driven by mix,
operating leverage
> Continued investments in Procedure
PakTM assembly facility
> Distribution of EUR 300 m to Patricia
Industries
Q4 2016
A provider of advanced products for treatment and prevention of wounds and single-use surgical solutions
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5
10
15
20
25
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35
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400
600
800
1,000
1,200
1,400
1,600
2012 2013 2014 2015 2016
%EUR m.
Sales EBITDA, % EBITA, %
Laborie
> Organic growth 6 percent in constant
currency
> Continued strong performance within
urodynamic business
> EBITA margin impacted by transaction
costs. Underlying margin 25 percent
> Refinancing completed, USD 100 m.
distributed to Patricia Industries
Q4 2016
A leading provider of innovative capital and consumables for the diagnosis and treatment in urologic and gastrointestinal (GI) disorders
Aleris
> Organic growth 3 percent in constant
currency
> Growth mainly driven by Care in Norway
and Denmark
> EBITA margin increase mainly driven by
Curato
> Two of Aleris’ Swedish hospitals again
qualified in the top of a yearly ranking
Q4 2016
A provider of healthcare and care services in Scandinavia
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1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
2012 2013 2014 2015 2016
%SEK m.
Sales EBITDA, % EBITA, %
Permobil
> Organic growth 1 percent in constant
currency
> U.S. sales somewhat lower than last year,
good growth in Europe
> EBITA margin largely unchanged
> SEK 200 m distributed to owners, of which
SEK 194 m to Patricia Industries
Q4 2016
A provider of advanced mobility and seating rehab solutions
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5
10
15
20
25
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500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2012 2013 2014 2015 2016
%SEK m.
Sales EBITDA, % EBITA, %
BraunAbility
> Organic growth 13 percent in constant
currency
> Strong demand for commercial wheelchair
accessible vans (WAVs) and domestic lifts
> EBITA margin slightly higher despite
significant investments
> Continued improvement in production
quality and efficiency
Q4 2016
A world-leading manufacturer of wheelchair accessible vehicles and wheelchair lifts
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2
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6
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200
250
300
350
400
450
2013 2014 2015 2016
%USD m.
Sales EBITDA, % EBITA, %
Vectura and Grand Group
Vectura
> Growth 16 percent
> Grand Hôtel, new Aleris facilities, Hamlet
addition contributed to growth
> New construction project initiated
Grand Group
> Growth 5 percent
> All segments grew, primarily Lodging
> EBITA margin declined somewhat
Q4 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
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100
150
200
2013 2014 2015 2016
%SEK m.
Sales EBITDA, % EBITA, %
-10
-5
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10
0100200300400500600700
2013 2014 2015 2016
%SEK m.
Sales EBITDA, % EBITA, %
3 Scandinavia
> The subscriber base decreased by 10,000
in the quarter
> Hallon and Oister continued to attract
subscribers
> Service revenue growth 7 percent
> EBITDA grew 9 percent
> SEK 623 m distributed to the owners, of
which SEK 249 m to Patricia Industries
Q4 2016
3 Scandinavia, a provider of mobile voice and broadband services in Sweden and Denmark
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2,000
4,000
6,000
8,000
10,000
12,000
2012 2013 2014 2015 2016
%SEK m.
Sales EBITDA, %
Financial Investments
> Continued focus on divestitures
> Net proceeds amounted to SEK 292 m
Q4 2016
Financial Investments consists of all former Investor Growth Capital (IGC) investments and other holdings
SEK 10 024 m.3 percent of total assets
Leverage development
> Leverage 5.3% (5.5%) as of December 31,2016
> Net debt amounted to SEK 16.8 bn
> Cash and readily available placementsamounted to SEK 16.7 bn
> Average maturity of the debt portfolio 10.0years
> After the end of the quarter the SEK 10 bnRevolving Credit Facility was refinanced
Current rating
Standard & Poor’s AA-
Moody’s Aa3
-15
-10
-5
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5
10
15
20
25
30% Leverage development
Leverage target range Leverage Maximum leverage
Financial calendar & Contact details
Event Date
Capital Markets Day March 30, 2017
Interim Management Statement, January – March 2017 April 25, 2017
Annual General Meeting May 3, 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 73 524 2130
Head of Investor Relations [email protected]
Q&A
