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Interim Management Statement January-March 2020

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“The world is experiencing exceptional challenges. From history and experience we know that eventually crises pass and things gradually normalize. In such an environment, it is crucial that our companies balance the need to manage the challenging day-to-day business with continued focus on the critical investments which will strengthen them long-term. Such investments are just as important today as they were a few months ago.”
Johan Forssell, President & CEO of Investor

Highlights during the first quarter

  • Adjusted net asset value (NAV) amounted to SEK 437,919m (SEK 572 per share) on March 31, 2020, a decrease of SEK 47,100m, or -10 percent during the quarter. Total shareholder return amounted to -11 percent during the quarter, compared to -18 percent for the SIXRX return index.

  • Listed Companies generated a total return of -14 percent. Investor purchased shares in ABB for SEK 1.6bn, in Ericsson for SEK 1.1bn and in Electrolux Professional for SEK 0.2bn.

  • Based on estimated market values, the total return for Patricia Industries, excluding cash, amounted to -2 percent 
    (-1 percent including cash) negatively affected by multiple contraction.

  • Sales growth for the major subsidiaries amounted to 13 percent, of which 6 percent organic in constant currency. Reported EBITA grew by 1 percent. Adjusted EBITA grew by 12 percent. Mölnlycke grew organically by 7 percent in constant currency.

  • The value of our EQT investments increased by 11 percent, driven by strong performance in EQT funds (reported with a one-quarter lag) and a total return of 9 percent in EQT AB. Net cash flow to Investor amounted to SEK 0.9bn.

  • Leverage (net debt/reported total assets) was 4.7 percent as of March 31, 2020 (2.8 as of December 31, 2019). Gross cash amounted to SEK 19,810m and the average maturity of Investor AB’s debt portfolio was 10.8 years on March 31, 2020.

  • In order to future-proof Investor and our companies, Investor has decided on three focus areas within sustainability: Business Ethics & Governance, Climate & Resource Efficiency and Diversity & Inclusion.

     

For further information:

Viveka Hirdman-Ryrberg, Head of Corporate Communication and Sustainability, 
Phone +46 70 550 3500
viveka.hirdman-ryrberg@investorab.com

Magnus Dalhammar, Head of Investor Relations, 
Phone +46 73 524 2130
magnus.dalhammar@investorab.com

This information is information that Investor AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 8:15 CET on April 22 2020.

Our press releases can be accessed at www.investorab.com

Investor, founded by the Wallenberg family in 1916, is an engaged owner of high quality global companies. We have a long-term investment perspective. Through board participation, as well as industrial experience, our network and financial strength, we work continuously to support our companies to remain or become best-in-class. Our holdings include, among others, ABB, Atlas Copco, Ericsson, Mölnlycke and SEB.

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