Interim Management Statement January-September 2020
“I am impressed by the management teams in our companies and the way they have handled a challenging year. They have stayed close to their customers, while quickly adapting their operations. I also believe that our companies have done an excellent job in balancing necessary cost reductions with continuation of prioritized investments to future-proof the businesses and emerge as long-term winners.”
Johan Forssell, President & CEO of Investor
Highlights during the third quarter
• Adjusted net asset value (NAV) amounted to SEK 537,358m (SEK 702 per share) on September 30, 2020, an increase of SEK 46,408m, or 9 percent, with dividend added back, during the quarter. Total shareholder return amounted to 19 percent during the quarter, compared to 13 percent for the SIXRX return index.
• Listed Companies generated a total return of 7 percent.
• Based on estimated market values, the total return for Patricia Industries, excluding cash, amounted to 18 percent
(16 percent including cash), driven by multiple expansion and higher earnings (adjusted for items affecting comparability in Sarnova).
• Sales growth for the major subsidiaries amounted to 2 percent, of which 5 percent organic in constant currency. Reported EBITA declined by 1 percent, while adjusted EBITA grew by 7 percent.
• Mölnlycke reported organic sales growth of 29 percent in constant currency, mainly driven by covid-19 related sales of personal protective equipment. This positive impact is expected to remain during the fourth quarter and into 2021, although to a lesser extent. Underlying organic growth was solid in both business areas and the EBITA-margin was in line with last year.
• Patricia Industries announced the acquisition of Advanced Instruments, the global leader in instrumentation and consumables for osmolality testing, for USD 780m in enterprise value.
• The value of our EQT investments increased by 3 percent. Net cash flow to Investor amounted to SEK 0.3bn.
• Leverage (net debt/reported total assets) was 4.7 percent as of September 30, 2020 (2.8 as of December 31, 2019). Gross cash amounted to SEK 14,395m and the average maturity of Investor AB’s debt portfolio was 10.3 years on September 30, 2020.
For further information:
Viveka Hirdman-Ryrberg, Head of Corporate Communication and Sustainability,
Phone +46 70 550 3500
Magnus Dalhammar, Head of Investor Relations,
Phone +46 73 524 2130
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 October 19 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.