Investor: Interim Management Statement January-September 2021

2021-10-18 11:59:49

"We are facing an increasingly complex, fast-moving environment. In the coming years, sustainability, digitalization, an intensifying competition for talent and geopolitics will shape both Investor and our companies. Based on our engaged ownership model, cash flow generation and portfolio of great companies, I am confident that we are well positioned to continue delivering attractive long-term total returns."
Johan Forssell, President & CEO of Investor
Highlights during the third quarter

  • Adjusted net asset value (NAV) amounted to SEK 682,398m (SEK 223 per share) on September 30, 2021, an increase of SEK 23,644m, or 4 percent during the quarter. Total shareholder return amounted to -4 percent, compared to 1 percent for the SIXRX return index. Year-to-date, adjusted NAV growth amounted to 27 percent and total shareholder return to 28 percent, compared to 24 percent for SIXRX.
  • Listed Companies generated a total return of 3 percent. In September, Investor announced its support of Agnafit Bidco's bid for Sobi, valuing Investor's ownership stake at SEK 25.3bn.
  • Based on estimated market values, the total return for Patricia Industries, excluding cash, amounted to -2 percent (-2 percent including cash).
  • Within Patricia Industries, organic sales growth for the major subsidiaries amounted to -1 percent in constant currency. Adjusted EBITA declined by 9 percent. Excluding Mölnlycke, combined organic sales growth for the major subsidiaries amounted to 15 percent in constant currency and adjusted EBITA grew by 24 percent.
  • Mölnlycke reported organic sales growth of -16 percent in constant currency. Year-over-year growth was significantly distorted by the strong contribution from covid-19-related contract sales of Personal Protective Equipment during the third quarter 2020, while the contribution this quarter was zero. Wound Care grew 8 percent organically in constant currency. The EBITA margin decreased, negatively impacted by business area Surgical.
  • Patricia Industries invested a total SEK 5.3bn of equity in strategic add-on acquisitions made by Advanced Instruments, Atlas Antibodies and Sarnova. As of this quarter, Atlas Antibodies is presented as a major subsidiary.
  • The value of Investments in EQT increased by 16 percent. Net cash flow to Investor amounted to SEK 0.3bn.
  • The leverage policy has been updated, now targeting 0-10 percent net debt to total adjusted assets (previously 5-10 percent net debt to total reported assets). According to the updated policy, leverage was 2.5 percent as of September 30, 2021 (3.5 as of December 31, 2020). Gross cash amounted to SEK 24,933m and the average maturity of Investor AB's debt portfolio was 10.0 years on September 30, 2021.
  • Investor announced new and updated climate targets, aligned with limiting global warming to 1.5 degrees and joined the UN campaign "Race to Zero".
This disclosure contains information that Investor is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 18-10-2021 12:00 CET.