Annual Report • Jan 24, 2012
Annual Report
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| Ownership | Share of total | Value, | Value, | Value, | |||
|---|---|---|---|---|---|---|---|
| Number of shares | 12/31 2011 (%) | assets, | SEK/share, | SEK m. | SEK m. | ||
| 12/31 20111) | 2) Capital |
Votes2) | 12/31 2011 (%) | 12/31 2011 | 12/31 2011 | 12/31 2010 | |
| Core Investments3) | |||||||
| Listed | |||||||
| Atlas Copco | 206 895 611 | 16.8 | 22.3 | 18 | 40 | 30 3654) | 34 671 |
| ABB | 179 030 142 | 7.8 | 7.8 | 13 | 31 | 23 1884) | 25 082 |
| SEB | 456 089 264 | 20.8 | 20.9 | 11 | 24 | 18 282 | 25 579 |
| AstraZeneca | 51 587 810 | 4.0 | 4.0 | 9 | 21 | 16 302 | 15 956 |
| Ericsson | 173 728 702 | 5.3 | 21.5 | 7 | 16 | 12 112 | 12 396 |
| Electrolux | 47 866 133 | 15.5 | 29.9 | 3 | 7 | 5 237 | 8 054 |
| Saab | 32 778 098 | 30.0 | 39.5 | 3 | 6 | 4 638 | 4 032 |
| NASDAQ OMX | 18 954 142 | 10.7 | 10.7 | 2 | 4 | 3 216 | - |
| Husqvarna | 97 052 157 | 16.8 | 30.1 | 2 | 4 | 3 062 | 5 058 |
| Sobi | 107 594 165 | 40.3 | 40.5 | 1 | 2 | 1 614 | 3 486 |
| 69 | 155 | 118 016 | 134 314 | ||||
| Subsidiaries | |||||||
| Mölnlycke Health Care | 96 | 93 | 8 | 18 | 13 436 | 13 555 | |
| Aleris | 98 | 99 | 2 | 4 | 3 342 | 2 465 | |
| Grand Hôtel | 100 | 100 | 0 | 2 | 1 208 | 1 091 | |
| 10 | 24 | 17 986 | 17 111 | ||||
| 79 | 179 | 136 002 | 151 425 | ||||
| Financial Investments | |||||||
| EQT | n/a | n/a | 8 | 17 | 13 214 | 10 858 | |
| Investor Growth Capital | 100 | 100 | 6 | 13 | 10 1885) | 8 468 | |
| Partner-owned investments | |||||||
| Gambro Holding | 49 | 49 | 3 | 7 | 5 239 | 1 740 | |
| Lindorff | 58 | 50 | 2 | 6 | 4 337 | 4 0546) | |
| 3 Scandinavia | 40 | 40 | 1 | 3 | 2 3957) | 7208) | |
| Other Partner-owned investments9) | n/a | n/a | 0 | 0 | 180 | 128 11) |
|
| Other Investments10) | 1 | 3 | 2 070 | 4 068 | |||
| 21 | 49 | 37 623 | 30 036 | ||||
| Other Assets and Liabilities | 0 | -1 | -645 | -603 | |||
| Total Assets | 100 | 227 | 172 980 | 180 858 | |||
| Net debt | -22 | -16 910 | -11 472 | ||||
| Net Asset Value | 205 | 156 070 | 169 386 |
1) Holdings, including any shares on loan.
2) Calculated in accordance with the disclosure regulations of Sweden's Financial Instruments Trading Act (LHF). ABB, AstraZeneca and NASDAQ OMX in accordance with Swiss, British and U.S. regulations.
3) Valued according to the class of share held by Investor, with the exception of Saab and Electrolux, for which the most actively traded class of share is used.
4) Includes market value related to derivatives.
5) Including net cash of SEK 1,453 m.
6) Includes Lindorff mezzanine which has been transferred from Other Investments to Lindorff.
7) The increase in reported value for 2011 is mainly related to the positive impact, SEK 1,273 m., from the capitalization of tax-loss carry-forwards during the fourth quarter.
8) Due to a change in accounting policy, the reported value has been restated by SEK -561 m. as of December 31, 2010.
9) Includes holdings in Kunskapsskolan, Novare and Samsari.
10) Includes among others trading, other holdings and land & real estate.
11) Includes holding in NASDAQ OMX which has been transferred to Core Investments during 2011.
| Consumer | |||||||
|---|---|---|---|---|---|---|---|
| SEK m. | Industrials | Healthcare | Financials | IT & Telecom | discretionary | Other | Total |
| Core Investments | |||||||
| Listed | 58 191 | 17 916 | 21 498 | 12 112 | 8 299 | - | 118 016 |
| Subsidiaries | - | 16 778 | - | - | 1 208 | - | 17 986 |
| Financial Investments | 947 | 11 340 | 4 337 | 12 456 | 3 513 | 5 030 | 37 623 |
| Other | - | - | - | - | - | -645 | -645 |
| Total | 59 138 | 46 034 | 25 835 | 24 568 | 13 020 | 4 385 | 172 980 |
The equity markets were weak in 2011 with the Swedish return index (SIXRX) recording a decline of 14 percent. Our net asset value, including reinvested dividends, was down 6 percent. The Investor total return for 2011 was -8 percent.
One part of our strategy is to increase ownership in selected Core Investments in times of attractive valuation levels. During the volatile fourth quarter, we invested a total of SEK 2.1 bn. in ABB, Electrolux and Ericsson. During the last six months we have invested a total of 3.4 bn.
Our focus is on investing in and supporting our existing investments. We also follow other companies, unlisted and listed, that have the potential of becoming Core Investments. In order to add a new Core Investment we must, on a friendly basis, become a lead owner with significant influence.
Private initiatives play an important role to bring innovation, more choices and an efficient use of public resources to the health care sector. A private operator can only have a sustainable business if it delivers a quality level meeting expectations. We hope the current discussions in Sweden will lead to stronger emphasis on quality and a continued transition from tenders to free choice. Our ownership horizon for Aleris is long-term and our focus, working with the skilled staff of Aleris, is to continuously improve quality of service.
Mölnlycke Health Care continues to grow profitably despite tighter budgets within the health care system. The company's strong cash flow generation allowed it to reduce net debt by EUR 96 m. in 2011. Mölnlycke is a highly profitable and capital light business, making growth very value accretive.
EQT made several good exits resulting in a net cash flow to Investor of SEK 1 bn. during 2011. We committed EUR 300 m. to EQT VI and as a sponsor we will get part of the carried interest and surplus management fees. The combination of EQT's top-tier industry performance and our sponsor economics makes investing in EQT funds financially very attractive for us.
IGC performed well in 2011 and delivered a money multiple on all realized investments (including write-offs) of 2.2x. Since we implemented the new structure by July 1, IGC has realized proceeds from divestitures of USD 209 m. resulting in a distribution to Investor of SEK 674 m. In July, we committed our first capital to the new structure and the final installment, SEK 750 m., was paid early January 2012.
Our value of 3 Scandinavia has increased by SEK 1.4 bn. during the quarter primarily due to the capitalization of accumulated tax-loss carry-forwards. It is likely that past losses will be utilized given 3 Scandinavia's performance. We have included the positive impact in our net asset value as our view of the business's intrinsic value well defends this.
Our vision is to be recognized as a premier investor, supporting the development of our portfolio companies to become best-inclass and thereby creating long-term value for our shareholders.
We own high quality companies, through significant minority interests or as subsidiaries. Through our participation on the boards of directors, we work for continuous improvement of the performance of the companies. With our industrial experience, network and financial strength we strive to make our companies best-in-class. Our cash flow allows us to support our companies in their strategic initiatives, capture investment opportunities and provide our shareholders with a dividend.
Our objective is to build the net asset value, operate efficiently and pay out a steadily rising dividend. Over time, this should allow us to generate an attractive total return to our shareholders. We always require a positive net present value to commit to any investments. Our long-term return requirement (given normal financial gearing) is the risk-free interest rate plus an equity risk premium, i.e. 8-9 percent. However, we believe evaluating our return against this requirement is only appropriate over longer time periods. Benchmarking how we perform in building net asset value with dividend added back is important, and we believe the Swedish stock market as reflected by the total return index SIXRX is the most relevant benchmark considering the overall risk profile of our portfolio.
A healthy and over time rising dividend is important for our shareholders. We believe our dividend policy of distributing a high percentage of dividends received from listed Core Investments and making a distribution in line with the yield on other net assets captures the underlying performance of our holdings. The board proposes a dividend for 2011 of SEK 6.00 per share.
Speculators commonly focus on what the price of an asset will do short term, while investors focus on what cash flow the asset will generate. An important driver of our share price is the development of the discount. Our discount to net asset value has fluctuated between 20 and 40 percent over the past 35 years. Clearly, getting the timing right on the discount greatly enhances performance, but unfortunately, the opposite also holds true. Our focus is on growing the intrinsic value of our holdings, i.e. our net asset value. The market will set the discount. We believe that our simplified structure, with its lower operating costs, increases our expected net asset value growth and gives a strong platform for future cash flow and thus good prospects for a steadily rising dividend. In combination, this may well result in a structurally lower discount longer term.
The internal restructuring initiated during the spring 2011 allows us to lower our costs by SEK 140 m. with full run-rate effect by the end of 2012. By year-end 2012, our yearly run rate costs should approach SEK 350 m, as IGC, like our other operating subsidiaries, is carrying its own costs.
We continue to support our holdings in making value creating investments in R&D, product launches and deeper penetration into growth markets. We are dedicated to holding our Core Investments for a long time. Our diversified portfolios of iconic companies in combination with our financial strength provide stability and allow us act on opportunities in a volatile world. We continue to believe luck never gives – it only lends.
We depend on having the right people in our companies. I would like to take the opportunity to praise the boards and staff in our companies and at Investor for their relentless work during 2011. It was not an easy year, but we are well prepared to capture opportunities during 2012, as well as to carefully execute the daily grind of being an active owner. Successfully executed, this will result in our net asset value, with dividend added back, outgrowing the general market over time.
Börje Ekholm
In 2011, the net asset value decreased from SEK 169.4 bn. at year end 2010 to SEK 156.1 bn. The change in net asset value, with dividend added back, was -6 percent during 2011 (21) 1) . During the fourth quarter, the corresponding change was 8 percent (12). During the same periods, the total returns of the Stockholm Stock Exchange (SIXRX) were -14 percent and 8 percent respectively.
1) For balance sheet items, figures in parentheses refer to year-end 2010 figures. For income items, the figures in parentheses refer to the same period last year.
| SEK m. | 10/1-12/31 2011 |
1/1-12/31 2011 |
1/1-12/31 2010 |
|---|---|---|---|
| Changes in value | 11 513 | -17 586 | 28 492 |
| Dividends | 31 | 4 330 | 3 622 |
| Other operating income1) | 128 | 480 | 994 |
| Management costs | -101 | -656 2,3) | -646 |
| Other items4) | 696 | 4 144 | -1 851 |
| Profit (+)/Loss (-) | 12 267 | -9 288 | 30 611 |
| Non-controlling interest | -12 | 59 | 20 |
| Dividend | - | -3 802 | -3 050 |
| Other effects on equity | -209 | -285 | -381 |
| Total | 12 046 | -13 316 | 27 200 |
1) Includes interest received on loans to associates.
2) Includes SEK 72 m. in direct costs related to Investor Growth Capital up until June 30, 2011.
3) Includes a restructuring charge of SEK 150 m. during the first quarter of 2011.
4) Other items include, among other share of results of associates.
| 10/1-12/31 | 1/1-12/31 | 1/1-12/31 |
|---|---|---|
| 2011 | 2011 | 2010 |
| 10 748 | -17 939 | 29 340 |
| 1 302 | 9 687 | 1 664 |
| -4 | -1 262 | -754 |
| - | -3 802 | -3 050 |
| 12 046 | -13 316 | 27 200 |
Net debt totaled SEK 16,910 m. on December 31, 2011 (11,472), corresponding to leverage of 9.8 percent (6.3). The average maturity of the debt financing is 11.2 years. (12.1) Except for maturities of SEK 2 bn. in 2012, there are no maturities before 2016. Debt financing of the subsidiaries within Core Investments and the partner-owned holdings within Financial Investments, except for 3 Scandinavia which Investor guarantees with its pro-rata share, is arranged on an independent ring-fenced basis and hence not included in Investor's net debt.
| Business Area Overview | ||||
|---|---|---|---|---|
| Type of investment | Type of ownership | Valuation methodology | Goal | |
| Core Investments – Listed |
Well-established, global companies. Long ownership horizon. |
Significant minority ownership for strategic influence. |
Share price (bid). | 8-9 percent long term annual return. |
| Core Investments – Subsidiaries |
Medium- to large-size companies with international operations. Long ownership horizon. |
Majority ownership for strategic influence. |
Subsidiaries are valued according to the acquisition method. |
8-9 percent long term annual return. |
| Financial Investments |
EQT | Largest investor in EQT's funds. | Unlisted holdings at multiple or third-party valuation, listed shares at share price (bid). |
15 percent annual return on average for the business area. |
| Investor Growth Capital | Leading minority ownership in expansion stage companies. |
Unlisted holdings at multiple or third-party valuation, listed shares at share price (bid). |
||
| Partner-owned investments | Significant minority ownership for strategic influence. |
Equity method. Income and balance sheet items reported with one month's delay. |
Core Investments contributed to the net asset value by SEK -17,939 m. in 2011 (29,340), of which SEK 10,748 m. in the fourth quarter (15,271). The listed holdings contributed with SEK -17,889 m. (27,098), of which SEK 11,127 m. in the fourth quarter (12,797). The subsidiaries contributed with SEK 87 m. (2,346) of which SEK -343 m. in the fourth quarter (2,499).
Read more at www.investorab.com under "Our Investments" >>
Core Investments comprises of the listed holdings and the subsidiaries Mölnlycke Health Care, Aleris and Grand Hôtel.
SEK 2,075 m. was invested, of which SEK 2,075 m. in listed Core Investments and SEK 0 m. in the subsidiaries.
During the first nine months of 2011, SEK 4,048 m. was invested, of which SEK 3,029 m. in listed Core Investments and SEK 1,019 m. in the subsidiaries.
Mandatory redemption shares in Atlas Copco were sold for SEK 1,027 m.
| SEK m. | 10/1-12/31 2011 |
1/1-12/31 2011 |
1/1-12/31 2010 |
|---|---|---|---|
| Changes in value, listed | 11 127 | -21 887 | 23 895 |
| Dividends, listed | - | 3 998 | 3 203 |
| Change in reported value, subsidiaries | -343 | 87 | 2 346 |
| Management cost | -36 | -137 | -104 |
| Total | 10 748 | -17 939 | 29 340 |
Listed Core Investments contributed to net asset value with SEK -17,889 m. in 2011 (27,098) of which SEK 11,127 m. in the fourth quarter (12,797). The combined total return for the listed holdings amounted to -13 percent during the year, of which 10 percent during the fourth quarter.
Read more at www.investorab.com under "Our Investments" >>
In line with our strategy of increasing positions in selected Core Investments, when we find valuations fundamentally attractive and timing compelling, we added to several of our investments during the quarter. In total, we invested SEK 2,075 m.
11,200,000 shares were purchased in ABB.
In Electrolux 550,000 B-shares were acquired and 100,000 A-shares were divested.
In Ericsson 12,354,669 B-shares were swapped for Ashares and 9,650,000 B-shares were acquired.
1,500,000 shares were purchased in ABB and 1,424,285 Bshares were purchased in Atlas Copco.
In Electrolux, 5,500,000 B-shares were acquired, 250,000 A-shares were divested and 500,000 A-shares were converted to B-shares.
10,084,465 B-shares were purchased and 3,700,000 Ashares were divested in Husqvarna.
1,950,000 shares in NASDAQ OMX were purchased in addition to the shares purchased through a forward agreement from Borse Dubai in December 2010.
In Sobi, 21,518,833 shares were purchased, representing Investor's pro rata-share of the company´s rights issue.
Dividends from listed Core Investments totaled SEK 3,998 m. in 2011 (3,203), of which SEK – m. in the fourth quarter (–).
During the second quarter, a redemption program was carried out in Atlas Copco. Investor sold 205,471,326 redemption shares for a total of SEK 1,027 m.
| Total return for Investor1) 2011 (%) |
Total market return 2011 (%) |
Average total market return2) 5 years (%) |
|
|---|---|---|---|
| ABB | -10.9 | -11.4 | 3.2 |
| AstraZeneca | 7.8 | 7.8 | 1.3 |
| Atlas Copco | -7.5 | -7.6 | 12.2 |
| Electrolux | -40.7 | -39.3 | 1.3 |
| Ericsson | -4.7 | -4.7 | -10.2 |
| Husqvarna | -41.4 | -40.8 | -12.7 |
| NASDAQ OMX | 6.13) | 5.3 | - |
| Saab | 17.9 | 17.9 | -5.2 |
| SEB | -25.9 | -25.9 | -16.7 |
| Sobi | -61.1 | -61.1 | - |
1) Calculated as the sum of share price changes and dividends added back, including addon investments and/or divestments.
2) Calculated as the sum of share price changes and reinvested dividends (source AlertIR/Millistream).
3) The corresponding return in USD terms was 3.3 percent for the year.
Read more at www.atlascopco.com >>
Atlas Copco is a global leader in compressors, construction and mining equipment, power tools and assembly systems. The Group operates in more than 170 countries.
| Market value, Investor's holding, SEK m. | 30 365 |
|---|---|
| Investor's ownership (capital), % | 16.8 |
| Share of Investor's total assets, % | 18 |
Investor's view: Atlas Copco has world leading market positions and a strong corporate culture. The company has for a long time had best-in-class operational performance and has generated a total return significantly above its peers. Over the last years, Atlas Copco has focused on building strong positions in key growth markets such as China, India and Brazil, and on building a world class aftermarket operation. These initiatives have been instrumental to the strong performance. Going forward, the strong market positions, a flexible business model and a strong focus on innovation give the company an excellent platform to capture business opportunities and to continue to outperform its peers. Due to its strong cash flow, the company can distribute significant capital to shareholders, while simultaneously retaining flexibility to act on its growth strategy.
Read more at www.abb.com >>
ABB is a global leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact. The Group operates in around 100 countries.
| Market value, Investor's holding, SEK m. | 23 188 |
|---|---|
| Investor's ownership (capital), % | 7.8 |
| Share of Investor's total assets, % | 13 |
Investor's view: ABB has a strong brand and market leading positions in attractive industries. The Power and Automation industries have large emerging market exposure and structural growth drivers in terms of electricity build out and an increased focus on energy efficiency. Over the last few years, ABB has made significant operational improvements which have resulted in good profitability, even in a Power market with price pressure. ABB was early to establish presence in China and India with strong local product offerings, a prerequisite to succeed long-term. In recent years the company has further strengthened its positions through several acquisitions and it will be important to successfully integrate these. ABB's balance sheet remains strong, supporting further growth and/or continued distribution to shareholders.
SEB is a leading Nordic financial services group. The international nature of SEB's business is reflected in its presence in 20 countries, with main focus on the Nordic countries, Germany and the Baltics.
| Market value, Investor's holding, SEK m. | 18 282 |
|---|---|
| Investor's ownership (capital), % | 20.8 |
| Share of Investor's total assets, % | 11 |
Investor's view: With the sale of the German retail operation and some improvement in the Baltic economies, we believe that SEB is well positioned to handle both challenges and capture opportunities. The SEB franchise and customer relationships have remained strong throughout the crisis, which should support SEB's business model as a leading relationship bank going forward. Swedish regulators have announced new capital requirements that are higher than the proposed Basel III rules. While some uncertainty remains regarding the final regulatory outcome, our view is that SEB is well capitalized and well prepared to meet the new requirements and should be able to focus on growth in the small and medium-sized enterprises segment in Sweden, as well as on the corporate segments outside of Sweden.
Read more at www.astrazeneca.com >>
AstraZeneca is a global, innovation-driven biopharmaceutical business with a primary focus on the discovery, development and commercialization of prescription medicines for six important areas of healthcare.
| Market value, Investor's holding, SEK m. | 16 302 |
|---|---|
| Investor's ownership (capital), % | 4.0 |
| Share of Investor's total assets, % | 9 |
Investor's view: As market conditions continue to be challenging and as AstraZeneca faces patent expirations for some of its key products in the coming years, it is important that the company handles this transition and further strengthens its research pipeline. Improved R&D productivity remains the most important driver of long-term value for AstraZeneca and the pharmaceutical industry. It is also important that AstraZeneca continues to expand in emerging markets and strives for operational excellence.
Ericsson is the world's leading provider of technology and services for telecom operators. Ericsson is the leader in 2G, 3G and 4G mobile technologies.
| Market value, Investor's holding, SEK m. | 12 112 |
|---|---|
| Investor's ownership (capital), % | 5.3 |
| Share of Investor's total assets, % | 7 |
Investor's view: As the global leader, Ericsson is well positioned to benefit from the secular growth of mobile data traffic. In the short and medium term, a key priority is to manage the ongoing modernization of customers' networks into newer data enabling technologies. Sustaining technological leadership and continuously improving cost and capital efficiency is fundamental to Ericsson's long-term competitiveness. Continuing growth in the services business and gaining a strategic position in other growth segments are also important to Ericsson's future value creation, as is improving the performance of the ST Ericsson joint venture.
Saab serves the global market with world leading products, services and solutions ranging from military defense to civil security. Saab constantly develops, adopts and improves new technology.
| Market value, Investor's holding, SEK m. | 4 638 |
|---|---|
| Investor's ownership (capital), % | 30.0 |
| Share of Investor's total assets, % | 3 |
Investor's view: Saab is well positioned in many niche markets. However, it is still highly dependent on binary outcomes in large defense contract tenders. As Swedish defense spending has decreased over the last decade, Saab has developed cost efficient products, which in the current environment of political pressure and fiscal austerity can be a competitive advantage. With top-quality products, continued focus on operational efficiency and with a solid balance sheet, Saab has a strong platform for the future. Going forward, growth outside of Sweden continues to be imperative, as well as the ability to generate a good gross margin to support internal R&D and marketing efforts.
Electrolux is a global leader in household appliances and appliances for professional use, selling more than 40 million products to customers in more than 150 markets every year.
| Market value, Investor's holding, SEK m. | 5 237 |
|---|---|
| Investor's ownership (capital), % | 15.5 |
| Share of Investor's total assets, % | 3 |
Investor's view: The appliances industry is competitive with low growth in mature markets and the historic operating profit margin has been below the company's targeted level. Successful execution of Electrolux's strategy focusing on innovative products, a strong global brand and an improved cost position through globalization and modularization, has good potential to structurally improve the long-term operating margin. Recently, Electrolux has made several acquisitions in growth markets to improve future growth prospects. Successful integration of these will be important.
Read more at www.nasdaqomx.com >>
NASDAQ OMX is one of the world's largest exchange operators. It offers listings, trading exchange technology and public company services across six continents, with approximately 3,600 listed companies.
● NASDAQ OMX continued to expand its non-transaction businesses through small bolt-on acquisitions. During the quarter, the company acquired Glide Technologies, a software provider specializing in corporate communications, and RapiData, a provider of economic news for trading firms and financial institutions.
| Market value, Investor's holding, SEK m. | 3 216 |
|---|---|
| Investor's ownership (capital), % | 10.7 |
| Share of Investor's total assets, % | 2 |
Investor's view: NASDAQ OMX has very strong market positions and a unique brand in an industry that we know well. An exchange is at the core of the financial system's infrastructure and we believe that over time more products will be standardized and thus traded on exchanges. Our view is that continued focus on capturing growth opportunities, such as expanding into adjacent businesses and into new markets, should be value creative. The company's strong cash flow gives support to continued cash distribution to its shareholders.
Read more at www.husqvarna.com >> Read more at www.sobi.com >>
Husqvarna is a global leader in chainsaws, trimmers, lawn mowers, garden tractors, cutting equipment and diamond tools and a European leader in consumer irrigation equipment under the Gardena brand.
● Hans Linnarson was appointed CEO and President of Husqvarna following six months as acting CEO and President. He previously held the position of Executive Vice President, Head of Sales Europe & Asia/Pacific.
| Market value, Investor's holding, SEK m. | 3 062 |
|---|---|
| Investor's ownership (capital), % | 16.8 |
| Share of Investor's total assets, % | 2 |
| Investor's view: Husqvarna has world-leading market positions, strong |
brands and a global sales organization. In recent years, however, the company has struggled with both weak market development and operational performance. As a consequence, the total return has been below both peers and our return requirement. We believe in Husqvarna's long-term potential based on its world-leading position in the global market for outdoor equipment. To improve performance, Husqvarna has invested in new innovative products and streamlined its brand portfolio. This, in combination with a strong focus on operational performance is important for performance going forward.
Sobi is a Swedish specialty pharmaceutical company with international market presence, focusing on providing and developing specialist pharmaceuticals for rare disease patients.
| Market value, Investor's holding, SEK m. | 1 614 |
|---|---|
| Investor's ownership (capital), % | 40.3 |
| Share of Investor's total assets, % | 1 |
Investor's view: Sobi is well positioned to benefit from opportunities in attractive segments of the pharmaceutical market. However, improving operational performance and successfully completing the post-merger integration of Biovitrum and Swedish Orphan International, which should result in improved cost and capital efficiency, is important. Sobi should also continue to focus on business development and securing the full commercial potential of its late stage development pipeline.
The subsidiaries contributed to the net asset value with SEK 87 m. in 2011 (2,346), of which SEK -343 m. during the fourth quarter (2,499).
Read more at www.investorab.com under "Our Investments" >>
The subsidiaries are Mölnlycke Health Care, Aleris and Grand Hôtel.
No investments or divestments were made.
Investor contributed SEK 769 m. in equity financing relating to Aleris' acquisition of Proxima and SEK 250 m. relating to the acquisition of Hamlet.
The subsidiaries' reported values and contribution to net asset value are shown in the tables below.
| 12/31 2011 | 12/31 2010 | |||
|---|---|---|---|---|
| SEK/share | SEK m. | SEK/share | SEK m. | |
| Mölnlycke Health | ||||
| Care | 18 | 13 436 | 18 | 13 555 |
| Aleris | 4 | 3 3421) | 3 | 2 465 |
| Grand Hôtel | 2 | 1 208 | 2 | 1 091 |
| Total | 24 | 17 986 | 23 | 17 111 |
1) The increase in reported value during 2011 is mainly related to equity-financed acquisitions.
| 2011 | 2010 | |||||
|---|---|---|---|---|---|---|
| SEK m. | Q4 | YTD | Q4 | YTD | ||
| Mölnlycke Health Care | -259 | 110 | 2 487 | 2 376 | ||
| Aleris | -82 | -140 | -2 | -56 | ||
| Grand Hôtel | -2 | 117 | 14 | 26 | ||
| Total | -343 | 87 | 2 499 | 2 346 |
The subsidiaries contributed SEK 87 m. to net asset value during 2011 (2,346), of which SEK -343 m. during the fourth quarter (2,499). Mölnlycke Health Care's negative contribution during the fourth quarter was mainly related to foreign exchange rate effects.
Read more at www.molnlycke.com >>
business and Antiseptics. Margins increased somewhat during the quarter reflecting lower costs in several areas.
| 2011 | 2010 | |||||
|---|---|---|---|---|---|---|
| Income statement items | Q4 | YTD | Q4 | YTD | ||
| Sales, EUR m. | 267 | 1 014 | 246 | 949 | ||
| Sales growth, % | 9 | 7 | 9 | 10 | ||
| Sales growth, constant currency, % | 8 | 7 | 4 | 6 | ||
| 1), EUR m. EBITDA, adj. |
82 | 296 | 74 | 269 | ||
| EBITDA, adj. % | 31 | 29 | 30 | 28 | ||
| EBITDA, EUR m. | 82 | 251 | 70 | 265 | ||
| EBITDA % | 31 | 25 | 28 | 28 | ||
| Balance sheet items | Q4 2011 | Q4 2010 |
|---|---|---|
| Net debt, EUR m. | 1 482 | 1 578 |
| Number of employees | 6 755 | 6 985 |
| 2011 | 2010 | |||
|---|---|---|---|---|
| Cash flow items | Q4 | YTD | Q4 | YTD |
| EBITDA, adj.1) , EUR m. |
82 | 296 | 74 | 269 |
| Change in working capital | 6 | -31 | 42 | 7 |
| Capital expenditures | -13 | -35 | -14 | -30 |
| Operating cash flow | 75 | 230 | 102 | 246 |
| Acquisitions/divestments | 0 | 0 | -4 | -19 |
| Shareholder contribution/distribution | 0 | 0 | -4 | 2 |
| Other2) | -51 | -134 | -34 | -134 |
| Increase(-)/decrease (+) in net debt | 24 | 96 | 60 | 95 |
| Key ratios | ||||
| Working capital/sales, % | 11 | |||
| Capital expenditures/sales, % | 3 |
1) Excluding the purchase price allocation, performed in conjunction with the acquisition of the majority in Mölnlycke Health Care, allocating EUR 49 m. to inventory. The consumption of this market value impacted EBITDA negatively by EUR 4 m. during the fourth quarter 2010 and EUR 45 m. during the first quarter of 2011.
2) Other mainly includes effects of exchange rate changes, interest, tax, value change of derivatives and other non-cash items.
| Investment year | 2007/2010 |
|---|---|
| Capital invested, SEK m. | 10 6631) |
| Investor's ownership (capital) % | 96 |
| Reported value, Investor's share, | |
| December 31, 2011, SEK m. | 13 4361) |
1) Including mezzanine loans. In Investor's share of reported value as of December 31, 2011, the amount included was SEK 249 m.
Mölnlycke Health Care is a world-leading manufacturer of single-use surgical and wound care products and services for the professional health care sector.
Investor's view: Mölnlycke Health Care is a strongly performing company and a true leader in its industry segments. Since our acquisition, the company has outperformed most of its key competitors in terms of growth, profitability and cash conversion. Its highly competitive product offering, strong market positions, exciting product pipeline and the expansion of its sales force, both in existing and new markets, create a robust platform for continued growth. It is important that the company continues to bring forward new innovative products and capture the growth available in growth regions such as Asia.
Read more at www.aleris.se >>
| 2011 | 2010 | |||
|---|---|---|---|---|
| Income statement items | Q4 | YTD | Q4 | YTD |
| Sales, SEK m. | 1 593 | 5 123 | 1 068 | 4 120 |
| Sales growth, % | 49 | 24 | 4 | 6 |
| Sales growth, constant currency, % |
41 | 18 | 8 | 8 |
| EBITDA, SEK m. | 138 | 410 | 65 | 296 |
| EBITDA % | 9 | 8 | 6 | 7 |
| Balance sheet items | Q4 2011 | Q4 2010 | ||
| Net debt, SEK m. | 2 811 | 2 0252) | ||
| Number of employees | 5 150 | 3 775 | ||
| 2011 | 2010 | |||
| Cash flow items | Q4 | YTD | Q4 | YTD |
| EBITDA | 138 | 410 | 65 | 296 |
| Change in working capital | 40 | -64 | 11 | 11 |
| Capital expenditures | -56 | -133 | -19 | -80 |
| Operating cash flow | 122 | 213 | 57 | 227 |
| Acquisitions/divestments | ||||
| -201 | -1 714 | -20 | -20 | |
| Shareholder contribution/distribution |
0 | 1 019 | 0 | 0 |
| Other3) | -102 | -304 | -110 | -608 |
| Working capital/sales, % | -2 |
|---|---|
| Capital expenditures/sales, % | 3 |
1) Owned and consolidated by Investor since August 2010.
2) Numbers have been restated.
3) Other includes effects of exchange rate changes, interest, tax, value change of derivatives and other non-cash items.
| Investment year | 2010 |
|---|---|
| Capital invested, SEK m. | 3 540 |
| Investor's ownership (capital) % | 98 |
| Reported value, Investor's share, | |
| December 31, 2011, SEK m. | 3 342 |
Aleris is one of the leading providers of healthcare and care in the Nordic region. Aleris provides services on behalf of municipalities, county councils and insurance companies within four different areas; healthcare, diagnostics, senior care and mental health.
Investor's view: Aleris has a strong market position in Scandinavia and a significant long-term growth potential in an industry that fits well into our ownership model. The Scandinavian healthcare and care market is a large and stable industry with long-term sustainable growth potential, where private providers can outgrow the market given the ongoing outsourcing and deregulation trend. Aleris is an attractive platform for continued organic growth, from underlying growth driven by demographics, through tenders, and other deregulation actions such as "free choice" for patients. Aleris is also a good platform for continued acquisitions. Aleris' commitment to highquality health care and care resonates well with our long-term ambitions for the company. Delivering a high-quality service is the main differentiating and sustainable factor in this business long-term, why the work to constantly improve quality and service for patients and payors is the top priority.
| 2011 | 2010 | |||
|---|---|---|---|---|
| Income statement items | Q4 | YTD | Q4 | YTD |
| Sales, SEK m. | 123 | 396 | 108 | 393 |
| Sales growth, % | 14 | 1 | -1 | 7 |
| EBITDA, SEK m. | 25 | 67 | 21 | 95 |
| EBITDA % | 20 | 17 | 19 | 24 |
| Balance sheet items | Q4 2011 | Q4 2010 | ||
| Net debt, SEK m. | 545 | 481 | ||
| Number of employees | 260 | 295 | ||
| 2011 | 2010 | |||
| Cash flow items | Q4 | YTD | Q4 | YTD |
| EBITDA | 25 | 67 | 21 | 95 |
| Change in working capital | 12 | 13 | 8 | 3 |
| Capital expenditures | -12 | -110 | -22 | -72 |
| Operating cash flow | 25 | -30 | 7 | 26 |
| Acquisitions/divestments | 0 | 0 | 0 | 0 |
| Shareholder contribution/distribution | 0 | 0 | 0 | 0 |
| Other1) | -15 | -34 | -6 | 17 |
| Increase(-)/decrease(+) in net debt |
10 | -64 | 1 | 43 |
| Key ratios | ||||
| Working capital/sales, % | -7 | |||
| Capital expenditures/sales, % | 28 |
1) Other includes interest, tax, group contribution and dividends received/paid
| Investment year | 1968 |
|---|---|
| Capital invested, SEK m. | 577 |
| Investor's ownership (capital) % | 100 |
| Reported value, Investor's share, December 31, 2011, SEK m. |
1 208 |
Grand Hôtel is Scandinavia's leading five-star hotel, opened in 1874, and has a unique offering with 300 guest rooms and suites, 24 banqueting and conference areas as well as restaurants, bars and a world class spa.
Investor's view: Grand Hôtel has a unique brand, location, and property. In recent years, Grand Hôtel has gone through significant internal changes such as renovations and openings of new facilities, like its spa, while handling the challenging economic climate. It is important that Grand Hôtel continues to develop its offering, reach new customer segments, increase the occupancy rate, and focus on efficiency, without compromising on the delivery of a superior hotel experience. This is particularly important given the increased competition from new hotel capacity, restaurants and conference facilities in the Stockholm area. Further investments in the property will also be important to sustain a superior product and to build long-term value.
Financial Investments contributed to the net asset value with SEK 9,687 m. in 2011 (1,664), of which SEK 1,302 m. during the fourth quarter (2,092). The positive contributions during the period came mainly from Gambro Holding's divestment of CaridianBCT and strong performance in the EQT's funds.
Read more at www.investorab.com under "Our Investments" >>
Financial Investments includes the investments in EQT funds, Investor Growth Capital, and the partner-owned investments.
SEK 938 m. was invested. Proceeds amounted to SEK 376 m.
SEK 3,868 m. was invested. Proceeds amounted to SEK 5,555 m.
| 12/31 2011 | 12/31 2010 | |||
|---|---|---|---|---|
| SEK/Share | SEK m. | SEK/Share | SEK m. | |
| EQT1) | 17 | 13 214 | 14 | 10 858 |
| Investor Growth Capital | 13 | 10 1882) | 11 | 8 468 |
| Partner-owned | ||||
| Gambro Holding | 7 | 5 239 | 2 | 1 740 |
| Lindorff | 6 | 4 337 | 5 | 4 0543) |
| 3 Scandinavia | 3 | 2 3954) | 1 | 7205) |
| Other Partner-owned6) | 0 | 180 | 0 | 128 |
| Other7) | 3 | 2 070 | 5 | 4 0688) |
| Total | 49 | 37 623 | 38 | 30 036 |
1) Includes the holding in EQT Partners AB.
2) Of which SEK 1,453 m. in net cash.
3) Includes Lindorff mezzanine which has been transferred from Other to Lindorff.
4) The increase in reported value for 2011 is mainly related to the positive impact, SEK
1,273 m., from the capitalization of tax-loss carry-forwards during the fourth quarter. 5) Due to a change in accounting policy, the reported value has been restated by
SEK -561 m. as of December 31, 2010.
6) Includes holdings in Kunskapsskolan, Novare and Samsari.
7) Includes among others, trading, smaller holdings and land & real estate. 8) Includes holdings in NASDAQ OMX which have been transferred to Core Investments during 2011, and Active Portfolio Management.
| 2011 | 2010 | ||||
|---|---|---|---|---|---|
| SEK m. | Q4 | YTD | Q4 | YTD | |
| EQT | -153 | 3 360 | 1 107 | 1 179 | |
| Investor Growth Capital | 165 | 841 | 639 | 22 | |
| Partner-owned | |||||
| Gambro Holding | -70 | 3 4991) | -110 | -319 | |
| Lindorff | -133 | 301 | 30 | 281 | |
| 3 Scandinavia | 1 3592) | 1 6752) | -47 | -283 | |
| Other partner-owned | -2 | 0 | 5 | 17 | |
| Other | 155 | 201 | 535 | 1 104 | |
| Management cost | -19 | -190 | -67 | -337 | |
| Total | 1 302 | 9 687 | 2 092 | 1 664 |
1) The positive contribution from Gambro Holding YTD 2011 is explained by the
divestment of CaridianBCT during the second quarter 2011. 2) Capitalization of prior years' deferred tax-loss carry-forwards as well as a change of recognition method of handset sales has had a positive impact on the results during 2011. For further information, see 3 Scandinavia on page 16.
| SEK m. | 10/1-12/31 2011 |
1/1-12/31 2011 |
1/1-12/31 2010 |
|---|---|---|---|
| Net asset value, beginning of period | 13 162 | 10 858 | 9 166 |
| Contribution to net asset value (value change) |
-153 | 3 360 | 1 179 |
| Draw-downs (investments and management fees) |
325 | 2 515 | 2 016 |
| Proceeds to Investor (divestures, fee surplus and carry) |
-120 | -3 519 | -1 503 |
| Net asset value, end of period | 13 214 | 13 214 | 10 858 |
At year-end, the five largest investments were (in alphabetical order): Gambro (Sweden), ISS (Denmark), Kabel BW (Germany), Sanitec (Finland), and Springer Science+Business Media (Germany) representing 35 percent of the total value of Investor's investments in EQT funds.
| Brief facts, EQT | |
|---|---|
| Investment year | 1994/1995 |
| Investor's share of funds % | 6-64 |
| Market value, Investor's holding, SEK m. | 13 214 |
| Share of Investor's total assets, % | 8 |
EQT's funds invest in companies in Northern and Eastern Europe, Asia and the U.S., in which EQT can act as a catalyst to transform and grow operations. EQT has raised 14 funds active in buy-outs, equity-related growth financing, credit and infrastructure. Valuation is to a large extent based on multiples, as holdings are typically mature and relevant peers are often available.
Investor's view: Investor has been a sponsor of EQT since its inception more than 15 years ago. Since then, EQT has delivered top investment performance in its industry and we have received returns on our limited partner interest in the top quartile of the industry. As a sponsor, we also have an ownership interest in the general partners of the funds, allowing us to capture a portion of the carry and of any surplus from management fees. This represents a significant enhancement of our total return from the respective funds over time. Although "lumpy" by nature, depending on whether the funds are in an investment or divestment phase, our investments in the EQT funds are expected to continue to generate strong cash flow.
As of July 1, 2011, Investor Growth Capital (IGC) is a standalone entity, wholly-owned by Investor. It carries its own costs, and has a defined capital commitment from Investor. In early 2012, Investor contributed a final SEK 750 m. to IGC. Approximately 50 percent of gross proceeds less transaction related expenses and annual operating cost is distributed to Investor, while the remainder can be reinvested by IGC.
| SEK m. | 10/1-12/31 2011 | 7/1-12/31 2011 |
|---|---|---|
| Net asset value, beginning of period | 10 252 | 8 694 |
| Contribution to net asset value (value change) |
165 | 1 031 |
| Capital contribution from Investor | - | 1 137 |
| Distribution to Investor | -229 | -674 |
| Net asset value, end of period | 10 188 | 10 188 |
| Of which net cash | 1 453 | 1 453 |
At year-end, the U.S., Asian and European portfolios represented 65, 15, and 20 percent of the total value.
The five largest investments were (in alphabetical order): China Greens (China), Greenway Medical Technologies (U.S.), Memira Holdings (Sweden), Mindjet Corporation (U.S.) and Tangoe Inc (U.S). In total, these holdings represented 26 percent of the total portfolio value.
| Investment year | 1995 |
|---|---|
| Investor's ownership (capital) % | 100 |
| Market value, Investor's holding, SEK m. | 10 188 |
| Share of Investor's total assets, % | 6 |
Investor Growth Capital makes expansion stage venture capital investments in growth companies within technology and healthcare in the U.S. and Asia. The European branch is solely focusing on maximizing value of its existing holdings. Returns are generated through divestments. Typical exits include initial public offerings or trade sales, normally after a 3-7 year holding period. Valuation is often based on the latest externally priced financing round. Where applicable, peer group multiples are used. Liquidity discounts are applied.
Investor's view: The new structure and focus on the U.S. and China, where the track record and the return prospects are the strongest, IGC has a solid platform for continued strong performance. The structural change leads to a clarified commitment and also creates a more sustainable cash flow to us.
Read more at www.gambro.com >> Read more at www.lindorff.com >>
| 2011 | 2010 | |||||
|---|---|---|---|---|---|---|
| Income statement items | Q4 | YTD | Q4 | YTD | ||
| Sales, SEK m. | 2 732 | 10 928 | 2 998 | 12 152 | ||
| Sales growth, % | -9 | -10 | -1 | -3 | ||
| Sales growth, constant currency, % |
-5 | 2) -5 |
4 | 2 | ||
| Normalized EBITDA , SEK m. | 477 | 2 041 | 611 | 2 395 | ||
| Normalized EBITDA, % | 17 | 19 | 20 | 20 | ||
| Balance sheet items3) | Q4 2011 | Q4 2010 | ||||
| Net debt, SEK m. | 8 572 | 25 380 | ||||
| Q4 2011 | Q4 2010 | |||||
| Number of employees | 7 205 | 7 650 |
1) Income statement items and balance sheet items are reported with one month's delay. 2) Adjusted for the divestment of the PD and the U.S. Water business in late 2010, sales declined by 1 percent in constant currency during 2011.
3) Following the divestment of CaridianBCT, the net debt previously reported under Gambro Holding is now reported within Gambro.
| Investment year | 2006 |
|---|---|
| Capital invested, SEK m. | 4 246 |
| Investor's ownership (capital) % | 49 |
| Reported value, Investor's share, December 31, 2011, SEK m. |
5 239 |
Gambro is a global medical technology company and a leader in developing, manufacturing and supplying products and therapies for Kidney and Liver dialysis, Myeloma Kidney Therapy, and other extracorporeal therapies for Chronic and Acute patients
Investor's view: The restructuring of Gambro has been challenging and taken longer than we originally anticipated. During 2011, Gambro has taken important steps to ensure operational efficiency and improved focus on core activities. We continue to believe that the improvement potential, both when it comes to revenue growth and margins, is substantial. We will consider equity financing, should there be a need for additional capital for value creating acquisitions, further restructuring or other investments.
| 2011 | 2010 | ||||
|---|---|---|---|---|---|
| Income statement items | Q4 | YTD | Q4 | YTD | |
| Sales, EUR m. | 81 | 337 | 76 | 309 | |
| Sales growth, % | 7 | 9 | 10 | 16 | |
| Sales growth, constant currency, % |
4 | 7 | 6 | 6 | |
| EBITdA2), EUR m. | 21 | 96 | 16 | 89 | |
| EBITdA2), % | 26 | 28 | 21 | 29 | |
| Balance sheet items | Q4 2011 | Q4 2010 | |||
| Net debt, EUR m. | 669 | 615 | |||
| Q4 2011 | Q4 2010 | ||||
| Number of employees | 2 470 | 2 465 |
1) Income statement items and balance sheet items are reported with one month's delay.
2) EBITdA = EBITDA after portfolio depreciation.
| Investment year | 2008 |
|---|---|
| Capital invested, SEK m. | 3 9691) |
| Investor's ownership (capital) % | 58 |
| Reported value, Investor's share, | 4 3371) |
| December 31, 2011, SEK m. |
1) Including mezzanine loans. In Investor's share of reported value as of December 31, 2011, the amount included was SEK 279 m.
Lindorff is a leading credit management company in the Nordic region with a growing European presence. The company has operations in Denmark, Estonia, Finland, Germany, Latvia, Lithuania, The Netherlands, Norway, Russia, Spain and Sweden.
Investor's view: Lindorff has a good business mix with its two business areas: Collection and Capital. Collection's service driven business model has low capital requirements and provides a stable earnings base. Capital has the capacity and ability to pursue portfolio acquisitions, offering attractive growth opportunities with good yield. The growth rate can be adapted by Lindorff's growth ambitions and market opportunities. We expect Lindorff to act on value creating opportunities in Europe. Internally, Lindorff should continue to focus on improving efficiency and operational excellence. We remain confident in Lindorff's long-term growth potential.
Read more at www.tre.se >>
| 2011 | 2010 | |||||
|---|---|---|---|---|---|---|
| Income statement items | Q4 | YTD | Q4 | YTD | ||
| New method2) | ||||||
| Sales, SEK m. | 2 337 | 8 911 | - | - | ||
| EBITDA, SEK m. | 565 | 2 397 | - | - | ||
| EBITDA, % | 24 | 27 | - | - | ||
| Old method | ||||||
| Sales, SEK m. | 2 060 | 7 800 | 1 885 | 7 015 | ||
| Sales growth, % | 9 | 11 | 18 | 20 | ||
| Sales growth, constant currency, % | 10 | 14 | 18 | 24 | ||
| Cash EBITDA3) , SEK m.3) |
290 | 1 306 | 302 | 1 067 | ||
| Cash EBITDA3) , % |
14 | 17 | 16 | 15 | ||
| Balance sheet items | Q4 2011 | Q4 2010 | ||||
| Net debt, SEK m. | 10 472 | 9 910 | ||||
| Q4 2011 | Q4 2010 | |||||
| Number of employees | 2 235 | 2 245 | ||||
| Other key figures4) | 12/31 2011 | 12/31 2010 | ||||
| Subscribers | 2 152 000 | 1 866 000 | ||||
| ARPU5) , SEK |
312 | 329 | ||||
| Non-voice ARPU5) % | 46 | 43 | ||||
| Postpaid/prepaid ratio | 85/15 | 87/13 |
1) Income statement items and balance sheet items are reported with one month's delay.
2) The effect on results prior to the first quarter 2011 has not been assessed.
3) Cash EBITDA is defined as EBITDA after deducting all customer acquisition and
retention costs.
4) Other key figures are reported without delay.
5) Average Monthly Revenue Per User (ARPU) refers to the past 12-month period.
| Investment year | 1999 |
|---|---|
| Capital invested, SEK m. | 6 366 |
| Investor's ownership (capital) % | 40 |
| Reported equity value, Investor's share, December 31, 2011, SEK m. |
2 395 |
3 Scandinavia is a mobile operator providing mobile voice and broadband services in Sweden and Denmark. The company is well recognized for its high-quality network, and has a strong position in a market with high volume growth driven by fixed to mobile migration in voice and broadband.
Investor's view: Over the past few years, 3 Scandinavia's strategic focus on building a high-quality mobile network has proven successful, illustrated by strong subscriber intake and improved operating performance. It is important for value creation that 3 Scandinavia continues to capture additional growth opportunities, as operating leverage is high. Having acquired additional spectrum during 2011, the company has secured its position as the premier network provider. Future revenue and profit growth should translate into enhanced cash flow generation.
| Full Year |
Q4 | Q3 | Q2 | Q1 | Full Year |
Q4 | Q3 | Q2 | Q1 | Full Year |
|
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2011 | 2011 | 2011 | 2011 | 2011 | 2010 | 2010 | 2010 | 2010 | 2010 | 2009 | |
| Core Investments - Subsidiaries | |||||||||||
| Mölnlycke Health Care (EUR m.) | |||||||||||
| Sales | 1 014 | 267 | 250 | 253 | 244 | 949 | 246 | 241 | 239 | 223 | 865 |
| EBITDA, adj.1) | 296 | 82 | 76 | 71 | 67 | 269 | 74 | 70 | 65 | 60 | 236 |
| EBITDA, adj. (%)1) | 29 | 31 | 30 | 28 | 27 | 28 | 30 | 29 | 27 | 27 | 27 |
| EBITDA | 251 | 82 | 76 | 71 | 22 | 265 | 70 | 70 | 65 | 60 | 236 |
| EBITDA (%) | 25 | 31 | 30 | 28 | 9 | 28 | 28 | 29 | 27 | 27 | 27 |
| Net debt | 1 482 | 1 482 | 1 506 | 1 527 | 1 578 | 1 578 | 1 578 | 1 638 | 1 678 | 1 690 | 1 673 |
| Employees | 6 755 | 6 755 | 6 835 | 6 880 | 6 985 | 6 985 | 6 985 | 6 910 | 6 930 | 6 735 | 6 745 |
| 2) (SEK m.) Aleris |
|||||||||||
| Sales | 5 123 | 1 593 | 1 334 | 1 125 | 1 071 | 4 120 | 1 068 | 952 | 1 076 | 1 024 | 3 882 |
| EBITDA | 410 | 138 | 103 | 88 | 81 | 296 | 65 | 59 | 93 | 79 | 332 |
| EBITDA (%) | 8 | 9 | 8 | 8 | 8 | 7 2 0258) |
6 2 0258) |
6 | 9 | 8 | 9 |
| Net debt Employees |
2 811 5 150 |
2 811 5 150 |
2 630 4 975 |
2 233 4 865 |
1 997 3 825 |
3 775 | 3 775 | 1 952 3 760 |
1 505 3 650 |
1 523 3 700 |
1 624 3 790 |
| Grand Hôtel (SEK m.) Sales |
396 | 123 | 98 | 105 | 70 | 393 | 108 | 109 | 103 | 73 | 368 |
| EBITDA | 67 | 25 | 19 | 25 | -2 | 95 | 21 | 37 | 28 | 9 | 76 |
| EBITDA (%) | 17 | 20 | 19 | 24 | -3 | 24 | 19 | 34 | 27 | 12 | 21 |
| Net debt | 545 | 545 | 555 | 542 | 506 | 481 | 481 | 482 | 492 | 493 | 524 |
| Employees | 260 | 260 | 250 | 245 | 255 | 295 | 295 | 275 | 265 | 240 | 280 |
| Financial Investments | |||||||||||
| EQT (SEK m.) | |||||||||||
| Reported value | 13 214 | 13 214 | 13 162 | 14 753 | 13 416 | 10 858 | 10 858 | 9 587 | 10 667 | 9 433 | 9 166 |
| Reported value change % | 31 | -1 | 0 | 15 | 14 | 13 | 12 | -6 | 12 | -5 | 6 |
| Value change, constant currency % | 31 | 1 | -2 | 13 | 16 | 28 | 13 | 0 | 13 | 2 | 14 |
| Draw-downs from Investor | 2 515 | 325 | 306 | 836 | 1 048 | 2 016 | 223 | 419 | 457 | 917 | 2 011 |
| Proceeds to Investor | 3 519 | 120 | 1 903 | 1 484 | 12 | 1 503 | 59 | 921 | 334 | 189 | 634 |
| Investor Growth Capital (SEK m.) | |||||||||||
| Reported value | 10 188 | 10 188 | 10 252 | 8 694 | 8 380 | 8 468 | 8 468 | 7 864 | 8 080 | 8 288 | 9 197 |
| Reported value change % | 10 | 2 | 10 | -2 | 0 | 4 | 9 | -8 | -2 | 5 | 6 |
| Value change, constant currency % | 6 | 1 | 4 | -3 | 5 | 8 | 8 | 5 | -9 | 5 | 12 |
| Capital contribution from Investor Distribution to Investor |
1 137 674 |
- 229 |
1 137 445 |
- - |
- - |
- - |
- - |
- - |
- - |
- - |
- - |
| Partner-owned investments | |||||||||||
| Gambro3) (SEK m.) | |||||||||||
| Sales | 10 928 | 2 732 | 2 667 | 2 720 | 2 809 | 12 152 | 2 998 | 3 045 | 3 070 | 3 039 | 12 484 |
| Normalized EBITDA | 2 041 | 477 | 496 | 548 | 520 | 2 395 | 611 | 571 | 668 | 545 | 2 384 |
| Normalized EBITDA (%) | 19 | 17 | 19 | 20 | 19 | 20 | 20 | 19 | 22 | 18 | 19 |
| Net debt5) | 8 572 | 8 572 | 8 169 | 7 806 | 23 592 | 25 380 | 25 380 | 25 981 | 26 529 | 25 476 | 25 559 |
| Employees | 7 205 | 7 205 | 7 270 | 7 335 | 7 380 | 7 650 | 7 650 | 7 725 | 7 780 | 7 930 | 8 040 |
| Lindorff3) (EUR m.) | |||||||||||
| Sales | 337 | 81 | 84 | 87 | 85 | 309 | 76 | 80 | 74 | 79 | 267 |
| EBITdA4) | 96 | 21 | 31 | 22 | 22 | 89 | 16 | 30 | 21 | 22 | 59 |
| EBITdA4) (%) | 28 | 26 | 37 | 25 | 26 | 29 | 21 | 38 | 28 | 28 | 22 |
| Net debt | 669 | 669 | 661 | 680 | 689 | 615 | 615 | 578 | 549 | 547 | 530 |
| Employees | 2 470 | 2 470 | 2 595 | 2 550 | 2 485 | 2 465 | 2 465 | 2 315 | 2 270 | 2 295 | 2 270 |
| 3 Scandinavia3) (SEK m.) | |||||||||||
| New method6) | |||||||||||
| Sales | 8 911 | 2 337 | 2 270 | 2 197 | 2 107 | - | - | - | - | - | - |
| EBITDA | 2 397 | 565 | 595 | 628 | 609 | - | - | - | - | - | - |
| EBITDA, % | 27 | 24 | 26 | 29 | 29 | - | - | - | - | - | - |
| Old method | |||||||||||
| Sales | 7 800 | 2 060 | 1 958 | 1 890 | 1 892 | 7 015 | 1 885 | 1 777 | 1 689 | 1 664 | 5 840 |
| Cash EBITDA7) | 1 306 | 290 | 286 | 329 | 401 | 1 067 | 302 | 329 | 236 | 200 | 434 |
| Cash EBITDA7) (%) |
17 | 14 | 15 | 17 | 21 | 15 | 16 | 19 | 14 | 12 | 7 |
| Net debt | 10 472 | 10 472 | 10 333 | 10 4088) | 10 241 | 9 910 | 9 910 | 9 723 | 10 071 | 10 172 | 10 230 |
| Employees | 2 235 | 2 235 | 2 280 | 2 265 | 2 255 | 2 245 | 2 245 | 2 160 | 2 080 | 2 065 | 2 095 |
1) Excluding the purchase price allocation, performed in conjunction with the acquisition of the majority in Mölnlycke Health Care, allocating EUR 49 m. to inventory. The consumption of this market value impacted EBITDA negatively by EUR 4 m. during the fourth quarter 2010 and EUR 45 m. during the first quarter 2011.
2) The acquisition of Aleris was finalized in August 2010. 3) Income and balance sheet items are reported with one month's delay.
4) EBITdA=EBITDA after portfolio depreciation.
5) Net debt reported under Gambro Holding until the second quarter 2011.
6) The effect on the result prior to the first quarter 2011 has not been assessed.
7) Cash EBITDA is defined as EBITDA after deducting all customer acquisition and retention costs.
8) Numbers have been restated.
Net debt totaled SEK 16,910 m. on December 31, 2011 (11,472). Debt financing of the subsidiaries within Core Investments and the partner-owned investments within Financial Investments, is arranged on an independent ringfenced basis and hence not included in Investor's net debt. Investor guarantees SEK 4.2 bn. of 3 Scandinavia's external debt, which is not included in Investor's net debt.
| SEK m. | Consolidated balance sheet |
Deductions related to Core Investments subsidiaries1) and IGC |
Investor's net debt |
|---|---|---|---|
| Other financial instruments | 1 967 | -24 | 2) 1 943 |
| Cash, bank and short-term investments |
13 072 | -1 913 | 2) 11 159 |
| Receivables included in net debt | 804 | -9 | 7953) |
| Loans | -48 172 | 17 580 | -30 5923) |
| Provision for pensions | -673 | 458 | -2153) |
| Total | -33 002 | 16 092 | -16 910 |
1) Mölnlycke Health Care, Aleris and Grand Hôtel. 2) Included in cash and readily available placements.
3) Included in gross debt.
Cash and readily available placements amounted to SEK 13,102 m. on December 31, 2011 compared to SEK 12,123 m. at year-end 2010. The Group's short-term investments are invested conservatively, taking into account the risk-adjusted return profile. Gross debt for the group amounted to SEK 30,012 m. (23,595) at the end of the period.
The average maturity of the debt portfolio was 11.2 years on December 31, 2011 (12.1), excluding the debt of Aleris, Mölnlycke Health Care and Grand Hôtel.
Net financial items for the reporting period amounted to SEK -2,566 m. (-1,186), of which SEK -1,643 m. (-633) is attributable to Core Investments subsidiaries. Net financial items include interest income of SEK 255 m. (153) and interest expenses of SEK 2,485 m. (937). The unrealized result from revaluation of loans and swaps amounted to SEK -376 m. (120). Investor uses swaps when managing the interest rate tenor. The remaining effects consist primarily of unrealized currency translation differences from loans to Lindorff and Mölnlycke Health Care.
| SEK m. | 10/1-12/31 2011 |
1/1-12/31 2011 |
1/1-12/31 2010 |
|---|---|---|---|
| Core Investments | 36 | 137 | 104 |
| Financial Investments | 19 | 190 | 337 |
| Investor groupwide | 46 | 179 | 205 |
| Total before restructuring cost |
101 | 506 | 646 |
| Restructuring cost | - | 150 | - |
| Total reported | 1011) | 6561) | 6461) |
1) Up until June 30, 2011, costs relating to Investor Growth Capital were included in Investor's management cost. IGC costs not included in the management costs were SEK 70 m. for H2 2011 and SEK 38 m. for Q4, 2011.
During the year, management cost excluding Investor Growth Capital and the SEK 150 m. restructuring charge taken during the first quarter, amounted to SEK 434 m. (486). Management cost includes commitments within the framework of long-term share-based remuneration programs amounting to SEK 33 m. (37).
As of July 1, 2011, Investor Growth Capital is a stand-alone entity within Investor, carrying its own costs.
The targeted SEK 140 m. reduction of annual management costs started to become visible during the second half of 2011 and should reach full run-rate effect by the end of 2012.
Read more at investorab.com under "Investors & Media" >>
The total return (sum of share price changes and dividend added back) was -8 percent in 2011 (11), and 5 percent during the fourth quarter (5).
The average annualized total return on the Investor share was -2 percent over the past five-year period, 5 percent over the past 10-year period and 13 percent over the past 20-year period.
The price of the Investor A-share and B-share was SEK 123.20 and SEK 128.40 respectively on December 31, 2011, compared to SEK 139.00 and SEK 143.90 on December 31, 2010. Total market capitalization of Investor, adjusted for repurchased shares, was SEK 96,028 m. as of December 31, 2011 (107,907).
Investor's share capital amounted to SEK 4,795 m. on December 31, 2011 (4,795).
| Class of share |
Number of shares |
Number of votes |
% of capital |
% of votes |
|---|---|---|---|---|
| A 1 vote | 311 690 844 | 311 690 844 | 40.6 | 87.2 |
| B 1/10 vote | 455 484 186 | 45 548 418 | 59.4 | 12.8 |
| Total | 767 175 030 | 357 239 262 | 100.0 | 100.0 |
Investor sold 14,642 B-shares during the fourth quarter. On December 31, 2011, Investor owned a total of 6,669,158 of its own shares (6,683,800).
The Parent Company's result after financial items was SEK -16,725 m. (34,194). Value changes of equity-related holdings reported at fair value amounted to SEK -22,063 m. (23,970). Result from participations in Group companies and associates amounted to SEK 520 m. (7,178), and 1,054 m. respectively, mainly related to reversed write-downs (-253). During the year, the Parent Company invested SEK 8,804 m. in financial assets (12,482), of which SEK 5,042 m. was in Group companies (9,199) and purchases in listed Core Investments of SEK 3,605 m (3,141). Total debt increased by SEK 8,008 m. since the beginning of the year. Shareholders' equity totaled SEK 142,633 m. on December 31, 2011, compared to SEK 163,164 m. on December 31, 2010.
The main risks that the Group and the Parent Company are exposed to are related to the value changes of the listed assets due to market price fluctuations. The development of the global economy is an important uncertainty factor in assessment of near-term market fluctuations. The uncertain market situation also affects the various unlisted holdings' opportunities for new investments and divestments. The turbulent development of the markets reflects the uncertainty about how the continuing global imbalances of the world economy, with risk of serious consequences for various states' deteriorating creditworthiness, will affect the economic situation at both macro and micro levels.
The Core Investments subsidiaries: Mölnlycke Health Care, Aleris and Grand Hôtel are, like Investor, exposed to commercial risks, financial risks, and market risks. In addition, through their business activities, i.e. their offerings of products and services, within respective sector, these companies are also exposed to legal/regulatory risks and political risks, for example political decisions on healthcare budgets and industry regulations.
Financing of Investor's Core Investments subsidiaries and the partner-owned investments are made on a ring-fenced basis, without guarantees from Investor, the guarantee to 3 Scandinavia being the exception. In order to keep credit risks at low levels, credit risk exposure is only permitted if the counterparties have high creditworthiness. Whatever the economic situation is in the world, operational risk management requires continued high level of awareness and focused work in line with stated policies and instructions. Investor AB's risk management, risks and uncertainties, and those related to its Core Investments subsidiaries, are described in detail in the Annual Report
2010, see the Administration report and Note 30. Any significant changes have not been made subsequently aside from the increased macroeconomic risks, which are described above.
The Board of Directors and the President propose a dividend to shareholders of SEK 6.00 per share for fiscal 2011 (5.00). The dividend level proposed is based on the stated dividend policy. Investor AB's dividend policy is to declare dividends attributable to a high percentage of dividends received from listed Core Investments, as well as to make a distribution from other net assets corresponding to a yield in line with the equity market. Investor AB's goal is also to generate a steadily rising annual dividend.
As it has during the past twelve years, Investor's Board of Directors has decided to propose to the 2012 Annual General Meeting that it should extend the authorization of the Board to decide on the repurchase of the company's shares. Under such a mandate, the Board would be given the opportunity until the next Annual General Meeting – provided it deems it appropriate – to decide on the repurchase of the company's shares. In accordance with current legislation, repurchases can total up to 10 percent of the total shares outstanding in Investor. Any repurchases may be effected over the stock exchange or through offerings to shareholders. It is also proposed that the Board's mandate include the possibility to transfer repurchased shares including transfers to participants in Investor's Long-term variable remuneration program. See also "Long-term variable remuneration program" below.
As in the previous six years, the Board of Directors will propose a share-based, long-term variable remuneration program for Investor's employees at the 2012 Annual General Meeting.
The program will be largely similar to the program for 2011. It is proposed that the long-term variable remuneration program be hedged as before through the repurchase of the company's shares, or through total return swaps. The Board's final proposal will be announced in the Notice of the 2012 Annual General Meeting.
Investor AB's Annual General Meeting will be held at 4:00 p.m. on Tuesday, April 17, 2012, at the City Conference Centre, Barnhusgatan 12-14, Stockholm. The registration commence at 2:30 p.m.
Notification of participation in the Annual General Meeting can be given starting Monday, March 12, 2012 until Wednesday, April 11, 2012. Notification can be given on Investor's website, (www.investorab.com), or by phoning
+46 8 611 2910.Additional information about Investor's Annual General Meeting is available on Investor's website.
Investor's audited Annual Report in Swedish will be made available at the company's headquarters, at Arsenalsgatan 8C in Stockholm, no later than March 27, 2012.
For the Group, this Year-end report was prepared in accordance with IAS 34 Interim Financial Reporting and applicable regulations in the Swedish Annual Accounts Act, and for the Parent Company in accordance with Sweden's Annual Accounts Act, chapter 9 Interim report. Unless otherwise specified below, the accounting policies that have been applied for the Group and Parent Company are in agreement with the accounting policies used in the preparation of the company's most recent annual report.
The associate 3 Scandinavia has changed the accounting policy for customer acquisition (CAC), and customer retention costs (CRC). According to the policy applied until year-end 2010, these expenses were capitalized and amortized during the term of the contracts. As of 2011 the costs mentioned will be expensed on a current basis and in connection with the transition to the new policy previously balanced expenditures were charged to the income statement retrospectively. The change of policy has affected the opening balance equity as of January 1, 2010 by SEK -487 m., the share of results of associates relating to 2010 was affected by SEK -82 m. and the equity closing balance as per December 31, 2010 has been adjusted by SEK -561 m. as a result of the new policy.
3 Scandinavia has also changed the recognition method of handset revenues. With the new method both revenues and expenses relating to handsets affect the income statement at the time of delivery. Previously revenues and expenses relating to handsets were recognized over the subscriber contract period. 3 Scandinavia has not implemented the new recognition method retrospectively in their accounting and therefore the recognized income will be positively impacted, during a transition period, by revenues relating to subscriber contracts existing at the end of 2010. The effect will fade over time as subscriber contracts signed prior to the change expire. Investor estimates that the positive effect on 3 Scandinavia's operating result amounts to approximately SEK 900 m., of which approximately SEK 700 m. has affected the financial year 2011 and the remainder will affect the financial year 2012.
New or revised IFRSs and interpretations from IFRIC have had no effect on the profit/loss, financial position or disclosures for the Group or Parent Company.
As of the first quarter 2011, Investor's presentation of operating segments has been changed. The change is due to a new internal structure for management and reporting and has reduced the number of segments from four to two. As before the segments are made up of business areas and consist hereafter of Core Investments and Financial Investments. As of the first quarter 2011, Core Investments consists of listed holdings and subsidiaries with a long ownership horizon. Financial Investments consists of partner-owned investments, Investor Growth Capital, the investments in EQT funds, trading, and some other holdings. Comparative figures have been adjusted.
During June the purchase price allocation relating to the acquisition of Aleris was finalized and Aleris acquired Proxima Intressenter AB.
During July, the purchase price allocation relating to the acquisition of Mölnlycke Health Care was finalized and Aleris' acquisition of the Danish Privatehospitalet Hamlet was closed.
Other acquisitions Aleris made during the year consists of Interaktiv Barnevern AS, Mitt Hjärta Primärvård AB, Husläkarmottagningen i Täby Centrum AB and Bergen Plastikkirurgisk Senter AS.
In August 2010, Investor acquired 99 percent of the votes in Aleris. The consideration from Investor amounted to SEK 2,620 m. including an earn-out of SEK 11 m. As it is no longer probable that the earn-out will be paid, SEK 11 m. has been taken up as income under value change in the consolidated income statement. The earn-out was depending on the aggregated EBITDA for a business area up to 2012.
According to the preliminary purchase price allocation presented at the end of 2010, goodwill amounted to SEK 3,787 m. The purchase price allocation relating to the acquisition of Aleris has now been fixed with a goodwill amounting to SEK 3,831 m. The major part of the increase of goodwill, SEK 44 m., relates to adjustments of the provision for pensions and deferred taxes.
In December 2010, Investor acquired additional votes in Mölnlycke Health Care. The consideration from Investor amounted to SEK 4,672 m. of which SEK 2,016 m. was attributable to the acquisition of shares and SEK 2,656 m. to shareholder loans. After the completion of the transaction, Investor Group owned 92 percent of the company (excluding shareholder loans) and a corresponding 93 percent of the votes.
According to the preliminary purchase price allocation presented at the end of 2010, goodwill amounted to SEK 19,780 m. The purchase price allocation relating to the acquisition of Mölnlycke has now been finalized with goodwill amounting to SEK 19,893 m. The increase of goodwill, SEK 113 m., relates to adjustments of the value of customer contracts and deferred taxes.
| Aleris | Mölnlycke Health Care | |||||
|---|---|---|---|---|---|---|
| SEK m. | Preliminary Purchase Price Allocation |
New valuation |
Final Purchase Price Allocation |
Preliminary Purchase Price Allocation |
New valuation |
Final Purchase Price Allocation |
| Intangible assets, primarily customer contracts |
614 | 614 | 10 280 | -155 | 10 125 | |
| Property, plant and equipment | 360 | 360 | 1 054 | 1 054 | ||
| Financial assets | 6 | 6 | ||||
| Deferred tax assets | 190 | 190 | ||||
| Non-current assets | 56 | 56 | ||||
| Inventory | 1 508 | 1 508 | ||||
| Accounts receivables | 288 | 288 | 1 111 | 1 111 | ||
| Other current assets | 100 | 100 | 329 | 329 | ||
| Cash and cash equivalents | 106 | 106 | 842 | 842 | ||
| Non-current liabilities and provisions | -1 528 | -23 | -1 551 | -22 743 | -22 743 | |
| Deferred tax liability | -104 | -38 | -142 | -2 962 | 42 | -2 920 |
| Current liabilities | -727 | 17 | -710 | -3 154 | -3 154 | |
| Net identifiable assets and liabilities | -885 | -44 | -929 | -13 489 | -113 | -13 602 |
| Fair value of previously held share | -3 746 | -3 746 | ||||
| Non-controlling interest | -282 | -282 | -529 | -529 | ||
| Consolidated goodwill | 3 787 | 44 | 3 831 | 19 780 | 113 | 19 893 |
| C o nsideratio n |
2 620 | 0 | 2 620 | 2 016 | 0 | 2 016 |
June 20, 2011 Aleris acquired 100 percent of the votes in the Swedish healthcare provider Proxima Intressenter AB for an enterprise value of SEK 1,080 m. The consideration from Aleris amounted to SEK 742 m. and was paid in cash. The acquisition was financed by a capital contribution of SEK 769 m. from Investor and external debt. Proxima is a private healthcare group delivering high quality services in primary care, diagnostics, specialist care, rehabilitation and occupational health. Through the acquisition, Aleris strengthens its position in the Swedish and Nordic market, both by an increased geographical presence and new areas of competences.
An adjustment to the preliminary purchase price allocation has been made in the fourth quarter. The increase of intangible assets relates to the value of customer contracts and deferred taxes. In the purchase price allocation, which is still preliminary, goodwill amounts to SEK 812 m. The goodwill recognized for the acquisition corresponds to the company's profitability level which is based, among other things, on the company's customer offering, proven performance and market position. The goodwill recognized is not expected to be deductible for income tax purposes. Transaction related costs amounted to SEK 15 m. and derives from external legal fees and due diligence expenses. The costs have been included under other expenses in the consolidated income statement.
For the six month period from the acquisition date until December 31, Proxima contributed net sales of SEK 501 m. and profit of SEK 2 m. to the Group's result. If the acquisition had occurred on January 1, 2011, management estimates that consolidated net sales for the Investor Group would have increased by SEK 508 m. and consolidated profit for the period would have decreased by SEK 46 m.
July 14, 2011 Aleris acquired 100 percent of the votes in the Danish Privatehospitalet Hamlet. The acquisition was financed with capital contribution 250 m. from Investor and external debt. Hamlet is the largest private hospital in
Denmark. Through the acquisitions Aleris strength its position in both the Danish and Nordic healthcare market.
An adjustment to the preliminary purchase price allocation has been made in the fourth quarter. The adjustment is mainly referred to the value of intangible assets and deferred taxes. In the purchase price allocation, which is still preliminary, goodwill amounts to SEK 339 m. The goodwill recognized for the acquisition corresponds to the company´s profitability level which is based, among other things, on the company´s customer offering, proven performance and market position. The goodwill recognized is not expected to be deductible for income tax purposes. Transaction related costs amounted to SEK 12 m. and derives from external legal fees and due diligence expenses. The costs have been included under other expenses in the consolidated income statement.
For the five month period from the acquisition date until December 31, Hamlet contributed net sales of SEK 209 m. and profit of SEK -4 m. to the Group's result. If the acquisition had occurred on January 1, 2011, management estimates that consolidated net sales for the Investor Group would have increased by SEK 270 m. and consolidated profit for the period would have decreased by SEK 131 m.
interest
| Proxima Intressenter |
Hamlet | |||
|---|---|---|---|---|
| SEK m. | A B |
A/S | Other | Total |
| Intangible assets, primarily customer contracts |
356 | 2 | 358 | |
| Property, plant and equipment | 69 | 73 | 2 | 144 |
| Deferred tax assets | 8 | 31 | 1 | 40 |
| Non-current assets | 2 | 11 | 13 | |
| Accounts receivables | 70 | 46 | 10 | 126 |
| Other current assets | 70 | 22 | 4 | 96 |
| Cash and cash equivalents | 44 | 9 | 43 | 96 |
| Non-current liabilities and provisions | -437 | -194 | -3 | -634 |
| Deferred tax liability | -98 | -98 | ||
| Current liabilities | -154 | -82 | -33 | -269 |
| Net identifiable assets and liabilities | -70 | -82 | 24 | -128 |
| Consolidated goodwill | 812 | 339 | 227 | 1 378 |
| C o nsideratio n |
742 | 257 | 251 | 1 250 |
The Purchase Price Allocations are preliminary where business is conducted in a large number of companies and the valuation of intangible assets is complex.
During the reporting period the Group has not entered into any new significant transactions or commitments with related parties, other than recurring business transactions as presented in the Annual Report 2010.
At December 31, 2011 there were pledged assets related to operating subsidiaries granted credit facilities amounting to SEK 18,692 m. in form of a floating charge, real estate mortgages, shares and assets in group companies (20,283). At December 31, 2011, the loans amounted as a total to SEK 16,794 m. (17,111). Furthermore there is a property mortgage relating to a third-party sale and leaseback agreement amounting to SEK 155 m. (156). In addition there are cash positions as collateral for factoring agreements amounting to SEK 42 m. (39).
The credit facilities above are subject to financial covenants.
At December 31, 2011 asset pledged as securities regarding bank deposits, bonds and other securities amounted to SEK 25 m. within Investing Activities (1,525).
At December 31, 2011 contingent liabilities in form of guarantee commitments for FPG/PRI and other pension plans amounted to SEK 1 m. (1). Other contingent liabilities amounted to SEK 156 m. (156).
At December 31, 2011 guarantees on behalf of the associate 3 Scandinavia amounted to SEK 4,208 m. (4,236).
April 17, 2012 Annual General Meeting April 24, 2012 Interim Report January-March 2012 July 17, 2012 Interim Report January-June 2012 Oct. 17, 2012 Interim Report January-September 2012 Jan. 29, 2013 Year-End Report 2012
Susanne Ekblom, Chief Financial Officer: +46 8 614 2000 [email protected]
Oscar Stege Unger, Head of Corporate Communications: +46 8 614 2059, +46 70 624 2059 [email protected]
Magnus Dalhammar, Investor Relations Manager: +46 8 614 2130, +46 73 524 2130 [email protected]
Investor AB (publ) (CIN 556013-8298) SE-103 32 Stockholm, Sweden Visiting address: Arsenalsgatan 8C Phone: +46 8 614 2000 Fax: + 46 8 614 2150 www.investorab.com Mobile website: http://m.investorab.com
Ticker codes:
INVEB SS in Bloomberg INVEb.ST in Reuters W:ISBF in Datastream
Stockholm, January 24, 2012
Börje Ekholm President and Chief Executive Officer
The information in this interim report is such that Investor is required to disclose under Sweden's Securities Market Act.
The report was released for publication at 08:15 CET on January 24, 2012.
This Year-end report and additional information is available on www.investorab.com
We have reviewed the Year-End Report (interim report) of Investor AB (publ), corporate identity number 556013-8298, as of 31 December, 2011 and for the twelve month period then ended. The Board of Directors and the President are responsible for the preparation and fair presentation of this interim financial information in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim annual report based on our review.
We conducted our review in accordance with the Standard on Review Engagements (SÖG) 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the International Standards on Auditing and other generally accepted auditing practices. The procedures performed in a review do not enable us to
obtain a level of assurance that would make us aware of all significant matters that might be identified in an audit. Accordingly, the conclusion expressed based on a review does not give the same level of assurance as a conclusion expressed based on an audit.
Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Annual Accounts Act for the Group and in accordance with the Annual Accounts Act for the Parent Company.
Stockholm, January 24, 2012
KPMG AB
(Signed on the original document)
Helene Willberg
Authorized Public Accountant
| (Restated) | (Restated) | |||
|---|---|---|---|---|
| 2011 | 2010 | 2011 | 2010 | |
| Amounts in SEK m. | 1/1-12/31 | 1/1-12/31 | 10/1-12/31 | 10/1-12/31 |
| Dividends | 4 330 | 3 622 | 31 | 15 |
| Other operating income | 480 | 994 | 128 | 213 |
| Changes in value | -17 586 | 28 492 | 11 513 | 17 566 |
| Net sales | 14 674 | 2 947 | 4 145 | 1 966 |
| Cost of goods and services sold | -9 605 | -2 351 | -2 670 | -1 464 |
| Sales and marketing cost | -2 558 | -282 | -625 | -279 |
| Administrative, research and development and other operating cost | -1 334 | -221 | -384 | -189 |
| Management cost1) | -506 | -646 | -101 | -145 |
| Restructuring cost | -150 | - | - | - |
| Share of results of associates | 5 240 | -717 2) | 1 180 | -160 2) |
| Profit/loss | -7 015 | 31 838 | 13 217 | 17 523 |
| Net financial items | -2 566 | -1 186 | -881 | -92 |
| Profit/loss before tax | -9 581 | 30 652 | 12 336 | 17 431 |
| Income tax | 293 | -41 | -69 | 61 |
| Profit/loss for the period | -9 288 | 30 611 | 12 267 | 17 492 |
| Attributable to: | ||||
| Ow ners of the Parent Company |
-9 229 | 30 631 2) | 12 255 | 17 512 2) |
| Non-controlling interest | -59 | -20 | 12 | -20 |
| Profit/loss for the period | -9 288 | 30 611 | 12 267 | 17 492 |
| Basic earnings per share, SEK | -12.14 | 40.24 | 16.11 | 23.00 |
| Diluted earnings per share, SEK | -12.14 | 40.20 | 16.10 | 22.97 |
| Basic average number of shares, million | 760.5 | 761.2 | 760.5 | 760.5 |
| Diluted average number of shares, million | 761.1 | 762.9 | 761.2 | 761.2 |
1) Including Cost of long-term share-based remuneration amounting to SEK -33 m. (-37).
2) Restatement attributable to change in accounting policy, for further information see Accounting policies on page 20.
| (Restated) | ||||
|---|---|---|---|---|
| 2011 | 2010 | 2011 | 2010 | |
| Amounts in SEK m. | 1/1-12/31 | 1/1-12/31 | 10/1-12/31 | 10/1-12/31 |
| Profit for the period | -9 288 | 30 611 1) | 12 267 | 17 492 1) |
| Other comprehensive income for the period, including tax | ||||
| Revaluation of non-current assets | 190 | - | 52 | - |
| Change in fair value of cash flow hedges |
-243 | 602 | -20 | 469 |
| Foreign currency translation adjustment | 7 | -488 | -249 | -496 |
| Actuarial gains and losses on defined benefit pension plans | -30 | -13 | -39 | -13 |
| Share of other comprehensive income of associates | -189 | -202 1) | 9 | 81 1) |
| Total other comprehensive income for the period | -265 | -101 | -247 | 41 |
| Total comprehensive income for the period | -9 553 | 30 510 | 12 020 | 17 533 |
| Attributable to: | ||||
| Ow ners of the Parent Company |
-9 469 | 30 523 1) | 12 017 | 17 538 1) |
| Non-controlling interest | -84 | -13 | 3 | - 5 |
| Total comprehensive income for the period | -9 553 | 30 510 | 12 020 | 17 533 |
1) Restatement attributable to change in accounting policy, for further information see Accounting policies on page 20.
| (Restated) | (Restated) | ||
|---|---|---|---|
| 2011 | 2010 | 2010 | |
| Amounts in SEK m. | 12/31 | 12/31 | 1/1 |
| ASSETS | |||
| Goodw ill |
24 619 | 23 194 | - |
| Other intangible assets | 9 750 | 10 696 | 16 |
| Property, plant and equipment | 3 995 | 3 553 | 2 168 |
| Shares and participations | 147 897 | 156 184 1) | 130 305 1) |
| Other financial investments | 1 967 | 665 | 9 062 |
| Long-term receivables included in net debt | 795 | 463 | 1 158 |
| Other long-term receivables | 5 937 | 5 535 | 9 699 |
| Total non-current assets | 194 960 | 200 290 | 152 408 |
| Inventories | 1 141 | 1 465 | - |
| Shares and participations in Active Portfolio Management | 1 094 | 4 026 | 3 936 |
| Short-term receivables included in net debt | 9 | - | - |
| Other current receivables | 3 331 | 3 007 | 1 459 |
| Cash, bank and short-term investments | 13 072 | 11 979 | 11 934 |
| Total current assets | 18 647 | 20 477 | 17 329 |
| TOTAL ASSETS | 213 607 | 220 767 | 169 737 |
| EQUITY AND LIABILITIES | |||
| Equity | 156 719 | 170 051 1) | 142 186 1) |
| Long-term interest bearing liabilities | 44 961 | 40 536 | 23 550 |
| Provisions for pensions and similar obligations | 673 | 602 | 297 |
| Other long-term provisions and liabilities | 3 748 | 3 808 | 629 |
| Total non-current liabilities | 49 382 | 44 946 | 24 476 |
| Short-term interest bearing liabilities | 3 211 | 948 | 299 |
| Other short-term provisions and liabilities | 4 295 | 4 822 | 2 776 |
| Total current liabilities | 7 506 | 5 770 | 3 075 |
| TOTAL EQUITY AND LIABILITIES | 213 607 | 220 767 | 169 737 |
| NET DEBT/NET CASH | |||
| 2011 | 2010 | 2010 | |
| Amounts in SEK m. | 12/31 | 12/31 | 1/1 |
| Other financial investments | 1 967 | 665 | 9 062 |
| Receivables included in net debt | 804 | 463 | 1 158 |
| Cash, bank and short-term investments | 13 072 | 11 979 | 11 934 |
| Long-term interest bearing liabilities | -44 961 | -40 536 | -23 550 |
| Provisions for pensions and similar obligations | -673 | -602 | -297 |
| Short-term interest bearing liabilities | -3 211 | -948 | -299 |
| Adjustment related to subsidiaries2) | 16 092 | 17 507 | 1 404 |
| Total net debt/net cash | -16 910 | -11 472 | -588 |
| (Restated) | ||
|---|---|---|
| 2011 | 2010 | |
| Amounts in SEK m. | 1/1-12/31 | 1/1-12/31 |
| Opening balance | 170 051 | 142 673 |
| Change in accounting policy | -487 1) | |
| Restated opening balance | 170 051 | 142 186 |
| Profit for the period | -9 288 | 30 611 1) |
| Other comprehensive income for the period | -265 | -101 1) |
| Total comprehensive income for the period | -9 553 | 30 510 |
| Dividends to ow n shareholders |
-3 802 | -3 050 |
| Changes in non-controlling interest | 10 | 674 |
| Repurchase/sales of ow n shares |
2 | -263 |
| Effect of long-term share-based remuneration | 11 | - 6 |
| Closing balance | 156 719 | 170 051 |
| Attributable to: | ||
| Ow ners of the Parent Company |
156 070 | 169 386 1) |
| Non-controlling interest | 649 | 665 |
| Total equity | 156 719 | 170 051 |
1) Restatement attributable to change in accounting policy, for further information see Accounting policies on page 20. 2) Deductions relating to the ringfenced subsidiaries Aleris, Grand Hôtel, M ölnlycke Health Care and IGC.
| 2011 | 2010 | |
|---|---|---|
| Amounts in SEK m. | 1/1-12/31 | 1/1-12/31 |
| Operating activities | ||
| Core Investments | ||
| Dividends received | 3 998 | 3 203 |
| Cash receipts | 14 451 | 2 938 |
| Cash payments | -11 697 | -2 356 |
| Financial Investments and management cost | ||
| Dividends received | 347 | 451 |
| Cash receipts/payments, net effect | 336 | -230 |
| Cash flows from Operating activities before | ||
| net interest and income tax | 7 435 | 4 006 |
| Interest received/paid | -1 636 | -657 |
| Income tax paid | -461 | -234 |
| Cash flows from Operating activities | 5 338 | 3 115 |
| Investing activities | ||
| Acquisitions | -10 360 | -7 429 |
| Divestments | 7 328 | 3 995 |
| Increase in long-term receivables | - | -288 |
| Decrease in long-term receivables | 177 | 192 |
| Acquisitions of subsidiaries, net effect on cash flow | -1 153 | -6 732 |
| Disposals of subsidiaries, net effect on cash flow | 8 | - |
| Increase in other financial investments | -4 856 | -2 712 |
| Decrease in other financial investments | 3 591 | 3 405 |
| Net changes, short-term investments | 608 | 4 507 |
| Acquisitions of property, plant and equipment | -573 | -165 |
| Proceeds from sale of other investments | 11 | 105 |
| Net cash used in Investing activities | -5 219 | -5 122 |
| Financing activities | ||
| Borrow ings |
7 058 | 4 903 |
| Amortization | -1 748 | -2 649 |
| Repurchase/sales of ow n shares |
2 | -263 |
| Dividends paid | -3 802 | -3 050 |
| Net cash used in Financing activities | 1 510 | -1 059 |
| Cash flows for the period | 1 629 | -3 066 |
| Cash and cash equivalents at the beginning of the year | 2 684 | 5 804 |
| Exchange difference in cash | - 1 |
-54 |
| Cash and cash equivalents at the end of the period | 4 312 | 2 684 |
| Cash and cash equivalents at end of the period | 4 312 | 2 684 |
| Short-term investments | 8 760 | 9 295 |
| C ash, bank and sho rt-term investments |
13 072 | 11 979 |
PERFORMANCE BY BUSINESS AREA 1/1-12/31 2011
| Core | Financial | Investor | |||
|---|---|---|---|---|---|
| Amounts in SEK m. | Investments | Investments | group-wide | Elimination | Total |
| Dividends | 3 998 | 332 | - | - | 4 330 |
| Other operating income1) | 24 | 480 | - | -24 | 480 |
| Changes in value | -21 794 | 4 191 2) | - | 17 | -17 586 |
| Net sales | 14 679 | 29 | - | -34 | 14 674 |
| Cost of goods and services sold | -9 598 | -41 | - | 34 | -9 605 |
| Sales and marketing cost | -2 558 | - | - | - | -2 558 |
| Administrative, research and development and other operating cost | -1 264 | -70 | - | - | -1 334 |
| Management cost | -137 | -190 | -179 | - | -506 |
| Restructuring cost | - | - | -150 | - | -150 |
| Share of results of associates | 1 | 5 239 | - | - | 5 240 |
| Operating profit/loss | -16 649 | 9 970 | -329 | - 7 |
-7 015 |
| Net financial items | -1 392 | 1 | -1 182 | 7 | -2 566 |
| Income tax | 287 | 3 | 3 | - | 293 |
| Profit/loss for the period | -17 754 | 9 974 | -1 508 | - | -9 288 |
| Non controlling interest | 59 | - | - | - | 59 |
| Net profit/loss for the period attributable to the Parent Company | -17 695 | 9 974 | -1 508 | - | -9 229 |
| Dividends paid | - | - | -3 802 | - | -3 802 |
| Other effects on equity | -244 | -287 | 246 | - | -285 |
| Contribution to net asset value | -17 939 | 9 687 | -5 064 | - | -13 316 |
| Net asset value by business area 12/31 2011 | |||||
| Carrying amount | 136 002 | 37 623 | -645 | - | 172 980 |
| Net debt | - | - | -16 910 | - | -16 910 |
| Total net asset value | 136 002 | 37 623 | -17 555 | - | 156 070 |
| Investor | |||||
|---|---|---|---|---|---|
| Core | Financial | group | |||
| Amounts in SEK m. | Investments | Investments | wide | Elimination | Total |
| Dividends | 3 203 | 419 | - | - | 3 622 |
| Other operating income1) | 587 2) | 407 2) | - | - | 994 |
| Changes in value | 26 282 2) | 2 210 2, 3) | - | - | 28 492 |
| Net sales | 2 940 | 27 | - | -20 | 2 947 |
| Cost of goods and services sold | -2 301 | -70 | - | 20 | -2 351 |
| Sales and marketing cost | -282 | - | - | - | -282 |
| Administrative, research and development and other operating cost | -221 | - | - | - | -221 |
| Management cost | -104 | -337 | -205 | - | -646 |
| Share of results of associates | -334 | -383 | - | - | -717 |
| Operating profit/loss | 29 770 | 2 273 | -205 | - | 31 838 |
| Net financial items | -226 | 1 | -961 | - | -1 186 |
| Income tax | 64 | 10 | -115 | - | -41 |
| Profit/loss for the period | 29 608 | 2 284 | -1 281 | - | 30 611 |
| Non controlling interest | 20 | - | - | - | 20 |
| Net profit/loss for the period attributable to the Parent Company | 29 628 | 2 284 | -1 281 | - | 30 631 |
| Dividends paid | - | - | -3 050 | - | -3 050 |
| Repurchase of ow n shares |
- | - | -263 | - | -263 |
| Other effects on equity | -288 | -620 | 790 | - | -118 |
| Contribution to net asset value | 29 340 | 1 664 | -3 804 | - | 27 200 |
| Net asset value by business area 12/31 2010 | |||||
| Carrying amount | 151 425 | 30 036 | -603 | - | 180 858 |
| Net debt | - | - | -11 472 | - | -11 472 |
| Total net asset value | 151 425 | 30 036 | -12 075 | - | 169 386 |
| 1) Includes interest on loans to associates. 2) M ove of mezzanine loans to Core Investments from Financial Investments. 3) Includes turnover of the Active Portfolio M anagement amounting to SEK 9,860m. (23,589). |
3) Includes turnover of the Active Portfolio M anagement amounting to SEK 9,860m. (23,589).
| 2011 | 2010 | 2011 | 2010 | |
|---|---|---|---|---|
| Amounts in SEK m. | 1/1-12/31 | 1/1-12/31 | 10/1-12/31 | 10/1-12/31 |
| Dividends | 3 998 | 3 203 | 0 | 0 |
| Changes in value | -22 063 | 23 970 | 10 919 | 12 797 |
| Net sales | 20 | 8 | 7 | 2 |
| Operating cost | -507 | -432 | -130 | -95 |
| Result from participations in Group companies | 520 | 7 178 | - | 0 |
| Impairment of associates | 1 054 | -253 | 1 229 | -40 |
| Operating profit/loss | -16 978 | 33 674 | 12 025 | 12 664 |
| Profit from financial items | ||||
| Other financial items | 253 | 520 | -46 | 128 |
| Profit before tax | -16 725 | 34 194 | 11 979 | 12 792 |
| Income tax | - | - | - | - |
| Profit for the period | -16 725 | 34 194 | 11 979 | 12 792 |
| Amounts in SEK m. | 2011 1/1-12/31 |
2010 1/1-12/31 |
2011 10/1-12/31 |
2010 10/1-12/31 |
|---|---|---|---|---|
| Profit for the period | -16 725 | 34 194 | 11 979 | 12 792 |
| Other comprehensive income for the period, including tax | ||||
| Change in fair value of cash flow hedges |
-17 | 5 | - 2 |
13 |
| Total other comprehensive income for the period | -17 | 5 | - 2 |
13 |
| Total comprehensive income for the period | -16 742 | 34 199 | 11 977 | 12 805 |
| 2011 | 2010 | |
|---|---|---|
| Amounts in SEK m. | 12/31 | 12/31 |
| ASSETS | ||
| Intangible assets and Property, plant and equipment | 38 | 39 |
| Financial assets | 182 520 | 197 045 |
| Total non-current assets | 182 558 | 197 084 |
| Current receivables | 3 247 | 1 213 |
| Cash and cash equivalents | 0 | 0 |
| Total current assets | 3 247 | 1 213 |
| TOTAL ASSETS | 185 805 | 198 297 |
| EQUITY AND LIABILITIES | ||
| Equity | 142 633 | 163 164 |
| Provisions | 293 | 262 |
| Non-current liabilities | 26 544 | 26 354 |
| Total non-current liabilities | 26 837 | 26 616 |
| Total current liabilities | 16 335 | 8 517 |
| TOTAL EQUITY AND LIABILITIES | 185 805 | 198 297 |
| 2011 | 2010 | |
| ASSETS PLEDGED AND CONTINGENT LIABILITIES | 12/31 | 12/31 |
| Assets pledged | 23 | 931 |
| Contingent liabilities | 10 208 | 10 236 |
| 2011 | 2010 | |
|---|---|---|
| Amounts in SEK m. | 1/1-12/31 | 1/1-12/31 |
| Opening balance | 163 164 | 132 284 |
| Profit/loss for the period | -16 725 | 34 194 |
| Other comprehensive income for the period | -17 | 5 |
| Total comprehensive income for the period | -16 742 | 34 199 |
| Dividends | -3 802 | -3 050 |
| Stock options exercised by employees | -20 | -30 |
| Equity-settled share-based payment transactions | 31 | 24 |
| Repurchases of ow n shares |
2 | -263 |
| Closing balance | 142 633 | 163 164 |
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