Quarterly Report • Apr 12, 2011
Quarterly Report
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| Number of shares | Ownership, 3/31 2011 (%) |
Share of total assets, |
Value, SEK/share, |
Value, SEK m. |
Value, SEK m. |
||
|---|---|---|---|---|---|---|---|
| 3/31 20111) | 2) Capital |
Votes2) | 3/31 2011 (%) | 3/31 2011 | 3/31 2011 | 12/31 2010 | |
| Core Investments3) | |||||||
| Listed | |||||||
| Atlas Copco | 205 471 326 | 16.7 | 22.3 | 19 | 45 | 34 292 | 34 671 |
| SEB | 456 089 264 | 20.8 | 20.9 | 14 | 34 | 25 677 | 25 579 |
| ABB | 166 330 142 | 7.3 | 7.3 | 14 | 33 | 25 349 | 25 082 |
| AstraZeneca | 51 587 810 | 3.7 | 3.7 | 8 | 20 | 15 064 | 15 956 |
| Ericsson | 164 078 702 | 5.0 | 19.3 | 7 | 17 | 13 110 | 12 396 |
| Electrolux | 43 916 1334) | 14.2 | 29.9 | 4 | 9 | 7 136 | 8 054 |
| Husqvarna | 90 667 692 | 15.7 | 30.9 | 3 | 7 | 4 875 | 5 058 |
| Saab | 32 778 098 | 30.0 | 39.5 | 2 | 6 | 4 510 | 4 032 |
| NASDAQ OMX | 18 004 142 | 10.2 | 10.2 | 2 | 4 | 2 913 | - |
| Sobi | 86 075 332 | 40.2 | 40.5 | 1 | 3 | 2 479 | 3 486 |
| 74 | 178 | 135 405 | 134 314 | ||||
| Subsidiaries | |||||||
| Mölnlycke Health Care | 96 | 93 | 7 | 17 | 13 012 | 13 432 | |
| Aleris | 97 | 99 | 1 | 3 | 2 472 | 2 465 | |
| Grand Hôtel | 100 | 100 | 1 | 2 | 1 074 | 1 091 | |
| 9 | 22 | 16 558 | 16 988 | ||||
| 83 | 200 | 151 963 | 151 302 | ||||
| Financial Investments | |||||||
| Partner-owned investments | |||||||
| Lindorff | 58 | 50 | 2 | 5 | 3 860 | 3 789 | |
| Gambro Holding (Gambro & CaridianBCT) |
49 | 49 | 1 | 2 | 1 6875) | 1 740 | |
| 3 Scandinavia | 40 | 40 | 0 | 1 | 758 | 7206) | |
| Other Partner-owned investments7) | n/a | n/a | 0 | 0 | 124 | 128 | |
| EQT | n/a | n/a | 7 | 18 | 13 4075) | 10 829 | |
| Investor Growth Capital | 100 | 100 | 5 | 11 | 8 380 | 8 468 | |
| Active Portfolio Management | n/a | n/a | 1 | 2 | 1 581 | 1 607 | |
| Other Investments8) | n/a | n/a | 1 | 2 | 1 328 | 2 8819) | |
| 17 | 41 | 31 125 | 30 162 | ||||
| Other Assets and Liabilities | - | - | 0 | 0 | 173 | -606 | |
| Total Assets | - | - | 100 | 241 | 183 261 | 180 858 | |
| Net debt | - | - | -18 | -13 698 | -11 472 | ||
| Net Asset Value | - | - | 223 | 169 563 | 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 and AstraZeneca in accordance with Swiss and British 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) During the first quarter, 250,000 class A shares were converted into B-shares. 5) Following the announced divestment of CaridianBCT, the reported value of Gambro Holding will increase by SEK 3.8 bn. and indirectly by SEK 0.7 bn. through our investment in
EQT IV. 6) Due to a change in accounting policy, the reported value has been restated by SEK -561 m. as of December 31, 2010.
7) Includes holdings in Kunskapsskolan, Novare and Act Group.
8) Includes among others holdings in EQT Partners, acquired debt, and land & real estate.
9) Includes holdings in NASDAQ OMX which have been transferred to Core Investments.
| SEK m. | Industrials | Healthcare | Financials | IT & Telecom | Consumer discretionary |
Other | Total |
|---|---|---|---|---|---|---|---|
| Core Investments | |||||||
| Listed | 64 151 | 17 543 | 28 590 | 13 110 | 12 011 | - | 135 405 |
| Subsidiaries | - | 15 484 | - | - | 1 074 | - | 16 558 |
| Financial Investments and other | 896 | 6 879 | 3 860 | 11 417 | 3 294 | 4 952 | 31 298 |
| Total | 65 047 | 39 906 | 32 450 | 24 527 | 16 379 | 4 952 | 183 261 |
Our net asset value increased slightly during the first quarter. Including the positive impact from the divestiture of CaridianBCT of SEK 4.5 bn., our net asset value grew by 2.8 percent. The comparable market index declined by 1 percent during the first quarter. The discount to net asset value declined from 37 percent to 32 percent during the quarter.
Since our inception in 1916, Investor has been committed to owning and building best-in-class companies. Our focus is on creating industrial value with a long-term holding horizon. We are willing to support tough decisions to maximize long-term value creation, while not forgetting that the long-term consists of numerous short-terms.
As mentioned in our year-end report in January, we began a review of structural options for Investor AB during the fall of 2010. The review had the aim of clarifying our business model, simplifying our structure and reducing costs.
During this review, consideration was given to potential structural alternatives, including a possible separation of selected holdings into a new company. This review was conclusive in determining that the continuation of Investor AB as a single entity provides the greatest long-term value to our shareholders, as single entity creates the strongest flexibility to optimize the levels of investment in targeted holdings, to renew Investor AB's portfolio, and to fund the payment of dividends to our shareholders. Furthermore, a break-up would, in addition to the loss of flexibility, incur significant transaction costs as well as an increase in annual costs, primarily due to the duplication of corporate structures. A distribution of an investment company would also trigger substantial adverse tax consequences for the shareholders under present tax regulation.
As of this report, the new structure will be applied. Core Investments will consist of our listed investments in which we have significant influence; Atlas Copco, SEB, ABB, AstraZeneca, Ericsson, Electrolux, Husqvarna, Saab, NASDAQ OMX and Swedish Orphan Biovitrum, and our majority-owned subsidiaries Mölnlycke Health Care, Aleris and Grand Hôtel. In these companies, we are an active owner with a long-term holding horizon. Value creation is generated through dividends from listed investments, cash-flow from subsidiaries once debt has been reduced to target levels, and value appreciation. The return requirement is to exceed our cost of capital.
Financial Investments will consist of unlisted partner-owned companies, including 3 Scandinavia, Gambro and Lindorff, Investor Growth Capital and our investments in the EQT funds. We will continue to work with the partner-owned companies in the same way as we work with Core Investments. Over time, they will either be divested or become Core Investments, i.e. listed or subsidiaries. The objective of Financial Investments is to achieve annual returns of 15 percent and generate an attractive cash flow to Investor.
As of July 1, 2011, Investor Growth Capital will become a standalone entity. All investments and proceeds from divestitures until July 1 will be included in the new structure. To facilitate the transition, Investor will contribute SEK 1.5 bn., after which no more capital will be provided. Approximately 50 percent of annual realized proceeds net of operating and transaction costs, will be distributed to Investor, and the remainder will be available for Investor Growth Capital to reinvest. This model allows Investor Growth Capital to grow if it realizes more than 2x cost on investments which are divested. Furthermore, this model defines our maximum capital commitment and will enable future capital distributions from Investor Growth Capital. We focus on China and the U.S.where the track record and return prospects are the strongest. Consequently, Investor Growth Capital will wind down its office in Stockholm. The existing portfolio of European investments will be managed to maximize value. The Asian operations will be focused on investments in China through the Beijing office.
EQT buys, develops and sells companies with an ownership tenure of 3-8 years. This is different from Investor's main strategy, but has proven to be financially successful for Investor, as we receive a portion of the profit sharing (carry) and surplus management fees. We plan to invest EUR 450 m. in the new EQT VI fund.
Despite the strong performance generated over time by a dedicated team, we will as part of simplifying our structure, close down our in-house trading unit Active Portfolio Management. A large portion of the portfolio has already been wound down. Going forward, we will maintain a limited internal capacity to execute transactions in public securities.
As a result of the changes, Investor reduces annual cost, SEK 620 m. in 2010, by SEK 140 m. with full run-rate effect by the end of 2012. About one-third of remaining costs are attributable to Investor Growth Capital and will, as it becomes a stand-alone entity by July 1, 2011, be excluded from Investor´s operating cost. A restructuring charge totaling SEK 150 m. has been taken during the first quarter.
The steps which we are taking to define more clearly the roles of Core and Financial Investments will improve our business model. However, we will also continue our work to increase transparency and improve our communication in various ways.
We do not believe that the discount is a day-to-day management tool. Over time, we believe that the new structure will reduce the discount as we increase transparency and reduce costs.
In March, Gambro Holding entered into an agreement to sell CaridianBCT to Japanese Terumo. All regulatory approvals have now been received and we expect closing shortly. One of our first actions after taking Gambro private in 2006 was to make CaridianBCT an independent company, with a dedicated board and management. The company has strengthened its position as a clear global market leader in blood technologies. During our ownership, annual sales growth has exceeded 10 percent and EBITDA has almost doubled.
CaridianBCT will now gain an excellent industrial platform from which it can continue to grow and expand its market leading business. For Investor this will contribute about SEK 4.5 bn. to net asset value. This transaction illustrates the merits of industrial value creation in a company with a strong strategic position in the value chain of an industry. It also demonstrates the valuation premium such a company commands. Comparable industry peers trade at a multiple of 8-9x EBITDA. We have sold CaridianBCT at 15x EBITDA. The proceeds of the transaction will enable a reduction of net debt in Gambro. With the new capital structure of Gambro, the strategic flexibility has increased and we can maintain momentum in the ongoing restructuring and product development.
The Board, the management group and I are convinced that these changes will create a stronger, more focused platform for Investor during the coming years. The foundation of our model is our greatperforming companies and their prospects of profitable growth.
Börje Ekholm
During the first quarter, the net asset value increased from SEK 169.4 bn. to SEK 169.6 bn. The profit for the period attributable to the owners of the Parent Company, including unrealized change in value, was SEK 0.4 bn. (7.5). The change in net asset value, with dividend added back, was 0 percent during the first quarter (5). During the same period, the total return of the Stockholm Stock Exchange (SIXRX) was -1 percent.
| SEK m. | 1/1-3/31 2011 |
1/1-3/31 2010 |
|---|---|---|
| Changes in value | -541 | 7 282 |
| Dividends | 1 313 | 809 |
| Other operating income1) | 118 | 252 |
| Cost of investing activities | -151 | -171 |
| Other items2) | -393 | -697 |
| Profit (+)/Loss (-) | 346 | 7 475 |
| Non-controlling interest | 43 | - |
| Dividend | - | - |
| Other effects on equity | -212 | 135 |
| Total | 177 | 7 610 |
1) Includes interest received on shareholder loans. 2) Other items include shares of results of associates and a restructuring cost of SEK 150
m. during the first quarter 2011.
| SEK m. | 1/1-3/31 2011 | 1/1-3/31 2010 |
|---|---|---|
| Core Investments | ||
| Listed | -809 | 7 581 |
| Subsidiaries | -114 | -7 |
| Financial Investments | 1 586 | 332 |
| Investor groupwide | -486 | -296 |
| Total | 177 | 7 610 |
Net debt totaled SEK 13,698 m. on March 31, 2011 (11,472), corresponding to leverage of 7.5 percent (6.3). Debt financing of the subsidiaries within Core Investments and the partner-owned holdings within Financial Investments, except for 3 Scandinavia, is arranged on an independent ring-fenced basis and hence not included in Investor's net debt. For more information, see page 15.
| SEK m. | Consolidated balance sheet |
Deductions related to majority owned subsidiaries1) |
Investor's net debt |
|---|---|---|---|
| Other financial instruments | 1 352 | 1 3522) | |
| Cash, bank and short-term investments |
8 808 | -568 | 8 2402) |
| Receivables included in net debt | 243 | 2433) | |
| Loans | -40 966 | 17 659 | -23 3073) |
| Provision for pensions | -617 | 391 | -2263) |
| -31 180 | 17 482 | -13 698 |
1) Mölnlycke Health Care, Aleris and Grand Hôtel.
2) Included in cash and readily available placements.
3) Included in gross 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). | 8-10 percent long term annual return. |
| Core Investments - Subsidiaries |
Majority-owned medium- to large-size companies with international operations. Long ownership horizon. |
Majority ownership for strategic influence. |
Subsidiaries are valued according to the acquisition method. |
8-10 percent long term annual return. |
| Financial Investments |
Partner-owned investments | Significant minority ownership for strategic influence. |
Valued according to the equity method. Income and balance sheet items reported with one month's delay. |
15 percent annual return on average for the business |
| Investor Growth Capital | Leading minority ownership in expansion stage companies. |
Unlisted holdings at multiple or third-party valuation, listed shares at share price (bid). |
area. | |
| EQT | Largest investor in EQT's funds. | Unlisted holdings at multiple or third-party valuation, listed shares at share price (bid). |
Core Investments contributed to the net asset value by SEK -923 m. during the first quarter (7,574), of which the listed holdings contributed with SEK -809 m. (7,581), and the subsidiaries with SEK -114 m. (-7).
Read more at www.investorab.com under "Our Investments" >>
As of the first quarter, Core Investments comprises of the listed holdings, including former Operating Investments Sobi and NASDAQ OMX, and the subsidiaries Mölnlycke Health Care, Aleris and Grand Hôtel.
During the quarter, SEK 1,638 m. was invested, of which SEK 1,638 m. in listed Core Investments and SEK 0 m. in the subsidiaries.
Core Investments contributed to the net asset value by SEK -923 m. in the period (7,574), of which the listed contributed with SEK -809 m. (7,581), and the subsidiaries with SEK -114 m. (-7).
| SEK m. | 1/1-3/31 2011 | 1/1-3/31 2010 |
|---|---|---|
| Changes in value, listed | -2 089 | 6 808 |
| Dividends, listed | 1 303 | 798 |
| Change in reported value, subsidiaries | -96 | 8 |
| Cost of investing activities | -41 | -40 |
| Total | -923 | 7 574 |
Listed Core Investments contributed to net asset value with SEK -809 m. during the first quarter (7,581). The total return for the listed holdings amounted to -1 percent.
Read more at www.investorab.com under "Our Investments" >>
In line with our strategy, we continued to add to our position in Electrolux as we found the valuation fundamentally attractive.
Electrolux has resumed negotiations regarding the ongoing acquisition of Egyptian Olympic Group, having been on hold since the political crisis earlier this year. ABB closed the previously announced acquisition of the U.S. company Baldor.
Sobi announced a cost savings program and a new rights issue of approximately SEK 600 m. to support growth initiatives going forward. Given our strong belief in the company's long-term prospects, we fully support the rights issue and have committed to subscribe for our pro rata share of approximately 40 percent.
After the end of the quarter, NASDAQ OMX and IntercontinentalExchange (ICE) announced a joint bid for NYSE Euronext. Being a long-term owner in NASDAQ OMX, Investor supports the bid and finds a strong industrial logic in combining the two companies.
1,750,000 shares were purchased in Electrolux and 250,000 A-shares were converted to B-shares. 1,000,000 shares in NASDAQ OMX were purchased in addition to the shares purchased through a forward agreement from Bourse Dubai in December 2010, and those transferred from Financial Investments.
Dividends from listed Core Investments totaled SEK 1,303 m. in the first quarter (798). Atlas Copco announced a SEK 6 bn. mandatory redemption program, of which Investor's share corresponds to approximately SEK 1 bn. Capital is expected to be distributed during the second quarter 2011.
Listed Core Investments contributed to net asset value by SEK -809 m. during the first quarter (7,581). SEB and Ericsson had the largest positive impact of SEK 782 m. and SEK 714 m. respectively, while Electrolux had a negative impact of SEK 1,196 m. and Sobi of SEK 1,007 m.
| Total return for Investor1) 2011 (%) |
Average total market return2) 5 years (%) |
|
|---|---|---|
| ABB | 1 | 11 |
| AstraZeneca | -2 | -2 |
| Atlas Copco | -1 | 15 |
| Electrolux | -153) | 144) |
| Ericsson | 6 | -9 |
| Husqvarna | -4 | 35) |
| NASDAQ OMX6) | 13) | -14 |
| Saab | 12 | -5 |
| SEB | 3 | -8 |
| Sobi | -29 | -137) |
1) Calculated as the sum of share price changes and dividends added back,
including add-on investments and/or divestments. 2) Calculated as the sum of share price changes and reinvested dividends (Source
AlertIR/Millistream). 3) Without transactions conducted during the year, Investor's total return for
Electrolux and NASDAQ OMX would have been -15 and 0 percent respectively. 4) Figure includes Husqvarna up until spin out of the company on June 13, 2006.
5) Average total return since the listing on June 13, 2006. 6) The corresponding return in USD terms was 9 percent during the quarter and -14 percent on average since February 27, 2008.
7) Average total return since the listing on September 15, 2006.
Within Core Investments, the subsidiaries contributed to the net asset value with SEK -114 m. in the first quarter (-7). The negative contribution was mainly attributable to adjustments related to the purchase price allocation in Mölnlycke Health Care.
Read more at www.investorab.com under "Our Investments" >>
The subsidiaries comprise of our majority-owned investments Mölnlycke Health Care, Aleris and Grand Hôtel.
No investments or divestments were made during the quarter.
The subsidiaries' reported values are shown in the table below.
| 3/31 2011 | 12/31 2010 | |||
|---|---|---|---|---|
| SEK/share | SEK m. SEK/share | SEK m. | ||
| Core Investments Subsidiaries |
||||
| Mölnlycke Health Care | 17 | 13 012 | 18 | 13 432 |
| Aleris | 3 | 2 472 | 3 | 2 465 |
| Grand Hôtel | 2 | 1 074 | 2 | 1 091 |
| Total | 22 | 16 558 | 23 | 16 988 |
| SEK m. | 1/1-3/31 2011 | 1/1-3/31 2010 |
|---|---|---|
| Mölnlycke Health Care | -88 | 8 |
| Aleris | 9 | - |
| Grand Hôtel | -17 | 0 |
| Cost of investing activities | -18 | -15 |
| Total | -114 | -7 |
Read more at www.molnlycke.com >>
| Income statement items | Q1 2011 | Q1 2010 | Rolling 4 quarters |
|---|---|---|---|
| Sales, EUR m. | 244 | 223 | 970 |
| Sales growth, % | 9 | 8 | |
| Sales growth, constant currency, % | 6 | 7 | |
| EBITDA , adj, EUR m. | 67 | 60 | 276 |
| EBITDA, adj. % | 27 | 27 | 28 |
| EBITDA, EUR m.1) | 22 | 60 | 227 |
| EBITDA % | 9 | 27 | 23 |
| Balance sheet items | Q1 2011 | Q4 2010 | |
| Net debt (EUR m.) | 1 578 | 1 578 | |
| Q1 2011 | Q1 2010 | ||
| Number of employees | 6 985 | 6 735 | |
1) The purchase price allocation, performed in conjunction with the acquisition of the majority in Mölnlycke Health Care allocated EUR 49 m. to inventory. This market value has now been consumed, impacting EBITDA negatively by EUR 4 m. during the fourth quarter of 2010 and by EUR 45 m. during the first quarter of 2011.
| Investment year | 2007/2010 |
|---|---|
| Capital invested, SEK m. | 10 545 |
| Investor's ownership (capital) % | 96 |
| Reported equity value, Investor's share, March 31, 2011, SEK m. | 13 012 |
Mölnlycke Health Care is a world-leading manufacturer of single-use
surgical and wound care products and services for the professional health care sector.
| Rolling | |||
|---|---|---|---|
| Income statement items | Q1 2011 | Q1 2010 | 4 quarters |
| Sales, SEK m. | 1 071 | 1 024 | 4 167 |
| Sales growth, % | 5 | 4 | |
| Sales growth, constant currency, % | 9 | - | |
| EBITDA, SEK m. | 81 | 79 | 298 |
| EBITDA, % | 8 | 8 | 7 |
| Balance sheet items | Q1 2011 | Q4 2010 | |
| Net debt, SEK m. | 1 997 | 1 980 | |
| Q1 2011 | Q1 2010 | ||
| Number of employees | 3 825 | 3 700 | |
| 1) Owned and consolidated by Investor since August 2010. |
| Investment year | 2010 |
|---|---|
| Capital invested, SEK m. | 2 521 |
| Investor's ownership (capital) % | 97 |
| Reported equity value, Investor's share, March 31, 2011, SEK m. | 2 472 |
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.
| Rolling | |||
|---|---|---|---|
| Income statement items | Q1 2011 | Q1 2010 | 4 quarters |
| Sales, SEK m. | 70 | 73 | 390 |
| Sales growth, % | -4 | 0 | |
| EBITDA, SEK m. | -2 | 9 | 84 |
| EBITDA, % | -3 | 12 | 22 |
| Balance sheet items | Q1 2011 | Q4 2010 | |
| Net debt, SEK m. | 506 | 481 | |
| Q1 2011 | Q1 2010 | ||
| Number of employees | 255 | 240 |
| Investment year | 1968 |
|---|---|
| Capital invested, SEK m. | 577 |
| Investor's ownership (capital) % | 100 |
| Reported equity value, Investor's share, March 31, 2011, SEK m. | 1 074 |
Grand Hôtel is Scandinavia's leading five-star hotel, opened in 1874, and has a unique offering with 345 guest rooms and a number of conference areas, restaurants, bars and a world class spa.
Financial Investments contributed to the net asset value with SEK 1,586 m. in the first quarter (332) of which partner-owned investments contributed SEK 85 m. (-88), EQT SEK 1,542 m. (-440), Investor Growth Capital SEK -26 m. (481), Active Portfolio Management SEK 0 m. (177) and Other investments SEK 58 m. (281).
As of the first quarter 2011, Financial Investments includes our partner-owned investments Gambro, CaridianBCT, Lindorff and 3 Scandinavia, the wholly-owned Investor Growth Capital, the investments in EQT funds and Active Portfolio Management, as well as some minor holdings.
Gambro Holding, controlled by Investor (49%) and EQT IV (51%), signed an agreement to sell CaridianBCT to Japanese Terumo for an enterprise value of USD 2,625 m., corresponding to approximately 15x EBITDA 2010.
The transaction is estimated to increase Investor's share of Gambro Holding's book equity by approximately SEK 3.8 bn. Upon closing, expected on April 13, Investor´s share of book equity in Gambro Holding will amount to approximately SEK 5.5 bn. In addition, Investor's indirect ownership of Gambro through the EQT IV fund investment will increase to approximately SEK 1.0 bn. from SEK 0.3 bn. In total, the positive net asset value impact is estimated at SEK 4.5 bn.
3 Scandinavia has changed the accounting policy for customer acquisition, and customer retention cost. Comparative figures have been restated, with a negative effect of SEK 561 m. on reported value as of December 31, 2010. For more details, see page 16.
| 3/31 2011 | 12/31 2010 | |||
|---|---|---|---|---|
| SEK/share | SEK m. | SEK/share | SEK m. | |
| Partner-owned | ||||
| Lindorff | 5 | 3 860 | 5 | 3 789 |
| Gambro Holding | 2 | 1 687 | 2 | 1 740 |
| 3 Scandinavia | 1 | 758 | 1 | 720 |
| Other Partner-owned1) | 0 | 124 | 0 | 128 |
| EQT2) | 18 | 13 407 | 14 | 10 829 |
| Investor Growth Capital | 11 | 8 380 | 11 | 8 468 |
| Active Portfolio Management | 2 | 1 581 | 2 | 1 607 |
| Other3) | 2 | 1 328 | 4 | 2 8814) |
| Total | 41 | 31 125 | 39 | 30 162 |
1) Includes holdings in Kunskapsskolan, Novare and Act Group.
2) Investor's share of capital in the 14 EQT funds varies between 10 and 64 percent.
3) Includes among others, the holding in EQT Partners, acquired debt and land & real estate.
4) Includes holdings in NASDAQ OMX which have been transferred to Core Investments.
| SEK m. | 1/1-3/31 2011 | 1/1-3/31 2010 |
|---|---|---|
| Partner-owned | ||
| investments | ||
| Lindorff | 103 | 161 |
| Gambro Holding | -53 | -101 |
| 3 Scandinavia | 37 | -154 |
| Other partner-owned | -2 | 6 |
| EQT | 1 542 | -440 |
| Investor Growth Capital | -26 | 481 |
| Active Portfolio Management | 0 | 177 |
| Other | 58 | 281 |
| Cost of investing activities | -73 | -79 |
| Total | 1 586 | 332 |
Read more at: www.lindorff.com >>
| Rolling | |||
|---|---|---|---|
| Income statement items | Q1 2011 | Q1 2010 | 4 quarters |
| Sales (EUR m.) | 852) | 792) | 315 |
| Sales growth, % | 8 | 8 | |
| Sales growth, constant currency, % | 4 | 2 | |
| EBITdA3) (EUR m.) | 22 | 22 | 89 |
| EBITdA3), % | 26 | 28 | 28 |
| Balance sheet items | Q1 2011 | Q4 2010 | |
| Net debt (EUR m.) | 689 | 615 | |
| Q1 2011 | Q1 2010 | ||
| Number of employees | 2 760 | 2 295 | |
| 1) Income statement items and balance sheet items are reported with one month's delay. |
2) Including amortization of surplus value of EUR 4 m. for Q1 2011 and EUR -3 m. for Q1 2010.
3) EBITdA=EBITDA after portfolio depreciation.
| Investment year | 2008 |
|---|---|
| Capital invested, SEK m. | 3 735 |
| Investor's ownership (capital) % | 58 |
| Reported equity value, Investor's share, March 31, 2011, SEK m. | 3 860 |
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.
| Income statement items | Q1 2011 | Q1 2010 | Rolling 4 quarters |
|---|---|---|---|
| Sales (SEK m.) | 2 809 | 3 039 | 11 922 |
| Sales growth, % | -8 | -2 | |
| Sales growth, constant currency, % | -1 | 2 | |
| Normalized EBITDA (SEK m.) | 520 | 545 | 2 370 |
| Normalized EBITDA, % | 19 | 18 | 20 |
| Q1 2011 | Q1 2010 | ||
| Number of employees | 7 380 | 7 930 | |
| 1) Income statement items are reported with one month's delay. |
| Investment year | 2006 |
|---|---|
| Investor's ownership (capital) % | 49 |
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.
Read more at www.caridianbct.com>>
| Income statement items | Q1 2011 | Q1 2010 | Rolling 4 quarters |
|---|---|---|---|
| Sales (USD m.) | 140 | 126 | 532 |
| Sales growth, % | 11 | 9 | |
| Sales growth, constant currency, % | 13 | 4 | |
| EBITDA (USD m.) | 52 | 35 | 188 |
| EBITDA, % | 37 | 28 | 35 |
| Q1 2011 | Q1 2010 | |
|---|---|---|
| Number of employees | 2 265 | 2 185 |
| 1) Income statement items are reported with one month's delay. |
| Investment year | 2006 |
|---|---|
| Investor's ownership (capital) % | 49 |
CaridianBCT is the leading global provider of technologies and services in automated blood collections, therapeutic apheresis and cell therapy systems, whole blood processes and pathogen reduction technologies.
Gambro Holding owns Gambro and CaridianBCT. Since net debt of the companies has not been formally distributed, the effect on Investor's net asset value and net debt are reported as a total for the two companies. Upon closing of the divestment of CaridianBCT, pro forma net debt is estimated at approximately SEK 7.5 bn. The external debt in Gambro Holding will subsenquently be adjusted, to better suit Gambro as the sole remaining entity under Gambro Holding.
| Balance sheet items | Q1 2011 | Q4 2010 |
|---|---|---|
| Net debt (SEK m.) | 23 592 | 25 380 |
| Investment year | 2006 | |
| Capital invested, SEK m. | 4 246 | |
| Investor's ownership (capital), % | 49 | |
| Reported equity value, Investor's share, March 31, 2011, SEK m. | 1 687 | |
| 1) Balance sheet items are reported with one month's delay. |
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| Rolling | |||
|---|---|---|---|
| Income statement items | Q1 2011 | Q1 2010 | 4 quarters |
| Sales (SEK m.) | 1 892 | 1 664 | 7 243 |
| Sales growth, % | 14 | 20 | |
| Sales growth, constant currency, % | 20 | 23 | |
| EBITDA2) (SEK m.) | 401 | 200 | 1 268 |
| EBITDA2), % | 21 | 12 | 18 |
| Balance sheet items | Q1 2011 | Q4 2010 | |
| Net debt (SEK m.) | 10 241 | 9 910 | |
| Q1 2011 | Q1 2010 | ||
| Number of employees | 2 255 | 2 065 | |
| Other key figures3) | 3/31 2011 | 12/31 2010 | |
| Subscribers | 1 911 000 | 1 866 000 | |
| ARPU4) (SEK) | 325 | 329 | |
| Non-voice ARPU4) (%) | 44 | 43 | |
| Postpaid/prepaid ratio | 87/13 | 87/13 | |
1) Income statement items and balance sheet items are reported with one month's delay. 2) EBITDA is defined as EBITDA after deducting all customer acquisition and retention
costs.
3) Other key figures are reported without delay.
4) 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, March 31, 2011, SEK m. | 758 |
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 growth driven by fixed to mobile migration in voice and broadband.
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Investments in EQT funds had a value increase of 14 percent during the quarter, corresponding to 16 percent in constant currencies. The value appreciation was explained by improving operating metrics and multiple expansion for several holdings, as well as the exit of Kabel BW.
Cash flow (divestments less investments) was SEK -970 m. (-656). During the first quarter, a total of SEK 982 m. was invested (845), of which SEK 800 m. in new investments (628) and SEK 182 m. in add-on investments (217). Sales of investments totaled SEK 12 m. (189).
Investor's total outstanding commitments to EQT funds amounted to SEK 2.3 bn. at the end of the quarter (4.2), excluding the planned investment of EUR 450 m. in EQT VI.
| 3/31 2011 | 12/31 2010 | |||
|---|---|---|---|---|
| SEK/share | SEK m. SEK/share | SEK m. | ||
| EQT | 18 | 13 407 | 14 | 10 829 |
| SEK m. | 1/1-3/31 2011 | 1/1-3/31 2010 |
|---|---|---|
| Change in value (incl. dividends) | 1 542 | -440 |
| Total | 1 542 | -440 |
1) As of March 31, 2011, the five largest investments were (in alphabetical order): Dako (Denmark), ISS (Denmark), Kabel BW (Germany), Securitas Direct (Sweden) and Springer Science+Business Media (Germany).
| Total | Investor's | Market value | ||
|---|---|---|---|---|
| capital | Investor's | remaining | of Investor's | |
| SEK m. | commit ments |
share of fund |
capital commitments |
remaining holdings |
| Terminated funds1) |
11 257 | - | 15 | |
| EQT III | 17 851 | 32% | 17 | 1 513 |
| EQT IV | 22 314 | 19% | 207 | 4 2642) |
| EQT V | 37 934 | 12% | 734 | 5 369 |
| EQT Opportunity |
3 317 | 25% | - | 208 |
| EQT Expansion Capital I |
1 688 | 16% | 32 | 83 |
| EQT Expansion Capital II |
4 230 | 15% | 414 | 174 |
| EQT Asia* | 1 989 | 64% | - | 322 |
| EQT Greater China II |
3 367 | 37% | 158 | 984 |
| EQT Infrastructure |
10 416 | 10% | 580 | 380 |
| EQT Credit Fund |
2 869 | 10% | 185 | 95 |
| Total3) | 117 232 | 2 3274) | 13 4074) |
*Fully invested
1) EQT I, EQT II, EQT Denmark and EQT Finland.
2) Gambro Holding valued according to the same principles used for Investor's direct
ownership. 3) The following rates were used to translate to SEK: EUR = 8.93 (EQT V, EQT Expansion Capital I, II, EQT Opportunity, EQT Infrastructure, EQT Credit Fund), USD = 6.29 (EQT Greater China II).
4) In addition, Investor plans to commit EUR 450 m. to the new fund EQT VI.
EQT is independent from Investor, although Investor is a minority owner of the management company, as well as the sponsor and largest investor in all of the funds. 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 13 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.
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As announced on April 7, as of July 1, 2011, Investor Growth Capital will be restructured into a standalone entity, carrying its own cost. To facilitate this transition, Investor will provide a total of SEK 1.5 bn. over 2011-2012, after which no additional funding will be contributed. Approximately 50 percent of annual realized proceeds after operating and transaction cost will be distributed to Investor, with the remaining part available for Investor Growth Capital to invest. The Stockholm office will be wound down. The European portfolio will be managed to maximize value, and no new investments will be made. The Asian operations will be concentrated to Beijing and the Hong Kong office will be closed.
No major new investments were made during the quarter.
Add-on investments were made in Atlas Antibodies, ExaGrid, Mpex Pharmaceuticals and Visible Technologies.
The holding Synosia Therapeutics merged with Biotie (listed on the Helsinki Stock Exchange).
The holdings in Achillion and Constant Contact were partly divested.
Investor Growth Capital's reported value was flat during the quarter, but increased by 5 percent in constant currencies.
Cash flow (divestments less investments) was SEK 40 m. (1,536). A total of SEK 153 m. (356) was invested, of which SEK 3 m. in new investments (206) and SEK 150 m. in addon investments (150). Sales of investments totaled SEK 193 m. (1,892).
| 3/31 2011 | 12/31 2010 | |||
|---|---|---|---|---|
| SEK/share | SEK m. SEK/share | SEK m. | ||
| Investor Growth Capital | 11 | 8 380 | 11 | 8 468 |
| SEK m. | 1/1-3/31 2011 |
1/1-3/31 2010 |
|---|---|---|
| Changes in value (incl. dividends) | -26 | 481 |
| Cost of investing activities1) | -54 | -54 |
| Total | -80 | 427 |
1) Partially includes administrative costs for EQT investments.
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| 3/31 2011 | 12/31 2010 | |||
|---|---|---|---|---|
| SEK/share | SEK m. SEK/share | SEK m. | ||
| Active Portfolio Management | 2 | 1 581 | 2 | 1 607 |
1) As of March 31, 2011, the five largest investments were (in alphabetical order): Aerocrine AB (Sweden), ChinaCache (China), China Greens (China), Greenway Medical Technologies (U.S.) and Mindjet Corporation (U.S.)
Investor's wholly-owned subsidiary Investor Growth Capital makes expansion stage venture capital investments in promising growth companies in the U.S., and Asia. The European operations will be wound down, while existing investments will be managed to maximize value. Investor Growth Capital generally invests in companies that are often generating revenue or soon will be. Typically, these holdings have no or very low financial leverage. Returns are generated through divestments. Typical exits include initial public offerings or trade sales to industrial or financial players, normally after a three to seven year holding period.
The valuations are reviewed quarterly and are often based on the latest externally priced financing round. Where applicable, peer group multiples are used. Liquidity discounts are applied.
| Q1 | Full Year | Q4 | Q3 | Q2 | Q1 | Full Year | |
|---|---|---|---|---|---|---|---|
| Core Investments - Subsidiaries | 2011 | 2010 | 2010 | 2010 | 2010 | 2010 | 2009 |
| Mölnlycke Health Care (EUR m.) | |||||||
| Net Sales | 244 | 949 | 246 | 241 | 239 | 223 | 865 |
| EBITDA, adj. | 67 | 269 | 74 | 70 | 65 | 60 | 236 |
| EBITDA, adj. (%) | 27 | 28 | 30 | 29 | 27 | 27 | 27 |
| EBITDA | 221) | 2651) | 701) | 70 | 65 | 60 | 236 |
| EBITDA (%) | 9 | 28 | 28 | 29 | 27 | 27 | 27 |
| Net debt | 1 578 | 1 578 | 1 578 | 1 638 | 1 678 | 1 690 | 1 673 |
| Employees | 6 985 | 6 985 | 6 985 | 6 910 | 6 930 | 6 735 | 6 745 |
| Aleris2) (SEK m.) | |||||||
| Net Sales | 1 071 | 4 120 | 1 068 | 952 | 1 076 | 1 024 | 3 882 |
| EBITDA | 81 | 296 | 65 | 59 | 93 | 79 | 332 |
| EBITDA (%) | 8 | 7 | 6 | 6 | 9 | 8 | 9 |
| Net debt | 1 997 | 1 980 | 1 980 | 1 952 | 1 505 | 1 523 | 1 624 |
| Employees | 3 825 | 3 775 | 3 775 | 3 760 | 3 650 | 3 700 | 3 790 |
| Grand Hôtel (SEK m.) | |||||||
| Net Sales | 70 | 393 | 108 | 109 | 103 | 73 | 368 |
| EBITDA | -2 | 95 | 21 | 37 | 28 | 9 | 76 |
| EBITDA (%) | -3 | 24 | 19 | 34 | 27 | 12 | 21 |
| Net debt | 506 | 481 | 481 | 482 | 492 | 493 | 524 |
| Employees | 255 | 295 | 295 | 275 | 265 | 240 | 280 |
| Financial Investments | |||||||
| Partner-owned investments | |||||||
| Lindorff3) (EUR m.) | |||||||
| Net Sales | 854) | 3094) | 76 | 80 | 74 | 794) | 267 |
| EBITdA5) | 22 | 89 | 16 | 30 | 21 | 22 | 59 |
| EBITdA5) (%) | 26 | 29 | 21 | 38 | 28 | 28 | 22 |
| Net debt | 689 | 615 | 615 | 578 | 549 | 547 | 530 |
| Employees | 2 760 | 2 465 | 2 465 | 2 315 | 2 270 | 2 295 | 2 270 |
| Gambro3)(SEK m.) | |||||||
| Net Sales | 2 809 | 12 152 | 2 998 | 3 045 | 3 070 | 3 039 | 12 484 |
| Normalized EBITDA | 520 | 2 395 | 611 | 571 | 668 | 545 | 2 384 |
| Normalized EBITDA (%) | 19 | 20 | 20 | 19 | 22 | 18 | 19 |
| Employees | 7 380 | 7 650 | 7 650 | 7 725 | 7 780 | 7 930 | 8 040 |
| CaridianBCT3)(USD m.) | |||||||
| Net Sales | 140 | 518 | 134 | 128 | 130 | 126 | 486 |
| EBITDA | 52 | 171 | 45 | 49 | 42 | 35 | 140 |
| EBITDA (%) | 37 | 33 | 34 | 38 | 32 | 28 | 29 |
| Employees | 2 265 | 2 270 | 2 270 | 2 260 | 2 225 | 2 185 | 2 160 |
| Gambro Holding3)(SEK m.) | |||||||
| Net debt | 23 592 | 25 380 | 25 380 | 25 981 | 26 529 | 25 476 | 25 559 |
| 3 Scandinavia3)(SEK m.) | |||||||
| Net Sales | 1 892 | 7 015 | 1 885 | 1 777 | 1 689 | 1 664 | 5 840 |
| EBITDA6) | 401 | 1 067 | 302 | 329 | 236 | 200 | 434 |
| EBITDA (%) | 21 | 15 | 16 | 19 | 14 | 12 | 7 |
| Net debt | 10 241 | 9 910 | 9 910 | 9 723 | 10 071 | 10 172 | 10 230 |
| Employees | 2 255 | 2 245 | 2 245 | 2 160 | 2 080 | 2 065 | 2 095 |
| EQT | |||||||
| Reported value | 13 407 | 10 829 | 10 829 | 9 565 | 10 650 | 9 423 | 9 136 |
| Reported value change % | 14 | 13 | 12 | -6 | 12 | -5 | 6 |
| Purchases | 982 | 1 731 | 156 | 351 | 379 | 845 | 1 686 |
| Sales | 12 | 1 219 | 59 | 921 | 50 | 189 | 215 |
| Investor Growth Capital | |||||||
| Reported value | 8 380 | 8 468 | 8 468 | 7 864 | 8 080 | 8 288 | 9 197 |
| Reported value change % | 0 | 4 | 9 | -8 | -2 | 5 | 6 |
| Purchases | 153 | 1 577 | 143 | 612 | 466 | 356 | 1 235 |
| Sales | 193 | 2 592 | 173 | 76 | 451 | 1 892 | 348 |
1) The purchase price allocation, performed in conjunction with the acquisition of the majority in Mölnlycke Health Care allocated EUR 49 m. to inventory. This value has now been consumed, impacting EBITDA negatively by EUR 4 m. during the fourth quarter of 2010 and by EUR 45 m. during the first quarter of 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) Including amortization of surplus value of EUR 4 m. for Q1 2011, EUR -3 m. for Q1 2010 and EUR -7 m. for 2010.
5) EBITdA=EBITDA after portfolio depreciation. 6) EBITDA is defined as EBITDA after deducting all customer acquisition and retention costs.
Net debt totaled SEK 13,698 m. on March 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 majority owned subsidiaries1) |
Investor's net debt |
|---|---|---|---|
| Other financial instruments | 1 352 | 1 3522) | |
| Cash, bank and short-term investments |
8 808 | -568 | 8 2402) |
| Receivables included in net debt | 243 | 2433) | |
| Loans | -40 966 | 17 659 | -23 3073) |
| Provision for pensions | -617 | 391 | -2263) |
| -31 180 | 17 482 | -13 698 |
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 9,592 m. on March 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 23,290 m. (23,595) at the end of the quarter.
Net investments totaled SEK -2,728 m. during the period (-793). Dividends received from listed Core Investments amounted to SEK 1,303 m. during the quarter (798).
Net financial items for the reporting period amounted to SEK -596 m. (-327), of which SEK -537 m. is attributable to majority-owned subsidiaries (-139). Net financial items include interest income of SEK 24 m. (78) and interest expenses totaling SEK 686 m. (175). The unrealized result from revaluation of loans and swaps amounted to SEK 129 m. (-98). Investor uses swaps when managing the interest rate tenor. The remaining effects consist primarily of unrealized currency translation differences from shareholder loans to Lindorff and Mölnlycke Health Care.
The average maturity of the debt portfolio was 11.8 years on March 31, 2011 (13.3), excluding the debt of Aleris, Mölnlycke Health Care and Grand Hôtel.
During the quarter, cost for Core Investments and Financial Investments amounted to SEK 41 m. (40) and SEK 73 m. respectively (79). Including group wide cost, cost of investing activities totaled SEK 151 m. during the period (171), representing 0.3 percent of our period-end total assets on an annualized basis (0.5). Cost of investing activities include commitments within the framework of long-term share-based remuneration programs amounting to SEK 18 m. (12).
In addition, a restructuring cost of SEK 150 m. relating to the organizational changes described on page 3, has been provided for. The provision is primarily for personnel-related expenses.
Cost per business area are shown in the Operating Segment overview on page 21.
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The total return (sum of share price changes and dividend added back) was 6 percent in the first quarter 2011 (4).
The average annualized total return on the Investor share was 4 percent over the past five-year period, 6 percent over the past 10-year period and 12 percent over the past 20-year period.
The performance of the Investor share is impacted by the net asset value and the fluctuations of the discount to net asset value.
The price of the Investor A-share and B-share was SEK 149.60 and SEK 153.20 respectively on March 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 115,385 m. as of March 31, 2011 (103,673).
Investor's share capital amounted to SEK 4,795 m. on March 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 did not repurchase any of its own shares, during the first quarter. On March 31, 2011, Investor owned a total of 6,683,800 of its own shares (4,683,800).
The Parent Company's result after financial items was SEK -574 m. (7,736). Value changes of equity-related holdings reported at fair value amounted to SEK -2,100 m. (6,884). Result from participations in Group companies amounted to SEK 520 m. mainly relating to reversed writedowns of participations in Group companies (3).
During the quarter, the Parent Company invested SEK 3,573 m. in financial assets (2,135), of which SEK 3,237 m. was in Group companies (546) and purchases in listed Core Investments of SEK 278 m (1,447).
Total debt increased by SEK 2,098 m. since the beginning of the year. Shareholders' equity totaled SEK 162,597 m. on March 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, also within the EU, will affect the economic situation at both macro and micro levels. The social and political unrest in North Africa, with the risk of spreading to other areas as well as the earthquake/tsunami catastrophe in Japan with its consequences, raise the level of uncertainty further.
Investor is also exposed to risks through its majority-owned subsidiaries; Mölnlycke Health Care, Aleris and Grand Hôtel. These holdings are exposed to the same risks as Investor in terms of commercial risks, financial risks, and market risks. In addition, through their business activities, these holdings are also exposed to legal/regulatory risks and political risks, for example political decisions on healthcare budgets and industry regulations.
With a strong balance sheet, the financing and liquidity risks will probably stay at the current low levels. Financing of Investor's majority-owned subsidiaries and the partnerowned investments is made on a ring-fenced basis, without guarantees from Investor, with 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 the stated policies and instructions. Investor AB's risks and uncertainties, including those related to its majority-owned subsidiaries, are described in detail in the Annual Report for 2010, see the corporate governance report and note 30. Any significant changes have not been made subsequently, the increased macroeconomic risks which are described above aside.
For the Group, this interim 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, and customer retention costs. According to the policy applied until year-end 2010, these expenditures were capitalized anda mortized 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 in the income statement. 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 the first quarter 2010 was affected by SEK -38 m. and the equity closing balance as per March 31, 2010 has been adjusted by SEK -520 m. as a result of the new policy. The corresponding figures for the full year 2010 were SEK -74 m. for the share of results of associates and SEK -561 relating to equity closing balance.
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 this quarter, Core Investments consists of listed holdings and majority-owned subsidiaries with a long ownership horizon. Financial Investments consists of partner-owned investments, Investor Growth Capital, the investments in EQT's funds, Active Portfolio Management, and some minor holdings. Comparative figures have been adjusted.
July 19, 2011 Interim Report January-June Oct. 18, 2011 Interim Report January-September Jan. 24, 2012 Year-End Report 2011 April 24, 2012 Interim Report January-March 2012
Stockholm, April 12, 2011
Börje Ekholm President and Chief Executive Officer
Johan Bygge, 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 [email protected] Mobile website: http://m.investorab.com
Ticker codes:
INVEB SS in Bloomberg INVEb.ST in Reuters W:ISBF in Datastream
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 10:30 CET on April 12, 2011.
This interim report has not been subject to review by the company's auditors.
This interim report and additional information are available on www.investorab.com
| (Restated) | ||
|---|---|---|
| 2011 | 2010 | |
| Amounts in SEK m. | 1/1-3/31 | 1/1-3/31 |
| Dividends | 1 313 | 809 |
| Other operating income | 118 | 252 |
| Changes in value | -541 | 7 282 |
| Cost of investing activities2) | -151 | -171 |
| Restructuring cost | -150 | - |
| Share of results of associates | 248 | -263 1) |
| Profit from Investing Activities | 837 | 7 909 |
| Net sales | 3 309 | 73 |
| Cost of goods and services sold | -2 452 | -84 |
| Distribution cost | -713 | - |
| Administrative cost | -247 | - |
| Research and development and other operating cost | -52 | - |
| Loss from Operating Activities | -155 | -11 |
| Operating profit | 682 | 7 898 |
| Net financial items | -596 | -327 |
| Profit before tax | 86 | 7 571 |
| Income tax | 260 | -96 |
| Profit for the period | 346 | 7 475 |
| Attributable to: | ||
| Ow ners of the Parent Company | 389 | 7 475 1) |
| Non-controlling interest | -43 | 0 |
| Profit for the period | 346 | 7 475 |
| Basic earnings per share, SEK | 0.51 | 9.80 |
| Diluted earnings per share, SEK | 0.51 | 9.80 |
| Basic average number of shares, million | 760.5 | 762.5 |
| Diluted average number of shares, million | 761.3 | 763.1 |
1) Restatement attributable to change in accounting policy, for further information see Accounting policies on page 16.
2) Including Cost of long-term share-based remuneration amounting to SEK -18 m. (-12).
| (Restated) 1) | ||
|---|---|---|
| 2011 | 2010 | |
| Amounts in SEK m. | 1/1-3/31 | 1/1-3/31 |
| Profit for the period | 346 | 7 475 1) |
| Other comprehensive income for the period, including tax | ||
| Change in fair value of cash flow hedges | 55 | 183 |
| Foreign currency translation adjustment | -15 | 1 |
| Actuarial gains and losses on defined benefit pension plans | 6 | - |
| Share of other comprehensive income of associates | -260 | -51 1) |
| Total other comprehensive income for the period | -214 | 133 |
| Total comprehensive income for the period | 132 | 7 608 |
| Attributable to: | ||
| Ow ners of the Parent Company | 168 | 7 608 1) |
| Non-controlling interest | -36 | - |
| Total comprehensive income for the period | 132 | 7 608 |
1) Restatement attributable to change in accounting policy, for further information see Accounting policies on page 16.
| (Restated) | (Restated) | ||
|---|---|---|---|
| 2011 | 2010 | 2009 | |
| Amounts in SEK m. | 3/31 | 12/31 | 12/31 |
| ASSETS | |||
| Goodw ill | 23 070 | 23 194 | - |
| Other intangible assets | 10 245 | 10 696 | 16 |
| Property, plant and equipment | 3 502 | 3 553 | 2 168 |
| Shares and participations | 159 775 | 156 184 1) | 130 305 1) |
| Other financial investments | 1 352 | 665 | 9 062 |
| Receivables included in net debt | 243 | 463 | 1 158 |
| Other long-term receivables | 5 605 | 5 535 | 9 699 |
| Total non-current assets | 203 792 | 200 290 | 152 408 |
| Inventories | 1 110 | 1 465 | - |
| Shares and participations in Active Portfolio Management | 2 400 | 4 026 | 3 936 |
| Other current receivables | 4 016 | 3 007 | 1 459 |
| Cash, bank and short-term investments | 8 808 | 11 979 | 11 934 |
| Total current assets | 16 334 | 20 477 | 17 329 |
| TOTAL ASSETS | 220 126 | 220 767 | 169 737 |
| EQUITY AND LIABILITIES | |||
| Equity | 170 191 | 170 051 1) | 142 186 1) |
| Long-term interest bearing liabilities | 38 115 | 40 536 | 23 550 |
| Provisions for pensions and similar obligations | 617 | 602 | 297 |
| Other long-term provisions and liabilities | 3 564 | 3 808 | 629 |
| Total non-current liabilities | 42 296 | 44 946 | 24 476 |
| Short-term interest bearing liabilities | 2 851 | 948 | 299 |
| Other short-term provisions and liabilities | 4 788 | 4 822 | 2 776 |
| Total current liabilities | 7 639 | 5 770 | 3 075 |
| TOTAL EQUITY AND LIABILITIES | 220 126 | 220 767 | 169 737 |
| NET DEBT/NET CASH | |||
| 2011 | 2010 | 2009 | |
| Amounts in SEK m. | 3/31 | 12/31 | 12/31 |
| Other financial investments | 1 352 | 665 | 9 062 |
| Receivables included in net debt | 243 | 463 | 1 158 |
| Cash, bank and short-term investments | 8 808 | 11 979 | 11 934 |
| Long-term interest bearing liabilities | -38 115 | -40 536 | -23 550 |
| Provisions for pensions and similar obligations | -617 | -602 | -297 |
| Short-term interest bearing liabilities | -2 851 | -948 | -299 |
| Adjustment related to Operating Investments2) | 17 482 | 17 507 | 1 404 |
| Total net debt/net cash | -13 698 | -11 472 | -588 |
| (Restated) | (Restated) | ||
|---|---|---|---|
| 2011 | 2010 | 2010 | |
| Amounts in SEK m. | 1/1-3/31 | 1/1-12/31 | 1/1-3/31 |
| Opening balance | 170 051 | 142 673 | 142 673 |
| Change in accounting policy | -487 1) | -487 1) | |
| Restated opening balance | 170 051 | 142 186 | 142 186 |
| Profit for the period | 346 | 30 611 1) | 7 475 1) |
| Other comprehensive income for the period | -214 | -101 1) | 133 1) |
| Total comprehensive income for the period | 132 | 30 510 | 7 608 |
| Dividends to ow n shareholders | - | -3 050 | - |
| Changes in non-controlling interest | - | 674 | 1 |
| Repurchases of ow n shares | - | -263 | - |
| Effect of long-term share-based remuneration | 8 | -6 | 1 |
| Closing balance | 170 191 | 170 051 | 149 796 |
| Attributable to: | |||
| Ow ners of the Parent Company | 169 563 | 169 386 1) | 149 791 1) |
| Non-controlling interest | 628 | 665 | 5 |
| Total equity | 170 191 | 170 051 | 149 796 |
| 1) Restatement attributable to change in accounting policy, for further information see Accounting policies on page 16. | |||
| 2) Including items such as: | |||
| 2 0 11 | 2 0 10 | 2 0 10 |
A mount s in SEK m. 3 / 3 1 12 / 3 1 3 / 3 1 Deductions relating to Aleris, Grand Hôtel and M ölnlycke Health Care 17 482 17 727 550 Unrealized effects from hedges in Operating Investments 0 -220 281
| 2011 | 2010 | |
|---|---|---|
| Amounts in SEK m. | 1/1-3/31 | 1/1-3/31 |
| Operating activities1) | ||
| Core Investments | ||
| Dividends received | 619 | 641 |
| Cash receipts | 3 141 | 85 |
| Cash payments | -2 787 | -80 |
| Financial Investments and cost of investing activities | ||
| Dividends received | 36 | 33 |
| Cash receipts/payments, net effect | -9 | -640 |
| Cash flows from operating activities before | ||
| net interest and income tax | 1 000 | 39 |
| Interest received/paid | -516 | 22 |
| Income tax paid | -93 | -41 |
| Cash flows from operating activities | 391 | 20 |
| Investing activities1) | ||
| Acquisitions | -2 955 | -2 930 |
| Divestments | 198 | 2 147 |
| Increase in long-term receivables | 0 | -5 |
| Decrease in long-term receivables | 21 | - |
| Acquisitions/divestments of subsidiaries, net effect on cash flow | 8 | -5 |
| Increase in other financial investments | -545 | - |
| Decrease in other financial investments | 370 | 6 597 |
| Net changes, short-term investments | 2 161 | -6 327 |
| Purchases of property, plant and equipment | -104 | -9 |
| Proceeds from sale of other investments | 1 | - |
| Net cash used in investing activities | -845 | -532 |
| Financing activities | ||
| Borrow ings | 26 | - |
| Repayment of loans | -92 | -100 |
| Net cash used in financing activities | -66 | -100 |
| Cash flows for the period | -520 | -612 |
| Cash and cash equivalents at the beginning of the year | 2 684 | 5 804 |
| Exchange difference in cash | 7 | -7 |
| Cash and cash equivalents at the end of the period | 2 171 | 5 185 |
| Cash and cash equivalents at end of the period | 2 171 | 5 185 |
| Short-term investments | 6 637 | 12 406 |
| C ash, b ank and sho rt - t erm invest ment s | 8 8 0 8 | 17 59 1 |
1) M andatory heading in statement of cash flows according to IFRS. Operating activities and investing activities in this statement are not in accordance with Investor's definition.
PERFORMANCE BY BUSINESS AREA 1/1-3/31 2011
| Investor | ||||
|---|---|---|---|---|
| Core | Financial | group | ||
| Amounts in SEK m. | Investments | Investments1) | wide | Total |
| Investing Activities | ||||
| Dividends | 1 303 | 10 | 1 313 | |
| Other operating income2) | 118 | 118 | ||
| Changes in value | -2 089 | 1 548 | -541 | |
| Cost of investing activities | -41 | -73 | -37 | -151 |
| Restructuring cost | -150 | -150 | ||
| Shares of results of associates | 248 | 248 | ||
| Operating Activities | ||||
| Net sales | 3 308 | 1 | 3 309 | |
| Cost of goods and services sold | -2 446 | -6 | -2 452 | |
| Distribution cost | -713 | -713 | ||
| Administrative cost | -247 | -247 | ||
| Research and development and other operating cost | -52 | -52 | ||
| Operating profit/loss | -977 | 1 846 | -187 | 682 |
| Net financial items | -310 | -286 | -596 | |
| Income tax | 196 | 64 | 260 | |
| Profit/loss for the period | -1 091 | 1 846 | -409 | 346 |
| Non controlling interest | 43 | 43 | ||
| Net profit/loss for the period attributable to the Parent Company | -1 048 | 1 846 | -409 | 389 |
| Other effects on equity | 125 | -260 | -77 | -212 |
| Effect on net asset value | -923 | 1 586 | -486 | 177 |
| Net asset value by business area 3/31 2011 | ||||
| Carrying amount | 151 963 | 31 125 | 173 | 183 261 |
| Net debt | -13 698 | -13 698 | ||
| Total net asset value | 151 963 | 31 125 | -13 525 | 169 563 |
| Investor | ||||
|---|---|---|---|---|
| Core | Financial | group | ||
| Amounts in SEK m. | Investments | Investments1) | wide | Total |
| Investing Activities | ||||
| Dividends | 798 | 11 | 809 | |
| Other operating income2) | 147 | 105 | 252 | |
| Changes in value | 6 808 | 474 | 7 282 | |
| Cost of investing activities | -40 | -79 | -52 | -171 |
| Shares of results of associates | -144 | -119 | -263 | |
| Operating Activities | ||||
| Net sales | 72 | 1 | 73 | |
| Cost of goods and services sold | -78 | -6 | -84 | |
| Operating profit/loss | 7 563 | 387 | -52 | 7 898 |
| Net financial items | -7 | -320 | -327 | |
| Income tax | 14 | -110 | -96 | |
| Profit/loss for the period | 7 570 | 387 | -482 | 7 475 |
| Other effects on equity | 4 | -55 | 186 | 135 |
| Effect on net asset value | 7 574 | 332 | -296 | 7 610 |
| Net asset value by business area 03/31 2010 | ||||
| Carrying amount | 122 950 | 28 750 | -551 | 151 149 |
| Net debt | -1 353 | -1 353 | ||
| Total net asset value | 122 950 | 28 750 | -1 904 | 149 796 |
1) Turnover of the Active Portfolio M anagement amounts to SEK 6,414 m. (5,840).
2) Interest related to shareholder loans, etc.
| 2011 | 2010 | ||
|---|---|---|---|
| Amounts in SEK m. | 1/1-3/31 | 1/1-3/31 | |
| Dividends | 1 303 | 798 | |
| Changes in value | -2 100 | 6 884 | |
| Net sales | 2 | 3 | |
| Operating cost | -117 | -128 | |
| Impairment of associates | -88 | -132 | |
| Operating profit/loss | -1 000 | 7 425 | |
| Profit/loss from financial items | |||
| Result from participations in Group companies | 520 | 3 | |
| Other financial items | -94 | 308 | |
| Profit/loss before tax | -574 | 7 736 | |
| Income tax | - | - | |
| Profit/loss for the period | -574 | 7 736 |
| 2011 | 2010 | |
|---|---|---|
| Amounts in SEK m. | 1/1-3/31 | 1/1-3/31 |
| Profit/loss for the period | -574 | 7 736 |
| Other comprehensive income for the period, including tax | ||
| Change in fair value of cash flow hedges | -1 | -3 |
| Total other comprehensive income for the period | -1 | -3 |
| Total comprehensive income for the period | -575 | 7 733 |
| 2011 | 2010 | |
|---|---|---|
| Amounts in SEK m. | 3/31 | 12/31 |
| ASSETS | ||
| Intangible assets and Property, plant and equipment | 38 | 39 |
| Financial assets | 196 335 | 197 045 |
| Total non-current assets | 196 373 | 197 084 |
| Current receivables | 3 440 | 1 213 |
| Cash and cash equivalents | 0 | 0 |
| Total current assets | 3 440 | 1 213 |
| TOTAL ASSETS | 199 813 | 198 297 |
| EQUITY AND LIABILITIES | ||
| Equity | 162 597 | 163 164 |
| Provisions | 247 | 262 |
| Non-current liabilities | 19 284 | 26 354 |
| Total non-current liabilities | 19 531 | 26 616 |
| Total current liabilities | 17 685 | 8 517 |
| TOTAL EQUITY AND LIABILITIES | 199 813 | 198 297 |
| 2011 | 2010 | |
| ASSETS PLEDGED AND CONTINGENT LIABILITIES | 3/31 | 12/31 |
| Assets pledged | 856 | 931 |
| Contingent liabilities | 10 261 | 10 236 |
| Amounts in SEK m. | 2011 1/1-3/31 |
2010 1/1-12/31 |
2010 1/1-3/31 |
|---|---|---|---|
| Profit/loss for the period | -574 | 34 194 | 7 736 |
| Other comprehensive income for the period | -1 | 5 | -3 |
| Total comprehensive income for the period | -575 | 34 199 | 7 733 |
| Dividends | - | -3 050 | - |
| Stock options exercised by employees | -2 | -30 | -7 |
| Equity-settled share-based payment transactions | 10 | 24 | 5 |
| Repurchases of ow n shares | - | -263 | - |
| Closing balance | 162 597 | 163 164 | 140 015 |
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