Interim Report January-June 2019

“Our total shareholder return was 9 percent during the second quarter. All business areas reported good value growth. The combined operating profit in the subsidiaries grew at a healthy pace. After the end of the quarter, significant divestments were made within Patricia Industries.”
Johan Forssell, CEO of Investor

Highlights during the second quarter

• Adjusted net asset value (NAV) amounted to SEK 421,603m (SEK 551 per share) on June 30, 2019, an increase of SEK 24,658m, or 6 percent during the quarter. Total shareholder return amounted to 9 percent during the quarter, compared to 7 percent for the SIXRX return index.
• Listed Companies generated a total return of 6 percent. Shares in ABB were purchased for a total of SEK 2bn.
• Based on estimated market values, the value of Patricia Industries, excluding cash, increased by 6 percent.
• Pro forma sales growth for the major subsidiaries amounted to 10 percent, of which 2 percent organic in constant currency. EBITA grew by 16 percent. Mölnlycke’s organic sales growth amounted to 5 percent in constant currency.
• In total, Mölnlycke, Permobil and Three Scandinavia distributed SEK 2.1bn to Patricia Industries.
• Within Patricia Industries’ Financial Investments, the holding in NS Focus was fully exited. As of June 30, 2019, proceeds were yet to be received and hence not included in Investor’s cash position. In total, expected proceeds from recently made divestments of financial investments, still to be included in Investor’s cash position, exceed SEK 2bn.
• The value of Investor’s investments in EQT increased by 8 percent in constant currency. Net cash flow to Investor amounted to SEK -615m. The negative cash flow to Investor is entirely explained by transactions related to the simplification of EQT AB’s ownership structure.
• Leverage (net debt/reported total assets) was 5.5 percent as of June 30, 2019 (6.1 as of December 31, 2018).

Events after the end of the quarter

• As announced on July 12, 2019, Patricia Industries has entered into an agreement to divest Aleris to Triton for an enterprise value of SEK 2.8bn.