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Year-End Report 2015CEO Johan Forssell
Summary 2015
> Execution of strategy– New structure – sharpened our role as an active owner
– Investments in ABB and BraunAbility, and commitment to EQT VII for a total SEK 12 bn.
> Development of our operating priorities– Net Asset Value, with dividend added back, up 7 percent
– Management costs below SEK 500 m. target level
– The Board proposes a dividend of SEK 10.00 per share (9.00), an 11 percent increase
> Total shareholder return 13 percent (SIXRX 10 percent)
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Summary 2015New structure established – increased focus on both listed and unlisted
Listed Core InvestmentsSEK 224.1 bn., 78 percent of total assets
Patricia IndustriesSEK 51.1 bn., 18 percent of total assetsSEK 13.0 bn., 5 percent of total assets
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MCP
EQT Equity
EQT Infrastructure
EQT Midmarket
EQT Credit
EQT Holdings AB
Listed Core Investments
> SEK 5.6 bn. investment in ABB, ownership reached 10 percent> SEK 0.2 bn. add-on investment in Wärtsilä
> Operational and strategic progress in our companies– Saab built a strong order book– Sobi had Elocta for hemophilia A treatment approved– AstraZeneca strengthened its pipeline– Atlas Copco continued to invest in the vacuum business– Ericsson entered strategic partnership with Cisco
> Focus on efficiency improvement– Wärtsilä in the marine business– Atlas Copco in the mining business– ABB major cost savings program
Summary 2015
We support our companies in sustaining and improvinglong-term competitiveness
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EQT
> SEK 4.5 bn. net cash flow to Investor
> Value change +32 percent in constant currency
> SEK 3.2 bn. commitment to EQT VII
Summary 2015
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-2 000
-1 000
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
2009 2010 2011 2012 2013 2014 2015
Net distr., SEK m.Val.chg.
(CCY)
Value chg. (CCY) Net distr. SEK m.,
Patricia Industries
> New structure established and up and running
> Mölnlycke Health Care 5 percent organic growth and stable profitability,EUR 440 m. distribution to Patricia Industries, investments in growth initiatives
> Good growth in Aleris, continued investments to build high-quality service provider
> Continued progress in Permobil, strong demand for new wheelchair series
> BraunAbility first U.S. subsidiary
> Continued focus on building the portfolio of unlisted companies anddriving profitable growth
Summary 2015
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Strong cash flow generation
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Listed Core Investments
EQTnet cash flow
Patricia Industries
0
5 000
10 000
15 000
20 000
25 000
SEK m.
Sources
Listed Core Investments
Patricia Industries
Dividend paid
0
5000
10000
15000
20000
25000
SEK m.
Use of proceeds
SEK 4.6 bn. inreduced net debt
Our operating priorities
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Grow Net Asset value Operate efficiently Pay a steadily rising
dividend
Generating an attractive total shareholder return
The business environment
Challenging macro environment
Increasing competition
Rapid technology shifts
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Tough times create opportunities
Strong financial position
Continue to invest in EQT funds
Strengthen our ownership in Listed Core Investments
Invest in existing wholly-owned subsidiaries and add new ones
Continue to invest in EQT funds
Pay a steadily rising dividend
Multiple sources of financing
Focus on value creation
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Financials January – December 2015
CFO Helena Saxon
Financial highlights
> Net Asset Value increased from SEK 261.0 bn. to SEK 271.8 bn. during 2015
> NAV grew 7% with dividend added back
> Total shareholder return (Investor B-share) 13% compared to SIXRX Index’s 10%
SEK bn.
271.8
0
50
100
150
200
250
300
95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15
January – December 2015
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Contribution to Net Asset ValueJanuary – December 2015
SEK m.
260 963
271 801
8 804
3 995
4 855 -6 816
250 000
255 000
260 000
265 000
270 000
275 000
280 000
NAV beginningof period
Listed CoreInvestments
EQT PatriciaIndustries
Groupwide inclDividend
NAV end ofperiod
7%
13
Contribution to Net Asset ValueQ4 2015
SEK m.
257 520
271 801
11 4341 208
1 444 195
250 000
255 000
260 000
265 000
270 000
275 000
NAV beginningof period
Listed CoreInvestments
EQT PatriciaIndustries
Groupwide NAV end ofperiod
6%
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Listed Core Investments
Contribution to NAV, SEK bn.
Total return,Investor (%)
Atlas Copco 0.6 1.4
SEB -2.4 -5.3
ABB -2.0 -6.1
AstraZeneca 2.8 9.9
Sobi 6.0 70.1
Ericsson -1.1 -7.1
Wärtsilä 1.5 12.7
Electrolux -0.8 -7.1
Nasdaq 2.3 31.6
Saab 2.1 31.2
Husqvarna 0 0
Total 8.8
January - December 2015
SEK 224 bn.78 percent of total assets
YTD 2015
Invested SEK bn. Redemption SEK bn.
ABB 5.6 Atlas Copco 1.2
Wärtsilä 0.2
Total 5.8 1.2
SEK 43.1 bn
SEK 40.8 bn
SEK 35.4 bn
SEK 29.9 bn
SEK 14.1 bn
SEK 13.1 bn
SEK 9.9 bn
SEK 14.5 bn
SEK 9.4 bn
SEK 8.5 bnSEK 5.4 bn
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-1 000
0
1 000
2 000
3 000
4 000
5 000
2010 2011 2012 2013 2014 2015
EQTJanuary – December 2015
A private equity group with portfolio companies in Europe, Asia and the U.S.
> EQT represents 5% of total assets> EQT contributed to NAV with
SEK 4 bn. of which SEK 1.2 bn. in Q4 > Investor received a net of SEK 0.8 bn. in
Q4 > 12% value increase in constant currency in
the quarter> Investor’s total outstanding commitment
SEK 8.5 bn.
Net cash flow to InvestorSEK m.
Patricia Industries
Contribution to NAV,SEK m.
Mölnlycke Health Care 1 188
Permobil 197
Aleris 102
BraunAbility -73
Vectura 115
Grand Group 17
3 Scandinavia 483
Financial Investments 3 078
Total 4 855
January – December 2015
YTD 2015
InvestedSEK m.
Divested/DistributionsSEK m.
Total 4 176 7 985
SEK 51 bn.18 percent of total assets
FinancialInvestments
SEK 20.0 bn.
SEK 3.9 bn.
SEK 4.0 bn.
SEK 0.2 bn.
SEK 1.8 bn.
SEK 5.6 bn.
SEK 12.8 bn.
SEK 2.8 bn.
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Mölnlycke Health CareQ4 2015
A world-leading manufacturer of single-use surgical and wound care products and servicesfor the professional health care sector
> Q4 sales growth 4 percent in constant currency
> EBITDA margin lower due to growth investments in sales force expansion and product innovation
> Good growth in Wound Care, driven by Advanced Wound Care
> Strong cash flow> EUR 500 m. bond with maturity 2024
issued and EUR 425 m. was distributed to Patricia Industries
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24
26
28
30
0200400600800
1 0001 2001 4001 600
2010 2011 2012 2013 2014 2015
%EUR m.
Sales EBITDA, % EBITA, %
PermobilQ4 2015
A provider of advanced mobility and seating rehab solutions
> Q4 organic growth 15 percent in constant currency driven by the new wheelchair series
> The EBITDA margin improved with increasing sales
> Strong cash flow0
5
10
15
20
25
0500
1 0001 5002 0002 5003 0003 500
2011 2012 2013 2014 2015
%SEK m.
Sales EBITDA, % EBITA, %
AlerisQ4 2015
A private provider of healthcare and care services in Scandinavia
> Q4 organic growth 10 percent in constant currency
> All divisions grew, Norway the main driver> Adjusted EBITDA margin fell, due to a
combination of factors including restructuring charges and mix
> Acquisition of Teres closed0
2
4
6
8
10
01 0002 0003 0004 0005 0006 0007 0008 0009 000
2010 2011 2012 2013 2014 2015
%SEK m.
Sales EBITDA, % EBITA, %
BraunAbility Q4 2015
A world-leading manufacturer of wheelchair accessible vehicles and wheelchair lifts
> Q4 sales growth 2 percent in constant currency
> Reported EBITDA margin of 2 percent was affected by transaction related one offs. The underlying EBITDA margin was 7 percent
> SUV platform launched> Focus on investments in dealer channel,
production and R&D
0
2
4
6
8
10
200
250
300
350
400
2013 2014 2015
%USD m.
Sales EBITDA, % EBITA, %
Vectura and Grand HôtelQ4 2015
Vectura, develops and manages real estate, including Grand Hôtel and Aleris-related propertiesGrand Hôtel, Scandinavia’s leading five-star hotel, and Lydmar Hotel, offering both lodging and food & beverage
Vectura> Q4 sales growth 26 percent> Ongoing construction of Aleris facilities
according to plan> Refinancing enables future growth
initiatives and increased financial flexibility
Grand Hôtel> Q4 sales growth 3 percent> EBITDA declined due to weaker
performance in Food & Beverage
-30-20-10010203040506070
020406080
100120140160180
2013 2014 2015
%SEK m.
Sales EBITDA, % EBITA, %
-8-6-4-202468
0100200300400500600700
2013 2014 2015
%SEK m.
Sales EBITDA, % EBITA, %
3 ScandinaviaQ4 2015
3 Scandinavia, a provider of mobile voice and broadband services in Sweden and Denmark
> Q4 service revenue growth 6 percent> 51,000 new subscribers (36,000 in
Sweden), subscriber base reaching 2 million in Sweden
> Strong operating cash flow> SEK 176 m. capital distribution to Patricia
Industries 202122232425262728
0
2 000
4 000
6 000
8 000
10 000
12 000
2012 2013 2014 2015
%SEK m.
Sales EBITDA, %
Financial InvestmentsQ4 2015
Financial Investments consists of all former Investor Growth Capital (IGC) investments and other holdings
> Investments activities continued with focus on divestments
> NAV contribution SEK 1.2 bn. mainly related to the increase in value of NS Focus
Company Region Reported valueSEK m.
NS Focus Asia 4 263
Tobii Europe 968
Madrague Europe 731
Mindjet U.S. 719
Newron Europe 381
Total 7 062
2015 reported management costs vs run rate
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> Reported management costs in 2015, was SEK 483 m.
> Underlying cost level of SEK 495 m. in line with the communicated target
> Our cost discipline remains firm as well as our previous management cost guidance
2015 SEK m.
Reported management costs 483
Extraordinary items, net 12
Underlying cost level 495
Leverage development
Current ratingStandard & Poor’s AA-
Moody’s Aa3
> Leverage fell to 5.5% as of December 31, 2015
> Reported net debt decreased to SEK 15.9 bn.> Cash and readily available placements
amounted to SEK 19.1 bn.> Average maturity of the debt portfolio 10.3
years> During the quarter Moody’s upgraded
Investor AB’s credit rating from A1 to Aa3
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-15-10-505
1015202530% Leverage development
Leverage target range Leverage Maximum leverage
Financial calendar & Contact details
Event Date
Interim Management Statement, January – March 2016 April 21, 2016
Annual General Meeting 2016 May 10, 2016
Interim Report, January – June 2016 July 19, 2016
Contact details
Stefan Stern +46 70 636 7417
Head of Corporate Relations, Sustainability and Communications [email protected]
Magnus Dalhammar +46 735 24 2130
Head of Investor Relations [email protected]
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