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Edited Transcript of INVE B.ST earnings conference call or presentation 19-Jul-17 8:00am GMT

Thomson Reuters StreetEvents

Q2 2017 Investor AB Earnings Call

Stockholm Jul 27, 2017 (Thomson StreetEvents) -- Edited Transcript of Investor AB earnings conference call or presentation Wednesday, July 19, 2017 at 8:00:00am GMT

TEXT version of Transcript

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Corporate Participants

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* Helena Saxon

Investor AB - CFO and Member of Management Group

* Johan Forssell

Investor AB - CEO, President, Member of the Management Group and Director

* Magnus Dalhammar

Investor AB - Head of IR

* Stefan Stern

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Conference Call Participants

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* Elias Porse

Nordea Markets, Research Division - Senior Director & Sector Coordinator

* Magnus Råman

Handelsbanken Capital Markets AB, Research Division - Research Analyst

* Mikael Löfdahl

Carnegie Investment Bank AB, Research Division - Research Analyst

* Oskar Lindstrom

Danske Bank Markets Equity Research - Research Analyst

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Presentation

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Stefan Stern, [1]

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Welcome everyone to this press conference and webcast teleconference. My name is Stefan Stern, I'm Head of Corporate Relations and Communications at Investor. This call is about presenting our Q2 report. The presentation is available afterwards on our website, but can also be viewed now in real time online. We will hear presentations by CEO Johan Forssell, and CFO, Helena Saxon. And we also have our Head of Investor Relations Magnus Dalhammar here with us.

After the 2 introductions presentations, we're going to take Q&As. Once again, very welcome and with that I'm leaving over to Mr. Forssell.

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Johan Forssell, Investor AB - CEO, President, Member of the Management Group and Director [2]

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Thank you, Mr. Stern. And hello and welcome everybody to this conference call. Given that it's summer and reporting season, we would try to make this brief. But of course, we will leave time for questions after the presentations.

If I start on Slide #2 on the overview, we had an adjusted net asset value growth based on the estimated market values for our subsidiaries in 3 Scandinavia. That was up 3% in the quarter. Our total shareholder return was up 11%, while the Swedish stock market gained 4%. The listed portfolio generated a return of 3% with slightly even contribution between the companies. 10 out of 11 holdings generated positive growth. One aspect's contribution was slightly down in Swedish krona, but actually up slightly in U.S. dollar.

Within Patricia Industries, the performance of the companies was mixed and I would get back to that within short. And it continue to have the very strong quarter with a value change on our investments of 6% in constant currency, and the net cash flow in the quarter to investor amounted to SEK 0.7 billion.

So let me now turn over to the listed core investments. As I mentioned, the return was up 3%. We made no investments during the quarter, but the activity in the companies remained high. Importantly, Saab passed the milestones through a successful first flight of the next generation smart fighter Gripen E. In Sobi, Guido Oelkers was appointed a new CEO. He has a very strong track record and solid background in the healthcare industry. Most recently, he was the CEO of BSN medical. But some of you may also remember that he used to be the CEO of Gambro when we divested it to Baxter a few years ago.

Wartsila acquired the U.S. company Greensmith Energy System. It's a leader within energy storage. So this acquisition will strengthen the company's position when it comes to global leading energy system integration. In Ericsson, the Nomination Committee have started the important search for a new chairperson, as Leif Johansson has announced that he will not be available for reelection at the AGM in 2018. And finally, in Atlas Copco, Ronnie Leten has been appointed Chairperson of Epiroc, the part of the company that is focusing on mining and civil engineering. And yesterday, Per Lindberg, currently President and CEO of BillerudKorsnas was appointed CEO of Epiroc. And I can also say that the preparations for the proposed split continues in a good way.

Moving then over to Patricia Industries, the adjusted market value excluding the cash amounted to SEK 98 billion. The total return was plus 2.5%. When it comes to the operations, we have the mixed performance in the quarter. And I think the best way to describe it is that we have the capital companies with good organic growth and improved profitability such as Laborie, 3 Scandinavia and Vectura. Then we have the capital companies Permobil and BraunAbility that are in the midst of important product launches. That affects the financials in the quarter but also of course give good prospects for the future.

In Aleris, we have a number of challenges and the team is working hard to improve and fix that. And I would come back to that. And finally in the quarter, we saw lower growth in Molnlycke and performance in the quarter is below our ambitions, but I would come back to that later on.

So let me then start with Molnlycke on the following slide. Molnlycke, as I said, reported a sales growth of only 1% in constant currency in the quarter. There are a few reasons for the lower growth. Number one, we have the chart comparison. The second quarter last year was a very strong quarter. And also there are also fewer days in the second quarter this year compared to last year. Combined this most likely had an impact on the growth in the quarter. Secondly, within surgical, gloves did not grow as fast as during the past few quarters as the positive effects from the ban on certain gloves that has benefited Molnlycke has tapered off.

And thirdly, the reimbursement cut in France which we have talked about before of course continue to affect the growth negatively. Over time, the impact on growth will of course go away although the absolute levels remain the same. Geographically, growth in the U.S. was lower than during the past 4 quarters but we saw growth. Europe declined slightly, mainly due to this reimbursement cut. The growth in emerging market was strong and we actually have a capital of individual regions and countries generating very high growth. So even though the market are quite small, if you measure it in terms of growth to the company, it's starting to become meaningful.

The profit margin was down year-on-year, mainly due to the reimbursement cut in France. But also we saw increased raw material prices and that is related to gloves and some currency effects. Regarding gloves, the raw material prices has flattened out compared to Q1. But if we compare with Q2 last year, they still affected negatively. The performance in the quarter, as I said, does not reflect our ambition but our view will then make us attractive, long-term potential remains intact. The company has strong market positions and the number of new products are being launched. And there are good prospects when it comes to emerging markets that I just mentioned. And the company is focusing on realizing this opportunities, while of course, ensuring cost competitiveness in the business.

Moving then over to Aleris. Aleris reported an organic sales decline of 2% during the quarter, mainly due to Healthcare Sweden and also lower utilization within certain parts of Care Norway. The profit margin was also lower as the addition of Curato could not fully compensate the negative impact from Care Norway. And that's the utilization question. In the radiology where Aleris has a very strong position, there is an ongoing tender process in Stockholm. The outcome of this initial tender has been appealed. And as this could be a long process, it is far too early to specify the impact. However, it is reasonable to assume that Aleris will get the substantial part of the tender, but somewhat less than today and at lower prices.

Given this, it is likely that this will result in lower volumes and also prices for Aleris. However, Aleris will need to work to compensate for this as much as possible. For example, by attracting other volumes such as insurance and of course, by adapting cost. But again, it's far too early to specify the impact of this project and also the outcome. And this will for sure not affect this year, and how long the process will take and the outcome, we will have to see later.

There are several initiatives going on to improve the efficiency in the company. Management needs to fix Healthcare Sweden, improve utilization, as I mentioned, in Care Norway. And importantly, decentralize decision-making closer to the customer. We fully support the board and management in these initiatives.

Moving then over to Permobil. Permobil reported organic sales growth of 1% in constant currency, mainly driven by North America. Underlying profitability was slightly higher, adjusted for some settlement costs related to a legacy product. The new products have been positive received by the customers, and I'm mainly talking about the M3. And the organic order intake was higher than the organic sales growth in the quarter.

Moving to BraunAbility. And the organic sales growth in constant currency was down 4% and the profit margin was lower than last year. This company is in the midst of a very large product launch. Importantly, the new products being launched have been well received and the order backlog was strong at the end of the second quarter.

Laborie reported 5% organic sales growth in constant currency with improved profitability. Significant investments are being made to develop the company to reach the long-term potential. This company developed very well in the quarter.

Also 3 Scandinavia developed well in the quarter with a reported growth of 5% when we talk about the service revenue and the EBITDA margin moved to 30%. The company was able to raise new bank loan and SEK 1.7 billion was distributed to Patricia and importantly on this new bank loan, Investor does not need to guarantee this loan which also is very important.

Moving down over to EQT. EQT had a strong quarter with a value increase of 6% and the net cash flow SEK 0.7 billion. So far this year, the net cash flow to Investor has amounted to SEK 1.4 billion. On average, the annual net cash with Investor has amounted to about SEK 1.5 billion per year historically. Given the high investment activity that you have seen and the new funds that have been launched, we would expect additional drawdowns during the remainder of the year. Overall, the performance in EQT is strong.

Finally, please may we reiterate our strategic priorities going forward. For Listed Core Investments, more companies to become best in class and gradually strengthening selected holdings when we deem it attractive from a financial point of view. Patricia Industries, we talked about it on this call, strong focus on achieving profitable growth in the existing companies. And also of course to look for attractive investment opportunities in the Nordic and North America.

EQT continue to invest in their funds and of course that we maintain high quality and cost efficiency. And if you look on the management cost, you will see that we are well on track on that. All this without the (inaudible) and the rate, the steadily rising dividend and of course a good return.

Thank you and now over to you, Helena.

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Helena Saxon, Investor AB - CFO and Member of Management Group [3]

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Thank you, Johan. Let me start with the financial highlights; this is Page 14. Reported net asset value amounted to SEK 331 billion, an increase of SEK 1 billion during the quarter. Adjusted for dividend paid, growth was 3% in the quarter. Based on estimated market values of Patricia Industries, adjusted net asset value amounted to SEK 377 billion. Total shareholder return was 11% compared to SIXRX Index 4%.

On the next page, we can see the contribution to reported net asset value and Listed Core Investment was the total investment that contributed the most, SEK 9.5 billion. EQT also added almost SEK 1 billion. And our dividend was paid in May.

Moving over to the Listed Core Investments. We see that all the companies in the portfolio contributed to performance, even Nasdaq was actually up in dollars.

Patricia Industries on the next page. Looking at Patricia Industries on the estimated market values, we can see that the market value of Patricia Industries amounted to SEK 98 billion, excluding cash at the end of the quarter versus SEK 97 billion at the end of Q1. And this compares to SEK 52 billion in reported value. The main deviations that you see between adjusted and reported values are from the Molnlycke where the difference is almost SEK 37 billion, Permobil SEK 4 billion and 3 Scandinavia SEK 3.5 billion. Regarding 3 Scandinavia, please remember that the distribution of SEK 1.7 billion has impacted both the estimated market value and the reported value.

On the next slide, we see major drivers of the estimated market value change in Q2. So looking at the drivers, it's the 4 companies listed here that made the biggest move in the quarter. Molnlycke's market value was up SEK 3 billion in the quarter, mainly driven by multiple expansion, some cash flow and currency effects, while the lower operating profit affected the estimated market value negatively.

For Permobil, we can see that the estimated market value was up SEK 0.8 billion in the quarter mainly driven by multiple expansion as well, while the operating performance was quite stable. For Aleris, the estimated market value was down SEK 700 million in the quarter. While the multiple was fairly stable, lower operating profit was the main explanation for the value decline. And again then for 3 Scandinavia, we can see that the estimated market value was down SEK 1.1 billion, but please take into account that SEK 1.7 billion was distributed and adjusted for this, the underlying value increase was approximately SEK 0.6 billion driven by a significant improvement in operating profit and cash flow. And maybe I should add also that BraunAbility, which was acquired in October 2015, was for the first time recorded an estimated market value which led to an increase of SEK 200 million.

Moving over to financial investments, which is a part of Patricia Industries. They reported a net divestment of SEK 400 million in line with its strategy. The value decrease that we see from SEK 9.2 billion to SEK 7.9 billion was mainly attributable to NS Focus, the Chinese IT security company that is listed in China.

And my last slide, we can look at leverage development. And looking at our balance sheet, we can see that leverage fell to 4.7% at the end of June here. Net debt amounted to SEK 16.2 billion. Cash and readily available placements amounted to SEK 14.7 billion. And in May, we proactively repurchased bonds for a total of SEK 1.4 billion and another SEK 1.5 billion matured in June. The average maturity of our debt portfolio is now 10.4 years.

And that is the end of my presentation.

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Johan Forssell, Investor AB - CEO, President, Member of the Management Group and Director [4]

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Thank you, Helena. And with that, I'm leaving over to any questions that might come from the audience. Let me start by telephone.

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Questions and Answers

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Operator [1]

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(Operator Instructions) Our first question comes from the line of Elias Porse from Nordea.

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Elias Porse, Nordea Markets, Research Division - Senior Director & Sector Coordinator [2]

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Elias Porse, Nordea here. First a question on your estimated market values versus the reported values. It's a quite big difference as you know, there are SEK 46 billion. Would it make sense for you in the future to abandon the reported values in favor of the more fair values, the estimated market values that you use since then?

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Helena Saxon, Investor AB - CFO and Member of Management Group [3]

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Thank you, Elias for that question. It's good that you bring it up, but the estimated market values are only supplementary information as you know. And we report according to IFRS, according to the acquisition and equity methods and we will stick with that. We think this is an interesting information that we know the markets has interesting, but we are not planning to change our IFRS reporting.

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Elias Porse, Nordea Markets, Research Division - Senior Director & Sector Coordinator [4]

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Well, IFRS also allows for fair values of course. But moving on, on the evaluation side, EQT, the management company in your NAV has reported that SEK 84 million. Do you think that this is a fair value or partly misleading value or would it make sense to also include this in the market value estimates?

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Johan Forssell, Investor AB - CEO, President, Member of the Management Group and Director [5]

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Thank you for that question. I think it's fair to say that the value, the fair value is higher than we have in the books. The reason why we do not put that at the quality and estimated market value is actually for competitive reason, considering EQT's position that they have, also competitors that do not want to go out with certain kind of information. We are not the sole owner here, we are a minority owner, so that's the reason compared to the subsidiaries where we are the major owner.

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Elias Porse, Nordea Markets, Research Division - Senior Director & Sector Coordinator [6]

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All right, fair enough. And on Molnlycke, the slower organic growth, previously the Molnlycke CEO has said that they have quite -- also on the Capital Markets Day, they have quite ambitious growth targets and of course if the organic growth is slow, maybe you are looking at acquisitions. In the quarter, you have increased the market based value of Molnlycke, partly driven by higher multiples. But you also mentioned the potential multiple contraction going forward in the CEO's statement and that's on a broader basis of course. But how do you view the acquisition prospects for Molnlycke currently? Do you believe valuations are to stretch now or are there no suitable targets?

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Johan Forssell, Investor AB - CEO, President, Member of the Management Group and Director [7]

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As always when you do acquisitions, whether it's Molnlycke or some of the other companies in our portfolio stack on the conductor, the key will always be to find companies that where you have 2 interesting parts or 2 important parts. Number one, the company that you acquire of course needed to be in a segment and an area where you have the prospects to make good money all the time. And secondly, if one of our companies buy it, you also need to add something as a buyer, you can call it synergies. That is how we look at it. The third part of course is that you need to pay a price while the value that you create through that position exceeds the price you pay. That's how we work. Is it easy to find a lot of our acquisition targets in this market? No, it's not. Do I believe we have prospects in Molnlycke and the other companies to find potential targets here going forward? Yes, I do. But the timing and the size of them is very difficult to predict. But in Molnlycke, as many of our other companies, of course are working through a pipeline of opportunities.

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Elias Porse, Nordea Markets, Research Division - Senior Director & Sector Coordinator [8]

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But has valuation been the main factor holding you back or are there other reasons?

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Johan Forssell, Investor AB - CEO, President, Member of the Management Group and Director [9]

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I would say when it comes to our companies looking for opportunities in Molnlycke, I would say valuation is not the key. But of course in some cases, you might end up in a situation where you have an opportunity but you just can't get the mathematics to work. But I will say the key is always to find the right company with the right fit with our company.

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Operator [10]

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(Operator Instructions) Our next question comes from line of Magnus Råman from SHB.

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Magnus Råman, Handelsbanken Capital Markets AB, Research Division - Research Analyst [11]

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Coming back to Molnlycke in terms of drivers behind the 3 percentage points margin setback in Q2, can you help us get a sense of the split between reimbursement cut in France and all the other explanatory factors?

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Johan Forssell, Investor AB - CEO, President, Member of the Management Group and Director [12]

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I would say that the biggest one is the reimbursement cut. The size of the raw material and the currency are smaller but they are roughly of equal size. And there are also some smaller other things of course that coming into it, but the biggest one is the reimbursement and the 2 others are shared #2 you can say.

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Magnus Råman, Handelsbanken Capital Markets AB, Research Division - Research Analyst [13]

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And is it fair to assume that the negative effect from reimbursement cut will be annualized, so to speak, in Q1 2018?

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Johan Forssell, Investor AB - CEO, President, Member of the Management Group and Director [14]

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It is. When you have this, of course you have. It is very difficult to answer because you have reimbursement cut, but the way it filter through into the business of course is a gradual process. So I cannot be specific on it, but of course, if you go a couple of quarters ahead gradually down it, the growth effect will start to taper off.

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Magnus Råman, Handelsbanken Capital Markets AB, Research Division - Research Analyst [15]

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So at least it's fair to expect certain drag on earnings growth for Molnlycke also in H2 2017 from this reimbursement cut?

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Johan Forssell, Investor AB - CEO, President, Member of the Management Group and Director [16]

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I mean the reimbursement cut of course is what it is. And in the next quarter, if you compare year-over-year, it will have a continued negative impact.

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Magnus Råman, Handelsbanken Capital Markets AB, Research Division - Research Analyst [17]

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Then just in terms of performance in Permobil and BraunAbility, you mentioned here that they've been affected by major product launches. And you also mentioned a positive build up on order books here already in Q2, but should we expect positive effects on growth and profitability already in the second half of 2017 from these product launches?

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Johan Forssell, Investor AB - CEO, President, Member of the Management Group and Director [18]

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It's a fair question. I don't want to give forecast and the reason for that is that there are always a number of things that you can't control and one is the market development. But what I can say is that if you look on Permobil a more de facto based, I can say that we reported an organic sales growth of 1%, but if we look on the organic order intake in the quarter, it was mid-single digit. And when it comes to BraunAbility, we have a strong backlog and hopefully of course, we would deliver part of that going forward. But I do not want to give a specific forecast.

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Magnus Råman, Handelsbanken Capital Markets AB, Research Division - Research Analyst [19]

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I have one final question on your financial divestments. You made a minor divestment in NS Focus in the quarter. Does this imply that this holding is no longer under lock up? And I mean, in total you made divestments of SEK 0.5 billion in the quarter, should we expect an increase in the pace of divestments from financial investments in coming quarters?

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Johan Forssell, Investor AB - CEO, President, Member of the Management Group and Director [20]

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Helena, what do you say on NS Focus?

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Helena Saxon, Investor AB - CFO and Member of Management Group [21]

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You are right that the lock up expired earlier this year and we are ready to sell half of our investments in NS Focus this year and the rest next year. How fast and that's not something we can comment on right now, but we have sold in the quarter for about USD 7 million.

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Operator [22]

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(Operator Instructions) Our next question comes from the line of Oskar Lindstrom from Danske Bank.

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Oskar Lindstrom, Danske Bank Markets Equity Research - Research Analyst [23]

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Some more questions on Molnlycke and the margin contraction there. I mean you mentioned a number of factors which should be temporary like the tough comparables and the fewer trading days. However, the reimbursement cut in France and the higher raw material prices, are those effects fully in or should that sort of -- should the headwind or the drag from those 2 factors increase further going forward in your view?

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Johan Forssell, Investor AB - CEO, President, Member of the Management Group and Director [24]

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When it comes to the raw material prices, I will not even try to give you a forecast of it. I can just say that the increase that we had seen has now plateaued, so we don't see an increase quarter-over-quarter. When it comes to the reimbursement cut, of course the cut is what it is. So if you compare it before the cut, of course it is now a lower price level. In the healthcare business, in general, this is something that happens from time to time that you get reimbursement cuts. And of course, the way you have to do it is to handle it and adjust for that. And the company of course, is working hard on not only growing in -- growing the business in emerging markets and new product launches et cetera, but also of course improving the efficiency to counteract these kind of activities. But the reimbursement cut is what it is and that we have to live with, but we need to adjust.

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Oskar Lindstrom, Danske Bank Markets Equity Research - Research Analyst [25]

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And has the reimbursement cut or any other factors for that matter generated increased competition in the market so that as the total market size shrank, have your competitors become more aggressive and therefore that you're also sort of there's price pressure?

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Johan Forssell, Investor AB - CEO, President, Member of the Management Group and Director [26]

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I would not say that the reimbursement cut has increased the competition. But of course, there is a tough competition in many markets just regarding this. But I would not say that the reimbursement cut per se has increased the competition.

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Operator [27]

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Our next question comes from the line of Mikael Löfdahl, sorry for the pronunciation, from Carnegie.

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Mikael Löfdahl, Carnegie Investment Bank AB, Research Division - Research Analyst [28]

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Excuse, my last name is not easy to pronounce in English, but nevertheless first question on Permobil. Could you specify the settlement costs? And I guess you're saying that the profitability would have been higher year-on-year in this quarter. And did you mean by that the EBITDA margin would have been higher than last year's margin?

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Johan Forssell, Investor AB - CEO, President, Member of the Management Group and Director [29]

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On the question, I think if I answer the last question, you will get a good feeling for the magnitude of it because you're absolutely right. If we would have not had this extra settlement costs, the profitability in the quarter would have been slightly higher compared to last year's quarter.

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Mikael Löfdahl, Carnegie Investment Bank AB, Research Division - Research Analyst [30]

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Could you say what that is, that settlement cost?

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Johan Forssell, Investor AB - CEO, President, Member of the Management Group and Director [31]

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Yes. If you look on the second quarter last year, we had a margin of -- if you take it on an EBITDA level, you had the margin of 20%. And this year --

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Mikael Löfdahl, Carnegie Investment Bank AB, Research Division - Research Analyst [32]

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I was meaning what it is? What it refers to, the settlement cost?

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Johan Forssell, Investor AB - CEO, President, Member of the Management Group and Director [33]

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Sorry. It is -- I don't want to do go into the details but it's a legacy product where there is a certain thing that we have needed to settle.

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Mikael Löfdahl, Carnegie Investment Bank AB, Research Division - Research Analyst [34]

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Second question. That is more I guess how you look at this market evaluation and what kind of multiples you use on earnings and so on? If you look at Molnlycke now for instance, you use the last 12 months EBITDA while you are then comparing a using a peer group, I guess, with also the last 12 months multiples. But in a situation where Molnlycke is either underperforming or just what you think and perhaps the market things or outperforming, doesn't that make the value always become a bit too high or too low by looking at last 12 months and also using it strictly to a peer group?

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Johan Forssell, Investor AB - CEO, President, Member of the Management Group and Director [35]

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I mean it can always be different things and how you do it, but we do not give forecast as you know for our companies. And if we wanted to be transparent to you, how we do it, we have said that this is the easiest and best way to do it. There might of course be different movements that you can have different views on. But we have a very broad peer group and also medical indexes. And what we can say is that right now, this is the multiple that is used in the market for similar companies and that is what we use. Then when it comes to the growth and so forth, of course, it can be first between quarters but we see this more as a long term and our long-term view of the company remains intact.

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Mikael Löfdahl, Carnegie Investment Bank AB, Research Division - Research Analyst [36]

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Yes. Sure. But you're still seeing Molnlycke right now underperforming but still you right see the multiple. I guess it could be up to you to not use a straight comparable multiple as the peer group to sort of adjust for a bit lower or weaker performance than in the past 4 quarters?

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Johan Forssell, Investor AB - CEO, President, Member of the Management Group and Director [37]

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The reason to be honest why we don't do it is like if you have a share that is traded on the stock market, you can always have different views on it. Is that I'm a firm believer in transparency and also in terms of focus, and the organization that is working with the development of these companies in the Patricia Organization including Molnlycke, they have 1 target and that's is to increase -- one key target I should say that is to increase the value of the Patricia Portfolio. If we would do a lot of subjective adjustments when their payment is tied to the performance, that would be a very cumbersome process that would add little value. So the ones that are working with it, they will have to live with small changes exactly like myself that have shares. That is of course affected by a lot of things out there. So that's the reason we want to have it simple, transparent and very clear.

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Mikael Löfdahl, Carnegie Investment Bank AB, Research Division - Research Analyst [38]

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Final question on Molnlycke, could you say something? I mean there are several moving parts here that affects both top line and margins, but could you say something about how you believe that Molnlycke is performing relative to the market and competitors in terms of growth top line?

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Johan Forssell, Investor AB - CEO, President, Member of the Management Group and Director [39]

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No, it's too early to say because we have seen too little of the competition yet. We can see how it develop in the different regions and there I mentioned that the U.S. was slightly up and while Europe was down a little bit mainly due to this reimbursement cut. I could perhaps add that the cut loads markets within the emerging market segments, we have the markets like China being up 30%, we have Middle East also being up 30%. So there are capital growth region still small but that really adds to the growth of the total if you look on the growth of the company.

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Operator [40]

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We appear to have no further question at this time. I hand the conference back to you, sir.

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Stefan Stern, [41]

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Okay. Thank you for that. Any questions on the web Mr. Dalhammar?

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Magnus Dalhammar, Investor AB - Head of IR [42]

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No.

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Stefan Stern, [43]

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Okay. No questions on the website. I'm leaving over for -- if there are any more questions by telephone, please tell now.

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Operator [44]

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(Operator Instructions) It looks like we've got no questions from the telephone participants.

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Stefan Stern, [45]

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Okay, thank you. And thank you for listening in and have a great summer. Thank you.

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Johan Forssell, Investor AB - CEO, President, Member of the Management Group and Director [46]

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Thank you.

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Helena Saxon, Investor AB - CFO and Member of Management Group [47]

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Thank you. Bye.

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Operator [48]

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This now concludes our conference call. Thank you for attending. You may now disconnect in your lines.