Okay. Warmly welcome everybody to this presentation of our Q3 results. I will start. And after that, I will, as always, hand over to Helena Saxon. If we start on Page number 2, the current state.
I think we all know that we have seen a gradual improvement in many industries during the last 6 months. We had a very sharp downturn in April. And then starting mid May or so, we have seen a gradual improvement. However, we also know that there is a big difference between different sectors. I mean, there are areas like aerospace and oil and gas and hotels that are extremely weak.
On the other hand, we have seen segments like cars and trucks and elective surgeries that have been improving. And then we have seen other areas like in certain parts of health care, telecom, etcetera, that have been solid through the crisis. But overall, we have seen an improvement during the last 6 months. But we should, of course, know that the pandemic is still out there, and it's accelerating in a couple of regions. For example, now we see it in France, U.
K, Spain, Germany, and there are new restrictions being put in place. The restrictions so far though are much milder than we saw in April. In April, we basically saw big shutdowns. Now it's more that you can't walk out on the streets in Paris between 9 p. M.
And 6 a. M. You need to wear more masks in certain areas. So milder restrictions. But let's see how this will play out.
This is for sure, an uncertainty. We also have geopolitical risks, not the least between China and the U. S. And short term, we also have the U. S.
Presidential election that can add further uncertainty. So I think we have seen during the year big turbulence markets going down sharply and then going up sharply. We have seen tough demands on many companies related to the real economy in the beginning of the pandemic, and then we have seen a gradual improvement. I think we should be prepared for continued volatility, and that we are. And I must say that the management teams in our companies, I think, have done an excellent job in handling these turbulent times, not only because of the sharp and rapid adjustments, but also the fact that I know that the companies are, at the same time, continuing to invest in important areas for the future.
As always, it is equally important to decide what costs not to cut as the ones that you need to cut in a tough time. Moving down to the highlights of the quarter on Slide number 3. We had a total share return of 19% compared to the stock market, up 13%. Our net asset value grew by 9%. And in this quarter, Patricia Industries was the big driver with 18%, even though all three business areas were up.
Starting then with listed companies. A few highlights. Ericsson and Atlas Copco have announced strategic acquisition. Ericsson strengthens its enterprise segment through the acquisition of TraderPoint. And Atlas Copco, after previously doing the acquisition of Isravision, have now put a bid on Perceptron in the U.
S. To further develop the Smart Factory Automation business. I think both these are 2 exciting investments from Ericsson and Atlas Copco. On the Peoples side, Joakan Agneval has been appointed the new CEO of Envergel and will start at the latest in April 2021. He has a strong background from ABD.
He has also worked in Bombardier. But since 2013, he has been heading the Volvo buses. And of course, in that role, he has been very close to the situation when it comes to moving from fossil fuel to electric and alternative fuels. And he has also done a good turnaround in that business. So we are very glad and excited about Aker joining the company.
Moving then over to Patricia Industries, and I'm now on Slide number 7. You can see that the spread between the companies in terms of organic growth is still there. But you can see that the overall performance is really good with an organic growth of 5% for the subsidiaries and an adjusted profit growth of 7% compared to the Q3 last year. If we then move to the next page, I think it's the strong performance among the subsidiaries is one of the key highlight in this quarter. The other highlight is our announcement of the acquisition of Advanced Instruments, our new subsidiary.
This company is the clear leader in providing osmolality testing. And for you that have not looked into the detail, that basically measurement of the zone particles in a fluid. It could be, for example, to diagnose medical conditions or assess product quality in a variety of settings. They are the number 1 in this area, and the key customer groups are clinical bioprocessing and food and bear markets. They have a very strong track record with organic growth of more than 10% historically, and they have a high profitability, good cash flow and a significant part of the business is consumables.
So we think this is a company that really fits the criteria that we look for, and we look forward to develop this company in the future. And I should also mention that one thing that I like with this company is that this company has products that are really critical for the customers, but still the product cost for the customer is very small. And that's normally a good starting point if you want to create value. If you move to the next page, you can see that it's a sizable investment. The enterprise value is USD 780,000,000.
We will put in about USD 620,000,000 in equity, and the remaining part will be debt and also investments from the management team and the board. And the transaction is expected to close during the Q4. So let me then go over to Slide number 10, the companies that we have previously guided to be resilient. And I think we can say that the performance was really strong in Q3 for these companies. Starting at the bottom, 3 Scandinavia, organic sales was minus 1%, some margin expansion.
So the profit was up 1% compared to last year. Cerne Nova had a strong development, being up 5% and the margin expansion from 10% to 13%. And then finally, Melnik that, of course, is a highlight, growing 29% organically in the quarter and kept the margins at the previous year's level despite a negative mix with lower sales of Wound Care compared to Surgical. And I will come back and say a little bit more on these companies later on. Turning down to the companies where we did expect continued challenges in the 3rd quarter, Pia, Permobil, Aburi and Vulnerability.
And here you can say, yes, revenues were in fact down by double digits in the quarter. But I'm impressed by our management teams and how quickly they have adapted. Despite the significant revenue loss in Perma Beale and vulnerability, they actually were able to keep the margins compared to last year. And while being down year over year, the margins in Pia Belaburi stayed at healthy level. And in Laburi, we saw a significant margin expansion compared to the Q2 sequentially.
Moving then over to Nelvikia. Mernlikhke, as I mentioned, had a strong organic growth of 29%. If we exclude the PPE contracts within Surgical, the underlying growth organically for the whole group was 6% in the quarter, with Wound Care growing at 5%, and the underlying growth in Surgical was 8% organic growth. We believe that the TP contracts are expected to have significant sales also in the Q4 and into 2021, but to a lesser extent than we saw in the Q3. And as I mentioned before, I think the profitability was at a very good level considering the different mix in sales.
Moving then to Permobil. The organic growth was minus 13 percent in constant currency. COVID-nineteen restrictions continued to impact the company's ability to meet the customers, and that affected sales. U. S.
And Europe declined, but we continue to see good development in APAC, which is mainly driven by Australia. At the end of the quarter, we did see improved quotes. But of course, the uncertainty is high whether that will continue or not. But we did see some improvement when it comes to the quotes, which normally is a leading indicator for orders at the end of the quarter. As mentioned before, despite the significant sales drop, you can see that the EBIT the profit margin was very good and in line with last year.
And they have also made digital launches of new generation of M3 and M5 Corpus Powered Wheelchairs in the U. S. With that, moving over to La Bore. The organic growth was minus 13%, and that is due to significant decline in elective urology and gastro. We did see a gradual improvement, but it was still negative year over year in the latter part of the quarter.
As you know, in the beginning of the year, we acquired Clinical Innovation. So that part is not part of the organic growth, but that maternal and child head business grew somewhat in the quarter organically compared to the Q3 last year. The profit margin was down year over year, but we saw a significant sequential improvement, and that is for two reasons: 1st, good cost management in the company and secondly, a good performance of the maternal and child health business. And this company also has announced 1 add on acquisition and 1 corporation during the quarter. Moving then to Sarinova.
Strong development with organic growth of 5%. For this business, we saw a very strong development of the emergency preparedness business, while the acute part was negatively impacted by COVID-nineteen. And we saw a good margin expansion underlying, as you can see. Sanova has announced the acquisition of Digitech and the EMS business of R1. They will by doing combining this, this will create the leading provider of revenue cycle management for the emergency medical service professionals.
You can think about handling all the complicated invoicing, etcetera, for ambulances and so forth. And this is, of course, a very attractive opportunity because these are customers that Cernova knows from their normal business. So this is an extension in new adjacency with the customer overlap. And this company will have about US90 $1,000,000 and its profitability will be higher than Cenova's historical levels, and Cenovo will own more than 60% and consolidate the financial statements. Moving then over to PIAB.
Organic sales was down 10% during the quarter. Here, we saw that America and Europe was down, but we saw good growth in APAC, and that was driven by a very strong development in China. For Pia, we saw a strong book to bill in September. And also here, of course, I will not give any forecast to what extent it is sustainable, but I can just say that the order intake was strong in September. And the profitability was down year over year due to the organic sales drop but still stayed at healthy levels.
BraunAbility organic growth was down 22%. And in this quarter, the downturn was mainly driven by the Consumer segment, while Commercial and Leads were more stable. And the profit margin was actually in line with last year as the company has been very quick to adapt on the OpEx side. Moving then to 3. As I said, a very stable development with service revenue down 1% and profit up 1%.
But of course, behind this, there is a lot of great job in the company. With that, moving over to IKKT, that is about SEK 50,000,000,000 for us or close to 10%. It was a stable development in the quarter, up 3%. The IKTAB, the share price was up 4% in the quarter. And the value change of our EKT funds were up 3%.
But here, I once again would like to highlight that this value change is as of June 30. So we are doing this with a 1 quarter lag. And in this quarter, we had a cost of cash flow of about SEK 300,000,000. So going forward, we are I think we are really well positioned to capture opportunities in these turbulent times. This has really been a turbulent year with a sharp downturn, both from an economic point of view and, of course, the stock sharp recovery.
But it's also creating a lot of opportunities. First of all, we are seeing that digitalization, automation are really accelerating because we are learning how to work and we need to work in different ways. And as you know, we have many companies here that can benefit these trends like Son, PIA, Babybee, Roboptix and so forth. And I also believe that sustainability is a huge opportunity if you can outperform competition because all what it's all about. Productivity improvements, I talked about before.
Due to COVID-nineteen, we have learned to work in smarter ways. And it's not the fact that we will go back to how we did it before. Some parts might migrate back, but a lot of things we should, of course, learn, keep the productivity improvements also moving forward. And then finally, on the investment side, as I said, this year has been turbulent. We really went into this year with a strong balance sheet.
We had the leverage of 2.8% when we entered this year. And that we have been able to use, both by being active in the stock market, acquiring shares in EBITD, Ericsson and Electrolux Professionally in the beginning of the year and now lately with expansion, for example, with Advanced Instruments. Turbulence also going forward, and we are ready to act should opportunities arise. And then on 23, I am glad to show this picture. It shows that we have, irregardless of the period, actually met our return requirement of 8% to 9% and also deepened the stock market.
And we will for sure do whatever we can to continue to do that in the future. And with that, I hand over to Liana.
Thank you, Johan. And if we flip over to Page 25, we can see the 10 year development of our net asset value. And as you see on the right hand side of the graph that we landed the quarter at an adjusted net asset value of SEK 537,000,000,000 and the reported net asset value reached SEK 458,000,000,000 Looking at the slide, we can see the listed companies. And the total contribution to net asset value from this part of the portfolio was SEK 24,000,000,000 in the quarter. And the listed company TSR combined TSR in the quarter was 7% compared to SEK 6, 13%.
But looking at the year to date numbers, we can see the TSR was 10% compared to 6 Rx 8%. The portfolios amounted now to SEK 375,000,000,000 at the end of the quarter, and the performance in the portfolio was mixed even though it was positive from almost all of them. And the strongest performers in the quarter were Electrolux and Husqvarna, who also proposed reinstated dividends. Looking at the next page, Patricia Industries Development in the quarter, the total return was 18%. Excluding cash, it was 16% in the including cash, it was 16% in the quarter.
And this strong performance was driven by multiple expansion and earnings and cash flow, which also contributed or impacted positively. Looking at the sequential development on Page 28, we can see that Patricia Industries' net asset value, including the cash position, was
SEK 128,900,000,000
at the beginning of the quarter, but ended the quarter at SEK 149,300,000,000, a very strong performance. And here you can see the main contributors, of course, MELIK contributing strongly, but also Sarnova, Tia, Permobil and III and Vectura had positive impact in the quarter, while LOVRI and vulnerability had a tougher development. Looking the next page, Page 21, the major drivers in the quarter. First, Mannlicher's contribution of SEK 18,300,000,000 was driven by higher multiples, earnings and cash flow. So Nova's impact of SEK 1,800,000,000 in the quarter was driven by higher multiples.
Earnings and cash flow impacted positively, while currency impacted negatively. TIA contributed with SEK 1,000,000,000 in the quarter due to higher multiples, but lower earnings had a negative Permobil, SEK 0.7 billion in the quarter was driven by higher multiples and cash flow, while earnings impacted negatively. Braun, which had a tougher quarter, as I said, had the development of minus SEK 1,000,000,000 in the quarter, and this was due to lower earnings and multiple contractions. My last slide shows the financial position of Investor AB at the end of the quarter. Johan also mentioned that we have a strong balance sheet with a leverage of 4.7%.
Our net debt position was SEK 22,700,000,000, and we have gross cash of SEK 14,400,000,000. The average maturity of debt portfolio is still over 10 years, and our strong ratings with Standard and Poor's end of this remain the same. I think this was my last slide. I will hand over to Birkika, and we can start the Q and A session. Then I think we will we just have
you. Our first question comes from Joachim Gunalan from DNB Markets.
Thank you very much. Good morning, everybody. So with regards to the business momentum, your experience in the health care tilted holdings such as Menlik and Sernova, Could you elaborate a bit further just on the, let's say, longevity into 2021 from the new PPE contract in Menelik and if this negative mix could be further offset by cost reductions?
Okay. When it comes to Melendyke and Sonova, I can only say what I know, that is that the development is going well in both companies. And we expect these companies to continue to deliver good going forward. When it comes to the PPE contracts, we have, of course, some visibility when it comes to the Q4, and we also believe it we will have phase of this into 2021. To what extent and how long this will continue, there are a lot of uncertainties, not the least the pandemic, how that will be spreading and also how we will learn to live after the pandemic.
So I think it's far too early to give any comments on that. We try to give the guidance we can. We expect to have a significant impact in the Q4, but not as as in the Q3, and we expect to see some also in 2021. When it comes to the mix, I think that the companies are doing a very good job in adjusting the cost base. Then, of course, we all know that there are a number of costs that are lower now.
That goes for all companies around the world because you are traveling less and so forth. But that's what I tried to say in my comments earlier that it is highly important, of course, for the companies now to really try to keep as much productivity improvements as possible also after the pandemic. Business long term, bringing forward new products, doing acquisitions like Cernova. Mernlicht is working hard trying to expand in new geographical areas, which is developing well for especially Mernlikh right now, trying to capture all these opportunities while, of course, being close to the market. Should something happen, we'd normally talk about agility as if it goes down.
But I'm impressed in Nann Lika's case on the agility on the way up because agility goes both ways. So that's the best guidance I can give
you. No, thank you for that, Johan. And a follow-up on the same you alluded to, I mean, as an active owner, I guess, your portfolio holdings now have rethought their, say, just in time and optimization strategies owing to what we have seen now in the past months. So can you provide any color on your view on the trade off between the robustness and resilience across the portfolio?
Are you thinking about the supply chains? Yes. Yes. I think it's too early to see how this will play out, to be honest. All companies are, of course, watching it closely.
Some are taking some actions. But given the fact that we have 20 plus companies in different industries with different situations, it would be important to give a firm comment. But I can say that it's high on the agenda for all companies. But it's also early to say because changing supply chains is not something that you do very quickly. It's a long process to make sure you have the right suppliers, for example.
So it's too early to tell how this will play out.
All right. And then just a final one for me. So as there are some speculations about potential consolidation in the Swedish telecom services market that, that could become a 3 player market, Can you just say what your views are of the, say, rationality of a consolidation in Sweden and Denmark? And I think, I mean, 3 will have to or 3 Scandinavia will have to invest quite heavily to keep up on 5 gs coverage? Or is it possible for Street to actually have a partnership on the network side instead of, say, pursuing consolidation?
Thank you. As you know, we will never comment on speculation. Having said that, we have said before since quite a number of years back that, of course, if you can find the right consolidation in this industry, there is potential for real synergies. The challenges historically has been that it takes 2 to tango. And secondly, the competition authorities.
That has been the case. But I will not speculate more than that.
All right. Thank you very much.
Thank you very much.
Thank
you. Our next question comes from Erik Le Leiboutier from ABG.
Provided by PPE sales. Which products are this specifically? Is it a broad range? And where are you selling this? And sort of what markets are these new contracts relating to?
Thank you.
Okay. Thank you. I mean, the PP contracts, what kind of products are we talking about? We are talking about masks, protection clothes and headwares basically. That's what we're talking about.
And they are so to sort of all key regions basically.
Okay, okay. And then just a hypothetical question here on the dividend. I mean, if you were to decide on another dividend here before year end, would that dividend be for 2019 or for 2020, the way you see it?
We have said that we have given actually a dividend already, and we have said that we will based on the overall development and dividends in our companies and a number of factors come back if we deem that we should have an extra EDM. And we have no more information than the previous communication in that matter.
Okay. That's fair. Thank you very much.
Thank you.
Thank you. There appears to be no further questions. So I'll hand back to the speakers for any of the remarks.
Okay. And we on behalf of investor, we thank you so much for this Q3 call. And I also would like to remind you that on November 13, we will host a Capital Markets Day in the afternoon. So welcome back then and thank you for today.