Good morning to our Q2 presentation. Investors' CEO, Johan Puschel and our CFO, Helena Saxon, will start up announcing the and go through the results. And then we will have a Q and A session. Welcome, everyone.
Okay. Johan here. Welcome, everybody, to this call, also from my side. If I then start on the first page or Page 2 in the deck. As we all know, COVID-nineteen has had a significant impact on people and society.
And government and companies have, in many ways, tried to handle the situation, and it has, for sure, been a balancing act. For governments, balancing the need to contain the virus with the need to keep the economy going, not to create social unrest as a consequence of lockdowns and, of course, the increase in unemployment. Companies has, on the other hand, had a top priority to safeguard our employees and also support the customers through these difficult times. The customers are, in fact, the ones that will be key for them after this crisis. But for many companies, there has also been a need to increase the focus on cost, cash flow and liquidity.
If we look on the more economic development, we have seen a rebound in leading indicators and economic activity. And June was for sure a stronger month than in the beginning of the quarter. Still difficult to read how much, of course, is catch up inventory corrections, etcetera, in some cases. And we should also see that the or we actually see that the COVID-nineteen development in the U. S.
Is developing in some states in the wrong direction, for example, in Florida, Texas and Arizona, but especially in California given the size of that state. In addition, we are also seeing the spread in big areas such as Brazil and India. So while we have seen an improvement gradually during the quarter, and hopefully, that could continue, There is still a big uncertainty when it comes to the sustainability and the strength of the overall recovery. In this environment, in this exceptional quarter with significant sales for many of our companies, I must say that I am impressed by our management team's decisiveness and speed in taking actions to adapt. So with that introduction, let's go over to Page number 3 and the performance, the figures.
The total shareholder return was up sorry, 9% in the quarter compared to the Swedish stock market, plus 17%. Our net asset value was up 14% in the quarter, and that was mainly driven by a strong value increase in the listed companies and in EKT. As you can see, the listed companies were up 19% in the quarter, and EKT was up 16% in the quarter. Patricia was down 2% in value in the quarter. Patricia was down 2% in value in the quarter.
If we adjust for currencies, it was plus 2%, but I will talk more about the operational development later on. Starting with the listed companies. A few highlights in the quarter. We invested SEK500,000,000 in ABD, taking our year to date investments to more than SEK 2,000,000,000. And as you know, right after the end of the quarter, ABD finalized the sale of Power Grids.
And this will, of course, lead to the fact that they now can focus on the core remaining businesses, and also it will lead to significant share buybacks. Atlas Copco closed the strategic important acquisition of Isravision, which is a SEK 10 plus 1,000,000,000 acquisition. And so we entered another licensing agreement relating to a novel treatment within gout. And this is a continuous work for the company, and they have been very successful, I think, in broadening its product portfolio. Moving then over to Patricia and Slide number 7.
As expected, following a strong Q1, COVID-nineteen had a more negative impact in the Q2 that was challenging for some of the companies. For these companies, in aggregate, as you can see, the organic sales declined by 19%, while operating profit fell by 25%. In total, if we also include our 40% ownership in 3 Scandinavia, EBITDA was down 18%. And as I said initially, I think this is an impressive performance with sales being down almost 20%, being able to preserve 75%, 80% of the profit is really a testimony of great resilience and agility. And especially, I think, considering that we for all these 9 companies, we don't report any EU costs at all.
So it's really all cost in, and that is not the case for all companies. Moving then to the next page, Page 8. This is how we presented it in connection with our 1st quarterly report. We said that we believe that 3 companies were more resilient looking forward than the other 4 companies. And now when we have the second quarter, I think we can say that this guidance was quite well calibrated.
If we start with the companies on Page 9, that we think would be more resilient in the Q2. You can see that the organic growth and the margins have been quite stable despite the very turbulent environment that we have had in the quarter. So the resilient performance we saw in the 2nd quarter with stable sales and margins. For all these 3 companies, the organic growth was positive in June, and we actually expect a good performance for these 3 companies in the Q3. When it comes to MELKERIKEN, we have highlighted that due to the customer agreements with Inparsnal Protective Equipment, we expect significant sales addition for the remaining part of the year.
And this means that for Mernlikh Group, we expect a strong sales growth in the 3rd quarter. It should be mentioned that the margins on the PPE is below the average of the group. As you know, Wound Care has higher margins than our legal business. So then moving to the next page and talking about Fiat, Karma Delivery and Vulnerability. For these companies, in line with our expectation, the Q2 was more challenging due to COVID-nineteen, and that led to a significant decrease in elective procedures, lockdowns and related reduced customer demand.
Despite the sharp revenue drops, margins held up due to successful work in adapting and taking out costs. For these companies, Joom was better than in the beginning of the quarter, but June was still negative in terms of organic growth compared to last year. And for these companies that represent about 30% of the total portfolio value, we expect continued challenges also in the Q3. Moving down to Melniker on Page 11. As mentioned, the organic sales growth was minus 7% in the quarter, and all regions were negative except emerging markets that was up single digit in the quarter, driven by strong development in the Middle East.
And as mentioned previously, the new customer agreements within PPE will add significant sales during the remainder of 2020, and that is one of the key reasons why we expect a strong sales growth for the Q3. Profit margin was almost in line with last year, and cash flow was strong. And finally, Slatko Ritter, currently CEO of Salavision, has been appointed the new CEO. Moving down to Pormotiv. The organic sales growth was minus 17%.
Social distancing measure has severely affected the ability to sell the products. All regions were down except APAC. That was up double digit in the quarter, and that was mainly driven by Australia. We did for PermaVie an increased market activity towards the end of the quarter. The profit margin declined compared to last year, but as you can see, cost reduction initiatives mitigated the margin drop, and the company has done a very good job in adjusting OpEx.
Moving to LABORRI. Here, we did see an organic sales growth that was minus 45%. And the reason is a significant decline in elective procedures within both urology and GI, and that is, of course, related to COVID-nineteen. We did, for Labore, see a sequential sales growth during the quarter, but June was still well below last year. Clinical Innovation, the new acquisitions that they did, which is the maternal and child health business, was less impacted, and the performance was actually close to last year as these procedures are not elective.
The margin, of course, was affected by the fact that top line almost was cut in half organically, but it was offset by good cost containment and also a good performance in the acquisition Clinical Innovation. Sarnova had an organic sales growth of minus 2%, but if we exclude the reduction in sales related to the Engelbrevant, organic growth was positive. And as you can see, the margin expanded despite continued investment in the business. Braunability. Here we did see a sales drop of 53%, and that was very much related to locked up tons in the U.
S, but also in Europe, of course. The EBITDA margin was negatively impacted, of course, by the fact that sales dropped as much as it did. But this company also was very successful in taking out OpEx in the quarter to mitigate the profit block. Moving to Tia. Here, we did see organic sales being down 16% in the quarter.
Most regions were down or all regions except APAC was down. APAC here was driven by a very strong development in China. Back in conveying grew, but the other divisions declined. And also here, we did see an increased customer demand towards the end of the quarter. I must say that I'm impressed by the profit margin performance given the 16% sales drop.
It shows that the company has been really good in handling it and showing good agility. Moving to 3. Stable performance. Subscription base was up 2,000 in the quarter. It was up 37 in Sweden, but the overall figure was negatively affected by the fact that 41,000 SIM cards were disconnected in Denmark, so the underlying performance was better.
Service revenue was up 4%, profit was up 3%, and the company distributed almost SEK 500,000,000 of which close to SEK 200,000,000 was to Patricia Industries. So then briefly on EPT on Page 19. As mentioned previously, the total investment in EQT was up 16% in the quarter. The stock market part or EQT AD that is listed, that's about SEK 30,000,000,000 for us. And the fund investment is about SEK 20,000,000,000.
So in total, we have about SEK 50,000,000,000 in EKK now. The EKK AB listed on the stock market was up strongly, plus 42% in the quarter. When it comes to our fund investments, as you know, after EKK being listed on the stock market, we report the value of the fund investments with 1 quarter lag. In other words, the valuation here is as of March 31. The cash flow was minus SEK 1,600,000,000, and that is due to drawdowns related to previous acquisitions and, of course, new exits in the current market environment.
Going forward on Page 21. So where are we? Well, if I should summarize this, signs of recovery, but uncertainty remains high. Investor has a strong financial position despite the fact that we have invested portfolio during the first half of the year. The leverage is only 5%, which is in the lower range lower end of our target range.
We have a strong and well positioned portfolio companies, and we will, of course, do all we can to continue the development of these companies as an engaged owner. Moving to Slide 22 then. What we have seen in this crisis, of course, is a very severe and unfortunately health crisis with a severe unfortunate effect on the social side of the world. But on the other hand, there are, of course, several lessons learned that can be used in business. First of all, we see acceleration of the long term trends within digitalization, automation and integration of sustainability into the business lines.
This is clearly accelerated as many companies now have learned much faster than without COVID-nineteen how to handle these areas. Except the trends, I would also say that many companies are now looking into how can we use the lessons learned to really improve the efficiency and new ways of working. Finally, I would also say that we have for sure, we want our companies to be cost efficient in the supply chains. But I think the COVID-nineteen crisis and also some geopolitical discussions also shows that there is always a balance between resilience and efficiency, and that is also a top priority for many companies. And finally, most importantly, in this crisis, many companies have actually been forced to sell in a little bit different ways.
And these are also important learnings how this can be done after the crisis in a more structural manner. We will support our companies in trying to catch all these opportunities Looking at the 10
year net asset value Looking at the 10 year net asset value development growth on Page 24, we see that in Q2, the value of our assets rebounded strongly, and adjusted net asset value ended the quarter at more than SEK 490,000,000,000. Listed companies on Page 25, the total contribution to net asset value was SEK 55,000,000,000 in the quarter, and the overall listed company's TSR was 19% compared to SEK 6 17. And on the graph on the right hand side, we can see that all listed companies rebounded, as you have seen, and the strongest performers were Hizqvarna, Sobe and Electrolux. Patricia Industries Development in the Q2 on Page 26 was slightly negative with a total return of minus 2%. Earnings and currency impacted valuations negatively, while multiples were up and had a positive impact on estimated market values.
On Page 27, looking at the sequential change in estimated market values, we see that Permobil, Victoria and Tiave all contributed positively in the quarter, while Nellike, Sanova, La Bouri and Braun were down in the quarter. Financial investments provided proceeds of more than SEK 700,000,000. And as Johan mentioned earlier, 3 Scandinavia distributed almost SEK 200,000,000 to Patricia Industries in the quarter. Looking at the major drivers of estimated market value of the company in the quarter on Page 28. We see that the estimated market value of Permobil increased by SEK 1,800,000,000 in the quarter due to higher multiples, cash flow, but impacted negatively by profit decline.
The U. S. Subsidiaries, Labarel and Vulnerability, were both down SEK 700,000,000 in the quarter due to lower profits and currency impacting negatively, while multiples had a positive impact in the quarter. Swiss Candelaria's estimated market value was down SEK 1,000,000,000 in the quarter due to lower multiples impacting negatively, while higher profits were actually working the other way, having a positive impact on the value. And also, there was the capital distribution that we talked about earlier.
The estimated market value of Manlykka was down SEK 1,400,000,000 in the quarter. This was due to currency and lower profits, while multiples and cash flow generation had a positive impact in the quarter. Our financial position remains strong. As you can see on Page 29, our leverage is at the bottom of the target range, as Johan mentioned, at 5.1%. Net debt is at SEK 23,000,000,000.
Our gross cash position is almost SEK 14,000,000,000 and the average maturity of the debt portfolio is more than 10 years. Our credit rating remains unchanged and is very strong. And finally, on our last slide, year to date performance is negative, but better than the fixed IRAs. But over longer term, which is more important, like 1 year, 5 year, 10 years, we see that we have outperformed both the stock market and our social return requirements. So with that summary on our performance, both in the short and the long term, I would like to hand over to Vivien for Q and A.
Thank you, Johan and Helia Ma. Now we will have time for Q and A, and we will have some instructions from our operator.
Thank you. We have our first question from Joakim Hukunal, BNP Markets. Please go ahead.
Thank you. Good morning. So we can start off with the distributions to Patricia Industries. I mean, they've been fairly stable for the past 4 years, around €5,000,000,000 to €6,000,000,000 So how do you think about the 2020 levels? I mean, should the year over year change?
Should it be fairly correlated to levels of the operating results for mainly the Permobilin 3? Or how do you think about that?
I think that from our side, we thank you for the question. We always want our companies to have the right balance sheet. So we will always have it. It's a continuous evaluation. If we believe that 1 of our companies or more than of our companies have excess cash, then it will be distributed.
If that is not the case, it will be kept in the company. So I cannot give you a guidance because it will depend on the development going forward, not only the operational performance, but also acquisition opportunities.
Clear, Johan. And perhaps on the acquisition topic, I mean, could you give a bit of a flavor on what new business opportunities you see, both bolt on and the new investment ideas? I mean, you probably won't commit to time frame on additions, but perhaps you can comment on where you believe you will deploy your strong cash flows and if perhaps the pipeline has narrowed down a bit.
Yes. We are always looking at opportunities, both on the private side and on the listed side. And as I mentioned before, year to date, during the 1st 6 months, we have invested a little bit more than SEK 4,000,000,000 on the unlisted side and with an add on acquisition from 1 of our subsidiaries. And then we have invested a little bit more than SEK 3,000,000,000 on the listed side in ABB, Ericsson and Electrolux Professional. So on the listed side, it's very clear that we will the stock market will go up and down.
And when we see that we see good value, we are ready to use our financial resources to jump in and buy in selected companies. On the unlisted side, we are continuously even if it's COVID-nineteen times, we are right now looking into opportunities for some of our subsidiaries to do add on acquisitions. And that is, as I mentioned before, a strategic priority for us because we have strong platform companies with strong market positions. And if they can continue to develop their businesses through add on acquisition, that is a high priority area for us. So we are looking into opportunities all the time.
Understood. And finally, a question for perhaps for Helena. So on the back of the strong financial position, and we've touched upon the topic before, but regarding the postponed EPS decision on the 2nd installment here, can you talk a bit just about the moving parts and what scenarios we could see? I mean, I assume it's pretty tied to a potential dividend from SEB.
As you have seen, our Board has decided to pay the SEB 9 per share, as you've all seen already. And there has been no change in the communication regarding coming back during the autumn. I think we will have to evaluate everything that's happening around us, not the least what's happening with the pandemic and its impact on economy. And ultimately, it's the decision for the Board to recommend to then an extra general meeting potentially in the autumn. We have no more communication on that.
All right then. Thank you. That's all for me, and have a great
summer. Thank
you. Thank you. Our next question comes from Garik Ladovakia, LPG. Please go ahead. Yes.
Hello and thank you. I am looking at Patricia Industries and excuse me if you've answered this already, but which of your companies within Patricia have received government aid and subsidies? Is there something you could quantify, please?
I think that the government subsidies is have been given around the world in many areas. And of course, the companies are continuously have been evaluating whether there are opportunities to use that. So I cannot comment on the specific companies because those are more operational questions. My view is that overall, it is not a significant impact in the total portfolio given that we have some companies that are quite resilient.
All right. And with regards to Annaluke here, just to make sure I got the drivers this year right. Clearly, Q1 growth was pretty strong as some of the elective care procedures were still ongoing as you simultaneously got this boost from selling protective equipment, whereas now in Q2, there are very few elective procedures. And then with regarding to your forward statement here on Q3 and the rest of the year, is it true that you are both expecting a boost from these new contracts plus also elective procedures starting to gradually come back? Thank you.
Thank you for the question. It's a good but very difficult question to answer because if you take, for example, Wound Care, you see some areas that are related to elective surgeries, which have had a tougher time, but you also have some chronic parts that have been more stable. If you look on the surgical part, you see that, for example, if we exclude this, you can see that we have certain parts of the business relating to clothes, for example, that is strong. While if you look on procedure trays and also drapes, it is weaker, and that is very much related to elective surgery. So there are pros and cons in the business.
To what extent the different parts will move in the Q3 will, of course, depend on the development of the pandemic. And if we take the base business, what we see right now, both on the wound care and on the surgical side and then also consider the new contracts that I talked about, our best judgment today is that we will see a strong growth for the Malmika Group in the 3rd quarter.
Okay. That's very clear. And then finally, just on a general note here, looking back at the first half of the year, what's been sort of the focus of the investment organization during the first half year compared to normal? And also looking back, how would you sort of grade yourself regarding how everything was handled from the Investor AB side, your investment activity that you carried out, etcetera?
Thank you. I think that you should grade us, and we should not grade ourselves. So I leave that to you. But I must say that if I look on the subsidiaries, we have done 2 significant add on acquisitions. 1, Targi in Tia, and that company has developed well since we bought it.
And I see good prospects for that business, not the least because we see significant synergies with the existing business within Tiapp in that area. So I'm very pleased with that acquisition. And then the Clinical Innovation acquisition from Double Re has also developed very good since we bought it. And of course, here we can say that we were a little bit lucky because since their product is related to complicated childbirth, That is very difficult to postpone. So we bought a business that we really, really like.
It's a good profitable business with good growth prospects, but it's also, of course, very resilient in this kind of pandemic that we have. So I must say that these two companies have really identified attractive acquisitions that I'm very pleased with. And as I mentioned before, we are continuously in the investment organization supporting, of course, through our Board's work here, continue to find add on acquisitions. And you never know in business because it takes 2 to 10 years. But my hope and ambition is that we also, this year, will close out on acquisitions in our subsidiaries, and we are evaluating a number of opportunities.
When it comes to the listed part of the portfolio, we are more opportunistic, as you have seen. We have a capital company that we truly believe in, and we have used the swings in the stock markets to invest in this. And during the first half of the year, if we look on the investments within professional Electrolux Professional, Ericsson and ABB, we are pleased with those investments. But you should catch us.
We have no further questions. Dear speakers, back to you for the conclusion.
Then we would like to thank you for joining us today, and we wish you all a sunny and healthy summer. And thank you, Johan and Sienna. Thank you all. Thank you. Thank you.