2021 Interogo Holding Annual Report Published
Today Interogo Holding AG presented its 2021 Annual Report. Despite continued uncertainty and disruptions brought on by the pandemic and emergence of new Covid-19 variants, Interogo Holding solidly rebounded its realized investment income, reaching EUR 667m, almost three times the level of 2020. Total net profit reached EUR 1,469m (EUR 714m in 2020). Capital deployment pace picked up after a slower 2020 to reach EUR 2bn of gross investments.
While economies and social life significantly recovered in the summer of 2021, positive effects from global roll-out of vaccines was halted with the emergence of the Omicron variant late in the year. Hopes grew, that the high transmissibility paired with the relative lower severity of Omicron, and the continued contribution of vaccines, would clear way for a more normal 2022. These renewed hopes were again diminished as Russia invaded Ukraine, causing tremendous humanitarian suffering for the people of Ukraine and unrest for the world. (About Interogo Holding’s donations to the Red Cross and UNHCR).
“Throughout the year, despite continuous severe disruptions and a high level of uncertainty, our co-workers have continued to work hard, adapting to challenges arising along the way, and for this we heartily thank them. The Russian invasion of Ukraine has caused unfathomable suffering for the people of Ukraine and its neighbouring countries, and we hope that the conflict and violence will end as soon as possible”, says Henrik Jonsson, CEO of Interogo Holding AG.
In markets marked by soaring valuations and high competition, Interogo Holding remained prudent and diligent in its investment approach however increased capital deployment pace compared to a slower 2020. In total, Interogo Holding invested EUR 370m in tangible fixed assets and EUR 1,645m in financial assets in 2021, from EUR 435m and EUR 505m in 2020, respectively.
Interogo Holding’s long-term equity and infrastructure strategies, advised by IH Long-term Equity Advisors and IH Infrastructure Advisors, completed their first investments for a total of EUR 315m and EUR 345m respectively. Our private equity businesses were able to benefit from the regain in the M&A and fund-raising activities and pace up their capital deployment. Capital deployment in our global private equity portfolio, advised by IH International Advisors, increased by more than 70%, reaching EUR 680m. Nalka Invest completed two new platform investments and further add-ons in our direct private equity portfolio for EUR 305m (EUR 95m in 2020).
Interogo Holding’s real estate business Vastint navigated a challenging environment, characterised by increased pressure on construction prices and disruptions due to further lockdowns, resulting in a contraction of its investment volume by 15% in 2021, reaching EUR 370m. Leasing of commercial office space has not been spared by the pandemic, with businesses waiting for improved visibility before committing to new leases or long-term renewals. Letting of vacant office spaces proved an industry challenge, however Vastint still managed to secure a very high proportion of existing tenants, growing its rental income by 8% to EUR 103m.
Realized investment income solidly rebounded during 2021, reaching EUR 667m, almost three times the level of 2020. Strong equity markets and steep recovery in private equity transactions benefited both our private equity and long-term equity portfolios. Appetite from real estate investors was back to pre-pandemic levels, allowing Vastint to successfully complete both strategic and opportunistic sales of properties for a total realized gain of EUR 68m, up from EUR 10m in 2020.
Gross profit progressed by 39% to reach EUR 597m, driven by Nalka Invest’s two new platform investments, add-ons and growth of the existing portfolio companies.
Interogo Holding’s liquid asset strategy, managed by the investment team of IFM, grew its assets under management to EUR 11,520 in 2021, up from EUR 9 055m in 2020.*
Interogo Holding AG is also a co-shareholder, contributing capital and loan, in Inter IKEA Holding B.V., with right to potential dividends. Inter IKEA Holding B.V. navigated well through a challenging environment marked by economic recovery hampered by supply chain disruptions, soaring raw materials and transport costs and distributed a dividend of EUR 1bn (EUR 850m in 2020).
Interogo Holding AG’s net profit of the year reached EUR 1,469m, about twice the level of 2020 (EUR 714m).
While societies, economies and businesses were still facing the aftermath of the pandemic with crippling effects on supply-chain and inflationary pressures, Russia’s invasion of Ukraine and resulting sanctions against Russia put immediate further strains on them. Skyrocketing energy and commodity prices were an immediate reality while long term effects remain difficult to quantify.
“We are deeply hoping for a quick ending of the conflict but unfortunately the future has rarely been more uncertain than it is right now. We are privileged to enter these challenging times in a solid financial position and with the continuous support of our owner, allowing us to remain committed to support our businesses and fulfil our mission. Our core objective to create long-term value while maintaining financial stability remain unchanged and we stay faithful more than ever to our driving precepts: rigor, patience and diligence. Last but not least, we feel fortunate and grateful that Interogo Holding can count on the dedicated contribution and professionalism of its co-workers to face these testing times”, says Henrik Jonsson.
Key figures consolidated (under Swiss GAAP FER) 1 Jan. - 31 Dec.
|Numbers in brief, EUR million||2021||2020|
|Operating income||1 546||808|
|Operating result (EBIT)||553||-74|
|Net Profit (attributable to shareholder of Interogo Holding AG)||1 469||714|
|Total Assets||27 002||24 491|
|Shareholder’s equity (attributable to the shareholder of Interogo holding AG)||11 946||10 494|
AUM per investment strategy as of December 31*
|Numbers in EUR million||2021*||2020|
|Private Equity||5 070||4 100|
|Real Estate||5 000||4 520|
|Liquid Assets||11 520||9 055|
The full Interogo Holding AG Annual Report 2021 is available here.
*AUM values per investment strategy are estimated FMV (for information purposes and not audited). For liquid assets under management, our owner, Interogo Foundation, is the main investor in the fund (2021: EUR 8,925 m and 2020: EUR 7,050m)