Long-term industrial developer of listed Nordic companies Full year 2012 Industrivärden, February 6, 2012

Transcription

1 Long-term industrial developer of listed Nordic companies Full year 212 Industrivärden, February 6, 212 KV412_eng Nr 1

2 Long-term industrial developer of listed Nordic companies Ericsson Volvo SSAB Sandvik Skanska SCA KV412_eng Nr 2

3 Strong base for value creation Our competitive advantages Our portfolio Blue-chip portfolio Leveraged influence Long-term active ownership Extensive structural capital Holding Market value, Portfolio Share of SEK bn share, % votes, % Handelsbanken Sandvik Volvo SCA Ericsson Skanska SSAB Indutrade Höganäs Portfolio companies Other.3 Equities portfolio As per December 31, 212 A strong, competitive long-term track record with limited risk KV412_eng Nr 3

4 Focused strategy Strong value potential and long-term perspective Portfolio Conditions Scope: Concentrated portfolio focus Sectors: Sector generalist Individual investments Business models: Geographically scalable Market value: Large and midcap companies Cash generation: Good ability Type: Listed stocks Ownership: Major owner with board representation Geography: Nordic companies Evaluation horizon: 5-8 years Business cycle: Expansion or management phase Requirements: Strong potential for value creation Exit: Appropriate exit once target value has been achieved KV412_eng Nr 4

5 Long-term value creation Development of net asset value 2 years SEK/share % annualy during the last 2 years period (incl. reinvested dividends) KV412_eng Nr 5

6 12M: 212 in brief Net asset value on December 31, 212, was SEK 129 per share, an increase of 29% for the year including reinvested dividends. Net asset value on February 4, 213, was SEK 138 per share, an increase of 7% since the start of the year. The value of the equities portfolio increased by 18% during the year, or SEK 1.1 billion, to SEK 68.1 billion. The Stockholm Stock Exchange rose 12%. On February 4, 213, the equities portfolio was worth SEK 71.6 billion, an increase of 5% since the start of the year. The total return for the year was 33% for the Class A shares and 37% for the Class C shares, compared with 16% for the return index. Income for the year, including unrealized changes in value, totaled SEK 11. billion (-15.6), corresponding to SEK 28.5 per share (-4.51). During the year, shares were purchased in the portfolio companies for SEK 3.3 billion and sold for SEK 2.1 billion. Industrivärden is the largest single shareholder of Volvo, with 18.7% of the votes, after additional purchases of 1 million Class A shares, and Volvos conversion of Class A to Class B shares requested by Renault. The Board of Directors proposes a dividend of SEK 5. per share (4.5). KV412_eng Nr 6

7 Net asset value Dec SEK billion Dec SEK per share Dec Dec Total portfolio companies Other Equities portfolio Net debt Convertible loan Net asset value Debt-equity ratio 27% 29% Net asset value after full conv Debt-equity ratio after full conv. 14% 14% KV412_eng Nr 7

8 Performance Competitive track-record for both short- and long-term periods year 5 years 45 1 years years Annual excess return Industrivärden C World +22 %-points +6%-points +6 %-points +5 %-points Europe +2 %-points +7 %-points +7 %-points +6 %-points Stockholm (SIXRX) +21 %-points +2 %-points +1 %-point +1 %-point As per December 31, 212 KV412_eng Nr 8

9 Active ownership in brief Focus on value enhancement drivers; strategy, development and positioning Nominating committee participation Board participation/ owner cooperation Boardpresentations In-depth analysis Company, competitors and industry Megatrends Company visits Value creation Fundamental analysis incl. action plan Databases AGM participation Direct dialog with company management KV412_eng Nr 9

10 Active ownership in practise Consistently applied business model. Favorable financial position and strengthened market position. Organic growth in priority markets in the Nordic countries and UK. Strong capitalization further strengthened and meets the new Basel III requirements. Stronger focus on highly profitable specialty products. Completion of strategic investment program to increase capacity in quenched steels. New finishing line in China put in operation. Efficiency improvement program in Europe is estimated to give annual savings of SEK.8 billion starting from 214. Market leader in telecom systems. North America s leading supplier of network systems, with major upgrading and development contracts. Acquisition of U.S. company Telcordia strengthens offering of support for telecom operators. Several significant operational and service agreements in key growth markets. Continued strong growth for services business. Interest in Sony Ericsson sold to Sony. New executive management, strategic focus and new organization. Strong market position for Mining in growth markets in Asia, Latin America and Australia, among others. Additional restructuring program is expected to reduce costs by SEK 1 billion by year-end 213. Acquisition of Seco Tools and sale of Medical Solutions. Efficient construction operations generate good cash flows. Successful model for value-creating project development. Sale of first commercial real estate development project in the U.S. New executive management, strategic focus and new organization. Strengthened positions in geographical growth regions. Sale of Volvo Aero. World s most modern heavy trucks through new FH series. World s largest heavy-duty truck manufacturer following strategic alliance with Chinese Dongfeng. Increased activity in emerging markets. High rate of investment in research and product development in collaboration with customers. Market launch of new electromagnetic applications. Divestment of packaging business to DS Smith. Acquisition of Georgia-Pacific s European tissue business. Several strategic acquisitions in hygiene segment in key geographic growth markets. Sale of shareholding in newsprint mill in Aylesford and publication paper mill in Laakirchen. Reorganization of hygiene operations, and efficiency improvement programs for reduced costs and higher productivity. Continued growth through acquisitions. Flexibility through decentralized business model. KV412_eng Nr 1

11 Industry-leading portfolio companies 67,8 Market value Billion Portfolio value: 67,8 Billion Portfolio share % 1% A well developed universal banking operation and decentralized branch network with local customer responsibility contribute to high customer satisfaction and good profitability. Through a niche focus and strong R&D profile, Sandvik has established a worldleading position in materials technology with products primarily for manufacturing, mining and construction industries. Through innovative, customer-adapted product development and high quality, Volvo has a world-leading position in commercial transport solutions. 14,9 22% 14,8 22% 11,8 17% Leading global hygiene products and paper company with a rapidly growing offering of personal care products. Europe s largest private forest owner. The market s largest and most profitable supplier of mobile telecom infrastructure, with a leading position in telecom development. Unique turnkey know-how in construction combined with a process focus has created a leading construction services company with world-class value-creating project development. 1, 15% 5,4 8% 3,7 5% World-leading niche position in high strength steel sheet creates solid foundation for growth and sustained high profitability. The combination of sales of high-tech industrial consumables, good organic growth and a highly refined model for acquisition-based growth has resulted in strong profitability growth. Market leader in growing niche of metal powders, used primarily for component manufacturing within the automotive industry. 3,2 5% 2,9 4% 1,1 2% (As per Dec. 31, 212) KV412_eng Nr 11

12 Debt provides financial leverage Net debt development 1 yrs Interest bearing net debt (SEK bn) Net debt-equity ratio 2, 18, 16, 14, 12, 1, 8, 6, 4, 2,, 35% 3% 25% 2% 15% 1% 5% % SEK 18,2 bn 27% SEK bn Dec Total portfolio companies Dec Other.3 Equities portfolio Net debt Net debt eq. ratio 27% 29% Net debt eq. ratio after full conv. S&P rating 14% 14% A-/stable/A 2 KV412_eng Nr 12

13 High dividend yield 6 1% 9% 5 8% 4 7% 6% Utdelning Dividend 3 2 4,5% 4,6% 3,9% 5% 4% 3% Direktavkastning Dividend yield Indu-A Direktavkastning Dividend yield Indu-C Direktavkastning Dividend yield Börsen OMXSPI 1 2% 1% % Dividend: 2,75 3, 3,5 4,5 5, 4,5 3, 4, 4,5 5,* SEK/share *Yield for 213 by Dec stock market values * The Board of Directors proposes a dividend of SEK 5. to the AGM KV412_eng Nr 13

14 Industrivärden online Reuters code Bloomberg code INDUa.ST INDUA SS Box 543, SE Stockholm, Sweden KV412_eng Nr 14