Long-term industrial developer of listed Nordic companies

Transcription

1 Long-term industrial developer of listed Nordic companies First half year 2010 Industrivärden, July 5, 2010 AN_Pres_KV210 Nr 1

2 Company in brief Established: 1944 Stock: Market cap: Free float: Rating: Listed on NASDAQ OMX Nordic, Stockholm Approx. EUR 3.4 bn (SEK 33 bn) Approx. 40% of shares S&P; A/stable/A-1 No. shareholders: 50,000 Average daily trading vol.: Approx. 210,000 Class A-shares 570,000 Class C-shares Coverage (selection): Handelsbanken Markets, Jaan Köll SEB Enskilda Securities, Petter Hjertstedt, Goldman Sachs, Markus Iwar UBS Nordic, Olof Cederholm Credit Suisse, Leo Vicars, Deutsche Bank, Hans Derninger, AN_Pres_KV210 Nr 2

3 Long-term industrial developer of listed Nordic companies Ericsson Volvo SSAB Sandvik Skanska SCA AN_Pres_KV210 Nr 3

4 Strong base for value creation Our competitive advantages Our portfolio Holding Market value, Portfolio Share of SEK bn share, % votes, % Blue-chip portfolio Leveraged influence Long-term active ownership Extensive structural capital Sandvik Handelsbanken Volvo SCA Ericsson SSAB Skanska Indutrade Höganäs Munters Total AUM As per June 30, 2010 Our rating Standard & Poors: A/stable/A 1 A strong, competitive long-term track record with limited risk AN_Pres_KV210 Nr 4

5 Focused strategy Strong value potential and long-term perspective Portfolio Scope: Individual investments Market value: Type: Concentrated portfolio focus Large and midcap companies Listed stocks Conditions Sectors: Business models: Cash generation: Ownership Sector generalist Geographically scalable Good ability Major owner with board representation Geography: Nordic companies Evaluation horizon: 5-8 years Business cycle: Exit: Expansion or management phase Appropriate exit once target value has been achieved Requirement: Strong potential for value creation AN_Pres_KV210 Nr 5

6 6M:2010 in brief Net asset value SEK 46.3 bn, or SEK 120/share increase of SEK 3.5 bn, or 11% for the year to date* Total return of 3% for the A-shares and 5% for the C-shares the return index was 7% In May, Volvo A-shares at an amount of SEK 800 M were purchased in a share swap at an average price of SEK 63 per share Net share purchases totaled SEK 2.1 bn In January a convertible loan worth SEK 5 bn was issued *Including reinvested dividends. AN_Pres_KV210 Nr 6

7 Net asset value June SEK billion Dec Dec June SEK per share Dec Dec Equities portfolio Net debt Net asset value Debt-equity ratio 21% 20% 31% Debt-equity ratio after full conversion 14% - - AN_Pres_KV210 Nr 7

8 Why invest in Industrivärden? The average annual excess return for last ten years was 1%-pt/year Total Return (Index) Industrivärden Return Index As per June 30, 2010 AN_Pres_KV210 Nr 8

9 Active ownership in brief Focus on value enhancement drivers: strategy, development and positioning Board participation Analyst presentations Company, competitors and industry Megatrends Nominating committee participation Value creation Ownership agenda incl. action plan In-depth analysis Company visits Database monitoring AGM participation Direct dialog with company management AN_Pres_KV210 Nr 9

10 Active ownership in practice Ericsson Consistently applied business model. Organic growth in home markets in the Nordic countries and the UK. Strong financial and market position in a turbulent environment. Strong position ahead of operators investments in next generation of telecom systems (LTE) Favourable growth in Services segment. Acquisition of Nortel s U.S. mobile systems business, together with central customer contracts, makes Ericsson a leader also in North America. Skanska Handelsbanken Efficient construction operation generates good cash flows. Proven model for value-creating project development. Strategic focus on environmentally adapted, energy-efficient solutions. SSAB New market-oriented organization. Cost-cutting program has had faster impact than planned. Acquisition of IPSCO s North American steel mills and coming capacity investments in North America strengthen position as leading player and enable continued global expansion. Consolidation of completed acquisitions. Restructuring program designed to adapt costs and production capacity to market situation. SCA Sandvik Focus on profitable growth with strong brands in hygiene segment. Efficiency improvement measures in packaging operations. Extensive restructuring in product portfolio. Höganäs Strong focus on collaboration with customers in new product development. Acquisition of U.S. powders business. Strong measures reduce working capital. Indutrade Continued company acquisitions. Decentralized business model. Establishment in new geographic markets. Strong position in energy segment. Munters Strong global position in selected niches. Stronger focus through the divesture of the MCS operation. Organic and acquisition-driven growth via gradual broadening of product portfolio. AN_Pres_KV210 Nr 10

11 Our portfolio of blue-chip companies Through a niche focus and strong position in R&D, the company has built up a world-leading position in materials technology with products primarily in the manufacturing and mining industries A decentralized branch operation with local customer responsibility has resulted in high level of customer satisfaction and enables good profitability 23% 21% Through innovative, custom-tailored product development and high quality, the company has a world-leading position in commercial transport solutions 12% The leading European manufacturer of personal care products, with rapidly growing niche products, as well as packaging solutions 11% The market s largest and most profitable supplier of mobile telecom systems, with a leading position in telecom development 11% World-leading position in the niche segment of quenched steels and advanced, high-strength sheet creates solid base for growth and high profitability 10% Uniqe, comprehensive know-how in construction combined with process focus has resulted in a leading construction company with value-creating project development By combining sales of industrial consumables with strong organic growth and a well-developed model for acquisition-based growth, the company has been able to show impressive profitability 6% 4% Market leader in the growing niche of metal powders, used primarily for component manufacture in the auto industry Strong global position in a business area with major growth potential organically as well as through further development of products and application areas 1% 1% As per June 30, 2010 Portfolio value: SEK 58.9 bn Market value SEK bn Portfolio share, % AN_Pres_KV210 Nr 11

12 Strong financial position Interest bearing net debt (SEK bn) Net debt-equity ratio 15,0 35% 13,0 30% SEK 12.6 bn 11,0 9,0 7,0 5,0 3,0 1,0-1,0 jun-01 sep-01 dec-01 mar-02 jun-02 sep-02 AN_Pres_KV210 Nr 12 dec-02 mar-03 jun-03 sep-03 dec-03 mar-04 jun-04 sep-04 dec-04 mar-05 jun-05 sep-05 dec-05 mar-06 jun-06 sep-06 dec-06 sep-07 dec-07 mar-08 jun-08 sep-08 dec-08 mar-09 jun-09 jul-09 sep-09 okt-09 dec-09 feb-10 mar-09 jun-09 25% 20% 15% 10% 5% 0% 21% June 30 Dec 31 Dec. 31 SEK bn Listed stocks Net debt Net debt eq. ratio 21% 20% 31% Net debt eq. ratio a. full conversion 14% - - S&P rating: A/stable/A 1

13 High dividend yield 6 9% 5 8% 7% 4 6% 3 3.4% 5% 4% Bonusutdelning dividend Ordinarie Ordinary utdelning dividend Direktavkastning SSEX dividend börsen yield Direktavkastning Dividend yield 2 2.8% 3% 1 2% 1% 0 0% Dividend: SEK/share Of which ordinary AN_Pres_KV210 Nr 13

14 Industrivärden online Reuters code Bloomberg code INDUa.ST INDUA SS Box 5403, SE Stockholm, Sweden AN_Pres_KV210 Nr 14