Long-term industrial developer of listed Nordic companies First nine months 2010 Industrivärden, October 5, 2010

Transcription

1 Long-term industrial developer of listed Nordic companies First nine months 2010 Industrivärden, October 5, 2010 Pres_KV310 Nr 1

2 Long-term industrial developer of listed Nordic companies Ericsson Volvo SSAB Sandvik Skanska SCA Pres_KV310 Nr 2

3 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 SSAB Ericsson Skanska Indutrade Munters Höganäs Total AUM As per September 30, 2010 Our rating Standard & Poors: A/stable/A 1 A strong, competitive long-term track record with limited risk Pres_KV310 Nr 3

4 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 Pres_KV310 Nr 4

5 Long-term value creation Development of net asset value SEK/share % annually during the last 20 years period (incl. reinvested dividends) Pres_KV310 Nr 5

6 9M:2010 in brief Net asset value SEK 50.9 bn, or SEK 132/share increase of SEK 8.1 bn, or 22% for the year to date* Total return of 15% for the A-shares and 19% for the C-shares the return index was 18% Net share purchases in foremost Volvo, SSAB and Sandvik totaled SEK 2.0 bn In January a convertible loan worth SEK 5 bn was issued In September Alfa Laval launched a cash bid on the shareholding in Munters *Including reinvested dividends. Pres_KV310 Nr 6

7 Sharp increase in net asset value SEK 51 bn as per September 30, 2010 Volvo SSAB Sandvik Other + SEK 2.8 bn + SEK 2.5 bn + SEK 1.6 bn - SEK 1.2 bn +8.1 bn +22%* SEK 43 bn as per December 31, 2009 *Incl. reinvested dividends. Pres_KV310 Nr 7

8 Net asset value Sept SEK billion Dec Dec Sept SEK per share Dec Dec Equities portfolio Net debt Net asset value Debt-equity ratio 19.9% 20% 31% Debt-equity ratio after full conversion 13.1% - - Pres_KV310 Nr 8

9 Why invest in Industrivärden? The average annual excess return for last ten years was 1%-pt/year Total Return (Index) (c) SIX AB 2010 Industrivärden Return Index As per September 30, 2010 Pres_KV310 Nr 9

10 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 Pres_KV310 Nr 10

11 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 Efficient construction operation generates good cash flows. Proven model for value-creating project development. Strategic focus on environmentally adapted, energy-efficient solutions. Höganäs Handelsbanken 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. Munters 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. 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. Pres_KV310 Nr 11

12 Our portfolio of blue-chip companies Through a niche focus and strong position in R&D, the company has built up a worldleading 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% 22% Through innovative, custom-tailored product development and high quality, the company has a world-leading position in commercial transport solutions 13% The leading European manufacturer of personal care products, with rapidly growing niche products, as well as packaging solutions 11% World-leading position in the niche segment of quenched steels and advanced, highstrength sheet creates solid base for growth and high profitability The market s largest and most profitable supplier of mobile telecom systems, with a leading position in telecom development 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 welldeveloped model for acquisition-based growth, the company has been able to show impressive profitability 10% 9% 6% 4% Strong global position in a business area with major growth potential organically as well as through further development of products and application areas Market leader in the growing niche of metal powders, used primarily for component manufacture in the auto industry 1% 1% As per September 30, 2010 Portfolio value: SEK 63.5 bn Market value SEK bn Portfolio share, % Pres_KV310 Nr 12

13 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 Pres_KV310 Nr 13 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-10 jun-10 sep-10 25% 20% 15% 10% 5% 0% 20% Sept. 30 Dec 31 Dec. 31 SEK bn Listed stocks Net debt Net debt eq. ratio 20% 20% 31% Net debt eq. ratio a. full conversion 13% - - S&P rating: A/stable/A 1

14 High dividend yield 6 9% 5 8% 7% 4 6% 3 3.4% 5% 4% Bonusutdelning dividend Ordinarie Ordinary utdelning dividend Direktavkastning SSEX dividend yield börsen Direktavkastning Dividend yield 2 2.8% 3% 1 2% 1% 0 0% Dividend: SEK/share Of which ordinary Pres_KV310 Nr 14

15 Industrivärden online Reuters code Bloomberg code INDUa.ST INDUA SS Box 5403, SE Stockholm, Sweden Pres_KV310 Nr 15