A long-term industrial developer of listed companies

Transcription

1 A long-term industrial developer of listed companies 1Q:2009 Interim Report Industrivärden, May 4, 2009 Pres_KV109 Nr 1

2 Company in brief Established: 1944 Stock: Market cap: Free float: 386 million shares, listed on SSEX Approx. USD 3.5 bn (SEK 28 bn) Approx. 40% of shares No. shareholders: 48,000 Average daily trading vol.: Approx. 650,000 shares Coverage: Handelsbanken Markets, Magnus Dalhammar Enskilda Securities, Andreas Joelsson, UBS Nordic, Olof Cederholm Low administrative expenses, USD 10 M or 0.2% of AUM Holding company tax status: no tax on capital gains, dividends received/rendered are taxable/deductible Discount to NAV approx. 10% Pres_KV109 Nr 2

3 Mission, goal and strategy Business mission Create shareholder value based on a professional investment operation and active ownership Our goal Generate high growth in net asset value over time Industrivärden s stock will deliver a high total return to shareholders Portfolio Scope: Individual investments Market value: Type: Concentrated portfolio Large and midcap companies Mainly listed Conditions Sectors: Business models: Ownership structure: Investment horizon: Sector generalist Geographically scalable Possibility to be major or largest owner 5-8 years Exit: Appropriate exit once target value has been created Geography: Requirement: Nordic companies Major potential for value creation Pres_KV109 Nr 3

4 Industrivärden at a glance Our strengths Our portfolio Blue chip portfolio Good exchange of influence Long-term active ownership Extensive structural capital Holding Market Share of Share of value, SEK bn votes, % portfolio, % Handelsbanken Sandvik SCA Ericsson SSAB Volvo Skanska Indutrade Munters Höganäs Total 39.9 As per April 30, 2009 Favorable and competitive long-term return with limited risk Pres_KV109 Nr 4

5 Development during January April 2009 Net asset value SEK 31.0 bn or SEK 80/share a increase of SEK 7.1 bn, or 30% for the year Total return of 29% for the Class A shares 9 %-points better than the return index Net debt was SEK 8.9 bn a decrease of SEK 1.9 bn during the year proforma the debt amounted to SEK 10.5 bn including dividends not yet received and proposed dividend payout Pres_KV109 Nr 5

6 1Q:2009 in summary Equities Portfolio April 30 March 31 Dec. 31 market value, SEK M 39,885 34,097 34,744 Transactions acquisitions, SEK M ,644 sales, SEK M ,314 net, SEK M Apr SEK per share March Dec Debt net debt, SEK M 8,896 10,954 10,813 change in net debt -1, net debt equity ratio 22.3% 32.1% 31.1% Net asset value net asset value, SEK M 31,084 23,143 23,931 change in NAV* 30% -3% -55% total return index 20% -2% -39% Equities portfolio Net debt Net asset value Discount A-share Discount C-share Discount A/C % 15% 10% % 13% 6% % 19% 11% The stocks total return Class A-share 29% 3% -47% total return index 20% -2% -39% * Change in NAV per Industrivärden share, dividends reinvested. Pres_KV109 Nr 6

7 Development of net asset value SEK M Mdkr SEK/share Kr/aktie dec-00 dec-01 dec-02 dec-03 dec-04 dec-05 dec-06 dec-07 mar-08 jun-08 sep-08 dec-08 mar-09 apr-09 0 dec-00 dec-01 dec-02 dec-03 dec-04 dec-05 dec-06 dec-07 mar-08 jun-08 sep-08 dec-08 mar-09 apr-09 Aktieportföljen Portfolio Nettoskuld debt Substansvärde Net asset value Pres_KV109 Nr 7

8 A portfolio of industry-leading companies Leading metal powder producer 1% or SEK 0.3 bn (2004) World leader in moisture control 1% or SEK 0.4 bn (2002) Leading player in complex construction projects 7% or SEK 2.5 bn (1987) Leading producer of heavy vehicles 9% or SEK 4 bn (1987) Successful universal bank with international growth based on a Nordic base 23% or SEK 9 bn (1963) Technology trading company active in northern Europe 4% or SEK 1.5 bn (1989) World leading producer of specialty steel 10% or SEK 4 bn (1994) World s largest supplier of systems for mobile telecom 13% or SEK 45bn (1944) Leading high-tech company in materials technology 18% or SEK 7 bn (1997) Global consumer products and packaging company 14% or SEK 6 bn (1950) Portfolio share and value as per April 30, 2009 (Holding since). Pres_KV109 Nr 8

9 Equities portfolio as per April 30, 2009 Value distribution % of portfolio % of capital % of votes Stock No. shares SEK M SEK/share value in company in company Handelsbanken A Handelsbanken B 63,086,964 87,145 8, Sandvik 136,431,200 7, SCA A SCA B 48,600,000 22,200,000 5, Ericsson A 74,400,000 5, SSAB A SSAB B 52,789, ,794 4, Volvo A 70,218,284 3, Skanska A Skanska B 15,091,940 14,733,560 2, Indutrade 14,757,800 1, Munters 10,950, Höganäs B 3,550, Totalt 39, Pres_KV109 Nr 9

10 Active ownership strategic activities Handelsbanken Greater focus on organic growth outside Sweden Acquisition of a Danish bank with 14 offices New Chairman of the board appointed SSAB Acquisition of IPSCO for SEK 50 bn increases capacity for niche products Divesture of IPSCOs tube business Cost-cutting program; SEK 1 bn annually Ericsson Cooperation with ST Microelectronics Several acquisitions in Multimedia unit Structural program aims at cutting overhead by SEK 10 bn Sandvik Several strategic acquisitions SEK 3.6 bn share redemption Structural actions taken in Materials Technology SCA Skanska Increased investment in infrastructure development Actions taken to strengthen competitiveness Adaptation of workforce Strengthening of brand portfolio through acquisition of P&G s European tissue business Divesture of British corrugated board business New organization with focus on growth in hygiene business Indutrade Continuous acquisitions Foothold gained in the UK through two acquisitions Measurement technology company the biggest acquisition since IPO in 2005 Munters Addition of new product areas through company acquisitions Efficiency improvement program Pres_KV109 Nr 10

11 Financial position Net debt (SEK bn) Net debt equity ratio 15,0 35% 13,0 11,0 9,0 7,0 5,0 3,0 1,0-1,0 30-jun-01 Pres_KV109 Nr sep dec mar jun sep dec mar jun sep dec mar jun sep dec mar jun sep dec mar jun sep dec sep dec mar jun sep dec mar apr-09 30% 25% 20% 15% 10% 5% 0% 22.3% SEK 8.9 bn

12 Industrivärden s dividend 6 9% 5 8% 7% 4 7.9% 6% 3 5.0% 5% 4% Bonusutdelning dividend Ordinarie Ordinary utdelning dividend Direktavkastning SSEX dividend yield börsen Direktavkastning Dividend yield 2 3% 1 2% 1% 0 0% Dividend: SEK/share Of which ordinary Pres_KV109 Nr 12

13 Good long-term growth in value The average annual excess return for last ten years was 2%-points/year Total return index (Index) Industrivärden share (c) SIX AB Total Return Index (SIXRX) As per April 30, 2009 Pres_KV109 Nr 13

14 Industrivärden online Reuters code Bloomberg code Datastream code INDUa.ST INDUA SS W :IU info@industrivarden.se Box 5403, SE Stockholm, Sweden Press release direct: / IR / Ask / Info... / Latest News / Subscribe Pres_KV109 Nr 14