A long-term industrial developer of listed companies

Transcription

1 A long-term industrial developer of listed companies Interim Report, January - June Industrivärden, August 4, 2008 AN_Pres_KV108 Nr 1

2 Company in brief Established: 1944 Stock: Market cap: Free float: 386 million shares, listed on SSEX Approx. USD 5.5 bn (SEK 33 bn) Approx. 40% of shares No. shareholders: 42,000 Average daily trading vol.: Approx. 280,000 shares Coverage: Carnegie, Frida Willmansson, Enskilda Securities, Andreas Joelsson, UBS Nordic, Olof Cederholm Handelsbanken Markets, Magnus Dalhammar Low administrative expenses, USD 14 M or less than 0.2% of AUM Holding company tax status: no tax on capital gains, dividends received/rendered are taxable/deductible Discount to NAV approx. 17% AN_Pres_KV108 Nr 2

3 Portfolio of quality companies Concentrated portfolio provides focus Industry-leading companies provide favorable future opportunities Substantial ownership positions provide influence Long-term focus enables influence through active ownership Professional organization Proven value creation over many years Depth of knowledge about portfolio companies and their business environments Major experience in strategic company development Lean, effective organization provides speed and flexibility Extensive network a strength Returns from short-term transactions cover Industrivärden s costs First-rate methods and models Own-developed work methods, models and systems vouch for high quality Structured processes for evaluating existing and new investments Proven model for profitable value creation AN_Pres_KV108 Nr 3

4 First seven months 2008 in summary Net asset value on July 31 was SEK 101 per share, including reinvested dividends a decrease of 26% since the start of the year. The total return for the Class A shares was -20%, compared with -18% for the return index. Purchase of SEK 1.2 bn in Class A shares in Volvo, after which the ownership amounts to 6.9% of the votes. The purchases were financed by sales of stock. SSAB's sale of IPSCO's tubular operations completed, whereby SSAB's debtequity ratio was reduced from 150% to 42%. Sandvik is carrying out additional measures aimed at improving the profitability of Sandvik Materials Technology. SCA's sale of its corrugated board business in the UK enhanced profitability and strengthens the company's focus on products that provide higher value-added. AN_Pres_KV108 Nr 4

5 The reporting period in summary Equities Portfolio July 31 June 30 Dec. 31 market value, SEK M 49,726 52,201 65,844 Transactions acquisitions, SEK M 2,421 2,214 8,834 sales, SEK M 2,054 2,051 2,124 net, SEK M ,710 July SEK per share June Dec Debt net debt, SEK M 10,599 10,369 10,951 change in net debt ,408 net debt equity ratio 21.3% 19.9% 16.6% Net asset value net asset value, SEK M 39,015 41,719 54,837 change in NAV* -26% -20% 3% total return index -18% -17% 3% Equities portfolio Net debt Net asset value Discount A-share Discount C-share Discount A/C % 23% 17% % 24% 18% % 26% 22% The stocks total return Class A-share -20% -16% 14% total return index -22% -17% 3% * Change in NAV per Industrivärden share, dividends reinvested. AN_Pres_KV108 Nr 5

6 Financial position Net debt (SEK bn) 12,0 Net debt equity ratio 25% 21.3% SEK 10.6 bn 10,0 8,0 6,0 4,0 2,0 0,0 31-mar jun sep-01 AN_Pres_KV108 Nr 6 31-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 jul-08 20% 15% 10% 5% 0%

7 Development of portfolio companies 1-2Q: 2008 Op. income Δ, % Earn. per Δ, % P/E-ratio Operating Δ, %- Net turnover Δ, % Total return, % SEK M share, SEK (r 12M) margin, % pts SEK M 12 mts 98-08/yr Sandvik 6, SHB 6, , SSAB 5, SCA 4, , Ericsson 6, , Volvo 13, , Skanska 2, Indutrade Munters Höganäs Index AN_Pres_KV108 Nr 7

8 Active ownership strategic activities 07/08 Handelsbanken SPP sold for capital gain of approx. SEK 4 bn Greater focus on organic growth outside Sweden New Chairman of the board appointed SSAB Acquisition of IPSCO for SEK 50 bn increases capacity for niche products SEK 10 bn rights issue Divesture of IPSCOs tube business Ericsson Several acquisitions in Multimedia unit Structural program aims at cutting overhead by SEK 4 bn Sandvik Several strategic acquisitions SEK 3.6 bn share redemption Structural actions taken in Materials Technology SCA Skanska New business plan with focus on improved operating margins New financial targets set Johan Karlström new CEO 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 SEK 494 M share redemption and 3:1 split AN_Pres_KV108 Nr 8

9 A portfolio of industry-leading companies Leading metal powder producer 1% or SEK 0.4 bn (2004) Leading player in complex construction projects 5% or SEK 2.5 bn (1987) World leader in moisture control 1% or SEK 0.7 bn (2002) Leading producer of heavy vehicles 8% or SEK 4 bn (1987) Leading high-tech company in materials technology 22% or SEK 11 bn (1997) Technology trading company active in northern Europe 3% or SEK 1.6 bn (1989) World s largest supplier of systems for mobile telecom 10% or SEK 5 bn (1944) Global consumer products and packaging company 10% or SEK 5 bn (1950) Successful universal bank with international growth based on a Nordic base 22% or SEK 11 bn (1963) World leading producer of specialty steel 18% or SEK 9 bn (1994) Portfolio share and value as per July 31, 2008 (Holding since). AN_Pres_KV108 Nr 9

10 Industrivärden s dividend 6 7% 5 6% 4 4.4% 5% 3 4.0% 4% 3% Bonusutdelning dividend Ordinarie Ordinary utdelning dividend Direktavkastning SSEX dividend yield börsen Direktavkastning Dividend yield 2 2% 1 1% 0 0% Dividend: SEK/share Of which ordinary AN_Pres_KV108 Nr 10

11 Good long-term growth in value The average annual excess return for last ten years was 1%-points/year Total return index (Index) (c) SIX AB Industrivärden share Total Return Index (SIXRX) As per July 31, 2008 AN_Pres_KV108 Nr 11

12 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 AN_Pres_KV108 Nr 12