Long-term industrial developer of listed Nordic companies First kvarter 2011 Industrivärden, April 5, 2011

Transcription

1 Long-term industrial developer of listed Nordic companies First kvarter 2011 Industrivärden, April 5, 2011 KV111_eng Nr 1

2 Long-term industrial developer of listed Nordic companies Ericsson Volvo SSAB Sandvik Skanska SCA KV111_eng 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 Ericsson SSAB Skanska Indutrade Höganäs Total AUM 70,7 100 As per March 31, 2011 Our rating Standard & Poors: A/stable/A 1 A strong, competitive long-term track record with limited risk KV111_eng 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: Business cycle: Exit: Nordic companies Expansion or management phase Appropriate exit once target value has been achieved Evaluation horizon: Requirement: 5-8 years Strong potential for value creation KV111_eng Nr 4

5 Long-term value creation Development of net asset value SEK/share KV111_eng Nr % annually during the last 20 years period (incl. reinvested dividends)

6 2011 in brief Net asset value SEK 54,9 or SEK 142/share a decrease of 5% during 2011 an increase of 16% during since March 2010 Total return of 2% for the Class A-shares and -1% for Index 3%-points better than the Return Index in %-points better than the Return Index since March 2010 Six-year convertible bonds of EUR 550 M issued at favorable terms Share purchases for a total of SEK 3,4 bn, net Purchases in Volvo for SEK 1,5 bn. Ownership 13 %V and 5 %C Purchases in Höganäs for SEK 0,2 bn. Ownership 10 %V and 13 %C KV111_eng Nr 6

7 Net asset value Mar SEK billion Dec Mar Mar SEK per share Dec Mar Equities portfolio Net debt Net asset value , Debt-equity ratio 22% 19% 19% Net asset value after full conv Debt-equity ratio after full conv. 10% 13% 11% KV111_eng Nr 7

8 Why invest in Industrivärden? The average annual excess return for last twenty years was 1%-pt/year Industrivärden C Index As per March 31, 2011 KV111_eng Nr 8

9 Active ownership in brief Focus on value enhancement drivers: strategy, development and positioning Board participation/ owner cooperation 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 KV111_eng Nr 9

10 Active ownership in practice Ericsson Handelsbanken 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. SSAB Martin Lindqvist new CEO. 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. Sandvik Olof Faxander new CEO. Consolidation of completed acquisitions. Restructuring program designed to adapt costs and production capacity to market situation. Skanska Efficient construction operation generates good cash flows. Proven model for value-creating project development. Strategic focus on environmentally adapted, energy-efficient solutions. SCA Focus on profitable growth with strong brands in hygiene segment. Efficiency improvement measures in packaging operations. Extensive restructuring in product portfolio. Volvo Olof Persson new CEO as from Sept Acquisition-driven expansion and broadened product programs in Asia. Development of new, own platform of medium-duty engines. Höganäs Strong focus on collaboration with customers in new product development. Acquisition of U.S. powders business. Indutrade Continued company acquisitions. Decentralized business model. Establishment in new geographic markets. Strong position in energy segment. KV111_eng 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 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 24% 21% Through innovative, custom-tailored product development and high quality, the company has a world-leading position in commercial transport solutions 17% 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 World-leading position in the niche segment of quenched steels and advanced, highstrength sheet creates solid base for growth and high profitability 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 9% 8% 6% 4% Market leader in the growing niche of metal powders, used primarily for component manufacture in the auto industry 1.0 Portfolio value: SEK 70.9 bn Market value SEK bn 1% As per March 31, 2011 Portfolio share, % KV111_eng Nr 11

12 Strong financial position Interest bearing net debt (SEK bn) 15,0 13,0 11,0 9,0 7,0 5,0 3,0 1,0-1,0 Net debt-equity ratio 35% 30% 25% 20% 15% 10% 5% 0% SEK 15.8 bn 22% Mar 31 Dec 31 Mar 31 SEK bn Listed stocks Net debt Net debt eq. ratio 22% 19% 20% Net debt eq. ratio a. full conversion 10% 13% 11% S&P rating: A/stable/A 1 KV111_eng Nr 12

13 High dividend yield 6 9% 8% 5 7% 4 6% 3 3.3% 5% 4% Bonusutdelning dividend Ordinarie Ordinary utdelning dividend Direktavkastning SSEX dividend yield Direktavkastning Dividend yield börsen 2 3.2% 3% 2% 1 1% % Dividend: SEK/share Of which ordinary KV111_eng Nr 13

14 Industrivärden online Reuters code Bloomberg code INDUa.ST INDUA SS Box 5403, SE Stockholm, Sweden KV111_eng Nr 14