Long-term asset manager and active owner of Nordic listed companies Full Year 2015 February 5, 2016 Year-End presentation 12M 2015 1
Summary 12 months, 2015 The total return for the year was 15% for the Class A shares and 11% for the Class C shares, compared with 10% for the SIXRX total return index. Net asset value was SEK 160/share on December 31, 2015, representing an increase of 1% for the year, and 5% including reinvested dividend. Earnings per share for the year were SEK 7.18 (12.62). Net asset value was SEK 155/share on February 4, 2016. At the AGM on May 6, 2015 Fredrik Lundberg was elected as new Chairman of the Board, and in September 2015 Helena Stjernholm took office as new CEO. In order to increase Industrivärden s financial flexibility and capacity the Board of Directors has decided on a new dividend policy and a new debt policy. The Board of Directors proposes a dividend of SEK 5.00 per share (6.25), corresponding to a dividend yield of 3.4% for the Class C shares. Year-End presentation 12M 2015 2
The portfolio: Quality holdings with good return potential Full-service bank with a nationwide branch network in Sweden, the UK, Denmark, Finland, Norway and the Netherlands. Leading global hygiene and forest products company with innovative products and strong brands. Leading global player in modern transport solutions. Global industrial group with unique know-how in customer adapted materials technology. World leading supplier of complete solutions for telecommunications. Other; 0% 6% 2% 8% 27% 8% 13% SEK 82 bn The Nordic region s leading retail company through local entrepreneurship. 14% 21% Leading international player in sustainable construction and project development. Highly specialized global steel company with a niche focus on high-strength steel. Per December 31, 2015 Year-End presentation 12M 2015 3
Net Asset Value as per December 31, 2015 Total return for equities portfolio 2015 SCA ICA Gruppen Skanska Sandvik 0.2 0.1 0.0 Volvo -0.3 SEK bn Ericsson Handelsbanken -0.5-0.8 SSAB -1.4-2.0-1.0 0.0 1.0 2.0 3.0 4.0 5.0 Major transactions per holding 2015 Net Sales, SEK bn 6.0 5.9 Ownership in company, % Portfolio companies Capital Votes Market value Share of value, % SEK M SEK/share* SEK/* Handelsbanken 10.2 10.3 27 21,901 51 SCA 10.0 29.6 21 17,424 40 Volvo 6.7 21.3 14 11,626 27 Sandvik 11.8 11.8 13 11,003 25 Ericsson 2.6 15.2 8 6,828 16 ICA Gruppen 10.5 10.5 8 6,494 15 Skanska 7.1 24.1 6 4,946 11 SSAB 10.7 17.7 2 1,328 3 Other 0 286 1 Equities portfolio 100 81,835 189 Interest-bearing Ränt net debt -12,648-29 of which, convertible loan -4,891-11 Adjustment related to exchangeable -131 0 Total -1.9 Net asset value 69,056 160 Net debt-equities ratio 15% Kone -1.2 Net Substansvärde asset value after full conversion 160-2.0-1.5-1.0-0.5 0.0 Net Su debt-equities ratio after full conversion 9% *Refers to value per Industrivärden share. Year-End presentation 12M 2015 4
Return development as per December 31, 2015 NAV development Total return for different periods of time SEK bn % per year 90 80 70 60 50 40 30 20 10 0-10 -20 Time period (no. years) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 25 20 15 10 5 0-5 Time period (no. years) 10 9 8 7 6 5 4 3 2 1 Equities portfolio Interest-bearing net debt Net Asset Value Total Return Index, world (MSCI) Total Return Index, Stockholm (SIXRX) Industrivärden C Yearly returns 10 years 7 years 5 years 3 years 1 year Industrivärden C (CAGR) 8% 21% 8% 15% 11% Industrivärden C vs. Stockholm Stock Exchange (SIXRX) -1% pt. +3% pts. -2% pts. -3% pts. 0% pts. Industrivärden C vs. World Index (MSCI) +2% pts. +9% pts. 0%-pts. +4% pts. +11% pts. Year-End presentation 12M 2015 5
A stronger Industrivärden Industrivärden is now taking a number of important development steps in order to strengthen the ability to create shareholder value: We are sharpening our focus on returns and clarifying our active ownership o o o o Affected pace of change in the portfolio over time Strengthened involvement in the board nomination process Increased pace of change in portfolio companies facing substantial challenges Strengthened corporate governance structure We are strengthening our relationships with other owners and various capital market actors We are broadening our investment universe Nordic listed companies with good return potential; o at least 10% of the votes o for Mcap of SEK 3-10 bn: 20-30% of the capital Year-End presentation 12M 2015 6
New policies for increased flexibility and capacity Dividend policy: The company shall generate a positive cash flow before changes in the portfolio and after dividends paid. This is in order to build investment capacity over time and be able to support portfolio companies if necessary. The dividends shall be well balanced with respect to the operation s targets, scale and risk. Debt policy: Industrivärden s net debt-equities ratio shall be in the range of 0-10%, but may periodically exceed or be below this interval. Year-End presentation 12M 2015 7
www.industrivarden.net AB INDUSTRIVÄRDEN (publ) P.O. Box 5403, SE-114 84 Stockholm, Sweden Phone: +46-8-666 64 00 info@industrivarden.se Year-End presentation 12M 2015 8