Long-term industrial developer of listed Nordic companies Full Year 2011 Industrivärden, February 8, 2012

Transcription

1 Long-term industrial developer of listed Nordic companies Full Year 2011 Industrivärden, February 8, 2012 KV411_eng Nr 1

2 Long-term industrial developer of listed Nordic companies Ericsson Volvo SSAB Sandvik Skanska SCA KV411_eng Nr 2

3 Strong base for value creation Our competitive advantages Our portfolio Blue-chip portfolio Leveraged influence Long-term active ownership Extensive structural capital Holding Market value, Portfolio Share of SEK bn share, % votes, % Handelsbanken 12, ,1 Sandvik 12, ,2 Volvo 9, ,0 SCA 7, ,1 Ericsson 5, ,3 SSAB 3,4 6 22,6 Skanska 3,2 6 23,7 Indutrade 2,7 5 36,8 Höganäs 0,9 2 10,0 Total 56,9 100 As per December 30, 2011 A strong, competitive long-term track record with limited risk KV411_eng Nr 3

4 Focused strategy Strong value potential and long-term perspective Portfolio Conditions Scope: Concentrated portfolio focus Sectors: Sector generalist Individual investments Business models: Geographically scalable Market value: Large and midcap companies Cash generation: Good ability Type: Listed stocks Ownership: Major owner with board representation Geography: Nordic companies Evaluation horizon: 5-8 years Business cycle: Expansion or management phase Requirements: Strong potential for value creation Exit: Appropriate exit once target value has been achieved KV411_eng Nr 4

5 12M: 2011 in brief Net asset value of SEK 40,1 bn or SEK 104 per share Total return for the equities portfolio was -23% compared to -14% for the index Share purchases for a total of SEK 4,5 bn net, where purchases in Volvo equals SEK 2,9 bn and where voting rights now amounts 15,0 per cent In early 2011 a six-year convertible loan of EUR 550 M was issued, where the conversion price was set at a premium to net asset value KV411_eng Nr 5

6 Net asset value Feb SEK billion Dec Dec SEK per share Feb Dec Dec Equities portfolio Net debt Interest-bearing debt Convertible loan 66,2-16,9-8,5-8,4 56,9-16,8-8,2-8,6 71,1-13,4-9,2-4, Net asset value 49,3 40,1 57, Debt-equity ratio 26% 30% 19% Net asset value after full conv Debt-equity ratio after full conv. 13% 14% 13% KV411_eng Nr 6

7 Industrivärden s stock - good performance Average annual excess return of 3% - points/year vs. MSCI World Average annual excess return of 6% - points/year vs. MSCI Europe Average annual excess return of 1% - points/year vs. Nasdaq OMX Nordic, Stockholm 300 Index Total return 10 yrs INDU C SAX MXWO MXEU KV411_eng Nr 7

8 Active ownership in brief Focus on value enhancement drivers; strategy, development and positioning Nominating committee participation Board participation/ owner cooperation Boardpresentations In-depth analysis Company, competitors and industry Megatrends Company visits Value creation Fundamental analysis incl. action plan Databases AGM participation Direct dialog with company management KV411_eng Nr 8

9 Active ownership in practise Consistently applied business model. Organic growth in home markets in the Nordic countries and the UK. Favorable financial and market position in a turbulent environment. Strong capitalization with a significant liquidity reserve. Martin Lindqvist new CEO Stronger focus on highly profitable specialty products. Strategic investment program to increase capacity in quenched steel and to strengthen presence in China Strong position ahead of operators investments in next generation of telecom systems (4G). North America s leading supplier of network systems through selective acquisitions. Acquisition of U.S.-based Telcordia for SEK 7 billion strengthens Ericsson s multimedia operations. The share in Sony Ericsson sold to Sony for approx. SEK 9.5 bn. Olof Faxander new CEO Increased strategic focus and new organization. New executive management. Acquisition of Seco Tools Consolidation of completed acquisitions. Strong positions in emerging regions. Efficient construction operation generates good cash flows. Successful model for value-creating project development. Acquisition of construction company in Indiana, US, for approx. SEK 0.9 bn. Construction and Operating Consortium New Karolinska in Stockholm worth SEK 14.5 bn. Acquisition of Georgia-Pacific s European tissue operation for SEK 13 bn on a debt free basis. Strengthened presence in hygiene segment in Brazil, Russia and Turkey. Operations in Australasia sold to co-owned JV, which released SEK 3 bn. The packaging operations are divested for approximately SEK 15 bn on a debt free basis. Olof Persson new CEO Increased strategic focus and new organization. New financial targets. Strong position in Asia, among other markets. Increased activity in emerging markets such as Asia and Brazil. Focus on collaboration with customers on development of new products. Continued growth through acquisitions. Flexibility through decentralized business model. KV411_eng Nr 9

10 Portfolio of industry leading companies 56,9 Market value Billion Portfolio value: 56,9 Billion Portfolio share % 100% A well developed universal banking business and decentralized branch network with local customer responsablity contribute to high customer satisfaction and good profitability. 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 manufacturing, mining and construction industries. Through innovative, customer-adapted product development and high quality, Volvo has attained a world-leading position in commercial transport solutions.. 12,3 21% 12,2 21% 9,3 16% Europe s leading producer of hygiene products, with fast growing range of personal care products, and of packaging. Europe s largest private forest owner. The market s largest and most profitable supplier of mobile telephony infrastructure, with a leading position in telecom development. World-leading position in quenched steels and advanced high-strength sheet niche segments creates solid foundation for growth and sustained high profitability. 7,2 13% 5,6 10% 3,4 6% Comprehensive know-how in construction combined with a process focus has created a leading construction services company with world-class value-creating project development. The combination of sales of industrial, hightech consumables, good organic growth and a highly refined model for aquisitionbased growth has resulted in impressive profitability growth. Market leader in growing niche of metal powder, used primarily for component manufacturing in the automotive industry. 3,2 6% 2,7 5% 0,9 2% (As Per 30 dec 2011) KV411_eng Nr 10

11 High dividend yield 6 10% 9% 5 8% 4 7% 5.5% 6% Utdelning Dividend 3 5.2% 5% 4% Direktavkastning Dividend yield Indu-A Direktavkastning Dividend yield Indu-C Direktavkastning Dividend yield OMXSPI Börsen 2 3.8% 3% 1 2% 1% % Dividend: 2,90 2,75 3,00 3,50 4,50 5,00 4,50 3,00 4,00 4,50* SEK/share * Board s proposal for decision at the AGM 2012 KV411_eng Nr 11

12 Industrivärden online Reuters code Bloomberg code INDUa.ST INDUA SS Box 5403, SE Stockholm, Sweden KV411_eng Nr 12