Long-term investor & active owner in Nordic companies

Transcription

1 Long-term investor & active owner in Nordic companies First nine months, October 6 th 2014 KV3_2014_eng 1

2 Operations KV3_2014_eng 2

3 Experienced long-term industrial developer Target: To generate high growth in net asset value through active ownership and thereby give the shareholders a total return which, over the long term, is higher than the average for the Stockholm Stock Exchange Strategy: Long-term active ownership and a professional investment operation Achievements: Strong track-record with low cost at a limited risk KV3_2014_eng 3

4 We invest in Nordic blue-chips with a long-term value potential Demonstrated ability proven business models with strong brands Strategic focus leading positions in selected market segments Scalability business models that can be applied in several markets Financial growth good ability to generate growth in cash flow Strong corporate culture and strong leadership KV3_2014_eng 4

5 Criteria matched by our holdings High customer satisfaction through local customer responsibility Unique know-how in customer-adapted materials technology Innovative hygiene and forest products Leading position in modern transport solutions Leadership in telecom Preferably #1 in its market segment Market-leading retail company through local entrepreneurship International construction and project development operation Niche focus on high-strength steel KV3_2014_eng 5

6 Influence through strong ownership positions Market value Portfolio Share of Board Influential position (SEK bn) share (%) votes (%) seats (no.) since (year) Handelsbanken Sandvik SCA Volvo Ericsson ICA Gruppen Skanska SSAB Kone Övrigt Per September 30, 2014 KV3_2014_eng 6

7 Our strengths Structural capital Corporate governance Influence High-quality portfolio companies Substantial structural capital Professional organization Experienced board members Well proven and effective work methods Extensive networks Good financial resources Proven corporate governance model Well developed owner strategy Close dialog with portfolio companies Long-term focus enhances potential Strong exchange of influence Significant influence in eight listed companies Collaboration with other owners Strong positions of trust High-quality portfolio companies Professional selection process Companies with substantial value potential KV3_2014_eng 7

8 We contribute to the development A long-term perspective: Seeks to optimize long-term growth in value over time Influence: Ability to support or initiate strategic decisions Knowledge & experience: Professional board members with access to high-quality networks and analysis support Involvement: Evaluates, discusses, lends support and makes clear demands Resources: Financial strength and extensive networks KV3_2014_eng 8

9 Net asset value development 20 yrs SEK/share Year +11% per year during the last twenty-year period (incl. reinvested dividends) KV3_2014_eng 9 Per September 30, 2014

10 Active ownership model in brief Industrivärden s board Corporate governance issues Ownership strategy Major transactions Management / Investment teams Analysis of portfolio companies Business intelligence and megatrends Dialog with management of portfolio companies Nominating committee work Participation in general meetings of shareholders Action plan Fundamental analysis Investigative assignment Board members with ties to Industrivärden Board representation in portfolio companies Shareholder cooperation Portfolio companies KV3_2014_eng 10

11 Ownership issues Governance issues Nomination processes & AGM Board work Strategic board issues Management Strategy Market & growth Positioning & potential Improvements Financial structure etc. Focus on value enhancement KV3_2014_eng 11

12 Highlights 9 months KV3_2014_eng 12

13 Highlights 9M:2014 The total return for the first nine months of the year was 5% for the Class A shares and 7% for the Class C shares, compared with 9% for the SIXRX total return index. For longer periods of time, the shares have generated a higher total return than the total return index. Net asset value on September 30, 2014, was SEK 152/share, which adjusted for conversions and reinvested dividend amounted to a rise of 5% year to date. Earnings per share for the first nine months of the year were SEK 7.54 (21.31). SSAB s merger with Finnish Rautaruukki has been concluded, and the integration proceeds according to plan. The short-term equity trading generated a strong profit of SEK 175 (83) million during the first nine months, despite relatively low volatility in the market. KV3_2014_eng 13

14 SEK bn Total return equities portfolio 9M:2014 2, , , , , , ,5 Equities portfolio: +4% SIXRX: +9% KV3_2014_eng 14

15 Competitive return over time Total return for different periods of time % per year Favorable excess return for longer periods of time Industrivärden C Stockholm Stock Exchange World index Time period (no. years) Yearly excess return Industrivärden C 1 year 5 years 10 years 15 years 20 years Stockholm Stock Exchange (SIXRX) -5%-pts. +2%-pts. 0%-pt. +1%-pts. +2%-pt. World index -16%-pt. +3%-pts. +4%-pts. +5%-pts. +6%-pts. Per September 30, 2014 KV3_2014_eng 15

16 Debt provides financial leverage SEK M SEK bn Sept Sept Equities portfolio Net debt Net asset value Net debt-equities ratio 18% 23% Net debt-equities ratio ater full conversion 12% 12% S&P rating A-/stable/A Year Equities portfolio Interest-bearing net debt, SEK M Net asset value, SEK M KV3_2014_eng 16

17 High dividend yield which is higher than the average for the Stockholm Stock Exchange SEK % ,2% 4.2% 4,5% 4.5% 3,7% 3.7% Utdelning Dividend Direktavkastning Dividend yield, C-share Indu-C År 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% Dividend Direktavkastning yield, A-share Indu-A Dividend Direktavkastning yield, Stockholm Börsen Stock Exchange The dividend yield has during the last ten years execeeded the average for the Stockholm Stock Exchange. Dividend: SEK/share *Dividend yield for 2014, at December market values KV3_2014_eng 17

18 AB INDUSTRIVÄRDEN (publ) P.O. Box 5403, SE Stockholm, Sweden Phone: KV3_2014_eng 18