Long-term industrial developer of listed Nordic companies First Quarter 2012 Industrivärden, April 5, 2012

Transcription

1 Long-term industrial developer of listed Nordic companies First Quarter 2012 Industrivärden, April 5, 2012 KV112_eng Nr 1

2 Long-term industrial developer of listed Nordic companies Ericsson Volvo SSAB Sandvik Skanska SCA KV112_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, % Sandvik 13, ,5 Handelsbanken 13, ,5 Volvo 11, ,0 SCA 8, ,2 Ericsson 5,5 8 14,3 SSAB 3,6 6 22,6 Skanska 3,1 5 23,6 Indutrade 3,0 5 36,8 Höganäs 1,1 2 10,0 Total 63,6 100 As per March 31, 2012 A strong, competitive long-term track record with limited risk KV112_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 KV112_eng Nr 4

5 Long-term value creation Development of net asset value 20 years SEK/share % annualy during the last 20 years period (incl. reinvested dividends) KV112_eng Nr 5

6 3M: 2012 in brief Net asset value on March 31, 2012, was SEK 48,0 bn or SEK 124 per share, an increase of 20% since the start of the year The value of the equities portfolio increased by SEK 7.5 bn,13 %, during the first quarter, in comparison with 10% for the Stockholm Stock Exchange The total return during the first quarter was 20% for the Class A and 20% for the Class C shares, compared with 11% for the return index During the first quarter, shares were sold in the portfolio companies for a total of SEK 0,7 bn KV112_eng Nr 6

7 Net asset value Mar SEK billion Dec Dec Mar SEK per share Dec Dec Equities portfolio Net debt Interest-bearing debt Convertible loan 63,6-15,6-7,1-8,5 56,9-16,8-8,2-8,6 71,1-13,4-9,2-4, Net asset value 48,0 40,1 57, Debt-equity ratio 25% 29% 19% Net asset value after full conv Debt-equity ratio after full conv. 11% 14% 13% KV112_eng Nr 7

8 Industrivärden s stock - good performance Average annual excess return of 4% - points/year vs. MSCI World Average annual excess return of 5% - points/year vs. MSCI Europe Average annual excess return of 2% - points/year vs. Nasdaq OMX Nordic, Stockholm 600 Index Total return 15 yrs INDU C SAX MXWO MXEU As per March 31, 2012 KV112_eng Nr 8

9 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 KV112_eng Nr 9

10 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 Divestment of Medtech. 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. Natural gas plant project in Brazil worth about SEK 1.7 bn. JV with DPR for construction of state-of-the-art R&D facility for a total of approx. SEK 860 M. 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. Acquisition of Everbeauty, leading Taiwanese company in personal care products, strengthens positions in Asia. Olof Persson new CEO Increased strategic focus and new organization. New executive management. 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. KV112_eng Nr 10

11 Portfolio of industry leading companies 63,6 Market value Billion Portfolio value: 63,6 Billion Portfolio share % 100% 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. A well developed universal banking business and decentralized branch network with local customer responsablity contribute to high customer satisfaction and good profitability. Through innovative, customer-adapted product development and high quality, Volvo has attained a world-leading position in commercial transport solutions.. 13,8 22% 13,7 21% 11,8 18% A global hygiene and paper company that successfully develops, produces and markets personal care products, tissue and forest products. 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. 8,1 13% 5,5 8% 3,6 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. 3,1 5% 3,0 5% 1,1 2% (As Per March 31, 2012) KV112_eng Nr 11

12 Debt provides financial leverage Net debt development 10 yrs Interest bearing net debt (SEK bn) Net debt-equity ratio 20,0 18,0 16,0 14,0 35% 30% 25% SEK 15,6 bn 25% 12,0 10,0 8,0 6,0 4,0 2,0 0,0 20% 15% 10% 5% 0% SEK bn Mar Dec Dec Equities portfolio Net debt Net debt eq. ratio 25% 29% 19% Net debt eq. ratio after full conv. S&P rating 11% 14% 13% A-/stable/A 2 KV112_eng Nr 12

13 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 Yield for 2012 by Dec. 30 stock market values KV112_eng Nr 13

14 Industrivärden online Reuters code Bloomberg code INDUa.ST INDUA SS Box 5403, SE Stockholm, Sweden KV112_eng Nr 14