Long-term industrial developer of listed Nordic companies First half year 2011 Industrivärden, July 5, 2011

Transcription

1 Long-term industrial developer of listed Nordic companies First half year 2011 Industrivärden, July 5, 2011 KV211_eng Nr 1

2 Company in brief Established: 1944 Stock: Market cap: Free float: Rating: Listed on NASDAQ OMX Nordic, Stockholm Approx. EUR 5 bn (SEK 43 bn) Approx. 40% of shares S&P; A/stable/A-1 No. shareholders: 50,000 Average daily trading vol.: Approx. 250,000 Class A-shares 430,000 Class C-shares Coverage (selection): Handelsbanken Markets, Jaan Köll Goldman Sachs, Markus Iwar UBS Nordic, David Halldén Credit Suisse, Leo Vicars, Deutsche Bank, Hans Derninger, KV211_eng Nr 2

3 Long-term industrial developer of listed Nordic companies Ericsson Volvo SSAB Sandvik Skanska SCA KV211_eng Nr 3

4 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 Ericsson SCA SSAB Skanska Indutrade Höganäs Total AUM As per June 30, 2011 Our rating Standard & Poors: A/stable/A 1 A strong, competitive long-term track record with limited risk KV211_eng Nr 4

5 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: Nordic companies Evaluation horizon: 5-8 years Business cycle: Exit: Expansion or management phase Appropriate exit once target value has been achieved Requirement: Strong potential for value creation KV211_eng Nr 5

6 Long-term value creation Development of net asset value SEK/share % annually during the last 20 years period (incl. reinvested dividends) KV211_eng Nr 6

7 6M:2011 in brief Net asset value SEK 52.0 or SEK 135/share Total return of -5% for the Class A-shares and -1% for Index Share purchases for a total of SEK 3.5 bn, net of which purchases in Volvo of SEK 1.6 bn KV211_eng Nr 7

8 Net asset value SEK billion June 30 Dec. 31 June SEK per share June 30 Dec. 31 June Equities portfolio Net debt Net asset value , Debt-equity ratio 23% 19% 21% Net asset value after full conv Debt-equity ratio after full conv. 11% 13% 14% KV211_eng Nr 8

9 Why invest in Industrivärden? The average annual excess return for last twenty years was 1%-pt/year Total Return Index Industrivärden C Return Index As per June 30, 2011 KV211_eng Nr 9

10 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 KV211_eng Nr 10

11 Active ownership in practice Ericsson 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. Skanska Handelsbanken Efficient construction operation generates good cash flows. Proven model for value-creating project development. Strategic focus on environmentally adapted, energy-efficient solutions. 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. 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. KV211_eng Nr 11

12 Our portfolio of blue-chip companies Through a niche focus and strong position in R&D, the company has built up a world-leading 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 Through innovative, custom-tailored product development and high quality, the company has a world-leading position in commercial transport solutions The market s largest and most profitable supplier of mobile telecom systems, with a leading position in telecom development 23% 20% 18% 10% The leading European manufacturer of personal care products, with rapidly growing niche products, as well as packaging solutions World-leading position in the niche segment of quenched steels and advanced, high-strength sheet creates solid base for growth and high profitability 10% 8% 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 well-developed model for acquisition-based growth, the company has been able to show impressive profitability 5% 4% Market leader in the growing niche of metal powders, used primarily for component manufacture in the auto industry 1.1 Portfolio value: SEK 67.9 bn 2% As per June 30, 2011 Market value SEK bn Portfolio share, % KV211_eng Nr 12

13 Strong financial position Interest bearing net debt (SEK bn) 18,0 16,0 14,0 12,0 10,0 Net debt-equity ratio 35% 30% 25% 20% SEK 15.9 bn 23% 8,0 6,0 4,0 2,0 0,0 15% 10% 5% 0% June 30 Dec 31 June 30 SEK bn Listed stocks Net debt Net debt eq. ratio 22% 19% 21% Net debt eq. ratio a. full conversion 11% 13% 14% S&P rating: A/stable/A 1 KV211_eng Nr 13

14 High dividend yield 6 9% 5 8% 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% 1 2% 1% % Dividend: SEK/share Of which ordinary KV211_eng Nr 14

15 Industrivärden online Reuters code Bloomberg code INDUa.ST INDUA SS Box 5403, SE Stockholm, Sweden KV211_eng Nr 15