Long-term industrial developer of listed Nordic companies First nine months 2011 Industrivärden, October 5, 2011

Transcription

1 Long-term industrial developer of listed Nordic companies First nine months 2011 Industrivärden, October 5, 2011 KV311_eng Nr 1

2 Long-term industrial developer of listed Nordic companies Ericsson Volvo SSAB Sandvik Skanska SCA KV311_eng Nr 2

3 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 Handelsbanken Sandvik Volvo SCA Ericsson SSAB Skanska Indutrade Höganäs Totalt As per September 30, 2011 Our rating Standard & Poors: A/stable/A 1 A strong, competitive long-term track record with limited risk KV311_eng Nr 3

4 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 KV311_eng Nr 4

5 9M:2011 in brief Net asset value SEK 35.0 or SEK 91/share Total return of -34% for the Class A-shares and -20% for Index Share purchases for a total of SEK 4.7 bn, net of which purchases in Volvo of SEK 2.9 bn, in which the share of votes is 14.7% KV311_eng Nr 5

6 Net asset value Sept SEK billion Dec Sept Sept SEK per share Dec Sept Equities portfolio Net debt Net asset value Debt-equity ratio 33% 19% 20% Net asset value after full conv Debt-equity ratio after full conv. 16% 13% 13% KV311_eng Nr 6

7 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 September 30, 2011 KV311_eng Nr 7

8 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 KV311_eng Nr 8

9 Active ownership in practice Handelsbanken 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. SSAB Stronger focus on highly profitable specialty products. Acquisitions in North America have boosted capacity for niche products and enable continued expansion in emerging markets, such as Asia. Ericsson 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. Sandvik Increased strategic focus and new organization. New executive management. Consolidation of completed acquisitions. Strong positions in emerging regions. Skanska Efficient construction operation generates good cash flows. Successful model for value-creating project development. SCA Restructured product portfolio with focus on growth in the hygiene segment. Stronger presence in hygiene segment in Brazil. Strengthened global and regional brands. Higher pace of innovation. Volvo Olof Persson new CEO Increased strategic focus and new organization. New financial targets. Strong position with acquisition-driven expansion in Asia, among other markets. Höganäs Increased activity in emerging markets such as Asia and Brazil. Focus on collaboration with customers on development of new products. Indutrade Acquisition of Swiss Abima creates platform for continued expansion in Central Europe. Flexibility through decentralized business model. KV311_eng Nr 9

10 Our portfolio of blue-chip companies A decentralized branch operation with local customer responsibility has resulted in high level of customer satisfaction and enables 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 the manufacturing, mining and construction industries Through innovative, custom-tailored product development and high quality, the company has a world-leading position in commercial transport solutions The leading European manufacturer of personal care products, with rapidly growing niche products, as well as packaging solutions 23% 22% 16% 11% The market s largest and most profitable supplier of mobile telecom systems, with a leading position in telecom development World-leading position in the niche segment of quenched steels and advanced, highstrength sheet creates solid base for growth and high profitability 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 welldeveloped model for acquisition-based growth, the company has been able to show impressive profitability 10% 6% 5% 5% Market leader in the growing niche of metal powders, used primarily for component manufacture in the auto industry 0.8 Portfolio value: SEK 52.2 bn Market value SEK bn 2% As per September 30, 2011 Portfolio share, % KV311_eng Nr 10

11 High dividend yield 6 9% 8% 5 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% 2% 1 1% % Dividend: SEK/share Of which ordinary KV311_eng Nr 11

12 Industrivärden online Reuters code Bloomberg code INDUa.ST INDUA SS Box 5403, SE Stockholm, Sweden KV311_eng Nr 12