Industrivarden Ab Class A · OMXSTO:INDU_A
Industrivarden Ab Class A — FY2008 Earnings Presentation
16 slides from Industrivarden Ab Class A's earnings presentation, Feb 12, 2009
Slide 1: A long-term industrial developer of listed companies
”A long-term industrial developer of listed companies” Year-End Report 2008 Industrivärden, February 12, 2009 AN_Pres_KV408 Nr 1
Slide 2: Company in brief
Company in brief Established: 1944 Stock: 386 million shares, listed on SSEX Market cap: Approx. USD 2.4 bn (SEK 20 bn) Free float: Approx. 40% of shares No. shareholders: 48,000 Average daily trading vol.: Approx. 650,000 shares Coverage: Handelsbanken Markets, Magnus Dalhammar +46 8
Slide 3: Industrivärden at a glance
Industrivärden at a glance Our strengths Our portfolio Holding Market Share of Share of value, SEK bn votes, % portfolio, % Long-term active ownership Handelsbanken 8.2 23 10,6 Sandvik 6.7 19 11.5 Blue chip portfolio SCA 4.7 14 29.8 Ericsson 4.4 13 13.3 SSAB 3.6 10 21.2 Volvo 3.1 9 8.5 Skanska 2.3 7
Slide 4: Development 2008 in brief
Development 2008 in brief Net asset value SEK 23.9 bn or SEK 62/share a decrease of SEK 30.9 bn, or 56% for the year Total return of -47% for the Class A shares 8 percentage points lower than the return index Net debt was SEK 10.8 bn a decrease of SEK 0.2 bn during the year A tough year,
Slide 5: The reporting period in summary
The reporting period in summary 2009 2008 2007 Equities Portfolio Feb. 9 Dec. 31 Dec. 31 – market value, SEK M 37,370 34,744 65,844 Transactions – acquisitions, SEK M 12 4,644 8,834 SEK per share – sales, SEK M - 4,314 2,124 Feb. 9 Dec. 31 Dec. 31 – net, SEK M 12 330 6,710 2009 2008 2007 Equities po
Slide 6: Development of net asset value
Development of net asset value Kr/aktie SEK/share SEK M Mdkr 70 160 149 151 142 142 60 140 125 102 125 108 50 120 40 100 95 87 30 78 69 80 63 62 20 60 10 40 0 -10 20 -20 0 Portfolio Aktieportföljen Net debt Nettoskuld Substansvärde Net asset value AN_Pres_KV408 Nr 6
Slide 7: Reallocations in portfolio 2008
Reallocations in portfolio 2008 2008 2007 2006 Purchases: SEK 4.6 bn Purchases: SEK 8.8 bn Purchases: SEK 3.2 bn Of which Volvo A: SEK 1.8 bn Of which Volvo A: SEK 4.2 bn Of which Volvo A: SEK 1.8 bn SSAB A: SEK 2.5 bn Tandberg Television: SEK 0.7 bn Sales: SEK 4.3 bn Sales: SEK 2.1 bn Sales: SEK 2.
Slide 8: Buildup of ownership position in Volvo
Buildup of ownership position in Volvo Strong position with good global presence Innovative, customer-adapted product development Major potential through greater need for Industrivärden’s holding transports and infrastructure brought about Shares: 70 million Class A by globalization Market val
Slide 9: Volvo – well-suited for our portfolio profile
Volvo – well-suited for our portfolio profile Business models that can be applied in several markets Orientation toward niches with good profitability Good ability to generate cash flows Major potential for increased value through active ownership AN_Pres_KV408 Nr 9
Slide 10: A portfolio of industry-leading companies
A portfolio of industry-leading companies Leading metal powder producer 1% or SEK 0.42 bn (2004) Leading player in complex construction projects 7% or SEK 2 bn (1987) World leader in moisture control Successful universal bank 1% or SEK 0.4 bn (2002) with international growth Leading producer of base
Slide 11: Equities portfolio as per February 9, 2009
Equities portfolio as per February 9, 2009 Value % of % of % of votes distribution portfolio capital in in Stock No. shares SEK M SEK/share value company company Sandvik 136,431,200 7,776 20 21 11.5 11.5 Handelsbanken A 64,995,564 7,602 20 20 10.4 10.6 Handelsbanken B 118,900 Ericsson A 74,400,000 5
Slide 12: Higher debt-equity ratio due to falling stock market values
Higher debt-equity ratio due to falling stock market values SEK bn Q1:07 Q2:07 Q3:07 Q4:07 Q1:08 Q2:08 Q3:08 Q4:08 Feb:09 Portfolio value 70.6 76.7 77.9 65.8 59.3 52.2 44.4 37.7 xx.x Debt 4.8 6.6 10.8 11.1 10.8 10.4 10.6 10.8 xx.x Debt-equity ratio, % 6.8 8.6 13.9 16.8 18.3 19.8 23.8 31.1 xx.x AN_Pr
Slide 13: Loans at fixed interest with favorable terms provide good predictability
Loans at fixed interest with favorable terms provide good predictability Bank loans totalling SEK 10.8 bn with fixed interest Average term of fixed interest 4.6 years Average interest rate of 4.7% No terms dependent on external ratings Dividends received and redemption programs in 2008 gener
Slide 14: Financial position
30 - 1,0 3,0 5,0 7,0 9,0 -1,0 11,0 13,0 15,0 30 ju n -s -0 AN_Pres_KV408 31 e p - 1 -d 01 31 e c -m -01 Nr 14 3 0 a r- - 0 30 j u n 2 -s -0 31 e p 2 Net debt (SEK bn) -d -0 31 e c 2 -m -02 3 0 a r- - 0 30 ju n 3 -s -0 31 e p - 3 -d 0 31 e c 3 -m -0 3 3 0 a r- - 0 30 ju n 4 -s -0 31 e p 4 -d -0 30 e
Slide 15: Good long-term growth in value
Good long-term growth in value The average annual excess return for last ten years was 2%-points/year Total return index (Index) (c) SIX AB 2009 391 350 Industrivärden share 300 250 200 150 Total Return Index (SIXRX) 100 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 09 As per Febr. xx, 2009 AN_P
Slide 16: Industrivärden online
Industrivärden online Reuters code INDUa.ST Bloomberg code INDUA SS Datastream code W :IU www.industrivarden.net [email protected] +46-8-666 64 00 +46-8-661 46 28 Box 5403, SE-114 84 Stockholm, Sweden www.industrivarden.net / IR / Ask… / Info... Press release direct: www.cision.