Industrivarden Ab Class A · OMXSTO:INDU_A
Industrivarden Ab Class A — FY2002 Earnings Presentation
25 slides from Industrivarden Ab Class A's earnings presentation, Feb 12, 2003
Slide 1: Full Year Report 2002
Full Year Report 2002 Industrivärden, February 12, 2003 AN_Pres_KV402_eng No 1
Slide 2: Industrivärden – investment case
Industrivärden – investment case Good track-record in creating shareholder value over time Long-term approach and financial resources Professional and entrepreneurial organization Experienced board representatives in the holdings Strong brand Valuable contact network with local ties AN_P
Slide 3: Mission, goal and vision
Mission, goal and vision Business mission Create shareholder value based on a professional investment operation and active ownership Our goal Generate high growth in net asset value over time Industrivärden’s stock will give shareholders a high total return Vision To be perceived as the leading in
Slide 4: Two dimensional strategy
Two dimensional strategy Professional invest- ment operation Active ownership Generate high growth in net asset value over time AN_Pres_KV402_eng No 4
Slide 5: Our investment criteria
Our investment criteria Conditions Portfolio Sectors: Sector generalist Scope: Concentrated portfolio Ownership Possibility to be major or Individual investments structure: largest owner Market value: Large and medium- Investment sized companies horizon: 3-8 years Type: Mainly listed Geography: Nord
Slide 6: Ownership structure
Ownership structure % of No. shares shares votes AMF Pension Fund 23.847.444 12 6 SHB Pension Foundation 12.900.000 7 9 Wallanders & Hedelius Foundation 11.100.000 6 8 SHB Pension Fund 10.750.000 6 8 Lundbergföretagen 9.800.000 5 7 Skandia Life Insurance 9.365.963 5 1 SCA 6.993.544 4 5 SCA Pension F
Slide 7: Long-term excess returns
Long-term excess returns The average annual excess return was: +3% / year for the last five years +4% / year for the last ten years Total Return Index (Index) (c) SIX AB 2003 1210 Industrivärden Stock 1000 800 600 400 Total Return Index (SIXRX) 200 100 1993 1994 1995 1996 1997 1998 1999 2000 2001 20
Slide 8: Drop in net asset value during 2002
Drop in net asset value during 2002 SEK/share 400 350 300 250 Development 2002 200 SEK -15 billion or 150 -38% 100 50 0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Net asset value Share price Index (AFGX) AN_Pres_KV402_eng No 8
Slide 9: High level of activity during the year
High level of activity during the year 2002 Divestments which generated substantial capital gains and reduced debt. Continued concentration of the portfolio New investment in the meditech company Össur Subscription for our share in Ericsson’s rights issue Adaptation of the organization to th
Slide 10: Transactions during the recent 15 months
Transactions during the recent 15 months Date Transaction Holding Sector Average Price Capital price gain Nov. 01 Sale Pharmacia Pharmaceuticals SEK 471 780 130 Apr. 02 Sale Lundbeck Pharmaceuticals DKK 231 2,400 1,500 Apr. 02 Sale Besam Door automation - 3,050 2,300 June 02 Sale Biodisk Meditech -
Slide 11: Decreased debt - strong financial position
Decreased debt - strong financial position Net debt (SEK billion) Net debt-equity ratio* 7,0 18% 17% 6,3 16% 6,0 5,1 14% 4,9 5,0 11% 12% 12% 12% 4,0 4,1 10% 9% 3,0 8% 7% 2,2 6% 1,9 2,0 4% 1,0 2% *Parent company’s interest-bearing 0,0 0% net debt in relation 30-sep-01 31-dec-01 31-mar-02 30-jun-02 30
Slide 12: Dividend policy and tax rules
Dividend policy and tax rules Industrivärden's dividend policy is to pay a higher long-term dividend yield than the average for the Stockholm Stock Exchange Taxable Deductible Dividends received Dividends rendered Interest income Interest expenses Standard tax rate, 1.5% of the Administr
Slide 13: Dividend
Dividend 7,0% 6,0% 5,0% 4,0% Direktavkastning Dividend yield Ordinarie Ordinary direktavkastning dividend yield 3,0% SSEXdirektavkastning SSEX dividend yield 2,0% 1,0% 0,0% 1998 1999 2000 2001 2002 Ordinary dividend: 4.50 5.00 5.00 5.00 5.00 SEK/share Bonus dividend: - 1.20 3.40 3.35 0,80 SEK/share
Slide 14: Composition of net asset value
Composition of net asset value SEK billion SEK per share Feb 11 Dec 31 Dec 31 Feb 11 Dec 31 Dec 31 2003 2002 2001 2003 2002 2001 Listed holdings 22.9 24.3 40.5 119 126 210 Unlisted holdings 2.1 2.1 4.1 10 10 21 Total equities portfolio 25.0 26.4 44.6 129 136 231 Other assets and liabilities -2.2 -2.
Slide 15: Development of net asset value
Development of net asset value SEK bn 4,2 54,1 4,2 42,4 4,1 39,4 2,0 29,6 54,9 2,1 24,4 2,1 22,8 43,9 40,5 28,9 24,3 22,9 -5,1 -5,7 -5,2 -1,3 -2,0 -2,2 31 dec-00 30 jun-01 31 dec-01 30 jun-02 31 dec-02 11 feb-03 SEK/share 283 222 204 153 126 118 Noterade innehav Listed holdings Onoterade innehav Unl
Slide 16: Contribution analysis 2002
Contribution analysis 2002 SEK/share Kr/aktie SCA SSAB Skanska Sandvik Handelsbanken Skandia Ericsson Övrigaremaining Other kvarvarande innehav holdings Divested Avyttradeholdings (Besam aktieinnehav incl.) (inkl. Besam) -50 -40 -30 -20 -10 0 10 20 AN_Pres_KV402_eng No 16
Slide 17: Development of net asset value
Development of net asset value Share of net asset value, % 298 283 204 172 153 115 126 SEK/share 100% 90% 22% 26% 27% 27% 30% 25% 30% 80% 70% 11% 12% 14% 21% 17% 10% Övrigt Other 16% 60% 9% 7% Sandvik 14% 50% 8% 16% SCA 15% 23% 21% 25% Handelsbanken 40% 19% 19% Ericsson 30% 46% 23% 23% 20% 38% 25% 2
Slide 18: Sector breakdown, equities portfolio
Sector breakdown, equities portfolio Health care (3%) Other (2%) Trading (6%) Össur Ind Construction (6%) Banking and u Sk tra oth. an Handelsbanken sk insurance (26%) de a Skandia Telecom (12%) Ericsson Sandvik SSAB Isaberg Rapid SCA others Forestry and consumer Engineering (24%) products (21%) As
Slide 19: Listed holdings as per December 31, 2002
Listed holdings as per December 31, 2002 Market value Share of Share of Share of SEK M SEK/share portfolio, % capital, % votes, % Handelsbanken 5,644 29 23 7 7 SCA 5,572 29 23 8 28 Sandvik 4,085 21 17 8 8 Ericsson 2,902 15 12 3 28 Skanska 1,698 9 7 8 32 SSAB 1,243 6 5 12 16 Skandia 1,133 6 5 5 5 Pfi
Slide 20: Development for the listed holdings
Development for the listed holdings Share of Value change, Price change, Yearly average total return, % portfolio value SEK M % Jan. 1, 1998- Jan. 1, 1993- as per Dec. 31, % January 1 – Dec. 31, 2002 Dec. 31, 2002 Dec. 31, 2002 Handelsbanken 23 -1.872 -25 8 34 SCA 23 238 4 15 14 Sandvik 17 -630 -13
Slide 21: Development of internal methods and systems
Development of internal methods and systems Good up-to-date knowledge about interesting companies Ability to act quickly when business opportunities arise Structured investment process Flexible organization at low cost Efficiency and quality AN_Pres_KV402_sve Nr 21
Slide 22: Work process in brief
Work process in brief Investment operation Sale Database Active Priori- owner- Asset management tizing ship Organization Methods & systems Externa Purchase contacts Database Network Analysis Decision Manage- In-depth ment analysis team AN_Pres_KV402_eng No 22
Slide 23: Major knowledge about possible investments
Major knowledge about possible investments Listed companies in the Nordic region: approx. 900 Total market cap: SEK 4,700 billion (Feb. ’03) Continuous Structured Continuous analysis of Ability for quick scanning of all monitoring of selected companies entries companies all interesting that meet inv
Slide 24: Value creation
Value creation Agenda Value creation Active Investment Exit ownership Analysis Value potential Business model, growth, profitability, other value-creating measures Market opportunities Organic growth for the market and company. Acquisition opportunities Strategic positioning Strategy, acquisit
Slide 25: Industrivärden online
Industrivärden online Reuterskod INDUa.ST Bloombergskod INDUA SS Datastream kod 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.se / IR / Ask… / Info... Press release direct: www.waymaker.se