Industrivarden AB Class A · OMXSTO:INDU_A
Industrivarden AB Class A — FY2006 Earnings Presentation
19 slides from Industrivarden AB Class A's earnings presentation, Feb 15, 2007
Slide 1: A long-term industrial developer of listed companies
”A long-term industrial developer of listed companies” Full year 2006 Industrivärden, February 15, 2007 AN_Pres_KV406 Nr 1
Slide 2: Company in brief
Company in brief Established: 1944 Stock: 193 million shares, listed on SSEX Market cap: Approx. USD 7.5 bn (SEK 54 bn) Free float: Approx. 40% of shares No. shareholders: 39,000 Average daily trading vol.: Approx. 140,000 shares Coverage: Carnegie, Frida Willmansson, +46 8 676 88 00 E
Slide 3: Mission, goal and strategy
Mission, goal and strategy 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 deliver a high total return to shareholders Portfolio Conditions Scope: Conc
Slide 4: Investment focus
Investment focus Nordic companies Public sector Startup phase Expansion Management Restructuring phase phase phase Venture capitalists Private equity investor in mature companies Industrivärden AN_Pres_KV406 Nr 4
Slide 5: Investment case – comparable advantages
Investment case – comparable advantages Proven track record – excess returns over a long period of time Cost-efficient organization – less than 0.2% in management costs High quality portfolio of blue-chip companies Good financial resources and long-term perspective First-rate model for exe
Slide 6: 2006 in summary
2006 in summary +107% Net asset value SEK 58.5 billion, SEK +10.2 SEK bn Mdkr +22% +32% +21% +6% billion, or +24% including reinvested dividends 80 The total return for Industrivärden Class A 70 shares was 29%, and the total return for the 60 Net asset Class C shares was 28%, compared with 28% f
Slide 7: Industrivärden's dividend
Industrivärden’s dividend 10 7% 9 6% 8 7 5% 6 Bonusutdelning Bonus dividend 4% 3.3% Ordinary dividend Ordinarie utdelning 5 SSEX dividend yield Direktavkastning börsen 3% Dividend yield Direktavkastning 4 3.0% 3 2% 2 1% 1 0 0% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Dividend: 3.75 4.50 6.2
Slide 8: Stock Split
Stock Split To facilitate trading in round lots for shareholders with small holdings, the Board has proposed a 2:1 split. The split is planned to be implemented in April 2007. Number Current Split 2:1 Class A shares 134,273,702 268,547,404 Class C shares 58,861,910 117,723,820 Total 193,135,612 386,
Slide 9: Development of portfolio companies
Development of portfolio companies Total return, % 2006 Net sales Δ, % Op. income Δ, % Margin % Δ % pts 2006 Ten yrs., annually SHB 06’ 21,212 12 12,132 10 57.2 -1.2 9 16 (9 m) 05’ 18,911 11,041 58.4 Sandvik 06’ 72,289 14 12,068 27 16.7 +1.7 38 15 05’ 63,370 9,532 15.0 Ericsson 06’ 177,783 17 35,828
Slide 10: Good growth in value
Good growth in value Annual average total return Industrivärden A SIXRX Difference 1 year (2006) 29% 28% +1 %pts 5 years 16% 13% +3 %pts 10 years 18% 13% +5 %pts 62 years 15% 13% +2 %pts AN_Pres_KV406 Nr 10
Slide 11: Portfolio of quality companies
Portfolio of Professional First-rate methods quality organization and models companies Concentrated portfolio Proven value creation Own-developed work methods, provides focus over many years models and systems Depth of knowledge vouch for high quality Industry-leading companies provide fav
Slide 12: Transactions during 2006
Transactions during 2006 Net purchases Thousands SEK M Net sales Thousands SEK M Tandberg Television 5,793 737 Volvo B 448 190 Volvo A 529 225 SSAB A 743 72 Handelsbanken A 1,000 202 Övrigt 81 Other 300 Total 343 Total 2,217 AN_Pres_KV406 Nr 12
Slide 13: Divestment of Isaberg Rapid
Divestment of Isaberg Rapid Sale to Segulah in December 2006 – possession transferred in January 2007 Payment of approx. SEK 300 M for the shares – capital gain of nearly SEK 100 M The strategy to invest in Nordic listed companies is now established – fully transparent portfolio AN_Pres_KV406
Slide 14: Strong financial position
31 -d 0,0 1,0 2,0 3,0 4,0 5,0 6,0 7,0 31 ec - -m 00 AN_Pres_KV406 30 ar- 0 -j 1 30 un- Nr 14 -s 01 31 e p- -d 01 31 ec Net debt (SEK bn) -m -01 30 ar- 0 - 2 30 jun- -s 02 31 e p- -d 02 31 ec -m -02 30 ar- 0 -j 3 30 un- -s 03 31 e p- -d 03 31 ec - -m 03 30 ar- 0 -j 4 30 un- -s 04 31 e p- -d 04 30 ec
Slide 15: A portfolio of industry-leading companies
A portfolio of industry-leading companies Other Leading metal powder 4% or SEK 2.5 bn producer 1% or SEK 0.6 bn (2004) Leading player in complex World leader in construction projects Successful Nordic moisture control universal bank 7% or SEK 5 bn (1987) 2% or SEK 1 bn (2002) 22% or SEK 15 bn (1963)
Slide 16: High activity – good return 10 yrs
High activity – good return Övrigt; 3 Other; Dec 31, 2006 Höganäs; 1 Munters; 1 Dec 31, 1996 Indutrade; 2 Handelsbanken; 14 Other; Övrigt; 1 Skanska; 4 Other Övriga subsidiaries; dotterbolag; 3 Ericsson; 5 PLM; 1 SSAB; 1 SSAB; 7 Indutrade; 1 AGA; 3 Besam; 1 Skanska; 1 SCA; 3 Handelsbanken; Sandvik;
Slide 17: Favorable development of net asset value...
Favorable development of net asset value... SEK Kr/aktie SEK/share Mdkr M 80 350 321 303 70 298 300 283 60 250 250 50 204 200 189 40 160 156 30 150 150 126 114 20 100 10 50 0 -10 0 Aktieportföljen Portfolio Nettoskuld Net debt Substansvärde Net asset value CAGR, 10 years = 10% AN_Pres_KV406 Nr 17
Slide 18: ... and long-term excess returns
... and long-term excess returns The average annual excess return was: +3%-points/year for last five years +5%-points/year for last ten years Total return index (Index) (c) SIX AB 2007 541 500 Industrivärden stock 400 300 200 Total Return Index (SIXRX) 100 1997 1998 1999 2000 2001 2002 2003 2004 200
Slide 19: 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.waymake