Industrivarden Ab Class A · OMXSTO:INDU_A
Industrivarden Ab Class A — Q1 2008 Earnings Presentation
15 slides from Industrivarden Ab Class A's earnings presentation, May 5, 2008
Slide 1: A long-term industrial developer of listed companies
”A long-term industrial developer of listed companies” Interim Report, January - March Industrivärden, May 5, 2008 AN_Pres_KV108 Nr 1
Slide 2: Company in brief
Company in brief Established: 1944 Stock: 386 million shares, listed on SSEX Market cap: Approx. USD 6.5 bn (SEK 39 bn) Free float: Approx. 40% of shares No. shareholders: 42,000 Average daily trading vol.: Approx. 280,000 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 Sectors: Se
Slide 4: 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 5: First quarter 2008 in summary
First quarter 2008 in summary The stocks total return well above the return index SSAB is divesting IPSCOs tubes division – improved debt situation Active ownership: Continued high activity in the portfolio holdings AN_Pres_KV108 Nr 5
Slide 6: The reporting period in summary
The reporting period in summary 2008 2008 2007 Equities Portfolio April 30 March 31 Dec. 31 – market value, SEK M 59,296 59,270 65,844 Transactions – acquisitions, SEK M 913 601 8,834 SEK per share – sales, SEK M 869 558 2,124 April xx March 31 Dec. 31 – net, SEK M 44 43 6,710 2008 2008 2007 Equitie
Slide 7: Financial position
31 -m 0,0 2,0 4,0 6,0 8,0 10,0 12,0 30 ar- - 0 AN_Pres_KV108 30 jun 1 -s - 0 31 e p 1 Nr 7 -d -0 31 ec 1 -m -01 30 ar- - 0 Net debt (SEK bn) 30 jun 2 -s - 0 31 e p 2 -d -0 31 ec 2 -m -02 30 ar- - 0 30 jun 3 -s - 0 31 e p 3 -d -0 31 ec 3 -m -03 30 ar- - 0 30 jun 4 -s - 0 31 e p 4 -d -0 Financial posi
Slide 8: Industrivärden's dividend
Industrivärden’s dividend 6 7% 6% 5 4.4% 5% 4 Bonusutdelning Bonus dividend 4% Ordinary utdelning Ordinarie dividend 3 4.0% SSEX dividend yield Direktavkastning börsen 3% Dividend yield Direktavkastning 2 2% 1 1% 0 0% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Dividend: 2.25 3.10 4.20 4.18 2.
Slide 9: Development of portfolio companies
Development of portfolio companies 1Q:2008 Op. income Δ, % Earn./share Δ, %PE-ratio Operating margin, % Δ, %pts Totalavk., % Mkr Kr (12 mths) 12 mths 98-08/yr Sandvik 08’ 3,190 -10 1.59 -18 12 14.5 -2.8 -13 13 07’ 3,538 1.95 17.3 SHB 08’ 2,919 -21 3.61 -16 10 48.2 -8.7 -13 7 07’ 3,714 4.26 56.9 SSAB
Slide 10: Active ownership – strategic activities 07/08
Active ownership – strategic activities 07/08 Handelsbanken SSAB SPP sold for capital gain of approx. SEK 4 bn Acquisition of IPSCO forSEK 50 bn Greater focus on organic growth outside Sweden increases capacity for niche products SEK 10 bn rights issue Sandvik Ericsson Several strategic ac
Slide 11: A portfolio of industry-leading companies
A portfolio of industry-leading companies Leading metal powder producer Leading player in complex 1% or SEK 0.5 bn (2004) construction projects 6% or SEK 3 bn (1987) World leader in Leading high-tech company Leading producer of moisture control in materials technology heavy vehicles 1% or SEK 0.7 bn
Slide 12: Equities portfolio as per April 30, 2008
Equities portfolio as per April 30, 2008 Value % of % of % of votes distribution portfolio capital in in Stock No. shares SEK M SEK/share value company company Sandvik 136,431,200 12,586 33 21 11.5 11.5 Handelsbanken A 68,285,000 11,839 30 19 10.9 11.1 Handelsbanken B 118,900 SSAB A 56,265,243 11,27
Slide 13: 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 2008 415 Industrivärden share 350 300 250 200 150 Total Return Index (SIXRX) 100 97 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 08 As per April 30, 2008
Slide 14: 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 15: 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