Industrivarden AB Class A · OMXSTO:INDU_A
Industrivarden AB Class A — 9M 2007 Earnings Presentation
19 slides from Industrivarden AB Class A's earnings presentation, Oct 31, 2007
Slide 1: A long-term industrial developer of listed companies
”A long-term industrial developer of listed companies” Interim Report, January 1- September 30, 2007 Industrivärden, October 31, 2007 AN_Pres_KV307 Nr 1
Slide 2: Company in brief
Company in brief Established: 1944 Stock: 386 million shares, listed on SSEX Market cap: Approx. USD 8.2 bn (SEK 52 bn) Free float: Approx. 40% of shares No. shareholders: 40,000 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: 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_KV307 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: First ten months 2007 in summary
First ten months 2007 in summary Net asset value increased by SEK 2,661 M, or 5%, and was SEK 61,172 M on October 29, 2007 Net asset value per share increased by SEK 7 M to SEK 158 as per October 29, 2007 The total return was 5% for the Class A shares as well as for the Class C shares, compare
Slide 7: Transactions during first nine months 2007
Transactions during first nine months 2007 Net purchases Thousands SEK M Net sales Thousands SEK M Volvo A 31,367 4,216 Tandberg TV (entire holding)1 5,963 728 SSAB A1 14,597 2,489 Sandvik redemption shares 134,700 404 Sandvik 6,431 768 Isaberg Rapid 200 Other 672 Other 182 Total 8,145 Total 1,514 1
Slide 8: Development of portfolio companies
Development of portfolio companies Total return, % 9M: 2007 Net sales Δ, % Op. income Δ, % Margin % Δ % pts 9m:07 Ten yrs., annually Sandvik 07’ 63,627 +20 11,194 +29 17.6 +1.2 46 15 06’ 52,919 8,703 16.4 SHB 07’ 20,510 +8 11,631 +10 56.7 +0.8 0 12 (excl SPP) 06’ 18,951 10,589 55.9 SSAB 07’ 31,565 +
Slide 9: Good growth in value
Good growth in value Annual average total return as per October 29, 2007 Industrivärden A SIXRX Difference January – July 2007 5% 6% -1 %pts 5 years 31% 25% +6 %pts 10 years 13% 11% +2 %pts 62 years 15% 13% +2 %pts AN_Pres_KV307 Nr 9
Slide 10: 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 11: Favorable development of net asset value...
Favorable development of net asset value... SEK M Kr/aktie SEK/share Mdkr 90 200 173 80 180 149 151 158 70 160 142 60 140 125 50 120 102 40 95 100 78 30 80 80 75 63 20 60 10 0 40 -10 20 -20 0 Portfolio Aktieportföljen Net debt Nettoskuld Substansvärde Net asset value Average growth, reinvested divid
Slide 12: ... and long-term excess returns
... and long-term excess returns The average annual excess return was: +6%-points/year for last five years +2%-points/year for last ten years Total return index (Index) (c) SIX AB 2007 392 350 Industrivärden share 300 250 200 150 Total Return Index (SIXRX) 100 97 1998 1999 2000 2001 2002 2003 2004 2
Slide 13: High activity – good return
High activity – good return Sep 30, 2006 Höganäs; 1 Munters; 1 Dec 31, 1996 Indutrade; 2 Other; 0 Övrigt; 0 Skanska; 4 Other; Övrigt; 1 Sandvik; 19 Other Övriga Volvo; 5 subsidiaries; dotterbolag; 3 Ericsson; 5 PLM; 1 SCA; 9 SSAB; 1 Indutrade; 1 AGA; 3 Besam; 1 Handelsbanken; 14 Ericsson; 10 Skanska
Slide 14: Major transactions in recent time
Major transactions in recent time SEK M Date Transaction Holding Sector Average Price Result price Apr. 02 Sale Lundbeck Pharmaceuticals - 2,400 1,500 Apr. 02 Sale Besam Door automation - 3,050 2,300 Nov/Dec 03 Sale Skandia Fin. services - 1,250 -1,510 Oct 05 IPO/Sale Indutrade Technical trading - 1
Slide 15: A portfolio of industry-leading companies
A portfolio of industry-leading companies Leading metal powder producer Leading player in complex 1% or SEK 0.7 bn (2004) construction projects 6% or SEK 4 bn (1987) World leader in Leading producer of Leading high-tech company moisture control heavy vehicles in materials technology 2% or SEK 1 bn (
Slide 16: Equities portfolio as per October 29, 2007
Equities portfolio as per October 29, 2007 Value % of % of % of votes distribution portfolio capital in in Stock No. shares SEK M SEK/share value company company Sandvik 136,431,200 16,781 43 23 11.5 11.5 Handelsbanken A 68,285,000 14,262 37 20 10.9 11.1 Handelsbanken B 118,900 SSAB A 56,430,243 12,
Slide 17: Financial position
Financial position SEK 11.0 bn Net debt (SEK bn) Net debt equity ratio 12,0 20% 15.2% 18% 10,0 16% 14% 8,0 12% 6,0 10% 8% 4,0 6% 4% 2,0 2% 0,0 0% 0 1 1 1 1 2 2 2 2 3 3 3 3 4 4 4 4 5 5 5 5 6 6 6 6 7 7 c -0 r- 0 n- 0 p-0 c-0 r- 0 n- 0 p-0 c-0 r- 0 n- 0 p-0 c-0 r- 0 n- 0 p-0 c-0 r- 0 n- 0 p-0 c-0 r- 0
Slide 18: Industrivärden's dividend
Industrivärden’s dividend 5 7% 5 6% 4 4 5% 3 Bonusutdelning Bonus dividend 4% 3.3% Ordinary utdelning Ordinarie dividend 3 SSEX dividend yield Direktavkastning börsen 3% Dividend yield Direktavkastning 2 3.0% 2 2% 1 1% 1 0 0% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Dividend: 1.88 2.25 3.10
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