Industrivarden AB Class A · OMXSTO:INDU_A
Industrivarden AB Class A — Q1 2007 Earnings Presentation
20 slides from Industrivarden AB Class A's earnings presentation, May 3, 2007
Slide 1: A long-term industrial developer of listed companies
”A long-term industrial developer of listed companies” Interim Report, January 1- March 31, 2007 Industrivärden, May 3, 2007 AN_Pres_KV107 Nr 1
Slide 2: 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 3: 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_KV107 Nr 3
Slide 4: 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 5: Ownership structure
Ownership structure capital, % votes, % Lundbergföretagen 11 14 AMF Pension 10 3 SCA Pension Foundations 9 12 SHB Pension Foundation 7 9 SHB Pension Fund 7 9 Wallander & Hedelius Foundation 6 8 SCA Pension Foundation 9 12 Oktogonen 3 4 SCA 2 3 Svenska Handelsbanken 2 2 Other shareholders 43 36 Total
Slide 6: First four months 2007 in summary
First four months 2007 in summary Net asset value increased by SEK 7,626 M, or 13%, and was SEK 66,137 M on April 30, 2007. Net asset value per share increased by SEK 20 M to SEK 171as per April 30, 2007. The total return was 16% for the Class A shares and 18% for the Class C shares, compared
Slide 7: Transactions the first quarter 2007
Transactions the first quarter 2007 Net purchases Thousands SEK M Net sales Thousands SEK M Sandvik 4,700 545 Tandberg TV (entire holding)1 5,963 728 Volvo A 613 367 Isaberg Rapid 200 SSAB A 956 223 Total 928 Other 132 Total 1,267 1 The entire holding in Tandberg TV was sold to Ericsson based on a p
Slide 8: Development of portfolio companies
Development of portfolio companies Total return, % 1 Q 2007 Net sales Δ, % Op. income Δ, % Margin % Δ % pts 1 Q 07 Ten yrs., annually Sandvik 07’ 20,409 +17 3,538 +24 17.3 +1.0 25 17 06’ 17,481 2,853 16.3 SHB 07’ 6,913 -16 3,859 -23 55.8 -5.5 0 14 06’ 8,189 5,016 61.3 Ericsson 07’ 42,156 +7 8,151 +2
Slide 9: Good growth in value
Good growth in value Annual average total return as per April 30, 2007 Industrivärden A SIXRX Difference January – April 2007 16% 14% +2 %pts 5 years 21% 18% +3 %pts 10 years 17% 13% +4 %pts 20 years 15% 14% +1 %pts 62 years 15% 13% +2 %pts AN_Pres_KV107 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 180 171 80 169 70 160 149 151 142 60 140 125 50 120 102 40 95 100 30 80 78 80 75 63 20 60 10 40 0 -10 20 -20 0 Portfolio Aktieportföljen Net debt Nettoskuld Substansvärde Net asset value CAGR, 10 years = 11% AN_Pres_KV107 Nr 1
Slide 12: ... and long-term excess returns
... and long-term excess returns The average annual excess return was: +3%-points/year for last five years +4%-points/year for last ten years Total return index (Index) (c) SIX AB 2007 500 450 Industrivärden share 400 350 300 250 200 150 Total Return Index (SIXRX) 100 1997 1998 1999 2000 2001 2002 2
Slide 13: High activity – good return 10 yrs
High activity – good return Höganäs; 1 March 31, 2006 Munters; 1 Volvo; 2 Dec 31, 1996 Indutrade; 2 Other; 00 Övrigt; Other; Övrigt; 1 Skanska; 5 Sandvik; 17 Other Övriga subsidiaries; dotterbolag; 3 Ericsson; 5 PLM; 1 SSAB; 1 SCA; 9 Indutrade; 1 AGA; 3 Besam; 1 Skanska; 1 SCA; 3 Handelsbanken; 3 SS
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 Other Leading metal powder 4% or SEK 3 bn producer 1% or SEK 0.7 bn (2004) Leading player in complex World leader in construction projects Leading high-tech company moisture control in materials technology 7% or SEK 5 bn (1987) 2% or SEK 1 bn (2002) 24% or S
Slide 16: Equities portfolio as per April 30, 2007
Equities portfolio as per April 30, 2007 Value % of % of % of votes distribution portfolio capital in in Stock No. shares SEK M SEK/share value company company Sandvik 134,700,000 17,477 45 24 11.4 11.4 Handelsbanken A 68,270,000 14,088 36 19 10.5 10.7 Handelsbanken B 118,900 SSAB A 42,789,209 10,30
Slide 17: Strong financial position
Strong financial position Net debt (SEK bn) Net debt equity ratio 7,0 20% SEK 6.1 bn 18% 6,0 16% 5,0 14% 12% 4,0 10% 8.4% 3,0 8% 2,0 6% 4% 1,0 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-
Slide 18: Industrivärden's dividend
Industrivärden’s dividend 10 7% 9 6% 8 7 5% 6 Bonusutdelning Bonus dividend 4% 3.3% Ordinary utdelning Ordinarie dividend 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 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
Slide 20: Changed tax situation 2005/2006
Changed tax situation 2005/2006 Since September 2004, all active holdings are classified as business-related shares (i e share of votes more than 10%). (Corresponds to 97% of portfolio value) Holdings that are not included in base for standard income assumption: - Approx. 50% of portfolio value