Industrivarden Ab Class A · OMXSTO:INDU_A
Industrivarden Ab Class A — Q1 2003 Earnings Presentation
26 slides from Industrivarden Ab Class A's earnings presentation, May 5, 2003
Slide 1: Interim Report, Q1, 2003
Interim Report, Q1, 2003 Industrivärden, May 5, 2003 AN_Pres_KV103_eng No 1
Slide 2: Industrivärden – investment case
Industrivärden – investment case Value investor with a focus on investments in listed Nordic shares Proven track record - excess returns under a long period of time Portfolio of Swedish blue-chip companies Conservative gearing provides opportunity for increased leverage when market turns V
Slide 3: Industrivärden in brief
Industrivärden in brief Number of shares: 193 bn shares Market cap: USD 2.4 bn (SEK 19 bn) Free float: Appr. 60% of shares No of shareholders: 34.000 Average daily turnover: Appr. 180.000 shares Volatility: 30 (60 days) Coverage: Carnegie, Johan Sjöberg, +46 8 676 88 00 Enskilda Securi
Slide 4: 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 5: Two dimensional strategy
Two dimensional strategy Professional invest- ment operation Active ownership Generate high growth in net asset value over time AN_Pres_KV103_eng No 5
Slide 6: 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 7: 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 9 375 763 5 2 SCA 6 999 400 4 5 SCA Pension F
Slide 8: 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 1211 1000 Industrivärden Stock 800 600 400 Total Return Index (SIXRX) 200 100 1993 1994 1995 1996 1997 1998 1999 2000 2001 20
Slide 9: Turn around in development of net asset value
Turn around in development of net asset value Index 1300 1100 Development Jan.-April, 2003 900 +SEK 600 M 700 or +SEK 3/share 500 300 100 93 94 95 96 97 98 99 00 01 02 03 Total return for share Total Return Index Net asset value, incl. dividend payout AN_Pres_KV103_eng No 9
Slide 10: Recent activities
Recent activities A couple of very prosperous sales Realization of built-up value Improvement of our financial readiness Three strong moves Subscr. of our share in Ericsson’s new issue Acquisition of 16% of the orthopedics company Össur Acquisition of 11% of the moisture control company Mu
Slide 11: Transactions during the recent 18 months
Transactions during the recent 18 months Mkr 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 Meditec
Slide 12: Munters
Munters Global quality company in humidity control – high degree of servicerelated business Three product areas: Dehumidification, MCS (Moisture Control Services), and HumiCool (Evaporative cooling/humidification) Customers in non-cyclical sectors: e.g., insurance, food and pharmaceuticals Our
Slide 13: Munters
Munters Market cap SEK 4.2 bn Turnover SEK 4.7 bn Growth 20%, Earnings a. taxes SEK 266 M Return on cap. empl. 32% High market shares per business area Our holding: 11% of shares Market cap and holding as per 2003-04-30, others as per 2002-12-31 AN_Pres_KV103_eng No 13
Slide 14: Strong financial position
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% 11% 4,0 4,1 10% 9% 9% 3,2 8% 3,0 7% 2,2 2,4 6% 1,9 2,0 4% 1,0 *Parent company’s 2% interest-bearing net debt in relation to the market valued 0,0 0% equities portfolio. 30-
Slide 15: Composition of net asset value
Composition of net asset value SEK billion SEK per share Apr. 30 Mar. Dec. 31 Apr. 30 Mar. 31 Dec. 31 2003 31 2002 2003 2003 2002 2003 Equities portfolio 28.4 26.4 146 132 136 Net debt -3.4 25.5 -2.0 -17 -13 -10 -2.6 Net asset value 25.0 24.4 129 119 126 22.9 AN_Pres_KV103_eng No 15
Slide 16: Development of net asset value
Development of net asset value SEK bn 54,0 42,4 39,4 29,6 59,1 24,4 25 48,1 44,6 30,9 28,4 26,4 -5,1 -5,7 -5,2 -1,3 -2,0 -3,4 31 dec-00 30 jun-01 31 dec-01 30 jun-02 31 dec-02 30-apr-03 SEK/share 280 222 204 153 126 129 Equities portfolio Aktieportföljen Net debt Nettolåneskuld (varav räntebärande n
Slide 17: Development of net asset value
Development of net asset value Share of net asset value, % 298 283 204 126 119 SEK/share 100% 90% 80% 70% Övrigt Other 60% Sandvik 50% SCA 40% Handelsbanken Ericsson 30% 20% 10% 0% Dec 99 Dec 00 Dec 01 Dec 02 Mar 03 AN_Pres_KV103_eng No 17
Slide 18: Sector breakdown, equities portfolio
Sector breakdown, equities portfolio Health care (3%) Other (1%) Construction (5%) Össur o Ska Trading (6%) In Banking and nsk du tra Handelsbanken insurance (27%) th. a de Skandia Telecom (11%) Ericss on Sandvik SSAB SCA Isaberg Rapid Forestry Munters and consumer others Engineering (27%) products
Slide 19: Equities portfolio as per March 31, 2003
Equities portfolio as per March 31, 2003 % of % of Market value portfolio capital % of votes Stock No. shares SEK M SEK/share value In In company company Handelsbanke 50,655,900 6,053 31 24 7.1 7.7 nA SCA A 16,982,000 5,078 26 20 8.1 28.1 SCA B 2,000,000 Sandvik 21,000,000 4,011 21 16 8.0 8.0 Ericss
Slide 20: Equities portfolio as per March 31 and April 30
Equities portfolio as per March 31 and April 30 March 31, 2003 Total return,Average % annual total return, % April 30, 2003 Market- Period, 5 yrs., 10 yrs., Market- Stock value, SEK MJan 03-Mar 03 Dec 97-Mar 03 No. shares Dec 92-Mar 03 No. sharesvalue, SEK M Handelsbanke 50.655.90 6 053 3 9 35 51.65
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 External Purchase contacts Database Network Analysis Decision Manage- In-depth ment analysis team AN_Pres_KV103_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 4,200 billion (March ’03) Continuous Structured Continuous analysis of Ability for quick scanning of all monitoring of selected companies entries companies all interesting that meet in
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: Good growth over time
Good growth over time Annual excess return (change in value, dividends incl.) for the Industrivärden shares compared with Total Return Index (SIXRX) +4 %pts annually in 10 yrs +6 %pts annually in 7 yrs +3 %pts annually in 5 yrs +6 %pts 3 yrs 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003/04/
Slide 26: 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