Industrivarden Ab Class A · OMXSTO:INDU_A

Industrivarden Ab Class A — Q3 2009 Earnings Presentation

17 slides from Industrivarden Ab Class A's earnings presentation, Nov 2, 2009

  1. Slide 1: Long-term industrial developer of listed Nordic companies

    “Long-term industrial developer of listed Nordic companies” 3Q:2009 Interim Report Industrivärden, November 2, 2009 AN_Pres_KV309 Nr 1

  2. Slide 2: Company in brief

    Company in brief  Established: 1944  Stock: Listed on NASDAQ OMX Nordic, Stockholm  Market cap: Approx. EUR 3 bn (SEK 32 bn)  Free float: Approx. 40% of shares  No. shareholders: 48,000  Average daily trading vol.: Approx. 250,000 Class A-shares 440,000 Class C-shares  Coverage (selection): H

  3. Slide 3: Long-term industrial developer of listed Nordic companies

    – Long-term industrial developer of listed Nordic companies Ericsson Volvo SSAB Sandvik Skanska SCA AN_Pres_KV309 Nr 3

  4. Slide 4: Strong base for value creation

    Strong base for value creation Our competitive advantages Our portfolio Holding Market value, Portfolio Share of SEK bn share, % votes, % Long-term active ownership Handelsbanken 11.8 23 10.3 Sandvik 10.9 21 11.4 Blue-chip portfolio SCA 7.0 13 29.9 SSAB 5.7 11 20.4 Ericsson 5.7 11 13.5 Volvo 4.7 9 8

  5. Slide 5: Focused strategy

    Focused strategy Strong value potential and long-term perspective Portfolio Conditions Sectors: Sector generalist Scope: Concentrated portfolio – focus Business models: Geographically scalable Individual investments Market value: Large and midcap Cash generation: Good ability companies Ownership Maj

  6. Slide 6: Stock market performance 2009

    Stock market performance 2009 Total Return Industrivärden +60% 160 140 Index (SIXRX) +50% 120 100 Jan Feb Mar Apr May Jun Jul Aug Sep Oct (c) SIX AB 2009 AN_Pres_KV309 Nr 6

  7. Slide 7: Long-term value creation

    100 120 140 160 180 200 20 40 60 80 0 1989-12-31 32 SEK/share 1990-12-31 AN_Pres_KV209 Nr 7 1991-12-31 1992-12-31 23 1993-12-31 1994-12-31 (incl. reinvested dividends) 1995-12-31 Development of net asset value +9% annually during 1996-12-31 the last 20 years period 1997-12-31 1998-12-31 1999-12-31 1

  8. Slide 8: First ten months 2009 in brief

    First ten months 2009 in brief Financial development  Net asset value SEK 41.5 bn or SEK 107/share  an increase of SEK 17.6 bn, or 82% for YTD  Total return of 60% for the Class A shares  10%-pts better than the return index  Net debt was SEK 10.6 bn  a decrease of SEK 0.2 bn for YTD AN_Pres_K

  9. Slide 9: Sharp increase in net asset value

    Sharp increase in net asset value SEK 41,5 bn as per October 30, 2009 Sandvik +4 bn Handelsbanken +4 bn +18 bn SSAB +2 bn SCA +2 bn +82% Others +6 bn SEK 24 bn as per December 31, 2008 AN_Pres_KV209 Nr 9

  10. Slide 10: Net asset value

    Net asset value SEK billion SEK per share Oct. 30 Sept. 30 Dec. 31 Oct. 30 Sept. 30 Dec. 31 2009 2009 2008 2009 2009 2008 Equities portfolio 52.1 49.6 34.7 135 128 90 Net debt -10.6 -10.7 -10.8 -27 -27 -28 Net asset value 41.5 38.9 23.9 107 101 62 Debt-equity ratio 20% 22% 31% AN_Pres_KV209 Nr 10

  11. Slide 11: Why invest in Industrvärden?

    Why invest in Industrvärden? The average annual excess return for last ten years was 1%-pt/year Total Return (Index) (c) SIX AB 2009 287 250 200 Industrivärden 150 Return Index (SIXRX) 100 99 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 As per October 30, 2009 AN_Pres_KV209 Nr 11

  12. Slide 12: Active ownership in brief

    Active ownership in brief Focus on value enhancement drivers: strategy, development and positioning Board Company, competitors and industry participation Analyst presentations Megatrends Nominating In-depth committee analysis Company visits participation Value creation Ownership Database monitoring

  13. Slide 13: Active ownership in practice

    Active ownership in practice Handelsbanken SSAB  Well proven work model – stronger position in a tough market  Acquisition of IPSCO for SEK 50 bn  Greater focus on organic growth outside Sweden increases capacity for niche products  New Chairman of the Board installed  Divesture of IPSCO’s tubu

  14. Slide 14: Our portfolio of blue-chip companies

    Our portfolio of blue-chip companies 11.8 10.9 7.0 5.7 A decentralized branch operation with Through a niche focus and strong World-leading position in the niche local customer responsibility has position in R&D, the company has built The leading European manufacturer of segment of quenched steels a

  15. Slide 15: Strong financial position

    Strong financial position Interest bearing net debt (SEK bn) Net debt-equity ratio 15,0 35% SEK 10.6 bn 13,0 30% 11,0 25% 20% 9,0 20% 7,0 15% 5,0 Oct. 30 Sept. 30 Dec. 31 10% SEK bn 2009 2009 3,0 2008 1,0 5% Listed stocks 52 50 35 -1,0 1 1 01 02 2 2 02 03 3 3 03 04 4 4 04 05 5 5 05 06 6 6 06 7 07 08

  16. Slide 16: High dividend yield

    High dividend yield 6 9% 7.9% 8% 5 7% 4 6% Bonusutdelning Bonus dividend 4.5% 5% Ordinaryutdelning Ordinarie dividend 3 SSEX dividend börsen Direktavkastning yield 4% Dividend yield Direktavkastning 2 3% 2% 1 1% 0 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Dividend: 3.10 4.20 4.18 2.90 2.7

  17. Slide 17: 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 AN_Pres_KV309 Nr 17

Industrivärden — Q3 2009 Earnings Presentation on 6ix