Industrivarden Ab Class A · OMXSTO:INDU_A
Industrivarden Ab Class A — Q1 2002 Earnings Presentation
28 slides from Industrivarden Ab Class A's earnings presentation, May 2, 2002
Slide 1: Interim Report Q1, 2002
Interim Report Q1, 2002 Industrivärden, May 2, 2002 AN_Pres_KV102_eng
Slide 2: Industrivärden – an overview
Industrivärden – an overview One of the Nordic regions largest holding companies, est. 1944 Industrivärden’s business mission is to create shareholder value based on a professional investment operation and active ownership Historically very strong generation of value. Industrivärden’s stock ha
Slide 3: Industrivärden – investment case
Industrivärden – investment case Good track-record in creating shareholder value Long-term approach and financial resources Great freedom to act in investment operations Competent organization Experienced board representatives in the holdings Strong brand Valuable contact network with
Slide 4: Our goal
Our goal To generate high growth in net asset value over time. Industrivärden's stock will give shareholders a high total return. AN_Pres_KV102_eng
Slide 5: The shares total return vs. Total Return Index (SIXRX)
The shares total return vs. Total Return Index (SIXRX) +1%pts. annual excess return 10 yrs. +6 %pts. annual excess return 5 yrs. +9 %pts. annual excess return 3 yrs. +9 %pts. Annual excess return 2 yrs. 1992 1997 1998 1999 2000 2001 2002 Average annual total return for the respective periods through
Slide 6: The Industrivärden share
The Industrivärden share < norm (52, INDU-A (Senast)) Dag < norm (52, AFGX (Köp)) Dag (c) SIX AB 2002 260 % during 01 02 200 Indu-A -20 -15 150 AFGX -17 -12 100 50.4 1996 1997 1998 1999 2000 2001 02 As per 02/4/30 AN_Pres_KV102_eng
Slide 7: Highlights 2002
Highlights 2002 Sale of entire holding in Lundbeck - Sales price: SEK 2.4 billion - Capital gain: Approx. SEK 1.5 billion Agreement on the sale of the wholly owned door automation company Besam - Sales price: Approx. SEK 3.1 billion - Capital gain: Approx. SEK 2.3 billion AN_Pres_KV102_eng
Slide 8: Composition of net asset value
Composition of net asset value SEK billion SEK per share Apr. 30 Dec. 31 Apr. 30 Dec. 31 2002 2001 2002 2001 Listed portfolio 32.6 40.5 169 210 Industrial and trading operations and other unlisted holdings 4.9* 4.1 25* 21 Total stock portfolio 37.5 44.6 194 231 Other assets and liabilities -4.2 -5.2
Slide 9: Trend of net asset value
Trend of net asset value SEK bn 4,2 54,1 4,2 4,8 40,9 42,4 39,4 4,1 4,1 37,2 3,8 4,9 31,8 33,3 55,0 43,9 40,8 40,5 38,1 34,5 32,6 -5,1 -4,7 -5,7 -6,5 -5,2 -5,0 -4,2 31 dec-00 31 mar-01 30 jun-01 30 sep-01 31 dec-02 31 mar-02 30-apr-02 SEK/share 193 172 Listed portfolio Wholly owned and other Other a
Slide 10: Trend of net asset value
de c- 19 100 150 200 250 300 350 400 0 50 ju 95 AN_Pres_KV102_eng As per 02/4/30 n- 19 de 96 SEK/share c- 19 ju 96 Net asset value n- 19 de 97 c- 19 ju 97 n- 19 de 98 c- 19 Share price ju 98 n- 19 de 99 c- 19 ju 99 n- 20 de 00 c- 20 Trend of net asset value ju 00 n- 20 de 01 c- 20 01
Slide 11: Development of net asset value II
Development of net asset value II Percentage of net asset value 298 283 214 222 166 204 172 SEK/share 9% 7% 10% 11% 14% 14% 20% 27% 27% 23% 38% 28% 15% 46% 63% 62% 63% 65% 55% 58% 45% Dec 1999 Dec 2000 Mar 2001 Jun 2001 Sep 2001 Dec 2001 Apr 2002 SCA Ericsson Other holdings AN_Pres_KV102_eng
Slide 12: Portfolio contribution analysis for 2002
Portfolio contribution analysis for 2002 SEK M SCA 1215 Sandvik 290 Skanska 130 Lundbeck 98 SHB 82 H&M -3 Nokia -53 Pfizer -136 Skandia -1 301 Ericsson -6 016 Adjusted for purchases and sales 01/12/31 – 02/4/30. AN_Pres_KV102_eng
Slide 13: Listed portfolio as per March 31, 2002
Listed portfolio as per March 31, 2002 Market value Share of Share of Share of SEK M SEK/share portfolio, % capital, % votes, % Ericsson 8,483 44 22 2 28 Handelsbanken 7,225 37 19 7 7 SCA 6,131 32 16 8 27 Sandvik 5,177 27 13 8 8 Skandia 2,512 13 7 5 5 Skanska 2,208 11 6 7 31 Lundbeck A/S 2,204 11 6
Slide 14: Sector breakdown, equities portfolio
Sector breakdown, equities portfolio Other Construction Banking and 5% 5% insurance Pharmaceuticals 23% 8% Forestry- and consumer 15% products 23% 21% Engineering Telecom As per 02/3/31 AN_Pres_KV102_eng
Slide 15: Listed portfolio as per April 30, 2002
Listed portfolio as per April 30, 2002 Market value % of port- Price change 2002, % SEK M SEK per share folio val. April 1-April 30 Jan. 1-April 30 Handelsbanken 7,566 39 23 5 1 SCA 6,591 34 20 7 23 Ericsson 5,025 26 16 -41 -55 Sandvik 4,998 26 16 -3 6 Skandia 2,335 12 7 -7 -36 Skanska 2,066 11 6 -6
Slide 16: Interim Report, Jan.-Mar. 2002
Interim Report, Jan.-Mar. 2002 Industrivärden's stock Total Return as per April 30, 2002: -10%, Total Return Index -10% Price trend as per April 30, 2002: -15%, General Index -12% Net asset value At April 30, 2002: SEK 172 per share Change since start of year: -16% At March 31, 2002: SEK 193 per
Slide 17: Vision
Vision To be perceived as the leading holding company with a focus on large and medium-sized listed Nordic companies Public sector Nordic companies Expansion Management Restructuring Startup phase phase phase phase Private equity investor in Venture capitalists mature companies AN_Pres_KV102_eng
Slide 18: A changed environment
A changed environment Number of listed comp. Total market value Annual trading volume (SEK bn) (SEK bn) 3 994 2 856 103 305 57 8 1980 2001 1980 2001 1980 2001 34 % Foreign ownership 4% 15 % 25 % Share of mutual funds 1980 2001 AN_Pres_KV102_eng
Slide 19: Greater demands on holding companies
Greater demands on holding companies Growth in number and value of mutual funds Increased ownership activity Formalized corporate governance Must be better owners with greater clarity of purpose Increased number of investment opportunities with similar risk- and value profiles Increased comp
Slide 20: Adaptation of strategy and work method
Adaptation of strategy and work method More active ownership role – structured value creation A professional investment operation Focus on Nordic companies with potential for value growth Increased portfolio activity Changed organization – investment teams Expanded network AN_Pres_KV102_
Slide 21: A strategy built on three cornerstones
A strategy built on three cornerstones A professional invest- Confidence-based ment operation active ownership To generate high growth in net asset value over time A project oriented investment organization AN_Pres_KV102_eng
Slide 22: Investment criterias
Investment criterias Conditions Portfolio Sectors: Sector generalist Scope: Concentrated portfolio Ownership structure: Possibility to be major Individual investments or largest owner Market value: Large and medium- Investment sized companies horizon: 3-8 yrs Type: Mainly listed Geography: Nordic co
Slide 23: Building on our strengths
Building on our strengths Long-term approach and financial resources Competent organization Strong brand Experienced directors on the holding companies’ boards Good track record in creating shareholder value Valuable contact network with local ties AN_Pres_KV102_eng
Slide 24: A professional investment operation
A professional investment operation Investment teams Investment agendas Structured processes AN_Pres_KV102_eng
Slide 25: Confidence-based active ownership
Confidence-based active ownership Investment teams Investment agendas Structured processes Processes for ensuring influence A partner for company management Strong formal base to work from AN_Pres_KV102_eng
Slide 26: A project oriented investment organization
A project oriented investment organization Expertise and experience Flexibility and speed Project-based corporate culture – ”partnership model” Locally rooted network Performance related incentives AN_Pres_KV102_eng
Slide 27: A competitive value proposition
A competitive value proposition To generate high growth in net asset value over time Access to steady flow of value-creating deals Risk diversification Will give shareholders a high total return on the stock AN_Pres_KV102_eng
Slide 28: Industrivärden online
Industrivärden online Reuterskod INDUa.ST Bloombergskod INDUA SS Datastream kod W :IU www.industrivarden.se [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 /