Industrivarden Ab Class A · OMXSTO:INDU_A
Industrivarden Ab Class A — Q1 2010 Earnings Presentation
16 slides from Industrivarden Ab Class A's earnings presentation, Apr 8, 2010
Slide 1: Long-term industrial developer of listed Nordic companies
“Long-term industrial developer of listed Nordic companies” First three months 2010 Industrivärden, April 8, 2010 AN_Pres_KV110 Nr 1
Slide 2: Company in brief
Company in brief Established: 1944 Stock: Listed on NASDAQ OMX Nordic, Stockholm Market cap: Approx. EUR 4 bn (SEK 38 bn) Free float: Approx. 40% of shares Rating: S&P; A/stable/A-1 No. shareholders: 50,000 Average daily trading vol.: Approx. 210,000 Class A-shares 570,000 Class C-shar
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_KV110 Nr 3
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, % Handelsbanken 13.5 23 10.4 Long-term Sandvik 12.5 21 11.6 active ownership SCA 7.3 12 29.3 Blue-chip portfolio SSAB 6.9 12 21.3 Ericsson 5.7 10 13.6 Volvo 5.1 9 8
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
Slide 6: Long-term value creation
0 100 120 140 160 180 200 20 40 60 80 1989-12-31 32 AN_Pres_KV110 1990-12-31 SEK/share Nr 6 1991-12-31 1992-12-31 23 1993-12-31 1994-12-31 1995-12-31 (incl. reinvested dividends) 1996-12-31 Development of net asset value +10% annually during 1997-12-31 the last 20 years period 1998-12-31 1999-12-31
Slide 7: 3M:2010 in brief
3M:2010 in brief Financial development Net asset value SEK 47.5 bn or SEK 123/share an increase of SEK 4.7 bn, or 11% for YTD Total return of 10% for the Class A shares and 12% for the Class C shares 1%-pt and 3%-pts better than the return index respectively AN_Pres_KV110 Nr 7
Slide 8: Sharp increase in net asset value
Sharp increase in net asset value SEK 48 bn as per March 31, 2010 Ericsson +0,8 bn Volvo +0,7 bn +4.7 bn Sandvik +0,6 bn SCA +0,5 bn +11%* Others +2,1 bn SEK 24 bn as per December 31, 2008 *Incl. reinvested dividends. AN_Pres_KV110 Nr 8
Slide 9: Net asset value
Net asset value SEK billion SEK per share March 31 Dec. 31 Dec. 31 March 31 Dec. 31 Dec. 31 2010 2009 2008 2010 2009 2008 Equities portfolio 58,6 53.5 34.7 152 139 90 Net debt -28 -28 -11.2 -10.8 -10.8 -29 Net asset value 47.5 42.8 23.9 123 111 62 Debt-equity ratio Debt-equity ratio 19% 20% 31% afte
Slide 10: Why invest in Industrivärden?
Why invest in Industrivärden? The average annual excess return for last ten years was 1%-pt/year Total Return (Index) (c) SIX AB 2010 235 180 Industrivärden 140 100 Return Index 60 40 99 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 10 As per April 8, 2010 AN_Pres_KV110 Nr 10
Slide 11: 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
Slide 12: Active ownership in practice
Active ownership in practice Handelsbanken SSAB New market-oriented organization. Consistently applied business model. Cost-cutting program has had faster impact Organic growth in home markets in the Nordic than planned. countries and the UK. Acquisition of IPSCO’s North American steel S
Slide 13: Our portfolio of blue-chip companies
Our portfolio of blue-chip companies 13.5 12.5 7.3 6.9 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
Slide 14: Strong financial position
Strong financial position Interest bearing net debt (SEK bn) Net debt-equity ratio 15,0 35% SEK 11.2 bn 13,0 30% 11,0 25% 19% 9,0 20% 7,0 15% 5,0 March 31 Dec 31 Dec. 31 10% SEK bn 2010 2009 3,0 2008 1,0 5% Listed stocks 59 54 35 -1,0 01 01 01 02 02 02 02 03 03 03 03 04 04 04 04 05 05 05 05 06 06 06
Slide 15: High dividend yield
High dividend yield 6 9% 8% 5 7% 4 6% Bonusutdelning Bonus dividend 5% Ordinarie Ordinaryutdelning dividend 3 3.4% Direktavkastning SSEX dividend börsen yield 4% Dividend yield Direktavkastning 2 3% (2.8%) 2% 1 1% 0 0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Dividend: 4.20 4.18 2.90 2.75 3
Slide 16: Industrivärden online
Industrivärden online Reuters code INDUa.ST Bloomberg code INDUA SS www.industrivarden.net [email protected] +46-8-666 64 00 +46-8-661 46 28 Box 5403, SE-114 84 Stockholm, Sweden AN_Pres_KV110 Nr 16