Presentation on theme: "Pres_KV310 Nr 1 First nine months 2010 Industrivärden, October 5, 2010 “Long-term industrial developer of listed Nordic companies”"— Presentation transcript:
Pres_KV310 Nr 1 First nine months 2010 Industrivärden, October 5, 2010 “Long-term industrial developer of listed Nordic companies”
Pres_KV310 Nr 2 – Long-term industrial developer of listed Nordic companies Ericsson Volvo Sandvik SSAB Skanska SCA
Pres_KV310 Nr 3 Strong base for value creation Our competitive advantages Our portfolio HoldingMarket value,PortfolioShare of SEK bnshare, %votes, % Sandvik14.52311.8 Handelsbanken14.02210.3 Volvo8.01310.4 SCA7.31129.5 SSAB6.11022.6 Ericsson5.5913.6 Skanska3.8627.6 Indutrade2.7436.8 Munters0.8114.6 Höganäs0.818.1 Total AUM63.5100 A strong, competitive long-term track record with limited risk As per September 30, 2010 Blue-chip portfolio Long-term active ownership Leveraged influence Extensive structural capital Our rating Standard & Poors: A/stable/A–1
Pres_KV310 Nr 4 Focused strategy Conditions Sectors:Sector generalist Business models:Geographically scalable Cash generation:Good ability OwnershipMajor owner with board representation Evaluation horizon:5-8 years Requirement:Strong potential for value creation Individual investments Portfolio Scope:Concentrated portfolio – focus Market value:Large and midcap companies Type:Listed stocks Geography:Nordic companies Business cycle:Expansion or management phase Exit:Appropriate exit once target value has been achieved Strong value potential and long-term perspective
Pres_KV310 Nr 5 Long-term value creation Development of net asset value SEK/share 132 +11% annually during the last 20 years period (incl. reinvested dividends) 32 23 58 52 187 181
Pres_KV310 Nr 6 9M:2010 in brief Net asset value SEK 50.9 bn, or SEK 132/share increase of SEK 8.1 bn, or 22% for the year to date* Total return of 15% for the A-shares and 19% for the C-shares the return index was 18% Net share purchases in foremost Volvo, SSAB and Sandvik totaled SEK 2.0 bn In January a convertible loan worth SEK 5 bn was issued In September Alfa Laval launched a cash bid on the shareholding in Munters *Including reinvested dividends.
Pres_KV310 Nr 7 Sharp increase in net asset value SEK 43 bn as per December 31, 2009 SEK 51 bn as per September 30, 2010 +8.1 bn +22% * Volvo + SEK 2.8 bn SSAB + SEK 2.5 bn Sandvik + SEK 1.6 bn Other- SEK 1.2 bn *Incl. reinvested dividends.
Pres_KV310 Nr 8 Equities portfolio Net debt Net asset value Debt-equity ratio after full conversion Dec. 31 2009 53.5 -10.8 42.8 20% - Dec. 31 2009 139 -28 111 SEK billion SEK per share Dec. 31 2008 34.7 -10.8 23.9 31% - Dec. 31 2008 90 -28 62 Net asset value Sept. 30 2010 63.5 -12.6 50.9 19.9% 13.1% Sept. 30 2010 164 -32 132
Pres_KV310 Nr 9 Why invest in Industrivärden? The average annual excess return for last ten years was 1%-pt/year As per September 30, 2010 Total Return (Index) Return Index Industrivärden (c) SIX AB 2010 20002001200220032004200520062007200820092010 60 100 140 180 234
Pres_KV310 Nr 10 Active ownership in brief Focus on value enhancement drivers: strategy, development and positioning Value creation Ownership agenda incl. action plan Nominating committee participation AGM participation Board participation Direct dialog with company management In-depth analysis Company, competitors and industry Megatrends Analyst presentations Company visits Database monitoring
Pres_KV310 Nr 11 Active ownership in practice Consolidation of completed acquisitions. Restructuring program designed to adapt costs and production capacity to market situation. Consistently applied business model. Organic growth in home markets in the Nordic countries and the UK. Strong financial and market position in a turbulent environment. New market-oriented organization. Cost-cutting program has had faster impact than planned. Acquisition of IPSCO’s North American steel mills and coming capacity investments in North America strengthen position as leading player and enable continued global expansion. Focus on profitable growth with strong brands in hygiene segment. Efficiency improvement measures in packaging operations. Extensive restructuring in product portfolio. Strong position ahead of operators’ investments in next generation of telecom systems (LTE) Favourable growth in Services segment. Acquisition of Nortel’s U.S. mobile systems business, together with central customer contracts, makes Ericsson a leader also in North America. Efficient construction operation generates good cash flows. Proven model for value-creating project development. Strategic focus on environmentally adapted, energy-efficient solutions. Continued company acquisitions. Decentralized business model. Establishment in new geographic markets. Strong position in energy segment. Strong global position in selected niches. Stronger focus through the divesture of the MCS operation. Organic and acquisition-driven growth via gradual broadening of product portfolio. Strong focus on collaboration with customers in new product development. Acquisition of U.S. powders business. Strong measures reduce working capital. Handelsbanken SSAB Ericsson Skanska Höganäs Indutrade Munters SCA Sandvik
Pres_KV310 Nr 12 Our portfolio of blue-chip companies Through a niche focus and strong position in R&D, the company has built up a world- leading position in materials technology with products primarily in the manufacturing and mining industries A decentralized branch operation with local customer responsibility has resulted in high level of customer satisfaction and enables good profitability World-leading position in the niche segment of quenched steels and advanced, high- strength sheet creates solid base for growth and high profitability The leading European manufacturer of personal care products, with rapidly growing niche products, as well as packaging solutions The market’s largest and most profitable supplier of mobile telecom systems, with a leading position in telecom development Through innovative, custom-tailored product development and high quality, the company has a world-leading position in commercial transport solutions Uniqe, comprehensive know-how in construction combined with process focus has resulted in a leading construction company with value-creating project development By combining sales of industrial consumables with strong organic growth and a well- developed model for acquisition-based growth, the company has been able to show impressive profitability 14.514.0 6.1 7.3 5.5 8.0 3.82.7 23% 22% 10% 11% 9% 13% 6%4% Market leader in the growing niche of metal powders, used primarily for component manufacture in the auto industry Strong global position in a business area with major growth potential organically as well as through further development of products and application areas 0.8 1% As per September 30, 2010 Portfolio value: SEK 63.5 bn Market value SEK bn Portfolio share, %
Pres_KV310 Nr 13 Strong financial position Interest bearing net debt (SEK bn) Net debt-equity ratio 20% SEK 12.6 bn Sept. 30Dec 31Dec. 31 SEK bn201020092008 Listed stocks635435 Net debt-12-11-11 Net debt eq. ratio20%20%31% Net debt eq. ratio a. full conversion13%-- S&P rating: A/stable/A–1
Pres_KV310 Nr 14 High dividend yield Dividend:188.8.131.522.753.003.504.505.004.503.00SEK/share Of which ordinary2.502.502.502.753.003.504.505.004.503.00 Bonus dividend Ordinary dividend SSEX dividend yield Dividend yield 3.4% 2.8%
Pres_KV310 Nr 15 Industrivärden online Reuters codeINDUa.ST Bloomberg codeINDUA SS www.industrivarden.net firstname.lastname@example.org +46-8-666 64 00 +46-8-661 46 28 Box 5403, SE-114 84 Stockholm, Sweden