Slide 1: Long-term industrial developer of listed Nordic companies
“Long-term industrial developer of listed Nordic companies” Year-End 2009 Industrivärden, February 11, 2010 AN_Pres_KV409 Nr 1
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 Rating: S&P; A/stable/A-1 No. shareholders: 48,000 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_KV409 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 11.9 23 10.3 Long-term Sandvik 10.8 21 11.4 active ownership SCA 7.0 13 29.2 Blue-chip portfolio SSAB 6.2 12 20.7 Ericsson 5.5 10 13.6 Volvo 4.5 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
Long-term value creation Development of net asset value SEK/share 200 187 181 180 160 +10% annually during 140 the last 20 years period 120 (incl. reinvested dividends) 111 100 80 60 32 40 58 52 20 23 0 91-12-31 99-12-31 04-12-31 89-12-31 90-12-31 92-12-31 93-12-31 94-12-31 95-12-31 96-12-31 97-12-3
Slide 7: 2009 in brief
2009 in brief Financial development Net asset value SEK 42.8 bn or SEK 111/share an increase of SEK 18.9 bn, or 87% for YTD Total return of 64% for the Class A shares 11%-pts better than the return index Proposed dividend SEK 3.00 (4.50) per share AN_Pres_KV409 Nr 7
Slide 8: Sharp increase in net asset value
Sharp increase in net asset value SEK 43 bn as per December 31, 2009 Sandvik +5 bn Handelsbanken +5 bn +19 bn SSAB +3 bn SCA +2 bn +87%* Others +4 bn SEK 24 bn as per December 31, 2008 *Incl. reinvested dividends. AN_Pres_KV409 Nr 8
Slide 9: Net asset value
Net asset value SEK billion SEK per share Feb. 9 Dec. 31 Dec. 31 Feb. 9 Dec. 31 Dec. 31 2010 2009 2008 2010 2009 2008 Equities portfolio 52.8 53.5 34.7 137 139 90 Net debt -10.9 -10.8 -10.8 -29 -28 -28 Net asset value 41.9 42.8 23.9 108 111 62 Debt-equity ratio 21% 20% 31% AN_Pres_KV409 Nr 9
Slide 10: Why invest in Industrivärden?
Why invest in Industrivärden? The average annual excess return for last ten years was 2%-pt/year Total Return (Index) (c) SIX AB 2010 234 180 Industrivärden 140 100 Avkastningsindex 60 40 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 10 As per February 9, 2010 AN_Pres_KV409 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 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
Slide 13: Our portfolio of blue-chip companies
Our portfolio of blue-chip companies 11.9 10.8 7.0 6.2 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 10.9 bn 13,0 30% 11,0 25% 21% 9,0 20% 7,0 15% 5,0 Feb. 9 Dec 31 Dec. 31 10% SEK bn 2010 2009 3,0 2008 1,0 5% Listed stocks 53 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 0
Slide 15: High dividend yield
High dividend yield 6 9% 8% 5 7% 4 6% Bonusutdelning Bonus dividend 5% Ordinarie Ordinaryutdelning dividend 3 Direktavkastning SSEX dividend börsen yield 4% 3.4% Dividend yield Direktavkastning 2 3% 3.0% 2% 1 1% 0 0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Dividend: 4.20 4.18 2.90 2.75 3.0
Slide 16: Industrivärden online
Industrivärden online Reuters code INDUa.ST Bloomberg code INDUA SS Datastream code W :IU www.industrivarden.net info@industrivarden.se +46-8-666 64 00 +46-8-661 46 28 Box 5403, SE-114 84 Stockholm, Sweden AN_Pres_KV409 Nr 16