Industrivarden AB Class A · OMXSTO:INDU_A
Industrivarden AB Class A — H1 2007 Earnings Presentation
21 slides from Industrivarden AB Class A's earnings presentation, Aug 3, 2007
Slide 1: A long-term industrial developer of listed companies
”A long-term industrial developer of listed companies” Interim Report, January 1- June 30, 2007 Industrivärden, August 3, 2007 AN_Pres_KV207 Nr 1
Slide 2: Company in brief
Company in brief Established: 1944 Stock: 386 million shares, listed on SSEX Market cap: Approx. USD 8.3 bn (SEK 56 bn) Free float: Approx. 40% of shares No. shareholders: 40,000 Average daily trading vol.: Approx. 280,000 shares Coverage: Carnegie, Frida Willmansson, +46 8 676 88 00 E
Slide 3: Mission, goal and strategy
Mission, goal and strategy Business mission Create shareholder value based on a professional investment operation and active ownership Our goal Generate high growth in net asset value over time Industrivärden’s stock will deliver a high total return to shareholders Portfolio Conditions Sectors: Se
Slide 4: Investment focus
Investment focus Nordic companies Public sector Startup phase Expansion Management Restructuring phase phase phase Venture capitalists Private equity investor in mature companies Industrivärden AN_Pres_KV207 Nr 4
Slide 5: Investment case – comparable advantages
Investment case – comparable advantages Proven track record – excess returns over a long period of time Cost-efficient organization – less than 0.2% in management costs High quality portfolio of blue-chip companies Good financial resources and long-term perspective First-rate model for exe
Slide 6: Ownership structure
Ownership structure capital, % votes, % Lundbergföretagen 11 15 SCA Pension Foundations 9 12 AMF Pension 9 2 SHB Pension Foundation 7 10 SHB Pension Fund 7 10 Wallander & Hedelius Foundation 6 8 AB Landå 3 4 SCA 3 4 Svenska Handelsbanken 1 2 Other shareholders 44 33 Total 100 100 Of which foreign ow
Slide 7: First seven months 2007 in summary
First seven months 2007 in summary Net asset value increased by SEK 10,385 M, or 18%, and was SEK 68,876 M on July 31, 2007 Net asset value per share increased by SEK 27 M to SEK 178 as per July 31, 2007 The total return was 12% for the Class A shares and 13% for the Class C shares, compared w
Slide 8: Transactions during first half of 2007
Transactions during first half of 2007 Net purchases Thousands SEK M Net sales Thousands SEK M Volvo A 20,108 2,760 Tandberg TV (entire holding)1 5,963 728 Sandvik 6,431 768 Sandvik redemption shares 134,700 404 SSAB A 956 223 Isaberg Rapid 200 Other 155 Other 211 Total 3,906 Total 1,543 1 The entir
Slide 9: Development of portfolio companies
Development of portfolio companies Total return, % 1H: 2007 Net sales Δ, % Op. income Δ, % Margin % Δ % pts 1H:07 Ten yrs., annually Sandvik 07’ 42,411 +20 7,631 +30 18.0 +1.4 47 17 06’ 35,332 5,848 16.6 SHB 07’ 14,936 -4 8,479 -7 56.8 -1.8 -3 12 06’ 15,579 9,130 58.6 SSAB 07’ 17,879 +14 3,994 +20 2
Slide 10: Good growth in value
Good growth in value Annual average total return as per July 31, 2007 Industrivärden A SIXRX Difference January – July 2007 12% 12% +-0 %pts 5 years 27% 24% +3 %pts 10 years 13% 11% +2 %pts 62 years 15% 13% +2 %pts AN_Pres_KV207 Nr 10
Slide 11: Portfolio of quality companies
Portfolio of Professional First-rate methods quality organization and models companies Concentrated portfolio Proven value creation Own-developed work methods, provides focus over many years models and systems Depth of knowledge vouch for high quality Industry-leading companies provide fav
Slide 12: Favorable development of net asset value...
Favorable development of net asset value... SEK M Kr/aktie SEK/share Mdkr 90 200 181 178 80 180 149 151 70 160 142 60 140 125 50 120 102 40 95 100 30 80 78 80 75 63 20 60 10 0 40 -10 20 -20 0 Portfolio Aktieportföljen Net debt Nettoskuld Substansvärde Net asset value CAGR, 10 years = 10% AN_Pres_KV2
Slide 13: ... and long-term excess returns
... and long-term excess returns The average annual excess return was: +3%-points/year for last five years +2%-points/year for last ten years Total return index (Index) (c) SIX AB 2007 377 350 Industrivärden share 300 250 200 150 Total Return Index (SIXRX) 100 97 1998 1999 2000 2001 2002 2003 2004 2
Slide 14: High activity – good return 10 yrs
High activity – good return June 30, 2006 Höganäs; 1 Munters; 1 Indutrade; 2 Other;00 Övrigt; Dec 31, 1996 Volvo; 5 Sandvik; 19 Other; Övrigt; 1 Other Övriga Skanska; 5 subsidiaries; dotterbolag; 3 Ericsson; 5 PLM; 1 SSAB; 1 SCA; 8 Indutrade; 1 AGA; 3 Besam; 1 Skanska; 1 SCA; 3 Handelsbanken; 13 Han
Slide 15: Major transactions in recent time
Major transactions in recent time SEK M Date Transaction Holding Sector Average Price Result price Apr. 02 Sale Lundbeck Pharmaceuticals - 2,400 1,500 Apr. 02 Sale Besam Door automation - 3,050 2,300 Nov/Dec 03 Sale Skandia Fin. services - 1,250 -1,510 Oct 05 IPO/Sale Indutrade Technical trading - 1
Slide 16: A portfolio of industry-leading companies
A portfolio of industry-leading companies Leading metal powder producer 1% or SEK 0.7 bn (2004) Leading player in complex construction projects 6% or SEK 4 bn (1987) World leader in Leading high-tech company moisture control in materials technology Leading producer of 2% or SEK 1 bn (2002) heavy veh
Slide 17: Equities portfolio as per July 31, 2007
Equities portfolio as per July 31, 2007 Value % of % of % of votes distribution portfolio capital in in Stock No. shares SEK M SEK/share value company company Sandvik 136,431,200 18,896 49 25 11.5 11.5 Handelsbanken A 68,285,000 13,373 35 17 10.9 11.1 Handelsbanken B 118,900 SSAB A 42,789,209 11,598
Slide 18: Strong financial position
Strong financial position Net debt (SEK bn) Net debt equity ratio 9,0 20% SEK 7.7 bn 8,0 18% 7,0 16% 14% 6,0 10.0% 12% 5,0 10% 4,0 8% 3,0 6% 2,0 4% 1,0 2% 0,0 0% 0 1 1 1 1 2 2 2 2 3 3 3 3 4 4 4 4 5 5 5 5 6 6 6 6 7 7 c -0 r- 0 n- 0 p-0 c-0 r- 0 n- 0 p-0 c-0 r- 0 n- 0 p-0 c-0 r- 0 n- 0 p-0 c-0 r- 0 n-
Slide 19: Industrivärden's dividend
Industrivärden’s dividend 5 7% 5 6% 4 4 5% 3 Bonusutdelning Bonus dividend 4% 3.3% Ordinary utdelning Ordinarie dividend 3 SSEX dividend yield Direktavkastning börsen 3% Dividend yield Direktavkastning 2 3.0% 2 2% 1 1% 1 0 0% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Dividend: 1.88 2.25 3.10
Slide 20: 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 www.industrivarden.net / IR / Ask… / Info... Press release direct: www.waymake
Slide 21: Changed tax situation 2005/2006
Changed tax situation 2005/2006 Since September 2004, all active holdings are classified as business-related shares (i e share of votes more than 10%). (Corresponds to 97% of portfolio value) Holdings that are not included in base for standard income assumption: - Approx. 50% of portfolio value