Industrivarden Ab Class A · OMXSTO:INDU_A
Industrivarden Ab Class A — 9M 2005 Earnings Presentation
21 slides from Industrivarden Ab Class A's earnings presentation, Nov 8, 2005
Slide 1: Interim Report, January 1 – September 30, 2005
Interim Report, January 1 – September 30, 2005 Industrivärden, November 8, 2005 AN_Pres_KV305 Nr 1
Slide 2: Industrivärden
Industrivärden A successful value investor with focus on investments and active value enhancement in listed Nordic companies AN_Pres_KV305 Nr 2
Slide 3: Company in brief
Company in brief Established: 1944 Stock: 193 million shares, listed on SSEX Market cap: Approx. USD 4.7 bn (SEK 38 bn) Free float: Approx. 53% of shares No. shareholders: 38,000 Average daily turnover: Approx. 130,000 shares Coverage: Carnegie, Björn Enarson, +46 8 676 88 00 Enskilda
Slide 4: 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 5: Long-term excess returns
Long-term excess returns The average annual excess return was: +2%/year for last five years +6%/year for last ten years Total return index (Index) (c) SIX AB 2005 694 600 500 Industrivärden share 400 300 Total Return Index (SIXRX) 200 100 94 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 05 As pe
Slide 6: Good growth in value
Good growth in value Yearly average total return Industrivärden SIXRX Difference 10 months 2005 as per Nov 4 24% 26% -2 %pts 12 months as per nov 4 34% 31% +3 %pts Full year 2004 46% 21% +25 %pts 5 years 2% 0% +2 %pts 10 years 19% 13% +6 %pts Through October 31, 2005 AN_Pres_KV305 Nr 6
Slide 7: Ownership structure
Ownership structure capital, % votes, % AMF Pension 12 5 Lundbergföretagen 11 14 SCA Pension Foundations 9 12 SHB Pension Foundation 7 9 SHB Pension Fund 7 9 Wallander & Hedelius Foundation 6 8 SCA Pension Foundation 9 12 Oktogonen 3 5 SCA 2 3 Svenska Handelsbanken 1 2 Other shareholders 42 33 Total
Slide 8: Interim Report Q3:2005 in summary
Interim Report Q3:2005 in summary As per November 4 Net asset value: SEK 45.6 billion, an increase during the year of SEK 9.0 billion or 25% Total return for the stock (12 months.): 34%, or 3 percentage points higher than the return index As per September 30 Stocks were purchased for SEK 2.2 b
Slide 9: Major transactions during 9M, 2005
Major transactions during 9M, 2005 Net purchases Thousands SEK M Net sales Thousands SEK M SCA B 5,122 1,309 Sandvik redemption shares (all) 1,077 436 Höganäs B 1,428 276 Nokia (all) 1,588 179 Ossur hf 24,699 247 Pfizer Inc. (all) 1,000 170 Ericsson B 5,000 137 SSAB redemption rights (all) 14,095 54
Slide 10: Indutrade IPO
Indutrade IPO Indutrade Industrivärden Listed on Stockholm Stock Exchange on Continued long-term active owner with October 5, 2005 slightly more than 35% of the company Introduction price: SEK 65, oversubscribed 12 Payment for sold shares: SEK 1.6 billion times over Increase in net asset v
Slide 11: Ossur: Strong development 2002 - 2005
Ossur: Strong development 2002 - 2005 MUSD 2002 Proforma 12 months as per June, 2005 Net sales 81.3 196.3 EBITDA 14.3 43.7 Net earnings 10.1 25.3 Earnings per share US 3,12 cents US 6,60 cents Market cap SEK 1.4 billion SEK 4.5 billion P/BV 4.0 3.6 P/E 16 23 AN_Pres_KV305 Nr 11
Slide 12: Divestment of Ossur
Divestment of Ossur Ossur Industrivärden Icelandic quoted medtech company with world Active owner with board representation leadership in prosthetics and orthotics during the period 2002 - 2005 Strong growth (sales +67%) and high Sale of the entire holding for SEK 1,008 M, profitability (retu
Slide 13: Distribution in Sandvik and SSAB
Distribution in Sandvik and SSAB Sandvik Received IV Before distribution: Dividend After distribution : SEK 296 M (3.9%) 10% of capital 11% of capital Accepted redemption and votes and votes* Redemption followed by a sale of SEK 436 M (5.7%) redemption shares SEK 732 M (9.6%) SSAB Before distributio
Slide 14: Continued strong financial position
Continued strong financial position Net debt (SEK M) Net debt equity-ratio 7,0 20% 18% 6,0 16% 5,0 14% 12% 4,0 10% 3,0 8% 2,0 6% 4% 1,0 2% 0,0 0% AN_Pres_KV305 Nr 14
Slide 15: Equities portfolio as per September 30 and November 4, 2005
Equities portfolio as per September 30 and November 4, 2005 Sept. 30, 2005 Total return, % Average annual total return, % Nov. 4, 2005 Value distri- Period 5 yrs., 10 yrs., Value distri- Stock No. shares bution, SEK M Jan.-Sept. Sept. 00-05 Sept. 95-05 No. shares bution, SEK M 05 Handelsbanke 66.464
Slide 16: Major transactions during the last years
Major transactions during the last years INVESTMENTS ACTIVE OWNERSHIP SALES Identified value potential Value creation Realization of value Lundbeck Subscription in Ericsson’s new issue Continuous development of work methods and models Besam 13% of the moisture ctrl. comp. Munters Strong abi
Slide 17: Major transactions during the last years
Major transactions during the last years SEK M Date Transaction Holding Sector Average Price Result price Apr. 02 Sale Lundbeck Pharmaceuticals DKK 231 2,400 1,500 Apr. 02 Sale Besam Door automation - 3,050 2,300 June 02 Sale Biodisk Meditech - 130 110 Nov/Dec 03 Sale Skandia Fin. services - 1,250 -
Slide 18: Up-weightings in the portfolio
Up-weightings in the portfolio Net Million Average Last paid Value purchases shares price on Nov. 4 increase SEK billion 2004 SHB 13.6 145 182 0.5 Sandvik 5.8 251 377 0.7 2005 SCA 5.1 254 270 0.1 Total 1.3 AN_Pres_KV305 Nr 18
Slide 19: High activity – good return
High activity – good return November 4, 2005 Dec. 31, 1999 Dec. 31, 1994 Equities portfolio (SEK bn) Handelsbanken 12 Ericsson 26 PLM 4 Ericsson 10 Sandvik 6 Inductus* 4 Sandvik 10 Handelsbanken 5 AGA 2 SCA 6 SCA 5 SCA 2 Skanska 4 Skanska 3 Ericsson 2 SSAB 3 SSAB 2 Handelsbanken 1 Indutrade 1 Indutr
Slide 20: Long-term favorable development of net asset value
Long-term favorable development of net asset value Kr/aktie SEK/share Mdkr M SEK 70 350 298 60 283 300 50 250 237 236 40 204 200 189 30 160 156 150 150 126 20 114 100 78 83 10 0 50 -10 0 Aktieportföljen Portfolio Nettos kuld Net debt Substansvärde Net asset value Subs tansvärde per aktie AN_Pres_KV3
Slide 21: 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