Industrivarden Ab Class A · OMXSTO:INDU_A

Industrivarden Ab Class A — Q2 2004 Earnings Presentation

26 slides from Industrivarden Ab Class A's earnings presentation, Aug 5, 2004

  1. Slide 1: Interim Report, 2Q, 2004

    Interim Report, 2Q, 2004 Industrivärden, August 5, 2004 AN_Pres_KV204 Nr 1

  2. Slide 2: Industrivärden – investment case

    Industrivärden – investment case  Value investor with a focus on investments in listed Nordic shares  Proven track record - excess returns under a long period of time  Portfolio of Swedish blue-chip companies  Conservative gearing provides opportunity for increased leverage when opportunities oc

  3. Slide 3: Industrivärden in brief

    Industrivärden in brief  Number of shares: 193 million shares  Market cap: Appr. USD 3.5 bn (SEK 25 bn)  Free float: Appr. 55% of shares  No of shareholders: 37.000  Average daily turnover: Appr. 130.000 shares  Coverage: Carnegie, Johan Sjöberg, +46 8 676 88 00 Enskilda Securities, Andreas Jo

  4. Slide 4: Mission, goal and vision

    Mission, goal and vision 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 give shareholders a high total return Vision To be perceived as the leading in

  5. Slide 5: Two dimensional strategy

    Two dimensional strategy Generate high growth in net asset value over time Professional Active investment ownership operation AN_Pres_KV204 Nr 5

  6. Slide 6: Our investment criteria

    Our investment criteria Conditions Portfolio Sectors: Sector generalist Scope: Concentrated portfolio Ownership Possibility to be major or Individual investments structure: largest owner Market value: Large and medium- Investment sized companies horizon: 3-8 years Type: Mainly listed Geography: Nord

  7. Slide 7: Ownership structure

    Ownership structure % of No. shares shares votes AMF Pension Fund 23 138 500 12 5 Lundbergföretagen 20 250 000 10 14 SHB Pension Foundation 12 900 000 7 9 SHB Pension Fund 12 800 000 7 9 Wallanders & Hedelius Foundation 11 400 000 6 8 SCA Pension Foundation 8 925 540 4 6 Skandia Life Insurance 7 182

  8. Slide 8: Long-term excess returns

    Long-term excess returns The average annual excess return was: +5% / year for the last five years +2% / year for the last ten years Total return index (Index) (c) SIX AB 2004 645 500 Industrivärden stock 400 300 200 Total Return Index (SIXRX) 100 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 04

  9. Slide 9: Positive development of net asset value

    Positive development of net asset value 57,1 54,1 SEK bn and SEK/share 39,4 30,1 34,4 33,4 28,6 30,6 24,4 21,7 58,5 59,2 15,0 15,9 44,6 38,3 37,3 31,6 33,7 32,9 26,4 22,5 17,7 17,6 -2,7 -1,7 -0,8 -1,4 -2,0 -2,8 -3,1 -3,1 -5,0 -3,9 -3,9 -5,2 31-dec- 31-dec- 31-dec- 31-dec- 31-dec- 31-dec- 31 dec 31-d

  10. Slide 10: Major activities since January 2002

    Major activities since January 2002 INVESTMENTS ACTIVE OWNERSHIP SALES Identified value potential Value creation Realization of values/ adaption of strategy  Subscription in Ericsson’s new issue Development of new work methods and models  Lundbeck  19% of the orthopedics comp. Ossur Strong abili

  11. Slide 11: Transactions since January 2002

    Transactions since January 2002 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 -1,510 - S

  12. Slide 12: Latest active holdings

    Latest active holdings Orthopedics company, leader in prosthetic legs and knee orthosis  Distinct customer need and fast growth  Very good position in Nordic region, strong position in the U.S.  Robust expansion in Europe  Market cap: SEK 2.6 bn, turnover: SEK 769 M, earnings a. taxes: SEK 38 M

  13. Slide 13: Strong financial position

    Strong financial position Interest-bearing net debt (SEK billion) Net debt-equity ratio* 6,0 12% 5,4 11% 5,0 9% 10% 10% 9% 5,0 4,0 8% 7% 3,6 3,6 7% 3,0 6% 2,5 2,0 4% 1,9 *Parent company’s interest-bearing net debt, 1,2 adjusted for liabilities to 1,0 2% 2% internal companies, in relation to the mark

  14. Slide 14: Composition of net asset value

    Composition of net asset value SEK billion SEK per share Aug. 3 June 30 Dec. 31 Aug. 3 June 30 Dec. 31 2004 2004 2002 2004 2004 2002 Equities portfolio 37.3 38.3 26.4 193 198 136 Net debt -3.9 -3.9 -2.0 -20 -20 -10 Net asset value 33.4 34.4 24.4 173 178 126 AN_Pres_KV204 Nr 14

  15. Slide 15: Development of net asset value

    Development of net asset value Share of net asset value, % 100% 90% 80% Other Övrigt 70% Ossur Munters 60% SSAB 50% Skanska SCA 40% Sandvik 30% Handelsbanken Ericsson 20% 10% 0% Dec Dec Dec Dec Dec June 99 00 01 02 03 04 AN_Pres_KV204 Nr 15

  16. Slide 16: Equities portfolio as per June 30, 2004

    Equities portfolio as per June 30, 2004 Health care (2%) Other (1%) Trading (5%) Ossur ot Ind Construction (6%) Sandvik utra Engineering (26%) Sk SSAB an de Munters h. sk a Isaberg Rapid Forestry and SCA others consumer products (15%) Handelsbanken Ericsson Telecom (23%) Banking (22%) As per June 30

  17. Slide 17: Equities portfolio as per June 30, 2004

    Equities portfolio as per June 30, 2004 % of % of Market value % of votes portfolio capital in in Stock No. shares SEK M SEK/share value company company Ericsson A 186.000.000 8.593 45 23 2,3 27,7 Ericsson B 186.000.000 Handelsbanken A 56.709.800 8.563 44 22 8,2 8,7 Sandvik 23.534.600 6.048 31 16 8,

  18. Slide 18: Equities portfolio as per August 3, 2004

    Equities portfolio as per August 3, 2004 Health care (2%) Other (1%) Trading (5%) Ossur ot Ind Construction (6%) Sandvik utra Engineering (28%) Sk SSAB an de Munters h. sk a Isaberg Rapid Forestry and others consumer SCA products (15%) Handelsbanken Ericsson Telecom (22%) Banking (21%) As per August

  19. Slide 19: Equities portfolio as per June 30 and August 3, 2004

    Equities portfolio as per June 30 and August 3, 2004 June 30, 2004 Total return, %Average annual total return, % August 3, 2004 Market- Period 5 yrs., 10 yrs., Market- Stock value, SEK M No. shares Jan. 04-Jun.04 Jun. 99-Jun. 04 Jun. 94-Jun. 04 No. sharesvalue, SEK M 372.000.0 372.000.00 Ericsson 8.

  20. Slide 20: Well developed internal methods and systems

    Well developed internal methods and systems  Good up-to-date knowledge about interesting companies  Ability to act quickly when business opportunities arise  Structured investment process  Flexible organization at low cost  Efficiency and quality AN_Pres_KV204 Nr 20

  21. Slide 21: Work process at a glance

    Work process at a glance New investments Active ownership Exit evaluation Database/ Information Company Action prioritization collection analysis plan Buildup of Decision/ Exit plan holdings Analysis execution Teamwork/ Board/ External committee work contacts Investment- Decision Continuous committe

  22. Slide 22: Major knowledge about possible investments

    Major knowledge about possible investments Listed companies in the Nordic region: approx. 850 Total market cap: SEK 5,800 billion (June ’04) Continuous Structured Continuous analysis of Ability for quick scanning of all monitoring of selected companies entries companies all interesting that meet inv

  23. Slide 23: Active ownership

    Active ownership Board Information exchange Presentations Proposals for members Investment organization Team Dialog / company visits Portfolio companies Networks Action plans Boards/committees Members with ties to IV Management AN_Pres_KV204 Nr 23

  24. Slide 24: Value creation

    Value creation  Value potential Business model, growth, profitability, other value-creating measures  Market potential Organic growth for the market and company. Entrance obstructions. Acquisition opportunities  Strategic positioning Strategy, acquisitions or divestments  Capital rationalization

  25. Slide 25: Good growth over time

    Good growth over time Annual excess return (change in value, dividends incl.) for the Industrivärden shares compared with Total return index (SIXRX) +2%pts annually in 10 yrs +3%pts annually in 7 yrs +5%pts annually in 5 yrs 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 04 Average annual total r

  26. Slide 26: 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

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