Industrivarden Ab Class A · OMXSTO:INDU_A
Industrivarden Ab Class A — Q1 2004 Earnings Presentation
25 slides from Industrivarden Ab Class A's earnings presentation, May 4, 2004
Slide 1: Interim Report, 1Q, 2004
Interim Report, 1Q, 2004 Industrivärden, May 4, 2004 AN_Pres_KV104 Nr 1
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
Slide 3: Industrivärden in brief
Industrivärden in brief Number of shares: 193 million shares Market cap: Appr. USD 3.5 bn (SEK 26 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 ABG Sundal Collier, Fredrik Gre
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
Slide 5: Two dimensional strategy
Two dimensional strategy Generate high growth in net asset value over time Professional Active investment ownership operation AN_Pres_KV104 Nr 5
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
Slide 7: Long-term excess returns
Long-term excess returns The average annual excess return was: +5% / year for the last five years +3% / year for the last ten years Total return index (Index) (c) SIX AB 2004 637 Industrivärden stock 500 400 300 200 Total Return Index (SIXRX) 100 81.4 1994 1995 1996 1997 1998 1999 2000 2001 2002 200
Slide 8: Positive development of net asset value
Positive development of net asset value SEK bn and SEK/share 57,1 54,1 39,4 33,2 32,9 30,6 30,1 28,5 58,5 59,1 24,4 21,7 15,9 44,6 15,1 36,9 37,6 31,6 33,7 32,9 26,4 22,5 17,8 17,6 -2,7 -3,1 -3,1 -5,0 -5,2 -3,7 -4,7 -1,7 -0,8 -1,4 -2,0 -2,8 dec 94 dec 95 dec 96 dec 97 dec 98 dec 99 dec 00 dec 01 dec
Slide 9: 2004 in brief
2004 in brief Net asset value on March 31, 2004: SEK 33,209 M (22,917), an increase of SEK 10,292 M SEK 172 (119), an increase of SEK 16 per share since January 1, 2004 Industrivärden will approve the proposal set forth by a group of major Class A and Class B shareholders of Ericsson at an E
Slide 10: Major activities during the last 24 months
Major activities during the last 24 months 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 16% of the orthopedics comp. Ossur Stron
Slide 11: Transactions during the last 24 months
Transactions during the last 24 months 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 12: Strong financial position
Strong financial position Interest-bearing net debt (SEK billion) Net debt-equity ratio* 6,0 12% 5,4 11% 5,0 10% 9% 5,0 9% 4,0 8% 7% 7% 3,3 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 market value
Slide 13: Composition of net asset value
Composition of net asset value SEK billion SEK per share Apr. 30 Mar. 31 Dec. 31 Apr. 30 Mar. 31 Dec. 31 2004 2004 2002 2004 2004 2002 Equities portfolio 37.6 36.9 26.4 194 191 136 Net debt -4.7 -3.7 -2.0 -24 -19 -10 Net asset value 32.9 33.2 24.4 170 172 126 AN_Pres_KV104 Nr 13
Slide 14: 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 Sandvik 40% SCA 30% Handelsbanken Ericsson 20% 10% 0% Dec Dec Dec Dec Dec March 99 00 01 02 03 04 AN_Pres_KV104 Nr 14
Slide 15: Equities portfolio as per March 31, 2004
Equities portfolio as per March 31, 2004 Health care (2%) Other (1%) Trading (5%) Ossur ot Ind Construction (6%) Sandvik utra Engineering (25%) Sk SSAB an de Munters h. sk a Isaberg Rapid Forestry and others consumer SCA products (17%) Handelsbanken Ericsson Telecom (22%) Banking (22%) As per March
Slide 16: Equities portfolio as per March 31, 2004
Equities portfolio as per March 31, 2004 % of % of Market value % of votes portfolio capital In In SEK M SEK/share value Stock No. shares company company Handelsbanken A 55.984.800 7.978 41 22 7,8 8,5 Ericsson A 186.000.000 7.902 41 22 2,3 27,7 Ericsson B 178.737.276 SCA A 16.982.000 6.334 33 17 9,0
Slide 17: Equities portfolio as per April 30, 2004
Equities portfolio as per April 30, 2004 Health care (2%) Other (1%) Trading (5%) Ossur ot Ind Construction (5%) Sandvik utra Engineering (26%) Sk SSAB an de Munters h. sk a Isaberg Rapid Forestry and others consumer SCA products (17%) Handelsbanken Ericsson Telecom (22%) Banking (22%) As per April
Slide 18: Equities portfolio as per March 31 and April 30, 2004
Equities portfolio as per March 31 and April 30, 2004 Mar. 31, 2004 Average annual total return, % April 30, 2004 Market- 5 yrs., 10 yrs., Market- Stock value, SEK M No. shares Dec. 98-Mar. 04Dec. 93-Mar. 04 No. sharesvalue, SEK M Handelsbanke 55.984.80 7.978 -3 7 17 56.369.800 8.315 n 0 364.737.2 3
Slide 19: 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_KV104 Nr 19
Slide 20: 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
Slide 21: Major knowledge about possible investments
Major knowledge about possible investments Listed companies in the Nordic region: approx. 850 Total market cap: SEK 5,9 billion (April ’04) Continuous Structured Continuous analysis of Ability for quick scanning of all monitoring of selected companies entries companies all interesting that meet inve
Slide 22: 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_KV104 Nr 22
Slide 23: 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
Slide 24: 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) +3 %pts annually in 10 yrs +4 %pts annually in 7 yrs +5 %pts annually in 5 yrs 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 04 Average annual tota
Slide 25: 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