Industrivarden Ab Class A · OMXSTO:INDU_A
Industrivarden Ab Class A — Q2 2002 Earnings Presentation
35 slides from Industrivarden Ab Class A's earnings presentation, Aug 20, 2002
Slide 1: Interim Report Presentation Q2, 2002
Interim Report Presentation Q2, 2002 Industrivärden, August 20, 2002 AN_Pres_KV202_eng
Slide 2: 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 3: Two dimensional strategy
Two dimensional strategy Professional invest- ment operation Active ownership Generate high growth in net asset value over time AN_Pres_KV202_eng
Slide 4: Ownership structure as per June 30, 2002
Ownership structure as per June 30, 2002 % of No. shares votes shares AMF Pension Fund 23 847 444 6 12 SHB Pension Foundation 12 900 000 9 7 Wallanders & Hedelius Foundation 11 100 000 8 6 Skandia 11 008 642 4 6 SHB Pension Fund 8 500 000 6 4 BZ Bank 7 525 100 3 4 SCA 6 989 884 5 4 Oktogonen 6 500 0
Slide 5: Declining stock markets for more than two years
Declining stock markets for more than two years. . . 105 % % 100 Last since 95 12 mos. Jan. 1 90 SP500 -23 -22 85 80 ET100 -30 -29 75 70 SAX -32 -34 65 60 O ’01 01 M ’02 Ju 2 Fe 2 Se 1 2 Ja 1 02 1 Ju 2 2 2 ’0 ’0 ’0 ’0 ’0 ’0 ’0 ’0 ’0 .’ . l’ pt b n n ug ug ec ov ay ct pr ar D A M A A N Note: Index tr
Slide 6: Also entail decline for Industrivärden's stock
. . . also entail decline for Industrivärden’s stock < norm 52, INDU-A < norm 52, AFGX (c) SIX AB 2002 260.0 200 Change since 150 March 6, 2000 -57% 100 -62% 50.4 1996 1997 1998 1999 2000 2001 2002 As per Aug. 9 AN_Pres_KV202_eng
Slide 7: Drop in net asset value
Drop in net asset value SEK/share 400 350 300 250 200 Jan. 1 – Aug. 15, 2002 150 -SEK 15 billion or 100 -35% 50 0 dec/92 dec/93 dec/94 dec/95 dec/96 dec/97 dec/98 dec/99 dec/00 dec/01 Net asset value Share price Index (AFGX) AN_Pres_KV202_eng
Slide 8: Favorable transactions despite tough stock market
Favorable transactions despite tough stock market Average Capital Date Transaction Holding Sector price Price gain Nov. 01 Sale Pharmacia Pharmaceuticals SEK 471 780 130 Apr. 02 Sale Lundbeck Pharmaceuticals DKK 231 2,400 1,500 Apr. 02 Sale Besam Door automation - 3,050 2,300 May 02 Purchase Össur M
Slide 9: Development of net asset value
Development of net asset value 4.2 SEK M 54.1 4.2 4.8 40.9 42.4 4.1 39.4 4.1 3.8 31.8 37.2 2.0 29.6 2.0 54.9 25.7 43.9 40.8 40.5 38.1 34.5 28.9 25.1 -5.1 -4.7 -5.7 -6.5 -5.2 -5.0 Varav ränte- -1.3 -1.4 bärande netto-(-5,2) (-4,8) (-5,8) (-6,3) (-5,1) (-4,9) (-1,1) (-1,2) låneskuld 31 dec-00 31 mar-0
Slide 10: Composition of net asset value
Composition of net asset value SEK billion SEK per share Aug. 15 Dec. 31 Aug. 15 Dec. 31 2002 2001 2002 2001 Listed portfolio 25.1 40.5 130 210 Industrial and trading operations and other unlisted holdings 2.0 4.1 10 21 Total equities portfolio 27.1 44.6 140 231 Other assets and liabilities -1.4 -5.
Slide 11: Össur
Össur Life Without Limitations AN_Pres_KV202_sve
Slide 12: Medical technology company with strong niche position
Medical technology company with strong niche position Overview Business model 1990 external management Sales of prostheses that 1999 stock market listing in enable an active life Iceland High-end segment 2000 acquisition of four companies Goal of being technological in field of prostheti
Slide 13: No. 2 in the world, with good profitability
No. 2 in the world, with good profitability Sales by region Sales by product Earnings breakdown (2002e) Other Orthotics Other COGS 38% 9% North 5% 5% America Nordic 58% region 13% SG&A 38% R&D 7% Other Europe Prosthetics EBIT 17% 20% 90% USD 40 M USD 40 M USD 82 M Note: Pertains to 6 mos. 2002 Sourc
Slide 14: Prosthetics & orthotics market
ESTIMATE Prosthetics & orthotics market Prosthetics Orthopedics market* market Össur Prescription orthotics, 12% supports 8% Others Others 92% 88% SEK 4 billion SEK 110* billion *Note: Market definition based on the 12 largest companies in the industry Note: Exchange rate: dollar/SEK = 9.37 Source:
Slide 15: Reasons for amputation
Reasons for amputation Accidents 6% Vascular diseases Cancer 40% and other 20% Diabetes 34% Source: Össur AN_Pres_KV202_sve
Slide 16: Product portfolio
Product portfolio Liners Knees Shin Locks & Thigh solutions solutions Feet sleeves Source: Össur AN_Pres_KV202_sve
Slide 17: Direct sales in all major markets
Direct sales in all major markets Jackson Reykjavík Eindhoven Helsingborg & Michigan, USA Iceland The Netherlands Uppsala Sweden Aliso Viejo California, USA Dayton Ohio, USA Source: Össur AN_Pres_KV202_sve
Slide 18: Prosthetics
Industrial channels Supplier Marketplace Orthotic & Prosthetics 100% prosthetic design shop 30% Sports Orthotics Medicine & Over-the- 70% counter sales Source: Össur AN_Pres_KV202_sve
Slide 19: Strong position in attractive market
Strong position in attractive market Market Össur High-growth market (8-12%) Organic growth of approx. 20% per year Fragmented market Strong financial position Complementary acquisitions with potential for synergies Leading technological position. No challenging multiples R&D: 6%-8% of
Slide 20: Portfolio contribution analysis for 2002
Portfolio contribution analysis for 2002 SEK M SCA 719 SSAB -17 Sandvik -117 Pfizer -364 Skanska -420 SHB -1446 Skandia -2248 Ericsson -9 506 Adjusted for purchases and sales 01/12/31 – 02/8/15. AN_Pres_KV202_eng
Slide 21: Development of net asset value
Development of net asset value Share of net asset value, % 298 283 214 222 166 204 172 153 133 SEK/share 100% 90% 26% 27% 27% 27% 28% 30% 32% 30% 34% 80% 70% 11% 10% 14% 12% 14% Övrigt 12% 16% 18% Other 60% 9% 11% 7% Sandvik 15% 14% 50% 8% 10% 11% 16% SCA 15% 21% 40% 24% Handelsbanken 18% 18% 19% 21
Slide 22: Sector breakdown, equities portfolio
Sector breakdown, equities portfolio Health care (4%) Other (1%) Trading (5%) Össu Ind Construction (6%) S ka ut r ns ra ka de Handelsbanken Banking and Skandia insurance (29%) Telecom (11%) Ericsson Sandvik Forestry SCA SSAB Isaberg Rapid and consumer others products (20%) Engineering (24%) As per
Slide 23: Listed portfolio as per June 30, 2002
Listed portfolio as per June 30, 2002 Market value Share of Share of Share of SEK M SEK/share portfolio, % capital, % votes, % Handelsbanken 6,836 35 24 7 7 SCA 6,173 32 21 8 28 Sandvik 4,820 25 17 8 8 Ericsson 3,064 16 11 3 28 Skandia 2,000 10 7 5 5 Skanska 1,797 9 6 7 31 SSAB 1,442 7 5 12 16 Pfize
Slide 24: SCA
SCA Trust diagram 19970102 - 20020809 585.7 550 < norm (195, SCA-A (Senast)) Dag < norm (195, SAX (Senast)) Dag (c) SIX AB 2002 500 450 Hygiene products and 400 packaging materials 350 300 250 Industrivärden’s holding as per June 30: 194.3 19 million shares 1997 1998 1999 2000 2001 2002 Value SEK 6,
Slide 25: SCA in relation to its peers
SCA in relation to its peers 400 % % last since 350 12 mos Jan.1 300 SCA 35 11 250 Jefferson Smurfit 32 28 200 Kimberly Clark 0 0 150 Georgia Pacific -41 -26 100 M ’02 Ju 2 1 2 Se 1 2 Ja 1 02 Ju 2 1 1 2 2 ’0 ’0 ’0 ’0 ’0 ’0 ’0 ’0 ’0 ’0 ’0 l’ b n p n ug ug ec ay ov ct pr Fe ar O D A M A A N Note: Pric
Slide 26: Ericsson
Ericsson Trust diagram 19970102 - 20020809 < norm (109, ERIC-A (Senast)) Dag < norm (109, SAX (Senast)) Dag (c) SIX AB 2002 951.8 700 Telecom 500 300 Industrivärden’s holding as per June 30: 100 199 million shares Value SEK 3,064 M 36.2 Share of capital 2.5%, votes 28% 1997 1998 1999 2000 2001 2002
Slide 27: Continued strong growth in subscribers
Continued strong growth in subscribers No. mobile subscribers worldwide 1999-2006P (MST) 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 1999 2000 2001 2002 2003 2004 2005 2006 Source: Ericsson forecast AN_Pres_KV202_eng
Slide 28: Global trend of continued growth and rising profitability for mobile operators
Global trend of continued growth and rising profitability for mobile operators Sales growth 1H02*/1H01, % Operating margin before depreciation 1H02* vs 1H01,% Omsättningstillväxt Sales growth, % % 1H02/1H01 EBITDA % 1H02 1H01 Telefonica Moviles 15% Telefonica Moviles 42% 42% Vodafone 12% Vodafone 27
Slide 29: Considerably lower investment levels have slowed the negative debt trend
Considerably lower investment levels have slowed the negative debt trend Investments/sales 1H02*/1H01, % Net debt-equity ratio 1H02* vs 2H01,% Investeringar/Omsättning Investments, sales % 1H02 1H01 Nettoskuldsättningsgrad Net debt-equity ratio % 1H02 2H01 Telefonica Moviles 10% 17% Telefonica Movil
Slide 30: Ericsson in relation to its peers
Ericsson in relation to its peers 60 50 40 % % last since 12 mos Jan. 1 30 Motorola -33 -20 Nokia -40 -54 20 Lucent -77 -76 Ericsson -84 -85 10 Nortel -87 -87 0 M 02 1 2 1 2 2 1 1 2 1 02 02 2 ’0 ’0 ’0 ’0 ’0 ’0 ’0 ’0 ’0 ’0 ’ r’ l’ b p n g g n ov c ay ct ar Ju Fe Ap Se Ja De Au Ju Au O M N Note: Price
Slide 31: Industrivärden's role in Ericsson's rights issue
Industrivärden’s role in Ericsson’s rights issue Total issue amount SEK 30 billion Industrivärden has committed to subscribe for SEK 3 billion - Of which, pro rata share SEK 700 M - Of which, SEK 2.3 billion will be subscribed only to the extent the rights issue is not fully subscribed AN_Pres_K
Slide 32: Timetable for Ericsson's rights issue
Timetable for Ericsson’s rights issue August 8 Last day for trading in shares with rights to subscribe in rights issue August 9 First day of trading in Ericsson ex-right August 15 First day of official trading in subscription rights First day for payment of issue price August 29 Last day of trading
Slide 33: Skandia
Skandia Trust diagram 19970102 - 20020809 1855.6 1400 < norm (141.5, SDIA (Senast)) Dag < norm (141.5, SAX (Senast)) Dag (c) SIX AB 2002 1000 Financial services 600 Industrivärden’s holding as per June 30: 200 48 million shares 138.1 Value SEK 2,000 M 1997 1998 1999 2000 2001 2002 Share of capital a
Slide 34: Skandia in relation to its peers
Skandia in relation to its peers 125 100 % % last since 12 mos Jan. 1 75 Sampo -29 -22 50 Nationwide -38 -31 Aegon -57 -64 25 Skandia -70 -64 0 M 02 1 1 2 2 2 1 1 2 1 2 02 2 ’0 ’0 ’0 ’0 ’0 ’0 ’0 ’0 ’0 ’0 ’0 ’ l’ b p n g g n ov ec ay ct pr ar Ju Fe Se Ja Au Au Ju O D A M N Note: Price trend in local
Slide 35: Industrivärden online
Industrivärden online Reuterskod INDUa.ST Bloombergskod INDUA SS Datastream kod 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.se / IR / Ask… / Info... Press release direct: www.waymaker.se