an_pres_kv408 nr 1 year-end report 2008 industrivärden, february 12, 2009 ”a long-term industrial...
TRANSCRIPT
AN_Pres_KV408 Nr 1
Year-End Report 2008Industrivärden, February 12, 2009
”A long-term industrial developer of listed companies”
AN_Pres_KV408 Nr 2
Company in brief Established: 1944
Stock: 386 million shares, listed on SSEX
Market cap: Approx. USD 2.4 bn (SEK 20 bn)
Free float: Approx. 40% of shares
No. shareholders: 48,000
Average daily trading vol.: Approx. 650,000 shares
Coverage: Handelsbanken Markets, Magnus Dalhammar +46 8 701 10 00Enskilda Securities, Andreas Joelsson, +46 8 52 22 95 00UBS Nordic, Olof Cederholm +46 8 453 73 00
Low administrative expenses, USD 10 M or 0.2% of AUM
“Holding company” tax status: no tax on capital gains, dividends received/rendered are taxable/deductible
Discount to NAV approx. 24%
AN_Pres_KV408 Nr 3
Industrivärden at a glance
Our strengths Our portfolio
Holding Market Share of Share of value, SEK bn votes, % portfolio, %
Handelsbanken 8.2 23 10,6
Sandvik 6.7 19 11.5
SCA 4.7 14 29.8
Ericsson 4.4 13 13.3
SSAB 3.6 10 21.2
Volvo 3.1 9 8.5
Skanska 2.3 7 26.7
Indutrade 1.0 3 36.9
Munters 0.4 1 14.6
Höganäs 0.2 1 8.1
Other 0.1 <1
Total 34.7
Favorable and competitive long-term return with limited risk
As per December 31, 2008
Blue chip portfolio
Long-term active ownership
Good exchange of influence
Extensive structural capital
AN_Pres_KV408 Nr 4
Development 2008 in brief
Net asset value SEK 23.9 bn or SEK 62/share
a decrease of SEK 30.9 bn, or 56% for the year
Total return of -47% for the Class A shares
8 percentage points lower than the return index
Net debt was SEK 10.8 bn
a decrease of SEK 0.2 bn during the year
A tough year, but with continued favourable long-term return
AN_Pres_KV408 Nr 5
* Change in NAV per Industrivärden share, dividends reinvested.
The reporting period in summary
2009 2008 2007 Equities Portfolio Feb. 9 Dec. 31 Dec. 31
– market value, SEK M 37,370 34,744 65,844
Transactions– acquisitions, SEK M 12 4,644 8,834 – sales, SEK M - 4,314 2,124 – net, SEK M 12 330 6,710
Debt– net debt, SEK M 10,878 10,813 10,951– change in net debt 65 -138 6,408– net debt equity ratio 29.1% 31.1% 16.6%
Net asset value– net asset value, SEK M 25,482 23,931 54,837 – change in NAV* 8% -55% –3% – total return index 4% -39% –3%
The stocks total return
– Class A-share -5% -47% –14% – total return index -4% -39% –3%
Equities portfolio
Net debt
Net asset value
Discount A-share
Discount C-shareDiscount A/C
Dec. 312007
170-28
142
20%26%22%
SEK per share
Feb. 92009
97-28
69
21%30%24%
Dec. 312008
90-28
62
7%19%11%
AN_Pres_KV408 Nr 6
Development of net asset value
-20
-10
0
10
20
30
40
50
60
70Mdkr
Aktieportföljen Nettoskuld Substansvärde
142151
125
95
125
108
87
62
697863
102
142149
0
20
40
60
80
100
120
140
160
Kr/aktieSEK M
Net debt Net asset valuePortfolio
SEK/share
AN_Pres_KV408 Nr 7
Reallocations in portfolio 2008
Purchases: SEK 4.6 bn
Of which Volvo A: SEK 1.8 bn
Sales: SEK 4.3 bn
Of which Ericsson B Handelsbanken A SEK 1.5 bn Skanska B SSAB A Volvo B
2008
Purchases: SEK 8.8 bn
Of which Volvo A: SEK 4.2 bn SSAB A: SEK 2.5 bn
Sales: SEK 2.1 bn
Of which Tandberg Television: SEK 0.7 bn
2007
Purchases: SEK 3.2 bn
Of which Volvo A: SEK 1.8 bn Tandberg Television: SEK 0.7 bn
Sales: SEK 2.1 bn
2006
AN_Pres_KV408 Nr 8
Buildup of ownership position in Volvo
Strong position with good global presence
Innovative, customer-adapted product development
Major potential through greater need for transports and infrastructure brought about by globalization
Unique expertise in diesel engines enables synergies and development
Industrivärden’s holding
Shares: 70 million Class AMarket value: SEK 3.1 bnShare of votes: 8.5%Share of capital: 3.3%
AN_Pres_KV408 Nr 9
Volvo – well-suited for our portfolio profile
Business models that can be applied in several markets
Orientation toward niches with good profitability
Good ability to generate cash flows
Major potential for increased value through active ownership
AN_Pres_KV408 Nr 10
A portfolio of industry-leading companiesA portfolio of industry-leading companies
Portfolio share and value as per December 31, 2008 (Holding since).Portfolio share and value as per December 31, 2008 (Holding since).
Leading player in complexconstruction projects7%7% or SEK 2 bn (1987) or SEK 2 bn (1987)
Global consumer productsand packaging company14%14% or SEK 5 bn (1950) or SEK 5 bn (1950)
World leading producerof specialty steel10%10% or SEK 4 bn (1994) or SEK 4 bn (1994)
World’s largest supplier of systems for mobile telecom 13%13% or SEK 4 bn (1944) or SEK 4 bn (1944)
Successful universal bankwith international growthbased on a Nordic base23%23% or SEK 8 bn (1963) or SEK 8 bn (1963)
Leading high-tech company in materials technology19%19% or SEK 7 bn (1997) or SEK 7 bn (1997)
Leading producer ofheavy vehicles9%9% or SEK 3 bn (1987) or SEK 3 bn (1987)
Technology trading companyactive in northern Europe3%3% or SEK 1 bn (1989) or SEK 1 bn (1989)
World leader in moisture control1%1% or SEK 0.4 bn (2002) or SEK 0.4 bn (2002)
Leading metal powder producer1%1% or SEK 0.42 bn (2004) or SEK 0.42 bn (2004)
AN_Pres_KV408 Nr 11
Equities portfolio as per February 9, 2009 Value distribution
% of portfolio
% of capital
% of votes
Stock No. shares SEK M SEK/share valuein
companyin
company
Sandvik 136,431,200 7,776 20 21 11.5 11.5
Handelsbanken AHandelsbanken B
64,995,564118,900
7,602 20 20 10.4 10.6
Ericsson A 74,400,000 5,394 14 14 2.3 13.3
SCA ASCA B
48,600,00022,200,000
4,820 13 13 10.0 29.8
SSAB ASSAB B
52,789,646121,794
4,166 11 11 16.3 21.2
Volvo A 70,218,284 3,195 8 9 3.3 8.5
Skanska ASkanska B
15,010,70015,314,800
2,350 6 6 7.2 26.7
Indutrade 14,757,800 1,299 3 4 36.9 36.9
Munters 10,950,000 416 1 1 14.6 146
Höganäs B 3,550,000 279 1 1 1011 8.1
Hemtex 3,700,000 73 0 0 12.6 12.6
Totalt 37,370 97 10
AN_Pres_KV408 Nr 12
Higher debt-equity ratio due to falling stock market values
SEK bn Q1:07 Q2:07 Q3:07 Q4:07 Q1:08 Q2:08 Q3:08 Q4:08 Feb:09
Portfolio value 70.6 76.7 77.9 65.8 59.3 52.2 44.4 37.7 xx.x
Debt 4.8 6.6 10.8 11.1 10.8 10.4 10.6 10.8 xx.x
Debt-equity ratio, % 6.8 8.6 13.9 16.8 18.3 19.8 23.8 31.1 xx.x
AN_Pres_KV408 Nr 13
Loans at fixed interest with favorable terms provide good predictability
Bank loans totalling SEK 10.8 bn with fixed interest
Average term of fixed interest 4.6 years
Average interest rate of 4.7%
No terms dependent on external ratings
Dividends received and redemption programs in 2008 generated a liquidity surplus of approximately SEK 0.5 bn after deducting the dividend payout and interest/management expense.
AN_Pres_KV408 Nr 14
Financial position
-1,0
1,0
3,0
5,0
7,0
9,0
11,0
13,0
15,0
30-ju
n-01
30-s
ep-0
1
31-d
ec-0
1
31-m
ar-0
2
30-ju
n-02
30-s
ep-0
2
31-d
ec-0
2
31-m
ar-0
3
30-ju
n-03
30-s
ep-0
3
31-d
ec-0
3
31-m
ar-0
4
30-ju
n-04
30-s
ep-0
4
31-d
ec-0
4
30-m
ar-0
5
30-ju
n-05
30-s
ep-0
5
31-d
ec-0
5
31-m
ar-0
6
30-ju
n-06
30-s
ep-0
6
31-d
ec-0
6
30-s
ep-0
7
31-d
ec-0
7
31-m
ar-0
8
30-ju
n-08
30-s
ep-0
8
31-d
ec-0
8
09-fe
b-09 0%
5%
10%
15%
20%
25%
30%
35%
Net debt (SEK bn) Net debt equity ratio
SEK 10.9 bn
29.1%
AN_Pres_KV408 Nr 15
Good long-term growth in value
Total return index (Index)
The average annual excess return for last ten years was 2%-points/year
As per Febr. xx, 2009
Industrivärden share
Total Return Index (SIXRX)
(c) SIX AB 2009
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 09
100
150
200
250
300
391 350
AN_Pres_KV408 Nr 16
Industrivärden online
Press release direct:www.industrivarden.net / IR / Ask… / Info...
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Reuters code INDUa.STBloomberg code INDUA SSDatastream code W :IU
www.industrivarden.net
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