Annual Report • Feb 25, 2011
Annual Report
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annual report
financial calendar 2011
Interim reports will be released
All reports will also be published on Industrivärden's website: www.industrivarden.net.
See also the section Stock market information, page 52.
The Annual Report is distributed to shareholders who have notified the Company that they would like to receive it in printed form. Information on the 2011 Annual General Meeting can be found on page 53.
This Annual Report is a translation of the Swedish original.
Creating long-term growth requires strength, perseverance and favorable conditions. Through a strong commitment backed by deep knowledge and experience, Industrivärden actively contributes to value growth in its portfolio companies.
With more than 60 years of experience in active ownership, Industrivärden has a unique position in creating long-term value in listed Nordic companies. The business is based on extensive experience, knowledgeable employees, a strong business model and a large network. Our portfolio companies are leaders in their respective areas and all have strong global positions. With Industrivärden they have a professional and active owner – to the benefit of their long-term value as well as growth in the value of Industrivärden's stock.
Since its market introduction in 1945, Industrivärden's stock has generated an annual total return of 15%, which is well above the market average 13%. For 2010 the total return was 40% for the Class A shares and 48% for the Class C shares compared with 27% for the market as a whole.
Industrivärden was established by Handelsbanken in 1944. The aim was to distribute the shareholdings obtained following the market crash in the 1930s to the bank's shareholders. This business proved to be successful and over time evolved into an effective form of managing pension capital for employees of Handelsbanken and SCA. Owing to Industrivärden's proven ability to create sustained shareholder value, ownership of the Company has broadened over time to include a large number of public and private pension managers. In addition, Industrivärden's stock has become a popular investment for foundations and other long-term investors, as well as for large numbers of private investors.
To be the preferred choice for investors with a Nordic focus seeking a long-term, competitive return with balanced risk and low costs.
To create shareholder value based on active ownership and a professional investment operation.
Industrivärden creates value through active ownership and a professional investment operation. Active ownership is based on Industrivärden's model for value creation in its portfolio companies. The investment operation is built upon a structured process of continuous analysis of existing and potential holdings.
Industrivärden is one of the Nordic region's leading holding companies. Its goal is to generate high growth in net asset value over time and thereby give the shareholders a total return which, over the long term, is higher than the average for the Stockholm Stock Exchange.
Board representation and a dialog with company management
Development recommendations
Substantial structural capital
Leveraged exchange of influence
Companies with favorable value potential
As 2010 progressed it became increasingly apparent that the world economy was recovering at a pace that few had expected during the turbulent 2009. During the year it also became clear that growth was being driven by the so-called BRIC countries, headed by China. The traditional engines of growth, such as the U.S. and Europe, continue to struggle with large public deficits and unemployment. It now appears that growth is getting under way even in these regions. So there is reason to take a positive view of the current development, despite the lingering effects of the euro crisis caused by problems with weak government finances and a fragile banking system, primarily in southern Europe. The global economy is still being stimulated by historically low interest rates from central banks. This, together with
sharply higher commodities prices, is increasing the risk for inflation. At the same time, unemployment is high in large parts of the Western world, which suggests that we won't be seeing the high level of inflation and interest rates that we experienced during the 1970s. The situation today is different than for two years ago, and there is reason to approach 2011 with optimism, even though e.g. current developments in North Africa are creating uncertainty.
Through hard work, Industrivärden's portfolio companies have attained leading positions in their respective areas. Their operations have wide international coverage, with strong positions in the world's largest economies, such as North America, Europe and Japan – areas that account for more than half of global GDP. Moreover, our portfolio companies have a growing share of their sales in emerging markets around the world – countries which today account for about a third of their sales. Granted, further developing these positions is a challenge, but also a tremendous opportunity. By looking forward and with a longer time perspective, you can get a feeling for what development and urbanization of the world's growth countries can entail. The United Nations projects that the world's population will grow by 20%, to 8.5 billion people, in the coming 20 years – essentially all in growth countries. During the same period, global GDP is expected to double in real terms. Rising prosperity in countries like China, India, Brazil and Russia is creating opportunities for Industrivärden's portfolio companies that are active primarily in industrial and infrastructure products, which are key areas associated with rapidly growing prosperity in emerging countries.
•Net asset value at year-end was SEK 149 (111) per share, an increase of 37% (87%) for the year including reinvested dividends.
•During the last ten years, the average annual total return for the Class C shares was 7%, which exceeded the return index by 1 percentage points per year.
highlights 2010
•The holding in Munters was sold for SEK 843 M; the total return during Industrivärden's ownership was 50%.
•As in previous years, income from shortterm trading covered Industrivärden's management costs.
•In January 2010 Industrivärden issued fiveyear convertible bonds worth EUR 500 M, and in January 2011 Industrivärden issued additional six-year convertible bonds valued at EUR 550 M in order to obtain lowcost financing with the opportunity to issue new equity.
•The Board of Directors proposes a dividend of SEK 4.00 (3.00) per share, which corresponds to a dividend yield of 3.3% (3.4%) for the Class A shares.
I am highly confident that our portfolio companies – through their strong positions – have the conditions and ability to capitalize on these opportunities to the benefit of their shareholders.
In light of our favorable performance in 2010, we started 2011 in the same way we did a year earlier, by issuing convertible bonds at favorable terms. In so doing we have been able to further build upon our financial strength. The principal amount is approximately SEK 5 billion, or EUR 550 M, and the term is six years with a coupon of 1.875%. The price was set at a premium of 35%, corresponding to a conversion price of SEK 162 per share. With
| 2010 | 2009 | |
|---|---|---|
| Equities portfolio | ||
| – market capitalization as per | ||
| December 31, SEK M | 71,092 | 53,548 |
| – total return1 | 31% | 63% |
| Borrowing | ||
| – interest-bearing net debt as per | ||
| December 31, SEK M | 13,401 | 10,766 |
| – debt-equity ratio | 18.9% | 20.1% |
| – average interest expense | 3.8% | 4.4% |
| Net asset value as per | ||
| December 31, SEK M | 57,691 | 42,782 |
| Net asset value as per | ||
| December 31, SEK/share | 149 | 111 |
| – change2 | 37% | 87% |
| Management cost | 0.13% | 0.16% |
| Dividend, SEK/share3 | 4.00 | 3.00 |
| Dividend yield, Class A shares | 3.3% | 3.4% |
| Dividend yield, Class C shares | 3.4% | 3.6% |
| Total return, Class A shares | 40% | 64% |
| Total return, Class C shares | 48% | 76% |
| Total return index | 27% | 53% |
1) Total return for the equities portfolio including dividends received.
2) Change in net asset value taking reinvested dividends into account. 3) Dividend for the respective financial years. For 2010 as proposed by the Board of Directors.
net asset value of SEK 151 per share at the time of the issue, this represents a premium of 7% to underlying net asset value, or 12% after full conversion of the first bond issue.
In January 2010 we issued convertible bonds for approximately SEK 5 billion, or EUR 500 M, with a five-year term and a coupon of 2.5%. The conversion price was set at SEK 115.50 per share, or at a premium of 37.5% to the share price, which was level with net asset value at the time of the issue.
Through the two convertible bond issues we have obtained favorable debt financing at low interest rates. Moreover, if Industrivärden achieves favorable growth in value, the Company will carry out two issues of equity at a par with or above net asset value. Naturally, this is an attractive opportunity for Industrivärden's shareholders, since our discount to net asset value makes it difficult to raise new capital by issuing new equity. Through these two bond issues we have been able to substantially increase our financial flexibility. The share dilution (number of shares) upon full conversion is 11% and 8%, respectively. The financial dilution is limited, however. Thus far we have invested SEK 3 billion of the SEK 5 billion from the first issue, generating growth in value of about 40%, compared with index growth of 23%. As earlier, we see great opportunities to manage the additional capital in a manner that creates value for the shareholders.
2010 was a good year for Industrivärden's shareholders. Net asset value including dividends rose 37% to SEK 149 per share. The Class A and Class C shares generated total returns of 40% and 48%, respectively, compared with 27% for the market's return index. This can be credited to the favorable performance of our portfolio companies, good investments during the year and financial leverage.
In 2010 we purchased additional shares in Volvo for SEK 1.8 billion. This included a purchase of 12.5 million shares for SEK 64 per share through exercise of a total return swap agreement that we entered into in autumn 2009. Today we have an average cost of SEK 89 per share for our holding in Volvo, which translates to growth in value of approximately SEK 1.8 billion. We believe that Volvo has very favorable development prospects. Despite the negative effects of the financial crisis on industrial companies like Volvo, we stuck to our long-term analysis with the clear ambition of being a long-term active owner of Volvo. Our investment in Volvo is a prime example of Industrivärden's business model. We work longterm and we take our ownership responsibility. Through active board work and ownership, we are participating in Volvo's development.
SALE OF MUNTERS AT 47% BID PREMIUM In November 2010 we sold our holding in Munters for approximately SEK 850 M. Munters had not developed at the pace we had anticipated when we took a position in the company seven years ago. We actively contributed to restructuring measures and the divestment of the Moisture Control Services business, which opened up for a bid
for the company. In the end, Nordic Capital acquired Munters for SEK 77 per share, corresponding to a premium of 47% above the stock's value before the bid process began in November. The total return from our investment in Munters was 50%.
In 2010 our short-term trading generated a profit of SEK 114 M (100) and again covered our total management costs. We have now earned more than SEK 900 M from this operation since its start in 2003.
With the proposed dividend of SEK 4.00 (3.00) per share, we continue to achieve our goal of paying a higher dividend yield than the average for the Stockholm Stock Exchange. The proposed dividend represents a dividend yield of 3.3% for the Class A shares and 3.4% for the Class C shares, compared with 3.2% for the Stockholm Stock Exchange.
Today Industrivärden is well positioned for the future. Our portfolio companies have leading positions in their respective business areas, global coverage and a growing presence in the world's growth regions. Through influence and active ownership based on knowledge and involvement, we are helping to further strengthen this development. Industrivärden now also has substantial financial strength. Altogether this gives us a good starting point to continue creating competitive value for our shareholders.
Anders Nyrén, President and CEO, February 2011
I ndustrivärden's goal is to generate high growth in net asset value over time and to deliver a total return to the Company's shareholders which, over the long term, is higher than the average for the Stockholm Stock Exchange (NASDAQ OMX Nordic, Stockholm). Industrivärden has achieved this goal by a good margin, and Industrivärden's stock stands up well in comparison with similar long-term investment alternatives.
Industrivärden works according to a well established model for structured investment activities and active value creation in its portfolio companies. Using this as a foundation and with a long-term approach, Industrivärden has generated favorable growth in net asset value in both the short- and long-term perspectives. This favorable performance, combined with the Company's policy of paying a dividend yield that is higher than the average for the Stockholm Stock Exchange, has
enabled Industrivärden to deliver an attractive and competitive total return to its shareholders.
For long periods of time – including the entire time since the Company's stock market introduction in 1945 – Industrivärden's stock has generated a higher total return than the average for the Stockholm Stock Exchange. In 2010 the total return for the Class A and Class C shares was 13 and 21 percentage points higher, respectively, than the return index.
| 2010 | Five years | Ten years | Fifteen years | Twenty years | |
|---|---|---|---|---|---|
| Net asset value, % | 34 | 4 | 1 | 9 | 9 |
| Net asset value including reinvested dividends, %2 | 37 | 7 | 4 | 12 | 12 |
| 1) Yearly average. |
2) Taking into account reinvested dividends, a measure of total value growth is obtained, i.e., how net asset value would have developed if dividends had remained in the Company and grown in pace with the equities portfolio.
| MSCI Total Return |
||||||
|---|---|---|---|---|---|---|
| Industrivärden | Return index, % | Industrivärden4 | Europe,4 % | |||
| Annual total return3 | Class A, % | Class C, % | SIXRX | Class A, % | Class C, % | |
| 20 years | 13 | 14 | 13 | – | – | – |
| 15 years | 15 | 16 | 12 | – | – | – |
| 10 years | 6 | 7 | 6 | 6 | 7 | 0 |
| 5 years | 6 | 8 | 8 | 7 | 9 | 1 |
| 1 year | 40 | 48 | 27 | 61 | 70 | 12 |
3) Growth in value including reinvested dividends. 4) Morgan Stanely Index. All data denominated in EUR.
Industrivärden's core business is to invest in listed Nordic companies with good potential for value appreciation, and through active ownership contribute to continuous growth in value of its portfolio companies. The role as active owner requires that Industrivärden can exercise significant ownership influence and entails a long-term investment horizon. An active ownership perspective fosters a keen understanding of the portfolio companies' businesses, operating environments and continuing development. Contributing to value creation in the portfolio companies increases asset values while reducing Industrivärden's equities risk.
Industrivärden has many years of experience in value-creating active ownership and works according to a tried and tested business model. Ultimately Industrivärden's success can be credited to it's employees and established work processes.
The investment process is designed to evaluate existing investments against set target values and to provide a continuous and current picture of new investments that meet the set investment criteria. The aim is to be able to act quickly when investment opportunities arise.
Investments are made in companies with proven business models and considerable opportunities for future growth in value.
Industrivärden's influence in its portfolio companies is grounded in significant ownership stakes and a strong position of trust. From this foundation, an active ownership role is exercised through interaction with other major owners in the aim of finding ways to build value in the shareholdings. Active ownership is exercised by directors on the boards of the portfolio companies who have ties to Industrivärden, through participation in the respective companies' nominating processes, and through direct dialog between Industrivärden's investment organization and leading representatives of the portfolio companies. Active ownership is conducted from a platform of continuous, fundamental analysis and an action plan for value creation.
The work is conducted from an overarching ownership perspective and focuses on such matters as strategy, company structure, capital structure, corporate governance, and so on. One of the most central matters for the respective companies' boards is to appoint the CEO and continuously evaluate the work of the company's management.
Active ownership is ultimately conducted through board representation. The portfolio company's chairman normally has ties to Industrivärden, which as a rule is represented by at least one director on the company's board. Such directors are normally also members of Industrivärden's board. A detailed presentation of the Industrivärden board of directors can be found on page 49.
Doctor of Technology, Honorary Ph.D. Chairman of Industrivärden, SCA, Skanska and SSAB. Vice Chairman of Ericsson. Director of Svenska Handelsbanken. Former CEO of SCA, with experience from several executive positions at SCA.
M.Sc. Materials Science, B.Sc. Business Administration.
President and CEO of Sandvik. Former CEO of SSAB, with experience from several executive positions at Outokumpu and Avesta, among other companies.
J.S.D., Honorary Doctor of Economics and Business Administration, Professor. Professor of Business Law and former President of Lund University.
MBA, Honorary Doctor of Economics. Director of Skanska. Former CEO of Mölnlycke Healthcare, United Distillers and Euroc.
BA Chairman of Handelsbanken. Former CEO of Nordstjernan, Esselte and Swedish Match.
M.Sc. Eng., MBA, Honorary Doctor of Economics, Honorary Doctor of Engineering. President and CEO of L E Lundbergföretagen. Vice Chairman of Svenska Handelsbanken. Director of Sandvik. Active in L E Lundbergföretagen since 1977.
M.Sc., Honorary Doctor of Economics. President of the Crafoord Foundation. Former CEO of Cardo, with experience from executive positions at Wilhelm Sonesson and other companies.
MBA, U.S. MBA.
President and CEO of Industrivärden. Chairman of Sandvik. Vice Chairman of Svenska Handelsbanken. Director of Ericsson, SCA, SSAB and Volvo. Former Executive Vice President of Skanska, Nordbanken and Securum. Former CEO of OM International and other companies.
Also pictured above is Sven Unger, Company Secretary.
The composition of the boards of the portfolio companies is of central importance, which is why Industrivärden participates actively in the preparation work behind recommendations of directors for company boards. Normally, the nominating committee chair for a portfolio company has ties to Industrivärden, which as a rule is represented by at least one director. Industrivärden's Executive Vice President, Carl-Olof By, is responsible for corporate governance and represents Industrivärden on the portfolio companies' nominating committees.
Industrivärden has a lean organization that is distinguished by high flexibility and short decision-making channels. The Company has 20 employees, eight board members and an extensive contact network with specialist know-how. Operations are project-oriented and involve personnel from both the investment organization and staff functions.
Each portfolio company and potential new investment candidate is monitored by an investment team. The investment team performs a company analysis that culminates in a so-called fundamental analysis. Based on this analysis, the team continuously updates an action plan, which serves as a platform for the design, implementation and evaluation of
Industrivärden's active ownership. The aim is primarily to identify and describe various opportunities for value growth as well as strategic measures for achieving this value.
All analysis is based on external information material. Each investment team presents its action plan on a continuous basis to the director or directors with ties to Industrivärden serving on the board of the portfolio company. In this way, Industrivärden's representatives are provided with a current picture of identified opportunities and measures. By working with sound, well-researched ideas, Industrivärden can exert influence on the respective portfolio companies' boards. In this way, over time parts of the action plans can be put to concrete work in the portfolio company for future value creation.
Members of the Executive Management during a visit to Ericsson's operations in San José, California.
Carl-Olof By Executive Vice President, BA, M. Pol. Sc.
Fredric Calles Head of Market Operations, MBA
Anders Nyrén President and CEO, MBA, U.S. MBA
Sverker Sivall Communications Manager and IR Officer, MBA
Martin Hamner Chief Financial Officer, MBA
The CEO is responsible for Industrivärden's day-to-day administration, which is handled by the Company's Executive Management. This work involves strategic, organizational and financing matters as well as controls and follow-up, among other things. Industrivärden's Executive Management also serves as the Investment Committee, which adopts action plans and makes investment decisions within set mandates. Representatives of the Executive Management participate on the investment teams as investment heads. A detailed presentation of the members of the Executive Management can be found on page 50.
Industrivärden has a long tradition of corporate responsibility, both in its role as an active owner and as a listed company. A fundamental value held by Industrivärden is that social
and environmental responsibility create business opportunities that contribute to sustained shareholder value. All companies shall conform to laws and generally accepted regulations, and are responsible for drawing up relevant guidelines with quantifiable goals.
Industrivärden has a separate function that conducts various market operations in the aim of supporting the investment activities with market information and executing investment decisions. In addition, in an effort to generate excess returns, short-term trading is conducted in equities and equity-related instruments. Value is created primarily through derivative transactions in the shares of existing portfolio companies.
Meeting with representatives of SCA's company management.
Sverker Martin-Löf, Chairman of the Board, and Anders Nyrén, director, have ties to Industrivärden. Nine board meetings were held in 2010. Following were some of the more important matters of business: •Appointment of Martin Lindqvist as CEO.
In 2010, Industrivärden's company team held seven meetings with senior executives of SSAB. The team participated in several capital market days held by the major steel companies and paid a number of company visits to various players in the industry around the world.
In 2010, continuous, customary dialog was held with other major shareholders of SSAB.
Carl-Olof By, Nominating Committee chair, represents the shareholder Industrivärden. In 2009 three Nominating Committee meetings were held, and the Nominating Committee's recommendation for election of board members was presented in February 2010. At the Annual General Meeting in March 2010, the directors were elected in accordance with the Nominating Committee's recommendation.
The 2010 Annual General Meeting was held on March 26, whereby the following resolutions were made:
primarily for component manufacturing in the automotive
industry.
| Investment case | Strategic decisions |
|---|---|
| SANDVIK Through a niche focus and strong R&D position, Sandvik has established a world-leading position in materials technol ogy with products primarily for the manufacturing and mining industries. |
• Olof Faxander new CEO. • Acquisition-driven growth in selected areas. • Powerful adaptation of costs and production capacity as a result of the financial crisis. • Strengthened positions in emerging markets. |
| HANDELSBANKEN A well developed universal banking business and decentral ized branch network with local customer responsibility contribute to high customer satisfaction which enables good profitability. |
• Consistently applied business model. • Higher profitability than the average for peer competitors. • Higher market shares, improved productivity and strengthened positions in a tough market. • Organic growth in priority markets in the Nordic countries and the UK. |
| VOLVO Through innovative, customer-adapted product develop ment and high quality, Volvo has attained a world-leading position in commercial transport solutions. |
• Acquisition-driven expansion and broadened product programs in Asia. • Development of new, own platform of medium-duty engines. • Continued work on lowering costs and increased productivity. |
| SCA Europe's leading producer of hygiene products, with a fast growing range of personal care products, and of packaging. Europes largest private forest owner. |
• Restructured product portfolio with focus on growth in the hygiene segment. • Strengthened global and regional brands. • Accelerated pace of innovation. |
| SSAB World-leading position in niche quenched steels and ad vanced high-strength sheet segments creates solid foundation for growth and sustained high profitability. |
• Martin Lindqvist new CEO. • Acquisition in North America has increased capacity and enables continued international expansion. • Greater focus on growth markets for specialty products. |
| ERICSSON The market's largest and most profitable supplier of mobile infrastructure, with a leading position in telecom develop ment. |
• Strong global position in mobile broadband and the next generation of telecom systems. • Goal-oriented acquisitions and contracts make the company North America's leading supplier of network systems. • Good growth and profitability in services and multimedia solu tions. |
| SKANSKA Comprehensive know-how in construction combined with a process focus has created a leading construction services company with world-class value-creating project develop ment. |
• Efficient construction operation generates good cash flows. • Successful model for value-creating project development. • Strategic focus on environmentally adapted, energy-efficient solutions. |
| INDUTRADE The combination of sales of industrial, high-tech consuma bles, good organic growth and a highly refined model for acquisition-based growth has resulted in impressive profit ability growth. |
• Flexibility through a decentralized business model. • Continued value-creating acquisitions. • Greater share of proprietary brands is strengthening profitability. |
| HÖG ANÄS Market leader in a growing niche of metal powders, used |
• Industry leader in cost- and production efficiency. |
• Increased activity in geographic growth regions.
with customers.
• Focus on development of new components in collaboration
| Ownership focus | Board member(s) with ties to Industrivärden |
Nominating committee representative/Responsible on investment team |
|---|---|---|
| Earnings improvement through organic growth combined with continuous ac quisitions and efficiency-improvement measures. |
Anders Nyrén (Chairman) and Fredrik Lundberg |
Carl-Olof By (nominating committee chair) Jens Melander (Investment Manager) |
| Good profitability and organic growth with broadened geographic base. |
Hans Larson (Chairman), Sverker Martin-Löf, Anders Nyrén (Vice Chair man) and Fredrik Lundberg (Vice Chairman) |
Carl-Olof By (nominating committee chair) Erik Röjvall (Investment Manager) |
| Profitability through consolidation of acquired units and adaptation to stronger business climate. |
Anders Nyrén | Carl-Olof By (nominating committee member) Jens Melander (Investment Manager) |
| Profitability through greater share of Personal Care products and efficiency improvement measures in Packaging and Forest Products. |
Sverker Martin-Löf (Chairman) and Anders Nyrén |
Carl-Olof By (nominating committee chair) Erik Röjvall (Investment Manager) |
| Profitability restored through continued expansion in the niche high-strength steel segment. |
Sverker Martin-Löf (Chairman) and Anders Nyrén |
Carl-Olof By (nominating committee chair) Jens Melander (Investment Manager) |
| Growth and improved profitability based on the company's leading position in end to-end telecommunications solutions. |
Sverker Martin-Löf (Vice Chairman) and Anders Nyrén |
Carl-Olof By (nominating committee member) Peter Nyström (Team Manager) |
| Continued favorable profitability for the construction operations combined with selective expansion in value-creating projects. |
Sverker Martin-Löf (Chairman) and Finn Johnsson |
Carl-Olof By (nominating committee chair) Erik Röjvall (Investment Manager) |
| Favorable profitability growth through continuous development of the company's unique business model. |
Bengt Kjell (Chairman) | Carl-Olof By (nominating committee chair) Madeleine Wallmark (Team Manager) |
| Broadened product offering generating growth and improved profitability. |
Bengt Kjell | Carl-Olof By (nominating committee chair) Jens Melander (Investment Manager) |
Net asset value is a measure of the shareholders' total net worth in the Company, defined as the market value of the equities portfolio less interest-bearing net debt.
At year-end net asset value was SEK 57.7 billion (42.8), or SEK 149 (111) per share. Net asset value including reinvested dividends grew 12% annually, compared with 13% for the return index during the twenty-year period 1991–2010.
The long-term development of net asset value can be seen in the chart on page 19.
Industrivärden's equities portfolio comprises large shareholdings in Sandvik, Handelsbanken, Volvo, SCA, SSAB, Ericsson, Skanska, Indutrade and Höganäs, all of in which Industrivärden serves as a long-term active owner. The companies are characterized by industry-leading positions and a high level of international business.
The equities portfolio, valued at the market price as per December 31, 2010, had a market value of SEK 71.1 billion (53.5), corresponding to SEK 184 (139) per Industrivärden share.
During the year, stocks were purchased for SEK 2,547 M (–400) net. The largest stock purchases pertained to Volvo, for SEK 1,770 M, SSAB, for SEK 540 M, and Handelsbanken, for SEK 428 M. Major sales of stocks pertained to Munters, for SEK 843 M.
The shares in Volvo that were purchased in 2010, corresponding to 2.2% of the votes, were bought at an average purchase price of
SEK 78/share. On December 31, 2010, Volvo Class A shares were quoted at SEK 115/share.
Industrivärden's holding in Munters was sold to Nordic Capital through an all cash offer of SEK 843 M. The holding generated a total return of 50% during Industrivärden's ownership.
At year-end 2010 the market value of the equities portfolio was SEK 71,092 M (53,548), which exceeded cost by SEK 37,743 M (23,161). Taking purchases and sales into account, the value of the equities portfolio increased by 28% (56%) during the year, which was better than the Stockholm Stock Exchange's market index (OMXSPI), which gained 23% (47%) for the year.
Dividends received during the year totaled SEK 1,379 M (1,871). The total return for the portfolio, i.e., the change in value including reinvested dividends, was 31% (63%), which was 4 percentage points higher than for the return index (SIXRX).
Short-term derivative transactions and shortterm equity trading are conducted on a regular basis to enhance the return of the equities portfolio. Combined income from Industrivärden's short-term derivative transactions and equity trading amounted to SEK 114 M (100).
Interest-bearing net debt amounted to SEK 13.4 billion (10.8) at year-end 2010, corresponding to SEK 35 (28) per Industrivärden share. Of total net debt, SEK 4.2 billion consists of the loan portion of the convertible bonds that were issued in January 2010. Upon conversion, the debt is transformed to equity. A guideline for Industrivärden is that interest-bearing net debt should not exceed 20% of the market value of the equities portfolio over the long term. During the tenyear period 2001–2010, the debt-equity ratio ranged from a low of 6% in June 2002 to a high of 36% in March 2009. The net debtequity ratio at year-end 2010 was 19%, or 13% after full conversion of the convertible loan.
In January 2010 Industrivärden issued a fiveyear convertible loan worth EUR 500 M, which was oversubscribed. The aim was to take advantage of strong market conditions and good credit quality to obtain attractive financing with the opportunity to issue new equity. The convertible loan issue has increased Industrivärden's financial flexibility and preparedness to act on attractive investment opportunities.
In order to maintain good accessibility and a steady return, for the time being the proceeds from the loan have been invested in equities and used to pay down loans. The capital has been used for investments in portfolio companies offering favorable dividend yields and potential for growth in value – mainly Handelsbanken, SSAB and Volvo. The rest has been used to pay off loans that carried a higher interest rate than the convertible loan.
In January 2011 Industrivärden issued a sixyear convertible loan worth EUR 550 M in order to further increase its financial flexibility.
| SEK billion | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2008 | Dec. 31, 2007 | Dec. 31, 2006 |
|---|---|---|---|---|---|
| Equities portfolio | 71.1 | 53.5 | 34.7 | 65.8 | 63.3 |
| Interest-bearing net debt | –13.4 | –10.8 | –10.8 | –11.0 | –4.8 |
| Net asset value | 57.7 | 42.8 | 23.9 | 54.8 | 58.5 |
| Net asset value per share, SEK | 149 | 111 | 62 | 142 | 151 |
| Debt-equity ratio, % | 18.9 | 20.1 | 31.1 | 16.6 | 7.2 |
| Net asset value per share, SEK after full conversion | 144 | – | – | – | – |
| Debt-equity ratio, % after full conversion | 13.0 | – | – | – | – |
| Breakdown, SEK M | ||||||
|---|---|---|---|---|---|---|
| No. of shares | Market value | Cost | Share of portfolio value, % |
Share of capital in company, % |
Share of votes in company, % |
|
| Sandvik | 138,443,752 | 18,150 | 6,553 | 25 | 11.7 | 11.7 |
| Handelsbanken | 65,217,930 | 14,015 | 5,700 | 20 | 10.5 | 10.6 |
| Volvo | 92,991,812 | 10,713 | 8,284 | 15 | 4.4 | 10.7 |
| SCA | 70,800,000 | 7,487 | 2,578 | 11 | 10.0 | 29.5 |
| SSAB | 56,179,470 | 6,347 | 4,117 | 9 | 17.3 | 22.5 |
| Ericsson | 77,680,600 | 5,748 | 3,353 | 8 | 2.4 | 13.8 |
| Skanska1 | 32,111,326 | 4,280 | 2,025 | 6 | 7.6 | 27.8 |
| Indutrade | 14,727,800 | 3,417 | 102 | 5 | 36.8 | 36.8 |
| Höganäs | 3,550,000 | 934 | 637 | 1 | 10.1 | 8.1 |
| Total | 71,092 | 33,349 | 100 |
1) Skanska's Class A shares, which are not listed on the Stockholm Stock Exchange, have been assigned the same value as the Class B shares.
| Total return1 | ||||||
|---|---|---|---|---|---|---|
| Price change, % | Total return, % | 5 years, % | 10 years, % | 20 years, % | ||
| Sandvik | 52 | 53 | 16 | 16 | 18 | |
| Handelsbanken | 5 | 9 | 7 | 7 | 15 | |
| Volvo | 89 | 89 | 15 | 19 | 18 | |
| SCA | 11 | 15 | 5 | 8 | 11 | |
| SSAB | –7 | –7 | 8 | 20 | 20 | |
| Ericsson | 14 | 17 | –9 | –14 | 7 | |
| Skanska | 10 | 15 | 8 | 8 | 13 | |
| Indutrade2 | 72 | 77 | 25 | – | – | |
| Höganäs | 60 | 63 | 15 | 11 | – | |
| Equities portfolio | 28 | 31 | ||||
Index (OMXSPI): 23 Index (SIXRX): 27
1) Average annual total return.
2) Indutrade was listed on the stock market on October 5, 2005.
Equities portfolio Interest-bearing net debt Net asset value
Average annual growth in net asset value during the last ten- and twenty-year periods was 4% and 12%, respectively, including reinvested dividends.
I ndustrivärden's stock outperformed the market average in 2010. The total return for the year including reinvested dividends was 40% for Industrivärden's Class A shares and 48% for the Class C shares, compared with 27% for the market as a whole.
Trading volume of Industrivärden shares on the Stockholm Stock Exchange in 2010 was SEK 16 billion (12), corresponding to a turnover rate of 25% (18%) for the Class A shares and 91% (113%) for the Class C shares. Average daily trading volume was 252,000 Class A shares and 426,000 Class C shares.
CLASS C SHARES ADDED TO MSCI GS INDEX In November 2010 Industrivärden's Class C shares were included on the Morgan Stanley Global Standard Index, large cap. This has given rise to greater demand for Industrivärden's Class C shares as a result of extensive global index investments.
Industrivärden's dividend policy is to pay the shareholders a dividend yield that is higher than the average for listed Swedish stocks.
INDUSTRIVÄRDEN CONVERTIBLe loans
This goal has been achieved every year during the last ten-year period. The dividend should be well-balanced with respect to the goals, scope and risk of operations. The Board of Directors has proposed that the 2011 Annual General Meeting declare a dividend of SEK 4.00 (3.00) per share, corresponding to a dividend yield of 3.3% and 3.4%, respectively for the Class A and Class C shares.
Industrivärden's Class A and Class C shares are listed on the Stockholm Stock Exchange (NASDAQ OMX Nordic, Stockholm). Industrivärden's stock is listed in the large cap segment, consisting of companies with a market capitalization in excess of EUR 1 billion. Industrivärden has 49,000 shareholders (48,000). Foreign ownership in the Company is 10% (10%).
Each A-share carries entitlement to one vote, and each C-share carries entitlement to one-tenth of a vote. All shares carry equal entitlement to a share of the Company's assets and earnings.
Information on shareholdings of Company directors, members of the executive management and senior executives is provided on pages 49–50.
| Percentage of | |||
|---|---|---|---|
| Capital stock, |
|||
| Number of shares | SEK M | votes | shares |
| 268,547,404 Class A shares | 671.4 | 96 | 70 |
| 117,723,820 Class C shares | 294.3 | 4 | 30 |
| 386,271,224 shares | 965.7 | 100 | 100 |
The issues of convertible bonds that were decided on in 2010 and 2011 may increase the number of underlying shares by 74 million new Class C shares upon full conversion at the original conversion prices.
| Maximum number | ||||||
|---|---|---|---|---|---|---|
| Nominal value, EUR M | Conversion price, SEK | Fixed exchange rate, SEK | of additional Class C shares, millions |
|||
| Convertible loan 2010–2015 | 500 | 115.5 | 10.2258 | 44.3 | ||
| Convertible loan 2011–2017 | 550 | 162 | 8.8803 | 30.1 | ||
| DIVIDEND | ||||||
| SEK | 2010 | 2009 | 2008 | 2007 | 2006 | |
| Dividend | 4.00 1 | 3.00 | 4.50 | 5.00 | 4.50 | |
| Annual growth in dividend, % | 33 | –33 | –10 | 11 | 29 | |
| Dividend yield, Class A shares, % | 3.3 | 3.4 | 7.9 | 4.4 | 3.3 | |
| Dividend yield, Class C shares, % | 3.4 | 3.6 | 9.0 | 4.8 | 3.5 | |
| Dividend yield for Stockholm Stock Exchange, %2 | 3.2 | 2.8 | 4.5 | 4.0 | 3.0 |
1) Proposed by the Board of Directors.
2) Source: NASDAQ OMX. Preliminary figures for 2010 as per February 14, 2011.
| Percentage of | |||
|---|---|---|---|
| Number of | |||
| Largest shareholders | shares | capital stock | votes |
| L E Lundbergföretagen | 46,900,000 | 12.1 | 16.7 |
| Handelsbankens Pension Foundation | 29,800,000 | 7.7 | 10.6 |
| Handelsbankens Pension Fund | 29,350,000 | 7.6 | 10.5 |
| Jan Wallanders and Tom Hedelius Foundation | 25,800,000 | 6.7 | 9.2 |
| Swedbank Robur Mutual Funds | 23,186,667 | 6.0 | 1.0 |
| SCA Pension Foundation | 18,824,080 | 4.9 | 6.7 |
| SCA Group Holding | 10,525,655 | 2.7 | 3.8 |
| SCA Vorsorge-Treuhand | 9,514,630 | 2.5 | 3.4 |
| Skandia Liv | 7,725,416 | 2.0 | 0.3 |
| SCA Pension Foundation for salaried employees and foremen | 7,063,790 | 1.8 | 2.5 |
| Government of Norway | 5,595,620 | 1.5 | 1.7 |
| Fredrik Lundberg | 5,140,000 | 1.3 | 1.8 |
| Svenska Handelsbanken | 4,966,000 | 1.3 | 1.8 |
| Second Swedish Public Pension Fund | 4,560,359 | 1.2 | 0.3 |
| Third Swedish Public Pension Fund | 3,520,022 | 0.9 | 0.8 |
| Tore Browaldh Foundation | 3,410,000 | 0.9 | 1.2 |
| State Street Bank, Pension Fund | 3,225,097 | 0.8 | 0.4 |
| Oktogonen | 2,600,000 | 0.7 | 0.9 |
| AFA sjukförsäkring | 2,424,065 | 0.6 | 0.1 |
| Total above | 244,131,401 | 63.2 | 73.8 |
| Other Shareholders | 142,139,823 | 36.8 | 26.2 |
| Total Industrivärden | 386,271,224 | 100.0 | 100.0 |
1) Source: Euroclear.
The average annual total return during the last ten and twenty year periods was 7% and 14%, respectively.
Morgan Stanley index. All data denominated in EUR.
Shares: 138,443,752 Market value: SEK 18,150 M Share of votes: 11.7% Share of capital: 11.7% Share of equities portfolio: 25%
Sandvik is a global high-technology industrial group with advanced products and operations in 130 countries. The Group works in three business areas in which Sandvik has a world leading position. Tooling specializes in cemented carbide tools and high-speed steel for metal cutting. Mining and Construction specializes in machines and tools for the service, mining and construction industries. Materials Technology manufactures high value-added steel products based on advanced metals and ceramic materials. The Sandvik Group also includes the partly owned listed company Seco Tools (60% of the capital and 89% of the votes), which is active in metal cutting tools.
Sandvik's strategy is based on a number of strength factors: unique know-how in materials technology and about customers' processes, advanced R&D, high value-added products, in-house manufacturing, direct sales to end customers, efficient logistics systems and a strong corporate culture. Sandvik's products and services are designed to contribute to improvements in customers' productivity and profitability. Sandvik is a global company, but works as a local partner.
SANDVIK AT A GLANCE Chairman: Anders Nyrén CEO: Lars Petterson; from February 1, 2011, Olof Faxander For more information on Sandvik, visit www.sandvik.com.
| 2010 | 2009 |
|---|---|
| 5.59 | –2.24 |
| 3.00 1 | 1.00 |
| 131.10 | 86.40 |
1) Proposed by the board of directors.
Comment: During the last ten years, Sandvik's stock has outperformed the return index.
Shares: 65,217,930 Class A shares Market value: SEK 14,015 M Share of votes: 10.6% Share of capital: 10.5% Share of equities portfolio: 20%
Handelsbanken is a universal bank with the business concept of offering a comprehensive range of high quality financial services to private and corporate customers in the Nordic region and the U.K. A fundamental tenet of this concept is that overall customer responsibility rests with the local branch that serves the customer. This enables deep and enduring customer relationships that are characterized by availability, simplicity and a high degree of service. The branches conduct their marketing activities by assigning local priorities to customer categories or product areas. Through consistent application of this highly effective business model, Handelsbanken has strengthened its position despite a tough market. Handelsbanken has a strong position in the Swedish market, with 461 branches. In the other Nordic countries the bank has a total of 146 branches, plus 83 branches in the U.K. and 32 in the rest of the world. In all, Handelsbanken is active in 22 countries. Operations are geared for continued growth, mainly organic, in selected markets.
Handelsbanken aspires to have the most satisfied customers while achieving higher cost effectiveness than its peer banks. Profitability is always prioritized above volume. In the bank's lending activities, this entails that credit quality may never be sacrificed to achieve higher volumes or margins.
Chairman: Hans Larsson CEO: Pär Boman For more information on Handelsbanken, visit www.handelsbanken.com.
| KEY DATA |
2010 | 2009 |
|---|---|---|
| Earnings per share, SEK | 17.72 | 16.44 |
| Dividend per share, SEK | 9.00 1 | 8.00 |
| Share price on December 31 | ||
| Class A | 214.90 | 204.20 |
| Class B | 211.50 | 202.20 |
1) Proposed by the board of directors.
Comment: During the last ten years, Handelsbanken's stock has outperformed the return index.
Shares: 87,646,151 Class A shares and 5,345,661 Class B shares Market value: SEK 10,713 M Share of votes: 10.7% Share of capital: 4.4% Share of equities portfolio: 15%
Volvo Group is a world-leading supplier of commercial transport solutions, with sales in roughly 180 countries. Operations are conducted through six business areas: Trucks, Construction Equipment, Buses, Volvo Penta, Volvo Aero and Financial Services. The company strives to offer transport-related products and services with high quality and safety for demanding customers in selected segments. Concern for the environment and energy efficiency permeate the company's products. The business is based on depth of knowledge about advanced diesel engines, where the Group can coordinate its R&D based on a joint architecture and shared technology. Volvo Group is the world's second largest manufacturer of Western trucks in the heavy segment. Trucks are sold under the Volvo, Renault, Mack and UD Trucks brands, and by the Indian joint-venture company under the Eicher brand. Construction Equipment manufactures a range of equipment for construction and other applications. Volvo Buses' product range includes city buses, intercity buses and coaches. Volvo Penta makes engines for boats and industrial applications. Volvo Aero manufactures components for aircraft engines.
Chairman: Louis Schweitzer CEO: Leif Johansson (until June 30, 2011) For more information on Volvo Group, visit www.volvogroup.com.
| KEY DATA |
2010 | 2009 |
|---|---|---|
| Earnings per share, SEK | 5.36 | –7.26 |
| Dividend per share, SEK | 2.50 1 | 0.00 |
| Share price on December 31, SEK |
||
| Class A shares | 114.50 | 61.00 |
| Class B shares | 117.00 | 61.45 |
| 1) Proposed by the board of directors. |
Comment: During the last ten years, Volvo's stock has outperformed the return index.
Shares: 45,100,000 Class A shares and 25,700,00 Class B shares Market value: SEK 7,487 M Share of votes: 29.5% Share of capital: 10.0% Share of equities portfolio: 11%
SCA is a global hygiene products and paper company that develops, produces and markets personal care products, tissue, packaging solutions and forest products. SCA is Europe's largest private forest owner. Operations are global, with sales in more than 100 countries and manufacturing in approximately 40 countries. The company produces innovative and highly refined products and services. More than half of sales are hygiene products such as toilet paper, kitchen rolls, facial tissue, incontinence products, feminine care products and diapers. SCA is the global market leader in incontinence products. The Group's sales are based on a portfolio of strong brands along with products sold under retailers' private labels. SCA has two global brands – Tena for incontinence products and Tork for tissue for the awayfrom-home (ATH) market – both generating in excess of EUR 1 billion in annual sales. A growing share of sales of SCA's hygiene products is derived from emerging markets. The company's packaging solutions are used primarily for food products, industrial products and consumer durables.
SCA AT A GLANCE Chairman: Sverker Martin-Löf CEO: Jan Johansson For more information on SCA, visit www.sca.com.
| KEY DATA |
2010 | 2009 |
|---|---|---|
| Earnings per share, SEK | 7.90 | 6.78 |
| Dividend per share, SEK | 4.00 1 | 3.70 |
| Share price on December 31, SEK |
||
| Class A shares | 105.50 | 95.35 |
| Class B shares | 106.20 | 95.45 |
| 1) Proposed by the board of directors. |
Comment: During the last ten years, SCA's stock has outperformed the return index.
Shares: 56,105,972 Class A shares and 73,498 Class B shares Market value: SEK 6,347 M Share of votes: 22.5% Share of capital: 17.3% Share of equities portfolio: 9%
SSAB is an internationally leading supplier of high-strength steel with a base in Western Europe and North America. The steel operations have been successfully developed through a conscious specialization strategy aimed at strengthening the company's position as a leading producer of high-strength steel. SSAB's steel makes customers' products lighter, stronger and more durable. In the selected product segments, SSAB has achieved a strong market position and high profitability. In the sheet segment, SSAB specializes in advanced high-strength sheet, which is used in the engineering industry and by container manufacturers, for example. In the plate segment, SSAB is the world's leading producer of quenched steels, i.e., plate with extra high strength and good weldability combined with high abrasion-resistance and good formability. Quenched steels are used in construction machinery, mining equipment and cranes, among other things. The company has several well known brands, including Hardox, Domex, Weldox, Docol, Armox, Prelaq and Toolox. SSAB works according to a goaloriented strategy aimed at accelerating growth for its niche products and enhancing the profitability of existing plants. The company is also striving to strengthen its positions in the Asian market, particularly in China.
SSAB at a glance Chairman: Sverker Martin-Löf CEO: Olof Faxander; from February 1, 2011, Martin Lindqvist For more information on SSAB, visit www.ssab.com.
| KEY DATA |
2010 | 2009 |
|---|---|---|
| Earnings per share, SEK | 2.21 | –2.69 |
| Dividend per share, SEK | 2.00 1 | 1.00 |
| Share price on December 31, SEK |
||
| Class A shares | 113.00 | 112.10 |
| Class B shares | 99.15 | 111.50 |
| 1) Proposed by the board of directors. |
Total return, Class A Return index
Comment: During the last ten years, SSAB's stock has outperformed the return index.
Shares: 77,680,600 Class A shares Market value: SEK 5,748 M Share of votes: 13.8% Share of capital: 2.4% Share of equities portfolio: 8%
Ericsson is the world's leading supplier of communication networks and related services for telecom operators. The company is a global player with customers in more than 175 countries and one of the few companies that can offer end-to-end solutions for all major mobile communication standards. Ericsson is the world leader in 2G (GSM) and 3G (WCD-MA/HSPA) mobile networks. The company also has a leading position in the 4G global mobile broadband standard. Through longterm relationships with all major operators, Ericsson delivers the networks for more than 40% of all mobile subscribers. Today Ericsson has a strong product portfolio in mobile systems as well as fixed line networks and business support systems. The fast-growing services segment, in which the company has a leading position, accounts for 40% of consolidated sales. Ericsson also conducts own operations through the half-owned companies Sony Ericsson Mobile Communications (mobile phones), ST-Ericsson (mobile telecom platforms) and LG-Ericsson (business communications).
ERICSSON AT A GLANCE Chairman: Michael Treschow CEO: Hans Vesterberg For more information on Ericsson, visit www.ericsson.com.
| KEY DATA |
2010 | 2009 |
|---|---|---|
| Earnings per share, SEK | 3.46 | 1.14 |
| Dividend per share, SEK | 2.25 1 | 2.00 |
| Share price on December 31, SEK |
||
| Class A shares | 74.00 | 65.00 |
| Class B shares | 78.15 | 65.90 |
| 1) Proposed by the board of directors. |
Comment: During the last ten years, Ericsson's stock has performed below the return index.
Shares: 15,091,940 Class A shares and 17,019,386 Class B shares Market value: SEK 4,280 M Share of votes: 27.8% Share of capital: 7.6% Share of equities portfolio: 6%
Skanska is one of the largest construction companies in the world, with leading positions in its multiple home markets of Europe, the U.S. and Latin America. Its mission is to develop, build and maintain the physical environment for living, traveling and working. Skanska's overall goal is to generate customer and shareholder value, which is created in well-implemented and profitable projects. The company's global presence creates operational synergies with respect to know-how, purchasing and product development. Financial synergies are created by investing cash flow from the construction operations in the company's project development business, with favorable return on capital. Operations are conducted in four so-called business streams: Construction, Residential Development, Commercial Development and Infrastructure Development. Construction involves buildings and civil construction projects as well as residential construction and is Skanska's largest business stream. The other business streams work with value-creating product development. Residential Development develops housing projects for immediate sale. Commercial Development initiates, develops, leases and sells commercial real estate projects, with a focus on offices, shopping centers and logistics properties. Infrastructure Development develops and invests in privately financed infrastructure projects, such as roads, hospitals, schools and power plants. Skanska strives to be the leading builder and project developer in its markets as well as in environmentally adapted and energy-efficient solutions.
Chairman: Sverker Martin-Löf CEO: Johan Karlström For more information on Skanska, visit www.skanska.com.
| KEY DATA |
2010 | 2009 |
|---|---|---|
| Earnings per share, SEK | 9.54 | 8.65 |
| Dividend per share, SEK | 12.00 1 | 6.25 |
| Share price on December 31, SEK2 |
||
| Class B shares | 133.30 | 121.60 |
| 1) Proposed by the board of directors. |
2) Skanska's Class A shares, which are unlisted, have been assigned the same value as the Class B shares.
Comment: During the last ten years, Skanska's stock has outperformed the return index.
Shares: 14,727,800 Market value: SEK 3,417 M Share of votes: 36.8% Share of capital: 36.8% Share of equities portfolio: 5%
Indutrade is a technology sales company that sells components, systems and services with a high-tech content to industrial customers in selected niches. In addition to the technology sales business is a growing share of own manufacturing companies with proprietary brands. The focus is on niche-oriented products and services for customers with a repetitive need, which provides stability to the business and its flow of revenues. The organization is decentralized, and the 140 individual companies create value for their customers by structuring the value chain and enhancing the efficiency of their customers' use of technological components and systems. For Indutrade's suppliers, value is created through access to an effective sales organization with high technical expertise and established customer relations. The aim is to make cooperation with Indutrade the most profitable way for suppliers to sell their products in the geographic markets in which Indutrade is active. Indutrade's most important products include valves, measuring and analysis instruments, industrial equipment, automation, pumps, filters and process technology, hydraulics and pneumatics, adhesives and chemical-technical products, cutting tools and pipe systems. The aim is to grow the business organically as well as through a triedand-tested acquisition strategy involving continuous acquisitions of profitable companies.
Chairman: Bengt Kjell CEO: Johnny Alvarsson For more information on Indutrade, visit www.indutrade.com.
| KEY DATA |
2010 | 2009 |
|---|---|---|
| Earnings per share, SEK | 10.18 | 8.53 |
| Dividend per share, SEK | 5.10 1 | 4.30 |
| Share price on December 31, | ||
| SEK | 232.00 | 135.00 |
1) Proposed by the board of directors.
Comment: Since its stock market introduction in 2005, Indutrade's stock has outperformed the return index.
Shares: 3,550,000 Class B shares Market value: SEK 934 M Share of votes: 8.1% Share of capital: 10.1% Share of equities portfolio: 1%
Höganäs is the world's leading supplier of metal powder, with customers in 75 countries. The Components business area (slightly more than 70% of sales) produces press powder for component manufacturing, mainly in the automotive industry, but also in the consumer products industry. Metal powder is used in the manufacture of engines, gearboxes, electric tools, household appliances and locks, among other things. Press powder increases flexibility and makes components cheaper, more lightweight and more energy-efficient. The Consumables business area (just under 30% of sales) covers metal powder used in processes, such as in producing metals, as additives in chemical processes – such as brazing, welding and surface coating – and for water and air treatment. At its core, Höganäs's potential lies in the major opportunities presented by metal powder to develop better, less costly or entirely new products in many areas. Through its new prototype center, Höganäs is driving development towards greater use of metal powder. At the center, Höganäs's metal powder experts work closely with customers and end users to concretize new business opportunities.
HÖGANÄS AT A GLANCE Chairman: Anders G. Carlberg CEO: Alrik Danielson For more information on Höganäs, visit www.hoganas.com.
| KEY DATA |
2010 | 2009 |
|---|---|---|
| Earnings per share, SEK | 23.11 | 5.92 |
| Dividend per share, SEK | 10.00 1 | 3.00 |
| Share price on December 31, SEK |
||
| Class B shares | 263.00 | 164.00 |
| 1) Proposed by the board of directors. |
Comment: During the last ten years, Höganäs's stock has outperformed the return index.
including corporate governance report registered number se 556043 – 4200
The Board of Directors and President of AB Industrivärden (publ) herewith submit their annual report and consolidated financial statements for the 2010 fiscal year, the company's sixty-sixth year of operation. The following corporate governance report, income statements, balance sheets, statements of changes in shareholders' equity, statements of cash flows and notes to the financial statements form an integral part of this annual report and have been audited by the Company's auditors.
Industrivärden is one of the Nordic region's leading holding companies, taking an active ownership role in a concentrated selection of listed Nordic companies with good development potential. The goal is to generate high growth in net asset value over time and thereby enable a competitive total return to the shareholders.
Industrivärden's governing bodies consist of general shareholders' meetings, the Board of Directors, the President and CEO, and the auditor. At the Annual General Meeting, the shareholders elect a board and auditor. The Board appoints the President and CEO as well as executive vice president. The auditor audits the financial statements as well as the Board's and CEO's administration. The Nominating Committee is tasked with recommending directors and the auditor for election by the Annual General Meeting.
Industrivärden adheres to the Swedish Code of Corporate Governance. The Corporate Governance Report pertains to the 2010 fiscal year and has been audited by the Company's auditor.
Information on Industrivärden's stock and shareholders is provided in the Industrivärden share data section on pages 20–21.
General shareholders' meetings are Industrivärden's highest governing body. At the Annual General Meeting (AGM), which is held within six months after the end of the fiscal year, resolutions are made concerning recommendations and proposals set forth by the Nominating Committee, the Board of Directors and shareholders. Among other things, the income statement and balance sheet are adopted, a decision is made regarding the dividend, the Board of Directors and – where applicable – the auditor is elected and their fees are determined, and other items of legally ordained business are conducted.
The members of the Nominating Committee are Bo Damberg (the Jan Wallander and Tom Hedelius Foundation, and others), Ulf Lundahl (L E Lundbergföretagen), Sverker Martin-Löf (Chairman of Industrivärden), Anders Nyberg (SCA Pension Foundations and others), and Håkan Sandberg (committee chair – Handelsbanken Pension Foundation and Handelsbanken Pension Fund).
Industrivärden's board of directors, which was elected by the 2010 Annual General Meeting, has eight members. The Chairman of the Board, Sverker Martin-Löf, is a former CEO of SCA and is the Chairman of SCA, Skanska and SSAB, among other positions. Olof Faxander is President and CEO of Sandvik (former CEO of SSAB). Boel Flodgren is a Professor of Business Law and former President of Lund University. Finn Johnsson is a board member of Skanska and is a former CEO of Mölnlycke Health Care, United Distillers and Euroc. Hans Larsson is Chairman of Handelsbanken, Nobia and Attendo. Fredrik Lundberg is CEO of L E Lundbergföretagen and Chairman of Cardo, Holmen and Hufvudstaden. Lennart Nilsson is a former CEO of Cardo. Industrivärden's CEO, Anders Nyrén, is a former Executive Vice President and CFO of Skanska and former Executive Vice President and CFO of Securum, among other positions.
A presentation of other significant assignments held by the members of the Board can be found on page 49. A more detailed description of the board members' professional experience can be found on Industrivärden's website.
Independence conditions concerning the members of the Board of Directors are shown in table on page 32.
The Board has ultimate responsibility for the Company's organization and administration, and is also responsible for making decisions on strategic matters. The Board's work is conducted according to a yearly plan. Each meeting follows an agenda, which together with the underlying documentation is distributed to the directors in advance of each board meeting. In general, the Board deals with matters of material importance, such as:
| Non-inde | Non-inde | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| pendence in | pendence | ||||||||
| Compen | Attendance | Attendance | relation to | in relation | |||||
| Audit | sation | at board | at committee | Fee, 2010 | Industri | to major | |||
| Name | Year elected | Board | Committee | Committee | meetings | meetings | SEK 0003 | värden4 | shareholders5 |
| Sverker Martin-Löf 1 | 2002 | Chairman | Member | Chairman | All | All | 1,200 | ||
| Olof Faxander | 2009 | Director | Member | – | All | All | 400 | X | |
| Boel Flodgren | 2002 | Director | Member | – | All | All | 400 | ||
| Finn Johnsson | 2000 | Director | Member | – | All | All | 400 | ||
| Hans Larsson | 2010 | Director | Chairman | Member | All 2 | All | 400 | X | |
| Fredrik Lundberg | 2004 | Director | Member | – | All | All | 400 | X | |
| Lennart Nilsson | 1997 | Director | Member | – | All | All | 400 | ||
| Anders Nyrén | 2001 | Director | – | – | All | – | – | X |
Total 3,600
1 Sverker Martin-Löf was appointed as Vice Chairman in 2002 and as Chairman in 2010.
2 Hans Larsson was elected as a director on the Board at the Annual General Meeting on May 5, 2010.
3 No fee is paid for committee work.
4 Olof Faxander was President and CEO of SSAB and is now President and CEO of Sandvik – companies in which Industrivärden is a major shareholder.
Anders Nyrén is President and CEO of Industrivärden and the only executive director of the Company.
5 Fredrik Lundberg is President and CEO of L E Lundbergföretagen, which is a major shareholder of Industrivärden. Hans Larsson serves as Chairman of foundations
that are major shareholders of Industrivärden.
The Board has a central role in Industrivärden's business model for active ownership, which is described at length on pages 10–17.
The statutory meeting deals with adoption of the Board's work plan, decisions on the Company's signatories, appointment of persons to check the minutes of board meetings, and appointment of committee members.
In connection with the board meeting that deals with the annual financial statements, the Board of Directors' Report, the proposed distribution of earnings and the year-end report, the Company's auditor submits a report to the Audit Committee on the auditors' observations and remarks from their audit.
The regular meetings cover a number of set agenda items. These include, among other things, a report on the current financial result of operations and on the development of net asset value and the performance of the equities portfolio, including detailed information on equity transactions that have been carried out. Reports are also made on the share price development and earnings performance. In addition, a special review is normally conducted of one or more of the portfolio companies and of potential investments. At one or more board meetings during the year, the management of one of the portfolio companies presents a report on their company's development.
Committees appointed by the Board are tasked with conducting drafting work on matters ahead of board decisions. Each year the Board evaluates the financial reporting it receives from the Company and makes demands on its content and structure in order to ensure the quality of the financial reporting.
The Board's work is evaluated each year in a structured process conducted under the direction of the Chairman of the Board.
Board decisions are based on extensive documentation and are made after a discussion that is monitored by the Chairman. The Company Secretary is attorney Sven Unger, from the law firm Mannheimer Swartling.
The Board held a total of eight meetings in 2010. The most important duties of the Board concerned matters related to the holdings in the equities portfolio and strategic planning. In addition, the Board decided to carry out an issue of convertible bonds, to carry out large purchases of stocks, and to divest the holding in Munters.
The Board has appointed a compensation committee, which held one meeting. The guidelines for compensation of senior executives were adopted by the 2010 Annual General Meeting. The Compensation Committee draws up recommendations for the CEO's compensation and decides on compensation for the other members of the executive management. The members of the Compensation Committee are Chairman of the Board Sverker Martin-Löf (committee chair) and director Hans Larsson. No compensation was paid for the directors' work on the committee.
As in the preceding year, compensation paid to the CEO and other members of the executive management shall consist of base salary, a variable salary component, other benefits and pension. The total compensation should be in line with the going rate in the market and competitive, and shall be commensurate with the executive's responsibilities and authority. The variable salary component consists of a short-term variable salary (yearly) and a long-term variable salary. The short-term variable salary component is based on outcome in relation to set targets and on individual performance, and shall have a cap and never exceed the base salary. The long-term variable salary is based on incentive programs that are coupled to the long-term performance of the Company's stock. None of the variable components shall be pensionable. Upon termination of an executive's employment contract by the Company, a two-year notice period applies. There should not be any severance pay. Pension benefits shall be either definedbenefit or defined-contribution, or a combination of both, and give the members of the executive management the right to retire from
60 or 65 years of age, depending on their position. The Board may depart from these guidelines if there are special reasons for doing so in individual cases.
The Audit Committee, which held two meetings during the year, includes all of the members of the Board except for the CEO. Hans Larsson chairs the Audit Committee. The Audit Committee is tasked with reviewing the routines for the Company's risk management, governance and control, and financial reporting. The Company's investment instructions and finance policy are adopted each year by the Board. The Audit Committee maintains regular contact with the Company's auditor to ensure that internal and external reporting meet established requirements and to discuss the scope and focus of the audit work. The auditor reports his observations to the Audit Committee in connection with the audit of the year-end financial statements. No compensation was paid to the Audit Committee members for their work on the committee.
At the 2010 Annual General Meeting, PricewaterhouseCoopers AB was elected as the Company's auditor for a term through the 2014 Annual General Meeting. The chief auditor is Anders Lundin, Authorized Public Accountant.
In 2010 all interim reports were reviewed by the Company's auditor. Against this background and in view of how the financial reporting has been organized in general, the Board finds no need for a dedicated review function in the form of an internal audit unit.
The dominant risk in Industrivärden's business is share price risk, i.e., the risk of a decrease in value caused by changes in share prices. A 1% change in the share price of the holdings in the equities portfolio as per December 31, 2010, would have affected the market value by approximately +/– SEK 700 M. A detailed description of the risks associated with Industrivärden's business is provided on page 42.
Against the background of the share price risk described above, the most important control process in Industrivärden's business consists of the continuous monitoring of its value exposure in the equities portfolio. Industrivärden's internal control is therefore primarily focused on ensuring the reliability of valuations of outstanding equity and derivative positions and of the reporting of purchases and sales of stocks and other securities.
According to the Swedish Companies Act, the Board is responsible for internal control. The Board's work plan lays out investment rules for equities and derivative instruments as well as a finance policy. Decision-making channels, authority and responsibility are defined by a set of investment rules as well as finance instructions. Industrivärden has an investment committee that has been set up specifically to make regular decisions on investment matters within the framework of the CEO's mandate.
Other processes with a bearing on the financial reporting are regulated by Industrivärden's insider rules, information policy, confidentiality policy and other policies. Industrivärden's greatest risk consists of value exposure in the equities portfolio. The predominant risk in work processes pertains to potential errors in the accounting and reporting of equity transactions. Industrivärden continuously assesses the risks in the handling of equity transactions, which are discussed with the auditor and affect the structure of internal risk control.
Control activities pertaining to the equities portfolio include, among other things, approval of all business transactions, registration in internal systems not later than the day after the transaction date, follow-up to ensure that equity transactions are in accordance with decisions made by the Investment Committee, and checks to make sure that the value of purchases and sales of stocks and of underlying stocks in derivative transactions is within the scope of established exposure limits. All equity positions are followed up on a continuous basis in real time. The Investment Committee, which is made up of the executive management, continuously follows up investment decisions that have been made and checks to ensure that they have been executed correctly. Minutes are recorded of Investment Committee meetings.
Industrivärden adheres to applicable insider rules and stipulations on public disclosure regarding transactions in shares of the portfolio companies. In addition, Industrivärden has internal rules that prohibit employees from trading in shares in the companies in which Industrivärden has major shareholdings for 30 days prior to publication of interim reports and the year-end report, including the day of reporting. All employees of Industrivärden are required to report their total holdings of financial instruments in the portfolio companies in an internal register.
In January the Board of Directors decided to issue convertible bonds directed at European institutions. The loan is worth EUR 500 M, has a term until 2015 and carries a coupon of 2.5%. The conversion price is SEK 115.50, which corresponded to net asset value at the time of the issue.
Part of the proceeds from the convertible issue have been used for investments in the equities portfolio. Net purchases amounted to a total to SEK 2.5 billion. A major purchase was made of Volvo Class A shares by exercising a total return swap that was built up in 2009. Industrivärden purchased 12.5 million Class A shares at a price of SEK 64 per share. Net purchases for the year had an accumulated growth in value of 41%, compared with a 23% gain for the market index.
In October the Board decided to sell the shareholding in Munters to Nordic Capital for SEK 843 M; the holding generated a total return of 50% during Industrivärden's ownership.
During the year, net asset value increased from SEK 42.8 billion, or SEK 111 per share, to SEK 57.7 billion, or SEK 149 per share, a rise of 37%. The components making up net asset value are shown in the following table:
| SEK billion | SEK per share | ||||
|---|---|---|---|---|---|
| 12/31/2010 | 12/31/2009 12/31/2010 | 12/31/2009 | |||
| Equities portfolio | 71.1 | 53.5 | 184 | 139 | |
| Interest-bearing net debt |
–13.4 | –10.8 | –35 | –28 | |
| Net asset value | 57.7 | 42.8 | 149 | 111 | |
| Net asset value after full conversion |
61.8 | 144 |
The market value of the equities portfolio at year-end was SEK 71,092 M (53,548). The market value exceeded cost by SEK 37,743 M (23,161). During the year, stocks were bought for a net amount of SEK 2,547 M (–400).
Taking into account purchases and sales, the value of the portfolio increased by 28% (56%) during the year. The stock market index (OMX-SPI) rose 23% (47%). The total return of the equities portfolio was 31% (63%), compared with 27% (53%) for the return index (SIXRX).
The Group company Nordinvest AB conducts short-term equity
trading. Income totaled SEK 17 M (7). Industrivärden's total income from short-term derivative transactions and equity trading amounted to SEK 114 M (100).
At year-end 2010, interest-bearing net debt amounted to SEK 13,401 M (10,766), corresponding to a net debt-equity ratio of 18.9% (20.1%). After full conversion of convertible loans, interestbearing net debt at the same point in time was SEK 9,246 M, corresponding to a net debt-equity ratio of 13.0%.
The Parent Company reports income after financial items of SEK 11,141 M (10,901). Shareholders' equity amounted to SEK 43,919 M (33,766) at yearend.
During the year, the the subsidiaries Industrivärden Invest AB and Industrivärden Förvaltning AB repaid conditional shareholder contributions of SEK 7,410 M to the Parent Company in connection with the refinancing of subsidiaries.
The Board of Directors proposes a dividend of SEK 4.00 (3.00) per share. The proposed dividend corresponds to 3.5% of the Parent Company's shareholders' equity and 2.7% of the Group's shareholders' equity. Of shareholders' equity 46%, or SEK 20.3 billion in the Parent Company, and 57%, or SEK 32.0 billion in the Group, is attributable to the fair valuation of assets and liabilities. Industrivärden's dividend policy is to pay the shareholders a dividend yield that is higher than the average for the Stockholm Stock Exchange. The Board finds that the proposed dividend is well balanced in view of the objectives, scope and risk of operations, as well as with respect to the Company's ability to meet its future obligations. According to the proposal, the total dividend payout amounts to SEK 1,545 M (1,159).
In January 2011, the Board decided to issue six-year convertible bonds for EUR 550 M, which were oversubscribed. The Board's decision was formally approved at an Extraordinary General Meeting on February 9, 2011. The conversion price is SEK 162.00/share at a fixed euro exchange rate of SEK 8.8803, corresponding to a premium to net asset value and an annual coupon of 1.875%. The share dilution is limited and corresponds upon full conversion to approximately 8% of the capital and 1% of the number of votes.
| Net purchase/ | |||||
|---|---|---|---|---|---|
| SEK M | Dividend received 2010 | Change in value | sale (–) per holding | Market value, 12/31/2010 | Total return, % |
| Sandvik | 138 | 6,217 | 232 | 18,150 | 53 |
| Handelsbanken | 505 | 691 | 428 | 14,015 | 9 |
| Volvo | – | 4,660 | 1,770 | 10,713 | 89 |
| SCA | 262 | 733 | – | 7,487 | 15 |
| SSAB | 53 | –505 | 540 | 6,347 | –7 |
| Ericsson | 153 | 703 | 61 | 5,748 | 17 |
| Skanska | 182 | 385 | 363 | 4,280 | 15 |
| Indutrade | 63 | 1,429 | –4 | 3,417 | 77 |
| Höganäs | 11 | 351 | – | 934 | 63 |
| Munters | 11 | 333 | –843 | – | 69 |
| Total, equities portfolio | 1,379 | 14,997 | 2,547 | 71,092 | 31 |
| SIXRX | 27 |
According to the Consolidated Balance Sheet, retained earnings for the year amount to SEK 54,398 M, of which SEK 14,870 M consists of net income for the year.
The following earnings of the Parent Company are at the disposal of the Annual General Meeting:
The Board of Directors and President propose that the earnings be disposed of as follows:
| Retained earnings according to | To the shareholders, a dividend of | ||
|---|---|---|---|
| decision by the 2010 AGM | SEK 30,750 M | SEK 4.00 per share, totaling | SEK 1,545 M |
| Net income for the year | SEK 11,141 M |
To be carried forward | SEK 40,346 M |
| SEK 41,891 M | SEK 41,891 M |
The Board of Directors and President certify that the Annual Report has been prepared in accordance with generally accepted accounting principles, that the consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards referred to in European Parliament and Council of Europe Regulation (EC) No. 1606/2002 of July 19, 2002, on application of international financial reporting standards, that disclosures herein give a true and fair view of the Parent Company's and Group's financial position and results of operations, and that the statutory Administration Report provides a fair review of the Parent Company's and Group's operations, financial position and results of operations and describes material risks and uncertainties facing the Parent Company and the companies included in the Group.
The Group's and Parent Company's earnings and position in general are shown in the following income statements, balance sheets, statements of changes in shareholders' equity, statements of cash flows and notes to the financial statements. Adoption of the Consolidated and Parent Company Income Statements and Balance Sheets will take place at the Annual General Meeting on May 5, 2011.
Stockholm, February 9, 2011
Sverker Martin-Löf Olof Faxander Boel Flodgren Finn Johnsson Chairman Director Director Director
Hans Larsson Fredrik Lundberg Lennart Nilsson Director Director Director
Anders Nyrén President and CEO, Director
Our Audit Report was submitted on February 9, 2011
PricewaterhouseCoopers AB
Anders Lundin Authorized Public Accountant
| Parent Company | |||||
|---|---|---|---|---|---|
| SEK M | Note | 2010 | 2009 | 2010 | 2009 |
| Dividend income from stocks | 1 | 1,379 | 1,871 | 567 | 1,095 |
| Change in value of stocks, etc. | 2 | 13,991 | 19,307 | 11,072 | 10,259 |
| Short-term derivative transactions and equity trading | 4 | 114 | 100 | 79 | 108 |
| Management costs | 5, 8, 9 | –94 | –86 | –94 | –89 |
| Other income and expenses | 2 | 0 | –10 | 0 | |
| Operating income | 15,392 | 21,192 | 11,614 | 11,373 | |
| Financial income | 6 | 19 | 19 | 19 | 19 |
| Financial expenses | 6 | –541 | –542 | –492 | –491 |
| Income after financial items | 14,870 | 20,669 | 11,141 | 10,901 | |
| Tax | 10 | – | – | – | – |
| Net income for the year | 14,870 | 20,669 | 11,141 | 10,901 | |
| Earnings per share, SEK1 | 38.50 | 53.51 | 28.84 | 28.22 | |
| Earnings per share after full conversion, SEK2 | 37.11 | – | 28.45 | – | |
| 1) 386,271,224 shares outstanding. |
2) Shares outstanding after full conversion: 430,538,533.
| Net income for the year | 14,870 | 20,669 | 11,141 | 10,901 |
|---|---|---|---|---|
| Change in hedging reserve | 72 | 30 | 171 | 30 |
| Comprehensive income for the year | 14,942 | 20,699 | 11,312 | 10,931 |
| Group | Parent Company | ||||
|---|---|---|---|---|---|
| SEK M | Note | 2010 | 2009 | 2010 | 2009 |
| ASSETS | |||||
| Property, plant and equipment | 11 | 27 | 25 | – | – |
| Equities | 12 | 71,092 | 53,548 | 36,138 | 22,094 |
| Shares in associated companies | 12, 13, 15 | – | – | 11,159 | 10,036 |
| Shares in subsidiaries | 14, 15 | – | – | 4,545 | 11,948 |
| Non-current receivables | 180 | – | 180 | – | |
| Total non-current assets | 71,299 | 53,573 | 52,022 | 44,078 | |
| Other current receivables | 16 | 72 | 89 | 972 | 88 |
| Short-term equity investments | 176 | 128 | – | 135 | |
| Cash and cash equivalents | 0 | 0 | 0 | 0 | |
| Total current assets | 248 | 217 | 972 | 223 | |
| TOTAL ASSETS | 71,547 | 53,790 | 52,994 | 44,301 | |
| SHAREHOLDERS' EQUITY AND LIABILITIES | |||||
| Capital stock | 966 | 966 | 966 | 966 | |
| Other capital contribution/Statutory reserve | 1,062 | 1,062 | 1,062 | 1,062 | |
| Reserves/Fair value reserve | –99 | –171 | – | –171 | |
| Retained earnings | 39,528 | 20,018 | 30,750 | 21,008 | |
| Net income for the year | 14,870 | 20,669 | 11,141 | 10,901 | |
| Total shareholders' equity | 56,327 | 42,544 | 43,919 | 33,766 | |
| Convertible loan | 17, 19 | 4,155 | – | 4,155 | – |
| Other non-current interest-bearing liabilities | 18, 19 | 6,968 | 8,513 | 868 | 7,513 |
| Non-current noninterest-bearing liabilities | 20 | 1,344 | 13 | 1,344 | – |
| Total non-current liabilities | 12,467 | 8,526 | 6,367 | 7,513 | |
| Current interest-bearing liabilities | 21 | 2,458 | 2,330 | 2,426 | 2,603 |
| Other current liabilities | 22 | 295 | 390 | 282 | 419 |
| Total current liabilities | 2,753 | 2,720 | 2,708 | 3,022 | |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 71,547 | 53,790 | 52,994 | 44,301 | |
| Contingent liabilities | 0 | 0 | 6,396 | 1,000 |
| Other | Total share | |||||
|---|---|---|---|---|---|---|
| Capital | capital con | Retained | Net income | holders' | ||
| Group | stock1 | tribution | Reserves2 | earnings | for the year | equity |
| Shareholders' equity as per adopted balance sheet at December 31, 2008 | 966 | 1,062 | –201 | 50,870 | –29,114 | 23,583 |
| Change in hedging reserve, fair value gains | – | – | 30 | – | – | 30 |
| Transfer of previous year's net income | – | – | – | –29,114 | 29,114 | – |
| Net income for the year | – | – | – | – | 20,669 | 20,669 |
| Total comprehensive income | – | – | 30 | – | 20,669 | 20,699 |
| Dividend to shareholders | – | – | – | –1,738 | – | –1,738 |
| SHAREHOLDERS' EQUITY AS PER DECEMBER 31, 2009 | 966 | 1,062 | –171 | 20,018 | 20,669 | 42,544 |
| Change in hedging reserve, fair value gains | – | – | 72 | – | – | 72 |
| Transfer of previous year's net income | – | – | – | 20,669 | –20,669 | – |
| Net income for the year | – | – | – | – | 14,870 | 14,870 |
| Total comprehensive income | – | – | 72 | 20,669 | –5,799 | 14,942 |
| Dividend to shareholders3 | – | – | – | –1,159 | – | –1,159 |
| SHAREHOLDERS' EQUITY AS PER DECEMBER 31, 2010 | 966 | 1,062 | –99 | 39,528 | 14,870 | 56,327 |
| Total share | ||||||
|---|---|---|---|---|---|---|
| Parent Company | Capital stock |
Statutory reserve |
Fair value reserve |
Retained earnings |
Net income for the year |
holders' equity |
| Shareholders' equity as per adopted balance sheet at December 31, 2008 | 966 | 1,062 | –201 | 36,116 | –16,223 | 21,720 |
| Change in accounting policies4 | – | – | – | 2,853 | – | 2,853 |
| ADJUSTED OPENING SHAREHOLDERS' EQUITY | 966 | 1,062 | –201 | 38,969 | –16,223 | 24,573 |
| Change in hedging reserve, fair value gains | – | – | 30 | – | – | 30 |
| Transfer of previous year's net income | – | – | – | –16,223 | 16,223 | – |
| Net income for the year | – | – | – | – | 10,901 | 8,970 |
| Total comprehensive income | – | – | 30 | – | 10,901 | 10,931 |
| Dividend to shareholders | – | – | – | –1,738 | – | –1,738 |
| SHAREHOLDERS' EQUITY AS PER DECEMBER 31, 2009 | 966 | 1,062 | –171 | 21,008 | 10,901 | 33,766 |
| Change in hedging reserve, fair value gains | – | – | 72 | – | – | 72 |
| Change in hedging reserve, transfer to income statement – expense | – | – | 99 | – | – | 99 |
| Transfer of previous year's net income | – | – | – | 10,901 | –10,901 | – |
| Net income for the year | – | – | – | – | 11,141 | 11,141 |
| Total comprehensive income | – | – | 171 | – | 11,141 | 11,312 |
| Dividend to shareholders | – | – | – | –1,159 | – | –1,159 |
| SHAREHOLDERS' EQUITY AS PER DECEMBER 31, 2010 | 966 | 1,062 | 0 | 30,750 | 11,141 | 43,919 |
1 The capital stock as per December 31, 2010, consisted of 386,271,224 shares, of which 268,547,404 were Class A shares
and 117,723,820 were Class C shares. The share quota value is SEK 2.50. See also the Industrivärden share data section, pages 20–21.
2) The hedging reserve pertains to fair valuation of interest swaps used for cash flow hedging.
3) The dividend in 2010 was SEK 3.00 per share.
4) See accounting policies, pages 39–40.
| Group | Parent Company | ||||
|---|---|---|---|---|---|
| SEK M | Note | 2010 | 2009 | 2010 | 2009 |
| OPERATING ACTIVITIES | |||||
| Dividend income from stocks | 1 | 1,379 | 1,871 | 567 | 1,095 |
| Cash flow from short-term derivate transactions and equity trading | 78 | 91 | 139 | 78 | |
| Management costs paid | –103 | –87 | –101 | –87 | |
| Other items affecting cash flow | 24 | 15 | 28 | 0 | |
| Cash flow from operating activities before financial items | 1,378 | 1,890 | 633 | 1,086 | |
| Interest received | 26 | 22 | 23 | 22 | |
| Interest paid | –576 | –559 | –526 | –508 | |
| Other financial items | –1 | –12 | –1 | –12 | |
| Tax paid | 0 | 0 | – | – | |
| CASH FLOW FROM OPERATING ACTIVITIES | 827 | 1,341 | 129 | 588 | |
| INVESTING ACTIVITIES | |||||
| Purchases/sales of listed stocks | 3, 15 | –2,547 | 400 | –2,990 | 11,793 |
| Other | – | 40 | –8 | 40 | |
| CASH FLOW FROM INVESTING ACTIVITIES | –2,547 | 440 | –2,998 | 11,833 | |
| FINANCING ACTIVITIES | |||||
| Loans raised and amortization of debt | –1,787 | –1,139 | –7,987 | –863 | |
| Issue of convertible debentures | 5,026 | – | 5,026 | – | |
| Investments | –271 | – | –271 | – | |
| Change in financing of subsidiaries | – | – | –21 | –1,126 | |
| Shareholder contributions and other items | – | – | 7,370 | –9,790 | |
| Dividend paid | –1,159 | –1,738 | –1,158 | –1,738 | |
| CASH FLOW FROM FINANCING ACTIVITIES | 1,810 | –2,877 | 2,959 | –13,517 | |
| NET CASH FLOW FOR THE YEAR | 90 | –1,096 | 90 | –1,096 | |
| Cash and cash equivalents at start of year | 0 | 1,096 | 0 | 1,096 | |
| Exchange rate difference in cash and cash equivalents | –90 | – | –90 | – | |
| CASH AND CASH EQUIVALENTS AT END OF YEAR | 0 | 0 | 0 | 0 |
The consolidated financial statements have been prepared in conformity with International Financial Reporting Standards (IFRS) as adopted by the EU and with application of RFR 1. The annual report for the Parent Company has been prepared in accordance with the Swedish Annual Accounts Act and with application of RFR 2. The most important accounting policies applied are specified below. Unless otherwise stated, these are unchanged compared with preceding years. New or revised IFRSs and IFRIC interpretations have not had any effect on the Group's or Parent Company's result of operations or position.
Industrivärden applies the cost method except for equity investments and derivative instruments, which are mainly stated at fair value through profit or loss. Industrivärden has elected to report continuing changes in the market value of all holdings of listed shares and equity derivatives through profit or loss.
The consolidated financial statements, which have been prepared using the purchase method, apply – in addition to the Parent Company – to all companies in which the Parent Company directly or indirectly has a controlling interest.
Associated companies are companies in which Industrivärden has a significant but not controlling influence. Shares in associated companies are carried at market value. The capital gain or loss generated upon the sale of shares in associated companies is calculated accordingly.
Dividend income from stocks is recognized from the day on which trading takes place ex-rights. Changes in value of financial assets and derivative instruments are recognized on a current basis through profit or loss under the heading Change in value of stocks, etc.
Financial assets and liabilities are classified in the following categories: financial assets and liabilities carried at fair value through profit or loss, loan receivables, and other financial liabilities. The classification depends on the purpose for which the financial item was acquired. Purchases and sales of financial instruments are reported as per the transaction date.
The convertible loans, which are issued in euros, consists of two components: a debt component and an option component. The debt component is initially measured at fair value, and thereafter at amortized cost using the effective interest method. This entails that the loan is revalued over its term at nominal value. This revaluation is reported as a change in value in the income statement, while the coupon interest is reported as an interest expense. The option component is reported as a liability, since the currency is different from the functional currency. In accordance with IAS 39, the option is measured on a continuous basis at fair value through profit or loss in the item Change in value of stocks, etc. Transaction costs are allocated over the term of the loan and are included in the change in value reported in the income statement.
Transactions, assets and liabilities in foreign currency are translated to the functional currency using the exchange rates in effect on the transaction date or on the day the items were restated. The Parent Company's functional currency is SEK.
Option premiums received are booked as a liability and are deducted from premiums paid upon repurchase. If an issued option expires without being exercised, the premium is recognized as income. Upon exercise of an issued option, the premium increases the exercise price upon the sale of the shares or reduces the exercise price upon the purchase of shares. On the balance sheet date, the market value of issued options is determined, and the difference between it and provisioned premiums is recognized in income. The outstanding options are carried on the balance sheet as accrued income and accrued expenses, respectively.
The interest coupon portion is reported as a continuing interest expense, while other market value changes of the hedge (swap) are reported directly against the hedging reserve in shareholders' equity, under the condition that the hedge is effective.
Property, plant and equipment are carried at cost less accumulated depreciation.
Cash and cash equivalents include – in addition to cash and bank balances – short-term financial investments with remaining terms of less than three months.
Borrowings are carried initially at fair value net of transaction costs and thereafter at amortized cost using the effective interest rate method.
Pension liability refers to defined benefit individual pension obligations – all calculated annually for the Group in accordance with IAS 19 with the assistance of an external actuary. In accordance with UFR 6, defined benefit pension plans insured with Alecta are reported as defined contribution plans, since Alecta has not been able to provide adequate information. Industrivärden has elected at the Group level to utilize the so-called corridor in reporting actuarial gains and losses.
Industrivärden's short-term trading consists of trading in stock options, short-term equity investments and financial instruments coupled to short-term equity investments.
The 2008 Annual General Meeting of AB Industrivärden resolved that all employees of the Group would be offered stock options in Industrivärden at market terms and in other respects in accordance with the Board's complete proposal to the Annual General Meeting. The program involved the issuance of a maximum of 1,000,000 stock options for 1,000,000 Class C shares and has been secured through a total return swap. The offer was fully subscribed. In accordance with the terms of the offer, the exercise price per share was set at SEK 106.80. The options can be exercised to purchase Class C shares in the Company during the period July 1, 2008, through May 31, 2013. Under the condition that the respective employees remain employed by Industrivärden three years after purchasing their options, the Company will pay a subsidy for their option purchase corresponding to 75% of the option premium paid (gross, before tax). The Company's costs for the subsidy will be covered by revenue from the sale of the options. No options were exercised during the year.
As in the Group, listed shares in the Parent Company are carried at market value. In its reporting of pensions, the Parent Company complies with the Pension Obligations Vesting Act (Tryggandelagen) and FAR accounting recommendation no. 4, Reporting of pension liabilities and pension costs.
Effective January 1, 2010, the Parent Company also applies the revised IAS 1 Presentation of Financial Statements. This change has affected the Parent Company's reporting retrospectively and entails that income and expenses that were previously reported directly against shareholders' equity are now reported in a separate statement directly after the income statement.
The Parent Company also applies a new accounting policy concerning the reporting of associated companies following an amendment to the Annual Accounts Act, Ch. 4, Section 14b. Associated companies are now reported at fair value also in the Parent Company. This has affected the comparison year 2009 in the balance sheet and income statement as follows: Change in value of stocks, etc., by SEK +1,931 M; shares in associated companies by SEK +4,784 M; and retained earnings by SEK +2,853 M.
The types of financial risks that the Industrivärden Group encounters in its business consist primarily of equities risk and – to a limited extent – other financial risks in the form of interest rate risk and liquidity risk.
Equities risk pertains mainly to share price risk, which is the entirely dominant risk in Industrivärden's business. By share price risk is meant the risk of a decline in value caused by changes in prices in the stock market. Industrivärden's active ownership should reduce the relative equities risk in the portfolio companies and thus also in Industrivärden's portfolio. Moreover, the active ownership role provides good insight into the portfolio companies' operations, operating environment and continuing development. Having a mix of varied equities in the portfolio reduces volatility and contributes to a more stable return over time.
Industrivärden's equity investments are made within the parameters of the investment rules set by the Board of Directors. New investments, sales and reallocations are decided on a regular basis by a separate investment committee made up of the members of the executive management. Decisions are based on analyses that are presented by the investment organization. In addition to investments in listed stocks, Industrivärden also conducts transactions in equity derivatives. The subsidiary Nordinvest conducts short-term equity trading within the framework of Industrivärden's strategy. Share price risk can be illustrated as such that a 1% change in the price of all listed shareholdings in Industrivärden's equities portfolio as per December 31, 2010, would have affected the market value by SEK +/– 700 M. Equities risk also includes liquidity risk, which can arise, for example, for a stock that is difficult to sell. Industrivärden's equities portfolio consists of listed stocks with good liquidity, and thus the liquidity risk is limited.
The option portion of issued convertible loans is reported as a liability and is stated at market value during the term of the loans. If the price of Industrivärden Class C shares rises, so does the carrying amount of the liability. A share price increase of 10% would increase the liability by SEK 405 M and the value of the equities portfolio by SEK 7,000 M. Upon conversion, the liability is transferred from both the loan and option portions to shareholders' equity.
Interest rate risk is the risk that the value of a financial instrument will vary due to changes in market interest rates. The financial instruments that are exposed to interest rate risk consist of loans with variable interest rates and swap agreements with variable rates. Swap agreements may be used to limit interest expenses and to adjust maturities. Industrivärden's interest rate risk and its effect on earnings are judged to be low. At year-end 2010, one interest rate swap agreement was in effect under which a variable interest rate had been swapped against a fixed interest rate. The agreement pertains to borrowings totaling SEK 2,000 M with a term of 3 years. At yearend 2010 the market value of the interest rate swap agreement was SEK –99 M, which is reported directly against shareholders' equity in the consolidated financial statements.
Liquidity risk is the risk of encountering difficulties in accessing liquid assets in order to meet obligations associated with financial instruments. In accordance with Industrivärden's finance policy, at any given time the Group has a minimum of SEK 2 billion in committed credit facilities at its disposal. Refinancing risk is the risk of the Company being unable to obtain financing or that financing can only be obtained at a considerably higher cost. In the aim of minimizing refinancing risk, the loans' maturities are distributed evenly over time to lower the likelihood of a large portion of loans being refinanced at the same date. Industrivärden's liquidity risk and refinancing risk are judged to be low. With an equity ratio of 79% (79%) and an A rating, Industrivärden has considerable financial flexibility.
Currency risk is the risk that the value of assets and liabilities will vary due to changes in exchange rates. Industrivärden's currency risk is mainly coupled to the outstanding convertible loan of EUR 500 M. The loan was hedged for the most part during the year, but hedge accounting has not been applied.
Counterparty risk is the risk of a party in a transaction with a financial instrument not being able to meet its obligations and thereby causing loss to the other party. Internal rules set by Industrivärden prescribe high creditworthiness of counterparties with respect to investments, derivative transactions, etc., which is why counterparty risk is considered to be low.
Operational risk is the risk of incurring a loss due to defects in internal routines and systems. AB Industrivärden's risk management rests on a foundation of internally adopted internal guidelines and rules, and of policies adopted by the Board of Directors. Important rules include investment rules and the finance policy. To strengthen internal control, Industrivärden's external auditors perform a review of interim reports. Matters pertaining to confidentiality and information security are of major importance for Industrivärden and are regulated by internal guidelines.
Industrivärden's financing and management of financial risks are conducted in accordance with guidelines set by the Board of Directors. Industrivärden's finance function works primarily with financing and investment of surplus liquidity.
Industrivärden's financing is arranged through both short- and longterm borrowing. The credit facilities give Industrivärden the ability to act on attractive investment opportunities at short notice.
| Utilized | ||
|---|---|---|
| Amount, | amount, | |
| SEK M | SEK M | Term |
| 4,155 | 4,155 | 2015 |
| 6,300 | 6,100 | 2012–2017 |
| 8,000 | 800 | 2012 |
| 11,055 | ||
| – | 200 | |
| – | 455 | |
| 2,000 | 1,200 | |
| 750 | 429 | |
| 2,284 | ||
In addition, Industrivärden has unutilized committed bank loans totaling SEK 2,000 M.
The average interest rate for Industrivärden's debt portfolio as per December 31, 2010, was 3.8% (4.4%). The average interest duration was 43 months (47).
Maturity structure for undiscounted, contracted interest-bearing receivables and liabilities and derivative instruments along with future interest payments accruing therewith:
| SEK M | 2011 | 2012–2015 | After 2015 | Total |
|---|---|---|---|---|
| Interest-bearing receivables | 14 | 210 | – | 224 |
| Interest-bearing liabilities | –2,774 | –9,356 | –3,279 | –15,409 |
| Derivative instruments | –13 | –4 | – | –17 |
| Total as per December 31, 2010 | –2,773 | –9,150 | –3,279 | –15,202 |
| SEK M | 2010 | 2011–2014 | After 2014 | |
| Interest-bearing receivables | 77 | – | – | Total 77 |
| Interest-bearing liabilities | –2,765 | –6,217 | –3,937 | –12,919 |
| Derivative instruments | –87 | –10 | – | –97 |
| Total as per December 31, 2009 | –2,775 | –6,227 | –3,937 | –12,939 |
| Dec. | Dec. | |||
|---|---|---|---|---|
| 31, | Change in | Other | 31, | |
| SEK M | 2010 | borrowing | changes | 2009 |
| Cash and cash equivalents | 0 | – | – | 0 |
| Interest-bearing receivables | 180 | – | 103 | 77 |
| Non-current interest- | ||||
| bearing liabilities | 11,123 | 2,610 | – | 8,513 |
| Current interest-bearing | ||||
| liabilities | 2,458 | 128 | – | 2,330 |
| Interest-bearing net debt | 13,401 | 2,738 | 103 | 10,766 |
Industrivärden has been assigned international corporate credit ratings of A/Stable/A–1 by Standard & Poor's, which has also assigned the commercial paper programs credit ratings of K1 and A–1, respectively.
| December 31, 2010 | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| Assets | ||||
| – Equities | 71,261 | 5 | – | 71,266 |
| – Equity derivatives | – | 15 | – | 15 |
| – Other derivatives | – | 5 | – | 5 |
| Total assets | 71,261 | 25 | – | 71,286 |
| Liabilities | ||||
| Other non-current liabilities | ||||
| – Option portion of | ||||
| convertible loan | – | 1,319 | – | 1,319 |
| Other current liabilities | ||||
| – Equity derivatives | 13 | 20 | – | 33 |
| – Derivative instruments | ||||
| used for hedging | – | 99 | – | 99 |
| – Other derivatives | 21 | – | – | 21 |
| Total liabilities | 34 | 1,438 | – | 1,472 |
| December 31, 2009 | Level 1 | Level 2 | Level 3 | Total |
| Assets | ||||
| Equities | 53,548 | – | – | 53,548 |
| Total assets | 53,548 | – | – | 53,548 |
| Liabilities | ||||
| Other current liabilities | ||||
| – Equity derivatives | – | 97 | – | 97 |
| – Derivative instruments | ||||
| used for hedging | – | 171 | – | 171 |
In accordance with IFRS 7, financial instruments are carried at fair value based on a 3-level hierarchy. The classification is based on the input data used in the valuation of the instruments.
Total liabilities – 268 – 268
For level 1, quoted prices on an active market are used, e.g., stocks listed on the Stockholm Stock Exchange.
For level 2, other observable market data than quoted prices for the asset or liability is used.
For level 3, fair value is determined using a valuation technique that is based on assumptions that are not supported by prices in observable data.
amounts in millions of swedish kronor (sek m) unless stated otherwise.
| 2010 | 2009 | |
|---|---|---|
| Ericsson | 153 | 138 |
| Handelsbanken | 505 | 442 |
| Höganäs | 11 | 11 |
| Indutrade | 63 | 94 |
| Munters | 11 | – |
| Sandvik | 138 | 430 |
| SCA | 262 | 248 |
| Skanska | 182 | 156 |
| SSAB | 53 | 212 |
| Volvo | – | 140 |
| Other | – | – |
| Group | 1,379 | 1,871 |
| 2010 | 2009 | |
|---|---|---|
| Ericsson | 703 | 417 |
| Handelsbanken | 691 | 4,953 |
| Höganäs | 351 | 333 |
| Indutrade | 1,429 | 1,014 |
| Munters | 333 | 90 |
| Sandvik | 6,217 | 5,092 |
| SCA | 733 | 2,015 |
| Skanska | 385 | 1,303 |
| SSAB | –505 | 2,832 |
| Volvo | 4,660 | 1,209 |
| 14,997 | 19,258 | |
| Option portion's change in value, | ||
| convertible loan | –936 | – |
| Revaluation of convertible loan | –77 | – |
| Other | 7 | 49 |
| Group1 | 13,991 | 19,307 |
1) For stocks held at both the start and end of the year, the change in value consists of the difference in the market value between these dates. For stocks acquired during the year, the change in value consists of the difference between the price paid and the market value at the end of the year. For stocks sold during the year, the change in value consists of the difference between the sales price received and the value of the stocks at the start of the year.
| 2010 | 2009 | |
|---|---|---|
| Ericsson | 61 | 156 |
| Handelsbanken | 428 | –261 |
| Höganäs | – | – |
| Indutrade | –4 | – |
| Munters | –843 | – |
| Sandvik | 232 | –76 |
| SCA | – | – |
| Skanska | 363 | –120 |
| SSAB | 540 | –116 |
| Volvo | 1,770 | 17 |
| Group | 2,547 | –400 |
| Group | Parent Company | |||
|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | |
| Short-term equity and derivative transactions |
97 | 93 | 79 | 108 |
| Short-term equity trading by Nordinvest |
17 | 7 | – | – |
| Total | 114 | 100 | 79 | 108 |
| 2010 | 2009 | |
|---|---|---|
| Payroll costs, incl. directors' fees | –57 | –50 |
| Other1 | –37 | –36 |
| Group | –94 | –86 |
1) Costs for being listed on the stock exchange, for the Annual Report and interim reports, for computer and system support, and for consulting fees.
| note7 Average number of employees |
|||||||
|---|---|---|---|---|---|---|---|
| 2010 | 2009 | ||||||
| Number of | Of whom, | Number of | Of whom, | ||||
| employees | women | employees | women | ||||
| Parent Company | 18 | 7 | 19 | 6 | |||
| Subsidiaries | 3 | – | 2 | – | |||
| Total | 21 | 7 | 21 | 6 |
| note 8 Salaries and other remuneration; social security costs |
||||||||
|---|---|---|---|---|---|---|---|---|
| 2010 | 2009 | |||||||
| Directors' fees | Salaries and other remuneration |
Social security costs |
Of which, pension costs |
Directors' fees | Salaries and other remuneration |
Social security costs |
Of which, pension costs |
|
| Parent Company | 4 | 27 | 26 | 17 | 4 | 25 | 21 | 12 |
| Subsidiaries | – | 9 | 4 | 1 | – | 6 | 3 | 1 |
| Total, Group | 4 | 36 | 30 | 18 | 4 | 31 | 24 | 13 |
| Other | Pension | |||
|---|---|---|---|---|
| Base salary | Variable salary | benefits | costs | |
| CEO1 | 7.2 1 | – | 0.1 | 12.4 |
| Other members of executive management (4 persons)1 | 8.8 | 5.4 | 0.3 | 2.0 |
| Total, Group | 16.0 | 5.4 | 0.4 | 14.4 |
1) The Company's cost amounts to SEK 2.8 M after deducting directors' fees from portfolio companies that were paid in to the Company.
| Group1 | Parent Company1 | |||
|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | |
| PWC | ||||
| Audit assignment | 1.0 | 1.0 | 0.7 | 0.7 |
| Auditing activities in addition to audit assignment |
0.3 | 0.2 | 0.3 | 0.2 |
| Tax consulting | 0.1 | 0.2 | 0.1 | 0.2 |
| Other services | 0.7 | 0.1 | 0.7 | 0.1 |
| Total | 2.1 | 1.5 | 1.8 | 1.2 |
1) Including value-added tax (since holding companies are not subject to value-added tax and thereby cannot deduct value-added tax).
The other members of the executive management together received base salary of SEK 8.8 M (8.7). The other members of the executive management are entitled to a performance-based variable salary portion which for 2010 could amount to a maximum of 50% – and in one case 100% – of their respective base salaries. The outcome is based on the achievement of individually set goals as well as on joint targets regarding growth in net asset value.
The variable salary portion pertaining to the 2010 fiscal year amounted to SEK 5.4 M (4.0), which will be paid out in 2011. The other members of the executive management are covered from 65 years by defined contribution pension plans, whereby the amount of the pension benefits is dependent on the performance of their contracted pension plans. The total cost of the pension obligation in 2010 for these executives was SEK 2.0 M (2.3). In the event the Company cancels their employment contracts, these executives are entitled to two years' notice.
The 2008 Annual General Meeting of AB Industrivärden resolved that all employees of the Group would be offered stock options in Industrivärden at market terms and in other respects in accordance with the Board's complete proposal to the Annual General Meeting. The program involved the issuance of a maximum of 1,000,000 stock options for 1,000,000 Class C shares and has been secured through a total return swap. The offer was fully subscribed. In accordance with the terms of the offer, the exercise price per share was set at SEK 106.80. The options can be exercised to purchase Class C shares in the Company during the period July 1, 2008, through May 31, 2013. Under the condition that the respective employees remain employed by Industrivärden three years after purchasing their options, the Company will pay a subsidy for their option purchase corresponding to 75% of the option premium paid (gross, before tax). The Company's costs for the subsidy will be covered by revenue from the sale of the options. No options were exercised during the year.
| 2010 | 2009 | |
|---|---|---|
| Market value of equities portfolio on January 1 | 32,265 | 34,744 |
| Less: business-related shares | –27,204 | –31,439 |
| Basis for standard income | 5,061 | 3,305 |
| Standard earnings 1.5% | 76 | 50 |
| Dividends received during each year | 567 | 1,095 |
| Management costs, net financial items, etc. | –563 | –544 |
| Dividend paid out2 | –1,545 1 | –1,159 |
| Taxable income | –1,466 | –558 |
| Tax-loss carryforward from previous years | –562 | –4 |
| Accumulated tax-loss carryforward | –2,028 | –562 |
1) Proposed by the Board of Directors.
2) Payment is made during the following year, in accordance with a decision by the AGM.
| Group | |||
|---|---|---|---|
| Land and buildings | Equipment | Total property, plant and equipment |
|
| Opening cost | 26 | 17 | 43 |
| Investments during the year | 3 | 1 | 4 |
| Sales and disposals | – | –10 | –10 |
| Closing accumulated cost | 29 | 8 | 37 |
| Opening depreciation | –7 | –11 | –18 |
| Depreciation for the year | –1 | 0 | –1 |
| Sales and disposals | – | 9 | 9 |
| Closing accumulated depreciation | –8 | –2 | –10 |
| Book value, 12/31/2010 | 211 | 6 | 27 |
| Book value, 12/31/2009 | 191 | 6 | 25 |
| The tax assessment value of Swedish properties was SEK 43 M (40). |
1) Of which, land SEK 3 M (3).
| 2010 | 2009 | |||||
|---|---|---|---|---|---|---|
| Number of shares Share of capital, % Share of votes, % | Cost | Market value1 | Market value1 | |||
| Ericsson A | 77,680,600 | 2.4 | 13.8 | 3,353 | 5,748 | 4,984 |
| Handelsbanken A | 65,217,930 | 10.5 | 10.6 | 5,700 | 14,015 | 12,881 |
| Handelsbanken B | – | – | – | 15 | ||
| Höganäs B | 3,550,000 | 10.1 | 8.1 | 637 | 934 | 582 |
| Indutrade2 | 14,727,800 | 36.8 | 36.8 | 102 | 3,417 | 1,992 |
| Munters | – | – | – | – | – | 510 |
| Sandvik | 138,443,752 | 11.7 | 11.7 | 6,553 | 18,150 | 11,701 |
| SCA A | 45,100,000 | 10.0 | 29.5 | 821 | 4,758 | 4,301 |
| SCA B | 25,700,000 | 1,757 | 2,729 | 2,453 | ||
| Skanska A | 15,091,940 | 7.6 | 27.8 | 714 | 2,012 | 1,835 |
| Skanska B | 17,019,386 | 1,310 | 2,269 | 1,698 | ||
| SSAB A | 56,105,972 | 17.3 | 22.5 | 4,107 | 6,340 | 6,299 |
| SSAB B | 73,498 | 11 | 7 | 14 | ||
| Volvo A | 87,646,151 | 4.4 | 10.7 | 7,730 | 10,079 | 4,283 |
| Volvo B | 5,345,661 | 554 | 633 | – | ||
| Group's holdings of equities | 33,349 | 71,092 | 53,548 | |||
| Less: associated companies | –11,159 | –10,036 | ||||
| Less holdings owned via subsidiaries | –23,795 | –21,418 | ||||
| Parent Company's holdings of equities, excluding shares in associated companies and subsidiaries 36,138 |
1) The market value corresponds to the book value.
2) In 2010 Industrivärden issued a total of 358,000 call options to senior executives of Indutrade. Each option entitles the bearer to purchase one share of Indutrade stock for SEK 191.44 during the period May 1–October 31, 2013. The total cost of the underlying shares is SEK 2,481 thousand. The total value of the exercise price and expensed premium is SEK 74,697 thousand.
note 13 Shares in associated companies Parent Company Reg. no. Domicile Shareholders' equity Earnings after tax Share of capital, % Share of votes, % No. shares, 000s Book value SCA1 556012-6293 Stockholm 67,821 5,592 0.7 0.3 5,000 531 Skanska 556000-4615 Stockholm 20,792 3,940 7.6 27.8 32,111 4,280 SSAB 556016-3429 Stockholm 30,076 764 17.3 22.5 56,179 6,348 Total 11,159
1) In 2009 the Parent Company AB Industrivärden sold the majority of its shareholding in SCA to the wholly owned subsidiary Industrivärden Förvaltning AB.
The Parent Company's remaining shareholding in SCA continues to be defined as an associate company.
| Share of capital, | Shareholders' | Parent Company | ||||
|---|---|---|---|---|---|---|
| Reg. no. | Domicile | % | No. shares | equity | Book value | |
| Industrivärden Invest AB | 556775-6126 | Stockholm | 100 | 1,000 | 8,722 | 1,3301 |
| Industrivärden Förvaltning AB | 556777-8260 | Stockholm | 100 | 1,000 | 4,957 | 1,5101 |
| Industrivärden Holding AB | 556260-3067 | Stockholm | 100 | 10,000 | 3,124 | 1,500 |
| Industrivärden Service AB | 556364-7758 | Stockholm | 100 | 100,000 | 25 | 42 |
| Forma 5373 u.ä.t. AB Nils Dacke | 556833-0558 | Stockholm | 100 | 500 | 0 | 0 |
| Forma 5374 u.ä.t. Investment AB Bahco | 556833-0533 | Stockholm | 100 | 500 | 0 | 0 |
| Forma 5375 u.ä.t. Floras Kulle AB | 556833-0525 | Stockholm | 80 | 400 | 200 | 8 |
| Investment AB Promotion | 556364-8137 | Stockholm | 100 | 10,000 | 149 | 155 |
| Total | 4,545 |
1) Conditional shareholder contributions totaling SEK 7,410 M were repaid in 2010.
| Group Equities |
|||
|---|---|---|---|
| 2010 | 2009 | ||
| Opening value | 53,548 | 34,744 | |
| Reclassification to short-term investment | – | –54 | |
| Disposals at sales value | –3,097 | –1,645 | |
| Purchases | 5,644 | 1,245 | |
| Change in value | 14,997 | 19,258 | |
| Closing value | 71,092 | 53,548 |
| Parent Company | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Equities | Shares in associated companies |
Shares in subsidiaries | Total | ||||||
| 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | ||
| Opening value | 22,094 | 23,081 | 10,036 | 7,833 | 11,948 | 2,145 | 44,078 | 33,059 | |
| Reclassification to short-term investment |
– | –54 | – | – | – | – | – | –54 | |
| Disposals at sales value | –2,241 | –8,475 | –435 | –4,564 | –1 | – | –2,677 | –13,039 | |
| Purchases | 4,011 | 1,240 | 1,655 | 5 | 8 | 9,803 | 5,674 | 11,048 | |
| Change in value | 12,274 | 6,302 | –97 | 6,762 | – | – | 12,177 | 13,064 | |
| Other | – | – | – | – | –7,410 | – | –7,410 | – | |
| Closing value | 36,138 | 22,094 | 11,159 | 10,036 | 4,545 | 11,948 | 51,842 | 44,078 |
| note 16 Other current receivables |
||||||
|---|---|---|---|---|---|---|
| Group | Parent Company | |||||
| 2010 | 2009 | 2010 | 2009 | |||
| Interest-bearing receivables | – | 77 | – | 77 | ||
| Receivables from subsidiaries | – | – | 901 | 0 | ||
| Prepaid expenses and accrued | ||||||
| income | 47 | 12 | 47 | 11 | ||
| Other current receivables | 25 | 0 | 24 | 0 | ||
| Total | 72 | 89 | 972 | 88 |
In January 2010, Industrivärden issued five-year convertible bonds for EUR 500 M. The conversion price is SEK 115.50 per share at a fixed euro exchange rate of 10.2258. The conversion price was set at a premium of 37.5% compared with the share price and exceeded net asset value at the time of issue. The annual coupon is 2.5% and is paid half-yearly, on June 1 and December 1. Upon full conversion, 44.3 million Class C shares will be issued.
If the dividend yield for Industrivärden's Class C shares exceeds 3.5%, the conversion price will be adjusted using a standard formula. Industrivärden has the right to demand conversion after approximately 3.5 year term, provided that the value of the convertible exceeds the nominal value by 30% for a certain period of time. Upon maturity, Industrivärden has an opportunity to convert part or all of the loan even if the current share price has not reached the conversion price. In such case, the convertible investors would be guaranteed to receive cash corresponding to the nominal amount of the loan. The loan matures on February 27, 2015.
The defined contribution plans involve retirement pensions, disability pensions and family pensions and entail that premiums are paid on a regular basis during the year to independent legal entities.
Industrivärden's defined benefit plans involve retirement pensions, disability pensions and family pensions, and ordinarily entail an obligation to pay lifetime benefits. Earning of pension entitlement is based on the number of years in service and increases the employee's pension entitlement each year. The obligation is reported on a continuing basis through profit or loss and as a pension provision on the balance sheet.
The pension liability as per December 31, 2010, was SEK 68 M (58) for the Group and Parent Company. The value of plan assets was SEK 3 M (3).
Unrecognized actuarial losses amounted to SEK 4 M (4) for the Group and Parent Company.
The Group's total reported pension costs amount to SEK 18 M (13), of which SEK 17 M (12) pertains to the Parent Company. Interest on pension obligations and the return on plan assets are reported in the Income Statement as Financial items. For 2011, the Parent Company's pension costs are estimated to amount to approximately SEK 17 M.
| Group | ||||
|---|---|---|---|---|
| Actuarial assumptions | 2010 | 2009 | ||
| Discount rate, % | 4.5 | 3.8 | ||
| Anticipated return on plan assets, % | 5.0 | 5.0 | ||
| Future salary increases, % | 4.0 | 4.0 | ||
| Anticipated inflation, % | 2.0 | 1.5 |
| Group | Parent Company | ||||
|---|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | ||
| Convertible loans | 4,155 | – | 4,155 | – | |
| MTN program | 800 | 1,255 | 800 | 1,255 | |
| Bank loan | 6,100 | 7,200 | – | 6,200 | |
| Pension liability (see Note 18) | 68 | 58 | 68 | 58 | |
| Total | 11,123 | 8,513 | 5,023 | 7,513 | |
| Group | Parent Company | ||||
|---|---|---|---|---|---|
| Maturity dates of loans | 2010 | 2009 | 2010 | 2009 | |
| –2011 | – | 655 | – | 655 | |
| –2012 | 1,300 | 1,300 | 800 | 1,300 | |
| –2013 | 2,000 | 2,000 | – | 2,000 | |
| –2014 or later1 | 7,823 | 4,558 | 4,223 | 3,558 | |
| Total | 11,123 | 8,513 | 5,023 | 7,513 | |
| 1) Of which, pension liability | 68 | 58 | 68 | 58 |
Market valuation of current and long-term interest-bearing liabilities as per 12/31/2010 would increase interest-bearing liabilities by SEK 383 M (393).
| 2010 | 2009 | |
|---|---|---|
| Option portion of convertible loans | 1,319 | – |
| Other | 25 | 13 |
| Group | 1,344 | 13 |
| Group | Parent Company | |||
|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | |
| Commercial paper | 1,196 | 900 | 1,196 | 900 |
| MTN program | 455 | 1,200 | 455 | 1,200 |
| Bank loan | 200 | – | – | – |
| Bank overdraft facility | 429 | 230 | 682 | 503 |
| Interim payments | 178 | – | 93 | – |
| Total | 2,458 | 2,330 | 2,426 | 2,603 |
| Group | Parent Company | |||
|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | |
| Interest rate swaps | 99 | 171 | 99 | 171 |
| Other current liabilities | 96 | 113 | 93 | 113 |
| Accrued interest | 43 | 57 | 41 | 57 |
| Other accrued expenses | 55 | 46 | 46 | 36 |
| Liabilities to subsidiaries | – | – | 1 | 40 |
| Accounts payable, trade | 2 | 3 | 2 | 2 |
| Total | 295 | 390 | 282 | 419 |
The Group's non-current interest-bearing liabilities include SEK 68 M (58) for pension obligations and similar benefits for current and former company directors and CEOs. The corresponding amount for the Parent Company is SEK 68 M (58), as shown in the item Pension liability in Notes 18 and 19.
Certain transactions have been made with wholly owned subsidiaries, such as rents for premises at market terms.
Stock dividends have been received from certain, listed associated companies. Members of the executive management have received directors' fees from listed associated companies, which were paid to Industrivärden.
to the annual general meeting of the shareholders of AB Industrivärden (publ)
We have audited the annual accounts, the consolidated accounts, the accounting records and the administration of the board of directors and the president of AB Industrivärden (publ) for the year 2010. The company's annual report is on pages 31–47 and 51 in the printed version of this document. The board of directors and the president are responsible for these accounts and the administration of the company as well as for the application of the Annual Accounts Act when preparing the annual accounts and the application of international financial reporting standards (IFRSs) as adopted by the EU and the Annual Accounts Act when preparing the consolidated accounts. Our responsibility is to express an opinion on the annual accounts, the consolidated accounts and the administration based on our audit.
We conducted our audit in accordance with generally accepted auditing standards in Sweden. Those standards require that we plan and perform the audit to obtain reasonable assurance that the annual accounts and the consolidated accounts are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the accounts. An audit also includes assessing the accounting principles used and their application by the board of directors and the president and significant estimates made by the board of directors and the president when preparing the annual accounts and consolidated accounts as well as evaluating the overall presentation of information in the annual accounts and the consolidated accounts. As a basis for our opinion concerning discharge from liability, we examined significant decisions, actions taken and circumstances of the company in order to be able to determine the liability, if any, to the company of any board member or the president. We also examined whether any board member or the president has, in any other way, acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association. We believe that our audit provides a reasonable basis for our opinion set out below.
The annual accounts have been prepared in accordance with the Annual Accounts Act and give a true and fair view of the company's financial position and results of operations in accordance with generally accepted accounting principles in Sweden. The consolidated accounts have been prepared in accordance with international financial reporting standards (IFRSs) as adopted by the EU and the Annual Accounts Act and give a true and fair view of the group's financial position and results of operations. A corporate governance statement has been prepared. The statutory administration report and the corporate governance statement are consistent with the other parts of the annual accounts and the consolidated accounts.
We recommend to the annual meeting of shareholders that the income statement and balance sheet of the parent company and the group be adopted, that the profit of the parent company be dealt with in accordance with the proposal in the statutory administration report and that the members of the board of directors and the president be discharged from liability for the financial year.
Stockholm, February 9, 2011 PricewaterhouseCoopers AB
Anders Lundin Authorized Public Accountant
sverker martin-löf Doctor of Technology, Honorary Ph.D. Born 1943, Stockholm. Chairman of the Board since 2010. Vice Chairman of the Board 2002–2010. Director since 2002. Chairman of SCA, Skanska and SSAB. Vice Chairman of Ericsson. Director of Svenska Handelsbanken. Shareholding: 14,000.
olof faxander M.Sc. Materials Science, B.Sc. Business Administration. Born 1970, Saltsjö Duvnäs. Director since 2009. President and CEO of Sandvik. Chairman of Jernkontoret. Shareholding: 4,000.
boel flodgren J.S.D., Honorary Doctor of Economics and Business Administration, Professor. Born 1942, Lund. Director since 2002. Director of Brinova and the University of Copenhagen. Shareholding: 1,900.
finn johnsson MBA, Honorary Doctor of Economics. Born 1946, Gothenburg. Director since 2000. Chairman of Ovako, KappAhl, City Airline, Thomas Concrete Group, Luvata Oy and EFG. Director of Skanska. Shareholding: 20,300.
hans larsson BA. Born 1942, Stockholm. Director since 2010. Chairman of Handelsbanken, Nobia, Attendo and others. Shareholding: 0.
fredrik lundberg M.Sc. Eng., MBA, Honorary Doctor of Economics, Honorary Doctor of Engineering. Born 1951, Djursholm. Director since 2004. President and CEO of L E Lundbergföretagen. Chairman of Cardo, Holmen and Hufvudstaden. Vice Chairman of Svenska Handelsbanken. Director of L E Lundbergföretagen and Sandvik. Shareholding: 5,196,000.
lennart nilsson M. Sc., Eng., Honorary Doctor of Economics. Born 1941, Lund. Director since 1997. President of the Crafoord Foundation. Chairman of the Erik Philip Sörensen Foundation and Tacticus. Vice Chairman of Cardo. Director of the Albert Pålsson Foundation for Research and Charity, Kalmar Läns Kapitalförvaltning,
Fastighets AB Malmö City and
Malmöhus Invest. Shareholding: 6,000.
anders nyrén MBA, U.S. MBA. Born 1954, Bromma. President and Chief Executive Officer of Industrivärden. Director since 2001. Chairman of Sandvik. Vice Chairman of Svenska Handelsbanken. Director of Ericsson, SCA, SSAB, Volvo and Ernströmgruppen. Shareholding: 61,550. Stock options: 125,000.
Martin Hamner, Carl-Olof By, Anders Nyrén, Sverker Sivall and Fredrik Calles.
MBA, U.S. MBA, born 1954, President and Chief Executive Officer, Industrivärden employee since 2001. Shareholding: 61,550. Stock options: 125,000. Anders Nyrén is Chairman of Sandvik, Vice Chairman of Svenska Handelsbanken, and a director of Ericsson, SCA, SSAB, Volvo and Ernströmgruppen. From 1997 to 2001 he served as Executive Vice President and CFO of Skanska; from 1996 to 1997 he was an executive of Nordbanken and member of the executive management; from 1992 to 1996 he served as Executive Vice President and CFO of Securum; and from 1987 to 1992 he served as CEO of OM International.
B.A., M. Pol. Sc., born 1945, Executive Vice President, Industrivärden employee since 1990. Shareholding: 34,000. Stock options: 85,000 Carl-Olof By is a director of Handelsbanken Region Stockholm, KnowIT and NASDAQ OMX Nordic Limited. From 1980 to 1990 Carl-Olof By served as CFO for Investment AB Promotion/Bahco.
Compensation Committee to make recommendations to the Board on the CEO's compensation and to set the compensation for the other members of the Executive Management: Sverker Martin-Löf (committee chair) and Hans Larsson.
Audit Committee for oversight of the Company's risk management, business management and control, and financial reporting: Industrivärden's Board of Directors excluding CEO Anders Nyrén. Committee chair: Hans Larsson.
Nominating Committee for election of the Board of Directors: Sverker Martin-Löf (Chairman of the Board), Bo Damberg (the Jan Wallander and Tom Hedelius Foundation), Håkan Sandberg – committee chair (Handelsbanken Pension Foundation and Handelsbanken Pension Fund), Ulf Lundahl (L E Lundbergföretagen), and Anders Nyberg (SCA pension foundations and others).
A presentation of the committees' work can be found in the Corporate Governance Report on pages 31–33.
MBA, born 1964, Chief Financial Officer, Industrivärden employee since 2008. Shareholding: 5,000. Stock options: 65,000. From 1999 to 2007 Martin Hamner served as Group Controller and Head of Investor Relations for ASSA ABLOY, and from 1987 to 1999 he served as an Authorized Public Accountant for PricewaterhouseCoopers.
MBA, born 1966, Head of Market Operations, Industrivärden employee since 2003. Stock options: 85,000. From 1996 to 2003 Fredric Calles served as Head of Trading for Alfred Berg Fondkommission; from 1993 to 1996 he served as Assistant Trading Manager for UBS Sweden.
MBA, born 1970, Head of Communication/IRO, Industrivärden employee since 1997. Shareholding: 5,000. Stock options: 65,000. From 1994 to 1997 Sverker Sivall served as Investment Controller for AstraZeneca.
jens melander, MBA, born 1976, Investment Manager, Industrivärden employee since 2002. Stock options: 65,000.
erik röjvall, MBA, born 1973, Investment Manager, Industrivärden employee since 2000. Shareholding: 4,000.
peter nyström, MBA, born 1960, Team Manager, Industrivärden employee since 2002. Stock options: 40,000.
madeleine wallmark, MBA, born 1982, Team Manager, Industrivärden employee since 2006. Stock options: 25,000.
PricewaterhouseCoopers AB.
Chief Auditor: anders lundin, Authorized Public Accountant, born 1956, Stockholm. In 2010 Anders Lundin was Chief Auditor of the listed companies Industrivärden, AarhusKarlshamn, Electrolux, Husqvarna, Loomis, Melker Schörling and SCA.
In 2010 PricewaterhouseCoopers had a total of 102 auditing assignments for companies listed on OMX NASDAQ Nordic Stockholm or the MGN exchange, of which one was in cooperation with another auditing firm.
For a company to be defined as a holding company for tax purposes, the requirements are that the company is engaged exclusively or almost exclusively in the management of securities, that the company's stock is spread among a large number of shareholders, and that the portfolio of securities is well distributed.
Holding companies, along with mutual funds, are usually classified as intermediaries. The principles of legislation in this area are:
The main principles concerning taxation of holding companies are:
■ that interest income is taxable, while interest expenses and management costs are tax deductible,
Tax-loss carryforwards are deductible and can be accumulated in order to be deducted from future taxable surpluses.
See note 10 on page 44.
For stocks held at both the start and end of the year, the change in market value consists of the difference in value between these two dates. For stocks sold during the year, the change in market value consists of the difference between the sales price of the shares and their value at the start of the year. For stocks acquired during the year, the change in market value consists of the difference between the cost of the shares and their value at the end of the year.
The difference between net asset value per share and the stock price, measured in proportion to net asset value.
Dividend per share in relation to the share price on December 31. earnings per share
Net income for the year divided by the total number of shares. interest-bearing net debt
Interest-bearing liabilities and pensions less cash and cash equivalents and interest-bearing receivables.
The value of the equities portfolio based on market prices on the balance sheet date.
The market value of the equities portfolio less interest-bearing net debt. net asset value including reinvested dividends To calculate the development of net asset value before dividends paid out, the dividends paid out by the Company are recalculated to take into account the performance of the listed portfolio. This gives a measure of how net asset value would have developed if Industrivärden had not paid any dividend.
Interest-bearing net debt in relation to the market value of the equities portfolio.
Change in the share price taking into account reinvested dividends. The total return is compared against the return index (SIXRX), which indicates the price trend including reinvested dividends for stocks listed on the Stockholm Stock Exchange.
Industrivärden aspires to meet strong demands for communication with its shareholders, the stock market, and all stakeholders in general. Information provided to the market shall maintain a high standard of quality and be made quickly available to all recipients. Through a close dialog with market participants, Industrivärden strives to continuously develop and improve its communication.
Interim reports will be published on the following dates:
■ Thursday, May 5, in Stockholm
Interim reports, year-end reports, annual reports and press releases can be ordered using any of the following alternatives:
Subscriptions for Industrivärden's press releases, interim reports and year-end reports can be arranged through registration of an e-mail address on Industrivärden's website.
Industrivärden's website, www.industrivarden.net, is a central information channel for communicating with parties interested in the Company. It presents current and historic information about the Company in a clear and simple format.
Sverker Sivall, tel. +46-8-666 64 19, e-mail: [email protected]
The Annual General Meeting will be held at 2 p.m. on Thursday, May 5, 2011, at the Grand Hotel, Vinterträdgården room (entrance at the corner of Stallgatan/Blasieholmsgatan), in Stockholm, Sweden. The doors will open at 1 p.m., and registration will take place until 2 p.m., at which time the doors will be closed. Coffee will be served before the Meeting.
To be entitled to participate at the Annual General Meeting, shareholders must be listed on the shareholder register printed out by Euroclear Sweden AB (formerly VPC) on April 29, 2011, and give notice of their intention to participate in the Meeting no later than April 29, 2011.
Shares are registered in the shareholder register maintained by Euroclear Sweden in the name of either the owner or the owner's nominee. Shareholders who have not arranged to have their shares registered in the nominee's name are registered in their own names. Shareholders whose shares are managed by a third party may have chosen to have their shares registered in the nominee's name. In order to be able to participate in the Meeting, such shareholders who own nominee-registered shares must request in advance that their shares be temporarily registered in their own names as per April 29, 2011. Shareholders are advised to contact their nominee well in advance before April 29, 2011.
Notice of intention to participate at the Meeting can be made using one of the following alternatives:
■ name
Notifications must be received by the Company no later than April 29, 2011.
Shareholders may exercise their right to participate at the Meeting by proxy. Please use the proxy statement provided on the notification form, which is available on Industrivärden's website. Proxy can also be arranged by providing the application information above for the shareholder as well as his/her representative. The proxy statement must also include the date and location for signature as well as the shareholder's signature and name printed out. For representation of legal persons by proxy, the proxy must be signed by an authorized signatory of the company/organization, and a copy of the registration certificate, which indicates the company's/organization's authorized signatories, must be attached. Proxies may not be older than one year. Proxy statements must be sent in or shown in original.
The dividend for 2010 will be paid to shareholders who are recorded in the shareholder register on the record date. The Board of Directors proposes May 10, 2011, as the record date. Provided that the Annual General Meeting approves the Board's proposal, taking into account the so-called three-day payment schedule (three business days), this entails that purchases of Industrivärden shares on the day of the AGM, May 5, 2011, will carry rights to the dividend for 2010 (provided that the purchase was recorded in the shareholder register on May 10, 2011), and that payment of the dividend is expected to take place via Euroclear Sweden on May 13, 2011.
ab industrivärden (publ) | reg. no. 556043-4200 | box 5403 | se-114 84 stockholm phone +46-8-666 64 00 | fax +46-8-661 46 28 | www.industrivarden.net | [email protected]
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