Quarterly Report • Oct 31, 2007
Quarterly Report
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The information provided herein is such that AB Industrivärden (publ) is obligated to disclose pursuant to the Securities and Clearing Operations Act (SFS 1992:543) and/or the Financial Instruments Trading Act (SFS 1991:980). Submitted for publication at 9 a.m. on October 31, 2007.
| Annual Average Total Return | |||
|---|---|---|---|
| Industrivärden Class A |
Index (SIXRX) |
Excess return %-pts/yr. |
|
| 1 year (10/27/06– 10/29/07) | 20% | 13% | +7 |
| 5 yrs. (Oct. ´02 – Oct. ´07) | 31% | 25% | +6 |
| 10 yrs. (Oct. ´97 – Oct. ´07) | 13% | 11% | +2 |
| SEK billion | ||||||
|---|---|---|---|---|---|---|
| 2007 Oct. 29 |
2007 Sept. 30 |
2006 Dec. 31 |
2005 Dec.31 |
|||
| Equities portfolio | 72.3 | 77.9 | 63.3 | 52.3 | ||
| Net debt | -11.1 | -11.0 | -4.8 | -4.0 | ||
| Net asset value | 61.2 | 66.9 | 58.5 | 48.3 |
1| Industrivärden Interim Report January 1 – September 30, 2007 AB Industrivärden (publ) | Reg. no. 556043-4200 | Box 5403 | SE-114 84 Stockholm | Phone +46-8-666 64 00 | [email protected] www.industrivarden.net
The stock market was unsteady during the past quarter to say the least. Against this backdrop I am happy to say that we now have an entirely transparent portfolio whose value is easy to assess over time. Taking into account dividends and redemption programs, our portfolio has generated a total return of 8% for the year to date, compared with 6% for the market as a whole. As per October 29 the total return was 5% for Industrivärden's Class A shares as well as for the Class C shares, compared with 6% for the return index. During the first ten months of the year we purchased stocks for SEK 8.8 billion and sold for SEK 2.1 billion.
In the four months that have passed since mid-year, we have witnessed a nearly unprecedented level of drama in the world's financial markets. At the end of the summer, a liquidity crisis unfolded in the financial system due to credit losses in the U.S. subprime lending market. These problems spread quickly to other parts of the credit market. The crisis culminated in September, and the interbank markets virtually stopped working. It was not until the U.S. Federal Reserve Bank cut its federal funds rate by 0.5 percentage points, to 4.75%, and the European Central Bank injected substantial liquidity into the system, that signs of a more normally functioning market could be seen. The price of risk is now higher at the same time that access to liquidity has deteriorated. Many market watchers expect that the effects of this crisis will be long-term and tangible for players in the international financial markets. The imbalances in valuations of the private equity market and the stock market – which I have previously noted – have become smaller. This is because borrowing has become more expensive and encumbered with more traditional credit requirements than what was the case prior to the credit worries. From this perspective, a sound correction has taken place.
The effects on the real economy, which is the reality in which our portfolio companies work, appears to be limited so far. However, the global uncertainty regarding the future effects on the real economy have prompted investors to increase the price of risk. This has resulted in falling and sharply fluctuating stock markets. In our contacts with our portfolio companies, we have not received any signals of a weakening in the prevailing strong economy.
The favorable development of our portfolio companies continues. During the reporting period, Handelsbanken announced the sale of its SPP insurance business to Norway's Storebrand. We have a positive view of the sale, which will enable Handelsbanken to focus more clearly on its strategy – to grow organically with the customer in focus. In line with this strategy, Handelsbanken has opened 20 new branches outside Sweden thus far this year.
In connection with SSAB's rights issue, in addition to our allotment we subscribed for an additional approximately 3.0 million shares, mainly through acquisitions of subscription rights. In all we invested approximately SEK 2.3 billion in SSAB – a post today that is worth approximately SEK 3.0 billion, representing a gain of 29%. SSAB's interim report confirms the favorable performance of the company, which is substantially larger following the acquisition of IPSCO.
Ericsson issued a profit warning for the third quarter as a result of a significant drop in sales volume at the end of the quarter. Despite this, the company's accumulated profit was SEK 23 billion, which is marginally lower than the same period a year earlier. At the same time, Ericsson continues to take shares in the market for mobile infrastructure. It thereby has a considerable advantage in terms of scale economies over its competitors, which all have considerably lower profitability than Ericsson. Naturally, for us as owners the dramatic drop in Ericsson's share price is unsatisfactory. Our involvement in Ericsson is long-term, and in the longer perspective it is our view that Ericsson and its management are taking the right steps to maintain and develop their very profitable business.
Thus far during the year we have bought SEK 4.2 billion in stock in Volvo – an investment that we believe holds promise over the long term. As a result of this and other measures, our debt-equity ratio has risen to 15%.
In conclusion, I am happy to note that most of our debt portfolio today is long-term, with fixed interest at favorable terms that were renegotiated prior to the turbulence in the financial market.
Anders Nyrén
Net asset value was SEK 66.9 billion as per September 30, 2007, an increase of SEK 8.4 billion since the start of the year.
The value of the equities portfolio on September 30, 2007, was SEK 77,930 M (63,325 at the start of the year). During the first nine months of 2007, stocks were purchased for SEK 8,690 M and sold for SEK 2,059 M.
Net debt in the net asset value calculation increased by SEK 6,244 M to SEK -11,058 M, mainly due to net purchases of stocks totaling SEK 6,631 M.
Net asset value per share increased during the first nine months of the year by SEK 22, or 15%, to SEK 173 per share.
As per October 29, 2007, net asset value was SEK 61.2 billion, an increase of SEK 2.7 billion, or 5%, for the year to date. A specification of growth in net asset value can be found in the table on page 6.
Average annual growth in net asset value during the last ten-year period was 7%. Including reinvested dividends, the average annual increase would have been 13%, compared with 11% for the return index.
Total growth in net asset value including reinvested dividends during the last ten-year period was 247%, compared with 172% for the return index.
Net asset value consists of the difference between the market value of the equities portfolio and net debt.
The market value of Industrivärden's equities portfolio on September 30, 2007, was SEK 77,930 M, compared with SEK 63,325 M at the start of the year. The market value on October 29, 2007, was SEK 72,342 M. Taking into account purchases and sales, the change in value through October 29, 2007, was 4% compared with the start of the year. A detailed breakdown of the portfolio at various points in time is provided in the tables on page 6.
| Average | |||||||
|---|---|---|---|---|---|---|---|
| Total return, % | annual total return, % | ||||||
| Period | Five years, | Ten years, | |||||
| Jan. 1, '07-Sept. 30, '07 | Sept. '02-Sept. '07 | Sept. '97-Sept. '07 | |||||
| SSAB | 64 | 62 | 23 | ||||
| Sandvik | 46 | 32 | 15 | ||||
| Volvo | 25 | 43 | 16 | ||||
| Indutrade | 14 | – | – | ||||
| SCA | 3 | 9 | 11 | ||||
| Handelsbanken | 0 | 16 | 12 | ||||
| Skanska | 0 | 29 | 12 | ||||
| Höganäs | -2 | 4 | 2 | ||||
| Munters | -4 | 12 | 17 | ||||
| Ericsson | -6 | 47 | -2 | ||||
| Total | 16 | ||||||
| Index (SIXRX) | 8 | 28 | 10 |
Of the shareholdings listed above, Munters and Höganäs have been held for less than five years. Indutrade was listed on the stock exchange in October 2005.
The total return for Sandvik, Volvo and Munters during the first nine months of 2007 includes payment received for redemption shares.
Profit after financial items rose approximately 30% for the period, mainly due to higher sales volumes, a positive price trend and high internal efficiency combined with a favorable product mix. The operating margin improved further. Large volumes and high capacity utilization moderated the normal seasonal weakening during the third quarter. Invoiced sales as well as operating profit increased for all business areas. The integration of Sandvik's most recent acquisitions continued according to plan, thereby strengthening the company's position in areas with high growth and good profitability.
Operating profit rose 10% for the first nine months of the year. Net interest income improved, mainly due to larger business volumes. Net fee and commission income also increased, mainly from brokerage, funds and advisory business. A total of 20 new branches were opened, all outside Sweden. In September an agreement was reached on the sale of SPP to the Norwegian company Storebrand for SEK 18 billion, with an estimated capital gain of approximately SEK 4 billion.
Profit after financial items for the first nine months was up 30% excluding nonrecurring items. The steel company IPSCO, which was acquired for approximately USD 7.5 billion, is now a division of SSAB. Of SSAB's 39% growth in sales during the period, IPSCO accounted for 26 percentage points. Deliveries of the Swedish steel operation's core niche products – quenched steels and advanced high strength sheet – increased by 14% and together accounted for 44% of deliveries.
Profit after financial items for the first nine months improved by 17%. Earnings for all business groups strengthened as a result of continued price increases and improved volumes, which compensated for higher production and raw material costs. The acquisition of Procter & Gamble's European tissue business was completed in October and has clearly strengthened SCA's leading position in Europe. SCA's efficiency improvement program is continuing according to plan, with full impact expected in 2008. Jan Johansson has been appointed as new CEO, taking office on 1 November.
Income after financial items for the first nine months of the year was level with the same period a year ago. Income for the third quarter was affected by low invoicing from the upgrading and expansion of mobile networks, which has high margins. Half-owned Sony Ericsson showed continued profitable growth. Growth for the services business continued to outpace the market. The newly started multimedia business showed strong growth and a positive operating result.
Income after financial items increased during the period, mainly due to a competitive product and market mix, with strong demand in most markets. Operating income was unchanged for the Trucks business unit and improved for the Construction Equipment and Penta units, while the Buses and Aero business units posted earnings declines. Production investments will be carried out in the years immediately ahead due to a capacity shortfall primarily in Europe. Demand for trucks remains low in North America, but is expected to recover gradually in 2008.
Income after financial items improved for the core Construction and Residential Development business streams during the first half of the year. The Construction business showed an improved operating margin. Net sales increased and the order backlog is strong. The value-creating Commercial Development unit posted lower earnings due to a lower value of sold properties than in the preceding year. Commercial Development and Infrastructure Development projects showed a surplus value of SEK 6.3 billion. Skanska's interim report for the first nine months of the year will be published on November 1.
Profit after financial items rose more than 45% as a result of strong volume growth achieved through limited cost increases. Twelve company acquisitions have been carried out during the year to date. Order bookings showed continued good growth.
Earnings after financial items were level with the same period a year ago. Earnings improved for the Dehumidification and HumiCool divisions, while the Moisture Control Services division posted lower earnings despite an improvement during the third quarter.
Income after financial items rose 13% for the first nine months of the year as a result of high sales volume, price increases and a shift in product mix. Income for the third quarter was affected by higher raw material costs that were not fully compensated by price increases.
Several of Industrivärden's portfolio companies have carried out stock splits in 2007 or issued redemption shares with automatic redemption. Stock splits were carried out during the second quarter by Munters (3:1), SCA (3:1), and Volvo (5:1). Redemption shares, which were sold during the second quarter, were issued by Munters, Sandvik and Volvo. Total payment received from redemptions was SEK 571 M.
During the third quarter, SSAB carried out a rights issue as part of the financing of its acquisition of the North American steel company IPSCO. The terms of the issue were 1:4, at a price of SEK 155 per share. Industrivärden subscribed for its allotment, corresponding to 10,697,302 Class A shares and 17,500 Class B shares, plus an additional 2,943,732 Class A shares and 34,294 Class B shares, of which 2,750,000 Class A shares with the support of acquired subscription rights. In all, shares and subscription rights totaling SEK 2,275 M were acquired.
During the first nine months of 2007, purchases of stocks totaled SEK 8,690 M and sales totaled SEK 2,059 M, gross. Stocks were purchased for a net amount of SEK 6,631 M. Major net purchases consisted of 31,366,650 Volvo A, 14,597,025 SSAB A and 6,431,200 Sandvik. Major net sales consisted of 5,963,150 shares in Tandberg Television and 134,700,000 redemption shares in Sandvik.
| Net purchases | No. of shares | SEK M |
|---|---|---|
| Volvo A (after 5:1 split) SSAB A (including rights issue) Sandvik Other |
31,366,650 14,597,025 6,431,200 |
4,216 2,489 768 672 |
| Total | 8,145 | |
| Net sales | No. of shares | SEK M |
| Tandberg Television Sandvik redemption shares Isaberg Rapid Other |
5,963,150 134,700,000 |
728 404 200 182 |
| Total | 1,514 |
After the end of the reporting period, from October 1 through October 29, 2007, stocks were purchased for SEK 78 M. No stocks were sold.
Investments in the equities portfolio during the last ten-year period are shown in the chart below.
As per September 30, 2007, net debt in the net asset value calculation was SEK 11.0 billion, including SEK 10.8 billion in interest-bearing net debt, corresponding to a net debt-equity ratio of 13.9% (7.2% at the start of the year)
Interest-bearing net debt increased by SEK 6.3 billion compared with the start of the year, mainly due to net purchases of stocks.
Net debt as per October 29, 2007, was SEK 11.1 billion, including SEK 11.0 billion in interest-bearing net debt.
| Net debt-equity ratio, % | 15.2 | 13.9 | 7.2 | 7.0 |
|---|---|---|---|---|
| Market value of equities portfolio | 72,342 | 77,930 | 63,325 | 52,265 |
| Interest-bearing net debt | 10,978 | 10,849 | 4,532 | 3,672 |
| Current interest-bearing liabilities | 1,394 | 1,277 | 2,582 | 1,148 |
| Non-current interest-bearing liabilities | 9,682 | 9,682 | 2,776 | 3,870 |
| Interest-bearing receivables | 65 | 65 | 88 | 89 |
| Cash and cash equivalents | 33 | 45 | 738 | 1,257 |
| SEK M | 2007 | 2007 | 2006 | 2005 |
| Oct. 29 | Sept. 30 | Dec. 31 Dec. 31 |
A profit of SEK 139 M (104) was generated from short-term equity trading.
Consolidated operating earnings amounted to SEK 10,300 M (5,455), including SEK 2,107 M (1,733) in dividend income, SEK 8,1201 M (3,679) in change in value of stocks, SEK 139 M (104) from shortterm derivative transactions and equity trading, management costs of SEK -65 M (-58), and SEK -1 M (-3) in other income and expenses. After net financial items, totaling SEK -198 M (-142), tax of SEK -7 M (-64) and earnings after tax from discontinued operations, totaling SEK – M (14) (pertaining to Isaberg Rapid in 2006), earnings for the period were SEK 10,095 M (5,263).
The Parent Company's operating earnings amounted to SEK 6,445 M (2,557), including SEK 2,107 M (1,733) in external dividend income, SEK 46 M (20) in internal dividend income, SEK 4,3591 M (866) in change in value of stocks and derivative transactions, management
1 In calculating the change in value of shares in the Parent Company, the associated companies SCA, SSAB, Skanska and Indutrade are carried at cost in accordance with the Swedish Annual Accounts Act, while in the Group they are carried at market value in accordance with IFRS.
costs of SEK -65 M (-58), and SEK -2 M (-4) in other income and expenses. After net financial items, totaling SEK -202 M (-143), and tax of SEK – M (-51), earnings for the period were SEK 6,243 M (2,363).
This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting, which is in compliance with the requirements set out by Swedish Financial Accounting Standards Council recommendation RR 31 – Interim Financial Reporting for Groups and, with respect to the Parent Company, RR32:06 – Accounting for Legal Entities.
The amendments and interpretations of accounting recommendations introduced with effect from January 1, 2007, have not had any effect on the financial position and earnings. In other respects, the same accounting principles have been used in preparing this interim report as those used for the 2006 Annual Report.
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 detailed description of the risks associated with Industrivärden's business is provided on pages 61-63 of the 2006 Annual Report. A 1% change in the share price of the holdings in the equities portfolio as per September 30, 2007, would have affected the market value by approximately +/– SEK 800 M.
The 2008 Annual General Meeting will be held on Tuesday, April 15, 2008, at the Grand Hotel (Vinterträdgården room), in Stockholm.
Stockholm, October 31, 2007
Anders Nyrén President and CEO
Anders Nyrén, President and CEO, tel. +46 8 666 64 00 Carl-Olof By, Executive Vice President and CFO, tel. +46 8 666 64 00 Sverker Sivall, IR, tel. +46 8 666 64 19 Industrivärden's complete contact information can be found on page 1.
Year-end report 2007: February 13, 2008. The 2007 Annual Report will be published in mid-March 2008. The Annual General Meeting will be held on April 15, 2008. Interim report January–March: May 5, 2008. Interim report January–June: August 4, 2008. Interim report January–September: October 31, 2008.
We have reviewed the interim report for AB Industrivärden (publ) for the period January 1 – September 30, 2007. The Board of Directors and President are responsible for the preparation and presentation of this Interim Report in accordance with the Annual Accounts Act and IAS 34. Our responsibility is to express a conclusion on this interim report based on our review.
We conducted our review in accordance with the Swedish standard for such reviews, SÖG 2410 – Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review has another focus and is substantially less in scope than an audit conducted in accordance with Standards on Auditing in Sweden (RS) and other generally accepted auditing practices. The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all significant matters that might be identified in an audit. Therefore, the conclusion expressed based on a review does not give the same level of assurance as a conclusion expressed based on an audit.
Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with the Annual Accounts Act and IAS 34.
Stockholm, October 31, 2007 Öhrlings PricewaterhouseCoopers AB Anders Lundin Authorized Public Accountant
| SEK M | Jan. 1–Oct. 29, 2007 | Jan. 1–Sept. 30, 2007 | Jan. 1–Dec. 31, 2006 | ||||
|---|---|---|---|---|---|---|---|
| Net asset value at start of period | 58,511 | 58,511 | 48,252 | ||||
| Equities portfolio | Opening value | 63,325 | 63,325 | 52,265 | |||
| Purchases | 8,768 | 8,690 | 3,193 | ||||
| Sales | -2,059 | -2,059 | -2,072 | ||||
| Change in value of equities portfolio: | |||||||
| Sandvik | 3,482 | 5,563 | 3,315 | ||||
| SSAB | 2,793 | 4,179 | 2,775 | ||||
| Indutrade | 259 | 222 | 684 | ||||
| Volvo | 94 | -453 | 290 | ||||
| Handelsbanken | 92 | -489 | 676 | ||||
| Höganäs | -80 | -30 | 25 | ||||
| Munters | -254 | -65 | 342 | ||||
| Skanska | -271 | -246 | 458 | ||||
| SCA | -527 | 41 | 1,553 | ||||
| Ericsson | -3,224 | -767 | 48 | ||||
| Other equities | -56 2,308 |
9,017 | 19 | 7,974 14,605 |
-227 | 9,939 11,060 |
|
| Closing value | 72,342 | 77,930 | 63,325 | ||||
| Net debt | Opening value | -4,814 | -4,814 | -4,013 | |||
| Dividend paid out | -1,738 | -1,738 | -1,352 | ||||
| Dividends received | 2,107 | 2,107 | 1,733 | ||||
| Management costs | -73 | -65 | -81 | ||||
| Net financial items | -236 | -198 | -190 | ||||
| Purchases/sales of stocks, net | -6,709 | -6,631 | -1,121 | ||||
| Other | 293 | -6,356 | 281 -6,244 |
210 -801 |
|||
| Closing value | -11,170 | -11,058 | -4,814 | ||||
| Net asset value at end of period | 61,172 | 66,872 | 58,511 |
The item "Other" includes primarily surpluses from short-term derivative and equity trading.
| Equities Portfolio | Market value | Cost | Surplus value | Share of | Share of capital | Share of votes | ||
|---|---|---|---|---|---|---|---|---|
| October 29, 2007 | No. of shares | SEK M | SEK/share | SEK M | SEK M | portfolio value, % | in company, % | in company, % |
| Sandvik | 136,431,200 | 16,781 | 43 | 6,147 | 10,634 | 23 | 11.5 | 11.5 |
| Handelsbanken A | 68,285,000 | |||||||
| Handelsbanken B | 118,900 | 14,262 | 37 | 4,958 | 9,304 | 20 | 10.9 | 11.1 |
| SSAB A | 56,430,243 | |||||||
| SSAB B | 121,794 | 12,100 | 31 | 3,678 | 8,422 | 17 | 17.5 | 22.7 |
| SCA A | 48,000,000 | |||||||
| SCA B | 22,800,000 | 8,030 | 21 | 2,546 | 5,484 | 11 | 10.0 | 29.2 |
| Ericsson A | 372,000,000 | |||||||
| Ericsson B | 10,000,000 | 7,310 | 19 | 3,384 | 3,926 | 10 | 2.4 | 13.4 |
| Volvo A | 43,511,650 | |||||||
| Volvo B | 2,000,000 | 5,645 | 15 | 5,127 | 518 | 8 | 2.1 | 5.3 |
| Skanska A | 15,010,000 | |||||||
| Skanska B | 18,315,000 | 4,232 | 11 | 1,782 | 2,450 | 6 | 7.9 | 27.1 |
| Indutrade | 14,757,800 | 2,251 | 6 | 246 | 2,005 | 3 | 36.9 | 36.9 |
| Munters | 10,950,000 | 829 | 2 | 684 | 145 | 1 | 14.6 | 14.6 |
| Höganäs B | 3,550,000 | 557 | 1 | 637 | -80 | 1 | 10.1 | 8.1 |
| Hemtex | 3,700,000 | 345 | 1 | 375 | -30 | 0 | 12.6 | 12.6 |
| Total | 72,342 | 187 | 29,564 | 42,778 | 100 |
Market value pertains to Industrivärden's share of the respective portfolio companies' total market capitalization.
| Sept. 30, 2007 | Dec. 31, 2006 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| September 30, 2007 and | Market value Share of port- Share of capital Share of votes | Market value | Share of capital Share of votes | ||||||
| December 31, 2006 | No. of shares | SEK M | SEK/share folio value, % in company, % in company, % | No. of shares | SEK M | in company, % in company, % | |||
| Sandvik | 136,431,200 | 18,862 | 49 | 24 11.5 |
11.5 | 130,000,000 | 12,935 | 11.0 | 11.0 |
| Handelsbanken A Handelsbanken B |
68,285,000 118,900 |
13,680 | 35 | 18 10.9 |
11.1 | 68,000,000 108,900 |
14,099 | 10.5 | 10.7 |
| SSAB A (rights issue 1:4) SSAB B (rights issue 1:4) |
56,430,243 121,794 |
13,485 | 35 | 17 17.5 |
22.7 | 41,833,218 70,000 |
6,809 | 16.2 | 21.0 |
| Ericsson A Ericsson B |
372,000,000 10,000,000 |
9,766 | 25 | 13 2.4 |
13.4 | 372,000,000 5,000,000 |
10,405 | 2.3 | 13.3 |
| SCA A (split 3:1) SCA B (split 3:1) |
48,000,000 22,800,000 |
8,598 | 22 | 11 10.0 |
29.2 | 16,000,000 7,600,000 |
8,557 | 10.0 | 29.2 |
| Volvo A (split 5:1) Volvo B (split 5:1) |
43,511,650 2,000,000 |
5,098 | 13 | 7 2.1 |
5.3 | 2,429,000 52,000 |
1,205 | 0.6 | 1.5 |
| Skanska A Skanska B |
15,010,000 18,315,000 |
4,257 | 11 | 5 7.9 |
27.1 | 15,010,000 17,305,000 |
4,362 | 7.6 | 26.9 |
| Indutrade | 14,757,800 | 2,214 | 6 | 3 36.9 |
36.9 | 14,857,800 | 2,006 | 37.1 | 37.1 |
| Munters (split 3:1) | 10,950,000 | 1,018 | 3 | 1 14.6 |
14.6 | 3,638,000 | 1,153 | 14.6 | 14.6 |
| Höganäs B | 3,550,000 | 607 | 2 | 1 10.1 |
8.1 | 3,550,000 | 637 | 10.1 | 8.1 |
| Hemtex Other |
2,866,700 | 345 – |
1 – |
0 9.8 – |
9.8 | 2,130,600 | 300 857 |
7.6 | 7.6 |
| Total | 77,930 | 202 | 100 | 63,325 | |||||
| Development from January 1–October 29, 2007: | |||||||||
| Purchases | 8,768 | ||||||||
| Sales | -2,059 | ||||||||
| Change in value | 2,308 | ||||||||
| Market value as per October 29, 2007 | 72,342 |
| 2007 | 2006 | 2007 | 2006 | 2006 | |
|---|---|---|---|---|---|
| SEK M | July–Sept. | July–Sept. | Jan.–Sept. | Jan.–Sept. | Jan.–Dec. |
| Dividend income from stocks | 13 | 5 | 2,107 | 1,733 | 1,733 |
| Change in value of stocks | -3,014 | 2,793 | 8,120 | 3,679 | 10,037 |
| Short-term derivative transactions and equity trading | 19 | 38 | 139 | 104 | 173 |
| Management costs | -22 | -19 | -65 | -58 | -81 |
| Other income and expenses | 0 | 0 | -1 | -3 | -4 |
| Operating earnings | -3,004 | 2,817 | 10,300 | 5,455 | 11,858 |
| Financial income | 9 | 2 | 23 | 14 | 18 |
| Financial expenses | -104 | -50 | -221 | -156 | -205 |
| Earnings after financial items | -3,099 | 2,769 | 10,102 | 5,313 | 11,671 |
| Tax | 0 | -9 | -7 | -64 | -73 |
| Earnings for the period for continuing | |||||
| operations | -3,099 | 2,760 | 10,095 | 5,249 | 11,598 |
| Earnings for the period for discontinued | |||||
| operations2 | – | 3 | – | 14 | 23 |
| Net earnings for the period | -3,099 | 2,763 | 10,095 | 5,263 | 11,621 |
| Depreciation included in operating earnings | 1 | 1 | 3 | 3 | 4 |
| Earnings per share, SEK3 | -8.02 | 7.16 | 26.14 | 13.63 | 30.09 |
2 Earnings from discontinued operations pertains to Isaberg Rapid, which was sold in December 2006.
3 Net earnings for the period divided by 386,271,224 shares (after 2:1 split). There is no dilutive effect.
| Sept. 30 | Sept. 30 | Dec. 31 | |
|---|---|---|---|
| SEK M | 2007 | 2006 | 2006 |
| Intangible assets | – | 81 | – |
| Tangible assets | 85 | 221 | 87 |
| Equities | 77,930 | 57,380 | 63,030 |
| Other financial assets | 66 | 18 | 1 |
| Inventories | – | 183 | – |
| Accounts receivable, trade | – | 206 | – |
| Other current assets | 151 | 182 | 147 |
| Cash and cash equivalents | 45 | 346 | 738 |
| Assets in discontinued operations4 | – | – | 708 |
| Total assets | 78,277 | 58,617 | 64,711 |
| Shareholders' equity | 66,872 | 52,137 | 58,491 |
| Non-current noninterest-bearing liabilities | 31 | 37 | 32 |
| Non-current interest-bearing liabilities | 9,682 | 2,921 | 2,778 |
| Current noninterest-bearing liabilities | 415 | 588 | 425 |
| Current interest-bearing liabilities | 1,277 | 2,934 | 2,505 |
| Liabilities in discontinued operations4 | – | – | 480 |
| Total shareholders' equity and liabilities | 78,277 | 58,617 | 64,711 |
| 2007 | 2006 | 2006 | |
|---|---|---|---|
| SEK M | Jan.–Sept | Jan.–Sept. | Jan.–Dec. |
| Opening shareholders' equity | 58,491 | 48,227 | 48,227 |
| Dividend to shareholders | -1,738 | -1,352 | -1,352 |
| Translation differences | 18 | -1 | -5 |
| Change in hedging reserve | 6 | – | – |
| Net earnings for the period | 10,095 | 5,263 | 11,621 |
| Closing shareholders' equity | 66,872 | 52,137 | 58,491 |
| Shareholders' equity, SEK per share | 173 | 135 | 151 |
4 Pertains to Isaberg Rapid.
| SEK M | 2007 Jan.–Sept. |
2006 Jan.–Sept. |
2006 Jan.–Dec. |
|
|---|---|---|---|---|
| OPERATING ACTIVITIES | ||||
| Dividend income from stocks Cash flow from short-term derivative transactions |
2,107 | 1,733 | 1,733 | |
| and equity trading | 233 | 160 | 238 | |
| Management costs paid | -61 | -58 | -80 | |
| Tax paid | -25 | -51 | -56 | |
| Other items affecting cash flow | 1 | 1 | 6 | |
| Financial items, net | -229 | -161 | -184 | |
| CASH FLOW FROM OPERATING ACTIVITIES | 2,026 | 1,624 | 1,657 | |
| INVESTING ACTIVITIES | ||||
| Purchases of listed stocks5 | -8,690 | -2,974 | -3,193 | 5 |
| Sales of listed stocks5 | 1,859 | 1,159 | 2,072 | |
| Sales of subsidiaries | 225 | – | – | |
| Net purchases/sales of other non-current assets | 16 | -1 | -2 | |
| CASH FLOW FROM INVESTING ACTIVITIES | -6,590 | -1,816 | -1,123 | |
| FINANCING ACTIVITIES | ||||
| Loans raised and amortization of debt | 5,609 | 585 | 299 | |
| Dividend paid out | -1,738 | -1,352 | -1,352 | |
| CASH FLOW FROM FINANCING ACTIVITIES | 3,871 | -767 | -1,053 | 6 |
| CASH FLOW FROM DISCONTINUED OPERATIONS6 | – | -1 | 5 | |
| NET CASH FLOW FOR THE PERIOD | -693 | -960 | -514 | |
| Cash and cash equivalents at start of year | 738 | 1,307 | 1,307 | |
| Less: cash and cash equivalents in discontinued operations | – | – | -54 | |
| Exchange rate difference in cash and cash equivalents | – | -1 | -1 | |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | 45 | 346 | 738 |
Pertains to changes in the Parent Company's equities portfolio.
Cash flow from discontinued operations pertains to Isaberg Rapid.
| 2007 Q3 |
2006 Q3 |
2006 | |
|---|---|---|---|
| Cash flow from: | |||
| - operating activities | – | 40 | 55 |
| - investing activities | – | -24 | -32 |
| - financing activities | – | -17 | -18 |
| Cash flow from discontinued | |||
| operations | – | -1 | 5 |
| 2007 | 2006 | 2006 | |
|---|---|---|---|
| SEK M | Jan.–Sept. | Jan.–Sept. | Jan.–Dec. |
| Operating earnings | 6,445 | 2,557 | 6,533 |
| Earnings after financial items | 6,243 | 2,414 | 6,343 |
| Earnings for the period | 6,243 | 2,363 | 6,292 |
| Parent Company Balance Sheet | Sept. 30 | Dec. 31 | |
|---|---|---|---|
| Sept. 30 | |||
| SEK M | 2007 | 2006 | 2006 |
| Non-current assets | 59,212 | 45,074 | 48,227 |
| Current receivables | 76 | 98 | 199 |
| Cash and cash equivalents | 42 | 295 | 738 |
| Total assets | 59,330 | 45,467 | 49,164 |
| Shareholders' equity | 47,710 | 39,269 | 43,196 |
| Non-current liabilities | 9,680 | 2,773 | 2,776 |
| Current liabilities | 1,940 | 3,425 | 3,192 |
| Total shareholders' equity and liabilities | 59,330 | 45,467 | 49,164 |
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