Interim Report
January 1 - March 31, 2023
- Net asset value on March 31, 2023, was SEK 138.3 billion, or SEK 320 per share. During the first quarter net asset value increased by 9%, corresponding to SEK 27 per share.
- The total return for the period was 10% for the Class A shares, as well as for the Class C shares, compared with 9% for the Stockholm Stock Exchange's total return index (SIXRX).
- During the first quarter of 2023, shares were purchased for a total of SEK 0.4 billion, of which in SCA for SEK 0.2 billion and in Sandvik for SEK 0.2 billion.
2023 | 2022 | 2022 | |
March 31 | March 31 | Dec 31 | |
Net asset value, SEK M | 138,305 | 123,547 | 126,477 |
Net asset value per share, SEK | 320 | 286 | 293 |
Share price Industrivärden C, SEK | 279.20 | 263.90 | 253.00 |
Debt-equities ratio, % | 4% | 4% | 5% |
2023 | 2022 | 2022 | |
SEK M | Jan - March | Jan - March | Jan - Dec |
Earnings per share, SEK | 27.35 | -45.88 | -32.34 |
Dividend income | 2,832 | 2,018 | 5,479 |
Dividend paid | - | - | 2,915 |
Equities portfolio: | |||
Purchases | 432 | 1,173 | 3,184 |
Sales | - | - | - |
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Financial overview
For balance sheet items, the figures in parentheses pertain to the value on December 31, 2022. For income statement and cash flow items, the figures in parentheses pertain to the value for the corresponding period in the preceding year.
Net asset value
Net asset value consists of the market value of the equities portfolio less net debt. On March 31, 2023, net asset value was SEK 138.3 billion (126.5), or SEK 320 per share (293), an increase of SEK 27 per share during the first quarter.
March 31, 2023 | |||||||||
Share of | |||||||||
ownership, % | Market value | Share of value | |||||||
Holdings | No. of shares | Capital | Votes | SEK M | SEK/share | % | |||
Volvo A | 166,600,000 | 8.9 | 27.8 | 37,152 | 93 | 28 | |||
Volvo B | 14,600,000 | 3,122 | |||||||
Sandvik | 172,200,000 | 13.7 | 13.7 | 37,850 | 88 | 26 | |||
Essity A | 33,257,000 | 10.2 | 29.6 | 9,960 | 49 | 15 | |||
Essity B | 38,400,000 | 11,382 | |||||||
Handelsbanken A | 221,200,000 | 11.2 | 11.4 | 19,873 | 46 | 14 | |||
SCA A | 33,785,290 | 10.5 | 29.4 | 4,662 | 23 | 7 | |||
SCA B | 39,800,000 | 5,431 | |||||||
Ericsson A | 86,052,615 | 2.6 | 15.1 | 5,705 | 13 | 4 | |||
Ericsson B | 1,000,000 | 61 | |||||||
Skanska A | 12,667,500 | 7.7 | 24.5 | 2,008 | 12 | 4 | |||
Skanska B | 19,500,000 | 3,092 | |||||||
Alleima | 50,300,000 | 20.0 | 20.0 | 2,576 | 6 | 2 | |||
Other | 507 | 1 | 0 | ||||||
Equities portfolio | 143,381 | 332 | 100 | ||||||
Net debt | -5,076 | -12 | |||||||
Net asset value | 138,305 | 320 | |||||||
Debt-equities ratio | 4% |
During the last ten-year period, the net asset value has increased from SEK 58.1 billion on March 31, 2013, to SEK 138.3 billion on March 31, 2023. For the last five- and ten-year period, the average annual growth for the net asset value was 7% and 9%, respectively.
Performance over time
SEK M
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0 -20,000-40,000
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 230331 | |
Portfolio | Net debt | Net asset value | |||||||||
2 | Industrivärden Interim Report January 1 - March 31, 2023 |
Performance of equities portfolio
During the period, the value of the equities portfolio, adjusted for purchases and sales, increased by SEK 9.1 billion, or 7%. On March 31, 2023, the market value of the equities portfolio was
SEK 143.4 billion. Net purchases amounted to SEK 0.4 billion.
Change in value, investments, dividend income
March 31, 2023 | Jan - March 2023 | ||||
SEK M | Market value | Change in value | Purchase (+) / sales (-) | Dividend | |
Volvo | 40,274 | 4,519 | - | - | |
Sandvik | 37,850 | 5,391 | 204 | - | |
Essity | 21,342 | 1,802 | - | 520 | |
Handelsbanken | 19,873 | -3,376 | - | 1,770 | |
SCA | 10,093 | 304 | 228 | 184 | |
Ericsson | 5,766 | 26 | - | 118 | |
Skanska | 5,100 | -207 | - | 241 | |
Alleima | 2,576 | 644 | - | - | |
Other | 507 | 14 | - | - | |
Total | 143,381 | 9,117 | 432 | 2,832 |
Total return, holdings
January 1 - March 31
Alleima | 33% | Sandvik | 5.4 | ||||||||||
Sandvik | 17% | Volvo | 4.5 | ||||||||||
Volvo | 13% | Essity | 2.3 | ||||||||||
Essity | 12% | Alleima | 0.6 | ||||||||||
SCA | 5% | SCA | 0.5 | ||||||||||
Ericsson | 3% | Ericsson | 0.2 | ||||||||||
Skanska | 1% | Skanska | 0.0 | ||||||||||
Handelsbanken | -7% | Handelsbanken | -1.6 | ||||||||||
-20 | -10 0 10 20 30 40 % | -4 | -2 | 0 | 2 | 4 | 6 SEK bn |
Investment activities
During the first three months, shares were purchased for a total of SEK 432 M (1,173), of which in SCA B for SEK 228 M and in Sandvik for SEK 204 M.
Dividends received
During the quarter, dividend income from Essity, Handelsbanken, SCA, Ericsson and Skanska amounted to SEK 2,832 M (2,018). Dividend payments received during the first quarter amounted to SEK 1,770 M (1,598) and pertains to the dividend from Handelsbanken. Dividends decided on for which payment has not yet been received are recognized as receivables on the balance sheet when the right to receive dividend has been determined.
Industrivärden Interim Report January 1 - March 31, 2023 | 3 |
Management cost
During the first three months of 2023, management cost amounted to SEK 32 M (33), which on a yearly basis corresponds to 0.09% (0.10%) of the equities portfolio on March 31, 2023.
Financing
Net debt amounted to SEK 5.1 billion (7.4) on March 31, 2023, corresponding to a debt-equities ratio of 4% (5%).
Industrivärden's debt financing consists primarily of MTN loans and commercial paper. The average tenor of the debt portfolio was 35 months on March 31, 2023. During the first quarter of 2023 a new bond of SEK 0.5 billion with a tenor of three and a half years, and two bonds of SEK 0.5 billion each with tenors of five years, were issued. The loans pertain to refinancing and were issued within the framework of the existing MTN program. Framework amounts and terms of the loans are available on Industrivärden's website.
No part of Industrivärden's financing is conditional upon any covenants.
Net debt
2023 | 2022 | 2022 | |
SEK M | March 31 | March 31 | Dec 31 |
Non-current financial liabilities | 7,001 | 5,503 | 6,500 |
Current financial liabilities | 1,182 | 2,153 | 1,682 |
Provisions for pensions | - | 7 | 4 |
Current financial receivables | -1,098 | -460 | -36 |
Cash and cash equivalents | -2,009 | -1,498 | -795 |
Total | 5,076 | 5,705 | 7,355 |
Credit rating
S&P Global Ratings has assigned Industrivärden a credit rating of A+/Stable/A-1. The rating was confirmed on March 27, 2023.
Shareholders' equity
The Group's shareholders' equity at the end of the period was SEK 137,991 M (126,180), corresponding to an equity ratio of 94% (94%).
Share structure
At the 2011 Annual General Meeting a share conversion clause was added to the Articles of Association. Shareholders have the right at any time to request conversion of Class A shares to Class C shares. During the quarter 400,022 shares were converted.
Share structure on March 31, 2023
Share class | No. of shares | No. of votes | Capital, % | Votes, % |
A (1 vote) | 260,343,503 | 260,343,503 | 60.3 | 93.8 |
C (1/10 vote) | 171,555,605 | 17,155,560 | 39.7 | 6.2 |
Total | 431,899,108 | 277,499,063 | 100.0 | 100.0 |
4 | Industrivärden Interim Report January 1 - March 31, 2023 |
Industrivärden's stock
Stock performance
The price of Industrivärden's Class A and Class C shares on March 31, 2023, was SEK 279.70 and SEK 279.20, respectively. On the last day of trading in 2022, December 30, the corresponding share prices were SEK 253.50 and SEK 253.00, respectively.
The total return during the period was 10% for the Class A shares, as well as for the Class C shares. During the last five- and ten-year period the average annual total return for the Class C shares was 10% and 12%, respectively. The stock's total return compared with the total return for the Stockholm Stock Exchange (SIXRX) and the total return for OMXS30 (OMXS30GI), is shown in the table and charts below.
Average annual growth in value for respective periods
March 31, 2023 | |||
Total return | |||
Industrivärden C | Index (SIXRX) | Index (OMXS30GI) | |
2023, 3 months | 10% | 9% | 10% |
1 year | 9% | -2% | 9% |
3 years | 15% | 18% | 17% |
5 years | 10% | 12% | 11% |
7 years | 13% | 12% | 11% |
10 years | 12% | 12% | 10% |
Total return over time
Index
500
400
300
200
100 | ||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
Industrivärden C | Total return (SIXRX) | Total return (OMXS30GI) |
Total return for the respective year/period
40%
30%
20%
10%
0%
-10%
-20%
-30%
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 230331 |
Industrivärden C | Total return index (SIXRX) | |||||||||
Industrivärden Interim Report January 1 - March 31, 2023 | 5 |
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Disclaimer
AB Industrivärden published this content on 05 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 April 2023 09:30:01 UTC.