Investment operation

Clear investment criteria

The investment process involves evaluating existing investments against set target values and providing 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.

• Investments in mid- and large cap listed Nordic companies.
• Focus on business models that can be applied in several markets.
• Good ability to generate growth in cash flow.
• Major potential for value appreciation through active ownership.
• Ownership stakes that enable significant influence.
• Leading positions in selected market segments.

Analysis

Industrivärden has a cost-efficient organization that is distinguished by high flexibility and short decision-making channels. The Company has just over 20 employees, seven board members and an extensive contact network with specialist expertise. Operations are project-oriented and involve personnel from both the investment organization and staff functions.

Each portfolio company and potential newinvestment candidate is monitored by an investment team. The investment team performs a fundamental company analysis that culminates in a so-called core 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. The investment teams also conduct an ongoing dialog with the company management of the respective portfolio companies. By working with sound, wellresearched 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.

Executive Management and Investment Committee

 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 control and followup, 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, with overarching responsibility.

Industrivärden works with a lean and flexible organization, thus enabling the Executive Management to participate actively in the operating activities within their respective areas. A substantial part of the CEO's work time is dedicated to board work within the framework of active ownership in the portfolio companies. Other members of the Executive Management can also contribute with specialist expertise on Industrivärden's investment teams.