Definition of net asset value

Equities Portfolio

Industrivärden's equities portfolio comprises large shareholdings in Handelsbanken, Sandvik, Volvo, SCA, Ericsson, SSAB, Skanska, Indutrade and Höganäs, all of in which Industrivärden is a long-term active owner. The companies are characterized by front positions in selected market segments, industry-leading positions and a high level of international business.

The equities portfolio, which is valued at market prices as per December 31, 2011, had a market value of SEK 56.9 billion (71.1), corresponding to SEK 147 (184) per Industrivärden share.

Interest-bearing net debt

Interest-bearing net debt amounted to SEK 16.8 billion (13.4) at year-end 2011, corresponding to SEK 43 (35) per Industrivärden share. Of total net debt, SEK 8.6 billion consists of the loan portion of the convertible bonds that were issued in January 2010 and January 2011. Upon conversion, the debt is transformed to equity.

The current level of debt in absolute terms is considered to be well-balanced in view of the underlying assets' size, their good liquidity and the fact that half of the debt amount consists of long-term convertible loans. The debt-equities ratio at year-end 2011 was 29%, or 14% after full conversion of the convertible loans. 

Issue of convertible loans

In January 2010 Industrivärden issued a fiveyear convertible loan worth EUR 500 M. 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.

In January 2011 a second convertible loan for six years was issued for EUR 550 M to further enhance Industrivärden's financial flexibility. Some of this capital has been used for investments in portfolio companies with favorable dividend yields and potential for growth in value – mainly Volvo, Handelsbanken and Sandvik.