Industrivärden in brief

Long-term industrial developer of listed nordic companies.

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%.

History

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.

Vision

To be the preferred choice for investors with a Nordic focus seeking a long-term, competitive return with balanced risk and low costs.

Mission

To create shareholder value through active ownership and a professional investment operation.

Business and goals

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.

Strategy

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.

Investment criteria

— Mid- and large cap listed Nordic companies.
— Companies with business models that can be applied in several markets.
— Companies with a good ability to generate growth in cash flow.
— Leading positions in selected market segments.
— Strong potential for growth in value through active ownership.
— Ownership stakes that enable significant influence.
— Concentration on a limited number of shareholdings

Portfolio philosophy

• Fully invested in equities
• Active ownership with a long-term investment horizon
• Borrowing provides leverage in equities portfolio