STOCKHOLM, Sweden, Feb. 15, 2002 (PRIMEZONE) -- Industrivarden:
Industrivarden's stock
Total Return (1) 2001 -16%, Total Return Index -15%
Price trend 2001: -20%, General Index -17%
Net asset value
At February 13, 2002: SEK 189 per share
At December 31, 2001(2): SEK 204 (280) per share
Change during 2001: -27%
Listed portfolio
Value at February 13, 2002: SEK 37,685 M
Value at December 31, 2001: SEK 40,535 (54,961) M
Change in value during 2001: -24%, General Index -17%
Total Return1 2001: -22%, Total Return Index -15%
(1) Price trend plus reinvested dividends.
(2) Net asset value per share for 2000 amounted to SEK 283,
calculated on the basis of 191,206,984 shares and CPNs at
year-end 2000. After cancellation of the company's CPN loan,
net asset value for 2000 as well as 2001 has been calculated in
this year-end report on the basis of 193,135,612 shares.
-- The entire holding in Pharmacia (NYSE:PHA) was sold during the
fourth quarter. Sales of listed stocks during the year totaled
SEK 2,975 M, generating a capital gain of SEK 713 M. Purchases
of shares amounted to SEK 1,506 M.
-- The Board proposes a dividend of SEK 5.00 per share (5.00),
plus a bonus of SEK 3.35 per share (3.40), for a total of
SEK 8.35 per share (8.40). Interest per CPN would thus amount to
SEK 9.60 (9.66).
About Industrivarden
Industrivarden is one of the Nordic region's leading holding companies, with ownership in a concentrated selection of listed companies with good development potential. Industrivarden's business mission is to deliver a high total return based on a professional investment operation and active ownership. Investments are targeted primarily at large and medium- sized listed Nordic companies, although they can also be made in unlisted companies with good potential.
The goal is to generate favorable growth in net asset value over time. High growth in asset values enables Industrivarden to deliver a total return which, over time, is higher than the average for the Stockholm Stock Exchange.
CEO's Comments
An eventful and in many ways tumultuous year has come to an end. Since the time I took office as CEO of Industrivarden at the Annual General Meeting last May, the financial markets have been nervous and stock prices have fluctuated widely. Industrivarden has not been left unscathed by this situation, and during the past year the value development in our portfolio - with large holdings in the telecom and financial services sectors - was unsatisfactory. On the other hand, holdings such as SCA and Lundbeck did well and thereby moderated the decline in our portfolio value. Our investments are made over a longer perspective than one year. Over both the last five- and ten-year periods the Industrivarden share has delivered an average total return that has outpaced the Stockholm Stock Exchange. It is my hope that in the future the Industrivarden share will be able to continue showing this very satisfactory level of returns.
During my tenure thus far at Industrivarden, I have been working together with my colleagues on defining Industrivarden's role in an increasingly global economy. We are part of a market in which almost unfathomable financial resources are gathered in the hands of various professional asset managers. In a world where most everyone is perpetually seeking to outperform the index, in my view there is a clear need for a player like Industrivarden. Our goal is to achieve high growth in net asset value viewed from a longer perspective through a combination of professional investment activity and long-term active ownership. A prerequisite for our continued favorable development, however, is that we continuously adapt our operations in order to further strengthen Industrivarden's position and ability.
The key to our success is a professional investment operation and active ownership, which requires a focused commitment and thus a concentrated portfolio. In view of this, we will work with a limited number of holdings. Moreover, our investments will essentially be targeted at large and medium-size listed companies. We aim to create conditions for an expanded investment operation and a sharper focus on value-enhancing changes within our holdings, within the framework of active ownership. This entails a stronger focus on company analysis. The Nordic countries serve as the backdrop for our investment strategy.
The focus I've outlined above is an adaptation of Industrivarden's way of working and investment philosophy to the changed market conditions. However, our work will continue to be distinguished by the factors that have been applied so successfully to date, namely, responsible, active ownership and a long-term investment perspective.
Industrivarden's Stock
Industrivarden's stock fell by 20% in 2001, compared with a 17% decline for the General Index. The total return was -16%, compared with -15% for the Findata Total Return Index.
From the end of 1996 through December 31, 2001, average total return for the Industrivarden stock, was 20% per year, while the Total Return Index, was 13% per year.
Including tax based bonus dividend Industrivarden's average yearly dividend growth will be 21% during the five-year period 1997 - 2001. The average dividend yield during this five-year period will be 4.0%, which is twice as high as the average for companies listed on the Stockholm Stock Exchange.
Net Asset Value
Net asset value, which is a measure of Industrivarden's wealth, is defined as the actual market value of the stocks in the listed portfolio, the calculated value of the industrial and trading companies, and the book value of other unlisted holdings, less the net value of other assets and liabilities.
Industrivarden's net asset value(1) as per December 31, 2001, has been calculated at SEK 39.4 billion, corresponding to SEK 204 per share. At February 13, 2002, net asset value was calculated to be SEK 189 per share. Net asset value at December 31, 2000, was SEK 2802 per share.
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The following files are available for download:
www.waymaker.net/bitonline/2002/02/15/20020215BIT00610/bit0001.doc Full Year-End Report www.waymaker.net/bitonline/2002/02/15/20020215BIT00610/bit0001.pdf Full Year-End Report