STOCKHOLM, Sweden, Nov. 8, 2005 (PRIMEZONE) -- Industrivarden's net asset value was SEK 45,635 M on November 4, 2005, compared with SEK 36,563 M at the start of the year, entailing an increase of SEK 9,072 M for the year to date. Net asset value on September 30, 2005, was SEK 45,744 M (34,740).
Net asset value per share on November 4, 2005, was SEK 236, compared with SEK 189 per share at the start of the year. Including reinvested dividends, net asset value per share was SEK 243. Net asset value per share on September 30, 2005, was SEK 237 (180). Average annual growth in net asset value over the last ten-year period, including reinvested dividends, was 17%. Earnings per share for the first nine months of 2005 were SEK 50.12 (29.45).
The total return for Industrivarden's stock as per November 4, 2005, was 24%, compared with 26% for the return index. The average annual total return over the last ten-year period was 6 percentage points higher than the return index.
On October 5, 2005, Indutrade became listed on the Stockholm Stock Exchange O-List. The offer which included 62.5% of the shares was oversubscribed twelve times. The sale and received dividend before the IPO resulted in an increase in Industrivardens net asset value of SEK 1.0 billion or SEK 5 per share.
In October 2005 the entire holding of Ossur hf was sold for SEK 1,008 M, generating a capital gain of SEK 398 M.
CEO's Message
The global economy continued to perform well during the third quarter. The U.S. continues to showhigh growth. The same goes for all of Southeast Asia, headed by China. Now it appears that Japan, too, is emerging from 15 years of deflation and stagnation. The EU has also begun showing signs of an economic upswing, albeit from a low level. Taken together, these developments indicate that 2005 will be yet another good year with good growth. There is every indication that 2006 can also be a good year with above average growth.
Our portfolio companies continued to perform well and, with the odd exception, have shown very strong development thus far during the year. Naturally, this has had an impact on our value growth, and I am pleased to report that our net asset value grew by SEK 9.1 billion, or 25%, during the first nine months of the year.
On October 5, Indutrade became listed on the Stockholm Stock Exhange's O-List, which was the market's first major IPO in 17 months. The introduction was such a success that the offering was oversubscribed 12 times. We are very happy about Indutrade's reception on the stock market. It is a fine company which, during its long period as a wholly owned subsidiary of Industrivarden has developed strongly with a history of solid profit growth. We continue to have great confidence in Indutrade, which is why we are staying on with a long-term ownership stake of about 35%. It is also gratifying to note that the market's valuation of Indutrade is higher than the best offer we received from the Private Equity sector, and that the difference is substantial. Perhaps this is a sign that the high risk premium that the market has attached to equities in relation to alternative investments is on its way down. The listing of Indutrade represents a contribution during 2005 of SEK 1.0 billion to Industrivarden's growth in net asset value.
In October our entire 23% stake was sold in the Icelandic medical technology company, Ossur. The sale generated a capital gain of SEK 398 M -- representing growth in value of approximately 90% on our initial investment. Industrivarden was the first foreign investor to take a position in the company, in 2002. In our capacity as largest shareholder, with a seat on the board, Industrivarden participated in Ossur's development. In late September/early October we contributed SEK 155 M in a new issue carried out to enable Ossur to finance a key acquisition in the U.S. In connection with discussions surrounding this issue, a good long-term solution for all parties involved presented itself, whereby the listed Danish medtech group William Demant would take on the role as principal owner of Ossur.
As a result of the divestments, we succeeded in releasing approximately SEK 2.6 billion in liquid assets, which has brought our net debt-equity ratio down to 6%.
Anders Nyren President and CEO
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