Interim report, January 1–March 31, 2012

5 Apr, 2012 10:00 CET

Industrivärden, AB
Interim report

Interim report, January 1–March 31, 2012

AB Industrivärden (publ)

Interim report, January 1–March 31, 2012

  -- Net asset value on March 31, 2012, was SEK 124 per share, an increase of
     20% since the start of the year.
  -- The value of the equities portfolio increased by SEK 7.5 billion to SEK
     63.6 billion, or by 13%, during the first quarter. The Stockholm Stock
     Exchange gained 10%.
  -- The total return during the first quarter was 20% for the Class A shares
     and 20% for the Class C shares, compared with 11% for the return index.
  -- Income for the first quarter was SEK 7.8 billion (-3.5), corresponding to
     SEK 20.27 per share (-9.16).
  -- During the first quarter, shares were sold in the portfolio companies for a
     total of SEK 0.7 billion.

CEO’s message

The first quarter of the year was distinguished by a few events which together
have given reason for cautious optimism for the near future. The first is the
considerably better performance of the U.S. economy than the scenario that was
feared as late as August last year. The second is the defusing of the acute
financial crisis in Europe through the strong measures taken by the EU with
respect to Greece, in tandem with the ECB’s continued stabilization measures,
including low-cost financing of the European banking system. Finally, owing to
Greece’s controlled default, the CDS market has continued to work, which is of
central importance to prevent a situation in the financial market like the one
that arose after the Lehman crash. 

The demand situation for our portfolio companies remains reasonably favorable
on the whole, and the year has gotten off to a relatively good start. A key
reason for this is that the companies work in a global market and have
relatively limited exposure to geographic problem areas like southern Europe. 

We are currently in the midst of the annual meeting season, when the nominating
committees of listed companies are presenting their recommendations for company
boards. Successful companies require well-composed boards with competent
directors who complement each other and can contribute to further strengthening
the companies they represent. For us as an active owner, this nomination work
for board elections is therefore an important part of our model for active
ownership. In our portfolio companies, normally the nominating committee chair
have ties to Industrivärden. In view of the central function that the boards
fulfill in the companies, it is therefore gratifying to note that our portfolio
companies have strong and competent boards, to the benefit of us shareholders. 

During the last six months period, companies in the industrial sector have
generally had a favorable share price trend relative to the market index. This
is reflected in Industrivärden’s value development. At the close of the
quarter, our net asset value amounted to SEK 48 billion, or SEK 124 per share –
an increase of 20% for the year to date, compared with 11% for the return
index. 

Industrivärden’s total return during the first three months of the year was 20%
for the Class A shares and 20% for the Class C shares, compared with 11% for
the total return index. 

Our short-term trading has had a good start to the year and generated a profit
of SEK 52 M (18) during the first quarter. 

Industrivärden’s Annual General Meeting will be held on May 4 in Stockholm. I
hope that as many shareholders as possible will attend. Aside from the regular
items of business, the AGM is an ideal opportunity to ask questions and gain a
first-hand view of the company’s performance. I hope to see you there! 

Anders Nyrén

The information provided in this interim report is such that AB Industrivärden
(publ) is obligated to publish pursuant to the Securities Market Act and/or the
Financial Instruments Trading Act. Submitted for publication at 10 a.m. on
April 5, 2012.