Definition of net asset value

Net asset value is a measure of the shareholders’ total net worth in the Company, defined as the market value of the equities portfolio less interest-bearing net debt.

At year-end net asset value was SEK 57.7 billion (42.8), or SEK 149 (111) per share. Net asset value including reinvested dividends grew 12% annually, compared with 13% for the return index during the twenty-year period 1991–2010.

Equities Portfolio

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

The equities portfolio, valued at the market price as per December 31, 2010, had a market value of SEK 71.1 billion (53.5), corresponding to SEK 184 (139) per Industrivärden share.

Interest-bearing net debt

Interest-bearing net debt amounted to SEK 13.4 billion (10.8) at year-end 2010, corresponding to SEK 35 (28) per Industrivärden share. Of total net debt, SEK 4.2 billion consists of the loan portion of the convertible bonds that were issued in January 2010.

Upon conversion, the debt is transformed to equity. A guideline for Industrivärden is that interest-bearing net debt should not exceed 20% of the market value of the equities portfolio over the long term.

During the tenyear period 2001–2010, the debt-equity ratio ranged from a low of 6% in June 2002 to a high of 36% in March 2009. The net debt-equity ratio at year-end 2010 was 19%, or 13% after full conversion of the convertible loan.