The year in brief
Adjusted for purchases and sales, the value of the equities portfolio increased by SEK 12.9 billion to SEK 107.3 billion (94.2). The total return was 17%.
Net asset value
Net asset value at year-end was SEK 221 per share (191), an increase of 16% for the year and 18% including reinvested dividend.
Total return - Industrivärden shares
The total return was 20% for Industrivärden’s Class A shares and 22% for the Class C shares, compared with 9% for the total return index (SIXRX).
The debt-equities ratio was 10%, a decrease of 2 percentage points during the year.
The Board of Directors proposes a dividend of SEK 5.50 (5.25) per share.
A selection of strategic activities in portfolio companies
Through determined work on achieving sharpened focus, decentralized responsibility, stronger cost control and continuous improvements, Volvo has appreciably strengthened its profitability and financial position. Sales growth also increased significantly during the year. The company has announced new financial targets and continues to evaluate its business structure.
The split of SCA into the hygiene and health company Essity and the forest products company SCA enables increased focus and scope for action in the respective portfolio companies over time. In connection with the split, Essity’s stock was listed on June 15, 2017. During the year Essity presented new financial targets, and SCA’s investment in increased capacity at the Östrand pulp mill developed according to plan.
Erissson is facing significant operational and financial challenges that are being addressed with a new business strategy and simplified organizational structure, combined with substantial cost reductions. During the year, previously taken actions began to generate effects, and Ericsson also presented new financial targets. Considerable energy is being dedicated to focusing and developing existing positions of strength and on regaining technological leadership.