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.
The equities portfolio is made up of large shareholdings in Handelsbanken, Volvo, Sandvik, Essity, ICA Gruppen, SCA, Skanska, SSAB and Ericsson, all of in which Industrivärden serves as a long-term active owner.
The equities portfolio, which is valued at the companies’ market prices as per December 31, 2017, had a market value of SEK 107,289 M (94,250). The market value of the equities portfolio corresponded to SEK 247 (218) per Industrivärden share.
NET ASSET VALUE 10 YEARS
Through available borrowing, Industrivärden enhances its flexibility over time.
Industrivärden’s debt policy is that the debt-equities ratio shall be in the range of 0%–10%, but may periodically exceed or fall below this interval.
Interest-bearing net debt
The debt portfolio consists primarily of an exchangeable bond, bank borrowings, MTN program and commercial paper. Interest-bearing net debt amounted to SEK 10.9 billion at year-end 2017 (11.5), corresponding to SEK 25 per Industrivärden share. The debt-equities ratio at year-end 2017 was 10% (12%). Interest-bearing liabilities had an average capital duration of approximately 2.5 years and carried an average interest rate of 0.1%.
In 2014 an exchangeable bond of SEK 4.4 billion was issued as part of the continuous refinancing of the equities portfolio. The bond matures in 2019 and was issued at a premium of approximately 38% to ICA Gruppen’s share price at the time of issue and carries no interest.