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, Sandvik, Volvo, Essity, Ericsson, SCA, ICA Gruppen, Skanska and SSAB, all of in which Industrivärden serves as a long-term active owner.
Net asset value at year-end 2018 was SEK 85.2 billion (96.3), or SEK 196 per share (221).
NET ASSET VALUE 10 YEARS
Through borrowing, Industrivärden enhances its flexibility over time.
Industrivärden’s gearing 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, an MTN-program and commercial paper. Interest-bearing net debt amounted to SEK 6.6 billion at year-end
2018 (10.9), corresponding to SEK 15 per Industrivärden
The debt-equities ratio at year-end 2018 was 7% (10%). Interest-bearing liabilities had an average capital duration of approximately 1 year and carried an average interest
rate of 0.2%.
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 on May 15, 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. In 2018 the bondholder demanded redemption corresponding to SEK 0.3 billion, whereby shares in ICA Gruppen were delivered.