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Active ownership

Process

Active ownership aims to contribute to the portfolio companies’ strategic development and long-term value creation. Industrivärden’s influence is grounded in sizable ownership stakes, strong positions of trust, representation on nominating committees and boards, and depth of knowledge about the companies and their business environments. Industrivärden strives to help the portfolio companies establish and strengthen leading positions in their respective industries over time. Major emphasis is put on clear leadership, focus and flexibility. Active ownership is exercised mainly through involvement in nominating committee work, board representation and active dialogue with the portfolio companies. In addition, continuous evaluation is conducted of the companies and their boards, CEOs and management teams. The various measures that are considered to create the most value over time are defined in Industrivärden’s owner agenda, which serves as the foundation of the Company’s influence work.

In its role as active owner, Industrivärden adds value through:

  • Engaged ownership through representation on nominating committees and boards, with substantial knowledge and an ability to evaluate, make demands, influence and provide support
  • A long-term and sustainable perspective with focus on enduring, competitive growth in value over time
  • Owner collaborations through consensus-building on important issues with other owners
  • Resources in the form of financial strength and an extensive network

Continuous evaluation and influence

Industrivärden’s investment and analysis organization continuously evaluates the portfolio companies’ governance, operations and development. Work is conducted from an overarching ownership perspective with focus on the portfolio companies’ boards and management teams, financial development and matters such as strategy, market position, efficiency and capital structure. Analyses are conducted from a broad, business environment perspective and cover everything from customers, competitors and markets to prevailing megatrends such as digitalization, new technology and long-term sustainable development. A good understanding of these trends is essential for being able to assess the portfolio companies’ long-term value potential as well as the opportunities and challenges they face.

In this way the investment and analysis organization builds a foundation of deep, fact-based knowledge about the respective portfolio companies and their business environments.

With a starting point in this analysis, an owner agenda for value creation is continuously updated, which summarizes the strategic value drivers that Industrivärden considers to be most important for value creation during the coming three to five years. The aim is to identify and describe various opportunities for value growth and well as strategic measures for realizing this value.

Industrivärden communicates its views of the company and its management primarily with the chairman of the company’s board. An active dialogue is also conducted with the respective companies’ CEOs and other senior executives.

From a corporate governance perspective, it is the respective portfolio companies that are responsible for and are to have the ability to conduct their operations in an optimal manner with a base in the company’s strategy. This is equally important from a practical perspective, since a rapid pace of change in the companies’ business environments requires decentralized governance close to the companies’ customers, vendors and other interests. A good example is integrated sustainability work, which requires depth of knowledge about a company’s own activities and its stakeholders.

Nominating committee work and board composition

It is of central importance that the portfolio companies’ boards have the combined expertise and experience required to manage the respective companies’ current situation and long-term ambitions. Industrivärden therefore puts strong emphasis on participating and exercising influence in the portfolio companies’ board nomination processes. With a foundation of extensive knowledge about the portfolio companies and their respective business environments along with a keen understanding of their long-term challenges and opportunities, Industrivärden can contribute to their board nomination work. Industrivärden’s nominating committee representatives consist of board members and members of the Executive Management.

Good access to qualified board members is a key success factor. Against this background, Industrivärden works actively to identify suitable individuals and maintain the Company’s network. Industrivärden invests in companies active in various sectors and with varying needs, which requires a broad network of individuals with various types of expertise and experience.  

Nominating committee representatives with ties to Industrivärden

Portfolio company Industrivärden's nominating committee representatives Role
Sandvik Fredrik Lundberg Chair
Volvo Pär Boman Chair
Handelsbanken Helena Stjernholm Chair
Essity Helena Stjernholm Chair
Ericsson Karl Åberg Member
SCA Helena Stjernholm Chair
Skanska Helena Stjernholm Chair
Alleima    

 

Board members with ties to Industrivärden

Portfolio company Board members with ties to Industrivärden Role
Sandvik

Helena Stjernholm

Marika Fredriksson

Director

Director

Volvo Helena Stjernholm Director
Handelsbanken

Pär Boman

Fredrik Lundberg

Chairman

Vice Chairman

Essity Pär Boman Chairman
Ericsson Helena Stjernholm Vice Chairman
SCA

Pär Boman

Karl Åberg

Chairman

Director

Skanska

Fredrik Lundberg

Pär Boman

Director

Director

Alleima

Karl Åberg

Member

Board representation

IIndustrivärden exercises influence through representation on its portfolio companies’ boards. Industrivärden’s board members and members of the Executive Management who serve as AGM-elected directors for Industrivärden’s portfolio companies are considered to have ties to Industrivärden. They are to have a relevant and clear picture of the valuecreating measures that have been identified in the respective portfolio companies. Against this background Industrivärden’s owner agendas for the portfolio companies are discussed on a regular basis within Industrivärden’s board. Where needed, the analysis organization also conducts investigative assignments on specific matters.

Active ownership in brief

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Last update: 06 Sep 2022