AB Industrivärden : 2023 3M

Interim Report

January 1 - March 31, 2023

• Net asset value on March 31, 2023, was SEK 138.3 billion, or SEK 320 per share. During the first quarter net asset value increased by 9%, corresponding to SEK 27 per share.
• The total return for the period was 10% for the Class A shares, as well as for the Class C shares, compared with 9% for the Stockholm Stock Exchange's total return index (SIXRX).
• During the first quarter of 2023, shares were purchased for a total of SEK 0.4 billion, of which in SCA for SEK 0.2 billion and in Sandvik for SEK 0.2 billion.

	2023	2022	2022
	March 31	March 31	Dec 31
Net asset value, SEK M	138,305	123,547	126,477
Net asset value per share, SEK	320	286	293
Share price Industrivärden C, SEK	279.20	263.90	253.00
Debt-equities ratio, %	4%	4%	5%
	2023	2022	2022
SEK M	Jan - March	Jan - March	Jan - Dec
Earnings per share, SEK	27.35	-45.88	-32.34
Dividend income	2,832	2,018	5,479
Dividend paid	-	-	2,915
Equities portfolio:
Purchases	432	1,173	3,184
Sales	-	-	-

AB Industrivärden (publ) | Reg. no. 556043-4200 | www.industrivarden.net

Financial overview

For balance sheet items, the figures in parentheses pertain to the value on December 31, 2022. For income statement and cash flow items, the figures in parentheses pertain to the value for the corresponding period in the preceding year.

Net asset value

Net asset value consists of the market value of the equities portfolio less net debt. On March 31, 2023, net asset value was SEK 138.3 billion (126.5), or SEK 320 per share (293), an increase of SEK 27 per share during the first quarter.

				March 31, 2023
			Share of
			ownership, %		Market value		Share of value
Holdings	No. of shares		Capital	Votes		SEK M	SEK/share	%
Volvo A	166,600,000	8.9	27.8	37,152	93	28
Volvo B	14,600,000	3,122
Sandvik	172,200,000	13.7	13.7	37,850	88	26
Essity A	33,257,000	10.2	29.6	9,960	49	15
Essity B	38,400,000	11,382
Handelsbanken A	221,200,000	11.2	11.4	19,873	46	14
SCA A	33,785,290	10.5	29.4	4,662	23	7
SCA B	39,800,000	5,431
Ericsson A	86,052,615	2.6	15.1	5,705	13	4
Ericsson B	1,000,000	61
Skanska A	12,667,500	7.7	24.5	2,008	12	4
Skanska B	19,500,000	3,092
Alleima	50,300,000	20.0	20.0	2,576	6	2
Other					507	1	0
Equities portfolio					143,381	332	100
Net debt					-5,076	-12
Net asset value					138,305	320
Debt-equities ratio					4%

During the last ten-year period, the net asset value has increased from SEK 58.1 billion on March 31, 2013, to SEK 138.3 billion on March 31, 2023. For the last five- and ten-year period, the average annual growth for the net asset value was 7% and 9%, respectively.

Performance over time

SEK M

160,000

140,000

120,000

100,000

80,000

60,000

40,000

20,000

0 -20,000-40,000

2013	2014	2015	2016	2017	2018	2019	2020	2021	2022	230331
				Portfolio		Net debt		Net asset value

2	Industrivärden Interim Report January 1 - March 31, 2023

Performance of equities portfolio

During the period, the value of the equities portfolio, adjusted for purchases and sales, increased by SEK 9.1 billion, or 7%. On March 31, 2023, the market value of the equities portfolio was

SEK 143.4 billion. Net purchases amounted to SEK 0.4 billion.

Change in value, investments, dividend income

	March 31, 2023			Jan - March 2023
SEK M	Market value		Change in value	Purchase (+) / sales (-)	Dividend
Volvo	40,274	4,519	-	-
Sandvik	37,850	5,391	204	-
Essity	21,342	1,802	-	520
Handelsbanken	19,873	-3,376	-	1,770
SCA	10,093	304	228	184
Ericsson	5,766	26	-	118
Skanska	5,100	-207	-	241
Alleima	2,576	644	-	-
Other	507	14	-	-
Total	143,381	9,117	432	2,832

Total return, holdings

January 1 - March 31

Alleima		33%	Sandvik						5.4
Sandvik		17%		Volvo						4.5
Volvo		13%		Essity					2.3
Essity		12%		Alleima				0.6
SCA		5%		SCA				0.5
Ericsson		3%		Ericsson				0.2
Skanska		1%		Skanska				0.0
Handelsbanken	-7%			Handelsbanken	-1.6
-20	-10 0 10 20 30 40 %	-4	-2	0	2	4	6 SEK bn

Investment activities

During the first three months, shares were purchased for a total of SEK 432 M (1,173), of which in SCA B for SEK 228 M and in Sandvik for SEK 204 M.

Dividends received

During the quarter, dividend income from Essity, Handelsbanken, SCA, Ericsson and Skanska amounted to SEK 2,832 M (2,018). Dividend payments received during the first quarter amounted to SEK 1,770 M (1,598) and pertains to the dividend from Handelsbanken. Dividends decided on for which payment has not yet been received are recognized as receivables on the balance sheet when the right to receive dividend has been determined.

Industrivärden Interim Report January 1 - March 31, 2023

3

Management cost

During the first three months of 2023, management cost amounted to SEK 32 M (33), which on a yearly basis corresponds to 0.09% (0.10%) of the equities portfolio on March 31, 2023.

Financing

Net debt amounted to SEK 5.1 billion (7.4) on March 31, 2023, corresponding to a debt-equities ratio of 4% (5%).

Industrivärden's debt financing consists primarily of MTN loans and commercial paper. The average tenor of the debt portfolio was 35 months on March 31, 2023. During the first quarter of 2023 a new bond of SEK 0.5 billion with a tenor of three and a half years, and two bonds of SEK 0.5 billion each with tenors of five years, were issued. The loans pertain to refinancing and were issued within the framework of the existing MTN program. Framework amounts and terms of the loans are available on Industrivärden's website.

No part of Industrivärden's financing is conditional upon any covenants.

Net debt

	2023	2022	2022
SEK M	March 31	March 31	Dec 31
Non-current financial liabilities	7,001	5,503	6,500
Current financial liabilities	1,182	2,153	1,682
Provisions for pensions	-	7	4
Current financial receivables	-1,098	-460	-36
Cash and cash equivalents	-2,009	-1,498	-795
Total	5,076	5,705	7,355

Credit rating

S&P Global Ratings has assigned Industrivärden a credit rating of A+/Stable/A-1. The rating was confirmed on March 27, 2023.

Shareholders' equity

The Group's shareholders' equity at the end of the period was SEK 137,991 M (126,180), corresponding to an equity ratio of 94% (94%).

Share structure

At the 2011 Annual General Meeting a share conversion clause was added to the Articles of Association. Shareholders have the right at any time to request conversion of Class A shares to Class C shares. During the quarter 400,022 shares were converted.

Share structure on March 31, 2023

Share class	No. of shares	No. of votes	Capital, %	Votes, %
A (1 vote)	260,343,503	260,343,503	60.3	93.8
C (1/10 vote)	171,555,605	17,155,560	39.7	6.2
Total	431,899,108	277,499,063	100.0	100.0

4	Industrivärden Interim Report January 1 - March 31, 2023

Industrivärden's stock

Stock performance

The price of Industrivärden's Class A and Class C shares on March 31, 2023, was SEK 279.70 and SEK 279.20, respectively. On the last day of trading in 2022, December 30, the corresponding share prices were SEK 253.50 and SEK 253.00, respectively.

The total return during the period was 10% for the Class A shares, as well as for the Class C shares. During the last five- and ten-year period the average annual total return for the Class C shares was 10% and 12%, respectively. The stock's total return compared with the total return for the Stockholm Stock Exchange (SIXRX) and the total return for OMXS30 (OMXS30GI), is shown in the table and charts below.

Average annual growth in value for respective periods

		March 31, 2023
		Total return
	Industrivärden C	Index (SIXRX)	Index (OMXS30GI)
2023, 3 months	10%	9%	10%
1 year	9%	-2%	9%
3 years	15%	18%	17%
5 years	10%	12%	11%
7 years	13%	12%	11%
10 years	12%	12%	10%

Total return over time

Index

500

400

300

200

100
2013	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023
		Industrivärden C		Total return (SIXRX)		Total return (OMXS30GI)

Total return for the respective year/period

40%

30%

20%

10%

0%

-10%

-20%

-30%

2013	2014	2015	2016	2017	2018	2019	2020	2021	2022	230331
				Industrivärden C		Total return index (SIXRX)

Industrivärden Interim Report January 1 - March 31, 2023

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