AB Industrivärden : 2023 6M

Interim Report

January 1 - June 30, 2023

• Net asset value on June 30, 2023, was SEK 136.8 billion, or SEK 317 per share. During the first half-year, net asset value increased by 8%, corresponding to SEK 24 per share.
• The total return for the period was 21% for the Class A shares and 20% for the Class C shares, compared with 11% for the Stockholm Stock Exchange's total return index (SIXRX).
• During the first half-year of 2023, shares were purchased for a total of SEK 1.1 billion, of which SEK 0.4 billion in Sandvik, SEK 0.3 billion in Handelsbanken, SEK 0.2 billion in SCA and SEK 0.2 billion in Volvo.

	2023	2022	2022
	June 30	June 30	Dec 31
Net asset value, SEK M	136,785	113,637	126,477
Net asset value per share, SEK	317	263	293
Share price Industrivärden C, SEK	297.20	227.50	253.00
Debt-equities ratio	4%	5%	5%
	2023	2022	2022
SEK M	Jan - June	Jan - June	Jan - Dec
Earnings per share, SEK	30.98	-61.90	-32.34
Dividend income	6,300	5,370	5,479
Dividend paid	3,131	2,915	2,915
Equities portfolio:
Purchases	1,098	1,886	3,184
Sales	-	-	-

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

Financial overview

For balance sheet items, figures in parentheses pertain to the value on December 31, 2022. For income statement and cash flow items, 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 June 30, 2023, net asset value was SEK 136.8 billion (126.5) or SEK 317 per share (293), an increase of SEK 24 per share during the first half-year.

				June 30, 2023
			Share of
			ownership, %		Market value		Share of value
Holdings	No. of shares		Capital	Votes		SEK M	SEK/share	%
Volvo A	166,600,000	9.0	27.8	38,251	97	29
Volvo B	15,600,000	3,479
Sandvik	173,200,000	13.8	13.8	36,407	84	26
Essity A	33,257,000	10.2	29.6	9,528	48	14
Essity B	38,400,000	11,025
Handelsbanken A	224,200,000	11.3	11.5	20,254	47	14
SCA A	33,785,290	10.5	29.4	4,656	23	7
SCA B	39,800,000	5,471
Ericsson A	86,052,615	2.6	15.1	5,284	12	4
Ericsson B	1,000,000	58
Skanska A	12,667,500	7.7	24.5	1,915	11	3
Skanska B	19,500,000	2,947
Alleima	50,300,000	20.0	20.0	2,468	6	2
Other					499	1	0
Equities portfolio					142,241	329	100
Net debt					-5,456	-13
Net asset value					136,785	317
Debt-equities ratio					4%

During the last ten-year period, net asset value increased from SEK 52.7 billion on June 30, 2013, to SEK 136.8 billion on June 30, 2023. For the last five- and ten-year periods, the average annual growth of net asset value was 7% and 10%, respectively. The chart below illustrates net asset value for the respective year-ends as well as for the period ended on June 30, 2023.

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	230630
				Portfolio		Net debt		Net asset value

2	Industrivärden Interim Report January 1 - June 30, 2023

Performance of equities portfolio

During the period, the value of the equities portfolio, adjusted for purchases and sales, increased by SEK 7.3 billion, or 5%. On June 30, 2023, the market value of the equities portfolio was

SEK 142.2 billion. Net purchases amounted to SEK 1.1 billion.

Change in value, investments, dividend income

	June 30, 2023			Jan - June 2023
SEK M	Market value		Change in value	Purchase (+) / sales (-)	Dividend
Volvo	41,730	5,771	203	2,537
Sandvik	36,407	3,747	405	861
Essity	20,553	1,012	-	520
Handelsbanken	20,254	-3,255	261	1,770
SCA	10,126	337	228	184
Ericsson	5,342	-398	-	118
Skanska	4,862	-446	-	241
Alleima	2,468	535	-	70
Other	499	6	-	-
Total	142,241	7,311	1,098	6,300

Total return, holdings

January 1 - June 30

Alleima		31%	Volvo		8.5
Volvo		24%		Sandvik		4.6
Sandvik		14%		Essity		1.5
Essity		8%		Alleima		0.6
SCA		5%		SCA		0.5
Skanska	-4%			Skanska	-0.2
Ericsson	-5%			Ericsson	-0.3
Handelsbanken	-6%			Handelsbanken	-1.5
-20	-10 0 10 20 30 40 %	-4	-2 0 2 4 6 8 10 SEK bn

Investment activities

During the first six months of the year, shares were purchased for a total of SEK 1,098 M (1,886), of which SEK 405 M in Sandvik, SEK 261 M in Handelsbanken A, SEK 228 M in SCA B and SEK 203 M in Volvo B.

Dividends received

During the first half-year, dividend income from the holdings amounted to SEK 6,300 M (5,370).

Industrivärden Interim Report January 1 - June 30, 2023

3

Management cost

During the first six months of 2023, management cost amounted to SEK 64 M (70), which on a yearly basis corresponds to 0.09% (0.12%) of the equities portfolio on June 30, 2023.

Financing

Net debt amounted to SEK 5.5 billion (7.4) on June 30, 2023, corresponding to a debt-equities ratio of 4% (5%).

Industrivärden's debt financing consists primarily of MTN loans. The average tenor of the debt portfolio was 31 months (27) on June 30, 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	June 30	June 30	Dec 31
Non-current financial liabilities	7,000	5,501	6,500
Current financial liabilities	1,184	1,650	1,682
Provisions for pensions	0	0	4
Current financial receivables	-35	-38	-36
Cash and cash equivalents	-2,693	-1,035	-795
Total	5,456	6,078	7,355

Credit rating

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

Shareholders' equity

The Group's shareholders' equity at the end of the period was SEK 136,422 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 first half-year, 402,648 shares were converted.

Share structure on June 30, 2023

Share class	No. of shares	No. of votes	Capital, %	Votes, %
A (1 vote)	260,340,877	260,340,877.0	60.3	93.8
C (1/10 vote)	171,558,231	17,155,823.1	39.7	6.2
Total	431,899,108	277,496,700.1	100.0	100.0

4	Industrivärden Interim Report January 1 - June 30, 2023

Industrivärden's stock

Stock performance

The price of Industrivärden's Class A and Class C shares on June 30, 2023, was SEK 298.80 and SEK 297.20, 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 21% for the Class A shares and 20% for the Class C shares. During the last five- and ten-year periods, the average annual total return for the Class C shares was 14% and 13%, respectively. The stock's total return, compared with the total return for the Stockholm Stock Exchange (SIXRX) and the total return for the OMXS30 (OMXS30GI), is shown in the table and charts below.

Average annual growth in value for respective period

		June 30, 2023
		Total return
	Industrivärden C	Index (SIXRX)	Index (OMXS30GI)
2023, 6 months	20%	11%	16%
1 year	34%	19%	27%
3 years	15%	13%	15%
5 years	14%	11%	11%
7 years	14%	12%	12%
10 years	13%	12%	11%

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 index (SIXRX)		Total return index (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	230630
				Industrivärden C		Total return index (SIXRX)

Industrivärden Interim Report January 1 - June 30, 2023

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