AB Industrivärden : 2023 9M

Interim Report

January 1 - September 30, 2023

• Net asset value on September 30, 2023, was SEK 134.7 billion, or SEK 312 per share. During the first nine months, net asset value increased by 6%, corresponding to SEK 19 per share.
• The total return for the period was 17% for the Class A shares, as well as for the Class C shares, compared with 5% for the Stockholm Stock Exchange's total return index (SIXRX).
• During the first nine months of 2023, shares were purchased for a total of SEK 2.0 billion, of which SEK 0.8 billion in Sandvik, SEK 0.6 billion in Volvo, SEK 0.4 billion in Handelsbanken and SEK 0.2 billion in SCA.

	2023	2022	2022
	Sept 30	Sept 30	Dec 31
Net asset value, SEK M	134,663	107,466	126,477
Net asset value per share, SEK	312	249	293
Share price Industrivärden C, SEK	288.60	223.30	253.00
Debt-equities ratio	5%	6%	5%
	2023	2022	2022
SEK M	Jan - Sept	Jan - Sept	Jan - Dec
Earnings per share, SEK	26.10	-76.17	-32.34
Dividend income	6,418	5,479	5,479
Dividend paid	3,131	2,915	2,915
Equities portfolio:
Purchases	2,049	2,915	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 September 30, 2023, net asset value was SEK 134.7 billion (126.5) or SEK 312 per share (293), an increase of SEK 19 per share during the first nine months.

				Sept 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	27.9	37,885	97	30
Volvo B	17,400,000	3,925
Sandvik	174,900,000	13.9	13.9	35,260	82	25
Handelsbanken A	226,200,000	11.4	11.6	22,068	51	16
Essity A	33,257,000	10.2	29.6	7,865	39	12
Essity B	38,400,000	9,059
SCA A	33,785,290	10.5	29.4	5,068	26	8
SCA B	39,800,000	5,968
Skanska A	12,667,500	7.7	24.5	2,280	13	4
Skanska B	19,500,000	3,510
Ericsson A	86,052,615	2.6	15.1	4,716	11	3
Ericsson B	1,000,000	53
Alleima	50,300,000	20.0	20.0	2,885	7	2
Other					487	1	0
Equities portfolio					141,029	327	100
Net debt					-6,366	-15
Net asset value					134,663	312
Debt-equities ratio					5%

During the last ten-year period, net asset value increased from SEK 56.8 billion on September 30, 2013, to SEK 134.7 billion on September 30, 2023. For the last five- and ten-year periods, the average annual growth of net asset value was 6% and 9%, respectively. The chart below illustrates net asset value for the respective year-ends as well as for the period ended on September 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	230930
				Portfolio		Net debt		Net asset value

2	Industrivärden Interim Report January 1 - September 30, 2023

Performance of equities portfolio

During the period, the value of the equities portfolio, adjusted for purchases and sales, increased by SEK 5.1 billion, or 4%. On September 30, 2023, the market value of the equities portfolio was SEK 141.0 billion. Net purchases amounted to SEK 2.0 billion.

Change in value, investments, dividend income

	Sept 30, 2023			Jan - Sept 2023
SEK M	Market value		Change in value	Purchase (+) / sales (-)	Dividend
Volvo	41,810	5,443	612	2,537
Sandvik	35,260	2,239	767	861
Handelsbanken	22,068	-1,622	442	1,770
Essity	16,924	-2,617	-	520
SCA	11,036	1,247	228	184
Skanska	5,790	483	-	241
Ericsson	4,769	-971	-	235
Alleima	2,885	953	-	70
Other	487	-6	-	-
Total	141,029	5,148	2,049	6,418

Total return, holdings

January 1 - September 30

Alleima		53%	Volvo		8.2
Volvo		23%		Sandvik		3.1
SCA		15%		SCA		1.4
Skanska		14%		Alleima		1.0
Sandvik		10%		Skanska		0.8
Handelsbanken		1%		Handelsbanken		0.3
Essity	-11%			Ericsson	-0.7
Ericsson	-13%			Essity	-2.2
	-30-15 0 15 30 45 60 %		-4-2 0 2 4 6 8 10 SEK bn

Investment activities

During the first nine months of the year, shares were purchased for a total of SEK 2,049 M (2,915), of which SEK 767 M in Sandvik, SEK 612 M in Volvo B, SEK 442 M in Handelsbanken A and SEK 228 M in SCA B.

Dividends received

During the first nine months, dividend income from the holdings amounted to SEK 6,418 M (5,479), of which dividend payments received amounted to SEK 6,300 M (5,370). Dividends decided on for which payment has not yet been received are recognized as receivables in the balance sheet when the right to receive dividend has been determined.

Industrivärden Interim Report January 1 - September 30, 2023

3

Management cost

During the first nine months of 2023, management cost amounted to SEK 96 M (96), which on a yearly basis corresponds to 0.09% (0.11%) of the equities portfolio on September 30, 2023.

Financing

Net debt amounted to SEK 6.4 billion (7.4) on September 30, 2023, corresponding to a debt-equities ratio of 5% (5%).

Industrivärden's debt financing consists primarily of MTN loans. The average tenor of the debt portfolio was 28 months (27) on September 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	Sept 30	Sept 30	Dec 31
Non-current financial liabilities	6,500	6,500	6,500
Current financial liabilities	1,684	1,634	1,682
Provisions for pensions	0	0	4
Current financial receivables	-152	-146	-36
Cash and cash equivalents	-1,666	-955	-795
Total	6,366	7,033	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 134,308 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 nine months of the year, 802,848 shares were converted.

Share structure on September 30, 2023

Share class	No. of shares	No. of votes	Capital, %	Votes, %
A (1 vote)	259,940,677	259,940,677.0	60.2	93.8
C (1/10 vote)	171,958,431	17,195,843.1	39.8	6.2
Total	431,899,108	277,136,520.1	100.0	100.0

4	Industrivärden Interim Report January 1 - September 30, 2023

Industrivärden's stock

Stock performance

On the last day of trading in the period, September 29, the price of Industrivärden's Class A and Class C shares was SEK 288.80 and SEK 288.60, 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 17% for the Class A shares, as well as for the Class C shares. During the last five- and ten-year periods, 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 the OMXS30 (OMXS30GI), is shown in the table and charts below.

Average annual growth in value for respective period

		Sept 30, 2023
		Total return
	Industrivärden C	Index (SIXRX)	Index (OMXS30GI)
2023, 9 months	17%	5%	8%
1 year	32%	16%	22%
3 years	9%	6%	9%
5 years	10%	8%	8%
7 years	11%	10%	9%
10 years	12%	11%	9%

Total return over time

Index

500

400

300

200

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

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	230930
				Industrivärden C		Total return index (SIXRX)

Industrivärden Interim Report January 1 - September 30, 2023

5