Core Investments
The Core Investments business area represents the majority of our assets and is divided into listed companies and subsidiaries. We are an engaged owner and work actively through the Boards of our holdings to identify and drive value-creating initiatives. The ownership horizon is long-term and returns are mainly generated through value appreciation, share redemptions and dividends. Returns are also generated when holdings are divested. Our Core Investments are listed companies Atlas Copco, SEB, ABB, AstraZeneca, Ericsson, Electrolux, Husqvarna, NASDAQ OMX, Saab, Sobi and our subsidiaries Mölnlycke Health Care, Aleris and Grand Hôtel.
Listed
Within listed Core Investments we hold significant minority positions, giving us strategic influence in listed companies. Our listed Core Investments are Atlas Copco, SEB, ABB, AstraZeneca, Ericsson, Electrolux, Husqvarna, NASDAQ OMX, Saab and Sobi.
Our listed Core Investments are global companies with proven business models and strong market positions. Returns are primarily generated through value appreciation, share redemptions and dividends. The dividends from our listed Core Investments are a strong driver of our dividend capacity.
Investment strategy for listed Core Investments
- Well-established global companies
- Significant minority ownership for strategic influence
- Long ownership horizon
Subsidiaries
Our majority owned subsidiaries comprises of Mölnlycke Health Care, Aleris and Grand Hôtel. It is companies that that should generate substantial value creation and cash flow over time, with the value created fully allocated to Investor and our shareholders.
Cash flow is generated by optimizing leverage over time and returning surplus liquidity to owners through dividends and refinancing. Most of the companies are unlisted, and therefore relatively illiquid. In this sense, unlisted holdings could be regarded as riskier than listed ones. From an operational viewpoint, however, there may not necessarily be any difference in risk between unlisted and listed holdings.
Investment strategy for subsidiaries
- Medium-size to large companies
- Preferably companies with potential for stable growth and high profitability
- Majority owned unlisted subsidiaries
- Long ownership horizon.
Goal for Core Investments
- To generate a return exceeding the market cost of capital over a business cycle, currently approximately 8 percent per year.
Strategy for Core Investments
- Develop existing attractive holdings with long-term potential for value creation with a long term ownership horizon
- To support our holdings to become and remain best-in-class.
- Creating value in the business area by means of investments in, and active ownership of companies.
Information updated 2011-05-05 13:00:07