Interim Report January 1 – June 30, 2001

• Industrivärden simplifies its share structure, cancels its CPN loan

ABOUT INDUSTRIVÄRDEN
Industrivärden is one of Sweden's leading holding companies, with sizable ownership stakes in a number of international listed corporations. Industrivärden's business mission is to invest in stocks and, through active ownership, create good long-term growth in value for the Company's shareholders. The goal is to give shareholders both a total return and dividend that are higher than the average for the Stockholm Stock Exchange. During the last five-year period, this goal has been achieved by a wide margin.

Investments are to be made in a concentrated portfolio of stocks, primarily in listed Nordic companies. Investments can also be made in unlisted companies with good growth potential, which subsequently may become listed or be sold.

CEO's COMMENTS
The first six months of the year were characterized by a continued negative trend in the world's stock markets, which has left few market participants unscathed. The declines have been particularly large in growth sectors such as telecom and financial services – sectors in which Industrivärden has substantial exposure. Despite this, the price of our stock has fallen less than for the stock market as a whole. During the period, Industrivärden's stock fell by 12 percent, compared with 14 percent for the Stockholm Stock Exchange.

The trend in the short term is certainly significant, but for us the long-term development is even more important. We have chosen to work with a long-term focus in a limited number of growth areas that we know well. I am convinced that our active ownership in a limited selection of well managed companies will continue to generate above-average total returns.

In the near term, however, there is currently a general feeling of bewilderment concerning the continued market trend, and next year's corporate earnings forecasts are coupled with a high degree of uncertainty. The key question for companies' business prospects and earnings is how resilient the global economy is to the current downturn in the U.S. The economic outlook in Europe appears increasingly frail. Another central question is whether the expansive financial and monetary policies in the U.S. can offset the effects of a weak industrial cycle and stimulate the recovery that is inherent in the stock market's anticipations.

One prerequisite for being able to deliver a high total return over time is that we are successful in our role as active owners. Another is that we successively make adjustments in our portfolio to reflect changes in our operating environment. We are also looking into other measures that can contribute to higher shareholder value. Among other things, we want to simplify our share structure by proposing the cancellation of our CPN loan. In this way we will more clearly show the valuation of the Company and enhance the liquidity of our stock.

Anders Nyrén

INDUSTRIVÄRDEN'S STOCK

Industrivärden's stock fell by 14 percent from the beginning of the year through August 13, 2001. The General Index fell by 20 percent during the same period. The total return was -11 percent, compared with -18 percent for the Total Return Index.

From the end of 1995 through August 13, 2001, the Industrivärden's stock delivered an average total return of 29 percent per year, while the Findata Total Return Index measured 18 percent per year during the same period.

Industrivärden's average yearly dividend increased by 25 percent during the five-year period 1996–2000. The average dividend yield during this five-year period was 3.8 percent, which is twice as high as the average for companies listed on the Stockholm Stock Exchange.

NET ASSET VALUE

Net asset value is defined as the actual market value of the stocks in the listed portfolio, the calculated value of the industrial and trading operations, and the book value of other unlisted holdings, less the net value of other assets and liabilities.

Industrivärden's net asset value 2) as per June 30 has been calculated at SEK 42.4 billion, corresponding to SEK 222 per share and CPN. As per August 13, net asset value has been calculated at SEK 208 per share and CPN. Net asset value at December 31, 2000, was SEK 283 per share and CPN.

Price trend and reinvested dividends.

Total number of shares and CPNs: 191,206,984. The wholly owned industrial and trading operations have been

assigned a calculated value using a P/E multiple of 13 (the same as at year-end 2000), based on current estimations

of the companies' earnings for 2001.

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