Interim Report January 1 - September 30, 2001

Industrivärden's stock

Resolution made by Extraordinary General Meeting to cancel the 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
A discussion on the stock market's performance can seem impertinent against the background of the tragedies that followed the terrorist attacks in the U.S. on September 11 and which continue to mark the continued development. As a stock investor it is naturally easy to be swept along by the current mood in the stock markets. We all tend to stare ourselves blind by the short-term perspective. However, if you raise your eyes a bit, a more nuanced picture emerges.

Despite the price correction that has taken place, the long-term trend for equity investments has been very good and there is every reason to expect that it will continue. During the period under review, the market has been on hold, which has put a damper on business opportunities. Against this background, no major deals have been carried out. However, from our perspective as a long-term investor, situations like this create opportunities to make acquisitions at favorable levels. I can also note that we are currently analyzing a number of interesting business propositions.

With an investment focus on sectors like telecom and financial services, our portfolio performed weakly in 2001. The composition of our portfolio is designed to deliver a long-term total return that is higher than the market average. We have achieved this goal for many years running and have shown that building shareholder value through active ownership and analysis has been a successful strategy. We will stick to this strategy. I therefore look to the future with confidence.

Anders Nyrén

INDUSTRIVÄRDEN'S STOCK

Industrivärden's stock fell by 29 percent from the beginning of the year through October 29, 2001. The General Index fell by 26 percent during the same period. The total return was -25 percent, compared with -24 percent for the Total Return Index.

From the end of 1995 through October 29, 2001, Industrivärden's stock delivered an average total return of 24 percent per year, while the Findata Total Return Index measured 16 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 operation, 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 September 30 has been calculated at SEK 31.7 billion, corresponding to SEK 166 per share and CPN. As per October 29, net asset value has been calculated at SEK 182 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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