Interim Report January 1-September 30, 2004

Interim Report January 1-September 30, 2004 · Industrivärden's net asset value was SEK 34,744 M on October 27, 2004, an increase of SEK 4,674 M since the start of the year. Net asset value on September 30, 2004, was SEK 34,740 M (26,956). · Net asset value per share on October 27, 2004, was SEK 180, an increase of SEK 24 per share since the start of the year. Including reinvested dividends the increase was SEK 30 per share. Net asset value per share on September 30, 2004, was SEK 180 (140). Average annual growth in net asset value over the last ten-year period, including reinvested dividends, was 16%. Earnings per share for the first nine months of 2004 were SEK 7.25 (3.79). · The total return for Industrivärden's stock as per October 27, 2004, was 30%, compared with 13% for the return index. During the last ten-year period the average annual total return was 6 percentage points higher than the return index. · During the year shares have been purchased in Handelsbanken and Sandvik for SEK 3.1 billion. CEO's Message The global economy remains strong, and growth in 2004 is expected to be the best in more than twenty years. This is reflected in the earnings of most of our portfolio companies, which are showing favorable development as a result of own measures and the general economic trend. Although we are in a period of growth, there is some uncertainty about the development in 2005, including concerns about the geopolitical situation, oil prices, interest rates and the economy in the U.S., in particular. Taken together this is resulting in high risk premiums for investments in the stock market as compared to bond markets. Today the market's required rate of return for equity investments is twice as high as the bond market's required rate of return for high-grade corporate bonds. The unusually high risk premium for equity investments is resulting in, among other things, few new stock market introductions and the emergence of a secondhand market for private equity investments in which private equity players are buying and selling companies among themselves. Industrivärden's net asset value on October 27 was SEK 34.7 billion, an increase of 19% since the start of the year taking reinvested dividends into account, compared with 13% for the Stockholm Stock Exchange's return index. Industrivärden's total return for the first ten months of the year outpaced the return index by 17 percentage points. This performance can be credited to the quality of our portfolio companies. Ericsson, Handelsbanken, Sandvik and Skanska are all showing a continued positive trend. Ossur continues to deliver good results, and its stock has risen by a full 110% thus far during the year, of which 33% since the half-year report. The companies that have yet not managed to benefit from the improved economy are SCA and Munters. During the third quarter we further strengthened our ownership in Handelsbanken and Sandvik. This year to date we have invested a total of SEK 3.1 billion kronor in these companies at average prices we considered to be attractive. In our view, these companies have strong positions in their respective markets, adept management and very high quality business routines. Anders Nyrén President and CEO The full report can be downloaded from ------------------------------------------------------------ This information was brought to you by Waymaker The following files are available for download: The full report

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