AB INDUSTRIVÄRDEN (publ) Interim Report, January 1 – March 31, 2007

• Net asset value increased by SEK 7,626 M (SEK 20 per share), or 13%, to SEK 66,137 M (SEK 171 per share) as per April 30, 2007. Net asset value on March 31, 2007, was SEK 65,144 M (55,570), or SEK 169 (144) per share

• Consolidated earnings for the first quarter totaled SEK 6,653 M (SEK 17.22 per share), compared with SEK 7,320 M for the corresponding period in 2006 (SEK 18.95 per share)

• The total return during the first four months of the year was 16% for the Class A shares and 18% for the Class C shares, compared with 14% for the return index

• During the first four months of the year, shares were bought for SEK 2,230 M and sold for SEK 1,488 M. The entire holding in Tandberg Television was sold for SEK 728 M

• A 2:1 stock split was carried out on April 25, 2007


CEO’S MESSAGE

The year has begun well for Industrivärden. During the first four months our net asset value increased by 8 billion kronor, to 66 billion kronor, or by 13%. The total return for the Class A and C shares was 16% and 18%, respectively, compared with 14% for the return index.

Nearly all of the companies in our portfolio have been benefited from the continued strong economy. With leading global positions in many cases, the companies are well positioned to benefit from the favorable economic conditions. As for first-quarter performance, I would like to mention two portfolio companies in particular, SSAB and Sandvik. Both companies have clear strategies that are adapted to their respective business climates and conditions. However, having the wind in your sails from a favorable economy is not enough. Companies must all make sure that their productivity and market offerings are conducive to higher market shares and thereby set the stage for profitable growth. Both SSAB and Sandvik have demonstrated this.

There are currently no signs of a weakening in the generally favorable economic climate. However, as a growing amount of production resources, such as raw materials and labour, begin showing signs of scarcity, there is a certain risk for higher inflation. Thus there is also a risk of rising long-term interest rates. However, it appears that the apparently infinitely liquid credit market is posing a counterweight to these tendencies.

During the first four months of the year we purchased stocks for SEK 2,230 M and sold for SEK 1,488 M. Among other things, we sold our entire holding in Tandberg Television, in connection with Ericsson’s bid for all of the shares in that company. Our assessment of Tandberg Television when we took a position in the company was that it represented an attractive growth market – digital TV. Ericsson’s motive for its offer confirms this analysis. We believe that Tandberg Television will fit well into Ericsson and contribute to Ericsson’s continued favorable performance.

In closing, I am happy to note that our short-term trading in these favorable conditions generated a profit of SEK 93 M for the first three months of the year, compared with SEK 67 M for the first quarter of 2006.

Anders Nyrén