Interim Report January 1 - March 31, 2004

Interim Report January 1 - March 31, 2004 - Industrivärden's net asset value was SEK 32,904 M on April 30, 2004, an increase of SEK 2,834 M since the start of the year. Net asset value on March 31, 2004, was SEK 33,209 M (22,917). - Net asset value per share was SEK 170 on April 30, 2004, an increase of SEK 14 per share since the start of the year. Including reinvested dividends the increase was SEK 20 per share. Net asset value per share on March 31, 2004, was SEK 172 (119). Average annual growth in net asset value over the last ten-year period, including reinvested dividends, was 15%. Earnings per share for the first three months of 2004 were SEK 1.50 (-0.11). - The total return for Industrivärden's stock during the first four months of the year was 17%, compared with 10% for the return index. During the last ten-year period the average annual total return was 3 percentage points higher than the return index. CEO's Message The year has gotten off to a good start for Industrivärden. Our total return, i.e., our share price including reinvested dividends, was 17% as of April 30, or 7 percentage points better than the return index. This is gratifying, as our goal is to create long-term, favorable growth in value. For both the last five- and ten-year periods, Industrivärden's stock has outperformed the return index by a wide margin. We are seeing increasing and clearer signs that an improvement in the economy is in the making. It is primarily in the U.S. and Southeast Asia - headed by China - where we see increasing signs of an economic upswing. It is worth noting that even Japan is showing growth after years of stagnation. The region that is still not showing any stellar improvement is Continental Europe. The economic improvement is now beginning to show in the business and profit trend for most of our major holdings. Ericsson's fine performance is particularly pleasing. During the first quarter, Handelsbanken posted a new earnings record for a single quarter, despite an unchanged level of net interest income. Our net asset value growth can be credited primarily to the continued rise for Ericsson's stock. Ericsson is, together with Handelsbanken, once again our largest holding. Thus far during the year we have increased our debt by fully one billion kronor in order to purchase additional stocks. We have made purchases in primarily Handelsbanken and Sandvik. We have also increased our holding in Munters. Our derivative transactions as well as short trading in Nordinvest continues to do well. On April 21 a circulation proposal for a Swedish Code for Corporate Governance was published. This code lays out a more detailed extension of the corporate governance tradition that we have in Sweden thanks to the Swedish Companies Act, which was well thought out from its inception, with a clear division of roles between a company's shareholder meeting, board of directors and executive management. It is only by having such an all-embracing code in Sweden that we can build confidence in Swedish corporations among the general public and especially among Swedish and international investors. Anders Nyrén President and CEO ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2004/05/04/20040504BIT00570/wkr0001.doc http://www.waymaker.net/bitonline/2004/05/04/20040504BIT00570/wkr0002.pdf The full report