Interim Report January 1 – March 31, 2005

•Industrivärden’s net asset value was SEK 35,771 M on April 29, 2005, compared with SEK 36,563 M at the start of the year. Net asset value on March 31, 2005, was SEK 36,557 M (33,209). •Net asset value per share on April 29, 2005, was SEK 185, compared with SEK 189 per share at the start of the year. Including reinvested dividends, net asset value was SEK 191 per share. Net asset value on March 31, 2005, was SEK 189 per share (172). Average annual growth in net asset value over the last ten-year period, including reinvested dividends, was 16%. Earnings per share during the first three months of 2005 were SEK 0.06 (15.54). •The total return for Industrivärden’s stock during the first four months of the year was -5%, compared with 5% for the return index. During the last ten-year period the average annual total return was 5 percentage points higher than the return index. •In the end of April the Board of Directors decided to proceed with a stock market introduction of the subsidiary Indutrade during the second half of 2005. CEO’s Message The trend in the world economy remains favorable, despite signs of a slight slowdown primarily in the U.S. and Japanese economies. The euro area continues to lag behind in an otherwise relatively favorable global trend. Even though we have probably passed a high point in the economy, it appears that the years immediately ahead will provide continued favorable conditions for our portfolio companies, with relatively good growth and low interest rates. However, prices of raw materials as well as oil are uncertainty factors. Our portfolio companies have leading global market positions and are strongly positioned to capitalize on this relatively favorable situation. However, this requires continued focus on internal efficiency. In the current situation, many logical expansion acquisitions are difficult to achieve for public companies, which are valued in a different manner than companies that are bought and sold in the private equity sector. This difference in valuation is a result of different valuation systems and a strong appetite for risk in the private equity sector resulting from very liquid credit markets. This difference should even out over time, however. During this year we have acquired additional shares in SCA worth approximately SEK 700 M at prices that we consider to be attractive. In late April Industrivärden’s board decided to proceed with a stock market introduction of the subsidiary Indutrade during the second half of 2005. This decision is entirely in line with our strategy to work as active owners with a transparent portfolio of listed Nordic companies. The trading company Indutrade has experienced favorable development for many years. Listing the company will open new opportunities for it at the same time that Industrivärden will remain as an active owner with an approximate 35% stake in a company with bright future prospects. During the first quarter we achieved our ambition of covering our management costs through our short-term equity and derivative trading. The profit generated by these activities was SEK 37 M, compared with our management costs, which were unchanged at SEK 20 M. This quarterly report is the first to be prepared in accordance with the new International Financial Reporting Standards (IFRS). The income statement thus includes all changes in the value of the equities portfolio, which is why fluctuations in earnings both upwards and downwards may be great in the near term. The net asset value reporting provided at the beginning of this interim report is therefore the most important tool for gauging Industrivärden’s development. Anders Nyrén President and CEO