Year-End Report 2004

•Industrivärden’s net asset value was SEK 36,934 M on February 15, 2005, an increase of SEK 371 M since the start of 2005. Net asset value on December 31, 2004, was SEK 36,563 M (30,070), an increase of SEK 6,493 M in 2004. •Net asset value per share on February 15, 2005, was SEK 191, an increase of SEK 2 per share since the start of the year. Net asset value on December 31, 2004, was SEK 189 per share (156). Including reinvested dividends the increase was SEK 39 per share in 2004. Average annual growth in net asset value over the last ten-year period, including reinvested dividends, was 16%. Earnings per share in 2004 were SEK 8.06 (-4.49). •The total return for Industrivärden’s stock in 2004 was 46%, compared with 21% 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 were purchased for SEK 5.2 billion (2.0) and sold for SEK 3.0 billion (1.9). Shares were purchased in Handelsbanken and Sandvik for SEK 3.4 billion. •The Board of Directors proposes a dividend of SEK 6.00 per share (5.50). CEO’s MESSAGE In 2004 the world economy was stronger than it has been for nearly 30 years, and essentially the entire global economy developed in a positive direction. The favorable conditions are reflected in the results of most of our portfolio companies, which posted strong development during the year through own measures and with the support of the economy. The high quality of the holdings in our portfolio helped boost our net asset value in 2004 by 22%, or by SEK 6.5 billion, to SEK 36.6 billion. During the same period, Industrivärden’s stock rose over 40%, which, taking into account our dividend payout, resulted in a total return of 46% for the Class A shares and 47% for the Class C shares. The much stronger growth in the share price than in net asset value represents a significant reduction in the discount to net asset value. I believe that the lower discount is due to a greater recognition of the strength in our clear portfolio strategy and our work methodology. We take an active ownership role in a concentrated and transparent portfolio of primarily listed companies with good development potential. This work is performed by a lean, efficient and professional organization. Again in 2004 we succeeded in achieving our goal of covering management costs with earnings from short-term equity trading and derivative transactions. The result of these transactions, SEK 103 M, more than amply covered our management costs of SEK 80 M during the year. Our strategy entails that Industrivärden’s main business is to work with matters related to active ownership. In 2004 we have also had a high level of new investments: during the year we purchased stocks with a combined value of SEK 5.2 billion and sold stocks for SEK 3.0 billion. The largest share purchases were in Handelsbanken and Sandvik, for a total of SEK 3.4 billion. The dividend of SEK 6 per share proposed by the Board of Directors represents an increase of 9% for the year and a dividend yield of 3.5% as per year-end. As previously, we have thereby achieved our objective of paying a dividend yield that is higher than the average for the Stockholm Stock Exchange. anders nyrén President and CEO