INTERIM REPORT JANUARY 1 – MARCH 31, 2005

Continued strong earnings and favorable returns  Net sales totaled SEK 828 M (841). Adjusted for currency effects and acquisitions, net sales decreased by 2% compared with the year-earlier period.  Operating income amounted to SEK 52 M (52), which was equal to the year earlier period. Income after financial items was SEK 50 M (50).  Income after tax totaled SEK 35 M (32), up 8%.  The return on operating capital for the most recent 12-month period increased to 24% (20).  Subsequent to the reporting period, the company has begun preparations for a listing on the Stockholm Stock Exchange’s O List during the second half of 2005.

Indutrade in brief Indutrade is a wholly-owned subsidiary of Industrivärden. The company is active within the industrial technology sector offering components and systems and also within development, production and marketing of proprietary products. The products typically have a high technological content and have the industries of northern Europe as their market. The Group is divided into four business areas, Engineering & Equipment, Flow Technology, Industrial Components and Special Products. The operating companies act independently, with responsibility for both the business operations and the development of customer and supplier relations. Group sales totaled SEK 3,486 M in 2004, generating operating income of SEK 256 M, corresponding to an operating margin of 7.3% and a return on capital employed of 23.5%.