Interim Report January - June 2002

Interim Report January - June 2002 Investor's net asset value on June 30, 2002 amounted to SEK 86,639 m. (SEK 113 per share), compared with SEK 118,284 m. on December 31, 2001 (SEK 154 per share). The value of Investor's total assets was SEK 102,267 m. on June 30, 2002, as against SEK 129,366 m. at year-end 2001. Net debt amounted to SEK 15,628 m. on June 30, 2002 (SEK 11,082 m. on December 31, 2001), corresponding to 15 percent of total assets (9). The value of Core Holdings declined SEK 28,343 m. during the six-month period. Ericsson and AstraZeneca accounted for decreases of SEK 16,678 m. and SEK 9,413 m., respectively. Electrolux and Saab AB contributed with appreciation of SEK 711 m. and SEK 390 m., respectively. Investor increased its holdings in Ericsson and SEB during the second quarter through the purchase of shares for SEK 599 m. and SEK 384 m., respectively. During the quarter Investor also participated in ABB's convertible bond issue in an amount totaling approximately SEK 530 m. In the first quarter, shares were purchased in WM-data for SEK 308 m. and in SEB for SEK 26 m. The value of New Investments decreased SEK 491 m. in the first six months of the year. Shares were purchased for a total of SEK 1,847 m. and shares were sold for a total of SEK 1,579 m. Kyphon and Ballingslöv were listed in the second quarter. The total return on Investor shares was -26 percent in the first six months of 2002, compared with 3 percent appreciation in the corresponding period of 2001. The average annual total return has been 20 percent for the past 20 years. 6/30 2002 12/31 2001 6/30 2001 Assets, SEK bn. 102 129 139 Net debt, SEK bn. 15 11 11 Net asset value, 87 118 128 SEK bn. Net asset value per 113 154 167 share, SEK Development during January- January- April- April- the June 2002 June 2001 June 2002 June 2001 period/quarter Change in net asset -31 -16 -32 2 value, SEK bn. Change in net asset -27 -11 -27 2 value, percent Income after tax, 1 9 0 8 SEK bn. Total return, -26 3 -28 16 percent Investor's key figures The interim report can also be accessed on the Internet at www.investorab.com President's comments Many areas of the world are experiencing political and economic uncertainty at the moment. Although growth in many countries has recovered to a certain extent, weak stock exchanges and troubled credit markets are negatively affecting both investments and private consumption. In the second quarter the world's stock exchanges took turns leading the decline, which has encompassed virtually all industries. A contributing factor to the market weakness is growing uncertainty about the quality of earnings and the financial viability of companies, including reduced confidence in corporate accounting. In addition, it is being reported that some institutional owners have changed the composition of their portfolios, which has affected stock market trends. The weakening of the U.S. dollar has been another point of concern. The Stockholm Stock Exchange was one of the markets that experienced the weakest results and is down 24 percent since the beginning of the year - the worst start to a trading year since the 1930s. The healthcare sector, which had previously withstood the market downturn relatively well, also declined in the second quarter. The telecom sector continued to perform poorly and has fallen approximately 48 percent on the Stockholm exchange since the start of the year. Investor's strategy - to be a committed, long-term owner that supports its portfolio companies strategically, operationally and financially - is important to emphasize against this background. During the period, Investor's financial position has enabled participation in ABB's convertible bond issue and commitment to Ericsson's planned new rights offering. In addition, a number of add-on investments and new investments were made during the first half. Investments during the period have increased Investor's debt, although it is still considered to be limited in relation to total assets. In line with stock market developments, the value of most of Investor's core holdings declined in the first six months of the year. Exceptions were Electrolux and Saab, whose share prices rose. AstraZeneca, Investor's largest holding, was affected by the general market downturn. During the period AstraZeneca reported that it had received preliminary approval for its Crestor statin in the United States and approval for its anti-cancer drug Iressa in Japan. AstraZeneca's progress in research and strong financial position inspire confidence that the company will perform favorably in the future. Ericsson's shares continued to weaken. The company is continuing to implement cost-reduction measures as part of its efforts to restore profitability. Investor supports Ericsson's new rights offering, which is designed to give the company increased financial resources if the telecom markets remain weak. The offering will also give Ericsson the resources to respond to any business recovery. Investor's long-term holding in Ericsson, and belief in the telecom industry, was demonstrated by the purchase of additional shares in Ericsson during the second quarter. During the year Investor also increased its holdings in SEB and WM-data, two companies that are well positioned in their respective markets. As noted above, Investor also subscribed to ABB's convertible bond issue in an amount corresponding to its stake in the company. ABB is continuing to restructure its finances and operations. The company has also reported a positive trend of orders. New investments, divestments and IPOs were carried out in the New Investments business in the second quarter. Despite the difficult public market environment, it was gratifying that Kyphon went public on the Nasdaq exchange, and that one of EQT's portfolio companies, Ballingslöv, was listed on the Stockholm Stock Exchange. Furthermore, the Hong Kong- based venture capital company imGO was divested and generated a capital gain. At the same time, Investor Growth Capital announced that it is initiating direct venture capital activities in Asia. With two specialized teams focused on buyouts (Investor Capital Partners - Asia Fund) and early-stage technology companies (Investor Growth Capital Asia), Investor's presence has been strengthened in the growing Asian market. Investor's active portfolio management unit again generated a very high return. As announced earlier, the scope of Investor's own equity-trading activities will be reduced going forward. The review of Investor's organization has resulted in further cost reductions, which is now reflected in the financial statements. It is worth noting that slightly more than half of Investor's total costs are related to venture capital operations, which also employ more than half of Investor's employees. This business is personnel-intensive but also has high return potential. Investor's venture capital operations are considered to be cost-competitive. [REMOVED GRAPHICS]Investor's history shows that a long-term ownership philosophy is put to the test in times of economic uncertainty. However, such times also offer many attractive business opportunities. In a turbulent market it is important to maintain a long-term perspective of operations and portfolio companies. Investor stands firmly by its business concept to create value in portfolio companies, and thereby also creating value for shareholders, through committed ownership and entrepreneurial investment activities. Marcus Wallenberg ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/07/10/20020710BIT00050/wkr0001.doc The full report http://www.waymaker.net/bitonline/2002/07/10/20020710BIT00050/wkr0002.pdf The full report

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Investor, founded by the Wallenberg family a hundred years ago, is the leading owner of high quality Nordic-based international companies. Through board participation, our industrial experience, network and financial strength, we strive to make our companies best-in-class. Our holdings include among others ABB, Atlas Copco, Ericsson, Mölnlycke and SEB.

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