Interim Report January - September 2002

Interim Report January - September 2002 Investor's net asset value on September 30, 2002 amounted to SEK 56,914 m. (SEK 74 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 75,658 m. on September 30, 2002, as against SEK 129,366 m. at year-end 2001. Net debt amounted to SEK 18,744 m. on September 30, 2002 (SEK 11,082 m. on December 31, 2001), corresponding to 25 percent of total assets (9). The value of Core Holdings declined SEK 56,291 m. during the nine-month period. Ericsson and AstraZeneca accounted for decreases of SEK 21,483 m. and SEK 19,493 m., respectively. Investor increased its holdings in Ericsson and Electrolux during the third quarter through the purchase of shares for SEK 1,756 m. and SEK 9 m., respectively. Earlier during the year shares were purchased in Ericsson, SEB and WM-data. In the second quarter Investor participated in ABB's convertible bond issue. The value of New Investments declined SEK 1,121 m. in the first nine months of the year, of which SEK 630 m. in the third quarter. Shares were purchased for SEK 3,455 m. and shares were sold for SEK 1,663 m. The holding in Syngenta was reduced during the third quarter and all remaining shares were sold after the close of the reporting period. The total return on Investor shares was -59 percent in the first nine months of 2002, compared with -25 percent in the corresponding period of 2001. The annual average total return has been 15 percent for the past 20 years. 9/30 2002 12/31 2001 9/30 2001 Assets, SEK bn. 76 129 114 Net debt, SEK bn. -19 -11 -12 Net asset value, 57 118 102 SEK bn. Net asset value per 74 154 133 share, SEK Development during January- January- July- July- the September September September September period/quarter 2002 2001 2002 2001 Change in net asset -61 -42 -30 -26 value, SEK bn. Change in net asset -52 -29 -34 -18 value, percent Income after tax, 0 8 -1 -1 SEK bn. Total return, -59 -25 -44 -27 percent Investor's key figures The interim report can also be accessed on the Internet at www.investorab.com President's comments Long-term commitment in a weak market We are currently in a historically very weak market with poor visibility going forward. In this turbulent market environment it is important to emphasize a business-oriented perspective as a balance to pure financial considerations. During the year, our efforts with several holdings have been primarily directed towards improving profitability, emphasizing financial stability and focusing the business. AstraZeneca's shares performed weakly in the third quarter, which was also one of the main reasons for Investor's lower net asset value. However, the share price increased towards the end of the quarter when an advisory committee to the U.S. Food and Drug Administration (FDA) voted in favor of accelerated approval of AstraZeneca's Iressa® lung cancer treatment. AstraZeneca has strong cash flow and a solid balance sheet, as well as a promising research portfolio. The company has already launched a number of new pharmaceuticals that are gaining ground, such as Seroquel® and Aridimex®. AstraZeneca also has several drugs in advanced stages of development. In the third quarter Ericsson completed its new rights issue, which raised approximately SEK 30 bn. for the company. Investor participated in the issue and underwrote a substantial part of it. During the year Investor has increased its holding in Ericsson from 4.7 percent to 5.3 percent of the share capital, which also reflects our long-term belief in the company and its future. Ericsson still faces a number of challenges, but with cost adjustments, a strengthened balance sheet and its market-leading position in third-generation mobile telephony, Ericsson has strong potential for restoring its long-term profitability. At ABB there was a change of CEO during the quarter and the company continued to streamline operations by selling, for example, most of its Structured Finance business, which had a positive impact on ABB's balance sheet. The company has indicated that it intends to speed up efforts to boost efficiency and sharpen the focus of operations. ABB is also focusing on improving operating results and increasing its transparency. The mobile operator Hi3G is continuing to build out its operations. For example, tests of video telephony have been conducted with satisfactory results. Hi3G is expected to launch services on a gradual basis during the first half of next year. In an effort to broaden its customer base and gain benefits from synergies, Hi3G has bid for Telia Mobile's 3G business in Finland. Discussions are also in progress with banks about financing options for Hi3G. The goal is to develop a long-term financial solution that best suits Hi3G and its owners. In today's market, it is also important to restate our long-term belief in mobile telecommunications and data communications and the growing potential of 3G technology going forward. The climate in the private equity market, which has been impacted to a large extent by the downturn in public markets, has continued to be difficult. Investor Growth Capital, which takes a selective approach to new investments and follow-on investments, has only made a relatively small number of write-downs during the period, primarily due to historically conservative valuations and a well diversified portfolio. The focus is still on developing existing holdings and making new investments in the healthcare and technology fields. During the quarter an investment was made in the Nasdaq-listed healthcare company ISTA Pharmaceuticals, among others. EQT has continued to be active acquiring medium-size companies with positive cash flow and attractive growth potential. For example, EQT recently purchased the German flavors and fragrances companies Haarmann & Reimer and Dragoco, which will be merged to form a new company. Against the background of a market downturn that has lasted more than two years, Investor's leverage of 25 percent, in our judgment, is still considered to be limited. It is also worth mentioning again that Investor completed a large refinancing program earlier this year by issuing a EUR 500 m. bond loan with a maturity of ten years. Naturally, we attach great importance to changes in our debt and we are continuing to balance it carefully, over time, against stock market developments and opportunities for attractive investments. On October 3, 2002, Standard & Poor's Ratings Services announced that it is keeping its AA- rating and stable credit quality outlook for Investor. The remaining holding in Syngenta was divested after the close of the period, contributing SEK 1.2 bn. in cash. In conclusion, it can be noted that the third quarter was dominated by negative fundamental news for both the financial markets and the real economy. In the wake of this, stock markets around the world fell sharply, also reflecting renewed worries about the sustainability of the U.S. economic recovery and the more uncertain outlook for the profit levels of companies. Growth continues to be weak in Europe, Asia and South America. Oil prices have risen as a result of political instability in the Middle East. However, inflation and interest rates have fallen to very low levels. Since Investor was established in 1916, we have experienced a number of economically difficult periods, and in retrospect, Investor has been able to emerge stronger and with a number of good investments. We remain focused on value creation in portfolio companies through long-term committed ownership. We also intend to continue our search for new business opportunities and invest in businesses that belong to the future. This is Investor's tradition, and it will remain the cornerstone of Investor's future. [REMOVED GRAPHICS] 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/2002/10/10/20021010BIT00150/wkr0001.doc The Full Report http://www.waymaker.net/bitonline/2002/10/10/20021010BIT00150/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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