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Full Year 2011Industrivärden, February 8, 2012

“Long-term industrial developer of listed Nordic companies”

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– Long-term industrial developer of listed Nordic companies

Ericsson

Volvo

Sandvik

SSAB

Skanska SCA

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Strong base for value creation

Our portfolio

Holding Market value, Portfolio Share ofSEK bn share, % votes, %

Handelsbanken 12,3 21 11,1

Sandvik 12,2 21 12,2

Volvo 9,3 16 15,0

SCA 7,2 13 29,1

Ericsson 5,6 10 14,3

SSAB 3,4 6 22,6

Skanska 3,2 6 23,7

Indutrade 2,7 5 36,8

Höganäs 0,9 2 10,0

Total 56,9 100

As per December 30 , 2011

Our competitive advantages

A strong, competitive long-term track record with limited risk

Blue-chip portfolio

Long-term active ownership

Leveraged influence

Extensive structural capital

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Focused strategy

Conditions

Sectors: Sector generalist

Business models: Geographically scalable

Cash generation: Good ability

Ownership: Major owner with board representation

Evaluation horizon: 5-8 years

Requirements: Strong potential for value creation

Individual investments

Portfolio

Scope: Concentrated portfolio – focus

Market value: Large and midcap companies

Type: Listed stocks

Geography: Nordic companies

Business cycle: Expansion or management phase

Exit: Appropriate exit once targetvalue has been achieved

Strong value potential and long-term perspective

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12M: 2011 in brief

Net asset value of SEK 40,1 bn or SEK 104 per share

Total return for the equities portfolio was -23% compared to -14% for the index

Share purchases for a total of SEK 4,5 bn net, where purchases in Volvo equals SEK 2,9 bn and where voting rights now amounts 15,0 per cent

In early 2011 a six-year convertible loan of EUR 550 M was issued, where the conversion price was set at a premium to net asset value

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Equities portfolioNet debtInterest-bearing debtConvertible loan

Net asset value

Debt-equity ratio

Net asset value after full conv.

Debt-equity ratio after full conv.

Dec 31 2010

71,1-13,4

-9,2-4,2

57,7

Dec 312010

184-35-24-11

149

19%

144

13%

SEK billion SEK per shareDec 31

2011

56,9-16,8

-8,2-8,6

40,1

Dec 312011

147-43-21-22

104

30%

106

14%

Net asset value

Feb 6 2012

66,2-16,9

-8,5-8,4

49,3

Feb 6 2012

171-43-22-21

128

26%

125

13%

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Total return Index

Industrivärden’s stock - good performanceAverage annual excess return of 3% - points/year vs. MSCI World

0

50

100

150

200

250

300

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

INDU C SAX MXWO MXEU

10 yrs

Average annual excess return of 6% - points/year vs. MSCI EuropeAverage annual excess return of 1% - points/year vs. Nasdaq OMX Nordic, Stockholm

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Active ownership in briefFocus on value enhancement drivers; strategy, development and positioning

Company, competitors and industry

Megatrends

Board-presentations

Company visits

Databases

Nominating committee

participation

In-depth analysis

Direct dialog with company

management

AGM participation

Value creationFundamental analysis

incl. action plan

Board participation/owner cooperation

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Active ownership in practise

Olof Faxander new CEO Increased strategic focus and new organization. New executive management. Acquisition of Seco Tools Consolidation of completed acquisitions. Strong positions in emerging regions.

Consistently applied business model.Organic growth in home markets in the Nordic countries and the UK. Favorable financial and market position in a turbulent environment. Strong capitalization with a significant liquidity reserve.

Martin Lindqvist new CEO Stronger focus on highly profitable specialty products. Strategic investment program to increase capacity in

quenched steel and to strengthen presence in China

Acquisition of Georgia-Pacific’s European tissue operation for SEK 13 bn on a debt free basis. Strengthened presence in hygiene segment in

Brazil, Russia and Turkey.Operations in Australasia sold to co-owned JV,

which released SEK 3 bn. The packaging operations are divested for

approximately SEK 15 bn on a debt free basis.

Strong position ahead of operators’ investments in next generation of telecom systems (4G). North America’s leading supplier of network systems

through selective acquisitions. Acquisition of U.S.-based Telcordia for SEK 7 billion

strengthens Ericsson’s multimedia operations. The share in Sony Ericsson sold to Sony for approx.

SEK 9.5 bn.

Efficient construction operation generates good cash flows. Successful model for value-creating project development. Acquisition of construction company in Indiana, US, for

approx. SEK 0.9 bn. Construction and Operating Consortium New Karolinska in

Stockholm worth SEK 14.5 bn.

Continued growth through acquisitions. Flexibility through decentralized business

model.

Olof Persson new CEO Increased strategic focus and new organization. New financial targets. Strong position in Asia, among other markets.

Increased activity in emerging markets such as Asia and Brazil. Focus on collaboration with customers

on development of new products.

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A well developed universal banking business and decentralized branch network with local customer responsablity contribute to high customer satisfaction and good profitability.

Portfolio of industry leading companiesPortfolio value: 56,9 Billion

Europe’s leading producer of hygiene products, with fast –growing range of personal care products, and of packaging. Europe’s largest private forest owner.

Comprehensive know-how in construction combined with a process focus has created a leading construction services company with world-class value-creating project development.

The combination of sales of industrial, high-tech consumables, good organic growth and a highly refined model for aquisition-based growth has resulted in impressive profitability growth.

The market’s largest and most profitable supplier of mobile telephony infrastructure , with a leading position in telecom development.

World-leading position in quenched steels and advanced high-strength sheet niche segments creates solid foundation for growth and sustained high profitability.

Market leader in growing niche of metal powder, used primarily for component manufacturing in the automotive industry.

Through innovative, customer-adapted product development and high quality, Volvo has attained a world-leading position in commercial transport solutions.

Through a niche focus and strong position in R&D, the company has built up a world-leading position in materials technology with products primarily in manufacturing, mining and construction industries..

21% 21% 16%

13% 10% 6%

6% 5% 2%

100%Portfolio share %

12,3 12,2 9,3

56,9 Market value Billion

7,2 5,6 3,4

3,2 2,7 0,9 (As Per 30 dec 2011)

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5.2%

5.5%

3.8%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

0

1

2

3

4

5

6

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

UtdelningDirektavkastning Indu-ADirektavkastning Indu-CDirektavkastning Börsen

Dividend:

High dividend yield

2,90 SEK/share2,75 3,00 3,50 4,50 5,00 4,50 3,00 4,00 4,50*

DividendDividend yield Indu-ADividend yield Indu-CDividend yield OMXSPI

* Board’s proposal for decision at the AGM 2012

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Industrivärden online

Reuters code INDUa.STBloomberg code INDUA SS

www.industrivarden.net

info@industrivarden.se

+46-8-666 64 00

+46-8-661 46 28

Box 5403, SE-114 84 Stockholm, Sweden