Full year 2006

1
A long-term industrial developer of listed
companies
Full year 2006 Industrivärden, February 15, 2007
2
Company in brief

• Established 1944
• Stock 193 million shares, listed on SSEX
• Market cap Approx. USD 7.5 bn (SEK 54 bn)
• Free float Approx. 40 of shares
• No. shareholders 39,000
• Average daily trading vol. Approx. 140,000
  shares
• Coverage Carnegie, Frida Willmansson, 46 8 676
  88 00
• Enskilda Securities, Andreas Joelsson, 46 8
  52 2295 00
• ABN Amro Bank, Rickard Henze 46 8 723 58 00
• Handelsbanken, Magnus Dalhammar 46 8 710 1000
• Low administrative expenses, USD 10 M or less
  than 0.2 of AUM

3
Mission, goal and strategy
Business mission Create shareholder value based
on a professional investment operation and active
ownership
Our goal Generate high growth in net asset value
over time ? Industrivärdens stock will deliver a
high total return to shareholders
Conditions
Portfolio
Scope Concentrated portfolio
Sectors Sector generalist Ownership Possibility
to be major or structure largest
owner Investment horizon 3-8 years Geography N
ordic companies Requirement Major potential for
value creation
Individual investments
Market value Large and midcap companies Type
Mainly listed Exit Appropriate exit
once target value has been created
4
Investment focus
Nordic companies
Public sector
Expansion phase
Management phase
Restructuring phase
Startup phase
Private equity investor in mature companies
Venture capitalists
Industrivärden
5
Investment case comparable advantages

• Proven track record excess returns over a long
  period of time
• Cost-efficient organization less than 0.2 in
  management costs
• High quality portfolio of blue-chip companies
• Good financial resources and long-term
  perspective
• First-rate model for exercising value
  enhancement by active ownership
• Professional management team and organization
• Experienced directors nominated in our active
  holdings
• Valuable contact network with Nordic ties

6
2006 in summary
107

• Net asset value SEK 58.5 billion, SEK 10.2
  billion, or 24 including reinvested dividends
• The total return for Industrivärden Class A
  shares was 29, and the total return for the
  Class C shares was 28, compared with 28 for the
  return index
• Entirely transparent portfolio after sale of
  Isaberg Rapid for SEK 0.3 billion
• Purchases of stocks totaled SEK 3.2 billion, and
  sales totaled SEK 2.1 billion
• Earnings from short-term trading amounted to SEK
  173 M approximately SEK 0.5 billion in total
  earnings contribution since the start
• The Board proposes a dividend of SEK 9.00 per
  share (7.00), plus a 21 stock split

22 32 21 6
SEK bn
Net asset value
Substansvärdet
Portföljvärdet
Portfolio value
Nettoskulden
Net debt
2006
7
Industrivärdens dividend
Bonus dividend Ordinary dividend SSEX dividend
yield Dividend yield
3.3
3.0
Dividend 3.75 4.50 6.20 8.40 8.35 5.80 5.50 6.00
7.00 9.00 SEK/share Of which ordinary 3.75 4.50 5
.00 5.00 5.00 5.00 5.50 6.00 7.00 9.00
8
Stock Split
To facilitate trading in round lots for
shareholders with small holdings, the Board has
proposed a 21 split. The split is planned to be
implemented in April 2007.
Number Current Split 21 Class A
shares 134,273,702 268,547,404 Class C
shares 58,861,910 117,723,820 Total 193,135,612 38
6,271,224 Price A share 28200 14100 Price C
share 26600 13300 Value 1 trading lot,
A 56,400 28,200 Value 1 trading lot,
C 53,200 26,600
Current price in SEK as per February XX,
2007. One trading lot includes 200 shares.
9
Development of portfolio companies
Total return,
2006 Net sales ?, Op. income ?,
Margin ? pts 2006 Ten yrs.,
annually SHB 06 21,212 12 12,132
10 57.2 -1.2 9 16 (9 m) 05 18,911 11,041 58
.4 Sandvik 06 72,289 14 12,068 27 16.7 1.
7 38 15 05 63,370 9,532 15.0 Ericsson 06
177,783 17 35,828 8 20.2 -1.6 2 5
05 151,821 33,084 21.8 SCA 06 101,439
5 8,505 17 8.4 0.8 27 15 05 96,385 7,293
7.6 SSAB 06 31,054 12 6,054 6 19.5 -1.1 7
3 21 05 27,804 5,735 20.6 Skanska 06 12
5,603 1 4,762 -5 3.8 -0.2 17 13 05 124,667 5,
000 4.0 Indutrade 06 4,516 18 436 35 9.7
1.2 55 51 05 3,822 324 8.5 Munters 06
4,250 18 386 55 9.1 2.1 48 18 (9 m) 05
3,588 250 7.0 Höganäs 06 5,123 12 602 31 1
1.8 1.8 7 4 05 4,594 461 10.0
Index 28 13
Since market introduction.
10
Good growth in value
Annual average total return
Industrivärden A SIXRX Difference 1 year
(2006) 29 28 1 pts 5 years 16 13 3
pts 10 years 18 13 5 pts 62 years 15 13
2 pts
11
Professional organization
First-rate methods and models
Portfolio of quality companies

• Proven value creation over many years
• Depth of knowledge about portfolio companies
  and their business environments
• Major experience in strategic company
  development
• Lean, effective organization provides speed and
  flexibility
• Extensive network a strength
• Returns from short-term transactions cover
  Industrivärdens costs

• Own-developed work methods, models and systems
  vouch for high quality
• Structured processes for evaluating existing
  and new investments
• Proven model for profitable value creation

• Concentrated portfolio provides focus
• Industry-leading companies provide favorable
  future opportunities
• Substantial ownership positions provide
  influence
• Long-term focus enables influence through
  active ownership

12
Transactions during 2006
Net purchases Thousands SEK M Tandberg
Television 5,793 737 Volvo A 529 225 Handelsbanken
A 1,000 202 Other 300 Total 2,217
Net sales Thousands SEK M Volvo B 448 190 SSAB
A 743 72 Övrigt 81 Total 343
13
Divestment of Isaberg Rapid

• Sale to Segulah in December 2006 possession
  transferred in January 2007
• Payment of approx. SEK 300 M for the shares
  capital gain of nearly SEK 100 M
• ? The strategy to invest in Nordic listed
  companies is now established fully
  transparent portfolio

14
Strong financial position
Net debt (SEK bn)
Net debt equity ratio
SEK 4.3 bn
6.5
15
A portfolio of industry-leading companies
Other 4 or SEK 2.5 bn
Leading metal powder producer 1 or SEK 0.6 bn
(2004)
Leading player in complex construction
projects 7 or SEK 5 bn (1987)
Successful Nordic universal bank 22 or SEK 15
bn (1963)
World leader in moisture control 2 or SEK 1 bn
(2002)
World leading producer of specialty steel 11 or
SEK 7 bn (1994)
Technology trading company active in northern
Europe 3 or SEK 2 bn (1989)
Leading high-tech company in materials
technology 22 or SEK 15 bn (1997)
Global consumer products and packaging
company 14 or SEK 9 bn (1950)
Worlds largest supplier of systems for mobile
telecom 14 or SEK 10 bn (1944)
Portfolio share and value as per February 13.
(Holding since).
16
High activity good return
Dec 31, 2006
Other
Dec 31, 1996
Other
Other subsidiaries
SEK 23 bn
SEK 64 bn
Increase in value of portfolio SEK 41 bn Annual
excess return 5 -points higher than the
return index per year Major deals in excess of
SEK 500 M 40 Share of listed companies From
80 to approx. 100 of portfolio  
10 yrs
17
Favorable development of net asset value...
SEK/share
SEK M
Net debt
Net asset value
Portfolio
CAGR, 10 years 10
18
... and long-term excess returns
The average annual excess return was
3-points/year for last five years 5-points/ye
ar for last ten years
Total return index (Index)
(c) SIX AB 2007
541
500
Industrivärden stock
400
300
200
Total Return Index (SIXRX)
100
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
07
As per February 13, 2007
19
Industrivärden online
?
? Reuters code INDUa.ST Bloomberg code INDUA
SS Datastream code W IU ? www.industrivarden.ne
t ? info_at_industrivarden.se ? 46-8-666 64
00 ? 46-8-661 46 28 ? Box 5403, SE-114 84
Stockholm, Sweden
www.industrivarden.net / IR / Ask /
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