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Interim Report Presentation Q2, 2002 Industrivärden, August 20, 2002

Interim Report Presentation Q2, 2002 Industrivärden, August 20, 2002. Mission, goal and vision. 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

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Interim Report Presentation Q2, 2002 Industrivärden, August 20, 2002

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  1. Interim Report Presentation Q2, 2002 Industrivärden, August 20, 2002

  2. Mission, goal and vision 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  Industrivärden’s stock will give shareholders a high total return Vision To be perceived as the leading investment company with a focus on large and medium-sized listed Nordic companies

  3. Two dimensional strategy Professional invest- ment operation Active ownership Generate high growth in net asset value over time

  4. Ownership structure as per June 30, 2002 • No. shares % of votes shares Source: VPC An@lysis, updated every six months

  5. Declining stock markets for more than two years. . . 105 % % Last since 12 mos. Jan. 1 -23 -22 -30 -29 -32 -34 100 95 90 SP500 85 80 ET100 75 70 SAX 65 60 Sept. ’01 Jul ’02 Oct. ’01 Feb ’02 Jun ’02 Jan ’02 Dec ’01 Aug ’01 Aug ’02 Apr ’02 Nov ’01 May ’02 Mar ’02 Note: Index trend in local currency. As per Aug. 9

  6. . . . also entail decline for Industrivärden’s stock < norm 52,INDU-A (c) SIX AB 2002 < norm 52, AFGX 260.0 200 Change since March 6, 2000 -57% -62% 150 100 50.4 1996 1997 1998 1999 2000 2001 2002 As per Aug. 9

  7. Drop in net asset value SEK/share Jan. 1 – Aug. 15, 2002 -SEK 15 billion or -35% Net asset value Share price Index (AFGX)

  8. Favorable transactions despite tough stock market Average Capital Date Transaction Holding Sector price Price gain Nov. 01 Sale Pharmacia Pharmaceuticals SEK 471 780 130 Apr. 02 Sale Lundbeck Pharmaceuticals DKK 231 2,400 1,500 Apr. 02 Sale Besam Door automation - 3,050 2,300 May 02 Purchase Össur Meditech SEK 5 260 - June 02 Sale Biodisk Meditech - 130 110 Realized gains of approx. SEK 6 billion

  9. Development of net asset value SEK M Varav ränte- bärande netto- låneskuld (-5,2) (-4,8) (-5,8) (-6,3) (-5,1) (-4,9) (-1,1) (-1,2) SEK/share 283 214 222 166 204 193 153 133 Other assets and liabilities (of which, interest-bearing net debt) Listed portfolio Unlisted holdings

  10. Composition of net asset value SEK per share SEK billion Aug. 15 2002 25.1 2.0 27.1 -1.4 25.7 Dec. 31 2001 40.5 4.1 44.6 -5.2 39.4 Aug. 15 2002 130 10 140 -7 133 Dec. 31 2001 210 21 231 -27 204 Listed portfolio Industrial and trading operations and other unlisted holdings Total equities portfolio Other assets and liabilities Net asset value

  11. Össur Life Without Limitations

  12. Medical technology company with strong niche position Business model Overview • 1990 external management • 1999 stock market listing in Iceland • 2000 acquisition of four companies in field of prosthetics • Sales (02e*): USD 82 M +20% • M.Cap: USD 190 M • Sales of prostheses that enable an active life • High-end segment • Goal of being technological leader *Note: Mid-range of management’s budget. USD/ISK = 85.15, Össur’s share price at Aug. 16, 2002 = ISK 49.90 Source: Össur, Reuters, IV research

  13. No. 2 in the world, with good profitability Sales by product Sales by region Earnings breakdown (2002e) Other 5% Other 9% Orthotics 5% COGS 38% North America 58% Nordic region 13% SG&A 38% 7% R&D Other Europe 20% EBIT 17% Prosthetics 90% USD 40 M USD 40 M USD 82 M Note: Pertains to 6 mos. 2002 Source: Össur and IV research

  14. ESTIMATE Prosthetics & orthotics market Prosthetics market* Orthopedics market Prescription orthotics, supports 8% Össur 12% Others 92% Others 88% SEK 4 billion SEK 110* billion *Note: Market definition based on the 12 largest companies in the industry Note: Exchange rate: dollar/SEK = 9.37 Source: Össur and IV research, pertains to 1999

  15. Reasons for amputation Accidents 6% Vascular diseases 40% Cancer and other 20% Diabetes 34% Source: Össur

  16. Product portfolio Knees Liners Shin solutions Locks & sleeves Feet Thigh solutions Source: Össur

  17. Reykjavík Iceland Jackson Michigan, USA Aliso Viejo California, USA Dayton Ohio, USA Direct sales in all major markets Eindhoven The Netherlands Helsingborg & Uppsala Sweden Source: Össur

  18. Industrial channels Marketplace Supplier Orthotic & prosthetic design shop 100% Prosthetics Prosthetic 30% Sports Medicine Orthotics & Orthotic O&P INDUSTRY Over-the-counter sales 70% Source: Össur

  19. Strong position in attractive market Össur Market • High-growth market (8-12%) • Fragmented market • Complementary acquisitions with potential for synergies • No challenging multiples • Organic growth of approx. 20% per year • Strong financial position • Leading technological position. R&D: 6%-8% of sales Industrivärden has acquired 15% stake for SEK 260 M

  20. Portfolio contribution analysis for 2002 SEK M Adjusted for purchases and sales 01/12/31 – 02/8/15.

  21. Development of net asset value Share of net asset value, % 298 283 214 222 166 204 172 153 133 SEK/share Other Dec 99 Dec 00 Mar 01 Jun 01 Sep 01 Dec 01 Mar 02 Jun 02 Aug 02

  22. Sector breakdown, equities portfolio Other (1%) Health care (4%) Trading (5%) Construction (6%) Össur Indutrade Skanska Handelsbanken Skandia Banking and insurance (29%) Telecom (11%) Ericsson Sandvik SSAB Isaberg Rapid others Forestry and consumer products (20%) SCA Engineering (24%) As per June 30, 2002

  23. Listed portfolio as per June 30, 2002 Market valueShare of Share of Share of SEK M SEK/shareportfolio, % capital, % votes, % Handelsbanken 6,836 35 24 7 7 SCA 6,173 32 21 8 28 Sandvik 4,820 25 17 8 8 Ericsson 3,064 16 11 3 28 Skandia 2,000 10 7 5 5 Skanska 1,797 9 6 7 31 SSAB 1,442 7 5 12 16 Pfizer Inc. 961 5 3 <1 <1 Scania 573 3 2 2 2 Volvo 337 2 1 <1 1 Össur 297 2 1 15 15 Eniro 282 2 1 2 2 Other (<SEK 200 M) 326 2 1 Total 28,905 150 100

  24. SCA Hygiene products and packaging materials Industrivärden’s holding as per June 30: 19 million shares Value SEK 6,173 M Share of capital 8%, votes 28% • The leading European company in its core hygiene products and • transport packaging areas • Position in tissue paper and packaging further strengthened through acquisitions of CartoInvest and V+D Stabernack • SCA has now taken a serious step into the North American market

  25. SCA in relation to its peers 400 % % last since 12 mos Jan.1 35 11 32 28 0 0 -41 -26 350 300 SCA 250 Jefferson Smurfit 200 Kimberly Clark Georgia Pacific 150 100 Feb ’02 Jul ’02 Jun ’02 Jan ’02 Sep ’01 Oct ’01 Dec ’01 Aug ’01 Aug ’02 Nov ’01 Apr ’02 May ’02 Mar ’02 Note: Price trend in local currency. As per Aug. 9.

  26. Ericsson Telecom Industrivärden’s holding as per June 30: 199 million shares Value SEK 3,064 M Share of capital 2.5%, votes 28% • World leader in mobile infrastructure, with broad customer base • Technology shift, the business climate and debt-ridden customers underlying profitability problem • Strong measures being taken to reinstate profitability • Rights issue will strengthen financial position and create continued opportunities • Favorable conditions for long-term high growth through network upgrades to e.g., 3G, continued wired-to-mobile substitution, and greater focus on services

  27. Continued strong growth in subscribers No. mobile subscribers worldwide 1999-2006P (MST) 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 1999 2000 2001 2002 2003 2004 2005 2006 Source: Ericsson forecast

  28. Global trend of continued growth and rising profitability for mobile operators Sales growth 1H02*/1H01, % Operating margin before depreciation 1H02* vs 1H01,% Sales growth, % Average Average *Source: interim reports and investment bank forecasts

  29. Considerably lower investment levels have slowed the negative debt trend Net debt-equity ratio 1H02* vs 2H01,% Investments/sales 1H02*/1H01, % Net debt-equity ratio Investments, sales Average Average The lower level of investment indicates that the market for mobile infrastructure has contracted by over 25% Debt is unevenly spread, and most operators do not have weak balance sheets *Source: interim reports and investment bank forecasts

  30. Ericsson in relation to its peers 60 50 % % last since 12 mos Jan. 1 -33 -20 -40 -54 -77 -76 -84 -85 -87 -87 40 30 Motorola Nokia 20 Lucent Ericsson 10 Nortel 0 Feb ’02 Jan ’02 Sep ’01 Jun ’02 Jul ’02 Oct ’01 Dec ’01 Aug ’01 Aug ’02 Nov ’01 Apr ’02 May ’02 Mar ’02 Note: Price trend in local currency. As per Aug. 9

  31. Industrivärden’s role in Ericsson’s rights issue • Total issue amount SEK 30 billion • Industrivärden has committed to subscribe for SEK 3 billion - Of which, pro rata share SEK 700 M - Of which, SEK 2.3 billion will be subscribed only to the extent the rights issue is not fully subscribed

  32. Timetable for Ericsson’s rights issue August 8 Last day for trading in shares with rights to subscribe in rights issue August 9 First day of trading in Ericsson ex-right August 15 First day of official trading in subscription rights First day for payment of issue price August 29 Last day of trading in subscription rights September 3 Last day for payment of issue price September 6 Preliminary subscription acceptance presented

  33. Skandia Financial services Industrivärden’s holding as per June 30: 48 million shares Value SEK 2,000 M Share of capital and votes 4.5% • International long-term savings company with focus on equity-related products • Globally leading purchaser of fund management services • Transformation from property & casualty insurance/reinsurance company to long-term savings company complete • Unique organic growth with presence in over 20 countries • Sales primarily through independent financial advisers • Weak stock markets has resulted in sales decline and drop in stock price

  34. Skandia in relation to its peers 125 100 % % last since 12 mos Jan. 1 -29 -22 -38 -31 -57 -64 -70 -64 75 Sampo Nationwide 50 Aegon 25 Skandia 0 Feb ’02 Jan ’02 Sep ’01 Jun ’02 Jul ’02 Oct ’01 Dec ’01 Aug ’01 Aug ’02 Nov ’01 Apr ’02 May ’02 Mar ’02 Note: Price trend in local currency. As per Aug. 9

  35. Industrivärden online Reuterskod INDUa.ST Bloombergskod INDUA SS Datastream kod W :IU  www.industrivarden.net  info@industrivarden.se  +46-8-666 64 00  +46-8-661 46 28  Box 5403, SE-114 84 Stockholm, Sweden www.industrivarden.se / IR / Ask… / Info... www.waymaker.se / Latest News / Subscribe Press release direct:

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