Year-end report 2009

Value development and proposed dividend

Net asset value on December 31, 2009, was SEK 111 per share, an increase of 87%
for the year including reinvested dividends. Net asset value on February 9,
2010, was SEK 108 per share, an decrease of 2% during the year to date.

The value of the equities portfolio increased by SEK 19.3 billion to SEK 53.5
billion, or 56%, in 2009. The Stockholm Stock Exchange rose 47%.

The total return in 2009 for the Class A shares was 64%, compared with 53% for
the return index.

Earnings per share in 2009 were SEK 53.51 (-75.37).

In January 2010, convertible bonds with a five-year term and a principal amount
of EUR 500 M were issued pending approval by an Extraordinary General Meeting
on February 12, 2010.

The Board proposes a dividend of SEK 3.00 per share (4.50).

Long-term return

During the last ten-year period, the annual total return for the Class A shares
outperformed the return index by 2 percentage points.

CEO's message

The past year was characterized by gradual stabilization and a subsequent
recovery of the global economy. The world managed to avoid a depression, but
still we experienced one of the sharpest economic declines in modern time,
followed by a deep recession. The rapid recovery is without a doubt the result
of unique, coordinated action
by the governments and central banks of the G20 countries. This ”first aid” has
consisted of strong stimulus measures and extensive monetary relaxation in the
form of interest rate cuts and liquidity injections into the bank systems. As
these stimulus measures took effect during the year, the IMF and other economic
pundits successively adjusted up their growth expectations. Global growth is
now anticipated for 2010. However, major parts of the international financial
system is still weakly capitalized, and there are major imbalances between
important countries' economies. Further, the growth promotion measures create
greater risk for overheated asset prices. The policies pursued to date have
been successful; now it is important that the support measures are removed in a
sensible fashion at the right point in time and under orderly forms.

Following a drop in our net asset value in 2008 - when the financial crisis
achieved full force - we saw positive development in 2009, when our net asset
value rose SEK 19 billion to SEK 43 billion, or by 87% including reinvested
dividends, compared with 53% for the return index. The total return was 64% for
the Class A shares and 76% for the Class C shares. Our long-term total return
remains favorable and has well outpaced the index.

The restructuring programs in our portfolio companies have been infuenced by
the work to meet the sudden, sharp drop in demand that came in the wake of the
financial crisis. Major emphasis was put on securing the companies' financing,
such as in the form of confirmed lines of credit and corporate bonds. Parallel
with this, the companies have carried out strong measures to adapt their cost
structures. A large share of the cost adaptations have been of a structural
character. This means that higher volumes of demand will result in improved
margins and profitability, all other unchanged.

In January 2010 Industrivärden issued a five-year convertible loan worth EUR
500 M, which was substantially oversubscribed. The aim was to take advantage of
strong market conditions and Industrivärden's good credit quality to obtain
favourable financing with the opportunity to strengthen our capital base. The
issue increases
our financial flexibility and preparedness further to capture attractive
investment opportunities - all to the benefit of our shareholders. The
conversion price is in line with net asset value at the issue date, and
dilution upon full conversion is limited. The issue requires approval by an
Extraordinary General Meeting on February 12. The bonds were subscribed
primarily by long-term European investors focused on convertible instruments.
Our issue attracted great interest as an alternative cost-effective source of
financing.

The proposed dividend of SEK 3.00 (4.50) per share represents a decrease from
last year; this is because we pass on dividends received from our portfolio
companies, which on the whole were lower this year due to weaker earnings. The
proposal represents a dividend yield of approximately 3.4% for the Class A
shares and 3.6% for
the Class C shares.

There is reason to take a more confident view of the current situation now that
the global economy is normalizing and beginning once again to show growth. With
our quality holdings, strong business model and solid financial base,
Industrivärden is well positioned to continue delivering long-term competitive
shareholder value.