-- The total return for the year was 23% for the Class A shares and 18% for
the Class C shares, compared with 28% for the SIXRX total return index. For
the longer ten-year period, the Class C shares generated an excess return
of +1 percentage point per year above the total return index.
-- Net asset value on December 31, 2013, was SEK 155/share, an increase of SEK
26/share, or 24% including reinvested dividends of SEK 5/share. Earnings
per share for the year were SEK 31.16 (28.50). Net asset value on January
31, 2014 was SEK 154/share, or SEK 148/share after full conversion.
-- Several good deals were carried out in 2013 which have contributed to
growth in net asset value and have created a better balance in the
portfolio. The holdings in Höganäs and Indutrade were sold for SEK 1.5 bn
and SEK 3.3 bn, respectively, with sizable capital gains. Of these funds,
SEK 2.4 bn was invested in ICA Gruppen and SEK 0.5 bn in the Finnish
company Kone. The holding in ICA Gruppen had a market value of SEK 4.0 bn
at year-end.
-- The portfolio company SSAB acquires Finnish Rautaruukki. Industrivärden
remains as the principal shareholder of the new SSAB.
-- The Board of Directors proposes a dividend of SEK 5.50 per share (5.00).

CEO's message

As 2013 progressed it grew clearer that the world economy is returning to a
period of improved growth, even though this development was weaker than
anticipated in emerging markets. What is particularly interesting and which
benefits Industrivärden's investments, is that it is now the developed
economies that are showing increasingly stronger signs that the effects of the
worst financial crisis in our time are beginning to trail off. These signs of
higher growth are most apparent in the U.S. In Japan we can also see positive
effects of the country's expansionary policies - the so-called Abenomics - even
though consumers are still clutching hard to their wallets. From a global
economic perspective, it is good that inflation is now rising in Japan and that
the country's economy appears to have removed the threat of deflation. In
euroland, the negative trend has slowed, and signs of a turnaround could be
seen not only in Germany, but also in the countries hit most severely by the
financial crisis, such as Spain. France, on the other hand, is still a major
source of concern, with an increasingly stagnant economy and lack of necessary
reforms toward a clearer market economy. It is also positive to see that the UK
is showing signs of a stronger recovery than anticipated.

In 2013 the Stockholm Stock Exchange rose 23%, while in the U.S., the S&P 500
index gained a full 30%. For Industrivärden's Class A stock the price increase
was 18%, mainly owing to weaker performance for Volvo, Sandvik and SSAB.
Industrivärden's net asset value, including reinvested dividends, grew 24% to
SEK 155 per share. The total return for the Class A and C shares was 23% and
18%, respectively, compared with 28% for the return index.

In this relatively favorable stock market climate, Industrivärden has carried
out a number of good deals that have contributed to our growth in net asset
value and created better balance in the portfolio. In 2013 we sold our holdings
in Höganäs and Indutrade for SEK 1.5 billion and SEK 3.3 billion, respectively,
which freed up a total of SEK 4.8 billion. Of these funds, we invested SEK 2.4
billion, including SEK 0.5 billion, in a rights issue in ICA Gruppen, and SEK
0.5 billion in the Finnish company Kone.

During 2013 our holdings were characterized operationally as well as in terms
of their stock performance by the divergent economic trend we have seen during
the last 18 months. Overall, the economy has performed well during this period.
But in our traditional industrial companies, like Sandvik, Volvo and SSAB,
order bookings have fallen since the euro crisis gained new momentum in summer
2011. This negative trend continued until September 2013. This stands in
contrast to the financial sector, where the banking systems have rebounded and
activity has increased, with favorable performance for the banking sector.

Handelsbanken is performing well, with good profitability, and the bank scores
considerably higher in customer satisfaction surveys than the industry as a
whole. Outside Sweden, the bank is continuing its successful organic growth in
the UK and the Netherlands.

SCA has successfully built upon the accomplishments from recent years'
transformation to a consumer- and hygiene products company. In 2013 SCA's stock
rose 40% to a new all-time high at year-end. The company is now expanding in
China, the world's largest and fastest growing market for tissue products.

Sandvik is currently in the midst of a change process aimed at accelerating
growth and strengthening profitability, while dampening the effects of future
economic swings. In 2013 the Machining Solutions and Materials Technology
business areas showed favorable earnings and signs of improved demand.
Restructuring pro-grams are being carried out in the Mining and Construction
business areas to adapt to changes in the market and boost profitability.

Modern-day Volvo has been created through a series of major acquisitions - in
both the trucks and construction equipment segments - financed by the sale of
Volvo Cars in 1999. Volvo is now in the midst of a major phase of change, with
the introduction of a new, functional organization and improvements in cost
effectiveness. The aim of these measures is to better capitalize on the
efficiency improvement and synergy effects created by a global manufacturing
and business system, with a number of different brands. The ultimate aim is to
boost Volvo's profitability while making the Group more resilient to cyclical
fluctuations. Order bookings for trucks have stabilized at the same time that
Volvo's largest model renewal program ever has been very well received by
customers.

Ericsson is continuing its success in the profitable services segment, which
today accounts for roughly half of Ericsson's total sales. In 2013 Ericsson won
several important contracts for the fourth generation mobile network (LTE),
where it has a leading position. The scope of the recently announced patent
settlement with Samsung illustrates the value of Ericsson's substantial R&D
activities.

Skanska continues to further develop its proven successful model for
international construction and project development activities. The company is
now also implementing its model for infrastructure and commercial real estate
development projects in the U.S.

SSAB, like the European steel industry as a whole, has struggled with high
commodity costs, overcapacity and soft demand. The merger with Rautaruukki is
therefore a logical deal that will generate tangible cost synergies. SSAB is
issuing new shares and acquire Rautaruukki. Industrivärden has declared its
intent to stay on as a principal owner in the new company.

Our short-term trading posted a strong profit of SEK 140 M during the year,
which again exceeded our management costs, which corresponded to 0.17% of
managed assets. Our short-term trading has now earned roughly SEK 1.2 billion
since the start in 2003.

The Board of Directors proposes a dividend of SEK 5.50 per share, which entails
that - as in previous years - we have achieved our goal of paying a dividend
yield that is higher than the average for the Stockholm Stock Exchange.

Anders Nyrén


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