Investor AB Year-End Report 2001

Business Wire, Jan 24, 2002

Business Editors

STOCKHOLM, Sweden--(BUSINESS WIRE)--Jan. 24, 2002

Investor's net asset value on December 31, 2001 amounted to SEK 118,284 m. (SEK 154 per share), compared with SEK 144,433 m. on December 31, 2000 (SEK 188 per share). In the fourth quarter, Investor's net asset value increased SEK 16,266 m.

The value of all Investor's holdings was SEK 129,366 m. on December 31, 2001, as against SEK 154,561 m. at year-end 2000. Net debt amounted to SEK 11,082 m. on December 31, 2001, corresponding to 9 percent of total assets.

The value of Investor's Core Holdings changed by SEK -22,065 m. during the year. Ericsson and ABB accounted for a substantial part, SEK -14,767 m. and SEK -8,157 m., respectively. The value of Investor's Core Holdings appreciated SEK 15,553 m. in the fourth quarter.

Investor increased its holdings in Ericsson and SEB during the year and divested holdings in SAS, SKF and Stora Enso at the same time.

The value of New Investments decreased SEK 2,474 m. during 2001. In the fourth quarter, the value of New Investments increased SEK 686 m. During the year shares were purchased for a total of SEK 6,893 m. and shares were sold for a total of SEK 3,820 m.

Income of the Investor Group after tax amounted to SEK 8,156 m. in 2001, compared with SEK 13,459 m. last year. Income in the fourth quarter totaled SEK 483 m.

The total return on Investor shares was -15 percent during the year, compared with 20 percent last year.

The proposed ordinary dividend to shareholders is SEK 3.00 per share (3.00). An extraordinary dividend of SEK 2.50 per share (2.50) is also proposed.

      Investor's key figures
                                   12/31 2001             12/31 2000
 Assets, SEK bn.                          129                    155
 Net debt, SEK bn.                         11                     10
 Net asset value, SEK bn.                 118                    144
 Net asset value per share, SEK           154                    188

                                                          Oct.- Oct.-
                                                          Dec.   Dec.
 Development during the year/quarter      2001  2000      2001   2000

 Change in net asset value, SEK bn.        -26    -4        16    -12
 Change in net asset value, percent        -18    -3        16     -8
 Income after tax, SEK bn.                   8    13       0.5     -1
 Total return, percent                     -15    20        14      3

The year-end report can also be accessed on the Internet at www.investorab.com

President's comments

Balanced performance in a declining market

The year 2001 distinguished itself by extraordinary events in both the political and economic arenas. Developments on the world's stock exchanges were characterized by unusual volatility between quarters within a downward, overall trend. For example, the Stockholm Stock Exchange, the S&P 500 and Nasdaq experienced declines in the first and third quarters, but gains in the second and fourth. As a whole, 2001 was a weak year, with downturns on virtually all of the world's exchanges. It is worth noting that the Stockholm exchange declined two years in a row for the first time in 25 years, following a seven-year upward trend prior to 2000.

On an aggregate basis, the global economy showed little or no growth during 2001. The outlook for 2002 remains uncertain. The aggressive easing of monetary policy by the U.S. Federal Reserve was reflected in a record number of interest rate cuts, 11 times in succession. Rate reductions were also implemented in many other countries during the year, in combination with tax cuts and increased public spending. This combination of fiscal and monetary stimulation should have a positive impact on the global economy. Predicting the time horizon is more difficult, however. Nonetheless, the industrial economies are still burdened by the effects of overinvestment mainly in telecommunications and information technology, the risks of lower private consumption and higher unemployment. The year 2002 will involve many challenges across the international economy.

For Investor, the year was characterized by active work to support and position portfolio companies. Investor's Core Holdings portfolio was also further streamlined. Holdings in Ericsson and SEB were increased and holdings in SAS, SKF and Stora Enso were divested. This long-term and strategically important transaction sharpened Investor's focus on the telecommunications and financial services business segments. During the year Investor sold its remaining interest in Saab Automobile and Investor's own convertible debenture loans were retired. This has further concentrated the portfolio. It should also be noted that Investor's active portfolio management operations (securities trading) generated attractive returns during the year, despite the unstable financial markets. New Investments' representation in Investor's portfolio increased during 2001, which was in line with the previously announced strategy and represented yet another step in the process to focus on companies with high growth and profit potential. As a whole, Investor's diversified portfolio, consisting of companies of varying size that operate in different sectors, has contributed to the portfolio's balanced development.