Investor AB

Annual Report • Oct 19, 2020

Interim Management Statement

January-September 2020

"I am impressed by the management teams in our companies and the way they have handled a challenging year. They have stayed close to their customers, while quickly adapting their operations. I also believe that our companies have done an excellent job in balancing necessary cost reductions with continuation of prioritized investments to future-proof the businesses and emerge as long-term winners."

Johan Forssell, President & CEO of Investor

Highlights during the third quarter

• Adjusted net asset value (NAV) amounted to SEK 537,358m (SEK 702 per share) on September 30, 2020, an increase of SEK 46,408m, or 9 percent, with dividend added back, during the quarter. Total shareholder return amounted to 19 percent during the quarter, compared to 13 percent for the SIXRX return index.
• Listed Companies generated a total return of 7 percent.
• Based on estimated market values, the total return for Patricia Industries, excluding cash, amounted to 18 percent (16 percent including cash), driven by multiple expansion and higher earnings (adjusted for items affecting comparability in Sarnova).
• Sales growth for the major subsidiaries amounted to 2 percent, of which 5 percent organic in constant currency. Reported EBITA declined by 1 percent, while adjusted EBITA grew by 7 percent.
• Mölnlycke reported organic sales growth of 29 percent in constant currency, mainly driven by covid-19 related sales of personal protective equipment. This positive impact is expected to remain during the fourth quarter and into 2021, although to a lesser extent. Underlying organic growth was solid in both business areas and the EBITA-margin was in line with last year.
• Patricia Industries announced the acquisition of Advanced Instruments, the global leader in instrumentation and consumables for osmolality testing, for USD 780m in enterprise value.
• The value of our EQT investments increased by 3 percent. Net cash flow to Investor amounted to SEK 0.3bn.
• Leverage (net debt/reported total assets) was 4.7 percent as of September 30, 2020 (2.8 as of December 31, 2019). Gross cash amounted to SEK 14,395m and the average maturity of Investor AB's debt portfolio was 10.3 years on September 30, 2020.

Financial information*

		9/30 2020	6/30 2020	12/31 2019
Adjusted NAV, SEK m*		537,358	490,950	485,019
Adjusted NAV, SEK per share*		702	641	634
Reported NAV, SEK m*1)		458,345	431,788	420,681
Reported NAV, SEK per share*1)		599	564	550
Market capitalization, excluding repurchased shares, SEK m		447,821	374,980	389,770
Share price (B-share), SEK		587.00	491.70	511.20
			Q3 2020	YTD 2020
Adjusted NAV, sequential change, incl. dividend added back, SEK m*			46,408	59,228
Adjusted NAV, sequential change, incl. dividend added back, %*			9	12
Reported NAV, sequential change, incl. dividend added back, SEK m*1)			26,557	44,554
Reported NAV, sequential change, incl. dividend added back, %*1)			6	11
Market capitalization, sequential change, incl. dividend added back, SEK m*			72,841	64,940
Market capitalization, sequential change, incl. dividend added back, %*			19	17
	Q3 2020	Q3 2019	YTD 2020	YTD 2019

Consolidated net sales, SEK m 9,923 10,952 28,117 32,245 Consolidated profit/loss, SEK m 27,170 20,643 45,076 67,529 Basic earnings per share, SEK 35.51 26.94 58.97 88.22

* Financial measures that are not defined or specified in the applicable financial reporting framework. For more information, see page 16 and 25. Change in market capitalization with dividend added back reflects the change in total market capitalization with the dividend paid out added back. Change in net asset value with dividend added back includes the full dividend approved by the AGM.

1) In the reported net asset value, the wholly-owned subsidiaries and partner-owned investments within Patricia Industries are reported according to the acquisition and equity method respectively. Methods are further described in Investor AB's Annual Report.

Overview annual average performance

	YTD	1 year	5 years	10 years	20 years
Adjusted NAV incl. dividend added back, %	12.2	19.4
Investor B, total return, %	16.9	25.2	18.6	19.4	11.3
SIXRX return index, %	8.2	18.7	12.2	11.5	7.6

CEO statement

Dear fellow shareholders,

While the world economy remained impacted by covid-19 in the third quarter, many industries and geographies have gradually improved. This is encouraging, but we are not out of the woods yet. At the moment, the spread of the pandemic is picking up speed again in a number of regions. There is also plenty of

geopolitical risk and short-term, the U.S. Presidential election adds uncertainty.

I am impressed by the management teams in our companies and the way they have handled a challenging year. They have stayed close to their customers, while quickly adapting their operations. I also believe that our companies have done an excellent job in balancing necessary cost reductions with continuation of prioritized investments to future-proof the businesses and emerge as long-term winners.

During the third quarter, our adjusted net asset value increased by 9 percent. Our total shareholder return was 19 percent, compared to 13 percent for the SIXRX return index. Year-to-date, our total shareholder return amounts to 17 percent, while the SIXRX return index is up 8 percent.

Listed Companies

During the quarter, total return was 7 percent for Listed Companies, compared to 13 percent for the SIXRX return index, leaving the year-to-date figures at 10 percent for our portfolio and 8 percent for the SIXRX. Activity in the companies remained high. Ericsson announced the strategic acquisition of Cradlepoint, strengthening its enterprise offering. Atlas Copco is extending its business segment Smart Factory Automation through the announced acquisition of Perceptron. In Wärtsilä, the board of directors has appointed Håkan Agnevall as the new President and CEO and he is expected to start on April 1, 2021, at the latest.

Patricia Industries

Based on estimated market values, the total return for Patricia Industries amounted to 18 percent during the quarter, driven by multiple expansion and higher underlying earnings. The major value driver was Mölnlycke.

Overall, the major subsidiaries' operational performance was strong in the quarter. In total, organic sales grew by 5 percent while adjusted EBITA increased by 7 percent. The demand situation was good in Mölnlycke, Sarnova and Three Scandinavia, and they all maintained or improved operating margins. Covid-19 continued to negatively impact Laborie, Permobil, BraunAbility and Piab. Still, despite double-digit organic sales drops, all four companies managed to maintain profitability at healthy levels, due to swift cost adaptation.

Mölnlycke reported organic sales growth of 29 percent in constant currency, mainly driven by new contracts for personal protective equipment within Surgical. These contracts are expected to have a positive impact in the fourth quarter and into 2021, but to a lesser extent. That said, underlying organic growth was solid in both business areas, with Wound Care growing by 5 percent.

Despite a negative revenue mix, with a lower share of Wound Care sales, profitability remained in line with last year, thanks to good cost control and operating leverage.

Sarnova reported 5 percent organic growth, and the underlying EBITA margin improved from 10 to 13 percent. Sarnova announced that it will create a leading provider of revenue cycle management (RCM) solutions for emergency medical services (EMS) professionals by acquiring and simultaneously combining the Digitech and R1 RCM EMS businesses.

Permobil remained significantly impacted by covid-19 restrictions, limiting customer access. While sales fell 13 percent organically, the EBITA margin was in line with last year, driven by good cost management.

Organic sales in Laborie declined by 13 percent due to a significant decline in elective procedures within Urology and Gastroenterology. The recently acquired maternal and child health business grew slightly in the quarter. The EBITA margin was below last year, but improved significantly compared to the second quarter.

At the end of the quarter, we announced the acquisition of a new subsidiary, Advanced Instruments, for an enterprise value of USD 780m. The company is the leading global provider of osmolality testing instrumentation and consumables for the clinical, biopharmaceutical and food & beverage markets. The company fulfils many of the criteria we seek in new investments, namely a leading market position in an attractive industry niche with solid long-term growth prospects, strong profitability and cash flow, and a significant percentage of revenues being recurring. We look forward to continuing to grow and develop Advanced Instruments.

Investments in EQT

The value of our investments in EQT increased by 3 percent during the quarter, split roughly equally between our holding in EQT AB and our fund investments. Net cash flow to Investor was SEK 0.3bn.

Balance sheet and cash flow

Our balance sheet remains strong. At the end of the quarter, our leverage amounted to 4.7 percent, giving us ample financial flexibility, even including the pending closure of the acquisition of Advanced Instruments.

Going forward

Near-term, we will continue to assist our companies in various ways to help them weather these special circumstances. Simultaneously, it is of course highly important that we maintain focus on strategically prioritized areas such as innovation, digitalization and sustainability, as always with the goal to generate attractive returns to you, dear fellow shareholders.

Johan Forssell President & CEO

Net asset value overview

				Adjusted values		Reported values
	Number of share 9/30 2020	Ownership capital/votes (%) 9/30 2020	Share of total assets (%) 9/30 2020	Value, SEK m 9/30 2020	Value, SEK m 12/31 2019	Value, SEK m 9/30 2020	Value, SEK m 12/31 2019
Listed Companies
Atlas Copco	207,754,141	16.9/22.3	16	88,382	76,960	88,382	76,960
ABB	265,385,142	12.2/12.2	11	60,763	57,232	60,763	57,232
AstraZeneca	51,587,810	3.9/3.9	9	50,866	48,482	50,866	48,482
SEB	456,198,927	20.8/20.8	6	36,382	40,124	36,382	40,124
Epiroc	207,757,845	17.1/22.7	5	26,959	23,756	26,959	23,756
Ericsson	256,104,764	7.7/22.8	5	26,128	20,052	26,128	20,052
Sobi	107,594,165	35.4/35.4	4	23,344	16,584	23,344	16,584
Nasdaq	19,394,142	11.8/11.8	4	21,375	19,353	21,375	19,353
Saab	40,972,622	30.2/39.7	2	10,845	12,865	10,845	12,865
Electrolux	50,786,412	16.4/28.4	2	10,630	11,651	10,630	11,651
Husqvarna	97,052,157	16.8/33.1	2	9,528	7,252	9,528	7,252
Wärtsilä	104,711,363	17.7/17.7	1	7,413	10,780	7,413	10,780
Electrolux Professional	58,941,654	20.5/32.3	0	2,098	-	2,098	-
Total Listed Companies			67	374,713	345,089	374,713	345,089
Patricia Industries		Total exposure (%)
Subsidiaries
Mölnlycke1)		99	14	80,135	62,112	20,605	18,169
Permobil1)		98	2	13,686	11,685	3,957	3,810
Laborie		98	2	9,602	8,467	8,432	4,764
Sarnova		86	1	8,129	5,847	4,495	4,622
Piab1)		97	1	5,432	4,829	5,422	5,591
BraunAbility		95	1	4,100	5,686	2,023	2,091
Vectura		100	1	3,888	3,825	3,740	3,589
Grand Group		100	0	136	356	136	149
Total subsidiaries			22	125,108	102,806	48,810	42,785
Three Scandinavia		40/40	1	6,723	8,367	4,009	4,050
Financial Investments			1	3,169	4,310	3,169	4,310
Total Patricia Industries excl. cash Total Patricia Industries incl. cash			24	135,001 149,267	115,484 136,381	55,988 70,254	51,146 72,043
Investments in EQT
EQT AB	174,288,016	18.1/18.3		30,195	18,954	30,195	18,954
Fund investments				19,948	18,294	19,948	18,294
Total Investments in EQT			9	50,143	37,248	50,143	37,248
Other Assets and Liabilities			0	161	-840	161	-840
Total Assets excl. cash Patricia Industries			100	560,017	496,981	481,004	432,643
Gross debt*				-37,054	-36,856	-37,054	-36,856
Gross cash*				14,395	24,894	14,395	24,894
Of which Patricia Industries				14,267	20,897	14,267	20,897
Net debt				-22,659	-11,962	-22,659	-11,962
Net Asset Value				537,358	485,019	458,345	420,681
Net Asset Value per share				702	634	599	550

1) Including receivables related to Management Participation Program foundations. For Mölnlycke, the receivable corresponds to less than 1 percentage point of the total exposure, for Permobil to approximately 2 percentage points and for Piab to approximately 3 percentage points.

Overview

For balance sheet items, figures in parentheses refer to year-end 2019 figures. For income statement and cash flow items, they refer to the same period last year.

Net asset value

During the nine-month period 2020, adjusted net asset value increased from SEK 485.0bn to SEK 537.5bn. The change in adjusted net asset value, with dividend added back, was 12 percent (25) during the period, of which 9 percent during the third quarter (8).

Reported net asset value increased from SEK 420.7bn to SEK 458.3bn. The change in reported net asset value, with dividend added back, was 11 percent (22) during the period, of which 6 percent during the third quarter (6).

Total adjusted assets by business area

Net debt and cash flow

Net debt totaled SEK 22,659m on September 30, 2020 (11,962), corresponding to leverage of 4.7 percent (2.8).

Our target leverage range is 5-10 percent (net debt/total reported assets) over a business cycle. While leverage can fluctuate above and below the target level, it should not exceed 25 percent for a longer period of time.

Gross cash amounted to SEK 14,395m and gross debt to SEK 37,054m as of September 30, 2020.

The average maturity of Investor AB's debt portfolio was 10.3 years on September 30, 2020 (11.1).

Investor's net debt
SEK m	YTD 2020
Opening net debt	-11,962
Listed Companies
Dividends	5,463
Other capital distributions	21
Investments, net of proceeds	-3,382
Management cost	-82
Total	2,020
Patricia Industries
Proceeds	1,399
Investments	-4,942
Internal transfer to Investor	-2,938
Management cost	-200
Other1)	51
Total	-6,630
Investments in EQT
Proceeds (divestitures, fee surplus and carry)	3,893
Drawdowns (investments and management fees)	-4,246
Management cost	-7
Total	-359
Investor groupwide
Dividend to shareholders	-6,889
Internal transfer from Patricia Industries	2,938
Management cost	-79
Other2)	-1,697
Closing net debt	-22,659

1) Incl. currency related effects and net interest paid.

2) Incl. currency related effects, revaluation of debt and net interest paid.

Management cost

Investor's management cost amounted to SEK 114m during the third quarter 2020 (113).

As of September 30, 2020, rolling 4 quarters management cost amounted to 0.10 percent of the adjusted net asset value.

The Investor share

The price of the Investor A-share and B-share was SEK 582.00 and SEK 587.00 respectively on September 30, 2020, compared to SEK 506.50 and SEK 511.20 on December 31, 2019.

The total shareholder return (Class B-share) amounted to 17 percent during the nine-month period 2020 (31), of which 19 percent during the third quarter 2020 (8).

The SIXRX return index was 8 percent during the ninemonth period 2020 (23), of which 13 percent during the third quarter 2020 (2).

Investor's market capitalization, excluding repurchased shares, was SEK 447,821m as of September 30, 2020 (389,770).

Average annual total return

Listed Companies

Listed Companies include ABB, AstraZeneca, Atlas Copco, Electrolux, Electrolux Professional, Epiroc, Ericsson, Husqvarna, Nasdaq, Saab, SEB, Sobi and Wärtsilä. These are multinational companies with strong market positions and proven track records. In general, they are well positioned and we work continuously to support them to remain or become best-in-class.

Highlights during the quarter

• Ericsson and Atlas Copco announced strategic acquisitions.
• Wärtsilä appointed a new CEO.
• Electrolux and Husqvarna proposed reinstated dividends.

Performance

Total return (excluding management costs) for Listed Companies amounted to 10 percent during the nine-month period 2020, of which 7 percent during the third quarter.

The SIXRX return index was 8 percent during the ninemonth period 2020, of which 13 percent during the third quarter.

Contribution to net asset value (adjusted and reported) amounted to SEK 31,643m during the nine-month period 2020 (49,851), of which SEK 24,418m during the third quarter (5,663).

Contribution to net asset value
SEK m	Q3 2020	YTD 2020	YTD 2019
Changes in value	23,699	26,262	41,515
Dividends	746	5,463	8,415
Management cost	-28	-82	-79
Total	24,418	31,643	49,851

Contribution to net asset value and total return

		Q3 2020		YTD 2020
	Value, SEK m	Contribution, SEK m	Total return (%)	Contribution, SEK m	Total return (%)
Atlas Copco	88,382	7,013	8.6	12,149	16.0
ABB	60,763	5,340	9.6	3,596	7.5
AstraZeneca	50,866	736	1.5	3,734	7.9
SEB	36,382	-459	-1.2	-3,742	-9.3
Epiroc	26,959	2,850	11.8	3,452	14.9
Ericsson	26,128	3,087	13.4	5,167	26.0
Sobi	23,344	194	0.8	6,760	40.8
Nasdaq	21,375	-195	-0.9	2,266	11.9
Saab	10,845	1,282	13.4	-2,020	-15.7
Electrolux	10,630	2,706	34.2	-1,021	-2.0
Husqvarna	9,528	2,145	29.1	2,276	31.4
Wärtsilä	7,413	-361	-4.5	-2,836	-26.9
Electrolux Professional2)	2,098	108	5.4	1,943	141.4
Total	374,713	24,446	7.0	31,725	9.5

1) Calculated as the sum of share price changes with reinvested dividends, including add-on investments and/or divestments.

2) First day of trading March 23, 2020.

Dividends received

Dividends received totaled SEK 5,463m during the ninemonth period 2020 (8,415), of which SEK 746m during the third quarter (791).

Dividends received, Listed Companies

Investments and divestments

Third quarter

No new investments or divestments during the quarter.

Earlier during the year

10,470,000 shares were purchased in ABB for SEK 2,118m. 16,074,964 shares were purchased in Ericsson for SEK 1,101m. 8,155,242 shares were purchased in Electrolux Professional for SEK 160m. 7-year options, with a strike price of 120 percent of the share price, in Wärtsilä and Electrolux Professional were sold to the chairpersons in the respective companies. The total consideration was SEK 8m.

Listed Companies, value distribution, September 30, 2020

Patricia Industries

Patricia Industries includes Mölnlycke, Permobil, Laborie, Piab, Sarnova, BraunAbility, Vectura, Grand Group, Three Scandinavia and Financial Investments. Patricia Industries' focus is to invest in and develop wholly-owned companies in the Nordics and in North America.

Highlights during the quarter

• Based on estimated market values, the total return for Patricia Industries, excluding cash, amounted to 18 percent (16 percent including cash), driven by multiple expansion and higher earnings (adjusted for items affecting comparability in Sarnova).
• Operating performance was strong for the major subsidiaries, with 5 percent organic sales growth and adjusted EBITA growth of 7 percent.
• Patricia Industries announced the USD 780m acquisition of Advanced Instruments, its fourth North American subsidiary.

Operating performance

During the nine-month period 2020, sales growth for the major subsidiaries (excluding Aleris during the first quarter 2019) amounted to -1 percent. Organic growth was -3 percent in constant currency. EBITA amounted to SEK 4,811m, a decline of 9 percent. Adjusting for transactionand integration costs in Laborie, Piab and Sarnova, CEO transition costs in Mölnlycke and Sarnova's profit contribution related to the Ambu transition last year, EBITA declined by 3 percent.

During the third quarter 2020, sales growth amounted to 2 percent. Organic growth was 5 percent in constant

currency. EBITA amounted to SEK 1,954m, a decrease of 1 percent. Adjusting for transaction costs in Sarnova and the Ambu-related one-off items last year, EBITA grew by 7 percent.

Major subsidiaries, performance

Q3 2020

		Org. growth, constant					Operating
SEK m	Sales	currency	EBITDA	EBITDA (%)	EBITA1)	EBITA, (%)	cash flow
Mölnlycke	4,980	29	1,496	30.0	1,341	26.9	718
Permobil	941	-13	220	23.4	176	18.7	187
Laborie	551	-13	163	28.4	148	25.6	61
Sarnova	1,508	5	124	8.5	106	7.3	320
Piab	349	-10	102	29.1	82	23.4	82
BraunAbility	1,355	-22	156	11.2	123	8.8	26
Vectura	77	3	50	65.3	14	17.9	-25
Grand Group	63	-67	-4	-6.1	-35	-55.7	-44
Total	9,826		2,308	23.5	1,954	19.9	1,325
Reported growth y/y, %	2		0		-1
Organic growth, y/y, %	5

1) EBITA is defined as operating profit before acquisition-related amortizations.

YTD 2020

		Org. growth, constant					Operating
SEK m	Sales	currency	EBITDA	EBITDA (%)	EBITA1)	EBITA, (%)	cash flow
Mölnlycke	13,074	9	3,823	29.2	3,335	25.5	2,544
Permobil	2,922	-9	601	20.6	463	15.9	638
Laborie	1,506	-21	208	13.8	167	11.1	49
Sarnova	4,936	6	548	11.1	490	9.9	514
Piab	1,091	-9	296	27.1	252	23.1	279
BraunAbility	3,914	-25	301	7.7	197	5.0	-93
Vectura	208	4	124	59.6	32	15.5	-876
Grand Group	208	-58	-30	-14.6	-126	-60.5	-128
Total	27,859		5,871	21.1	4,811	17.3	2,927
Reported growth y/y, %	-1		-7		-9
Organic growth, y/y, %	-3

1) EBITA is defined as operating profit before acquisition-related amortizations.

Performance

Contribution to adjusted net asset value amounted to SEK 15,799m during the nine-month period 2020 (27,460), of which SEK 20,478m during the third quarter (14,623).

Contribution to adjusted net asset value

SEK m	Q3 2020	YTD 2020	YTD 2019
Changes in value	20,538	15,974	27,652
Management cost	-64	-200	-197
Other	4	25	5
Total	20,478	15,799	27,460

Based on estimated market values, the total return for Patricia Industries, excluding cash, amounted to 14 percent (12 percent including cash) during the nine-month period 2020, of which 18 percent (16 percent including cash) during the third quarter. During the third quarter, the total return was driven by multiple expansion and higher earnings (adjusted for items affecting comparability in Sarnova).

For more information on valuation, see page 28.

Investments and divestments

Third quarter

Investments amounted to SEK 0m. Divestments amounted to SEK 149m.

Patricia Industries announced the acquisition of Advanced Instruments, the global leader within instrumentation and consumables for osmolality testing, for an enterprise value of USD 780m. Patricia Industries plans to inject approximately USD 620m in equity for majority ownership. The transaction is expected to close during the fourth quarter 2020.

Earlier during the year

Investments totaled SEK 4,943m, mainly related to Laborie's acquisition of Clinical Innovations. Divestments amounted to SEK 920m, mainly related to Financial Investments.

Distributions received

During the nine-month period 2020, distributions to Patricia Industries amounted to SEK 330m. No distributions were made during the third quarter.

Distribution to Patricia Industries

Patricia Industries, net cash

SEK m	Q3 2020	YTD 2020	YTD 2019
Beginning of period	14,315	20,897	13,017
Net cash flow	150	-3,543	4,202
Internal transfer to Investor	-	-2,938	-2,912
Other1)	-198	-149	97
End of period	14,267	14,267	14,403

1) Includes currency-related effects, net interest and management cost.

Patricia Industries – valuation overview

	Estimated market values, SEK m, 9/30, 2020	Change Q3 2020 vs. Q2 2020 SEK m	Major drivers	Comments
Subsidiaries
Mölnlycke	80,135	18,303	Higher multiples, earnings and cash flow impacted positively	Applied EV/reported LTM EBITDA 18.8x.
Permobil	13,686	744	Higher multiples and cash flow impacted positively, lower earnings impacted negatively	Applied EV/reported LTM EBITDA 20.4x
Laborie	9,602	-681	Lower earnings and currency impacted negatively. Higher multiples impacted positively	Applied EV/adj. LTM EBITDA 22.8x.
Sarnova	8,129	1,817	Higher multiples, adjusted earnings and cash flow impacted positively, currency impacted negatively	Applied EV/adj. LTM EBITDA 14.8x
Piab	5,432	1,004	Higher multiples impacted positively, lower earnings impacted negatively	Applied EV/adj. LTM EBITDA 17.8x
BraunAbility	4,100	-1,010	Lower earnings and multiples impacted negatively	Applied EV/adj. LTM EBITDA 14.2x
Vectura	3,888	31		Estimated market value of the property portfolio less debt and cost
Grand Group	136	-35	Valued at book value due to covid-19 situation	Book value
Partner-owned investments
Three Scandinavia	6,723	254	Cash flow impacted positively	Applied EV/adj. LTM EBITDA 5.8x.
Financial Investments	3,169	-38		Multiple or third-party valuation, share price
Total	135,001
Total incl. cash	149,267

A provider of advanced products for treatment and prevention of wounds and single-use surgical solutions. Read more at www.molnlycke.com

Activities during the quarter

Group

• Organic sales growth amounted to 29 percent in constant currency. Growth was mainly driven by strong sales of personal protective equipment as an effect of covid-19. The underlying business recovered and achieved solid organic growth compared to last year. All regions contributed positively.
• New customer agreements within personal protective equipment are expected to add significant sales during the fourth quarter and into 2021, although to a lesser extent than in the third quarter.
• Despite the negative business mix, with a lower share of Wound Care sales, the EBITA margin of 27 percent was essentially in line with last year, driven by good cost control.
• Barry McBride, currently member of Mölnlycke's management team, was appointed interim CEO. New CEO Zlatko Rihter will assume his position as of November 30, 2020.

Wound Care

• Organic growth amounted to 5 percent in constant currency.

Surgical

• Organic growth amounted to 58 percent in constant currency.
• Growth was mainly driven by Personal Protective Equipment, but Gloves and Antiseptics also grew. Mölnlycke Procedure® Trays and Surgical Drapes were negatively impacted by the decline in elective procedures, reflecting the continued impact of covid-19.

Sales and margin development

Key figures, Mölnlycke Income statement items, EUR m ^{2020 2019} Last 12 Q3 YTD Q3 YTD months Sales 479 1,238 380 1,140 1,641 EBITDA 144 362 115 337 476 EBITA 129 316 100 292 415 Sales growth, % 26 9 8 7 Organic growth, constant currency, % 29 9 7 5 EBITDA, % 30.0 29.2 30.4 29.6 29.0 EBITA, % 26.9 25.5 26.3 25.6 25.3 Cash flow items, EUR m Q3 YTD Q3 YTD EBITDA 144 362 115 337 IFRS 16 lease payments -5 -15 -6 -15 Change in working capital -62 -84 13 -38 Capital expenditures -7 -23 -8 -24 Operating cash flow 70 241 115 260 Acquisitions/divestments -2 -4 - -65

Number of employees 7,860 7,810 1) Includes effects of exchange rate changes, interest, tax and change in lease liabilities due to IFRS 16.

Working capital/sales, % 13 Capital expenditures/sales, % 2

9/30 2020 9/30 2019

Distribution of sales and organic sales growth

contribution/distribution - - -7 -182 Other1) -19 -93 -39 -153

debt 49 144 69 -140

Balance sheet items, EUR m 9/30 2020 12/31 2019 Net debt 1,326 1,471

	Share of sales, (%) Last 12 months	Organic growth, constant currency, (%) Q3 2020
Wound Care	51	5
Surgical	49	58
Total	100	29

Distribution of sales by geography

Shareholder

Key ratios

Increase(-)/decrease(+) in net

15		Share of sales, (%) 2019
10	Europe, Middle East, Africa	59
	Americas	33
	Asia Pacific	8
	Total	100

A provider of advanced mobility and seating rehab solutions. Read more at www.permobil.com

Activities during the quarter

• Organic sales growth amounted to -13 percent in constant currency, as covid-19 restrictions continued to negatively impact customer access. Americas and EMEA declined, while APAC continued to grow. The rate of decline subsided somewhat towards the end of the quarter.
• Despite the significant sales drop, the EBITA margin was inline with last year, driven by cost reductions and adjustments of production capacity.
• Permobil introduced a new generation of its M3 and M5 Corpus powered wheelchairs in the Americas through a major digital launch.

Key figures, Permobil

Income statement items,		2020		2019	Last 12
SEK m	Q3	YTD	Q3	YTD	months
Sales		941 2,922 1,141 3,232			4,136
EBITDA	220	601	265	692	833
EBITA	176	463	216	546	643
Sales growth, %	-17	-10	7	6
Organic growth,
constant currency, %	-13	-9	3	0
EBITDA, %	23.4	20.6	23.2	21.4	20.1
EBITA, %	18.7	15.9	18.9	16.9	15.5
Cash flow items, SEK m	Q3	YTD	Q3	YTD
EBITDA	220	601	265	692
IFRS 16 lease payments	-14	-40	-12	-35
Change in working capital	6	172	11	85
Capital expenditures	-26	-95	-29	-87
Operating cash flow	187	638	235	654
Acquisitions/divestments	-	-47	-	-
Shareholder contribution/distribution	-	-	-	-120
Other1)	82	-58	-247	-723
Increase(-)/decrease(+) in net
debt	269	532	-12	-189
Key ratios
Working capital/sales, %					18
Capital expenditures/sales, %					3
Balance sheet items, SEK m		9/30 2020		12/31 2019
Net debt		3,017		3,549
		9/30 2020		9/30 2019
Number of employees		1,560		1,610

1) Includes effects of exchange rate changes, interest, tax and change in lease liabilities due to IFRS 16.

A provider of innovative capital equipment and consumables for the urology and gastroenterology markets. Read more at www.laborie.com

Activities during the quarter

• Organic sales growth amounted to -13 percent in constant currency, due to a significant decline in elective urology and gastroenterology procedures due to covid-19. While urology and gastroenterology sales recovered during the quarter, they remained below the previous year's level. The maternal and child health business (acquired during the first quarter 2020) was less impacted by covid-19 and grew during the quarter.
• The EBITA margin declined compared to last year as a result of the organic sales drop, but was partly offset by cost containment measures and strong performance in the maternal and child health business.
• On October 1, 2020, Laborie acquired a majority interest in GI Supply (GIS), a leading manufacturer of specialty gastroenterology products based in the U.S. For the 12 month period ending June 30, 2020 GIS sales were approximately USD 18m. Laborie invested approximately USD 20m in GIS.
• On October 8, 2020, Laborie entered into a strategic partnership with Urotronic, a U.S.-based medical device company developing technologies for the treatment of urethral strictures and benign prostatic hyperplasia. Laborie will invest USD 15m for a minority interest in Urotronic and secure an option to acquire Urotronic.

Key figures, Laborie

Income statement items,	2020		2019		Last 12
USD m	Q3	YTD	Q3	YTD	months
Sales	62	160	50	149	217
EBITDA	18	22	17	40	38
EBITA	16	18	15	37	33
Sales growth, %	24	8	-1	14
Organic growth,
constant currency, %	-13	-21	-2	2
EBITDA, %	28.4	13.8	33.4	27.0	17.6
EBITA, %	25.6	11.1	31.1	24.6	15.1
Cash flow items, USD m	Q3	YTD	Q3	YTD
EBITDA	18	22	17	40
IFRS 16 lease payments	0	-1	0	-1
Change in working capital	-9	-6	-6	-12
Capital expenditures	-2	-10	-5	-15
Operating cash flow	6	5	6	12
Acquisitions/divestments	-	-524	-	-3
Shareholder
contribution/distribution	-	450	-	-
Other1)	-16	-31	-1	-23
Increase(-)/decrease(+) in net
debt	-9	-100	5	-13
Key ratios
Working capital/sales, %					16
Capital expenditures/sales, %					6
Balance sheet items, USD m		9/30 2020		12/31 2019
Net debt		388		288
		9/30 2020		9/30 2019
Number of employees		860		625

1) Includes effects of exchange rate changes, interest, tax and change in lease liabilities due to IFRS 16.

A provider of innovative healthcare products to national emergency care providers, hospitals, schools, businesses and federal government agencies. Read more at www.sarnova.com

Activities during the quarter

• Organic sales growth amounted to 5 percent in constant currency, despite the reduction in sales related to exiting the Ambu agreement. Within Emergency Preparedness, covid-19 drove an increase in demand for personal protective equipment. Acute was negatively impacted due to the reduction of hospital-based elective procedures.
• On July 20, 2020, Sarnova announced that it will create a leading provider of revenue cycle management (RCM) solutions for emergency medical services (EMS) professionals by acquiring and simultaneously combining the Digitech and R1 RCM EMS businesses. The combined business will continue to operate under the Digitech name and operate as a standalone entity. Sarnova will own more than 60 percent of the company and consolidate it in its financial statements. For the 12-month period ending June 30, 2020 sales for the combined business were approximately USD 90m, with profitability higher than Sarnova's historical levels. Sarnova will invest approximately USD 130m in the combined business, funded with cash on hand and incremental debt. The transaction is expected to close during the fourth quarter 2020.
• Adjusting for USD 10m in transaction-related costs this quarter and for USD 8m Ambu-related one-off items last year, the underlying EBITA margin increased from 10 percent to 13 percent.

Key figures, Sarnova

Income statement items,	2020		2019		Last 12
USD m	Q3	YTD	Q3	YTD	months
Sales	171	525	163	492	681
EBITDA	15	58	27	65	75
EBITA	13	52	25	58	67
Sales growth, %	5	7	14	10
Organic growth,
constant currency, %	5	6	8	6
EBITDA, %	8.5	11.1	16.4	13.2	11.0
EBITA, %	7.3	9.9	15.0	11.9	9.8
Cash flow items, USD m	Q3	YTD	Q3	YTD
EBITDA	15	58	27	65
IFRS 16 lease payments	-1	-2	-1	-2
Change in working capital	27	9	9	2
Capital expenditures	-6	-10	-7	-11
Operating cash flow	35	55	28	53
Acquisitions/divestments	-	-	-	-17
Shareholder
contribution/distribution	-	-	-	-
Other1)	-7	-7	-15	-39
Increase(-)/decrease(+) in net
debt	27	48	13	-3
Key ratios
Working capital/sales, %					15
Capital expenditures/sales, %					0
Balance sheet items, USD m		9/30 2020		12/31 2019
Net debt		239		287
		9/30 2020		9/30 2019
Number of employees		670		645

1) Includes effects of exchange rate changes, interest, tax and change in lease liabilities due to IFRS 16.

A provider of gripping and moving solutions for automated manufacturing and logistics processes. Read more at www.piab.com

Activities during the quarter

• Organic sales growth amounted to -10 percent in constant currency, as many customer groups continued to be impacted by covid-19. APAC reported solid growth driven by China, whereas Americas and Europe declined. Vacuum Automation was flat while the other divisions declined. Piab experienced increased customer activity towards the end of the quarter.
• Despite the significant organic sales drop, the EBITA margin amounted to 23 percent, supported by active cost management.
• Piab launched piSOFTGRIP® 30-3, a soft gripping tool for sensitive and lightweight objects of odd geometries, especially suited for the food industry.

Key figures, Piab

Income statement items,	2020		2019		Last 12
SEK m	Q3	YTD	Q3	YTD	months
Sales		349 1,091	320	947	1,411
EBITDA	102	296	107	303	372
EBITA	82	252	96	274	319
Sales growth, %	9	15	3	3
Organic growth,
constant currency, %	-10	-9	-1	-3
EBITDA, %	29.1	27.1	33.3	32.0	26.4
EBITA, %	23.4	23.1	30.0	29.0	22.6
Cash flow items, SEK m	Q3	YTD	Q3	YTD
EBITDA	102	296	107	303
IFRS 16 lease payments	-13	-25	-6	-17
Change in working capital	5	42	-6	-12
Capital expenditures	-12	-34	-9	-32
Operating cash flow	82	279	86	242
Acquisitions/divestments	-	-980	-	-11
Shareholder
contribution/distribution	-	-	-59	-59
Other1)	-9	-78	-57	-184
Increase(-)/decrease(+) in net
debt	72	-779	-30	-12
Key ratios
Working capital/sales, %					18
Capital expenditures/sales, %					3
Balance sheet items, SEK m		9/30 2020		12/31 2019
Net debt		1,767		987
		9/30 2020		9/30 2019
Number of employees		630		490

1) Includes effects of exchange rate changes, interest, tax and change in lease liabilities due to IFRS 16.

A manufacturer of wheelchair accessible vehicles and wheelchair lifts. Read more at www.braunability.com

Activities during the quarter

• Organic sales growth amounted to -22 percent in constant currency, mainly driven by the Consumer segment, while the Commercial and Lifts segments were more stable. While the covid-19 pandemic still impacted customer demand, sales continued to improve across the product portfolio compared to the previous quarter.
• Despite the significant sales drop, the EBITA margin was essentially in line with last year, driven by efficient cost management.

Key figures, BraunAbility

Income statement items,	2020		2019		Last 12
USD m	Q3	YTD	Q3	YTD	months
Sales	152	417	193	544	607
EBITDA	17	32	21	55	47
EBITA	13	21	18	45	33
Sales growth, %	-21	-23	15	17
Organic growth, constant currency, %	-22	-25	6	4
EBITDA, %	11.2	7.7	10.9	10.2	7.8
EBITA, %	8.8	5.0	9.1	8.2	5.4
Cash flow items, USD m	Q3	YTD	Q3	YTD
EBITDA	17	32	21	55
IFRS 16 lease payments	-2	-6	-2	-6
Change in working capital	-11	-32	9	-2
Capital expenditures	-1	-4	-3	-5
Operating cash flow	2	-10	24	42
Acquisitions/divestments	-	-4	-	-5
Shareholder
contribution/distribution	-	-	-	-
Other1)	-3	-10	-4	-33
Increase(-)/decrease(+) in net
debt	-1	-24	20	5
Key ratios
Working capital/sales, %					8
Capital expenditures/sales, %					1
Balance sheet items, USD m		9/30 2020		12/31 2019
Net debt		216		193
		9/30 2020		9/30 2019
Number of employees		1,600		1,705

1) Includes effects of exchange rate changes, interest, tax and change in lease liabilities due to IFRS 16.

Develops and manages real estate in community service, office and hotel. Read more at www.vecturafastigheter.se

Activities during the quarter

• Sales growth amounted to 3 percent. The revenues from Grand Hôtel decreased compared to last year due to covid-19, but were offset by increased revenues from Community Services properties.
• A rental agreement for 5,700 square meters has been signed with Elekta who has decided to establish its global head quarter in Forskaren, a new state of the art office building in the life-science center in Hagastaden, Stockholm. Construction of the building will commence during the fourth quarter 2020 and is expected to be completed by the end of 2023.
• Vectura, the municipality of Huddinge and the Clara foundation have entered a letter of intent providing Vectura with an option to develop a property in connection to Södertörns Högskola and the hospital in Flemingsberg.

Key figures, Vectura

Income statement items,	2020		2019		Last 12
SEK m	Q3	YTD	Q3	YTD	months
Sales	77	208	75	201	281
EBITDA	50	124	52	134	162
EBITDA, %	65.3	59.6	69.5	67.0	57.9
EBITA adj.1)	14	32	31	73	33
EBITA adj %	17.9	15.5	41.6	36.6	11.8
Balance sheet items, SEK m	9/30 2020		12/31 2019
Net debt	3,900			2,662
		9/30 2020		12/31 2019
Real estate market value		8,577		7,282

1) EBITA adjusted for depreciation of surplus values related to properties.

Consists of Grand Hôtel, Lydmar Hotel and The Sparrow Hotel in Stockholm. Read more at www.grandhotel.se, www.lydmar.com, and www.thesparrow.se

Activities during the quarter

• Organic sales growth amounted to -67 percent and continued to be significantly impacted by the decrease in tourism and business travelling due to covid-19.
• The EBITA margin was negative as a result of the low sales.

Key figures, GrandGroup

Income statement items,	2020		2019		Last 12
SEK m	Q3	YTD	Q3	YTD	months
Sales	63	208	189	490	397
EBITDA	-4	-30	47	96	15
EBITA	-35	-126	14	-1	-113
Organic growth, constant currency, %	-67	-58	3	6
EBITA, %	-55.7	-60.5	7.5	-0.2	-28.5
Balance sheet items, SEK m			12/31 2019
Net debt		876		893
EBITDA, %	-6.1	-14.6 9/30 2020	24.7	19.6	3.8

A provider of mobile voice and broadband services in Sweden and Denmark. Read more at www.tre.se.

Activities during the quarter

• The subscription base increased by 38,000, of which 31,000 in Sweden and 7,000 in Denmark. Service revenue growth amounted to -1 percent during the quarter, negatively impacted by decreased revenue from international roaming due to the reduction in travel following covid-19.
• EBITDA increased by 1 percent compared to last year.
• Three launched a solution for its business customers to make and receive telephone calls directly through the Microsoft Teams app, a feature not available in the standard Microsoft Teams package.
• Three Sweden surpassed Telenor and Telia in the consumer segment of the Swedish SKI annual customer satisfaction survey.

Key figures, Three Scandinavia

	2020		2019		Last 12
Income statement items	Q3	YTD	Q3	YTD	months
Sales, SEK m	2,568	7,796	2,646	7,697	10,804
Sweden, SEK m	1,645	4,939	1,663	4,937	6,828
Denmark, DKK m	666	2,017	684	1,947	2,806
Service revenue1), SEK m	1,695	5,086	1,685	4,891	6,752
Sweden, SEK m	1,057	3,116	1,015	2,994	4,125
Denmark, DKK m	461	1,391	466	1,338	1,854
EBITDA, SEK m	1,026	3,011	1,011	2,888	4,042
Sweden, SEK m	729	2,109	684	1,985	2,785
Denmark, DKK m	214	637	228	637	887
EBITDA, %	39.9	38.6	38.2	37.5	37.4
Sweden	44.3	42.7	41.2	40.2	40.8
Denmark	32.1	31.6	33.3	32.7	31.6
Key ratios
Capital expenditures/sales, %					13
Balance sheet items, SEK m		9/30 2020		12/31 2019
Net debt		6,398		6,934

	9/30 2020	9/30 2019
Number of employees	1,760	1,840
Other key figures	9/30 2020	9/30 2019
Subscriptions	3,630,000	3,505,000
Sweden	2,168,000	2,057,000
Denmark	1,462,000	1,448,000

1) Mobile service revenue excluding interconnect revenue.

Financial Investments

Financial Investments consist of investments in which the investment horizon has not yet been defined. Our objective is to maximize the value and use realized proceeds for investments in existing and new subsidiaries. However, some holdings could become long-term investments.

Change in net asset value, Financial Investments

SEK m	Q3 2020	YTD 2020	YTD 2019
Net asset value, beginning of period	3,207	4,310	7,277
Investments	2	50	255
Divestments/distributions Exit proceeds pending	-149	-1,069	-2,720
settlement	-	-	791
Changes in value	110	-122	848
Net asset value, end of period	3,169	3,169	6,452

Activities during the quarter

• The holding in Retail Solutions Inc was fully exited.

Five largest Financial Investments, September 30, 2020

Company	Region	Business	Listed/ unlisted	Reported value, SEK m
CDP Holding	Asia	IT	Unlisted	452
EZ Texting	U.S	IT	Unlisted	343
Atlas Antibodies	Europe	Healthcare	Unlisted	324
Sutter Hill Ventures	U.S	Venture fund	Unlisted	313
Affibody	Europe	Healthcare	Unlisted	198
Total				1,631

As of September 30, 2020, the five largest investments represented 51 percent of the total value of the Financial Investments.

European, U.S. and Asian holdings represented 16, 71 and 13 percent respectively of the total value of Financial Investments.

8 percent of the total value of the Financial Investments was represented by publicly listed companies.

Investments in EQT

EQT is a differentiated global investment organization with a 25-year history of investing in, and developing and owning, companies and has a demonstrated track-record of attractive, consistent investment performance across multiple geographies, sectors and strategies. Investor was one of the founders of EQT in 1994 and has committed capital to the vast majority of its funds. Read more at www.eqtgroup.com

Highlights during the quarter

• The reported value change of Investor's investments in EQT was 3 percent.
• Net cash flow to Investor amounted to SEK 0.3bn.

Performance

Contribution to net asset value (adjusted and reported) amounted to SEK 12,536m during the nine-month period 2020 (17,967), of which SEK 1,645m during the third quarter 2020 (14,556).

The reported value change of Investor's investments in EQT was 34 percent during the nine-month-period 2020, of which 33 percent in constant currency. During third quarter, the value change amounted to 3 percent, of which 3 percent in constant currency.

Net cash flow to Investor amounted to SEK 344m during the third quarter.

Investments in EQT AB

The value increase of Investor's holding in EQT AB amounted to SEK 1,054m, corresponding to a total shareholder return of 4 percent, during the third quarter.

Dividends received amounted to SEK 192m during the nine-month period, of which SEK 0m during the third quarter.

Investments in EQT funds

Following the IPO of EQT AB in September 2019, Investor reports the value change on its EQT fund investments with a one-quarter lag. Consequently, the information related to Investor's investments in EQT funds in this report is presented as of June 30, 2020.

The reported value change of Investor's investments in EQT funds amounted to 3 percent during the quarter, of which 3 percent in constant currency.

Investor's total outstanding commitments to EQT funds amounted to SEK 17.7bn as of September 30, 2020 (11.3).

Change in adjusted net asset value, EQT

SEK m	Q3 2020	YTD 2020	YTD 2019
Net asset value, beginning of period	48,843	37,248	20,828
Contribution to net asset value Drawdowns (investments, management fees and management	1,645	12,536	17,967
cost) Proceeds to Investor (divestitures,	968	4,253	6,752
fee surplus, carry and dividend)	-1,313	-3,893	-9,020
Net asset value, end of period	50,143	50,143	36,527

Investor's investments in EQT, September 30, 20201)

			Investor
	Fund size	EUR m Share (%)	Outstanding commitment SEK m	Reported value SEK m
Fully invested funds2)	25,820		2,229	8,749
EQT VIII	10,750	5	1,734	4,386
EQT Infrastructure IV	9,100	3	1,154	1,694
EQT Credit Opportunities III	1,272	10	545	784
EQT Ventures3)	461	11	138	603
EQT Ventures II	619	3	142	44
EQT Midmarket Asia III	630	27	765	965
EQT Midmarket US	616	30	200	1,167
EQT Midmarket Europe	1,616	9	689	1,131
EQT Real Estate I	373	18	319	376
EQT Real Estate II	1,000	3	267	50
EQT new funds			9,487	0
Total fund investments	52,256		17,669	19,948

EQT AB	18.1/18.34)	30,195
Total investments in EQT		50,143
	1) Following the IPO of EQT AB in September 2019, Investor's investments in EQT

funds are reported with a one-quarter lag.

2) EQT V, EQT VI, EQT VII, EQT Expansion Capital II, EQT Greater China II, EQT Infrastructure I, II and III, EQT Credit Fund II, EQT Mid Market. 3) Fund commitment excluding the EQT Ventures Co-Investment Schemes and the

EQT Ventures Mentor Funds. 4) Capital and votes respectively.

Investor's investments in EQT, key figures overview

	Q3	Q2	Q1	FY	Q4	Q3	Q2	Q1	FY	Q4	Q3
SEK m	2020	2020	2020	2019	2019	2019	2019	2019	2018	2018	2018
Reported value	50,143	48,843	40,603	37,248	37,248	36,527	24,114	21,562	20,828	20,828	18,377
Reported value
change, %	3	16	11	103	9	60	9	7	30	14	-4
Value change,
constant currency, %	3	19	8	101	11	59	8	6	25	14	-2
Drawdowns from
Investor	968	1,906	1,378	7,266	514	2,911	2,130	1,711	4,023	1,464	1,076
Proceeds to Investor	1,313	280	2,301	12,227	3,207	5,054	1,514	2,451	4,228	1,522	1,414
Net cash flow to
Investor	344	-1,626	923	4,961	2,694	2,143	-615	740	205	58	338

Investor Group

Net debt

Net debt totaled SEK 22,659m on September 30, 2020 (11,962). Debt financing of the subsidiaries within Patricia Industries is arranged without guarantees from Investor and hence not included in Investor's net debt. Pending dividends from investments and approved but not yet paid dividend to shareholders are not included in Investor's net debt either.

Net debt, September 30, 2020

SEK m	Consolidated balance sheet	Deductions related to Patricia Industries	Investor's net debt
Other financial investments	1,698	-170	1,528
Cash, bank and short term investments	21,750	-8,883	12,867
Receivables included in net debt	2,701	-	2,701
Interest bearing debt	-78,534	38,890	-39,644
Provision for pensions	-1,116	1,004	-111
Total	-53,500	30,842	-22,659

Investor's gross cash amounted to SEK 14,395m as of September 30, 2020 (24,894). The short-term investments are invested conservatively, taking into account the riskadjusted return profile. Investor's gross debt, excluding pension liabilities, amounted to SEK 36,943m as of September 30, 2020 (36,743).

The average maturity of Investor AB's debt portfolio was 10.3 years on September 30, 2020 (11.1), excluding the debt of Mölnlycke, Laborie, Permobil, BraunAbility, Grand Group, Vectura, Sarnova and Piab.

Investor is rated AA- (Stable Outlook) by S&P Global and Aa3 (Stable Outlook) by Moody's.

Debt maturity profile, September 30, 2020

Net financial items, YTD 2020

SEK m	Group - Net financial items	Deductions related to Patricia Industries	Investor's net financial items
Interest income	15	-6	8
Interest expenses	-1,572	826	-745
Results from revaluation of
loans, swaps and short term investments	127	-54	73
Foreign exchange result	-359	248	-111
Other	-878	790	-88
Total	-2,667	1,805	-862

Share capital

Investor's share capital amounted to SEK 4,795m on September 30, 2020 (4,795).

Share structure

Class of share	Number of shares	Number of votes	% of capital	% of votes
A 1 vote	311,690,844	311,690,844	40.6	87.2
B 1/10 vote	455,484,186	45,548,418	59.4	12.8
Total	767,175,030	357,239,262	100.0	100.0

On September 30, 2020, Investor owned a total of 1,622,805 of its own shares (1,847,630).

Other

Acquisitions (business combinations)

Acquisition of Advanced Instruments

On September 28, 2020, Patricia Industries, a part of Investor AB, signed an agreement with Windjammer Capital to acquire US company Advanced Instruments, the leading global provider of osmolality instrumentation and consumables for the clinical, biopharmaceutical, and food & beverage markets. The enterprise value amounts to USD 780m. For the 12-month period ending June 30, 2020, sales amounted to USD 72m and the adjusted EBITDA margin was approximately 45 percent. Patricia Industries plans to inject approximately USD 620m in equity for majority ownership of the company. The remainder of the acquisition will be financed by external debt and equity participation by Advanced Instruments' management, board and other key individuals. The acquisition is subject to approval by relevant competition authorities. Closing is expected during the fourth quarter 2020.

Laborie's acquisition of Clinical Innovations

In February, 2020, Laborie completed the acquisition of Clinical Innovations, a leading provider of single-use, products for hospital labor & delivery and neonatal intensive care unit departments. The consideration amounted to SEK 5,355m. In the preliminary purchase price allocation, goodwill amounted to SEK 2,964m. The goodwill recognized for the acquisition corresponds to the complementary strengths of the companies. The goodwill recognized is not expected to be deductible for income tax purposes. Intangible assets in the acquisition consists mainly of Proprietary technology.

Transaction related costs amounted to SEK 55m and derive from external legal fees and due diligence expenses. These costs have been included in the line item Administrative, research and development and other operating cost in the Group's consolidated income statement.

For the period from the acquisition date until September 30, 2020, Clinical Innovations contributed net sales of SEK 416m and profit/loss of SEK 18m to the Group's result. If the acquisition had occurred on January 1, 2020, management estimates that consolidated net sales for the Group would have increased by SEK 116m and consolidated profit/loss for the period would have decreased by SEK 6m.

Piab's acquisition of TAWI

In January, 2020, Piab completed the acquisition of TAWI Group, a leading manufacturer of ergonomic handling solutions. The consideration amounted to SEK 1,009m.

In the preliminary purchase price allocation, goodwill amounted to SEK 527m. The goodwill recognized for the acquisition corresponds to the complementary strengths of the companies. The goodwill recognized is not expected to be deductible for income tax purposes. Intangible assets in the acquisition consists mainly of Customer contracts.

Transaction related costs amounted to SEK 6m and derive from external legal fees and due diligence expenses. These costs have been included in the line item Administrative, research and development and other operating cost in the Group's consolidated income statement.

For the period from the acquisition date until September 30, 2020, TAWI Group contributed net sales of SEK 216m and profit/loss of SEK 28m to the Group's result.

Other acquisitions

During the period, BraunAbility and Permobil made a total of two acquisitions. The aggregate purchase price amounts to SEK 90m and goodwill amounts to SEK 80m. For the period from the acquisition dates until September 30, 2020, the acquired entities contributed net sales of SEK 47m and profit/loss of SEK -4m to the Group's result.

	Clinical
SEK m	Innovations	TAWI	Others	Total
Intangible assets	2,758	417	1	3,175
Property, plant and equipment	63	26	7	96
Other financial investments	-	11	-	11
Inventories	71	63	14	148
Trade receivables	134	78	4	216
Other current receivables	53	9	1	63
Cash and cash equivalents	72	52	3	128
Long-term interest bearing liabilities	-70	-29	-1	-100
Deferred tax liabilities	-499	-100	-	-600
Other liabilities	-191	-44	-19	-254
Net identifiable assets and liabilities	2,391	482	11	2,883
Consolidated goodwill	2,964	527	80	3,571
Consideration	5,355	1,009	90	6,454

Pledged assets and contingent liabilities

Total pledged assets amount to SEK 17.9bn (14.4), of which SEK 14.1bn (10.7) refers to pledged assets in the subsidiaries BraunAbility, Laborie and Sarnova, related to outstanding loans corresponding to SEK 1.7bn, SEK 3.8bn and SEK 2.6bn. The increase in pledged assets mainly relates to increased assets in Laborie.

During the nine-month period contingent liabilities have decreased from SEK 2.3bn to SEK 1.8bn. The change is mainly related to a decrease in a tax-related contingent liability.

Basis of preparation for the Interim Management Statement

This Interim Management Statement has in all material aspects been prepared in accordance with NASDAQ Stockholm's guidelines for preparing interim management statements. The accounting policies that have been applied for the consolidated income statement and consolidated balance sheet, are in agreement with the accounting policies used in the preparation of the company's most recent annual report.

Alternative Performance Measures

Investor applies the ESMA Guidelines on Alternative Performance Measures (APMs). An APM is a financial measure of historical or future financial performance, financial position, or cash flows, other than a financial measure defined or specified in the applicable financial reporting framework. For Investor's consolidated accounts, this framework typically means IFRS.

Definitions of all APMs used are found in the Annual Report 2019 and on www.investorab.com/investorsmedia/investor-in-figures/definitions.

Reconciliations to the financial statements for the APMs that are not directly identifiable from the financial statements and considered significant to specify, are disclosed on page 25. Reconciliations of APMs for individual subsidiaries or business areas are not disclosed, since the purpose of these are to give deeper financial information without being directly linked to the financial information for the Group, that is presented according to the applicable financial reporting framework.

Roundings

Due to rounding, numbers presented throughout this Interim Management Statement may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

Financial calendar

Nov. 13, 2020	Capital Markets Day
Jan. 21, 2021	Year-End Report 2020
Apr. 20, 2021	Interim Management Statement January-March 2021
Jul. 15, 2021	Interim Report January-June 2021
Oct. 18, 2021	Interim Management Statement

January-September 2021

For more information

Helena Saxon Chief Financial Officer +46 8 614 2000 helena.saxon@investorab.com

Viveka Hirdman-Ryrberg Head of Corporate Communication and Sustainability +46 70 550 3500 viveka.hirdman-ryrberg@investorab.com

Magnus Dalhammar Head of Investor Relations +46 73 524 2130 magnus.dalhammar@investorab.com

Address

Investor AB (publ) (CIN 556013-8298) SE-103 32 Stockholm, Sweden Visiting address: Arsenalsgatan 8C Phone: +46 8 614 2000 www.investorab.com

Ticker codes

INVEB SS in Bloomberg INVEb.ST in Reuters INVE B in NASDAQ OMX

Information about Investor is also available on LinkedIn.

This information is information that Investor AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08:15 CET on October 19, 2020.

This Interim Management Statement and additional information is available on www.investorab.com

This Interim Management Statement has not been subject to review by the company's auditors

Consolidated Income Statement, in summary

SEK m	YTD 2020	YTD 2019	Q3 2020	Q3 2019
Dividends	5,654	8,535	746	791
Other operating income	-	0	-	0
Changes in value	38,917	59,493	25,608	19,437
Net sales	28,117	32,245	9,923	10,952
Cost of goods and services sold	-15,377	-18,854	-5,505	-6,321
Sales and marketing cost	-4,334	-4,580	-1,331	-1,562
Administrative, research and development and other operating cost	-4,983	-6,030	-1,586	-1,472
Management cost	-367	-363	-114	-113
Share of results of associates	282	372	100	186
Operating profit/loss	47,909	70,819	27,839	21,898
Net financial items	-2,667	-2,541	-774	-1,030
Profit/loss before tax	45,242	68,278	27,065	20,868
Income taxes	-166	-749	105	-225
Profit/loss for the period	45,076	67,529	27,170	20,643
Attributable to:
Owners of the Parent Company	45,137	67,502	27,186	20,615
Non-controlling interest	-61	27	-16	27
Profit/loss for the period	45,076	67,529	27,170	20,643
Basic earnings per share, SEK	58.97	88.22	35.51	26.94
Diluted earnings per share, SEK	58.93	88.16	35.49	26.92

Consolidated Statement of Comprehensive Income, in summary

SEK m	YTD 2020	YTD 2019	Q3 2020	Q3 2019
Profit/loss for the period	45,076	67,529	27,170	20,643
Other comprehensive income for the period, including tax
Items that will not be recycled to profit/loss for the period
Re-measurements of defined benefit plans	12	-125	4	-125
Items that may be recycled to profit/loss for the period
Cash flow hedges	-131	-43	-25	-30
Hedging costs	24	59	-42	-10
Foreign currency translation adjustment	-551	3,468	-557	1,674
Share of other comprehensive income of associates	4	-12	-32	-66
Total other comprehensive income for the period	-642	3,347	-652	1,443
Total comprehensive income for the period	44,435	70,876	26,518	22,086
Attributable to:
Owners of the Parent Company	44,497	70,843	26,536	22,055
Non-controlling interest	-62	33	-18	30
Total comprehensive income for the period	44,435	70,876	26,518	22,086

Consolidated Balance Sheet, in summary
SEK m	9/30 2020	12/31 2019	9/30 2019
ASSETS
Goodwill	44,516	41,486	42,972
Other intangible assets	25,647	23,999	24,885
Property, plant and equipment	14,210	12,983	12,333
Shares and participations	432,154	390,945	361,788
Other financial investments	1,698	8,188	7,307
Long-term receivables included in net debt	2,701	2,653	3,217
Other long-term receivables	2,634	1,759	2,151
Total non-current assets	523,560	482,013	454,654
Inventories	6,189	4,915	5,181
Shares and participations in trading operation	283	371	343
Other current receivables	7,743	6,539	7,635
Cash, bank and short-term investments	21,750	23,618	19,761
Assets held for sale	-	-	4,717
Total current assets	35,965	35,443	37,637
TOTAL ASSETS	559,525	517,456	492,290
EQUITY AND LIABILITIES
Equity	458,544	420,923	388,611
Long-term interest bearing liabilities	77,677	74,306	76,955
Provisions for pensions and similar obligations	1,116	1,114	1,079
Other long-term provisions and liabilities	11,325	10,847	10,814
Total non-current liabilities	90,118	86,268	88,848
Current interest bearing liabilities	858	994	1,291
Other short-term provisions and liabilities	10,006	9,272	11,506
Liabilities directly associated with assets held for sale	-	-	2,034
Total current liabilities	10,863	10,266	14,831
TOTAL EQUITY AND LIABILITIES	559,525	517,456	492,290

Consolidated Statement of Changes in Equity, in summary

SEK m	YTD 2020	2019	YTD 2019
Opening balance 1/1	420,923	327,690	327,690
Adjustment for changed accounting policies	-	-25	-25
Opening balance 1/1 adjusted for changed accounting policies	420,923	327,665	327,665
Profit for the period	45,076	101,242	67,529
Other comprehensive income for the period	-642	1,919	3,347
Total comprehensive income for the period	44,435	103,161	70,876
Dividend to shareholders	-6,889	-9,948	-9,947
Changes in non-controlling interest	23	-13	-13
Effect of long-term share-based remuneration	53	58	30
Closing balance	458,544	420,923	388,611
Attributable to:
Owners of the Parent Company	458,345	420,681	388,355
Non-controlling interest	199	242	256
Total equity	458,544	420,923	388,611

Consolidated Cash Flow, in summary
SEK m	YTD 2020	YTD 2019
Operating activities
Dividends received	5,984	9,015
Cash receipts	26,104	32,339
Cash payments	-22,763	-27,092
Cash flows from operating activities before net interest and income tax	9,325	14,262
Interest received/paid	-1,815	-1,563
Income tax paid	-1,169	-979
Cash flows from operating activities	6,342	11,720
Investing activities
Acquisitions	-7,684	-10,217
Divestments	4,970	11,030
Increase in long-term receivables	-306	-31
Decrease in long-term receivables	-	18
Acquisitions of subsidiaries, net effect on cash flow	-6,186	-1,064
Divestments of subsidiaries, net effect on cash flow	30	2,694
Increase in other financial investments	-4,411	-11,346
Decrease in other financial investments	10,966	7,042
Net change, short-term investments	-2,422	-1,667
Acquisitions of property, plant and equipment	-1,834	-1,420
Proceeds from sale of property, plant and equipment	136	103
Net cash used in investing activities	-6,740	-4,857
Financing activities
New share issue	65	39
Borrowings	7,345	11,892
Repayment of borrowings	-4,339	-7,941
Repurchases of own shares	-11	-49
Dividend paid	-6,889	-6,887
Net cash used in financing activities	-3,828	-2,945
Cash flows for the period	-4,227	3,918
Cash and cash equivalents at the beginning of the year	19,231	11,416
Exchange difference in cash	8	412
Cash and cash equivalents at the end of the period	15,012	15,746

Performance by Business Area Q3 2020

	Listed	Patricia	Investments in	Investor
SEK m Dividends	Companies 746	Industries -	EQT -	Groupwide 0	Total 746
Changes in value	23,699	323	1,567	18	25,608
Net sales	-	9,923	-	-	9,923
Cost of goods and services sold	-	-5,505	-	0	-5,505
Sales and marketing cost	-	-1,331	-	-	-1,331
Administrative, research and development and other operating cost	-	-1,580	-1	-5	-1,586
Management cost	-28	-64	-2	-20	-114
Share of results of associates	-	100	-	-	100
Operating profit/loss	24,418	1,865	1,564	-8	27,839
Net financial items	-	-358	-	-416	-774
Income tax	-	-232	-	337	105
Profit/loss for the period	24,418	1,275	1,564	-87	27,170
Non-controlling interest	-	16	-	0	16
Net profit/loss for the period attributable to the Parent Company	24,418	1,291	1,564	-87	27,186
Other effects on equity	-	-664	81	-46	-629
Contribution to net asset value	24,418	627	1,645	-133	26,557
Net asset value by business area 9/30 2020
Carrying amount	374,713	55,988	50,143	161	481,004
Investors net debt/-cash	-	14,267	-	-36,926	-22,659
Total net asset value including net debt/-cash	374,713	70,254	50,143	-36,765	458,345

Performance by Business Area Q3 2019

SEK m	Listed Companies	Patricia Industries	Investments in EQT	Investor Groupwide	Total
Dividends	791	-	0	-1	791
Other operating income	-	0	-	-	0
Changes in value	4,898	215	14,305	18	19,437
Net sales	-	10,952	-	-	10,952
Cost of goods and services sold	-	-6,321	-	0	-6,321
Sales and marketing cost	-	-1,562	-	-	-1,562
Administrative, research and development and other operating cost	-	-1,464	-2	-6	-1,472
Management cost	-27	-63	-2	-22	-113
Share of results of associates	-	186	-	-	186
Operating profit/loss	5,663	1,944	14,301	-9	21,898
Net financial items	-	-374	-	-656	-1,030
Income tax	-	-245	-	20	-225
Profit/loss for the period	5,663	1,325	14,301	-646	20,643
Non-controlling interest	-	-27	-	0	-27
Net profit/loss for the period attributable to the Parent Company	5,663	1,298	14,301	-646	20,615
Other effects on equity	-	1,079	255	122	1,456
Contribution to net asset value	5,663	2,377	14,556	-523	22,072
Net asset value by business area 9/30 2019
Carrying amount	315,676	58,344	36,527	-3,486	407,061
Investors net debt/-cash	-	14,403	-	-33,109	-18,706
Total net asset value including net debt/-cash	315,676	72,747	36,527	-36,595	388,355

Performance by Business Area YTD 2020

	Listed	Patricia	Investments in	Investor
SEK m	Companies	Industries	EQT	Groupwide	Total
Dividends	5,463	-	192	-1	5,654
Changes in value	26,262	485	12,163	7	38,917
Net sales	-	28,117	-	-	28,117
Cost of goods and services sold	-	-15,377	-	0	-15,377
Sales and marketing cost	-	-4,334	-	-	-4,334
Administrative, research and development and other operating cost	-	-4,966	-3	-15	-4,983
Management cost	-82	-200	-7	-79	-367
Share of results of associates	-	282	-	-	282
Operating profit/loss	31,643	4,009	12,344	-87	47,909
Net financial items	-	-1,805	-	-862	-2,667
Income tax	-	-540	-	374	-166
Profit/loss for the period	31,643	1,664	12,344	-575	45,076
Non-controlling interest	-	61	-	0	61
Net profit/loss for the period attributable to the Parent Company	31,643	1,725	12,344	-575	45,137
Dividend to shareholders	-	-	-	-6,889	-6,889
Other effects on equity	-	-601	192	-175	-583
Contribution to net asset value	31,643	1,124	12,536	-7,639	37,665
Net asset value by business area 9/30 2020
Carrying amount	374,713	55,988	50,143	161	481,004
Investors net debt/-cash	-	14,267	-	-36,926	-22,659
Total net asset value including net debt/-cash	374,713	70,254	50,143	-36,765	458,345

Performance by Business Area YTD 2019

SEK m	Listed Companies	Patricia Industries	Investments in EQT	Investor Groupwide	Total
Dividends	8,415	-	125	-5	8,535
Other operating income	-	0	-	0	0
Changes in value	41,515	899	17,076	3	59,493
Net sales	-	32,245	-	-	32,245
Cost of goods and services sold	-	-18,854	-	0	-18,854
Sales and marketing cost	-	-4,580	-	-	-4,580
Administrative, research and development and other operating cost	-	-6,006	-4	-19	-6,030
Management cost	-79	-197	-6	-80	-363
Share of results of associates	-	372	-	-	372
Operating profit/loss	49,851	3,879	17,190	-101	70,819
Net financial items	-	-953	-	-1,587	-2,541
Income tax	-	-756	-	7	-749
Profit/loss for the period	49,851	2,170	17,190	-1,682	67,529
Non-controlling interest	-	-27	-	0	-27
Net profit/loss for the period attributable to the Parent Company	49,851	2,143	17,190	-1,682	67,502
Dividend to shareholders	-	-	-	-9,947	-9,947
Other effects on equity	-	2,247	777	268	3,292
Contribution to net asset value	49,851	4,390	17,967	-11,361	60,847
Net asset value by business area 9/30 2019
Carrying amount	315,676	58,344	36,527	-3,486	407,061
Investors net debt/-cash	-	14,403	-	-33,109	-18,706
Total net asset value including net debt/-cash	315,676	72,747	36,527	-36,595	388,355

Financial instruments

The numbers below are based on the same accounting and valuation policies as used in the preparation of the company's most recent annual report. For information regarding financial instruments in level 2 and level 3, see Note 32, Financial Instruments, in Investor's Annual Report 2019.

Valuation techniques, level 3
Group 9/30 2020	Fair value, SEK m	Valuation technique	Input	Range
Shares and participations	22,782	Last round of financing	n/a	n/a
		Comparable companies	EBITDA multiples	n/a
		Comparable companies	Sales multiples	1.4 – 4.3
		Comparable transactions Sales multiples		0.9 – 3.6
		NAV	n/a	n/a
Other financial investments	68	Discounted cash flow	Market interest rate	n/a
Long-term and current receivables	4,146	Discounted cash flow	Market interest rate	n/a
Long-term interest bearing liabilities	62	Discounted cash flow	Market interest rate	n/a
Other provisions and liabilities	4,660	Discounted cash flow	n/a	n/a

All valuations in level 3 are based on assumptions and judgments that management considers to be reasonable based on the circumstances prevailing at the time. Changes in assumptions may result in adjustments to reported values and the actual outcome may differ from the estimates and judgments that were made.

The unlisted part of Financial Investments' portfolio companies, corresponds to 92 percent of the portfolio value. Part of the unlisted portfolio is valued based on comparable companies, and the value is dependent on the level of the multiples. The multiple ranges provided in the note show the minimum and maximum value of the actual multiples applied in these valuations. A 10 percent change of the multiples would have an effect on the Financial Investments portfolio value of approximately SEK 100m. For the derivatives, a parallel shift of the interest rate curve by one percentage point would affect the value by approximately SEK 1,000m.

Financial assets and liabilities by level

The table below indicates how fair value is measured for the financial instruments recognized at fair value in the Balance Sheet. The financial instruments are presented in three categories, depending on how the fair value is measured:

Level 1: According to quoted prices in active markets for identical instruments Level 2: According to directly or indirectly observable inputs that are not included in level 1 Level 3: According to inputs that are unobservable in the market

Financial instruments - fair value

Group 9/30 2020,					Total carrying
SEK m	Level 1	Level 2	Level 3	Other1)	amount
Financial assets
Shares and participations	403,012	2,205	22,782	4,155	432,154
Other financial investments	1,530	-	68	100	1,698
Long-term receivables included in net debt	-	188	2,513		2,701
Other long-term receivables			1,633	1,000	2,634
Shares and participations in trading operation	283	-	-	-	283
Other current receivables	0	17	-	7,726	7,743
Cash, bank and short-term investments	12,867	-	-	8,884	21,750
Total	417,693	2,411	26,996	21,864	468,963
Financial liabilities
Long-term interest bearing liabilities	-	320	62	77,295	77,6772)
Other long-term provisions and liabilities	-	-	4,433	6,893	11,325
Short-term interest bearing liabilities	-	-		858	858
Other short-term provisions and liabilities	203	94	228	9,481	10,006
Total	203	414	4,722	94,526	99,865

1) To enable reconciliation with balance sheet items, financial instruments not valued at fair value as well as other assets and liabilities that are included within balance sheet items have been included within Other.

2) The Group's loans are valued at amortized cost. Fair value on long-term loans amounts to SEK 83,762m.

Changes in financial assets and liabilities in Level 3

Group 9/30 2020, SEK m	Shares and participations	Other financial investments	Long-term receivables included in net debt	Other current receivables	Long-term interest bearing liabilities	Other long term provisions and liabilities	Other current liabilities
Opening balance at the beginning of the	22,347	71	3,531	10	56	3,936	215
year Total gain or losses in profit or loss statement
in line Changes in value	1,222	-1	239	-	-	-77	-
in line Net financial items	-	-	91	-	6	802	-67
in line Cost of goods and services sold	-	18	-	-	-	-	-
Reported in other comprehensive income in line Foreign currency translation
adjustment	89	-2	3	-	-	-49	3
Acquisitions	3,860	5	282	-	-	6	-
Divestments	-4,737	-21	-	-10	-	-1	-
Issues	-	-	-	-	-	31	-
Settlements	-	-	-	-	-	-153	-
Reclassification						-76	76
Transfer in to Level 3	-	-	-	-	-	14	-
Transfer out of Level 3	-	-3	-	-	-	-	-
Carrying amount at end of the period	22,782	68	4,146	-	62	4,433	228
Total unrealized gains/losses for the period included in profit/loss for financial instruments held at the end of the period
Changes in value	-1,137	-	-	-	-	1,864	-
Net financial items	-	-	91	-	-6	-	-
Total	-1,137	-	91	-	-6	1,864	-

Revenue from contracts with customers

			Field of operation
Group 9/30 2020,	Healthcare	Healthcare			Gripping and moving
SEK m	equipment	services	Hotel	Real estate	solutions	Total
Geographical market
Sweden	599	124	208	129	59	1,118
Scandinavia, excl. Sweden	1,014	2	-	-	36	1,052
Europe, excl. Scandinavia	7,247	-	-	-	455	7,702
U.S.	14,916	22	-	-	308	15,246
North America, excl. U.S.	462	-	-	-	45	506
South America	211	-	-	-	33	244
Africa	370	-	-	-	1	371
Australia	688	-	-	-	6	694
Asia	938	97	-	-	149	1,184
Total	26,445	245	208	129	1,091	28,118
Category
Sales of products	26,092	-	-	-	1,091	27,184
Sales of services	305	245	208	-	-	758
Revenues from leasing	44	-	-	125	-	169
Other income	4	-	-	3	-	7
Total	26,445	245	208	129	1,091	28,118
Sales channels
Through distributors	14,727	-	145	-	499	15,372
Directly to customers	11,718	245	62	129	592	12,746
Total	26,445	245	208	129	1,091	28,118
Timing of revenue recognition
Goods and services transferred
at a point of time	26,263	223	-	-	1,082	27,568
Goods and services transferred
over time	183	22	208	129	10	550
Total	26,445	245	208	129	1,091	28,118

Reconciliations of significant Alternative Performance Measures

In the financial statements issued by Investor, Alternative Performance Measures (APMs) are disclosed, which complete measures that are defined or specified in the applicable financial reporting framework, such as revenue, profit or loss or earnings per share.

APMs are disclosed when they complement performance measures defined by IFRS. The basis for disclosed APMs are that they are used by management to evaluate the financial performance and in so believed to give analysts and other stakeholders valuable information.

Investor AB discloses the definitions of all APMs used on www.investorab.com/investors-media/investor-in-figures/definitions and in the Annual Report 2019. Below reconciliations of significant APMs to the most directly reconcilable line item, subtotal or total presented in the financial statements of the corresponding period are disclosed.

Gross cash

Gross cash or Investor's cash and readily available placements are defined as the sum of cash and cash equivalents, short-term investments and interest-bearing current and long-term receivables. Deductions are made for items related to subsidiaries within Patricia Industries.

Group 9/30 2020, SEK m	Consolidated balance sheet	Deductions related to Patricia Industries	Investor's gross cash	Group 12/31 2019, SEK m	Consolidated balance sheet	Deductions related to Patricia Industries	Investor's gross cash
Other financial				Other financial
investments	1,698	-170	1,528	investments	8,188	-181	8,007
Cash, bank and short				Cash, bank and short
term investments	21,750	-8,883	12,867	term investments	23,618	-6,730	16,888
Gross cash	23,448	-9,053	14,395	Gross cash	31,806	-6,912	24,894

Gross debt

Gross debt is defined as interest-bearing current and long-term liabilities, including pension liabilities, less derivatives with positive value related to the loans. Deductions are made for items related to subsidiaries within Patricia Industries.

Group 9/30 2020, SEK m	Consolidated balance sheet	Deductions related to Patricia Industries	Investor's gross debt	Group 12/31 2019, SEK m	Consolidated balance sheet	Deductions related to Patricia Industries	Investor's gross debt
Receivables included in net debt	2,701	-	2,701	Receivables included in net debt	2,653	-	2,653
Loans	-78,534	38,890	-39,644	Loans	-75,300	35,904	-39,396
Provision for pensions	-1,116	1,004	-111	Provision for pensions	-1,114	1,001	-113
Gross debt	-76,949	39,895	-37,054	Gross debt	-73,761	36,905	-36,856

Group 12/31 2019,

Net debt

Gross debt less gross cash at Balance Sheet date.

Group 9/30 2020,

SEK m		SEK m
Investor's gross cash	-14,395	Investor's gross cash	-24,894
Investor's gross debt	37,054	Investor's gross debt	36,856
Investor's net debt	22,659	Investor's net debt	11,962

Total assets

The net of all assets and liabilities not included in net debt.

Group 9/30 2020, SEK m	Consolidated balance sheet	Deductions related to non controlling interest	Investor's net asset value	Group 12/31 2019, SEK m	Consolidated balance sheet	Deductions related to non controlling interest	Investor's net asset value
Equity	458,544	-199	458,345	Equity	420,923	-242	420,681
Investor's net debt			22,659	Investor's net debt			11,962
Total assets			481,004	Total assets			432,643

Net debt ratio (leverage)

Net debt ratio or leverage is defined as Net debt/Net cash as a percentage of total assets.

	Investor's net			Investor's net
Group 9/30 2020, SEK m	asset value	Net debt ratio	Group 12/31 2019, SEK m	asset value	Net debt ratio
Investor's net debt	22,659 =		Investor's net debt	11,962 =
Total assets	481,004	4.7%	Total assets	432,643	2.8%

Reported net asset value, SEK per share

Equity attributable to shareholders of the Parent Company in relation to the number of shares outstanding at the Balance Sheet date.

Group 9/30 2020, SEK m	Investor's net asset value	Net asset value, SEK per share	Group 12/31 2019, SEK m	Investor's net asset value	Net asset value, SEK per share
Investor's reported net asset value	458,345		Investor's reported net asset value	420,681
Number of shares, excluding own shares	765,552,225	= 599	Number of shares, excluding own shares	= 765,327,400	550

Adjusted net asset value, SEK per share

Total assets, including estimated market values for Patricia Industries' major subsidiaries and partner-owned investments, less net debt in relation to the number of shares outstanding at the Balance Sheet date.

Group 9/30 2020, SEK m	Investor's net asset value	Net asset value, SEK per share	Group 12/31 2019, SEK m	Investor's net asset value	Net asset value, SEK per share
Investor's adjusted net asset value	537,358		Investor's adjusted net asset value	485,019
Number of shares, excluding own shares	765,552,225	= 702	Number of shares, excluding own shares	765,327,400	= 634

Patricia Industries, key figures overview1)

	Q3 2020	Q2 2020	Q1 2020	FY 2019	Q4 2019	Q3 2019	Q2 2019	Q1 2019	FY 2018	Q4 2018	Q3 2018
Mölnlycke (EUR m)
Sales	479	358	401	1,542	402	380	386	374	1,452	392	351
Sales growth	26	-7	7	6	3	8	8	7	1	7	2
Organic growth, constant currency, %	29	-7	7	4	1	7	5	4	3	6	2
EBITDA	144	103	115	451	114	115	114	107	418	109	99
EBITDA, %	30.0	28.8	28.8	29.2	28.3	30.4	29.6	28.7	28.8	27.9	28.3
EBITA2)	129	89	99	391	99	100	100	92	372	99	83
EBITA, %	26.9	24.7	24.6	25.3	24.5	26.3	25.8	24.7	25.6	25.2	23.7
Operating cash flow	70	105	66	382	122	115	87	58	374	133	93
Net debt	1,326	1,375	1,449	1,471	1,471	1,333	1,402	1,296	1,193	1,193	1,211
Employees Permobil (SEK m)	7,860	8,110	7,855	7,790	7,790	7,810	7,965	7,850	7,895	7,895	7,795
Sales	941	912	1,070	4,446	1,214	1,141	1,086	1,005	4,162	1,120	1,062
Sales growth	-17	-16	6	7	8	7	2	10	14	7	24
Organic growth,	-13	-17	3	1	4	3	-3	0	1	-2	1
constant currency, %
EBITDA EBITDA, %	220 23.4	165 18.2	215 20.1	924 20.8	232 19.1	265 23.2	229 21	198 19.7	780 18.8	257 22.9	192 18.1
EBITA2)	176	119	168	726	180	216	179	151	634	220	156
EBITA, %	18.7	13.1	15.7	16.3	14.8	18.9	16.5	15	15.2	19.7	14.7
Operating cash flow	187	203	248	776	122	235	223	196	649	233	196
Net debt	3,017	3,286	3,709	3,549	3,549	3,277	3,265	3,262	3,088	3,088	2,621
Employees	1,560	1,600	1,650	1,625	1,625	1,610	1,580	1,575	1,565	1,565	1,590
Laborie (USD m)
Sales	62	43	55	205	56	50	50	48	181	51	50
Sales growth, % Organic growth,	24	-14	15	13	11	-1	8	46	35	43	56
constant currency, %	-13	-45	-4	4	8	-2	1	7	7	6	15
EBITDA	18	7	-3	56	16	17	13	10	22	14	13
EBITDA, %	28.4	17.3	-5.1	27.3	28.2	33.4	26.4	21.2	12.4	27.1	26
EBITA2)	16	6	-4	51	15	15	12	9	19	13	12
EBITA, %	25.6	13.7	-7.1	25.1	26.4	31.1	23.1	19.4	10.6	25.4	24.3
Operating cash flow Net debt	6 388	4 379	-5 376	24 288	11 288	6 291	8 296	-1 295	-20 278	2 278	1 272
Employees	860	820	820	580	580	625	650	645	580	580	640
Sarnova (USD m)
Sales	171	165	189	647	155	163	166	162	597	150	144
Sales growth, %	5	-1	17	8	3	14	12	5	8	5	6
Organic growth, constant currency, %	5	-2	14	4	-2	8	8	2	7	5	6
EBITDA	15	21	22	82	17	27	19	19	69	17	16
EBITDA, %	8.5	12.9	11.8	12.6	10.9	16.4	11.6	11.5	11.6	11.5	11.1
EBITA2)	13	19	20	73	15	25	17	17	64	16	15
EBITA, %	7.3	11.6	10.8	11.3	9.4	15	10.4	10.2	10.7	10.6	10.2
Operating cash flow	35	5	15	86	33	28	16	10	49	7	15
Net debt	239	266	267	287	287	310	322	332	307	307	305
Employees	670	670	655	645	645	645	650	645	620	620	605
Piab (SEK m) Sales	349	342	399	1,267	320	320	315	312	1,255	335	312
Sales growth, %	9	9	28	1	-4	3	2	4	22	14	28
Organic growth,	-10	-16	-2	-4	-9	-1	-3	-2	9	5	6
constant currency, %
EBITDA	102	94	100	379	76	107	92	104	354	101	93
EBITDA, % EBITA2)	29.1 82	27.5 82	25.1 89	29.9 341	23.7 67	33.3 96	29.2 84	33.4 94	28.2 338	30.0 96	29.7 89
EBITA, %	23.4	23.9	22.2	26.9	20.8	30.0	26.7	30.2	26.9	28.8	28.4
Operating cash flow	82	102	96	325	83	86	83	73	216	78	22
Net debt	1,767	1,839	2,047	987	987	1,076	1,046	1,105	1,064	1,064	1,132
Employees	630	660	665	515	515	490	485	470	465	465	475
BraunAbility (USD m)
Sales	152	92	173	734	191	193	190	161	646	174	167
Sales growth, % Organic growth,	-21	-52	7	14	10	15	13	23	22	29	9
constant currency, %	-22	-53	5	5	5	6	3	5	15	17	3
EBITDA	17	1	14	70	15	21	20	14	45	8	11
EBITDA, %	11.2	1.4	7.9	9.6	7.9	10.9	10.7	8.5	7.0	4.8	6.8
EBITA2)	13	-2	10	57	12	18	17	10	40	7	10
EBITA, %	8.8	-2.6	5.8	7.7	6.2	9.1	8.9	6.4	6.2	3.8	6.0
Operating cash flow Net debt	2 216	-7 216	-5 208	72 193	29 193	24 190	22 210	-4 225	55 195	15 195	17 50
Employees	1,600	1,655	1,735	1,700	1,700	1,705	1,700	1,670	1,685	1,685	1,575

INVESTOR Q3 2020 – 26

Vectura (SEK m)
Sales	77	68	62	273	72	75	71	54	233	70	64
Sales growth, %	3	-4	15	17	3	18	29	23	12	32	14
EBITDA	50	43	30	173	38	52	47	35	142	37	46
EBITDA, %	65.3	63.1	48.6	63.3	53	69.5	66.2	64.5	60.8	52.2	72.3
EBITA adjusted2)	14	11	7	74	1	31	26	16	58	10	28
EBITA, %	17.9	16.6	11.2	27.2	1.2	41.6	36	30.4	24.7	14.7	43.4
Operating cash flow	-25	-740	-111	-597	-100	-145	-135	-216	-298	-103	-10
Net debt	3,900	3,551	2,791	2,662	2,662	2,827	2,672	2,392	2,166	2,166	2,013
Real estate,	8,577			7,282					5,911
market value Employees	29	26	26	22	22	21	21	21	22	22	21
Grand Group (SEK m)
Sales	63	44	101	680	189	189	182	119	603	164	173
Sales growth, %	-67	-76	-15	13	15	9	12	16	-7	-3	-7
Organic growth,
constant currency, %	-67	-77	-17	7	8	3	5	13	-2	-1	3
EBITDA	-4	-24	-3	142	46	47	41	9	34	11	22
EBITDA, %	-6.1	-53.5	-2.9	20.8	24.1	24.7	22.3	7.2	5.7	6.5	12.6
EBITA	-35	-55	-35	11	13	14	7	-22	-5	0	12
EBITA, %	-55.7	-125.8	-34.9	1.7	6.6	7.5	3.6	-18.4	-0.8	0.2	7
Operating cash flow	-44	-49	-35	1	-6	18	19	-31	-42	-33	0
Net debt	876	847	913	893	893	898	930	964	4	4	-28
Employees	220	245	480	380	380	375	375	335	380	380	345
Three Scandinavia
Sales, SEK m	2,568	2,620	2,608	10,705	3,008	2,646	2,586	2,465	10,728	2,602	2,744
Sweden, SEK m	1,645	1,649	1,645	6,826	1,889	1,663	1,675	1,599	7,004	1,606	1,779
Denmark, DKK m	666	678	673	2,736	789	684	641	622	2,707	719	691
EBITDA, SEK m	1,026	960	1,025	3,919	1,031	1,011	928	948	1,899	-613	852
Sweden, SEK m	729	684	696	2,662	676	684	653	648	1,025	-804	603
Denmark, DKK m	214	193	230	887	250	228	194	216	634	137	178
EBITDA, %	39.9	36.6	39.3	36.6	34.3	38.2	35.9	38.5	17.7	-23.6	31
Sweden	44.3	41.5	42.3	39	35.8	41.2	39	40.5	14.6	-50	33.9
Denmark	32.1	28.4	34.2	32.4	31.7	33.3	30.3	34.7	23.4	19.1	25.8
Net debt, SEK m	6,398	6,950	6,683	6,934	6,934	6,593	7,392	6,960	3,253	3,253	3,193
Employees Financial Investments	1,760	1,755	1,755	1,810	1,810	1,840	1,870	1,890	1,975	1,975	1,955
(SEK m)
Net asset value, beginning of period	3,207	3,949	4,310	7,277	6,452	7,351	7,714	7,277	7,164	7,959	8,029
Investments	2	25	23	283	27	22	173	61	266	53	119
Divestments/ distributions	-149	-741	-179	-3,652	-932	-1,517	-2,037	-41	-765	-411	-139
Exit proceeds pend. settlement	-	-	-	-	-791	-	1,667	-	-	-	-
Changes in value	110	-27	-205	402	-446	597	-166	418	611	-324	-49
Net asset value, end of period	3,169	3,207	3,949	4,310	4,310	6,452	7,351	7,714	7,277	7,277	7,959

1) For information regarding Alternative Performance Measures in the table, see page 16. Definitions can be found on Investor's website.

2) EBITA is defined as operating profit before acquisition-related amortizations.

Valuation methodology
Listed Companies	Share price (bid) for the class of shares held by Investor, with the exception of Saab, Electrolux and Electrolux Professional for which the most actively traded share class is used. Ownership calculated in accordance with the disclosure of regulations of Sweden's Financial Instruments Trading Act (LHF). ABB, AstraZeneca, Nasdaq and Wärtsilä in accordance with Swiss, British, U.S. and Finnish regulations. Includes market value of derivatives related to investments if applicable.
Patricia Industries
Subsidiaries	Reported value based on the acquisition method. As supplementary information, subsidiaries are also presented at estimated market values, mainly based on valuation multiples for relevant listed peers and indices. Other methodologies may also be used, for example relating to real estate assets. New investments valued at invested amount during the first 18 months following the acquisition.
Partner-owned investments	Reported value based on the equity method. As supplementary information, partner-owned investments are also presented at estimated market values, mainly based on valuation multiples for relevant listed peers and indices.
Financial Investments	Unlisted holdings at multiple or third-party valuation, listed shares at share price (bid).
Investments in EQT	Unlisted holdings at multiple or third-party valuation, listed shares at share price (bid).

Patricia Industries, overview of estimated market values

Supplementary information	In addition to reported values, which are in accordance with IFRS, Investor provides estimated market values for the wholly-owned subsidiaries and partner-owned investments within Patricia Industries in order to facilitate the evaluation of Investor's net asset value. This supplementary, non-GAAP information also increases the consistency between the valuation of Listed Companies and our major wholly-owned subsidiaries and partner-owned Three Scandinavia.
Estimated market values	While the estimated market values might not necessarily reflect our view of the intrinsic values, they reflect how the stock market values similar companies.
Methodology	The estimated market values are mainly based on valuation multiples, typically Enterprise value (EV)/Last 12 months' operating profit, for relevant listed peers and indices. While we focus on EBITA when evaluating the performance of our companies, for valuation purposes, EBITDA multiples are more commonly available, and therefore often used. From the estimated EV, net debt is deducted, and the remaining equity value is multiplied with Patricia Industries' share of capital.
Adjustments	Operating profit is adjusted to reflect, for example, pro forma effects of completed add-on acquisitions and certain non-recurring items. An item is only viewed as non-recurring if it exceeds a certain amount set for each company, is unlikely to affect the company again, and does not result in any future benefit or cost. Acquisitions made less than 18 months ago are valued at the invested amount.

Investor in brief

Investor, founded by the Wallenberg family in 1916, is an engaged owner of high-quality, global companies. We have a long-term investment perspective. Through board representation, as well as industrial experience, our network and financial strength, we work continuously to support our companies to remain or become best-in-class. Our holdings include, among others, ABB, Atlas Copco, Ericsson, Mölnlycke and SEB.

Our purpose

We create value for people and society by building strong and sustainable businesses.

Engaged ownership

We are an engaged, long-term owner that actively supports the building and development of best-in-class companies. Through substantial ownership and board representation, we drive the initiatives that we believe will create the most value for each individual company. Ultimately, this creates value for our shareholders and thus society as a whole.

Investment philosophy

Our investment philosophy is "buy-to-build", and to develop our companies over time, as long as we see further value creation potential. Our goal is for our companies to maintain or achieve best-in-class positions, and for all of them to outperform peers and reach full potential.

Sustainability

We have a long tradition of being a responsible owner and company. We firmly believe that sustainability is a prerequisite for creating long-term value. Our three focus areas are Business Ethics & Governance, Climate & Resource Efficiency and Diversity & Inclusion.

Our operating priorities

• Grow net asset value

To achieve attractive net asset value growth, we own high-quality companies and are an engaged owner, supporting our companies to achieve profitable growth. We strive to allocate our capital wisely.

• Operate efficiently

We maintain cost discipline to remain efficient and in order to maximize our operating cash flow.

• Pay a steadily rising dividend

Our dividend policy is to distribute a large percentage of the dividends received from our listed core investments, as well as to make a distribution from other net assets corresponding to a yield in line with the equity market. The goal is to pay a steadily rising dividend.

Our financial targets

• Return requirement

Our long-term return requirement is the risk free interest rate plus an equity risk premium, in total 8-9 percent annually.

• Leverage policy

Our target leverage range is 5-10 percent (net debt/reported total assets) over a business cycle. While leverage can fluctuate above and below the target level, it should not exceed 25 percent for any longer period of time. Our leverage policy allows us to capture investment opportunities and to support our companies.