Investor AB

Quarterly Report • Apr 24, 2017

Interim Management Statement January-March 2017

Highlights during the first quarter

• As previously communicated, Investor now provides supplementary estimated market values for the major wholly-owned subsidiaries and partner-owned investments within Patricia Industries. Based on these estimated market values, the adjusted net asset value* amounted to SEK 372,547 m. (SEK 487 per share).
• Reported net asset value* amounted to SEK 330,197 m. (SEK 432 per share) on March 31, 2017, an increase of SEK 30,120 m. (SEK 39 per share) during the quarter, corresponding to a change of 10 percent.
• Listed Core Investments generated a total return* of 12 percent.
• Within Patricia Industries, reported sales growth for the major wholly-owned subsidiaries was 15 percent, of which 3 percent organically.
• The value change of Investor's investments in EQT was 5 percent in constant currency. Net cash flow from EQT amounted to SEK 704 m.

Financial information, first quarter 2017

• Reported net asset value growth, including dividend added back, amounted to 10 percent.
• Contribution to growth of reported net asset value: Listed Core Investments SEK 29,840 m. (-8,549), Patricia Industries SEK 16 m. (-620), and EQT SEK 663 m. (67).
• Leverage* (net debt/total assets) was 4.3 percent as of March 31, 2017 (5.3).
• Consolidated net sales for the period was SEK 8,407 m. (7,295). Consolidated profit/loss for the period, which includes unrealized change in value, was SEK 30,404 m. (SEK 39.78 basic earnings per share), compared to SEK -9,688 m. (SEK -12.71 basic earnings per share) for the same period 2016.

Overview annual average performance
		Total return
	NAV (%)**	Investor B (%)	SIXRX (%)
Q1 2017	10.0	10.8	6.5
1 year	29.6	36.0	20.9
5 years	17.8	25.1	14.8
10 years	9.2	12.0	7.5
20 years	9.3	11.4	9.7
**Incl. dividend added back
			3/31 2017
NAV, SEK per share*			432
Share price (B-share), SEK			377.20

* Financial measures that are not defined or specified in the applicable financial reporting framework. For more information, see page 16 and 23.

CEO statement

Dear fellow shareholders,

During the first quarter, our net asset value increased by 10 percent. The total shareholder return was 11 percent while the SIXRX Return Index advanced by 6 percent.

We have continued to see indications of higher economic activity in different parts of the world, improving the prospects for growth. During the same time, the stock market has performed strongly and valuation multiples have expanded. Going forward, it is not unlikely that we will see a battle between improved earnings and contracting multiples. As an engaged owner, we will continue to support our companies in their work to stay agile, focus on the customer, innovate for the future and improve cost competitiveness.

Listed Core Investments

Listed Core Investments generated a total return of 12 percent during the quarter. All eleven companies generated positive returns, of which eight were double-digit.

Activity within the companies remained high. In late March, Ericsson presented a focused business strategy in order to improve internal efficiency and profitability as well as revitalizing its technology and market leadership. We fully support this strategy as we believe that it is crucial for Ericsson to improve efficiency, while simultaneously identifying and investing in strategic areas in order to ensure long-term competitiveness and growth.

ABB announced the acquisition of B&R, strengthening its position within industrial automation, a key strategic area for the company. Atlas Copco continued its work in preparation for the proposed split of the group.

Patricia Industries

As previously announced, we now provide estimated market values of our wholly-owned subsidiaries and partner-owned investments within Patricia Industries. This supplementary information increases the consistency between the valuation of Listed Core Investments and our unlisted holdings. While these estimated market values might not necessarily reflect our view of the intrinsic values, they reflect how the stock market values similar companies. Based on these estimated market values, the aggregate value of Patricia Industries, excluding the cash position, amounts to SEK 97 bn., representing about a quarter of our adjusted asset value.

Mölnlycke reported organic growth of 5 percent in constant currency, driven by both Wound Care and Surgical. The growth in emerging markets continued to outpace Europe and the U.S. Profitability was slightly lower compared to last year, affected by reimbursement changes, higher raw materials prices and investments to support future growth.

Following strong growth in the year-ago quarter, Laborie grew 7 percent organically in constant currency, with strong underlying profitability.

Aleris grew by 2 percent organically in constant currency, driven by Healthcare in Norway and Care in Denmark. Profitability remained essentially flat.

Permobil reported 5 percent organic growth in constant currency, primarily driven by the European business. Growth in the corresponding quarter last year was strong. Profitability was slightly lower than last year, mainly due to higher costs related to the introduction of the new M3 powered wheelchair and expansion of the sales force.

BraunAbility reported a sales decline of 8 percent organically in constant currency, explained by lower sales within consumer Wheelchair Accessible Vehicles ahead of new product launches scheduled to begin during the latter part of the second quarter.

Both Vectura and the Grand Group grew strongly, with improved profitability compared to last year.

3 Scandinavia grew service revenue by 5 percent with improved profitability.

EQT

The value increase of our investments in EQT funds was 5 percent in constant currency, and the net cash flow to Investor amounted to SEK 0.7 bn.

Priorities going forward

Our overall operating priorities to grow net asset value, operate efficiently and paying a steadily rising dividend, remain firm. More specifically, per business area we aim to:

Listed Core Investments

• Have more of our listed core investments achieve best-in-class positions
• Gradually increase our ownership in selected listed core investments when we deem it attractive

Patricia Industries

• Find new platform companies in attractive industry niches, both in the Nordics and in North America
• Achieve profitable growth in the existing companies

EQT

Continue to invest in EQT funds

Overall, while our primary strategic ambition is to expand our portfolio of unlisted assets, we will of course stay pragmatic, trying to capture the opportunities, whether unlisted or listed, that we believe will create the most value over time.

Through successful execution of this strategy in a cost efficient way, we should be able to continue to pay a steadily rising dividend and to generate an attractive total shareholder return.

Johan Forssell

Net asset value overview

			Reported values				Adjusted values5)
	Number of	Ownership capital/votes1)	Share of total	Contribution to net asset	Value,	Value,	Value,	Value,
	shares	(%)	assets (%)	value	SEK m.2)	SEK m.2)	SEK m.	SEK m.
	3/31 2017	3/31 2017	3/31 2017	2017	3/31 2017	12/31 2016	3/31 2017	12/31 2016
Listed Core Investments3)
Atlas Copco	207 645 611	16.9/22.3	19	7 853	65 291	57 437	65 291	57 437
ABB	232 165 142	10.5/10.5	14	3 884	48 476	44 592	48 476	44 592
SEB	456 198 927	20.8/20.8	13	4 350	45 565	43 725	45 565	43 725
AstraZeneca	51 587 810	4.1/4.1	8	3 883	28 760	25 732	28 760	25 732
Wärtsilä	34 866 544	17.7/17.7	5	2 636	16 676	14 257	16 676	14 257
Sobi	107 594 165	39.6/39.8	4	2 346	13 826	11 480	13 826	11 480
Saab	32 778 098	30.0/39.5	4	1 206	12 387	11 181	12 387	11 181
Nasdaq	19 394 142	11.6/11.6	3	243	12 033	11 842	12 033	11 842
Electrolux	47 866 133	15.5/30.0	3	1 280	11 947	10 846	11 947	10 846
Ericsson	196 047 348	5.9/21.8	3	1 418	11 601	10 378	11 601	10 378
Husqvarna	97 052 157	16.8/32.8	2	762	7 645	6 883	7 645	6 883
Total Listed Core Investments			79	29 8404)	274 207	248 354	274 207	248 354
Patricia Industries
Subsidiaries
Mölnlycke		99/99	6	564	21 643	21 067	56 161	54 298
Laborie		97/97	1	-99	4 829	4 928	4 6576)	4 6576)
Aleris		100/100	1	40	3 981	3 940	5 233	4 686
Permobil		94/90	1	50	3 973	3 923	7 531	7 297
BraunAbility		95/95	1	-54	3 082	3 136	2 8206)	2 8206)
Vectura		100/100	1	-1	2 160	2 161	2 105	2 161
Grand Group		100/100	0	-12	169	181	640	648
			12	488	39 836	39 336	79 147	76 566
3 Scandinavia		40/40	2	131	5 575	5 446	8 613	8 144
Financial Investments			3	-546	9 219	10 024	9 219	10 024
Total Patricia Industries excl. cash			16	164)	54 630	54 806	96 979	94 734
Total Patricia Industries incl. cash					67 516	69 195	109 865	109 123
EQT			4	6634)	13 956	13 996	13 956	13 996
Other Assets and Liabilities			1	-3994)	2 3237)	-327	2 323	-327
Total Assets excl. cash
Patricia Industries			100		345 116	316 829	387 465	356 757
Gross debt*					-33 501	-33 461	-33 501	-33 461
Gross cash*					18 582	16 710	18 582	16 710
Of which Patricia Industries					12 887	14 389	12 887	14 389
Net debt					-14 918	-16 752	-14 918	-16 752
Net Asset Value				30 120	330 197	300 077	372 547	340 006
Net Asset Value per share					432	393	487	445

1) Calculated in accordance with the disclosure regulations of Sweden's Financial Instruments Trading Act (LHF). ABB, AstraZeneca, Nasdaq and Wärtsilä in accordance with Swiss, British, U.S. and Finnish regulations.

2) Includes market value of derivatives related to investments if applicable. The subsidiaries and the partner-owned investments within Patricia Industries are reported according to the acquisition method and equity method respectively.

3) Valued according to the class of share held by Investor, with the exception of Saab and Electrolux, for which the most actively traded class of share is used.

4) Including management costs, of which Listed Core Investments SEK 22 m., Patricia Industries SEK 57 m., EQT SEK 2 m. and Groupwide SEK 26 m.

5) As supplementary information, major wholly-owned subsidiaries and partner-owned investments within Patricia Industries valued at estimated market values.

6) Valued at invested amount as the portfolio company was acquired less than eighteen months ago.

7) Dividends from listed core investments of SEK 2,738 m. pending over the end of the quarter have been accounted for as receivables in Other Assets and Liabilities.

Valuation overview

Business area	Valuation methodology
Listed Core Investments	Share price (bid) for the class of shares held by Investor. In some cases, the most actively traded share class is used.
Patricia Industries
Subsidiaries	Reported value based on the acquisition method. The estimated market values are 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 are valued at invested amount during the first 18 months following the acquisition.
Partner-owned investments	Reported value based on the equity method. The estimated market values are mainly based on valuation mulitples for relevant listed peers and indices. New investments are valued at invested amount during the first 18 months following the acquisition.
Financial investments	Unlisted holdings at multiple or third-party valuation, listed shares at share price (bid).
EQT	Unlisted holdings at multiple or third-party valuation, listed shares at share price (bid).

Patricia Industries - valuation overview

In addition to reported values, which are in accordance with IFRS, Investor provides estimated market values of 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 information also increases the consistency between the valuation of Listed Core Investments and our major wholly-owned subsidiaries and 3 Scandinavia.

While the estimated market values might not necessarily reflect our view of the intrinsic values, they reflect how the stock market values similar companies.

The estimated market values are mainly based on valuation multiples, typically Enterprise Value (EV)/LTM* 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 by Patricia Industries' share of capital.

Operating profit is adjusted to reflect, for example, pro forma effects of closed add-on acquisitions and certain nonrecurring 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.

Investments made less than 18 months ago are valued at the invested amount.

*Last twelve months

	Estimated market value, Patricia Industries' ownership,
	3/31, 2017	Comments
Subsidiaries
Mölnlycke	56 161	Implied EV/reported LTM EBITDA 16.0x
Laborie	4 657	Valued at invested amount as the acquisition was made less than 18 months ago
Aleris	5 233	Significant adjustments to the reported operating profit due to acquisitions made during the last 12 months
Permobil	7 531	Implied EV/reported LTM EBITDA 15.2x
BraunAbility	2 820	Valued at invested amount as the acquisition was made less than 18 months ago
Vectura	2 105	Valuation mainly based on the estimated market value of the property portfolio
Grand Group	640	Implied EV/reported LTM EBITDA 10.8x
Partner-owned investments
3 Scandinavia	8 613	Implied EV/reported LTM EBITDA 7.1x
Financial Investments	9 219	Unlisted holdings at multiple or third-party valuation, listed shares at share price (bid)
Total	96 979

Patricia Industries – valuation overview

Overview

Net asset value

During the period, net asset value increased from SEK 300.1 bn. to SEK 330.2 bn. The change in net asset value, with dividend added back, was 10 percent (-4). The corresponding total return of the Stockholm Stock Exchange (SIXRX) was 6 percent.

For balance sheet items, figures in parentheses refer to year-end 2016 figures. For income statement items and cash flow items, the figures in parentheses refer to the same period last year.

Net debt

Net debt* totaled SEK 14,918 m. on March 31, 2017 (16,752), corresponding to leverage of 4.3 percent (5.3). Adjusted for dividends still to be received and paid out, leverage would have been 4.8 percent.

Investor's net debt

SEK m.	2017
Opening net debt	-16 752
Listed Core Investments
Dividends	1 271
Investments, net of proceeds	-1
Management cost	-22
Total	1 249
Patricia Industries
Proceeds	299
Investments	-41
Internal transfer to Investor	-1 605
Management cost	-57
Other1)	-99
Total	-1 502
EQT
Proceeds (divestitures, fee surplus and carry)	1 050
Draw-downs (investments and management fees)	-344
Management cost	-2
Total	704
Investor Groupwide
Internal transfer from Patricia Industries	1 605
Management cost	-26
Other2)	-196
Closing net debt	-14 918

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

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

Performance by business area in summary

Q1 2017	Listed Core	Patricia		Investor
SEK m.	Investments	Industries	EQT	Groupwide	Total
Dividends	4 009	1			4 009
Other operating income		7			7
Changes in value	25 853	-477	698	-5	26 068
Net sales		8 407			8 407
Management cost	-22	-57	-2	-26	-106
Other profit/loss items		-7 600	-1	-381	-7 981
Profit/loss for the period	29 840	281	695	-411	30 404
Non-controlling interest		3			3
Other effects on equity		-268	-31	12	-288
Contribution to net asset value	29 840	16	663	-399	30 120
Net asset value by business area 3/31 2017
Carrying amount	274 207	54 630	13 956	2 323	345 116
Investor's net debt/cash		12 887		-27 805	-14 918
Total net assets including net debt/cash	274 207	67 516	13 956	-25 482	330 197

Q1 2016	Listed Core	Patricia		Investor
SEK m.	Investments	Industries	EQT	Groupwide	Total
Dividends	3 652		1		3 653
Other operating income		12			12
Changes in value	-12 181	-1 368	-84	-2	-13 635
Net sales		7 295			7 295
Management cost	-20	-68	-2	-25	-115
Other profit/loss items		-6 467	-1	-430	-6 898
Profit/loss for the period	-8 549	-595	-86	-457	-9 688
Non-controlling interest		1			1
Other effects on equity		-26	154	39	167
Contribution to net asset value	-8 549	-620	67	-418	-9 519
Net asset value by business area 3/31 2016
Carrying amount	212 087	49 767	11 905	-675	273 085
Investor's net debt/cash		13 907		-24 710	-10 803
Total net assets including net debt/cash	212 087	63 674	11 905	-25 385	262 282

Listed Core Investments

Listed Core Investments contributed to the net asset value with SEK 29,840 m. during the first quarter (-8,549).

Read more at www.investorab.com under "Our Investments" >>

Contribution to net asset value, Listed Core Investments

SEK m.	Q1 2017	Q1 2016
Changes in value	25 853	-12 181
Dividends	4 009	3 652
Management cost	-22	-20
Totalt	29 840	-8 549

The combined total return amounted to 12 percent during the first quarter.

Dividends

Dividends received totaled SEK 4,009 m. during the first quarter (3,652), of which SEK 2,738 m. were pending over the end of the quarter and reported in Other Assets and Liabilities. In total, we expect to receive approximately SEK 8.3 bn. in dividends during 2017.

Listed Core Investments

Contribution to net asset value and total return

		Contribution to net
	Value, SEK m.	asset value, SEK m.	Total return, Investor1) (%)
Atlas Copco	65 291	7 853	13.7
ABB	48 476	3 884	8.7
SEB	45 565	4 350	9.9
AstraZeneca	28 760	3 883	15.1
Wärtsilä	16 676	2 636	18.5
Sobi	13 826	2 346	20.4
Saab	12 387	1 206	10.8
Nasdaq	12 033	243	2.1
Electrolux	11 947	1 280	11.8
Ericsson	11 601	1 418	13.7
Husqvarna	7 645	762	11.1
Total	274 207	29 861

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

Investments and divestments

First quarter

No investments or divestments were made during the quarter.

A provider of power and automation technologies for utility and industry customers	www.abb.com
A global, innovation-driven, integrated biopharmaceutical company	www.astrazeneca.com
A provider of compressors, vacuum and air treatment systems, construction and mining equipment, power tools and assembly systems	www.atlascopco.com
A provider of household appliances and appliances for professional use	www.electrolux.com
A provider of communication technologies and services	www.ericsson.com
A provider of outdoor power products, consumer watering products, cutting equipment and diamond tools	www.husqvarnagroup.com
A provider of trading, exchange technology, information and public company services	www.nasdaq.com
A provider of products, services and solutions for military defense and civil security	www.saabgroup.com
A financial services group with the main focus on the Nordic countries, Germany and the Baltics	www.sebgroup.com
A specialty healthcare company developing and delivering innovative therapies and services to treat rare diseases	www.sobi.com
A provider of complete lifecycle power solutions for the marine and energy markets	www.wartsila.com

Patricia Industries contributed to the net asset value with SEK 16 m. during the first quarter (-620).

Read more at www.patriciaindustries.com >>

Reported revenue growth for the major wholly-owned subsidiaries amounted to 15 percent, of which approximately 3 percent organically.

Investments, divestments and distributions

No major investments were made during the quarter. Divestments were made both in the Nordics and in the U.S., amounting to SEK 299 m. in total. No major distributions were received in the quarter. Patricia Industries transferred SEK 1,605 m. internally to Investor.

For information regarding Alternative Performance Measures related to Patricia Industries and its investments, see page 16. Definitions can be found on Investors website.

Patricia Industries, net cash

SEK m.	Q1 2017	Q1 2016
Beginning of period	14 389	14 616
Net cash flow	258	762
Internal transfer to Investor	-1 605	-1 259
Other1)	-156	-211
End of period	12 887	13 907

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

Patricia Industries, net asset value

SEK m.	Q1 2017	Q1 2016
Beginning of period	54 806	51 095
Investments	41	173
Divestments	-299	-809
Distributions	-	-128
Changes in value	82	-564
End of period	54 630	49 767
Total, incl. cash	67 516	63 674

Patricia Industries, contribution to net asset value

SEK m.	Q1 2017	Q1 2016
Changes in value	82	-564
Management cost	-57	-68
Other items	-9	12
Total	16	-620

Major subsidiaries, performance1)

Q1 2017
							Grand
SEK m.	Mölnlycke	Laborie	Aleris	Permobil	BraunAbility	Vectura	Group	Total
Income statement items
Sales	3 481	304	2 664	837	981	45	120	8 433
EBITDA	936	58	155	137	47	25	-7	1 350
EBITDA, %	27	19	6	16	5	55	-6	16
EBITA2)	850	54	91	105	38	0	-14	1 124
EBITA, %	24	18	3	13	4	1	-12	13
Cash flow items
EBITDA	936	58	155	137	47	25	-7	1 350
Change in working capital	-391	-3	-62	41	-18	30	-5	-409
Capital expenditures	-120	-9	-53	-49	-9	-95	-12	-347
Operating cash flow	425	46	41	128	20	-41	-25	595
Acquisitions/divestments	-45	-48	-5	-	-495	-	-	-593
Shareholder
contribution/distribution	-	-	-	-	-	-	-	-
Other	-210	-9	-62	-11	-14	1	1	-305
Increase (-)/decrease (+) in
net debt	171	-11	-27	117	-489	-40	-24	-302

1) This table presents the performance of the major subsidiaries within Patricia Industries. Smaller subsidiaries and internal eliminations not included.

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

Read more at www.molnlycke.com >>

A provider of advanced products for treatment and prevention of wounds and single-use surgical solutions

Activities during the quarter

• Organic growth amounted to 5 percent in constant currency. Both Wound Care and Surgical contributed to growth. The U.S. and Europe continued to grow, while Emerging Markets showed the highest growth. Within Surgical, growth continued to be driven by ProcedurePakTM trays and Gloves.
• The EBITA margin decreased somewhat, partly due to changes in reimbursement and increased raw materials prices. In addition, Mölnlycke continued to invest in sales and marketing, as well as product development and innovation to support future growth.
• In February, Mölnlycke issued a EUR 500 m. bond, maturing in 2025, with an annual fixed coupon of 1.9 percent.

Key figures, Mölnlycke

Income statement items, EUR m.	Q1 2017	Q1 2016	Last 12 months
Sales	366	345	1 450
Sales growth, %	6	7
Organic growth, constant
currency, %	5	7
EBITDA	98	98	429
EBITDA, %	27	28	30
EBITA	89	89	392
EBITA, %	24	26	27
Balance sheet items, EUR m.	3/31 2017	12/31 2016
Net debt	891	909
Cash flow items, EUR m.	Q1 2017	Q1 2016
EBITDA	98	98
Change in working capital	-41	-33
Capital expenditures	-13	-16
Operating cash flow	45	49
Acquisitions/divestments	-5	-45
Shareholder
contribution/distribution	-	-
Other1)	-22	-19
Increase (-)/decrease (+) in
net debt	18	-16
Key ratios			Last 12 months
Working capital/sales, %			12
Capital expenditures/sales, %			6
	3/31 2017	3/31 2016
Number of employees	7 475	7 555

1) Includes effects of exchange rate changes, interest and tax.

Read more at www.laborie.com >>

A leading provider of innovative capital equipment and consumables for the diagnosis and treatment of urologic and gastrointestinal (GI) disorders

Activities during the quarter

• Organic growth amounted to 7 percent in constant currency, driven by continued strong performance of both the urodynamics and GI diagnostics businesses.
• The EBITA margin was reduced by significant costs related to the refinancing subsequent to Patricia Industries' acquisition of Laborie. The underlying profitability remained strong.
• In March, Laborie acquired Andromeda, a Germany-based urodynamics products manufacturer with a highly complementary product portfolio which expands Laborie's commercial presence in Europe.
• Laborie continued to make significant investments in operations, regulatory and quality assurance functions as well as business development.

Key figures, Laborie1)

Income statement items, USD m.	Q1 2017	Q1 2016	Last 12 months
Sales	34	32	125
Sales growth, %	7	33
Organic growth, constant
currency, %	7	15
EBITDA	7	7	22
EBITDA, %	19	23	18
EBITA	6	6	20
EBITA, %	18	20	16
Balance sheet items, USD m.	3/31 2017	12/31 2016
Net debt	68	67
Cash flow items, USD m.	Q1 2017	Q1 2016
EBITDA	7	7
Change in working capital	0	0
Capital expenditures	-1	-8
Operating cash flow	5	-1
Acquisitions/divestments	-5	-
Shareholder
contribution/distribution	-	-
Other2)	-1	0
Increase (-)/decrease (+) in
net debt	-1	-1
			Last 12
Key ratios			months
Working capital/sales, %			11
Capital expenditures/sales, %			7
	3/31 2017	3/31 2016
Number of employees	435	395

1) Consolidated as of September 16, 2016. Historical pro forma figures presented for information purposes.

2) Includes effects of exchange rate changes, interest and tax.

Read more at www.aleris.se >>

A provider of healthcare and care services in Scandinavia

Activities during the quarter

• Organic growth amounted to 2 percent in constant currency, driven by Healthcare Norway and Care Denmark.
• The EBITA margin was largely unchanged compared to last year. The addition of Curato contributed positively to profitability, while low utilization within Care Norway had a negative effect on the margin.
• Aleris opened Riksten Plaza in Botkyrka, an elderly home in own operations. The second unit within the Aleris Park Concept opened in Arendal, Norway.
• In February, Alexander Wennergren-Helm assumed the position as CEO of Aleris Group.

Key figures, Aleris

Income statement items, SEK m.	Q1 2017	Q1 2016	Last 12 months
Sales	2 664	2 376	10 184
Sales growth, %	12	15
Organic growth, constant
currency, %	2	11
EBITDA	155	116	533
EBITDA, %	6	5	5
EBITA	91	71	308
EBITA, %	3	3	3
Balance sheet items, SEK m.	3/31 2017	12/31 2016
Net debt	2 611	2 584
Cash flow items, SEK m.	Q1 2017	Q1 2016
EBITDA	155	116
Change in working capital	-62	-17
Capital expenditures	-53	-43
Operating cash flow	41	55
Acquisitions/divestments	-5	-56
Shareholder
contribution/distribution	-	-
Other1)	-62	-92
Increase (-)/decrease (+) in net debt	-27	-93
Key ratios			Last 12 months
Working capital/sales, %			-2
Capital expenditures/sales, %			2
	3/31 2017	3/31 2016
Number of employees	8 915	8 205

1) Includes effects of exchange rate changes, interest and tax. During the first quarter 2017, foreign exchange rate-related effects from revaluation of net debt amounted to SEK 19 m. (-16).

Read more at www.permobil.com >>

A provider of advanced mobility and seating rehab solutions

Activities during the quarter

• Organic growth amounted to 5 percent in constant currency, primarily driven by Europe. All product lines contributed to growth.
• The EBITA margin decreased somewhat compared to last year, as Permobil continues to invest in expansion of the sales force and marketing. In addition, costs in the quarter were higher than normal due to product introductions.
• In March, Permobil introduced the new M3 mid-wheel drive power chair, with key features including improved driving performance and manoeuvrability, as well as enhanced reachability while seated.

Key figures, Permobil

Income statement items, SEK m.	Q1 2017	Q1 2016	Last 12 months
Sales	837	732	3 441
Sales growth, %	14	38
Organic growth, constant
currency, %	5	20
EBITDA	137	133	686
EBITDA, %	16	18	20
EBITA	105	101	556
EBITA, %	13	14	16
Balance sheet items, SEK m.	3/31 2017	12/31 2016
Net debt	2 384	2 501
Cash flow items, SEK m.	Q1 2017	Q1 2016
EBITDA	137	133
Change in working capital	41	82
Capital expenditures	-49	-36
Operating cash flow	128	179
Acquisitions/divestments	-	-37
Shareholder contribution/distribution	-	-
Other1)	-11	-1
Increase (-)/decrease (+) in net debt	117	141
Key ratios			Last 12 months
Working capital/sales, %			18
Capital expenditures/sales, %			3
	3/31 2017	3/31 2016
Number of employees	1 355	1 330

1) Includes effects of exchange rate changes, interest and tax. During the first quarter 2017, foreign exchange rate-related effects amounted to SEK 44 m. from revaluation of net debt (44).

Read more at www.braunability.com >>

A world-leading manufacturer of wheelchair accessible vehicles and wheelchair lifts

Activities during the quarter

• Organic growth was a negative 8 percent in constant currency. The commercial Wheelchair Accessible Vehicles (WAV) and lift business continued to perform well. However, the consumer WAV business faced headwinds as the market waits for the company's new products that are to be released starting late in the second quarter.
• The EBITA margin declined compared to the same quarter last year, mainly due to lower volumes and some acquisitionrelated costs.
• Plant operations remained solid, sustaining significant improvements in quality, productivity and safety metrics relative to the same period last year.
• The company's joint ventures in the EMEA and Brazil continued to be challenged by weak market demand.

Key figures, BraunAbility

			Last 12
Income statement items, USD m.	Q1 2017	Q1 2016	months
Sales	110	100	463
Sales growth, %	10	29
Organic growth, constant
currency, %	-8	29
EBITDA	5	8	38
EBITDA, %	5	8	8
EBITA	4	7	33
EBITA, %	4	7	7
Balance sheet items, USD m.	3/31 2017	12/31 2016
Net debt	115	59
Cash flow items, USD m.	Q1 2017	Q1 2016
EBITDA	5	8
Change in working capital	-2	-17
Capital expenditures	-1	-1
Operating cash flow	2	-11
Acquisitions/divestments	-56	-
Shareholder
contribution/distribution	-	-
Other1)	-2	0
Increase (-)/decrease (+) in
net debt	-55	-11
			Last 12
Key ratios			months
Working capital/sales, %			16
Capital expenditures/sales, %			1
	3/31 2017	3/31 2016
Number of employees	1 300	1 030

1) Includes effects of exchange rate changes, interest and tax.

Read more at www.vecturafastigheter.se >>

Develops and manages real estate, including Grand Hôtel and Aleris-related properties

Activities during the quarter

• Growth amounted to 30 percent, driven by revenue-based rental income from Grand Hôtel, the new Aleris facility in Botkyrka (from January 2017) and the addition of the Hamlet hospital in Denmark (from October 2016).
• Vectura is developing the Royal Office (www.royaloffice.se), adding approximately 2,500 square metres of office space on top of the Grand Hôtel Royal building, with expected completion early 2018.

Key figures, Vectura

Income statement items, SEK m.	Q1 2017	Q1 2016	Last 12 months
Sales	45	34	195
Sales growth, %	30	21
EBITDA	25	20	120
EBITDA, %	55	58	61
EBITA adjusted1)	6	2	44
EBITA adjusted, %	13	7	23
EBITA	0	-5	15
EBITA, %	1	-15	8
Balance sheet items, SEK m.	3/31 2017	12/31 2016
Net debt	1 496	1 456
Cash flow items, SEK m.	Q1 2017	Q1 2016
EBITDA	25	20
Change in working capital	30	11
Capital expenditures	-95	-64
Operating cash flow	-41	-33
Acquisitions/divestments	-	-
Shareholder
contribution/distribution	-	-
Other2)	1	3
Increase (-)/decrease (+) in net debt	-40	-30
	3/31 2017	3/31 2016
Number of employees	18	13

1) EBITA adjusted for depreciation of surplus values related to properties. 2) Includes interest and tax.

Read more at www.grandhotel.se and www.lydmar.com>>

The Grand Group offers Lodging, Food & Beverage as well as Conference & Banqueting, and consists of Scandinavia's leading hotels Grand Hôtel and Lydmar Hotel

Activities during the quarter

• Growth amounted to 13 percent. All segments contributed to growth, with Lodging and Conference & Banqueting at Grand Hôtel as the main drivers.
• The EBITA margin improved, driven by growth and good cost control.
• Grand Hôtel reopened 18 newly refurbished rooms, and Lydmar Hotel launched a newly refurbished signature suite.

Key figures, Grand Group

Income statement items, SEK m.	Q1 2017	Q1 2016	Last 12 months
Sales	120	105	649
Sales growth, %	13	2
EBITDA	-7	-10	53
EBITDA, %	-6	-9	8
EBITA	-14	-16	27
EBITA, %	-12	-15	4
Balance sheet items, SEK m.	3/31 2017	12/31 2016
Net debt	-65	-89
Cash flow items, SEK m.	Q1 2017	Q1 2016
EBITDA	-7	-10
Change in working capital	-5	-5
Capital expenditures	-12	-11
Operating cash flow	-25	-27
Acquisitions/divestments	-	-
Shareholder
contribution/distribution	-	-
Other1)	1	-2
Increase (-)/decrease (+) in net debt	-24	-29
Key ratios			Last 12 months
Working capital/sales, %			-8
Capital expenditures/sales, %			6
	3/31 2017	3/31 2016
Number of employees	330	310
1) Includes interest and tax.

Read more at www.tre.se >>

A provider of mobile voice and broadband services in Sweden and Denmark

Activities during the quarter

• The subscriber base decreased by 8,000 in the quarter. The offerings from Hallon and Oister continued to grow. Service revenue grew 5 percent compared to last year.
• EBITDA grew 10 percent, reflecting operating leverage and lower subscriber acquisition costs.
• 3 Scandinavia launched Voice over LTE (VoLTE) and Sweden continued the rollout of WiFi-Calling, thereby enabling cheap international roaming. 3 Scandinavia is still the only operator offering WiFi-calling technology.

Key figures, 3 Scandinavia

Income statement items	Q1 2017	Q1 2016	Last 12 months
Sales, SEK m.	2 811	3 133	11 158
Sweden, SEK m.	1 885	1 840	7 419
Denmark, DKK m.	724	1 043	2 923
Service revenue1) , SEK m.	1 683	1 610	6 718
Sweden, SEK m.	1 111	1 074	4 421
Denmark, DKK m.	448	430	1 793
EBITDA, SEK m.	825	752	3 135
Sweden, SEK m.	604	564	2 295
Denmark, DKK m.	172	151	654
EBITDA, %	29	24	28
Sweden	32	31	31
Denmark	24	14	22
Balance sheet items, SEK m.	3/31 2017	12/31 2016
Net debt	729	1 372
	3/31 2017	3/31 2016
Number of employees	2 105	2 085
			Last 12
Key ratios			months
Capital expenditures/sales, %			13
Other key figures	3/31 2017	3/31 2016
Subscribers	3 295 000	3 248 000
Sweden	2 043 000	2 048 000

1) Mobile service revenue excluding interconnect revenue.

Denmark 1 252 000 1 200 000 Postpaid/prepaid ratio 77/23 79/21

Financial Investments

Financial Investments consists 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. We are also evaluating if some holdings could become long-term investments.

Activities during the quarter

• Only smaller follow-on investments were made.
• Divestitures were made both in the Nordics and in the U.S., with total proceeds amounting to SEK 299 m.

Change in net asset value, Financial Investments

SEK m.	Q1 2017	Q1 2016
Net asset value, beginning of
period	10 024	12 850
Investments	41	173
Divestments/distributions	-299	-809
Changes in value	-546	-1 488
Net asset value, end of period	9 219	10 727

As of March 31, 2017, European, U.S. and Asian holdings represented 24, 49, and 27 percent of the total value of the Financial Investments.

42 percent of the net asset value of the Financial Investments is represented by investments in publicly listed companies.

Five largest Financial Investments, March 31, 2017

Company	Region	Business	Listed/ unlisted	Reported value. SEK m.
NS Focus	Asia	IT	Listed	2 483
Madrague	Europe	Financials	Unlisted	820
Spigit1)	U.S.	IT	Unlisted	522
Tobii	Europe	IT	Listed	370
Newron	Europe	Healthcare	Listed	328
Total				4 522

1) Spigit and Mindjet have merged.

The five largest investments represented 49 percent of the total value of the Financial Investments.

Patricia Industries – key figures overview1)

	Q1 2017	FY 2016	Q4 2016	Q3 2016	Q2 2016	Q1 2016	FY 2015	Q4 2015	Q3 2015	Q2 2015	Q1 2015	FY 2014
Mölnlycke (EUR m.)
Sales	366	1 429	372	350	361	345	1 353	357	339	335	321	1 213
EBITDA	98	428	111	109	110	98	374	95	100	90	89	349
EBITDA (%) EBITA2)	27	30	30	31	30	28	28	27	29 863)	27	28	29
EBITA, %	89 24	392 27	101 27	100 29	101 28	89 26	337 25	86 24	25	83 25	82 26	322 27
Net debt	891	909	909	712	807	871	855	855	527	606	628	643
Employees	7 475	7 505	7 505	7 485	7 560	7 555	7 500	7 500	7 360	7 540	7 515	7 425
Laborie4) (USD m.)
Sales	34	123	31	30	30	32	109	30	28	27	24
EBITDA	7	23	5	6	5	7	20	7	7	4	1
EBITDA (%) EBITA2)	19 6	19 20	14 4	20 5	18 5	23 6	18 18	23 6	27 7	15 4	6 1
EBITA, %	18	17	12	18	16	20	17	21	26	13	5
Net debt	68	67	67	-42	205	191	190	190	192	191	162
Employees	435	425	425	410	395	395	385	385	390	390	300
Aleris (SEK m.)
Sales	2 664	9 896	2 662	2 355	2 503	2 376	8 540	2 311	1 991	2 172	2 066	7 527
EBITDA	155	494	122	96	160	116	492	93	122	140	137	355
EBITDA (%)	6	5	5	4	6	5	6	4	6	6	7	5
EBITA2) EBITA, %	91 3	288 3	63 2	39 2	115 5	71 3	323 4	48 2	82 4	95 4	98 5	199 3
Net debt	2 611	2 584	2 584	2 739	1 402	1 508	1 415	1 415	900	902	986	969
Employees	8 915	8 690	8 690	8 585	8 430	8 205	7 805	7 805	7 300	7 305	6 960	6 645
Permobil (SEK m.)
Sales	837	3 335	939	844	820	732	2 931	862	815	723	531	2 053
EBITDA	137	682	206	176	167	133	547	189	171	125	62	426
EBITDA (%)	16	20	22	21	20	18	19	22	21	17	12	21
EBITA2) EBITA, %	105 13	552 17	172 18	144 17	135 16	101 14	427 15	146 17	143 18	97 13	41 8	351 17
Net debt	2 384	2 501	2 501	2 364	2 335	2 254	2 395	2 395	2 536	2 526	1 592	1 451
Employees	1 355	1 375	1 375	1 375	1 345	1 330	1 320	1 320	1 330	1 310	1 050	1 015
BraunAbility5) (USD m.)
Sales	110	454	116	123	114	100	399	101	107	113	77	391
EBITDA	5	40	9	12	12	8	30	2	11	11	6	34
EBITDA (%)	5	9	7	9	11	8	8	2	10	10	8	9
EBITA2)	4	36	8	10	12	7	27	1	10	10	6	31
EBITA, % Net debt	4 115	8 59	7 59	8 76	10 80	7 86	7 75	1 75	9 52	9 60	7 59	8 52
Employees	1 300	1 075	1 075	1 075	1 040	1 030	1 025	1 025	990	990	950	950
Vectura (SEK m.)
Sales	45	184	49	51	49	34	158	43	45	41	28	130
EBITDA	25	115	30	35	31	20	92	20	30	27	15	73
EBITDA (%)	55	62	60	68	62	58	58	47	67	66	54	56
EBITA2)	0	10	2	8	4	-5	-10	-6	4	1	-8	-23
EBITA, % Net debt	1 1 496	5 1 456	4 1 456	17 1 422	9 1 197	-15 1 135	-6 1 105	-14 1 105	9 1 388	2 1 389	-29 1 354	-18 1 363
Employees	18	16	16	17	15	13	13	13	9	8	7	7
Grand Group (SEK m.)
Sales	120	635	168	183	179	105	597	160	179	155	103	541
EBITDA	-7	51	10	26	24	-10	41	10	27	14	-11	30
EBITDA (%)	-6	8	6	14	14	-9	7	6	15	9	-10	6
EBITA2)	-14	24	2	20	18	-16	15	3	21	8	-17	5
EBITA, % Net debt	-12 -65	4 -89	1 -89	11 -126	10 -102	-15 -78	3 -106	2 -106	12 -99	5 -76	-17 -60	1 -85
Employees	330	360	360	360	350	310	360	360	355	340	310	350
3 Scandinavia
Sales	2 811	11 480	2 933	2 714	2 701	3 133	10 831	2 948	2 575	2 645	2 663	10 387
Sweden, SEK m.	1 885	7 374	1 915	1 816	1 804	1 840	7 238	1 951	1 764	1 799	1 724	6 633
Denmark, DKK m.	724	3 242	783	703	713	1 043	2 868	802	638	682	746	3 063
EBITDA	825	3 063	821	810	680	752	2 916	754	752	715	696	2 662
Sweden, SEK m.	604	2 255	580	591	520	564	2 149	539	566	532	512	1 868
Denmark, DKK m. EBITDA, %	172 29	633 27	185 28	171 30	126 25	151 24	612 27	173 26	146 29	147 27	146 26	649 26
Sweden	32	31	30	33	29	31	30	28	32	30	30	28
Denmark	24	20	24	24	18	14	21	22	23	22	20	21
Net debt, SEK m.	729	1 372	1 372	1 101	1 556	1 386	1 579	1 579	1 525	1 413	1 116	1 118
Employees	2 105	2 160	2 160	2 060	2 070	2 085	2 095	2 095	2 120	2 110	2 120	2 185
Financial Investments (SEK m.)
Net asset value, beginning of
period	10 024	12 850	10 293	10 717	10 727	12 850	11 714	11 897	14 843	14 606	11 714
Investments Divestments/distribution	41 -299	611 -2 368	155 -447	146 -546	137 -566	173 -809	923 -2 908	69 -368	201 -1 841	223 -662	430 -39
Changes in value	-546	-1 070	21	-23	419	-1 488	3 121	1 252	-1 306	676	2 501
Net asset value, end of period	9 219	10 024	10 024	10 293	10 717	10 727	12 850	12 850	11 897	14 843	14 606

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.

3) Including a EUR 5 m. write-down of capitalized R&D.

4) Consolidated as of September 16, 2016. Historical pro forma figures presented for information purposes. Previously announced EBITDA of USD 29 m. for fiscal year 2016 (ending March 2016) excluded non-recurring costs of USD 4 m., included in the above historical quarters. The adjusted EBITDA for fiscal year 2016 amounts to USD 38 m. as previously communicated.

5) Consolidated as of October 30, 2015. Historical pro forma figures presented for information purposes.

Our investments in EQT contributed to the net asset value with SEK 663 m. during the first quarter (67).

Read more at www.eqt.se >>

A private equity group with portfolio companies in Europe, Asia and the U.S.

Activities during the quarter

• Net cash flow from EQT amounted to SEK 704 m.
• In constant currency, the value change of Investor's investments in EQT was 5 percent. The reported value change was 5 percent.
• Investor's total outstanding commitments to EQT funds amounted to SEK 12.0 bn. as of March 31, 2017 (13.7).
• EQT V divested its remaining shares in Scandic Hotels Group and parts of its remaining holding in AcadeMedia.
• EQT Infrastructure entered into a definite agreement to acquire Lumos Network.
• EQT Infrastructure III closed at EUR 4.0 bn.
• EQT Mid Market invested in GPA Global.
• EQT Mid Market US acquired Dorner and Innovyze.

Change in net asset value, EQT

SEK m.	Q1 2017	Q1 2016
Net asset value, beginning of period	13 996	13 021
Contribution to net asset value (value change)	663	67
Draw-downs (investments, management fees and management cost)	345	313
Proceeds to Investor (divestitures, fee surplus and carry)	-1 050	-1 496
Net asset value, end of period	13 956	11 905

Investor's investments in EQT, March 31, 2017

	Fund size EUR m.	Investor's share (%)	Investor's remaining commitment SEK m.	Reported value SEK m.
Fully invested funds1)	17 561		1 216	10 713
EQT VII	6 817	5	2 141	1 305
EQT Infrastructure II	1 938	8	585	875
EQT Infrastructure III	4 000	5	1 967	0
EQT Credit Fund II	845	10	324	626
EQT Ventures2)	461	11	457	14
EQT Midmarket US	616	30	1 499	233
EQT new funds			3 827	142
EQT AB		19		48
Total	32 237		12 017	13 956

1) EQT III, EQT IV, EQT V, EQT VI, EQT Expansion Capital I and II, EQT Greater China II, EQT Infrastructure, EQT Credit Fund, EQT Opportunity, EQT Mid Market.

2) Fund commitment excluding the EQT Ventures Co-Investment Schemes and the EQT Ventures Mentor Funds.

Investor's investments in EQT, key figures overview

	Q1	FY	Q4	Q3	Q2	Q1	FY	Q4	Q3	Q2	Q1	FY
SEK m.	2017	2016	2016	2016	2016	2016	2015	2015	2015	2015	2015	2014
Reported value	13 956	13 996	13 996	13 300	13 272	11 905	13 021	13 021	12 623	13 599	13 991	13 522
Reported value change, %	5	15	4	2	9	1	30	10	-2	15	8	38
Value change, constant
currency, %	5	10	4	0	7	0	32	12	-4	16	8	30
Draw-downs from Investor	345	2 864	976	942	633	313	1 590	133	364	223	870	2 397
Proceeds to Investor	1 050	3 874	873	1 141	365	1 496	6 086	943	1 034	2 683	1 426	4 854
Net cash flow to Investor	704	1 010	-104	199	-268	1 183	4 496	810	670	2 460	556	2 457

Group

Net debt

Net debt totaled SEK 14,918 m. on March 31, 2017 (16,752). Debt financing of the subsidiaries within Patricia Industries is arranged on an independent, ring-fenced basis and hence not included in Investor's net debt. Within Patricia Industries, Investor guarantees SEK 0.7 bn. of

3 Scandinavia's external debt, but this is not included in Investor's net debt.

Net debt, 3/31 2017

SEK m.	Consolidated balance sheet	Deductions related to Patricia subsidiaries	Investor's net debt
Other financial investments	3 985	-91	3 8941)
Cash, bank and short-term investments	22 658	-7 970	14 6881)
Receivables included in net debt	2 199	-	2 199
Loans	-59 500	23 897	-35 603
Provision for pensions	-832	736	-96
Total	-31 490	16 572	-14 918

1) Included in cash and readily available placements.

Investor's gross cash amounted to SEK 18,582 m. as of March 31, 2017 (16,710). The short-term investments are invested conservatively, taking into account the risk-adjusted return profile. Gross debt, excluding pensions for Investor, amounted to SEK 33,405 m. as of March 31, 2017 (33,362).

The average maturity of Investor AB's debt portfolio was 9.8 years on March 31, 2017 (10.0), excluding the debt of Mölnlycke, Laborie, Aleris, Permobil, BraunAbility, Grand Group and Vectura.

Debt maturity profile, 3/31 2017

Net financial items, 3/31 2017

SEK m.	Group - Net financial items	Deductions related to Patricia subsidiaries	Investor's net financial items
Interest income	10	-4	6
Interest expenses	-369	126	-243
Results from revaluation of loans, swaps and short-term
investments	-100	-3	-103
Foreign exchange result	-65	67	2
Other	-26	9	-17
Total	-549	194	-355

The Investor share

The price of the A-share and B-share was SEK 374.20 and SEK 377.20 respectively on March 31, 2017, compared to SEK 336.80 and SEK 340.50 on December 31, 2016.

The total shareholder return amounted to 11 percent during the first quarter 2017 (-8).

The total market capitalization of Investor, adjusted for repurchased shares, was SEK 287,443 m. as of March 31, 2017 (259,119).

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 March 31, 2017, Investor owned a total of 2,651,624 of its own shares (2,793,387). The net decrease in holdings of own shares is attributable to purchase of own shares and transfer of shares and options within Investor's long-term variable remuneration program.

Other

Proposed dividend

The Board of Directors proposes a dividend to the shareholders of SEK 11.00 per share for fiscal year 2016 (10.00). The dividend level proposed is based on the stated dividend policy to declare dividends attributable to a high percentage of dividends received from Listed Core Investments, as well as to make a distribution from other net assets corresponding to a yield in line with the equity market. Investor AB's goal is also to pay a steadily rising dividend.

Annual General Meeting

Investor AB's Annual General Meeting will be held at 3:00 p.m. on Wednesday, May 3, 2017, at the City Conference Centre, Barnhusgatan 12-14, Stockholm. The registration commences at 1:30 p.m.

Notification of participation in the Annual General Meeting can be given starting March 29, 2017, until April 26, 2017. Notification can be given on Investor's website (www.investorab.com), or by phoning +46 8 611 2910. Additional information about Investor's Annual General Meeting is available on Investor's website.

Acquisitions (business combinations)

Acquisition of Laborie

The purchase price allocation has changed and goodwill and deferred tax liability have been reduced with SEK 400 m. due to a finalization of analysis of local tax consequenses as a result of the acquisition.

Other acquisitions

During the period BraunAbility and Laborie acquired three smaller entities. The aggregated purchase price amounts to SEK 320 m. and goodwill amounts to a total of SEK 283 m.

Pledged assets and contingent liabilities

Total pledged assets amounts to SEK 9.8 bn. of which SEK 7.2 bn. refers to pledged assets in the subsidiaries BraunAbility and Laborie, related to outstanding loans corresponding to SEK 1.1 bn. and SEK 1.1 bn.

No material changes in contingent liabilities during the period.

Alternative Performance Measures

Investor applies the ESMA Guidelines on Alternative Performance Measures (APM). 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 typically means IFRS. 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.

Definitions of all APMs used are found in the Annual Report 2016 and on www.investorab.com/investors-media/investorin-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 21. Reconciliation of APMs for individual subsidiaries or business areas are not disclosed, since the purpose with these are to give deeper financial information without being directly linked to the financial information for the Group that is presented according to applicable financial reporting framework.

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.

Roundings

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

Financial calendar

May 3, 2017 Annual General Meeting

July 19, 2017 Interim Report January-June 2017

Oct. 27, 2017 Interim Management Statement January-September 2017

Stockholm, April 24, 2017

Johan Forssell President and Chief Executive Officer

For more information:

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

Stefan Stern, Head of Corporate Relations, Sustainability and Communications: +46 8 614 2058, +46 70 636 7417 stefan.stern@investorab.com

Magnus Dalhammar, Head of Investor Relations: +46 8 614 2130, +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 Fax: + 46 8 614 2150 www.investorab.com

Ticker codes:

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

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 12:00 CET on April 24, 2017.

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.	1/1-3/31 2017	1/1-3/31 2016
Dividends	4 009	3 653
Other operating income	7	12
Changes in value	26 068	-13 635
Net sales	8 407	7 295
Cost of goods and services sold	-5 363	-4 719
Sales and marketing cost	-1 068	-877
Administrative, research and development and
other operating cost	-1 023	-768
Management cost	-106	-115
Share of results of associates	167	96
Operating profit/loss	31 098	-9 058
Net financial items	-549	-592
Profit/loss before tax	30 549	-9 650
Income taxes	-145	-38
Profit/loss for the period	30 404	-9 688
Attributable to:
Owners of the Parent Company	30 408	-9 687
Non-controlling interest	3	-1
Profit/loss for the period	30 404	-9 688
Basic earnings per share, SEK	39.78	-12.71
Diluted earnings per share, SEK	39.74	-12.71

Consolidated Statement of Comprehensive Income, in summary

SEK m.	1/1-3/31 2017	1/1-3/31 2016
Profit/loss for the period	30 404	-9 688
Other comprehensive income for the period, including tax
Items that will not be recycled to profit/loss for the period
Revaluation of property, plant and equipment	6	33
Remeasurements of defined benefit plans	12	-
Items that may be recycled to profit/loss for the period
Cash flow hedges	10	15
Foreign currency translation adjustment	-327	-20
Share of other comprehensive income of associates	-26	-32
Total other comprehensive income for the period	-326	-4
Total comprehensive income for the period	30 078	-9 692
Attributable to:
Owners of the Parent Company	30 075	-9 687
Non-controlling interest	3	-5
Total comprehensive income for the period	30 078	-9 692

Consolidated Balance Sheet, in summary

SEK m.	3/31 2017	12/31 2016	3/31 2016
ASSETS
Goodwill	34 550	34 852	29 524
Other intangible assets	16 192	16 423	12 773
Property, plant and equipment	8 439	8 345	6 675
Shares and participations	301 761	276 744	238 619
Other financial investments	3 985	3 709	6 717
Long-term receivables included in net debt	2 199	2 402	2 340
Other long-term receivables	2 805	2 924	3 640
Total non-current assets	369 932	345 399	300 288
Inventories	3 330	3 086	2 583
Shares and participations in trading operation	91	46	32
Short-term receivables included in net debt	-	-	-
Other current receivables	8 172	5 098	5 396
Cash, bank and short-term investments	22 658	16 344	17 791
Total current assets	34 251	24 574	25 802
TOTAL ASSETS	404 183	369 973	326 089
EQUITY AND LIABILITIES
Equity	330 266	300 141	262 457
Long-term interest bearing liabilities	57 874	53 313	50 851
Provisions for pensions and similar obligations	832	838	746
Other long-term provisions and liabilities	6 576	7 220	5 541
Total non-current liabilities	65 282	61 371	57 138
Current interest bearing liabilities	1 626	1 634	106
Other short-term provisions and liabilities	7 008	6 827	6 388
Total current liabilities	8 634	8 461	6 494
TOTAL EQUITY AND LIABILITIES	404 183	369 973	326 089

Consolidated Statement of Changes in Equity, in summary

SEK m.	1/1-3/31 2017	1/1-12/31 2016	1/1-3/31 2016
Opening balance	300 141	271 977	271 977
Profit for the period	30 404	33 665	-9 688
Other comprehensive income for the period	-326	1 880	-4
Total comprehensive income for the period	30 078	35 545	-9 692
Dividends paid	-	-7 635	-
Changes in non-controlling interest	9	37	-
Reclassification of non-controlling interest	-	-150	-
Effect of long-term share-based remuneration	38	367	172
Closing balance	330 266	300 141	262 457
Attributable to:
Owners of the Parent Company	330 197	300 077	262 282
Non-controlling interest	69	64	175
Total equity	330 266	300 141	262 457

Consolidated Cash Flow, in summary

SEK m.	1/1-3/31 2017	1/1-3/31 2016
Operating activities
Dividends received	1 272	3 653
Cash receipts	7 816	6 871
Cash payments	-7 032	-5 968
Cash flows from operating activities before net interest and income tax	2 056	4 556
Interest received/paid	-482	-379
Income tax paid	-160	-146
Cash flows from operating activities	1 414	4 031
Investing activities
Acquisitions	-395	-573
Divestments	1 376	2 331
Decrease in long-term receivables	-	128
Acquisitions of subsidiaries, net effect on cash flow	-370	-529
Increase in other financial investments	-2 362	-1 663
Decrease in other financial investments	2 100	1 607
Net change, short-term investments	2 088	-1 017
Acquisitions of property, plant and equipment	-370	-324
Proceeds from sale of property, plant and equipment	24	8
Net cash used in investing activities	2 090	-34
Financing activities
Borrowings	4 894	105
Repayment of borrowings	-86	-2 314
Net cash used in financing activities	4 808	-2 209
Cash flows for the period	8 312	1 788
Cash and cash equivalents at the beginning of the year	11 250	13 180
Exchange difference in cash	-18	-77
Cash and cash equivalents at the end of the period	19 544	14 891

Operating segment

PERFORMANCE BY BUSINESS AREA 1/1-3/31 2017

	Listed Core	Patricia		Investor
SEK m.	Investments	Industries	EQT	Groupwide	Total
Dividends	4 009	1	-	-	4 009
Other operating income1)	-	7	-	-	7
Changes in value	25 853	-477	698	-5	26 068
Net sales	-	8 407	-	-	8 407
Cost of goods and services sold	-	-5 363	-	-	-5 363
Sales and marketing cost	-	-1 068	-	-	-1 068
Administrative, research and development and
other operating cost	-	-1 020	-1	-2	-1 023
Management cost	-22	-57	-2	-26	-106
Share of results of associates	-	167	-	-	167
Operating profit/loss	29 840	596	695	-33	31 098
Net financial items	-	-194	-	-355	-549
Income tax	-	-121	-	-23	-145
Profit/loss for the period	29 840	281	695	-411	30 404
Non-controlling interest	-	3	-	-	3
Net profit/loss for the period attributable to
the Parent Company	29 840	284	695	-411	30 408
Other effects on equity	-	-268	-31	12	-288
Contribution to net asset value	29 840	16	663	-399	30 120
Net asset value by business area 3/31 2017
Carrying amount	274 207	54 630	13 956	2 323	345 116
Investors net debt/-cash	-	12 887	-	-27 805	-14 918
Total net asset value including net debt/-cash	274 207	67 516	13 956	-25 482	330 197

PERFORMANCE BY BUSINESS AREA 1/1-3/31 2016

SEK m.	Listed Core Investments	Patricia Industries	EQT	Investor Groupwide	Total
Dividends	3 652	-	1	-	3 653
Other operating income1)	-	12	-	-	12
Changes in value	-12 181	-1 368	-84	-2	-13 635
Net sales	-	7 295	-	-	7 295
Cost of goods and services sold	-	-4 719	-	-	-4 719
Sales and marketing cost	-	-877	-	-	-877
Administrative, research and development and
other operating cost	-	-765	-1	-2	-768
Management cost	-20	-68	-2	-25	-115
Share of results of associates	-	96	-	-	96
Operating profit/loss	-8 549	-394	-86	-29	-9 058
Net financial items	-	-180	-	-412	-592
Income tax	-	-22	-	-16	-38
Profit/loss for the period	-8 549	-595	-86	-457	-9 688
Non-controlling interest	-	1	-	-	1
Net profit/loss for the period attributable to
the Parent Company	-8 549	-594	-86	-457	-9 687
Other effects on equity	-	-26	154	39	167
Contribution to net asset value	-8 549	-620	67	-418	-9 519
Net asset value by business area 3/31 2016
Carrying amount	212 087	49 767	11 905	-675	273 085
Investors net debt/-cash	-	13 907	-	-24 710	-10 803
Total net asset value including net debt/-cash	212 087	63 674	11 905	-25 385	262 282

1) Includes interest on loans

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 29 in Investor's Annual Report 2016.

Valuation techniques, level 3

Group 3/31 2017	Fair value, SEK m.	Valuation technique	Input	Range
Shares and participations	19 375	Last round of financing	n.a.	n.a.
		Comparable companies	EBITDA multiples	n.a.
		Comparable companies	Sales multiples	1.5 – 3.6
		Comparable transactions	Sales multiples	0.4 – 5.7
		NAV	n.a.	n.a.
Long-term receivables included in net debt	1 825	Discounted cash flow	Market interest rate	n.a.
Long-term interest bearing liabilities	47	Discounted cash flow	Market interest rate	n.a.
Other long-term provisions and liabilities	1 617	Discounted cash flow		n.a.

All valuations in level 3 are based on assumptions and judgments that management consider 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 58 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 200 m. For the derivatives, a parallel shift of the interest rate curve by one percentage point would affect the value by approximately SEK 1,100 m.

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 3/31 2017, SEK m.	Level 1	Level 2	Level 3	Other1)	Total carrying amount
Financial assets
Shares and participations	275 798	2 573	19 375	4 016	301 761
Other financial investments	3 932			53	3 985
Long-term receivables included in net debt		374	1 825		2 199
Shares and participations in trading operation	91				91
Other current receivables		14		8 158	8 172
Cash, bank and short-term investments	22 658				22 658
Total	302 479	2 961	21 199	12 227	338 866
Financial liabilities
Long-term interest bearing liabilities		508	47	57 3202)	57 8743)
Other long-term provisions and liabilities			1 617	4 959	6 576
Short-term interest bearing liabilities		9		1 617	1 6264)
Other short-term provisions and liabilities	77	9		6 922	7 008
Total	77	526	1 663	70 818	73 085

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.

3) Fair value on long-term loans amounts to SEK 62,690 m.

4) Fair value on short-term loans amounts to SEK 1,631 m.

Changes in financial assets and liabilities in Level 3

	Shares and	Long-term receivables	Long-term interest	Other long-term provisions and
Group 3/31 2017, SEK m.	participations	included in net debt	bearing liabilities	liabilities
Opening balance	19 367	1 948	47	1 624
Total gain or losses in profit or loss statement
in line Changes in value	837
In line Net financial items		-123	0
Reported in other comprehensive income
in line Foreign currency translation adjustment	-100			-7
Acquisitions	372
Divestments	-1 101
Carrying amount at end of period	19 375	1 825	47	1 617
Total gains/losses for the period included in profit/loss for instruments held at the end of the period (unrealized results)
Changes in value	494
Net financial items		-123	0

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 2016. 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 3/31 2017, SEK m.	Consolidated balance sheet	Deductions related to Patricia subsidiaries	Investor's gross cash	Group 12/31 2016, SEK m.	Consolidated balance sheet	Deductions related to Patricia subsidiaries	Investor's gross cash
Other financial investments	3 985	-91	3 894	Other financial investments	3 709	-91	3 618
Cash, bank and short-term investments	22 658	-7 970	14 688	Cash, bank and short-term investments	16 344	-3 253	13 092
Gross cash	26 643	-8 061	18 582	Gross cash	20 054	-3 344	16 710

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 3/31 2017, SEK m.	Consolidated balance sheet	Deductions related to Patricia subsidiaries	Investor's gross debt	Group 12/31 2016, SEK m.	Consolidated balance sheet	Deductions related to Patricia subsidiaries	Investor's gross debt
Receivables included in net debt	2 199	-	2 199	Receivables included in net debt	2 402	-	2 402
Loans	-59 500	23 897	-35 603	Loans	-54 946	19 182	-35 764
Provision for pensions	-832	736	-96	Provision for pensions	-838	738	-99
Gross debt	-58 133	24 633	-33 501	Gross debt	-53 382	19 921	-33 461

Net debt

Gross debt less gross cash at Balance Sheet date.

Group 3/31 2017, SEK m.		Group 12/31 2016, SEK m.
Investor's gross cash	-18 582	Investor's gross cash	-16 710
Investor's gross debt	33 501	Investor's gross debt	33 461
Investor's net debt	14 918	Investor's net debt	16 752

Total assets

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

Group 3/31 2017, SEK m.	Consolidated balance sheet	Deductions related to non controlling interest	Investor's net asset value	Group 12/31 2016, SEK m.	Consolidated balance sheet	Deductions related to non controlling interest	Investor's net asset value
Equity	330 266	-69	330 197	Equity	300 141	-64	300 077
Investor's net debt			14 918	Investor's net debt			16 752
Total assets			345 116	Total assets			316 829

Net debt ratio (leverage)

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

Group 3/31 2017, SEK m.	Investor's net asset value	Net debt ratio	Group 12/31 2016, SEK m.	Investor's net asset value	Net debt ratio
Investor's net debt	14 918	= 4.3%	Investor's net debt	16 752	= 5.3%
Total assets	345 116		Total assets	316 829

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 3/31 2017, SEK m.	Investor's net asset value	Net asset value/SEK per share	Group 12/31 2016, SEK m.	Investor's net asset value	Net asset value/SEK per share
Investor's net asset value	330 197		Investor's net asset value	300 077
Number of shares, excluding own shares	764.523406	= 432	Number of shares, excluding own shares	764.381643	= 393
(millions)			(millions)