Investor AB

Quarterly Report • Oct 22, 2014

Interim Management Statement January-September 2014

Highlights during the third quarter

• Net asset value amounted to SEK 246,801 m. (SEK 324 per share) on September 30, 2014, an increase of SEK 14,300 m. (SEK 19 per share) during the quarter, corresponding to a change of 6 percent. Over the past 20 years, annual net asset value growth, with dividend added back, has been 14 percent.
• Investor acquired an additional 15.8 million shares in Wärtsilä, increasing its share of the capital and votes in the company from 8.8 percent to 16.8 percent. Investor is now the clearly largest shareholder in Wärtsilä.
• Mölnlycke Health Care made its first capital distribution to Investor, amounting to EUR 130 m.
• The divestiture of the majority of Lindorff was completed. The cash proceeds, received on October 6, amounted to SEK 6.8 bn.

Financial information

• Consolidated net profit for the period, which includes unrealized change in value, was SEK 37,693 m. (SEK 49.48 basic earnings per share), compared to SEK 30,989 m. (SEK 40.77 basic earnings per share) for the same period 2013.
• Core Investments contributed SEK 30,521 m. to net asset value for the period (25,942), of which the listed SEK 29,183 m. (25,114).
• Financial Investments contributed SEK 8,453 m. to net asset value for the period (6,442).
• Leverage (net debt/total assets) was 8.8 percent as of September 30, 2014 (9.7).
• Consolidated net sales for the period was SEK 15,420 m. compared to SEK 13,494 m. for the same period 2013.

Overview annual average performance		Total return
	NAV (%)*	Investor B (%)	SIXRX (%)
Q3 2014	6.1	1.8	-0.3
1 year	26.2	35.1	16.0
5 years	15.0	19.0	13.7
10 years	13.0	16.3	11.6
20 years	14.0	13.9	12.1
*Incl. dividend added back
			9/30 2014
NAV, SEK per share			324
Share price (B-share), SEK			255.20

President's comments

Our net asset value rose by 6 percent during the third quarter. The SIXRX index was flat while our total shareholder return was 2 percent.

Over the last few weeks, the capital markets have once again experienced a chilling wind. Where this wind will take us this time remains to be seen, but the macro and geopolitical pundits would surely like to provide guidance. In this environment, our beacon remains to be long-term owners of great companies.

Core Investments - Listed

During the quarter, Electrolux announced the acquisition of GE Appliances, strengthening its position in the U.S. We fully support the industrial logic behind this deal and intend to take our pro-rata share in the planned rights issue which is part of the financing. The transaction is subject to regulatory approval, which is expected to take months.

By acquiring an additional 8.0 percent in Wärtsilä, we have now become the lead shareholder in a well-managed enterprise at an attractive total price. Wärtsilä has strong aftermarket sales and a growing emerging markets exposure. Going forward, we see both organic and nonorganic growth opportunities. Wärtsilä participates in an industry we know well and we look forward to developing it further as a long-term owner.

Core Investments – Subsidiaries

With the management transition largely complete, Mölnlycke Health Care reported good growth and solid profitability. The logistics issues experienced during the second quarter have been largely resolved, with a small impact during the third quarter. Mölnlycke also made its first capital distribution, EUR 130 m. This is an important step in verifying the cash flow capacity of our assets. Following this distribution, Mölnlycke's balance sheet remains strong – debt is just 2.1x EBITDA - allowing for investments in attractive growth opportunities, both organic and through acquisitions.

Permobil performed well during the quarter, with good sales growth and strong profitability. Currency movements were favorable, but it was nevertheless a record quarter. The integration of the TiLite acquisition followed plan. Permobil also continued its tradition of investing in product development. The third quarter saw the launch of great new products in both the power and manual segments.

Aleris showed good growth and improved profitability during the quarter. We are systematically reviewing the various businesses, focusing on implementing actions to improve the quality of the operations. We intend to continue building Aleris, despite the uncertainty induced by the current minority government.

It is only by offering high quality that private providers can add value in the welfare sector. The proposals aimed at restricting profitability, made by the new Swedish government, is the wrong approach. Any company that wants to invest to develop its business needs to make a profit. Loss-making companies simply do not survive. However, while profit is a requirement, it cannot be the ultimate goal for a successful company. Profit is merely a confirmation that the company efficiently delivers its products and services. We argue that the quality of care should be at the center of the discussion.

The uncertainty induced by the government will likely hold back private investments in the sector and could even force some actors out – a bit paradoxically, as Sweden needs increased investments to meet the sharply rising demand from an aging population and the need for improved availability. In addition, we need to spur innovation and the

development of new working methods to improve quality and productivity. Historically, competition has been the best driver of innovation in all industries. Creating innovation through regulation simply does not work.

Few companies would be willing to invest with a long-term, say 10-20 years, perspective if the regulatory environment changes substantially from one election to another. Given this, the government's proposals to restrict profits in the welfare services sector sends a message, not only to the companies in that industry, but to all companies in all industries. Apparently, operating conditions can be changed significantly after an election. Such fundamental change makes the investment environment less stable and there is a risk of companies finding it less attractive to invest and create new jobs. At the end of the day, businesses generate the jobs in society. Creating a business-friendly environment benefits our economy.

Financial Investments

The value change on our holding in EQT was 2 percent in constant currency and we received net SEK 153 m.

Investor Growth Capital distributed SEK 337 m. during the quarter. The major part is explained by Investor acquiring the remaining holdings within IGC Europe. We decided to delay selling these holdings as we believe they can be worth substantially more tomorrow than today. IGC's value change in constant currency was -1 percent.

3 Scandinavia continued to grow market share and free cash flow. Service revenues grew driven by good new subscriber intake and increasing revenue per subscriber. The cash flow is primarily used to reduce debt. From an economic point of view, a reduction in guaranteed debt is equivalent to distribution - it creates leverage capacity at Investor that can be used for other investments. As we are preparing to refinance the debt package in 3, we will look at various options including either an extension of the current guaranteed debt package or a capital injection by the owners. As always, our focus is on doing what we believe is economically right.

Financial position

At the end of September, our gearing was 8.8 percent. Our debt structure is well diversified and the maturity profile long. In addition to our strong balance sheet, we have reduced total gearing in the "Investor system" as our companies operate with modest leverage. Together with the strong cash flow generation of our assets, now including our subsidiaries as well (yes, Mölnlycke distributed capital for the first time), this gives us a strong investment capacity without jeopardizing our ability to pay an attractive and steadily rising dividend. Actually, reinvesting in our business allows us to strengthen our long-term dividend growth.

Our focus remains solely on building the wealth of our longterm shareholders by investing in and building great enterprises, focused on delivering value to their customers. Tweaking the words of the great no. 42, Jackie Robinson: building a company is not a spectator sport.

Börje Ekholm

Net asset value overview

	Number of shares	Ownership capital/votes1) (%)	Share of total assets	Value, SEK/share	Value, SEK m.2)	Contribution to net asset value	Value, SEK m.2)
	9/30 2014	9/30 2014	9/30 2014 (%)	9/30 2014	9/30 2014	YTD 2014	12/31 2013
Core Investments
Listed3)
SEB	456 198 927	20.8/20.8	16	58	43 909	7 109	38 618
Atlas Copco	206 895 611	16.8/22.3	16	56	42 589	7 040	36 687
ABB	193 365 142	8.4/8.4	12	41	31 388	-434	31 738
AstraZeneca	51 587 810	4.1/4.1	10	35	26 877	8 084	19 753
Ericsson	175 047 348	5.3/21.5	6	20	15 470	2 766	13 229
Wärtsilä	33 066 5444)	16.8/16.8	4	14	10 731	-556	5 537
Electrolux	47 866 133	15.5/30.0	3	12	9 133	1 383	8 061
Sobi	107 594 165	39.7/39.8	3	11	8 290	1 162	7 128
Nasdaq	19 394 142	11.5/11.5	2	8	5 955	980	5 023
Saab	32 778 098	30.0/39.5	2	8	5 812	309	5 651
Husqvarna	97 052 157	16.8/31.1	2	6	4 947	1 340	3 749
			76	269	205 101	29 183	175 174
Subsidiaries
Mölnlycke Health Care		99/99	8	29	21 946	1 337	20 684
Aleris		100/100	1	5	3 855	8	3 830
Permobil		94/90	1	5	3 840	81	3 759
Grand Hôtel/Vectura		100/100	1	2	1 288	30	1 258
			11	41	30 929	1 456	29 531
			87	310	236 030	30 5215)	204 705
Financial Investments
EQT			5	18	13 490	3 013	11 615
Investor Growth Capital			4	15	11 697	1 708	10 793
Partner-owned investments
Lindorff					0	3 456	4 960
3 Scandinavia		40/40	1	4	3 003	360	2 643
Other Investments6)			2	5	4 032	-43	2 245
			12	42	32 222	5) 8 453	32 256
Other Assets and Liabilities			1	3	2 3507)	5,8) -7 590	1 5607)
Total Assets			100	355	270 602		238 521
Net debt			-9	-31	-23 801		-23 104
Net Asset Value			91	324	246 801	31 384	215 417

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.

Includes market value of derivatives related to investments if applicable. The subsidiaries within Core Investments and the partner-owned investments within Financial Investments are reported according to the acquisition method and equity method respectively.

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. Wärtsilä is valued based on the underlying value of shares in Wärtsilä through Avlis AB.

The additional shares in Wärtsilä acquired from Fiskars were valued at market value as of September 30. These shares were paid on October 9, and the liability, SEK 5,868 m. was included in Other assets and liabilities as of September 30, 2014.

Including management costs, of which Core Investments SEK 118 m., Financial Investments SEK 41 m. and Groupwide SEK 113 m.

Includes Investor's trading activities, a number of smaller investments and the remaining SEK 1.6 bn. holdings in Lindorff.

Including SEK 1.2 bn. of the proceeds from the divestiture of Gambro held in escrow. As of September 30, 2014, this number also includes SEK 5.9 bn. relating to the pending payment of Wärtsilä shares that was completed on October 9, 2014, and the SEK 6.8 bn. in proceeds relating to the divestiture of the majority in Lindorff that was finalized on October 6, 2014.

Including paid dividends of SEK 6,089 m.

Overview

Net asset value

During the period, the net asset value increased from SEK 215.4 bn. to SEK 246.8 bn. The change in net asset value, with dividend added back, was 17 percent during the period (18), of which 6 percent during the third quarter (10). The corresponding total return of the Stockholm Stock Exchange (SIXRX) was 9 percent and 0 percent respectively.

For balance sheet items, figures in parentheses refer to year-end 2013 figures. For income statement items, the figures in parentheses refer to the same period last year.

Net debt

Net debt totaled SEK 23,801 m. on September 30, 2014 (23,104), corresponding to leverage of 8.8 percent (9.7).

Investor's net debt

SEK m.	YTD 2014	2013
Opening net debt	-23 104	-22 765
Core Investments
Dividends	6 208	5 441
Other capital distributions	1 198	-
Investments, net of proceeds	-2 192	-8 277
Financial Investments
Capital distribution, including dividends	1 145	711
Investments, net of proceeds	796	9 022
Investor Groupwide
Other	-1 763	-1 905
Dividends paid	-6 089	-5 331
Closing net debt	-23 801	-23 104

Performance by business area

Q3 2014		Core Investments
SEK m.	Listed	Subsidiaries	Total	Financial Investments	Investor Groupwide	Total
Dividends	339		339	64		403
Other operating income				57		57
Changes in value	9 413	-6	9 407	3 597		13 004
Net sales		5 303	5 303	24		5 327
Management cost			-39	-14	-38	-91
Other items		-4 763	-4 763	309	-268	-4 722
Profit/loss for the period	9 752	534	10 247	4 037	-306	13 978
Non-controlling interest		0	0	0		0
Other effects on equity		-120	-120	401	41	322
Contribution to net asset value	9 752	414	10 127	4 438	-265	14 300
Net asset value, September 30, 2014
Carrying amount	205 101	30 929	236 030	32 222	2 350	270 602
Investor's net debt					-23 801	-23 801
Total net asset value	205 101	30 929	236 030	32 222	-21 451	246 801

Q3 2013		Core Investments			Investor
SEK m.	Listed	Subsidiaries	Total	Financial Investments	Groupwide, incl. elimination	Total
Dividends	320		320	14		334
Other operating income		30	30	54	-30	54
Changes in value	13 413	-17	13 396	1 692		15 088
Net sales		4 723	4 723		-31	4 692
Management cost			-37	-15	-32	-84
Other items		-4 777	-4 777	3 276	-309	-1 810
Profit/loss for the period	13 733	-41	13 655	5 021	-402	18 274
Non-controlling interest		31	31			31
Other effects on equity		70	70	-411	197	-144
Contribution to net asset value	13 733	60	13 756	4 610	-205	18 161
Net asset value, September 30, 2013
Carrying amount	161 866	28 748	190 614	30 811	1 363	222 788
Investor's net debt					-21 928	-21 928
Total net asset value	161 866	28 748	190 614	30 811	-20 565	200 860

Core Investments

Core Investments contributed to the net asset value with SEK 30,521 m. during the period (25,942), of which SEK 10,127 m. in the third quarter (13,756).

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

Contribution to net asset value, Core Investments

SEK m.	Q3 2014	YTD 2014	YTD 2013
Changes in value, listed	9 413	22 975	19 687
Dividends, listed	339	6 208	5 427
Change in reported value,
subsidiaries	414	1 456	938
Management cost	-39	-118	-110
Total	10 127	30 521	25 942

Core Investments - listed

Listed core investments contributed to the net asset value with SEK 29,183 m. during the period (25,114), of which SEK 9,752 m. in the third quarter (13,733). The combined total return amounted to 17 percent during the period, of which 5 percent during the third quarter.

Dividends

Dividends received totaled SEK 6,208 m. during the period (5,427), of which SEK 339 m. in the third quarter (320).

Contribution to net asset value and total return, 2014

	Contribution to net asset value, SEK m.	Total return, Investor1) (%)
Listed
SEB	7 109	18.4
Atlas Copco	7 040	19.2
ABB	-434	-1.4
AstraZeneca	8 084	40.9
Ericsson	2 766	20.9
Wärtsilä	-556	-10.0
Electrolux	1 383	17.2
Sobi	1 162	16.3
Nasdaq	980	19.5
Saab	309	5.5
Husqvarna	1 340	35.7
Total	29 183
Subsidiaries
Mölnlycke Health Care	1 337
Aleris	8
Permobil	81
Grand Hôtel/Vectura	30
Total	1 456

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

Investments and divestments

Third quarter

15,759,566 shares were purchased in Wärtsilä for SEK 5,868 m.

Earlier in the year

6,785,000 shares were purchased in ABB for SEK 1,072 m. In SEB, 1,275,372 C-shares were purchased for SEK 108 m. and 1,165,709 A-shares were divested for SEK 101 m.

Core Investments – listed

A leading Nordic financial services group. SEB is present in some 20 countries, with main focus on the Nordic countries, Germany and the Baltics.	www.seb.se
A global leader in compressors, construction and mining equipment, power tools and assembly systems.	www.atlascopco.com
A global leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact.	www.abb.com
A global, innovation-driven, integrated biopharmaceutical company.	www.astrazeneca.com
The world's leading provider of communications technology and services. Ericsson operates in 180 countries and employs more than 100,000 people.	www.ericsson.com
A global leader in complete lifecycle power solutions for the marine and energy markets.	www.wartsila.com
A global leader in household appliances and appliances for professional use, selling more than 40 million products to customers in more than 150 markets every year.	www.electrolux.com
A leading integrated biopharmaceutical company with international market presence, developing and commercializing pharmaceuticals for patients with rare diseases.	www.sobi.com
One of the world's largest exchange operators, which offers listings, trading, exchange technology and public company services across six continents.	www.nasdaq.com
Serves the global market with world-leading products, services and solutions for military defense and civil security.	www.saabgroup.com
The world's largest producer of outdoor power products for garden, park and forest care, European leader in watering products, and a world leader in cutting equipment and diamond tools to the construction industry.	www.husqvarna.com

Core Investments - subsidiaries

The subsidiaries contributed to the net asset value with SEK 1,456 m. during the period (938), of which SEK 414 m. during the third quarter (60).

Investments and divestments

Third quarter

No investments or divestments made during the quarter.

Earlier in the year

Investor acquired shares in Mölnlycke Health Care's Management Participation Program (a combination of common and preferred shares) for a total SEK 1,121 m. The acquisition price was confirmed through a third party fairness opinion. As a result of the transaction, Investor's ownership in Mölnlycke Health Care (including shareholder loans) increased from 98 percent to 99 percent. The shares were purchased at a price exceeding the book value of the minority shareholders' share of equity, and therefore Investor's net asset value was affected by SEK -754 m.

Net asset value, subsidiaries

	9/30 2014		12/31 2013
	SEK/share	SEK m.	SEK/share	SEK m.
Mölnlycke Health Care	29	21 946	27	20 684
Aleris	5	3 855	5	3 830
Permobil	5	3 840	5	3 759
Grand Hôtel/Vectura	2	1 288	2	1 258
Total	41	30 929	39	29 531

Contribution to net asset value, subsidiaries

	2014		2013
SEK m.	Q3	YTD	Q3	YTD
Mölnlycke Health Care	378	1 337	58	1 044
Aleris	10	8	-25	-62
Permobil	34	81	41	17
Grand Hôtel/Vectura	-8	30	-14	-61
Total	414	1 456	60	938

Read more at www.molnlycke.com >>

A world-leading manufacturer of single-use surgical and wound care products and services for the professional health care sector.

Activities during the quarter

• Mölnlycke Healthcare grew across all geographies and delivered a strong EBITDA margin in the quarter.
• Following a slightly weaker second quarter, both growth and margins picked up for the Wound Care division. Advanced Wound Care continued its strong performance and NPWT showed strong growth as well, albeit from low levels.
• The Surgical Division had a strong quarter with an improved growth rate. In particular, the ProcedurePak® trays and Gloves businesses grew strongly.
• Cash flow generation remained strong, and for the first time, a capital distribution to Investor was made, amounting to EUR 130 m.

Key figures, Mölnlycke Health Care

Income statement items,	2014		2013		Rolling 4
EUR m.	Q3	YTD	Q3	YTD	quarters
Sales	304	888	284	853	1 188
Sales growth, %	7	4	2	3
Sales growth, constant
currency, %	7	5	6	5
EBITDA	94	248	87	247	345
EBITDA, %	31	28	31	29	29
Balance sheet items, EUR m.		9/30 2014		12/31 2013
Net debt		730		728
		2014	2013
Cash flow items, EUR m.	Q3	YTD	Q3	YTD
EBITDA	94	248	87	247
Change in working capital	-18	-34	-4	-44
Capital expenditures	-9	-30	-8	-32
Operating cash flow	67	184	75	171
Acquisitions/divestments	-	-	-	-2
Shareholder
contribution/distribution	-130	-130	544	544
Other1)	-21	-56	-83	-152
Increase(-)/decrease (+)
in net debt	-84	-2	536	561
Key ratios					Rolling 4 quarters
Working capital/sales, %					11
Capital expenditures/sales, %					4
		9/30 2014		9/30 2013
Number of employees		7 435		7 340

Includes effects of exchange rate changes, interest and tax.

A leading private provider of healthcare and care services in Scandinavia.

Activities during the quarter

• Organic sales growth was 7 percent in constant currency, mainly driven by the Care business. In addition, Aleris made two minor bolt-on acquisitions. EBITDA improved strongly, partially affected by one-off items that were positive this year but negative in the corresponding quarter last year.
• In Sweden, Aleris continued the work to resolve the problems within Healthcare in the community hospitals in Stockholm and Primary Care. The Diagnostics business continued to perform well. Performance in the Care division was stable.
• In Norway, operations remained stable, but with results slightly below last year. Care for Youth/Adults continued to show good performance, but margins were affected by lower prices and utilization. Senior Care showed improved performance, and Healthcare's results were in line with last year.
• Denmark showed improved performance compared to last year, with stable development within both Senior Care and Healthcare.

Key figures, Aleris

Income statement items,		2014		2013	Rolling 4
SEK m.	Q3	YTD	Q3	YTD	quarters
Sales	1 793	5 528	1 645	5 168	7 335
Sales growth, %	9	7	5	4
Organic growth, constant
currency, %	7	7	6	5
EBITDA	117	295	79	269	333
EBITDA, %	7	5	5	5	5
Balance sheet items, SEK m.		9/30 2014		12/31 2013
Net debt		1 003		991
		2014		2013
Cash flow items, SEK m.	Q3	YTD	Q3	YTD
EBITDA	117	295	79	269
Change in working capital	-81	-92	-85	-120
Capital expenditures	-24	-103	-19	-100
Operating cash flow	12	100	-25	49
Acquisitions/divestments	-18	-30	-	-
Shareholder
contribution/distribution	-	-	-	-
Other1)	-27	-82	383)	1422)
Increase(-)/decrease (+)
in net debt	-33	-12	13	191
					Rolling 4
Key ratios					quarters
Working capital/sales, %					-2
Capital expenditures/sales, %					2

Number of employees	6 605	6 175

Includes effects of exchange rate changes, interest and tax.

Includes the release of the cancelled SEK 125 m. acquisition-related earn-out payment.

9/30 2014 9/30 2013

Including SEK 52 m. revaluation of pension liability.

Read more at www.permobil.com >>

A world-leading manufacturer of advanced powered wheelchairs.

Activities during the quarter

• Sales grew by 25 percent in the quarter. Organic growth was 7 percent on the back of continued strength in North America and some acceleration of growth in Europe.
• EBITDA improved significantly compared to the corresponding quarter last year, mainly driven by good operating leverage, and reached 25 percent. On a comparable basis, i.e. adjusted for transaction related costs last year, the EBITDA margin improved by 5 percentage points.
• The net debt increased due to currency translation, primarily on USD denominated debt.
• Permobil made important product launches in the quarter with initial positive response from customers. In the power segment, a new series of wheelchairs, the F5 Corpus and F5 Corpus Vertical Stander, were launched for the European market. In the manual segment, the second generation of the TiLite folding aluminium chair, Aero X2, was introduced.

Key figures, Permobil1)

Income statement items,		2014	2013	Rolling 4
SEK m.	Q3	YTD	Q3	YTD	quarters
Sales	563	1 456	450	1 270	1 928
Sales growth, %	25	15	15	11
Organic growth, constant
currency, %	7	6	15	11
EBITDA	138	304	68	178	381
EBITDA, %	25	21	15	14	20
Balance sheet items, SEK m.		9/30 2014		12/31 2013
Net debt		1 476		1 117
		2014		2013
Cash flow items, SEK m.	Q3	YTD	Q3	YTD
EBITDA	138	304	68	178
Adjustments to EBITDA	-	-	192)	2) -6
Change in working capital	-44	-68	13	-22
Capital expenditures	-36	-100	-26	-66
Operating cash flow	58	136	74	84
Acquisitions/divestments	-	-362	-	-
Shareholder contribution/distribution	-	-	-	-
Other3)	-113	-133	56	37
Increase(-)/decrease (+)
in net debt	-55	-359	130	121
					Rolling 4
Key ratios					quarters
Working capital/sales, %					19
Capital expenditures/sales, %					7
		9/30 2014		9/30 2013
Number of employees		995		775

1) Consolidated as of May 14, 2013, figures for full prior periods provided for comparison. 2) SEK -38 m. in cash flow-affecting acquisition-related costs and SEK 32 m. in acquisition-related inventory adjustments that have not affected cash flow. The corresponding figures for the third quarter are SEK -2 m. and SEK 21 m. respectively.

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

Read more at www.grandhotel.se >>

Includes Grand Hôtel, Scandinavia's leading five-star hotel, opened in 1874, and Lydmar Hotel, a high-end boutique hotel. Both reside in neighboring landmark buildings with unique waterfront locations in central Stockholm.

Activities during the quarter

• Organic sales growth for the Grand Group amounted to 13 percent. EBITDA continued to show strong improvement compared to last year.
• Grand Hôtel continued to develop well, with good growth in all areas; the Lodging activities, Food and Beverage and the Spa. Growth for Food and Beverage was positively affected by the fact that the Veranda was closed for renovation up until September last year.
• Lydmar Hotel also showed strong performance. Both the Lodging activities and Food & Beverage continued to show strong growth.
• After the end of the quarter, Grand Hôtel acquired the remaining shares in Lydmar Hotel, making it the sole owner of the operations.

Manages real estate in Sweden, including Investor's office building, Näckström Fastigheter (operates real estate related to Aleris), the Grand Hôtel property, and other land and real estate.

Activities during the quarter

• Vectura's sales growth amounted to 9 percent and was largely driven by Grand Hôtel and Näckström Fastigheter.
• The EBITDA margin was stable at 66 percent.
• Näckström Fastigheter has initiated a new property development project in Botkyrka, related to elderly care. Once completed, Aleris will operate the facilities.
• As of September 30, 2014, the market value of Vectura's properties amounted to SEK 2.7 bn. (2.4).

Key figures, Grand Hôtel

Income statement items,	2014		20131)		Rolling 4
SEK m.	Q3	YTD	Q3	YTD	quarters
Sales	148	386	131	317	531
Sales growth, %	13	22	38	17
Organic growth, %	13	9	11	3
EBITDA	16	17	3	-12	24
EBITDA, %	11	4	2	-4	5

Income statement items,	2014		2013		Rolling 4
SEK m.	Q3	YTD	Q3	YTD	quarters
Sales	35	96	32	86	134
Sales growth, %	9	12	0	0
EBITDA	23	58	21	48	86
EBITDA, %	66	60	66	56	64

9/30 2014 9/30 2013 Number of employees 345 295

The operations of Lydmar Hotel are included as from the third quarter 2013.

Balance sheet items, SEK m.	9/30 2014	12/31 2013
Net debt, Grand Hôtel/Vectura	1 122	943

Financial Investments

Financial Investments contributed to the net asset value with SEK 8,453 m. during the period (6,442), of which SEK 4,438 m. during the third quarter (4,610).

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

Investments and divestments

Third quarter

SEK 3,469 m. was invested and SEK 10,180 m. was distributed to Investor.

The divestiture of the majority in Lindorff was completed. The proceeds, SEK 6.8 bn., was received on October 6 and was reported as a receivable in Other assets and liabilities as of September 30, 2014.

Following the completion of the transaction, Investor holds an equity position and a shareholder's note in Lindorff. The reported value of these holdings, reported in Other investments, amounted to SEK 1.6 bn. as of September 30, 2014.

Earlier in the year

SEK 975 m. was invested and SEK 2,623 m. was distributed to Investor.

Investor acquired an additional 47 percent in the Swedish biotech company Affibody for SEK 116 m.

Net asset value, Financial Investments

	9/30 2014		12/31 2013
	SEK/Share	SEK m.	SEK/Share	SEK m.
EQT	18	13 490	15	11 615
Investor Growth Capital	15	11 697	14	10 793
Partner-owned
Lindorff		-	7	4 960
3 Scandinavia	4	3 003	3	2 643
Other investments	5	4 032	3	2 245
Total	42	32 222	42	32 256

Contribution to net asset value, Financial Investments

	2014		2013
SEK m.	Q3	YTD	Q3	YTD
EQT	356	3 013	285	1 145
Investor Growth Capital	706	1 708	597	1 005
Partner-owned
Lindorff	3 196	3 456	45	293
3 Scandinavia	126	360	97	187
Other investments	68	-43	333	591
Management cost	-14	-41	-15	-47
Total	4 438	8 453	4 6101)	6 4421)

Including contribution to net asset value from Gambro of SEK 3,268 m. during Q3 2013.

Read more at www.eqt.se >>

The EQT private equity funds invest in companies in Northern and Eastern Europe, Asia and the U.S., in which EQT can act as a catalyst to transform and grow operations.

Activities during the quarter

• Investor received a net of SEK 153 m. from EQT.
• The reported value change of Investor's investments in EQT was 3 percent. In constant currency, the change was 2 percent.
• Investor's total outstanding commitments to EQT funds amounted to SEK 4.4 bn. as of September 30, 2014 (6.3).
• EQT VI acquired Van Dijk Electronic Publishing and Evidensia Djursjukvård.
• EQT Expansion Capital I's and EQT IV's holding SSP was listed on the London Stock Exchange.

Change in net asset value, EQT

SEK m.	Q3 2014	YTD 2014	YTD 2013
Net asset value, beginning of period	13 287	11 615	10 984
Contribution to net asset value (value change)	356	3 013	1 145
Draw-downs (investments and management fees)	1 161	2 002	1 308
Proceeds to Investor (divestitures, fee surplus and carry)	-1 314	-3 140	-3 132
Net asset value, end of period	13 490	13 490	10 305

Read more at www.investorgrowthcapital.com >>

Investor Growth Capital (IGC) manages expansion stage venture capital investments in growth companies within technology and healthcare in the U.S. and China.

Activities during the quarter

• IGC distributed SEK 337 m. to Investor.
• The reported value change of Investor's investments in IGC was 6 percent. In constant currency, the value change was -1 percent.
• The remaining European portfolio was acquired by Investor and included in Other Investments, after which IGC Europe was wound down.

Change in net asset value, IGC

SEK m.	Q3 2014	YTD 2014	YTD 2013
Net asset value, beginning of period	11 328	10 793	10 727
Contribution to net asset value (value change)	706	1 708	1 005
Distribution to Investor	-3371)	-804	-630
Net asset value, end of period	11 697	11 697	11 102
Of which net cash	4 369	4 369	2 584

The distribution was pending over the closing of the quarter and was presented as a receivable in Other Assets and Liabilities.

As of September 30, 2014, the U.S. and Asian portfolios represented 66 and 34 percent of the total value respectively and 41 percent was composed by listed holdings, all numbers excluding net cash held by IGC. Net cash represented 37 percent of IGC's net asset value.

The five largest investments were (in alphabetical order): ChinaCache (China), Mindjet Corporation (U.S.), NS Focus (China), Retail Solutions (U.S.) and WhiteHat Security (U.S). These holdings represented 47 percent of the total portfolio value, excluding net cash.

Read more at www.tre.se >>

An operator providing mobile voice and broadband services in Sweden and Denmark. The company has more than 2.9 m. subscribers and is recognized for its high-quality network.

Activities during the quarter

• The number of subscribers increased by 65,000 of which 53,000 in Sweden and 12,000 in Denmark. In total, the subscriber base grew by 11 percent compared to the same period last year.
• Growth in service revenue was strong, 16 percent compared to the same quarter last year, driven by continued subscriber base growth and increased service revenue per subscriber.
• Total EBITDA increased by 19 percent compared to the same period last year. Cash flow remained strong, reducing net debt by SEK 432 m. during the quarter.

Key figures, 3 Scandinavia1)

Income statement items Q3 YTD Q3 YTD Sales, SEK m. 2 541 7 492 2 228 6 889 9 924 Sweden, SEK m. 1 597 4 933 1 469 4 526 6 545 Denmark, DKK m. 770 2 117 652 2 048 2 816 Service revenue2), SEK m. 1 489 4 237 1 285 3 661 5 557 Sweden, SEK m. 969 2 729 814 2 360 3 564 Denmark, DKK m. 424 1 247 406 1 128 1 660 EBITDA, SEK m. 675 1 989 568 1 539 2 723 Sweden, SEK m. 465 1 412 371 1 021 1 934 Denmark, DKK m. 172 478 170 449 659 EBITDA, % 27 27 25 22 27 Sweden 29 29 25 23 30 Denmark 22 23 26 22 23 Balance sheet items Q3 2014 Q4 2013 Net debt, SEK m. 8 557 9 676 Q3 2014 Q3 2013 2 135 2 050 Number of employees Rolling 4 Key figures quarters Capital expenditures/sales, % 10 Other key figures3) 9/30 2014 9/30 2013 Subscribers 2 921 000 2 635 000 Sweden 1 840 000 1 666 000 Denmark 1 081 000 969 000 Postpaid/prepaid ratio 81/19 84/16	2014	2013		Rolling 4 quarters

Income statement and balance sheet items are reported with one month's delay.

Mobile service revenue excluding interconnect revenue.

Other key figures are reported without delay.

Unlisted investments – key figures overview

	Q3	Q2	Q1	FY	Q4	Q3	Q2	Q1	FY	Q4	Q3
	2014	2014	2014	2013	2013	2013	2013	2013	2012	2012	2012
Core Investments – Subsidiaries
Mölnlycke Health Care (EUR m.)
Sales	304	297	287	1 153	300	284	292	277	1 119	294	279
EBITDA	94	77	77	344	97	87	86	74	321	89	81
EBITDA (%)	31	26	27	30	32	31	29	27	29	30	29
Net debt	730	646	698	728	728	822	1 358	1 399	1 383	1 383	1 450
Employees	7 435	7 515	7 390	7 375	7 375	7 340	7 390	7 265	7 175	7 175	7 170
Aleris (SEK m.)
Sales	1 793	1 894	1 841	6 975	1 807	1 645	1 767	1 756	6 732	1 779	1 569
EBITDA	117	77	101	307	38	79	105	85	330	58	38
EBITDA (%)	7	4	5	4	2	5	6	5	5	3	2
Net debt	1 003	970	1 007	991	991	1 970	1 983	2 190	2 161	2 161	2 684
Employees	6 605	6 485	6 375	6 220	6 220	6 175	6 070	5 995	6 010	6 010	5 955
Permobil 1) (SEK m.)
Sales	563	482	411	1 742	472	450	438	382	1 562	413	392
EBITDA	138	103	63	255	77	68	50	60	313	86	74
EBITDA (%)	25	21	15	15	16	15	11	16	20	21	19
Net debt	1 476	1 421	1 071	1 117	1 117	1 161	1 291	1 235	1 282	1 282	1 305
Employees	995	955	765	775	775	775	750	710	680	680	690
Grand Hôtel 2) (SEK m.)
Sales	148	146	92	462	145	131	113	73	383	112	95
EBITDA	16	14	-13	-5	7	3	0	-15	0	2	1
EBITDA (%)	11	10	-14	-1	5	2	0	-21	0	2	1
Employees	345	325	295	335	335	295	260	220	265	265	255
Vectura2) (SEK m.)
Sales	35	35	26	124	38	32	34	20	116	30	32
EBITDA	23	22	13	76	28	21	22	5	58	15	19
EBITDA (%)	66	63	50	61	74	66	65	25	50	50	59
Net debt (Grand Hôtel/Vectura)	1 122	1 098	1 015	943	943	986	951	876	820	820	-
Financial Investments
EQT (SEK m.)
Reported value	13 490	13 287	11 852	11 615	11 615	10 305	11 816	10 923	10 984	10 984	11 267
Reported value change, %	3	13	10	22	12	2	7	1	0	-1	-5
Value change, constant currency, %	2	10	9	20	10	4	2	4	3	-2	-2
Draw-downs from Investor	1 161	841	367	1 914	606	543	390	375	1 284	90	707
Proceeds to Investor	1 314	1 826	1 235	3 697	565	2 339	213	580	3 460	303	1 414
Net proceeds to Investor	153	985	868	1 783	-41	1 796	-177	205	2 176	213	707
Investor Growth Capital (SEK m.)
Reported value	11 697	11 328	11 357	10 793	10 793	11 102	10 772	10 701	10 727	10 727	10 827
Reported value change, %	6	1	9	13	3	6	3	1	4	0	-4
Value change, constant currency, %	-1	-3	9	14	2	10	1	1	9	0	1
Capital contribution from Investor	-	-	-	-	-	-	-	-	750	-	-
Distribution to Investor	337	105	362	1 308	678	267	250	113	607	81	155
Partner-owned investments
3 Scandinavia3)
Sales	2 541	2 353	2 598	9 321	2 432	2 228	2 219	2 442	9 341	2 461	2 113
Sweden, SEK m.	1 597	1 640	1 696	6 138	1 612	1 469	1 442	1 615	6 336	1 666	1 386
Denmark, DKK m.	770	590	757	2 747	699	652	677	719	2 561	689	635
EBITDA	675	672	642	2 273	734	568	480	491	2 425	683	651
Sweden, SEK m.	465	487	460	1 543	522	371	321	329	1 712	478	458
Denmark, DKK m.	172	154	152	630	181	170	139	140	609	179	167
EBITDA, %	27	29	25	24	30	25	22	20	26	28	31
Sweden	29	30	27	25	32	25	22	20	27	29	33
Denmark	22	26	20	23	26	26	21	19	24	26	26
Net debt, SEK m.	8 557	8 989	9 417	9 676	9 676	9 612	10 048	10 184	9 652	9 652	9 841
Employees	2 135	2 060	2 035	2 075	2 075	2 050	2 035	1 980	1 980	1 980	1 955

Consolidated as of May 14, 2013, figures for prior periods provided for comparison.

Numbers up until the first quarter 2013 pro forma.

Income and balance sheet items are reported with one month's delay.

Group

Net debt

Net debt totaled SEK 23,801 m. on September 30, 2014 (23,104). Debt financing of the subsidiaries within Core Investments and the partner-owned investments within Financial Investments, is arranged on an independent ringfenced basis and hence not included in Investor's net debt. Investor guarantees SEK 3.7 bn. of 3 Scandinavia's external debt, but this is not included in Investor's net debt.

Net debt, 9/30 2014

SEK m.	Consolidated balance sheet	Deductions related to Core Investments subsidiaries and IGC	Investor's net debt
Other financial
investments	2 528	-2	2 5261)
Cash, bank and short-term
investments	16 338	-7 310	9 0281)
Receivables included in
net debt	1 232	-2	1 230
Loans	-49 540	13 097	-36 443
Provision for pensions	-673	531	-142
Total	-30 115	6 314	-23 801

Included in cash and readily available placements.

Investor's cash and readily available placements amounted to SEK 11,554 m. as of September 30, 2014 (6,864). The short-term investments are invested conservatively, taking into account the risk-adjusted return profile. Gross debt excluding pensions for Investor amounted to SEK 35,213 m. at the end of the period (29,814).

During the third quarter, through several long-dated private placements, a total EUR 340 m. was borrowed with maturities ranging between 15 and 30 years.

The average maturity of Investor AB's debt portfolio was 11.6 years on September 30, 2014 (10.8), excluding the debt of Mölnlycke Health Care, Aleris, Permobil and Grand Hôtel/Vectura.

Maturity profile, 9/30, 2014

Net financial items, 9/30 2014

SEK m.	Group - Net Financial Items	Deductions related to Core Investments subsidiaries and IGC	Investor's Net Financial Items
Interest income	132	-8	124
Interest expenses	-1 146	227	-919
Realized result from loans and swaps Unrealized result from revaluation of loans, swaps	-1	1	0
and short-term investments	-135	26	-109
Foreign exchange result	144	-95	49
Other	-42	13	-29
Total	-1 048	164	-884

The Investor share

The price of the A-share and B-share was SEK 249.90 and SEK 255.20 respectively on September 30, 2014, compared to SEK 215.10 and SEK 221.30 on December 31, 2013.

The total shareholder return amounted to 2 percent during the third quarter 2014 (8).

The total market capitalization of Investor, adjusted for repurchased shares, was SEK 192,616 m. as of September 30, 2014 (166,451).

On September 30, 2014, Investor owned a total of 5,938,721 of its own shares (6,293,360). The net decrease in holdings of own shares is attributable to repurchase of own shares and transfer of shares and options within Investor's long-term variable remuneration program.

Impact from divestment of Lindorff

On July 18, 2014, Altor and Investor signed an agreement with Nordic Capital to divest the majority of their holdings in Lindorff. The transaction was declared unconditional on September 18 and was closed October 6, 2014, and Investor received SEK 6.8 bn. in cash proceeds. In addition, Investor holds a conditional shareholder note in Lindorff contingent on the return on the investment for the new owners. The value of Investor's holding in the note is a maximum of EUR 115 m. plus 8 percent annual interest. Following the completion of the divesture, Investor retains an equity position of 9 percent of the capital in Lindorff.

In this Interim Management Statement, the divesture of Lindorff is included in the income statement as the transaction was declared unconditional on September 18, 2014 and consequently, Investor lost its significant influence over Lindorff. The reported total value of Investor's remaining holdings in Lindorff, including the conditional shareholder note, amounts to SEK 1.6 bn. This amount is part of the Shares and participations in the consolidated balance sheet.

Other

Acquisition of shares in Mölnlycke Health Care

In April 2014, the participants, approximately 140 people, in Mölnlycke Health Care's Management Participation Program agreed to sell all of their shares under the program. A new program was set in place for current external Board members, management and key employees, approximately 70 people in total.

In total, Investor acquired shares in Mölnlycke Health Care from approximately 140 participants for a total amount of EUR 112 m, of which EUR 74 m. from the Board, management. The participants in the new program have invested EUR 35 m., of which Board members and management EUR 15 m. Gunnar Brock is one of the participants of the Management Participation Program since his appointment as Chairman of Mölnlycke Health Care in 2007, prior to his election to the Board of Directors of Investor in 2009. The total investment by Gunnar Brock under the program is approximately EUR 0.7 m. As disclosed in the Interim Report January-March 2012, Gunnar Brock divested part of his holding to Investor in March 2012. As part of the transactions described above, Gunnar Brock has sold his remaining holding of shares to Investor for approximately net EUR 1.9 m. and reinvested EUR 0.4 m. in the new program.

Acquisitions (business combinations)

On March 4, 2014, Investor acquired an additional 44 percent of the capital and votes of the Swedish biotech company Affibody Medical AB (publ). An additional 3 percent were acquired during April. The company is focused on developing next generation biopharmaceuticals based on its unique proprietary technology platforms: Affibody® molecules and AlbumodTM. Following the acquisitions, Investor owns 71 percent of the company. The consideration from Investor amounted to SEK 116 m. and was paid in cash.

In the preliminary Purchase Price Allocation, intangible assets amount to SEK 211 m. and consist of customer contracts that are depreciated over the life of the contracts.

Permobil's acquisition of controlling interest in TiLite

On May 27, 2014, Permobil acquired 100 percent of the capital and votes in TiLite, an American leading manufacturer of innovative and individually customized manual wheelchairs. Through the acquisition, Permobil is taking the next step in its strategy to become a leading healthcare company, providing solutions for people with complex rehabilitation needs. The consideration amounted to SEK 362 m. The acquisition is financed by retained cash and new debt.

In the preliminary purchase price allocation, goodwill amounts to SEK 141 m. The goodwill recognized for the acquisition corresponds to the combined company's opportunities for synergies and sales growth due to TiLites strong market position in the U.S. and Permobil´s sales network in Europe among others. The goodwill recognized is not expected to be deductible for income tax purposes.

Pledged assets and contingent liabilities

No significant changes of pledged assets and contingent liabilities occurred during the period.

Basis of preparation for the Interim Management Statement

This Interim Management Statement has in all material aspects been prepared in accordance with NASDAQ OMX 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. The financial statements and the segment information correspond to the disposition in the interim reports prepared in accordance with IAS 34. This in order to facilitate comparison in the presentation between quarters. The Interim Management Statement include among other President's comments and share price development, even though this is not required in the NASDAQ OMX Stockholm's guidelines for preparing Interim Management Statements. This information is anyway considered important to meet the needs of the users of the report.

Financial calendar

Jan. 28, 2015	Year-End Report 2014
Apr. 21, 2015	Interim Management Statement January March 2015
May 12, 2015	Annual General Meeting
Jul. 16, 2015	Interim Report January-June 2015
Oct. 23, 2015	Interim Management Statement January September 2015

Stockholm, October 22, 2014

Börje Ekholm President and Chief Executive Officer

For more information:

Susanne Ekblom, Chief Financial Officer: +46 8 614 2000 susanne.ekblom@investorab.com

Stefan Stern, Head of Corporate Relations and Communications: +46 8 614 2059, +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

The information in this Interim Management Statement is such that Investor is required to disclose under Sweden's Securities Market Act.

The report was released for publication at 08:15 CET on October 22, 2014.

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

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

Consolidated Income Statement, in summary

SEK m.	1/1-9/30 2014	1/1-9/30 2013	7/1-9/30 2014	7/1-9/30 2013
Dividends	7 157	5 600	403	334
Other operating income	162	308	57	54
Changes in value	29 022	22 512	13 004	15 088
Net sales	15 420	13 494	5 327	4 692
Cost of goods and services sold	-9 808	-8 826	-3 269	-3 008
Sales and marketing cost	-2 329	-2 057	-778	-712
Administrative, research and development and other operating cost	-1 751	-1 330	-613	-505
Management cost	-272	-265	-91	-84
Share of results of associates	684	3 312	411	3 304
Operating profit/loss	38 285	32 748	14 451	19 163
Net financial items	-1 048	-1 900	-340	-991
Profit/loss before tax	37 237	30 848	14 111	18 172
Income taxes	456	141	-133	102
Profit/loss for the period	37 693	30 989	13 978	18 274
Attributable to:
Owners of the Parent Company	37 662	31 026	13 978	18 305
Non-controlling interest	31	-37	0	-31
Profit/loss for the period	37 693	30 989	13 978	18 274
Basic earnings per share, SEK	49.48	40.77	18.37	24.06
Diluted earnings per share, SEK	49.37	40.70	18.32	24.03

Consolidated Statement of Comprehensive Income, in summary

SEK m.	1/1-9/30 2014	1/1-9/30 2013	7/1-9/30 2014	7/1-9/30 2013
Profit for the period	37 693	30 989	13 978	18 274
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	64	1	-	-8
Re-measurements of defined benefit plans	-19	40	-19	40
Items that have been or may be recycled to profit/loss for the period
Cash flow hedges	-157	406	-32	245
Foreign currency translation adjustment	1 172	54	632	-545
Share of other comprehensive income of associates	-285	122	-261	118
Total other comprehensive income for the period	775	623	320	-150
Total comprehensive income for the period	38 468	31 612	14 298	18 124
Attributable to:
Owners of the Parent Company	38 437	31 666	14 297	18 191
Non-controlling interest	31	-54	1	-67
Total comprehensive income for the period	38 468	31 612	14 298	18 124

Consolidated Balance Sheet, in summary

SEK m.	9/30 2014	12/31 2013	9/30 2013
ASSETS
Goodwill	26 606	25 819	26 177
Other intangible assets	11 308	11 530	11 549
Property, plant and equipment	5 147	4 666	4 585
Shares and participations	233 869	202 710	188 881
Other financial investments	2 528	1 761	1 617
Long-term receivables included in net debt	1 230	174	341
Other long-term receivables	2 116	3 654	3 775
Total non-current assets	282 804	250 314	236 925
Inventories	1 721	1 441	1 562
Shares and participations in trading operation	159	149	306
Short-term receivables included in net debt	2	1	0
Other current receivables	11 390	3 529	3 918
Cash, bank and short-term investments	16 338	11 716	11 099
Total current assets	29 610	16 836	16 885
TOTAL ASSETS	312 414	267 150	253 810
EQUITY AND LIABILITIES
Equity	246 820	215 966	201 391
Long-term interest bearing liabilities	49 199	42 212	42 851
Provisions for pensions and similar obligations	673	642	700
Other long-term provisions and liabilities	4 411	3 738	3 886
Total non-current liabilities	54 283	46 592	47 437
Current interest bearing liabilities	341	52	427
Other short-term provisions and liabilities	10 970	4 540	4 555
Total current liabilities	11 311	4 592	4 982
TOTAL EQUITY AND LIABILITIES	312 414	267 150	253 810

Consolidated Statement of Changes in Equity, in summary

SEK m.	1/1-9/30 2014	1/1-12/31 2013	1/1-9/30 2013
Opening balance	215 966	175 106	175 106
Profit for the period	37 693	45 106	30 989
Other comprehensive income for the period	775	1 055	623
Total comprehensive income for the period	38 468	46 161	31 612
Dividends paid	-6 089	-5 331	-5 331
Changes in non-controlling interest	-1 053	89	94
Reclassification of non-controlling interest	-539	-	-
Repurchase of own shares	-	-195	-195
Effect of long-term share-based remuneration	67	136	105
Closing balance	246 820	215 966	201 391
Attributable to:
Owners of the Parent Company	246 801	215 417	200 860
Non-controlling interest	19	549	531
Total equity	246 820	215 966	201 391

Consolidated Cash Flow, in summary

SEK m.	1/1-9/30 2014	1/1-9/30 2013
Operating activities
Core Investments
Dividends received	6 208	5 427
Cash receipts	15 517	14 470
Cash payments	-13 209	-12 431
Financial Investments and management cost
Dividends received	954	181
Net cash flow, trading operation	189	-45
Cash payments	-474	-323
Cash flows from operating activities before net interest and income tax	9 185	7 279
Interest received/paid	-1 126	-2 036
Income tax paid	-199	-214
Cash flows from operating activities	7 860	5 029
Investing activities
Acquisitions	-3 865	-2 796
Divestments	3 974	11 815
Increase in long-term receivables	-	-15
Decrease in long-term receivables	67	171
Acquisitions of subsidiaries, net effect on cash flow	-1 472	-3 563
Increase in other financial investments	-3 187	-2 812
Decrease in other financial investments	2 433	2 271
Net change, short-term investments	-325	-470
Acquisitions of property, plant and equipment	-726	-428
Proceeds from sale of property, plant and equipment	4	3
Proceeds from sale of other investments	-	7
Net cash used in investing activities	-3 097	4 183
Financing activities
Borrowings	5 115	9 057
Repayment of borrowings	-43	-12 402
Repurchase / Sale of own shares	-	-195
Dividend paid	-6 089	-5 331
Net cash used in financing activities	-1 017	-8 871
Cash flows for the period	3 746	341
Cash and cash equivalents at the beginning of the year	9 783	7 696
Exchange difference in cash	548	-74
Cash and cash equivalents at the end of the period	14 077	7 963

Operating segment

PERFORMANCE BY BUSINESS AREA 1/1-9/30 2014

			Investor
SEK m.	Core investments	Financial investments	Groupwide	Elimination	Total
Dividends	6 208	949	-	-	7 157
Other operating income1)	-	162	-	-	162
Changes in value	22 955	6 067	-	-	29 022
Net sales	15 390	30	-	-	15 420
Cost of goods and services sold	-9 808	-	-	-	-9 808
Sales and marketing cost	-2 306	-23	-	-	-2 329
Administrative, research and development and
other operating cost	-1 620	-131	-	-	-1 751
Management cost	-118	-41	-113	-	-272
Share of results of associates	2	683	-1	-	684
Operating profit/loss	30 703	7 696	-114	-	38 285
Net financial items	-174	9	-883	-	-1 048
Income tax	671	-144	-71	-	456
Profit/loss for the period	31 200	7 561	-1 068	-	37 693
Non-controlling interest	-30	-1	-	-	-31
Net profit/loss for the period attributable to the
Parent Company	31 170	7 560	-1 068	-	37 662
Dividends paid	-	-	-6 089	-	-6 089
Other effects on equity	-649	893	-433	-	-189
Contribution to net asset value	30 521	8 453	-7 590	-	31 384
Net asset value by business area 9/30 2014
Carrying amount	236 030	32 222	2 350	-	270 602
Investor's net debt			-23 801		-23 801
Total net asset value	236 030	32 222	-21 451	-	246 801

PERFORMANCE BY BUSINESS AREA 1/1-9/30 2013

	Financial	Investor
Core investments	investments	Groupwide	Elimination	Total
				5 600
				308
				22 512
				13 494
				-8 826
				-2 057
				-1 330
				-265
				3 312
				32 748
-1 266	-	-733	99	-1 900
245	-	-104	-	141
25 444	6 490	-945	-	30 989
37	-	-	-	37
				31 026
				-5 331
				-195
				662
				26 162
				222 788
				-21 928
190 614	30 811	-20 565	-	200 860
	5 427 99 19 663 13 582 -8 914 -2 057 -1 229 -110 4 26 465 25 481 - - 461 25 942 190 614	173 308 2 849 - - - -101 -47 3 308 6 490 6 490 - - -48 6 442 30 811	- - - - - - - -108 - -108 -945 -5 331 -195 249 -6 222 1 363 -21 928	- -99 - -88 88 - - - - -99 - - - - - -

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 2013.

Valuation techniques, level 3

Group 9/30 2014	Fair value	Valuation technique	Input	Range
Shares and participations	19 583	Last round of financing	n.a.	n.a.
			EBITDA multiples	6.5 – 7.5
		Comparable companies	Sales multiples	0.7 – 5.8
		Comparable transactions	Sales multiples	1.8 – 6.4
		NAV	n.a.	n.a.
Long-term receivables included in net debt	656	Present value computation	Market interest rate	n.a.
Long-term interest bearing liabilities	40	Present value computation	Market interest rate	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.

A significant part of IGC's portfolio companies are 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 portfolio value of IGC of approximately SEK 300 m. For the derivatives, a parallel shift of the interest rate curve by one percentage point would affect the value by approximately SEK 980 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 categorized on three levels, 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 2014	Level 1	Level 2	Level 3	Other1)	Total carrying amount
Financial assets
Shares and participations	207 188	1 754	19 583	5 344	233 869
Other financial investments	2 526			2	2 528
Long-term receivables included in net debt		574	656		1 230
Shares and participations in trading operation	159				159
Short-term investments included in net debt		2			2
Other current receivables		45		11 345	11 390
Cash, bank and short-term investments	16 338				16 338
Total	226 211	2 375	20 239	16 691	265 516
Financial liabilities
Long-term interest bearing liabilities		901	40	48 2582)	49 1993)
Short-term interest bearing liabilities		153		188	341
Other short-term provisions and liabilities		111		10 859	10 970
Total		1 165	40	59 305	60 510

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.

The Group's loans are valued at amortized cost.

Fair value on loans amounts to SEK 52,906 m.

Changes in financial assets and liabilities in Level 3

Group 9/30 2014	Shares and participations	Long-term receivables included in net debt	Long-term interest bearing liabilities
Opening balance	19 973	0	345
Total gain or losses in profit or loss statement
in line Changes in value	1 899	656	-305
Reported in other comprehensive income
in line Foreign currency translation adjustment	567
Acquisitions	2 494
Divestments	-4 141
Transfer from Level 3	-1 209
Carrying amount at end of period	19 583	656	40
Total gains/losses for the period included in profit/loss for instruments held at the end of the period (unrealized results)
Changes in value	1 944	656	-305

Net amounts of financial assets and liabilities

No financial assets and liabilities have been set off in the Balance Sheet. The Groups derivatives are covered by ISDA agreements. For repurchase agreements GMRA agreements exist and for securities lending there are GMSLA agreements. According to the agreements the holder has the right to set off the derivatives and keep securities when the counterparty does not fulfill its commitments.