Investor AB

Annual Report • Jul 17, 2020

Interim Report

January-June 2020

"While covid-19 has had a severe impact on people and the global economy, it has also given us insights to build upon. Furthermore, the pandemic has accelerated the already strong trends of digitalization, automation and integration of sustainability into business operations. We will support our companies in capturing these opportunities."

Johan Forssell, President & CEO of Investor

Highlights during the second quarter

• Adjusted net asset value (NAV) amounted to SEK 490,950m (SEK 641 per share) on June 30, 2020, an increase of SEK 59,920m, or 14 percent, with dividend added back, during the quarter. Total shareholder return amounted to 9 percent during the quarter, compared to 17 percent for the SIXRX return index.
• Listed Companies generated a total return of 19 percent. Investor purchased shares in ABB for SEK 0.5bn.
• Based on estimated market values, the total return for Patricia Industries, excluding cash, amounted to -2 percent (-2 percent including cash). Earnings and currency impacted negatively, mitigated by multiple expansion.
• Sales growth for the major subsidiaries amounted to -16 percent, of which -19 percent organic in constant currency. Reported EBITA declined by 25 percent. Including our 40 percent ownership in Three Scandinavia, EBITDA declined by 18 percent.
• Mölnlycke reported organic sales growth of -7 percent in constant currency, with margins almost in line with last year. Sales growth is expected to be strong during the third quarter driven by new customer agreements within personal protective equipment.
• The value of our EQT investments increased by 16 percent, driven by a total return of 42 percent in EQT AB. Net cash flow to Investor amounted to SEK -1.6bn.
• Leverage (net debt/reported total assets) was 5.1 percent as of June 30, 2020 (2.8 as of December 31, 2019). Gross cash amounted to SEK 13,652m and the average maturity of Investor AB's debt portfolio was 10.6 years on June 30, 2020.
• Investor's Annual General Meeting approved the Board's proposal of a SEK 9 per share dividend for fiscal 2019.

Financial information*
		6/30 2020	3/31 2020	12/31 2019
Adjusted NAV, SEK m*		490 950	437 919	485 019
Adjusted NAV, SEK per share*		641	572	634
Reported NAV1), SEK m*		431 788	378 043	420 681
Reported NAV1), SEK per share*		564	494	550
Market capitalization, excluding repurchased shares, SEK m		374 980	347 967	389 770
Share price (B-share), SEK		491.70	457.10	511.20
			Q2 2020	H1 2020
Adjusted NAV, sequential change, incl. dividend added back, SEK m*			59 920	12 820
Adjusted NAV, sequential change, incl. dividend added back, %*			14	3
Reported NAV1), sequential change, incl. dividend added back, SEK m*			60 634	17 996
Reported NAV1), sequential change, incl. dividend added back, %*			16	4
Market capitalization, sequential change, incl. dividend added back, SEK m*			33 902	-7 901
Market capitalization, sequential change, incl. dividend added back, %*			10	-2
	Q2 2020	Q2 2019	H1 2020	H1 2019
Consolidated net sales, SEK m	8 215	10 967	18 194	21 293
Consolidated profit/loss, SEK m	64 347	18 078	17 906	46 886
Basic earnings per share, SEK	84.09	23.62	23.45	61.28

* Financial measures that are not defined or specified in the applicable financial reporting framework. For more information, see page 16 and 28. Change in market capitalization with dividend added back reflects the change in total market capitalization with the dividend paid out added back. Change in net asset value with dividend added back includes the full dividend approved by the AGM.

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

Overview annual average performance

	YTD	1 year	5 years	10 years	20 years
Adjusted NAV incl. dividend added back, %	2.6	18.1	-	-	-
Investor B, total return, %	-2.1	13.1	12.9	18.1	11.0
SIXRX return index, %	-4.1	7.2	8.3	11.2	6.6

CEO statement

Dear fellow shareholders,

Covid-19 has caused a global health crisis and significantly impacted the world economy during the second quarter. Compared to the gloomiest days in the beginning of the quarter, we have seen a rebound in leading indicators and economic activity. However, the sustainability of and strength of the recovery

remains uncertain and depends on the development of the pandemic and initiatives by business and governments to handle it.

During the second quarter, our adjusted net asset value increased by 14 percent. Our total shareholder return was 9 percent while the SIXRX return index gained 17 percent. During the first half of 2020, our adjusted net asset value grew by 3 percent, our total shareholder return was -2 percent while the SIXRX return index lost 4 percent.

Listed Companies

The total return of our listed companies was 19 percent during the quarter, with all companies contributing positively. Husqvarna, Sobi and Electrolux were the strongest performers.

We invested SEK 0.5bn in ABB, taking our year-to-date investments in the company to SEK 2.1bn.

Activity within the companies remained high. Right after the end of the quarter, ABB finalized the sale of Power Grids, paving the way for enhanced focus on the remaining business and significant share buybacks. Atlas Copco closed the strategic acquisition of ISRA VISION and Sobi entered a licensing agreement relating to a novel treatment of chronic refractory gout, further broadening its product portfolio.

Patricia Industries

Based on estimated market values, the total return for Patricia Industries was -2 percent. Earnings and currency had a negative impact, which was partly mitigated by multiple expansion.

As expected, following a strong first quarter, covid-19 meant the second quarter was more challenging for the major subsidiaries. For these companies in aggregate, organic sales declined by 19 percent, while EBITA fell 25 percent. In total, including our share of Three Scandinavia, EBITDA was down 18 percent. In line with expectations, Mölnlycke, Sarnova and Three Scandinavia showed more resilience than BraunAbility, Laborie, Permobil and Piab.

In this exceptional quarter, with sales down almost 20 percent, being able to preserv about 80 percent of the profit is a testimony to both resilience and agility. I am impressed by our management teams' decisiveness and speed in taking actions to adapt.

Organically, Mölnlycke's sales fell by 7 percent in constant currency. During the quarter, growth gradually improved and was positive in June. Profitability was almost in line with last year and cash flow was strong. New agreements related to personal protective equipment are expected to have a significant positive impact on sales during the remainder of 2020. Mölnlycke's overall sales growth is expected to be strong during the third quarter.

Sarnova's organic sales declined by 2 percent in constant currency, while margins improved.

Three Scandinavia reported service revenue growth of 4 percent and margins were in line with last year.

BraunAbility's organic sales declined by 53 percent in constant currency. Significant cost reductions partly mitigated the impact on profits.

Organic sales in Laborie declined by 45 percent in constant currency, driven by a significant decrease in elective procedures. The recently acquired Clinical Innovations performed well and helped support overall profit margins.

Organic sales in Permobil declined by 17 percent in constant currency. Good cost control partly offset the negative impact on margins from lower sales.

Piab's organic sales declined by 16 percent in constant currency. Compared to last year, the EBITA margin only declined by 3 percentage points to 24 percent, thanks to good cost control.

Investments in EQT

The value of our investments in EQT increased by 16 percent during the quarter, driven by a strong total return in EQT AB, while the value of our fund investments (reported with a one-quarter lag) declined. Net cash flow to Investor was SEK -1.6bn, due to drawdowns and no significant exits. Following a strategic review, EQT AB announced the sale of its Credit business. It was also communicated that the target fund size for its Infrastructure V fund is EUR 12.5bn.

Balance sheet and cash flow

After having paid our dividend of almost SEK 7bn in late June, our financial position remains strong, with leverage of 5 percent at the end of the quarter. This allows us to continue to support our companies and to act on potential attractive investment opportunities.

Going forward

In recent years, our companies have worked hard on securing agility and they entered the current crisis in good shape. Certainly, the crisis has had a severe impact on people and the global economy, but there are also many valuable lessons and insights to build upon. Companies will have to evaluate and potentially adjust business models, supply chains, customer offerings and ways of working. Succeeding in this work is important to grow market share, increase efficiency and strengthen resilience. Furthermore, we see that the crisis has accelerated the already strong trends of digitalization, automation and integration of sustainability into business operations. We will support our companies in capturing these opportunities.

Our strategy to build best-in-class companies remains firm. This is our way of creating long-term value for you, dear fellow shareholders.

Johan Forssell President & CEO

Net asset value overview

			Adjusted values			Reported values
	Number of	Ownership	Share of total	Value,	Value,	Value,	Value,
	shares	capital/votes (%)	assets (%)	SEK m	SEK m	SEK m	SEK m
	6/30 2020	6/30 2020	6/30 2020	6/30 2020	12/31 2019	6/30 2020	12/31 2019
Listed Companies
Atlas Copco	207 754 141	16.9/22.3	16	81 369	76 960	81 369	76 960
ABB	265 385 142	12.2/12.2	11	55 423	57 232	55 423	57 232
AstraZeneca	51 587 810	3.9/3.9	10	50 535	48 482	50 535	48 482
SEB	456 198 927	20.8/20.8	7	36 841	40 124	36 841	40 124
Epiroc	207 757 845	17.1/22.7	5	24 109	23 756	24 109	23 756
Sobi	107 594 165	35.9/35.9	5	23 150	16 584	23 150	16 584
Ericsson	256 104 764	7.7/22.8	4	23 041	20 052	23 041	20 052
Nasdaq	19 394 142	11.8/11.8	4	21 649	19 353	21 649	19 353
Saab	40 972 622	30.2/39.7	2	9 563	12 865	9 563	12 865
Wärtsilä	104 711 363	17.7/17.7	2	8 035	10 780	8 035	10 780
Electrolux	50 786 412	16.4/28.4	2	7 924	11 651	7 924	11 651
Husqvarna	97 052 157	16.8/33.1	1	7 383	7 252	7 383	7 252
Electrolux Professional	58 941 654	20.5/32.3	0	1 990	-	1 990	-
Total Listed Companies			68	351 013	345 089	351 013	345 089
Patricia Industries		Total exposure (%)
Subsidiaries
Mölnlycke1)		99	12	61 832	62 112	19 740	18 169
Permobil1)		98	3	12 942	11 685	3 810	3 810
Laborie		98	2	10 283	8 467	8 789	4 764
Sarnova		86	1	6 312	5 847	4 662	4 622
BraunAbility		95	1	5 111	5 686	2 024	2 091
Piab1)		97	1	4 428	4 829	5 430	5 591
Vectura		100	1	3 857	3 825	3 677	3 589
Grand Group		100	0	171	356	171	149
Total subsidiaries			20	104 936	102 806	48 302	42 785
Three Scandinavia		40/40	1	6 470	8 367	3 941	4 050
Financial Investments			1	3 207	4 310	3 207	4 310
Total Patricia Industries excl. cash			22	114 612	115 484	55 450	51 146
Total Patricia Industries incl. cash				128 927	136 381	69 765	72 043
Investments in EQT
EQT AB	174 288 016	18.1/18.3		29 141	18 954	29 141	18 954
Fund investments				19 702	18 294	19 702	18 294
Total Investments in EQT			9	48 843	37 248	48 843	37 248
Other Assets and Liabilities			0	-308	-840	-308	-840
Total Assets excl. cash Patricia Industries			100	514 160	496 981	454 998	432 643
Gross debt*				-36 862	-36 856	-36 862	-36 856
Gross cash*				13 652	24 894	13 652	24 894
Of which Patricia Industries				14 315	20 897	14 315	20 897
Net debt				-23 210	-11 962	-23 210	-11 962
Net Asset Value				490 950	485 019	431 788	420 681
Net Asset Value per share				641	634	564	550

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

Overview

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

Net asset value

During the first half of 2020, adjusted net asset value increased from SEK 485.0bn to SEK 491.0bn. The change in adjusted net asset value, with dividend added back, was 3 percent (16) during the period, of which 14 percent during the second quarter (6).

Reported net asset value increased from SEK 420.7bn to SEK 431.8bn. The change in reported net asset value, with dividend added back, was 4 percent (15) during the period, of which 16 percent during the second quarter (5).

Net debt and cash flow

Net debt totaled SEK 23,210m on June 30, 2020 (11,962), corresponding to leverage of 5.1 percent (2.8).

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

Gross cash amounted to SEK 13,652m and gross debt to SEK 36,862m as of June 30, 2020.

The average maturity of Investor AB's debt portfolio was 10.6 years on June 30, 2020 (11.1).

Investor's net debt
SEK m	H1 2020
Opening net debt	-11 962
Listed Companies
Dividends	4 717
Other capital distributions	21
Investments, net of proceeds	-3 382
Management cost	-54
Total	1 302
Patricia Industries
Proceeds	1 250
Investments	-4 943
Internal transfer to Investor	-2 938
Management cost	-136
Other1)	185
Total	-6 582
Investments in EQT
Proceeds (divestitures, fee surplus, carry and dividend)	2 581
Drawdowns (investments and management fees)	-3 279
Management cost	-5
Total	-704
Investor groupwide
Dividend to shareholders	-6 889
Internal transfer from Patricia Industries	2 938
Management cost	-59
Other2)	-1 255
Closing net debt	-23 210

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

Management cost

Investor's management cost amounted to SEK 126m during the second quarter 2020 (126).

As of June 30, 2020, rolling 4 quarters management cost amounted to 0.11 percent of the adjusted net asset value.

The Investor share

The price of the Investor A-share and B-share was SEK 487.20 and SEK 491.70 respectively on June 30, 2020, compared to SEK 506.50 and SEK 511.20 on December 31, 2019.

The total shareholder return (Class B-share) amounted to -2 percent during the first half of 2020 (21), of which 9 percent during the second quarter (9).

The SIXRX return index was -4 percent during the first half of 2020 (21), of which 17 percent during the second quarter (7).

Investor's market capitalization, excluding repurchased shares, was SEK 374,980m as of June 30, 2020 (389,770).

Listed Companies

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

Highlights during the quarter

• The total return amounted to 19 percent.
• We invested SEK 0.5bn in ABB.

Performance

Total return (excluding management costs) for Listed Companies amounted to 2 percent during the first half of 2020, of which 19 percent during the second quarter.

The SIXRX return index was -4 percent during the first half of 2020, of which 17 percent during the second quarter.

Total return, Listed Companies

Contribution to net asset value (adjusted and reported) amounted to SEK 7,225m during the first half of 2020 (44,188), of which SEK 54,821m during the second quarter (17,010).

Contribution to net asset value
SEK m	Q2 2020	H1 2020	H1 2019
Changes in value	53 597	2 563	36 617
Dividends	1 252	4 717	7 624
Management cost	-27	-54	-52
Total	54 821	7 225	44 188

Contribution to net asset value and total return

		Q2 2020		H1 2020
	Value, SEK m	Contribution, SEK m	Total return1) (%)	Contribution, SEK m	Total return1) (%)
Atlas Copco	81 369	13 441	19.7	5 136	6.8
ABB	55 423	9 045	19.7	-1 743	-2.2
AstraZeneca	50 535	5 004	11.0	2 998	6.4
SEB	36 841	6 197	20.2	-3 282	-8.2
Epiroc	24 109	4 014	19.9	602	2.7
Sobi	23 150	4 861	26.6	6 566	39.6
Ericsson	23 041	2 493	12.1	2 080	10.5
Nasdaq	21 649	3 177	17.2	2 461	12.9
Saab	9 563	1 807	23.3	-3 302	-25.7
Wärtsilä	8 035	290	3.7	-2 476	-23.3
Electrolux	7 924	1 639	26.1	-2 922	-26.9
Husqvarna	7 383	2 547	52.7	131	1.8
Electrolux Professional2)	1 990	333	20.0	1 030	127.9
Total	351 013	54 848	18.5	7 279	2.3

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

2) First day of trading March 23, 2020.

Dividends received

Dividends received totaled SEK 4,717m during the first half of 2020 (7,624), of which SEK 1,252m during the second quarter (3,176).

Dividends received, Listed Companies

Investments and divestments

Second quarter

2,600,000 shares were purchased in ABB for SEK 518m. 7-year options, with a strike price of 120 percent of the share price, in Wärtsilä and Electrolux Professional were sold to the chairpersons in the respective companies. The total consideration was SEK 8m.

Earlier during the year

7,870,000 shares were purchased in ABB for SEK 1,600m. 16,074,964 shares were purchased in Ericsson for SEK 1,101m. 8,155,242 shares were purchased in Electrolux Professional for SEK 160m.

Patricia Industries

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

Highlights during the quarter

• Based on estimated market values, the total return for Patricia Industries amounted to -2 percent (-2 percent including cash).
• Organic sales growth for the major subsidiaries was -19 percent. EBITA declined by 25 percent.
• All companies took decisive actions to adapt operations to the changed market environment.

Operating performance

During the first half of 2020, sales growth for the major subsidiaries (excluding Aleris during the first half of 2019) amounted to -2 percent. Organic growth was -7 percent in constant currency. EBITA amounted to SEK 2,856m, a decline of 13 percent. Adjusting for transaction and integration costs related to Laborie's acquisition of Clinical Innovations, Piab's acquisition of TAWI Group and CEO transition costs in Mölnlycke, EBITA declined by 8 percent.

During the second quarter 2020, sales growth amounted to -16 percent. Organic growth was -19 percent in constant currency. EBITA amounted to SEK 1,320, a decrease of 25 percent. In total, EBITDA for our subsidiaries and our 40 percent ownership in Three Scandinavia decreased by 18 percent.

Major subsidiaries, performance

Q2 2020 SEK m Sales Org. growth, constant currency EBITDA EBITDA (%) EBITA1) EBITA, (%) Operating cash flow Mölnlycke 3 820 -7 1 099 28.8 943 24.7 1 119 Permobil 912 -17 165 18.2 119 13.1 203 Laborie 418 -45 72 17.3 57 13.7 35 Sarnova 1 602 -2 207 12.9 186 11.6 49 BraunAbility 889 -53 13 1.4 -23 -2.6 -68 Piab 342 -16 94 27.5 82 23.9 102 Vectura 68 -4 43 63.1 11 16.6 -740 Grand Group 44 -77 -24 -53.5 -55 -125.8 -49 Total 8 095 1 670 20.6 1 320 16.3 650 Reported growth y/y, % -16 -21 -25 Organic growth, y/y, % -19

H1 2020

		Org. growth, constant					Operating
SEK m	Sales	currency	EBITDA	EBITDA (%)	EBITA1)	EBITA, (%)	cash flow
Mölnlycke	8 094	0	2 328	28.8	1 995	24.6	1 826
Permobil	1 981	-7	381	19.2	288	14.5	451
Laborie	955	-25	45	4.7	19	2.0	-12
Sarnova	3 428	6	423	12.3	383	11.2	194
BraunAbility	2 559	-26	145	5.7	73	2.9	-119
Piab	742	-9	194	26.2	170	23.0	198
Vectura	131	4	74	56.2	18	14.0	-851
Grand Group	145	-53	-26	-18.3	-91	-62.6	-84
Total	18 034		3 563	19.8	2 856	15.8	1 602
Reported growth y/y, %	-2		-10		-13
Organic growth, y/y, %	-7

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

Patricia Industries, adjusted values, June 30, 2020

Performance

Contribution to adjusted net asset value amounted to SEK -4,680m during the first half of 2020 (12,837), of which SEK -2,712m during the second quarter (6,221).

Contribution to adjusted net asset value

SEK m	Q2 2020	H1 2020	H1 2019
Changes in value	-2 652	-4 565	13 004
Management cost	-69	-136	-135
Other	9	21	-33
Total	-2 712	-4 680	12 837

Based on estimated market values, the total return for Patricia Industries, excluding cash, amounted to -4 percent (-3 percent including cash) during the first half of 2020, of which -2 percent (-2 percent including cash) during the second quarter. During the second quarter, earnings and currency impacted negatively, mitigated by multiple expansion.

For more information on valuation, see page 31.

Investments and divestments

Second quarter

Investments amounted to SEK 610m. Divestments amounted to SEK 741m.

Earlier during the year

Investments totaled SEK 4,333m, mainly related to Laborie's acquisition of Clinical Innovations. Divestments amounted to SEK 179m.

Patricia Industries – valuation overview

Distributions received

During the first half of 2020, distributions to Patricia Industries amounted to SEK 330m, of which SEK 198m from Three Scandinavia during the second quarter.

Distribution to Patricia Industries

Patricia Industries, net cash

SEK m	Q2 2020	H1 2020	H1 2019
Beginning of period	14 059	20 897	13 017
Net cash flow	329	-3 693	2 585
Internal transfer to Investor	-	-2 938	-2 912
Other1)	-73	49	-62
End of period	14 315	14 315	12 628

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

	Estimated market values, SEK m, 6/30, 2020	Change Q2 2020 vs. Q1 2020 SEK m	Major drivers	Comments1)
Subsidiaries
Mölnlycke	61 832	-1 377	Currency and lower profit impacted negatively, multiples and cash flow generation impacted positively	Applied EV/adj. LTM EBITDA 16.3x.
Permobil	12 942	1 789	Higher multiples and cash flow impacted positively, lower profit impacted negatively	Applied EV/reported LTM EBITDA 18.8x
Laborie	10 283	-699	Lower profit and currency impacted negatively, higher multiples impacted positively	Applied EV/adj. LTM EBITDA 21.3x.
Sarnova	6 312	-541	Currency and lower multiples impacted negatively, higher profit impacted positively	Applied EV/adj. LTM EBITDA 12.9x
BraunAbility	5 111	-839	Lower profit and currency impacted negatively, higher multiples impacted positively.	Applied EV/adj. LTM EBITDA 14.9x
Piab	4 428	182	Higher multiples and cash flow impacted positively, lower profit impacted negatively	Applied EV/adj. LTM EBITDA 14.5x
Vectura	3 857	226		Estimated market value of the property portfolio less debt and cost
Grand Group	171	21	Valued at book value due to covid 19 situation, SEK 100m capital injection in the quarter	Book value
Partner-owned investments
Three Scandinavia	6 470	-1 001	Lower multiples impacted negatively, higher profit impacted positively. SEK 198m capital distribution during the quarter	Applied EV/adj. LTM EBITDA 5.8x.
Financial Investments	3 207	-743		Multiple or third-party valuation, share price
Total	114 612
Total, including cash	128 927

1) Due to the significant impact of covid-19, multiples have, when appropriate, been adjusted to reflect different timing of earnings releases between the companies within Patricia Industries and peers.

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

Activities during the quarter

Group

• Organic sales growth amounted to -7 percent in constant currency. All regions contributed negatively, except Emerging Markets. The decline was primarily caused by postponed or cancelled elective procedures and restricted access to hospitals. During the quarter, growth gradually improved and was positive in June.
• New customer agreements within Personal Protective Equipment are expected to add significant sales during the remainder of 2020. On the Mölnlycke group level, these sales additions are expected to result in strong sales growth during the third quarter 2020.
• Despite lower sales, the EBITA margin was almost in line with last year, due to good cost control.
• Cash flow generation was strong.
• Zlatko Rihter, currently CEO of Cellavision, was appointed new CEO of Mölnlycke.

Wound Care

• Organic growth amounted to -8 percent in constant currency.
• Products related to elective procedures were negatively impacted by covid-19. In addition, products related to chronic wounds were impacted by restricted access to nurses and doctors.

Surgical

• Organic growth amounted to -5 percent in constant currency.
• Growth driven by Personal Protective Equipment did not fully offset the decline in Mölnlycke Procedure® Trays and Surgical Drapes that were negatively impacted by the decline in elective procedures as an effect of covid-19.

As of the first quarter 2019, IFRS 16 is implemented.

Key figures, Mölnlycke
Income statement items,	2020		2019	Last 12
EUR m	Q2	H1	Q2		H1 months
Sales	358	759	386	760	1 542
EBITDA	103	218	114	221	448
EBITA	89	187	100	192	386
Sales growth, %	-7	0	8	7
Organic growth,
constant currency, %	-7	0	5	5
EBITDA, %	28.8	28.8	29.6	29.1	29.0
EBITA, %	24.7	24.6	25.8	25.3	25.0
Cash flow items, EUR m	Q2	H1	Q2	H1
EBITDA	103	218	114	221
IFRS 16 lease payments	-5	-10	-5	-10
Change in working capital	14	-22	-12	-50
Capital expenditures	-8	-15	-10	-16
Operating cash flow	105	171	87	145
Acquisitions/divestments	-	-2	-	-65
Shareholder contribution/distribution	-	-	-175	-175
Other1)	-31	-74	-18	-114
Increase(-)/decrease(+) in net
debt	74	96	-106	-209
Key ratios
Working capital/sales, %					14
Capital expenditures/sales, %					3
Balance sheet items, EUR m		6/30 2020		12/31 2019
Net debt		1 375		1 471
		6/30 2020		6/30 2019
Number of employees		8 110		7 965

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

Mölnlycke, distribution of sales and organic sales growth

	Share of sales, (%) Last 12 months	Organic growth, constant currency, (%) Q2 2020
Wound Care	54	-8
Surgical	46	-5
Total	100	-7

Mölnlycke, distribution of sales by geography

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

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

Activities during the quarter

• Organic sales growth amounted to -17 percent in constant currency. As healthcare systems introduced social distancing measures to protect Permobil's end users, a covid-19 risk group, the possibility to market and sell products was severely restricted across all regions. Despite this, APAC reported continued strong growth. Market activity increased in all regions towards the end of the quarter.
• The EBITA margin declined compared to last year as a result of lower sales. Cost reduction initiatives mitigated the margin drop.
• Permobil introduced the M1 power wheelchair in EMEA.

Key figures, Permobil

Income statement items,	2020		2019	Last 12
SEK m	Q2	H1	Q2		H1 months
Sales	912	1 981	1 086	2 091	4 336
EBITDA	165	381	229	427	878
EBITA	119	288	179	331	683
Sales growth, %	-16	-5	2	6
Organic growth,
constant currency, %	-17	-7	-3	-1
EBITDA, %	18.2	19.2	21.0	20.4	20.2
EBITA, %	13.1	14.5	16.5	15.8	15.7
Cash flow items, SEK m	Q2	H1	Q2	H1
EBITDA	165	381	229	427
IFRS 16 lease payments	-14	-26	-12	-23
Change in working capital	81	166	43	74
Capital expenditures	-30	-70	-35	-58
Operating cash flow	203	451	223	420
Acquisitions/divestments	-	-47	-	-
Shareholder
contribution/distribution	-	-	-120	-120
Other1)	221	-140	-106	-476
Increase(-)/decrease(+) in net
debt	423	264	-3	-177
Key ratios
Working capital/sales, %					18
Capital expenditures/sales, %					3
Balance sheet items, SEK m		6/30 2020		12/31 2019
Net debt		3 286		3 549
		6/30 2020		6/30 2019
Number of employees		1 600		1 580

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

A provider of innovative capital equipment and consumables for the diagnosis and treatment of urologic and gastrointestinal disorders. Read more at www.laborie.com

Activities during the quarter

• Organic sales growth amounted to -45 percent in constant currency due to a significant decline in both elective urology and gastrointestinal procedures due to covid-19. While sales grew sequentially during the quarter, June remained well below the previous year's level. The maternal and child health business, added through the acquisition of Clinical Innovations, was less impacted by covid-19 and remained close to last year's level.
• The EBITA margin declined compared to last year as a result of the sharp organic sales drop, but was partly offset by cost containment measures and strong performance in the maternal and child health business.

Key figures, Laborie

Income statement items,	2020		2019		Last 12
USD m	Q2	H1	Q2		H1 months
Sales	43	99	50	99	205
EBITDA	7	5	13	24	37
EBITA	6	2	12	21	32
Sales growth, %	-14	0	8	24
Organic growth, constant currency, %	-45	-25	1	4
EBITDA, %	17.3	4.7	26.4	23.8	18.2
EBITA, %	13.7	2.0	23.1	21.3	15.8
Cash flow items, USD m	Q2	H1	Q2	H1
EBITDA	7	5	13	24
IFRS 16 lease payments	0	-1	0	-1
Change in working capital	-1	3	0	-6
Capital expenditures	-3	-8	-5	-10
Operating cash flow	4	-1	8	7
Acquisitions/divestments	-	-524	-	-3
Shareholder
contribution/distribution	-	450	-	-
Other1)	-6	-15	-9	-22
Increase(-)/decrease(+) in net debt	-3	-90	-1	-18
Key ratios
Working capital/sales, %					16
Capital expenditures/sales, %					8
Balance sheet items, USD m		6/30 2020		12/31 2019
Net debt		379		288
		6/30 2020		6/30 2019
Number of employees		820		650

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

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

Activities during the quarter

• Organic sales growth amounted to -2 percent in constant currency. Excluding the reduction in sales related to exiting the Ambu agreement, organic sales growth was positive. The covid-19 situation positively impacted the Emergency Preparedness unit with increased demand for personal protective equipment and negatively impacted the Acute unit due to the reduction of hospital-based elective procedures.
• The EBITA margin expanded but continued to be impacted by investments in commercial resources, digital platform enhancements and warehouse optimization.

Key figures, Sarnova

Income statement items,	2020		2019	Last 12
USD m	Q2	H1	Q2		H1 months
Sales	165	354	166	328	673
EBITDA	21	44	19	38	87
EBITA	19	40	17	34	79
Sales growth, %	-1	8	12	8
Organic growth,
constant currency, %	-2	6	8	5
EBITDA, %	12.9	12.3	11.6	11.6	13.0
EBITA, %	11.6	11.2	10.4	10.3	11.7
Cash flow items, USD m	Q2	H1	Q2	H1
EBITDA	21	44	19	38
IFRS 16 lease payments	-1	-2	-1	-2
Change in working capital	-12	-18	0	-7
Capital expenditures	-3	-4	-2	-4
Operating cash flow	5	20	16	26
Acquisitions/divestments	-	-	-	-17
Shareholder contribution/distribution	-	-	-	-
Other1)	-5	0	-7	-24
Increase(-)/decrease(+) in net
debt	1	20	10	-15
Key ratios
Working capital/sales, %					15
Capital expenditures/sales, %					0
Balance sheet items, USD m		6/30 2020		12/31 2019
Net debt		266		287
		6/30 2020		6/30 2019
Number of employees		670		650

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

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

Activities during the quarter

• Organic sales growth amounted to -53 percent in constant currency. The covid-19 pandemic led to nationwide lockdowns and decreased customer demand.
• The EBITA margin was negatively impacted by sharply lower sales. The impact on profitability was partially offset by significant cost containment measures.

Key figures, BraunAbility

Income statement items,	2020		2019		Last 12
USD m	Q2	H1	Q2		H1 months
Sales	92	264	190	350	648
EBITDA	1	15	20	34	51
EBITA	-2	8	17	27	37
Sales growth, %	-52	-25	13	17
Organic growth,
constant currency, %	-53	-26	3	3
EBITDA, %	1.4	5.7	10.7	9.7	7.9
EBITA, %	-2.6	2.9	8.9	7.8	5.7
Cash flow items, USD m	Q2	H1	Q2	H1
EBITDA	1	15	20	34
IFRS 16 lease payments	-2	-4	-2	-4
Change in working capital	-5	-20	5	-11
Capital expenditures	-1	-3	-1	-2
Operating cash flow	-7	-12	22	18
Acquisitions/divestments	-	-4	-5	-5
Shareholder
contribution/distribution	-	-	-	-
Other1)	-1	-7	-3	-29
Increase(-)/decrease(+) in net
debt	-8	-23	14	-15
Key ratios
Working capital/sales, %					7
Capital expenditures/sales, %					1
Balance sheet items, USD m		6/30 2020		12/31 2019
Net debt		216		193
		6/30 2020		6/30 2019
Number of employees		1 655		1 700

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

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

Activities during the quarter

• Organic sales growth amounted to -16 percent in constant currency, as many customer groups were impacted by covid-19 . APAC reported solid growth driven by China, whereas Americas and Europe declined. Vacuum Conveying grew while the other divisions declined. The company experienced increased customer activity towards the end of the quarter.
• Despite the significant organic sales drop, the EBITA margin amounted to 24 percent, supported by active cost management.
• Piab launched the piFLOW®i/f range of vacuum conveyors that allow for larger batch volumes and can be used in general industry, industrial food and chemical industry applications.

Key figures, Piab

Income statement items,	2020		2019	Last 12
SEK m	Q2	H1	Q2		H1 months
Sales	342	742	315	627	1 382
EBITDA	94	194	92	196	377
EBITA	82	170	84	178	333
Sales growth, %	9	18	2	3
Organic growth,
constant currency, %	-16	-9	-3	-2
EBITDA, %	27.5	26.2	29.2	31.3	27.3
EBITA, %	23.9	23.0	26.7	28.5	24.1
Cash flow items, SEK m	Q2	H1	Q2	H1
EBITDA	94	194	92	196
IFRS 16 lease payments	-6	-12	-5	-11
Change in working capital	24	37	8	-6
Capital expenditures	-10	-22	-12	-23
Operating cash flow	102	198	83	156
Acquisitions/divestments	-	-980	-	-11
Shareholder
contribution/distribution	-	-	-	-
Other1)	106	-69	-25	-127
Increase(-)/decrease(+) in net
debt	208	-852	58	18
Key ratios
Working capital/sales, %					18
Capital expenditures/sales, %					3
Balance sheet items, SEK m		6/30 2020		12/31 2019
Net debt		1 839		987
		6/30 2020		6/30 2019
Number of employees		660		485
1) Includes effects of exchange rate changes, interest, tax and change in lease

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

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

Activities during the quarter

• Sales growth amounted to -4 percent. The revenue-based part of the rental income from Grand Hôtel was zero in the quarter due to covid-19. All other rental income remained resilient.
• Vectura completed the acquisition of Bromma hospital in the quarter. There is significant development potential as the property and zoning plan allow for construction of care and elderly housing on top of the hospital floors.

Key figures, Vectura

Income statement items,	2020		2019	Last 12
SEK m	Q2	H1	Q2		H1 months
Sales	68	131	71	126	279
EBITDA	43	74	47	82	164
EBITDA, %	63.1	56.2	66.2	65.4	58.9
EBITA adj.1)	11	18	26	42	51
EBITA adj. %	16.6	14.0	36.0	33.6	18.2
Balance sheet items, SEK m		6/30 2020		12/31 2019
Net debt		3 551		2 662
		6/30 2020		12/31 2019
Real estate market value		8 178		7 282

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

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

Activities during the quarter

• Organic sales growth amounted to -77 percent and continued to be significantly impacted by the decrease in tourism and business travelling due to covid-19.
• The EBITA margin was negative as a result of the low sales.
• Patricia Industries contributed SEK 100m in funding to Grand Group to support the company in the current market situation.

Key figures, Grand Group

Income statement items,	2020		2019		Last 12
SEK m	Q2	H1	Q2		H1 months
Sales	44	145	182	301	523
EBITDA	-24	-26	41	49	66
EBITA	-55	-91	7	-15	-64
Org. growth, constant currency, %	-77	-53	5	8
EBITDA, %	-53.5	-18.3	22.3	16.4	12.6
EBITA, %	-125.8	-62.6	3.6	-5.1	-12.2
Balance sheet items, SEK m		6/30 2020		12/31 2019
Net debt		847		893

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

Activities during the quarter

• The subscription base increased by 2,000 during the quarter. In Sweden, the subscription base increased by 37,000, while Three Denmark disconnected 41,000 inactive SIM cards. This impacted net subscriber additions negatively in the quarter but will have a positive impact on profitability.
• Service revenue increased by 4 percent and EBITDA increased by 3 percent. Covid-19 impact continued to be relatively limited.
• Three Sweden launched Sweden's largest 5G network covering six cities with 480 sites.
• The company distributed SEK 494m to its owners, of which SEK 198m to Patricia Industries.

Key figures, Three Scandinavia

	2020		2019		Last 12
Income statement items	Q2	H1	Q2		H1 months
Sales, SEK m	2 620	5 228	2 586	5 051	10 882
Sweden, SEK m	1 649	3 294	1 675	3 274	6 846
Denmark, DKK m	678	1 351	641	1 262	2 825
Service revenue1), SEK m	1 688	3 391	1 617	3 206	6 741
Sweden, SEK m	1 028	2 059	993	1 979	4 083
Denmark, DKK m	461	930	438	872	1 859
EBITDA, SEK m	960	1 985	928	1 877	4 028
Sweden, SEK m	684	1 380	653	1 301	2 740
Denmark, DKK m	193	423	194	410	901
EBITDA, %	36.6	38.0	35.9	37.2	37.0
Sweden	41.5	41.9	39.0	39.7	40.0
Denmark	28.4	31.3	30.3	32.4	31.9
Key ratios
Capital expenditures/sales, %					14
Balance sheet items, SEK m		6/30 2020		12/31 2019
Net debt		6 950		6 934
		6/30 2020		6/30 2019
Number of employees		1 755		1 870
Other key figures		6/30 2020		6/30 2019
Subscriptions		3 592 000		3 474 000
Sweden		2 137 000		2 044 000
Denmark		1 455 000		1 430 000

1) Mobile service revenue excluding interconnect revenue.

Financial Investments

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

Change in net asset value, Financial Investments

SEK m	Q2 2020	H1 2020	H1 2019
Net asset value, beginning of period	3 949	4 310	7 277
Investments	25	48	233
Divestments/distributions	-741	-920	-2 078
Exit proceeds pending settlement	-	-	1 667
Changes in value	-27	-232	252
Net asset value, end of period	3 207	3 207	7 351

Activities during the quarter

• The holdings in Madrague and Newron were fully exited.

Five largest Financial Investments, June 30, 2020

Company	Region	Business	Listed/ unlisted	Reported value, SEK m
CDP Holding	Asia	IT	Unlisted	470
Sutter Hill Ventures U.S.		Venture fund Unlisted		332
CallFire	U.S.	IT	Unlisted	324
Atlas Antibodies	Europe	Healthcare	Unlisted	322
Affibody	Europe	Healthcare	Unlisted	226
Total				1 675

As of June 30, 2020, the five largest investments represented 52 percent of the total value of the Financial Investments.

European, U.S. and Asian holdings represented 17, 69 and 14 percent respectively of the total value of Financial Investments.

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

Investments in EQT

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

Highlights during the quarter

• The reported value change of Investor's investments in EQT was 16 percent.
• Net cash flow to Investor amounted to SEK -1.6bn.

Performance

Contribution to net asset value (adjusted and reported) amounted to SEK 10,892m during the first half of 2020 (3,411), of which SEK 6,614m during the second quarter (1,937).

The reported value change of Investor's investments in EQT was 29 percent during the first half of 2020, of which 29 percent in constant currency. During the second quarter, the value change was 16 percent, of which 19 percent in constant currency.

Net cash flow to Investor amounted to SEK -1,626m during the second quarter.

Investments in EQT AB

Contribution to net asset value amounted to SEK 8,723m, corresponding to a total shareholder return of 42 percent, during the second quarter.

Investments in EQT funds

Following the IPO of EQT AB in September 2019, Investor reports the value change on its EQT fund investments with a one-quarter lag. Consequently, the information related to Investor's investments in EQT funds in this report is presented as of March 31, 2020.

The reported value change of Investor's investments in EQT funds amounted to -11 percent, of which -5 percent in constant currency.

Investor's total outstanding commitments to EQT funds amounted to SEK 13.6bn as of June 30, 2020 (11.3).

Change in adjusted net asset value, EQT
SEK m	Q2 2020	H1 2020	H1 2019
Net asset value, beginning of period	40 603	37 248	20 828
Contribution to net asset value	6 614	10 892	3 411
Drawdowns (investments, management fees and
management cost) Proceeds to Investor (divestitures,	1 906	3 284	3 841
fee surplus, carry and dividend)	-280	-2 581	-3 966
Net asset value, end of period	48 843	48 843	24 114

Investor's investments in EQT, key figures overview

	Q2	Q1	FY	Q4	Q3	Q2	Q1	FY	Q4	Q3	Q2
SEK m	2020	2020	2019	2019	2019	2019	2019	2018	2018	2018	2018
Reported value	48 843	40 603	37 248	37 248	36 527	24 114	21 562	20 828	20 828	18 377	19 406
Reported value
change, %	16	11	103	9	60	9	7	30	14	-4	11
Value change,
constant currency, %	19	8	101	11	59	8	6	25	14	-2	9
Drawdowns from
Investor	1 906	1 378	7 266	514	2 911	2 130	1 711	4 023	1 464	1 076	1 088
Proceeds to Investor	280	2 301	12 227	3 207	5 054	1 514	2 451	4 228	1 522	1 414	383
Net cash flow to
Investor	-1 626	923	4 961	2 694	2 143	-615	740	205	58	338	-705

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

			Investor
	Fund size	EUR m Share (%)	Outstanding commitment SEK m	Reported value SEK m
Fully invested funds2)	25 820		2 069	9 597
EQT VIII	10 750	5	2 533	3 408
EQT Infrastructure IV	9 100	3	1 138	1 593
EQT Credit
Opportunities III	1 272	10	551	711
EQT Ventures3)	461	11	141	510
EQT Ventures II	619	3	143	44
EQT Midmarket
Asia III	630	27	814	1 046
EQT Midmarket US	616	30	216	1 292
EQT Midmarket Europe	1 616	9	700	1 086
EQT Real Estate I	373	18	317	374
EQT new funds			4 987	41
Total fund investments	51 256		13 609	19 702
EQT AB		18.1/18.34)		29 141

Total investments in EQT 48 843 1) Following the IPO of EQT AB in September 2019, Investor's investments in EQT

funds are reported with a one-quarter lag. 2) EQT V, EQT VI, EQT VII, EQT Expansion Capital II, EQT Greater China II, EQT

Infrastructure I, II and III, EQT Credit Fund II, EQT Mid Market. 3) Fund commitment excluding the EQT Ventures Co-Investment Schemes and the

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

Investor Group

Net debt

Net debt totaled SEK 23,210m on June 30, 2020 (11,962). Debt financing of the subsidiaries within Patricia Industries is arranged without guarantees from Investor and hence not included in Investor's net debt. Pending dividends from investments and approved but not yet paid dividend to shareholders are not included in Investor's net debt either.

Net debt, June 30, 2020

SEK m	Consolidated balance sheet	Deductions related to Patricia Industries	Investor's net debt
Other financial investments	5 107	-173	4 934
Cash, bank and short term investments Receivables included	16 626	-7 908	8 718
in net debt	2 856	-	2 856
Interest bearing debt	-78 365	38 758	-39 607
Provision for pensions	-1 111	999	-112
Total	-54 887	31 677	-23 210

Investor's gross cash amounted to SEK 13,652m as of June 30, 2020 (24,894). The short-term investments are invested conservatively, taking into account the riskadjusted return profile. Investor's gross debt, excluding pension liabilities, amounted to SEK 36,750m as of June 30, 2020 (36,743).

The average maturity of Investor AB's debt portfolio was 10.6 years on June 30, 2020 (11.1), excluding the debt of Mölnlycke, Laborie, Permobil, BraunAbility, Grand Group, Vectura, Sarnova and Piab.

Debt maturity profile, June 30, 2020

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

Net financial items, H1 2020

SEK m	Group - Net financial items	Deductions related to Patricia Industries	Investor's net financial items
Interest income	5	-2	3
Interest expenses	-1 067	571	-496
Results from revaluation of loans, swaps and short-term
investments	153	-87	66
Foreign exchange result	-111	159	48
Other	-874	806	-68
Total	-1 893	1 446	-447

Parent Company

Share capital

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

Share structure

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

On June 30, 2020, Investor owned a total of 1,703,528 of its own shares (1,847,630).

Results and investments

The Parent Company's result after financial items was SEK 4,388m (40,584). The result is mainly related to Listed Companies which contributed to the result with dividends amounting to SEK 4,284m (7,195) and value changes of SEK 3,009m (34,310).

During the first half of 2020, the Parent Company invested SEK 9,750m in financial assets (2,592), of which SEK 6,100m in Group companies (500) and purchases in Listed Companies of SEK 3,380m (2,091). By the end of the period, Shareholder's equity totaled SEK 327,198m (329,661).

Other

Annual General Meeting

Investor AB's Annual General Meeting on June 17, 2020 , approved the board's proposal of a SEK 9.00 per share dividend for the fiscal year 2019. Depending on the development in the business environment as well as dividend decisions in the portfolio companies, the Board of Directors will assess a potential second dividend installment later in the year, in which case the Board will call an Extra General Meeting.

Acquisitions (business combinations)

Laborie's acquisition of Clinical Innovations

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

Transaction related costs amounted to SEK 57m and derive from external legal fees and due diligence expenses. These costs have been included in the line item Administrative, research and development and other operating cost in the Group's consolidated income statement.

For the period from the acquisition date until June 30, 2020, Clinical Innovations contributed net sales of SEK 257m and profit/loss of SEK -23m to the Group's result. If the acquisition had occurred on January 1, 2020, management estimates that consolidated net sales for the Group would have increased by SEK 120m and consolidated profit/loss for the period would have decreased by SEK 6m.

Piab's acquisition of TAWI

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

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

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

For the period from the acquisition date until June 30, 2020, TAWI Group contributed net sales of SEK 151m and profit/loss of SEK 12m to the Group's result.

Other acquisitions

During the period, BraunAbility and Permobil made a total of two acquisitions. The aggregate purchase price amounts to SEK 90m and goodwill amounts to SEK 80m. For the period from the acquisition dates until June 30, 2020, the acquired entities contributed net sales of SEK 26m and profit of SEK -1m to the Group's result.

	Clinical
SEK m	Innovations	TAWI	Others	Total
Intangible assets	2 758	417	1	3 175
Property, plant and
equipment	63	26	7	96
Other financial
investments		11		11
Inventories	71	63	14	148
Trade receivables	134	78	4	216
Other current
receivables	53	9	1	63
Cash and cash
equivalents	72	52	3	128
Long-term interest
bearing liabilities	-70	-29	-1	-100
Deferred tax liabilities	-499	-100		-599
Other liabilities	-191	-44	-19	-254
Net identifiable assets
and liabilities	2 391	482	11	2 883
Consolidated goodwill	2 964	527	80	3 571
Consideration	5 355	1 009	90	6 454

Pledged assets and contingent liabilities

Total pledged assets amount to SEK 18.4bn (14.4), of which SEK 14.6bn (10.7) refers to pledged assets in the subsidiaries BraunAbility, Laborie and Sarnova, related to outstanding loans corresponding to SEK 1.8bn, SEK 3.7bn and SEK 2.7bn. The increase in pledged assets mainly relates to increased assets in Laborie.

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

Risks and uncertainties

The main risks that the Group and the Parent Company are exposed to are primarily related to the value changes of the listed assets due to market price fluctuations. The development of the global economy is an important uncertainty factor in assessment of near-term market fluctuations. The uncertainty is currently unusually high due to the development of the covid-19 pandemic. The development of the financial markets also affects the various unlisted holdings' businesses and opportunities for new investments and divestments.

Investor and its subsidiaries are exposed to commercial risks and financial risks, such as share price risks, interest rate risks and currency risks. In addition, the subsidiaries, through their business activities within respective sector, also are exposed to legal/regulatory risks and political risks, for example political decisions on healthcare budgets and industry regulations.

Whatever the economic situation in the world, operational risk management requires a continued high level of awareness and focused work to mitigate current risks in line with stated policies and instructions.

Investor's risk management, risks and uncertainties are described in detail in the Annual Report, (Administration report and Note 3).

Accounting policies

For the Group, this Interim Report is prepared in accordance with IAS 34 Interim Financial Reporting and applicable regulations in the Swedish Annual Accounts Act, and for the Parent Company in accordance with Sweden's Annual Accounts Act, chapter 9 Interim report. The accounting policies that have been applied for the Group and Parent Company, are in agreement with the accounting policies used in preparation of the company's most recent annual report.

Alternative Performance Measures

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

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

Reconciliations to the financial statements for the APMs that are not directly identifiable from the financial statements and considered significant to specify, are disclosed on page 28. Reconciliations of APMs for individual subsidiaries or business areas are not disclosed, since the purpose of these are to give deeper financial information without being directly linked to the financial information for the Group, that is presented according to the applicable financial reporting framework.

Roundings

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

Financial calendar

Oct. 19, 2020	Interim Management Statement January-September 2020
Nov. 13, 2020	Capital Markets Day
Jan. 21, 2021	Year-End Report 2020
Apr. 20, 2021	Interim Management Statement January-March 2021
Jul. 15, 2021	Interim Report January-June 2021

For more information

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

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

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

Address

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

Ticker codes

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

Information about Investor is also available on LinkedIn.

This information is information that Investor AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 08:15 CET on July 17, 2020.

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

The Board of Directors declares that the six-month Interim Report provides a true and fair overview of the Parent Company's and Group's operations, their financial position and performance, and describes material risks and uncertainties facing the Parent Company and other companies in the Group.

Stockholm, July 17, 2020

Jacob Wallenberg Chairman

Director Director Director

Gunnar Brock Sara Mazur Magdalena Gerger

Tom Johnstone, CBE Grace Reksten Skaugen Marcus Wallenberg Director Director Vice Chairman

Director Director

Hans Stråberg Lena Treschow Torell

Johan Forssell President and Chief Executive Officer Director

Review Report

Introduction

We have reviewed the interim report of Investor AB (publ), corporate identity number 556013-8298, for the period January 1- June 30, 2020. The Board of Directors and the President are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of Review

We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review has a different focus and is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (ISA) and other generally accepted auditing practices. The procedures performed in a review do not enable us to obtain a level of assurance that would

make us aware of all significant matters that might be identified in an audit.

Therefore, the conclusion expressed based on a review does not give the same level of assurance as a conclusion expressed based on an audit.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not, in all material respects, prepared for the Group in accordance with IAS 34 and the Annual Accounts Act, and for the Parent Company in accordance with the Annual Accounts Act.

Stockholm, July 17, 2020

Deloitte AB

For signature, please see Swedish version

Jonas Ståhlberg

Authorized Public Accountant

Consolidated Income Statement, in summary
SEK m	H1 2020	H1 2019	Q2 2020	Q2 2019
Dividends	4 908	7 744	1 443	3 296
Other operating income	-	0	-	0
Changes in value	13 310	40 056	61 640	15 327
Net sales	18 194	21 293	8 215	10 967
Cost of goods and services sold	-9 872	-12 533	-4 434	-6 474
Sales and marketing cost	-3 002	-3 018	-1 378	-1 519
Administrative, research and development and other operating cost	-3 397	-4 558	-1 520	-2 378
Management cost	-253	-249	-126	-126
Share of results of associates	183	186	78	93
Operating profit/loss	20 070	48 921	63 919	19 186
Net financial items	-1 893	-1 511	521	-815
Profit/loss before tax	18 177	47 410	64 440	18 370
Income taxes	-271	-524	-93	-292
Profit/loss for the period	17 906	46 886	64 347	18 078
Attributable to:
Owners of the Parent Company	17 951	46 886	64 366	18 073
Non-controlling interest	-45	0	-19	5
Profit/loss for the period	17 906	46 886	64 347	18 078
Basic earnings per share, SEK	23.45	61.28	84.09	23.62
Diluted earnings per share, SEK	23.44	61.24	84.04	23.60

Consolidated Statement of Comprehensive Income, in summary

SEK m	H1 2020	H1 2019	Q2 2020	Q2 2019
Profit/loss for the period	17 906	46 886	64 347	18 078
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	-	-	-	-
Re-measurements of defined benefit plans	8	-	8	-
Items that may be recycled to profit/loss for the period
Cash flow hedges	-106	-14	24	-13
Hedging costs	65	70	-65	-21
Foreign currency translation adjustment	6	1 794	-3 653	505
Share of other comprehensive income of associates	36	54	-72	31
Total other comprehensive income for the period	10	1 904	-3 758	502
Total comprehensive income for the period	17 916	48 790	60 589	18 580
Attributable to:
Owners of the Parent Company	17 961	48 788	60 614	18 575
Non-controlling interest	-45	2	-25	6
Total comprehensive income for the period	17 916	48 790	60 589	18 580

Consolidated Balance Sheet, in summary
SEK m	6/30 2020	12/31 2019	6/30 2019
ASSETS
Goodwill	44 998	41 486	43 732
Other intangible assets	26 428	23 999	24 814
Property, plant and equipment	13 875	12 983	13 595
Shares and participations	407 079	390 945	343 400
Other financial investments	5 107	8 188	5 996
Long-term receivables included in net debt	2 856	2 653	2 596
Other long-term receivables	2 641	1 759	1 920
Total non-current assets	502 984	482 013	436 052
Inventories	5 964	4 915	4 983
Shares and participations in trading operation	295	371	267
Short-term receivables included in net debt	-	-	1
Other current receivables	6 524	6 539	9 085
Cash, bank and short-term investments	16 626	23 618	15 728
Total current assets	29 409	35 443	30 065
TOTAL ASSETS	532 393	517 456	466 117
EQUITY AND LIABILITIES
Equity	432 005	420 923	366 509
Long-term interest bearing liabilities	77 476	74 306	73 527
Provisions for pensions and similar obligations	1 111	1 114	1 014
Other long-term provisions and liabilities	11 921	10 847	10 452
Total non-current liabilities	90 508	86 268	84 993
Current interest bearing liabilities	889	994	2 180
Other short-term provisions and liabilities	8 991	9 272	12 435
Total current liabilities	9 880	10 266	14 615
TOTAL EQUITY AND LIABILITIES	532 393	517 456	466 117

Consolidated Statement of Changes in Equity, in summary

SEK m	H1 2020	2019	H1 2019
Opening balance 1/1	420 923	327 690	327 690
Adjustment for changed accounting policies	-	-25	-25
Opening balance 1/1 adjusted for changed accounting policies	420 923	327 665	327 665
Profit for the period	17 906	101 242	46 886
Other comprehensive income for the period	10	1 919	1 904
Total comprehensive income for the period	17 916	103 161	48 790
Dividend to shareholders	-6 889	-9 948	-9 947
Changes in non-controlling interest	20	-13	-12
Effect of long-term share-based remuneration	35	58	14
Closing balance	432 005	420 923	366 509
Attributable to:
Owners of the Parent Company	431 788	420 681	366 283
Non-controlling interest	217	242	226
Total equity	432 005	420 923	366 509

Consolidated Cash Flow, in summary
SEK m	H1 2020	H1 2019
Operating activities
Dividends received	5 238	8 224
Cash receipts	17 552	20 660
Cash payments	-15 365	-17 583
Cash flows from operating activities before net interest and income tax	7 426	11 302
Interest received/paid	-1 374	-1 260
Income tax paid	-886	-648
Cash flows from operating activities	5 166	9 394
Investing activities
Acquisitions	-6 762	-6 125
Divestments	3 484	4 303
Increase in long-term receivables	-311	-31
Decrease in long-term receivables	-	18
Acquisitions of subsidiaries, net effect on cash flow	-6 312	-1 059
Divestments of subsidiaries, net effect on cash flow	30	2 690
Increase in other financial investments	-4 411	-8 445
Decrease in other financial investments	7 540	5 471
Net change, short-term investments	-346	64
Acquisitions of property, plant and equipment	-1 261	-919
Proceeds from sale of property, plant and equipment	133	54
Net cash used in investing activities	-8 214	-3 978
Financing activities
New share issue	67	39
Borrowings	6 567	6 433
Repayment of borrowings	-4 049	-3 318
Repurchases of own shares	-11	-49
Dividends paid	-6 889	-6 887
Net cash used in financing activities	-4 315	-3 782
Cash flows for the period	-7 364	1 633
Cash and cash equivalents at the beginning of the year	19 231	11 416
Exchange difference in cash	72	152
Cash and cash equivalents at the end of the period	11 940	13 201

Performance by Business Area Q2 2020
SEK m	Listed Companies	Patricia Industries	Investments in EQT	Investor Groupwide	Total
Dividends	1 252	-	192	0	1 443
Other operating income	-	-	-	-	-
Changes in value	53 597	571	7 430	42	61 640
Net sales	-	8 215	-	-	8 215
Cost of goods and services sold	-	-4 434	-	-	-4 434
Sales and marketing cost	-	-1 378	-	-	-1 378
Administrative, research and development and other
operating cost	-	-1 513	-1	-6	-1 520
Management cost	-27	-69	-2	-27	-126
Share of results of associates	-	78	-	-	78
Operating profit/loss	54 821	1 470	7 618	9	63 919
Net financial items	-	-857	-	1 378	521
Income tax	-	-109	-	16	-93
Profit/loss for the period	54 821	504	7 618	1 404	64 347
Non-controlling interest	-	19	-	-	19
Net profit/loss for the period attributable to the
Parent Company	54 821	523	7 618	1 404	64 366
Dividend to shareholders	-	-	-	-6 889	-6 889
Other effects on equity	-	-2 521	-1 005	-207	-3 733
Contribution to net asset value	54 821	-1 997	6 614	-5 692	53 745
Net asset value by business area 6/30 2020
Carrying amount	351 013	55 450	48 843	-308	454 998
Investors net debt/-cash	-	14 315	-	-37 525	-23 210
Total net asset value including net debt/-cash	351 013	69 765	48 843	-37 833	431 788

Performance by Business Area Q2 2019

	Listed	Patricia	Investments in	Investor
SEK m	Companies	Industries	EQT	Groupwide	Total
Dividends	3 176	-	125	-5	3 296
Other operating income	-	0	-	0	0
Changes in value	13 861	-91	1 567	-10	15 327
Net sales	-	10 967	-	-	10 967
Cost of goods and services sold	-	-6 474	-	-	-6 474
Sales and marketing cost	-	-1 519	-	-	-1 519
Administrative, research and development and other
operating cost	-	-2 370	-2	-6	-2 378
Management cost	-27	-68	-2	-29	-126
Share of results of associates	-	93	-	-	93
Operating profit/loss	17 010	538	1 688	-50	19 186
Net financial items	-	-384	-	-431	-815
Income tax	-	-256	-	-36	-292
Profit/loss for the period	17 010	-102	1 688	-517	18 078
Non-controlling interest	-	-5	-	-	-5
Net profit/loss for the period attributable to the
Parent Company	17 010	-107	1 688	-517	18 073
Dividend to shareholders	-	-	-	-9 947	-9 947
Other effects on equity	-	229	249	8	487
Contribution to net asset value	17 010	122	1 937	-10 457	8 612
Net asset value by business area 6/30 2019
Carrying amount	309 514	57 558	24 114	-3 473	387 714
Investors net debt/-cash	-	12 628	-	-34 059	-21 431
Total net asset value including net debt/-cash	309 514	70 187	24 114	-37 532	366 283

Performance by Business Area H1 2020
SEK m	Listed Companies	Patricia Industries	Investments in EQT	Investor Groupwide	Total
Dividends	4 717	-	192	0	4 908
Other operating income	-	-	-	-	-
Changes in value	2 563	162	10 595	-11	13 310
Net sales	-	18 194	-	-	18 194
Cost of goods and services sold	-	-9 872	-	-	-9 872
Sales and marketing cost	-	-3 002	-	-	-3 002
Administrative, research and development and other
operating cost	-	-3 385	-2	-10	-3 397
Management cost	-54	-136	-5	-59	-253
Share of results of associates	-	183	-	-	183
Operating profit/loss	7 225	2 144	10 781	-79	20 070
Net financial items	-	-1 446	-	-447	-1 893
Income tax	-	-308	-	38	-271
Profit/loss for the period	7 225	389	10 781	-488	17 906
Non-controlling interest	-	45	-	-	45
Net profit/loss for the period attributable to the
Parent Company	7 225	434	10 781	-488	17 951
Dividend to shareholders	-	-	-	-6 889	-6 889
Other effects on equity	-	63	111	-129	46
Contribution to net asset value	7 225	497	10 892	-7 506	11 107
Net asset value by business area 6/30 2020
Carrying amount	351 013	55 450	48 843	-308	454 998
Investors net debt/-cash	-	14 315	-	-37 525	-23 210
Total net asset value including net debt/-cash	351 013	69 765	48 843	-37 833	431 788

Performance by Business Area H1 2019

	Listed	Patricia	Investments in	Investor
SEK m	Companies	Industries	EQT	Groupwide	Total
Dividends	7 624	-	125	-4	7 744
Other operating income	-	0	-	0	0
Changes in value	36 617	684	2 771	-16	40 056
Net sales	-	21 293	-	-	21 293
Cost of goods and services sold	-	-12 533	-	-	-12 533
Sales and marketing cost	-	-3 018	-	-	-3 018
Administrative, research and development and other
operating cost	-	-4 542	-3	-13	-4 558
Management cost	-52	-135	-4	-58	-249
Share of results of associates	-	186	-	-	186
Operating profit/loss	44 188	1 935	2 889	-92	48 921
Net financial items	-	-579	-	-931	-1 511
Income tax	-	-511	-	-13	-524
Profit/loss for the period	44 188	845	2 889	-1 036	46 886
Non-controlling interest	-	0	-	-	0
Net profit/loss for the period attributable to the
Parent Company	44 188	845	2 889	-1 036	46 886
Dividend to shareholders	-	-		-9 947	-9 947
Other effects on equity	-	1 168	522	146	1 836
Contribution to net asset value	44 188	2 013	3 411	-10 838	38 775
Net asset value by business area 6/30 2019
Carrying amount	309 514	57 558	24 114	-3 473	387 714
Investors net debt/-cash	-	12 628	-	-34 059	-21 431
Total net asset value including net debt/-cash	309 514	70 187	24 114	-37 532	366 283

Parent Company Income Statement, in summary
SEK m	H1 2020	H1 2019	Q2 2020	Q2 2019
Dividends	4 284	7 195	1 169	3 089
Changes in value	3 009	34 310	50 212	13 876
Net sales	6	6	3	4
Operating cost	-189	-186	-95	-97
Write-down of shares in subsidiary	-2 4001)	-	-2 4001)	-
Operating profit/loss	4 711	41 325	48 890	16 872
Profit/loss from financial items
Net financial items	-323	-741	1 411	-406
Profit/loss after financial items	4 388	40 584	50 301	16 466
Income tax	-	-	-	-
Profit/loss for the period	4 388	40 584	50 301	16 466

1) Write-down of shares in Invaw Invest AB (holding company of the shares in Wärtsilä).

Parent Company Balance Sheet, in summary

SEK m	6/30 2020	12/31 2019	6/30 2019
ASSETS
Intangible assets and Property, plant and equipment	15	13	14
Financial assets	386 565	376 121	342 274
Total non-current assets	386 580	376 134	342 287
Current receivables	284	1 998	5 516
Cash and cash equivalents	-	-	-
Total current assets	284	1 998	5 516
TOTAL ASSETS	386 864	378 132	347 803
EQUITY AND LIABILITIES
Equity	327 198	329 661	293 522
Provisions	125	138	158
Non-current liabilities	47 521	47 397	47 773
Total non-current liabilities	47 646	41 363	47 932
Dividend approved to shareholders	-	-	3 060
Current liabilities	12 020	937	3 290
Total current liabilities	12 020	937	6 350
TOTAL EQUITY AND LIABILITIES	386 864	378 132	347 803

Financial instruments

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

Valuation techniques, level 3
Group 6/30 2020	Fair value, SEK m	Valuation technique	Input	Range
Shares and participations	22 631	Last round of financing	n/a	n/a
		Comparable companies	EBITDA multiples	n/a
		Comparable companies	Sales multiples	1.3 – 4.3
		Comparable transactions	Sales multiples	1.1 – 3.2
		NAV	n/a	n/a
Other financial investments	70	Discounted cash flow	Market interest rate	n/a
Long-term and current receivables	4 290	Discounted cash flow	Market interest rate	n/a
Long-term interest bearing liabilities	62	Discounted cash flow	Market interest rate	n/a
Other provisions and liabilities	4 696	Discounted cash flow	n/a	n/a

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

The unlisted part of Financial Investments' portfolio companies, corresponds to 95 percent of the portfolio value. Part of the unlisted portfolio is valued based on comparable companies, and the value is dependent on the level of the multiples. The multiple ranges provided in the note show the minimum and maximum value of the actual multiples applied in these valuations. A 10 percent change of the multiples would have an effect on the Financial Investments portfolio value of approximately SEK 100m. For the derivatives, a parallel shift of the interest rate curve by one percentage point would affect the value by approximately SEK 1,100m.

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 6/30 2020, SEK m	Level 1	Level 2	Level 3	Other1)	Total carrying amount
Financial assets
Shares and participations	378 583	1 776	22 631	4 090	407 079
Other financial investments	4 936		70	101	5 107
Long-term receivables included in net debt		196	2 661		2 856
Other long-term receivables			1 629	1 011	2 641
Shares and participations in trading operation	295				295
Other current receivables		39		6 485	6 524
Cash, bank and short-term investments	8 779			7 847	16 626
Total	392 593	2 010	26 991	19 535	441 128
Financial liabilities
Long-term interest bearing liabilities		310	62	77 104	77 4762)
Other long-term provisions and liabilities			4 494	7 427	11 921
Short-term interest bearing liabilities		1		888	889
Other short-term provisions and liabilities	256	49	202	8 485	8 991
Total	256	359	4 758	93 903	99 277

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

2) The Group's loans are valued at amortized cost. Fair value on long-term loans amounts to SEK 81,665m.

Changes in financial assets and liabilities in Level 3

			Long-term receivables	Other	Long-term interest	Other long term	Other short term
Group 6/30 2020, SEK m	Shares and participations	Other financial investments	included in net debt	current receivables	bearing liabilities	provisions and liabilities	provisions and liabilities
Opening balance at the beginning of the year	22 347	71	3 531	10	56	3 936	215
Total gain or losses in profit or loss statement
in line Changes in value	529	-1	241			-78
in line Net financial items			238		6	807	-92
in line Cost of goods and services
sold		19
Reported in other comprehensive income
in line Foreign currency translation
adjustment	84	0	-5			0	2
Acquisitions	2 967		285			6
Divestments	-3 296	-21		-10		-1
Issues						32
Settlements						-146
Reclassification						-77	77
Transfer in to Level 3		4				16
Transfer out of Level 3		-3
Carrying amount at end of the period	22 631	70	4 290	0	62	4 494	202
Total unrealized gains/losses for the period included in profit/loss for financial instruments held at the end of the period
Changes in value	-599					1 101
Net financial items			238		-6
Total	-599		238		-6	1 101

Revenue from contracts with customers

			Field of operation
Group H1 2020,	Healthcare	Healthcare			Gripping and
SEK m	equipment	services	Hotel	Real estate	moving solutions	Total
Geographical market
Sweden	365	71	145	78	89	749
Scandinavia, excl. Sweden	614				20	635
Europe, excl. Scandinavia	4 393				290	4 683
U.S.	9 963	22			193	10 178
North America, excl. U.S.	303				38	341
South America	146				21	167
Africa	224				2	226
Australia	444				4	448
Asia	623	60			84	767
Total	17 077	153	145	78	742	18 194
Category
Sales of products	16 837				742	17 579
Sales of services	210	153	145			507
Revenues from leasing	28			76		105
Other income	2			2		4
Total	17 077	153	145	78	742	18 194
Sales channels
Through distributors	7 178		101		368	7 648
Directly to customers	9 899	153	43	78	373	10 547
Total	17 077	153	145	78	742	18 194
Timing of revenue recognition
Goods and services transferred
at a point of time	16 952	93			732	17 777
Goods and services transferred
over time	124	60	145	78	10	417
Total	17 077	153	145	78	742	18 194

Reconciliations of significant Alternative Performance Measures

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

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

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

Gross cash

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

Group 6/30 2020, SEK m	Consolidated balance sheet	Deductions related to Patricia Industries	Investor's gross cash	Group 12/31 2019, SEK m	Consolidated balance sheet	Deductions related to Patricia Industries	Investor's gross cash
Other financial				Other financial
investments	5 107	-173	4 934	investments	8 188	-181	8 007
Cash, bank and				Cash, bank and
short-term investments	16 626	-7 908	8 718	short-term investments	23 618	-6 730	16 888
Gross cash	21 733	-8 081	13 652	Gross cash	31 806	-6 912	24 894

Gross debt

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

Group 6/30 2020, SEK m	Consolidated balance sheet	Deductions related to Patricia Industries	Investor's gross debt	Group 12/31 2019, SEK m	Consolidated balance sheet	Deductions related to Patricia Industries	Investor's gross debt
Receivables included in				Receivables included in
net debt	2 856	-	2 856	net debt	2 653	-	2 653
Loans	-78 365	38 758	-39 607	Loans	-75 300	35 904	-39 396
Provision for pensions	-1 111	999	-112	Provision for pensions	-1 114	1 001	-113
Gross debt	-76 619	39 757	-36 862	Gross debt	-73 761	36 905	-36 856

Group 12/31 2019,

Net debt

Gross debt less gross cash at Balance Sheet date.

Group 6/30 2020,

SEK m		SEK m
Investor's gross cash	-13 652	Investor's gross cash	-24 894
Investor's gross debt	36 862	Investor's gross debt	36 856
Investor's net debt	23 210	Investor's net debt	11 962

Total assets

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

		Deductions			Deductions
		related to non				related to non
Group 6/30 2020, SEK m	Consolidated balance sheet	controlling interest	Investor's net asset value	Group 12/31 2019, SEK m	Consolidated balance sheet	controlling interest	Investor's net asset value
Equity	432 005	-217	431 788	Equity	420 923	-242	420 681
Investor's net debt			23 210	Investor's net debt			11 962
Total assets			454 998	Total assets			432 643

Net debt ratio (leverage)

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

Group 6/30 2020,	Investor's net		Group 12/31 2019,	Investor's net
SEK m	asset value	Net debt ratio	SEK m	asset value	Net debt ratio
Investor's net debt	23 210		Investor's net debt	11 962
Total assets	454 998	= 5.1%	Total assets	432 643	= 2.8%

Reported net asset value, SEK per share

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

Group 6/30 2020, SEK m	Investor's net asset value	Net asset value, SEK per share	Group 12/31 2019, SEK m	Investor's net asset value	Net asset value, SEK per share
Investor's reported net asset value	431 788		Investor's reported net asset value	420 681
Number of shares, excluding own	765 471 502	= 564	Number of shares, excluding own	765 327 400	= 550
shares			shares

Adjusted net asset value, SEK per share

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

Group 6/30 2020, SEK m	Investor's net asset value	Net asset value, SEK per share	Group 12/31 2019, SEK m	Investor's net asset value	Net asset value, SEK per share
Investor's adjusted net asset value	490 950		Investor's adjusted net asset value	485 019
Number of shares, excluding own	765 471 502	= 641	Number of shares, excluding own	765 327 400	= 634
shares			shares

Patricia Industries, key figures overview1)

Mölnlycke (EUR m) Sales 358 401 1 542 402 380 386 374 1 452 392 351 359 Sales growth -7 7 6 3 8 8 7 1 7 2 -1 Organic growth, constant currency, % -7 7 4 1 7 5 4 3 6 2 3 EBITDA 103 115 451 114 115 114 107 418 109 99 108 EBITDA, % 28.8 28.8 29.2 28.3 30.4 29.6 28.7 28.8 27.9 28.3 30.2 EBITA2) 89 99 391 99 100 100 92 372 99 83 99 EBITA, % 24.7 24.6 25.3 24.5 26.3 25.8 24.7 25.6 25.2 23.7 27.5 Operating cash flow 105 66 382 122 115 87 58 374 133 93 83 Net debt 1 375 1 449 1 471 1 471 1 333 1 402 1 296 1 193 1 193 1 211 1 264 Employees 8 110 7 855 7 790 7 790 7 810 7 965 7 850 7 895 7 895 7 795 7 715 Permobil (SEK m) Sales 912 1 070 4 446 1 214 1 141 1 086 1 005 4 162 1 120 1 062 1 065 Sales growth -16 6 7 8 7 2 10 14 7 24 18 Organic growth, constant currency, % -17 3 1 4 3 -3 0 1 -2 1 5 EBITDA 165 215 924 232 265 229 198 780 257 192 202 EBITDA, % 18.2 20.1 20.8 19.1 23.2 21.0 19.7 18.8 22.9 18.1 19.0 EBITA2) 119 168 726 180 216 179 151 634 220 156 165 EBITA, % 13.1 15.7 16.3 14.8 18.9 16.5 15.0 15.2 19.7 14.7 15.5 Operating cash flow 203 248 776 122 235 223 196 649 233 196 122 Net debt 3 286 3 709 3 549 3 549 3 277 3 265 3 262 3 088 3 088 2 621 2 799 Employees 1 600 1 650 1 625 1 625 1 610 1 580 1 575 1 565 1 565 1 590 1 700 Laborie (USD m) Sales 43 55 205 56 50 50 48 181 51 50 47 Sales growth, % -14 15 13 11 -1 8 46 35 43 56 45 Organic growth, constant currency, % -45 -4 4 8 -2 1 7 7 6 15 11 EBITDA 7 -3 56 16 17 13 10 22 14 13 -4 EBITDA, % 17.3 -5.1 27.3 28.2 33.4 26.4 21.2 12.4 27.1 26.0 -9.5 EBITA2) 6 -4 51 15 15 12 9 19 13 12 -5 EBITA, % 13.7 -7.1 25.1 26.4 31.1 23.1 19.4 10.6 25.4 24.3 -11.4 Operating cash flow 4 -5 24 11 6 8 -1 -20 2 1 -24 Net debt 379 376 288 288 291 296 295 278 278 272 267 Employees 820 820 580 580 625 650 645 580 580 640 675 Sarnova3) (USD m) Sales 165 189 647 155 163 166 162 597 150 144 148 Sales growth, % -1 17 8 3 14 12 5 8 5 6 8 Organic growth, constant currency, % -2 14 4 -2 8 8 2 7 5 6 8 EBITDA 21 22 82 17 27 19 19 69 17 16 18 EBITDA, % 12.9 11.8 12.6 10.9 16.4 11.6 11.5 11.6 11.5 11.1 11.9 EBITA2) 19 20 73 15 25 17 17 64 16 15 16 EBITA, % 11.6 10.8 11.3 9.4 15.0 10.4 10.2 10.7 10.6 10.2 10.6 Operating cash flow 5 15 86 33 28 16 10 49 7 15 7 Net debt 266 267 287 287 310 322 332 307 307 305 314 Employees 670 655 645 645 645 650 645 620 620 605 605 BraunAbility (USD m) Sales 92 173 734 191 193 190 161 646 174 167 168 Sales growth, % -52 7 14 10 15 13 23 22 29 9 28 Organic growth, constant currency, % -53 5 5 5 6 3 5 15 17 3 22 EBITDA 1 14 70 15 21 20 14 45 8 11 16 EBITDA, % 1.4 7.9 9.6 7.9 10.9 10.7 8.5 7.0 4.8 6.8 9.4 EBITA2) -2 10 57 12 18 17 10 40 7 10 15 EBITA, % -2.6 5.8 7.7 6.2 9.1 8.9 6.4 6.2 3.8 6.0 8.7 Operating cash flow -7 -5 72 29 24 22 -4 55 15 17 31 Net debt 216 208 193 193 190 210 225 195 195 50 55 Employees 1 655 1 735 1 700 1 700 1 705 1 700 1 670 1 685 1 685 1 575 1 530 Piab4) (SEK m) Sales 342 399 1 267 320 320 315 312 1 255 335 312 309 Sales growth, % 9 28 1 -4 3 2 4 22 14 28 23 Organic growth, constant currency, % -16 -2 -4 -9 -1 -3 -2 9 5 6 10 EBITDA 94 100 379 76 107 92 104 354 101 93 83 EBITDA, % 27.5 25.1 29.9 23.7 33.3 29.2 33.4 28.2 30.0 29.7 26.9 EBITA2) 82 89 341 67 96 84 94 338 96 89 79 EBITA, % 23.9 22.2 26.9 20.8 30.0 26.7 30.2 26.9 28.8 28.4 25.6 Operating cash flow 102 96 325 83 86 83 73 216 78 22 75 Net debt 1 839 2 047 987 987 1 076 1 046 1 105 1 064 1 064 1 132 1 123		Q2 2020	Q1 2020	FY 2019	Q4 2019	Q3 2019	Q2 2019	Q1 2019	FY 2018	Q4 2018	Q3 2018	Q2 2018
	Employees	660	665	515	515	490	485	470	465	465	475	475

	Q2	Q1	FY	Q4	Q3	Q2	Q1	FY	Q4	Q3	Q2
	2020	2020	2019	2019	2019	2019	2019	2018	2018	2018	2018
Vectura (SEK m)
Sales	68	62	273	72	75	71	54	233	70	64	56
Sales growth, %	-4	15	17	3	18	29	23	12	32	14	3
EBITDA	43	30	173	38	52	47	35	142	37	46	36
EBITDA, %	63.1	48.6	63.3	53.0	69.5	66.2	64.5	60.8	52.2	72.3	65.6
EBITA adjusted2)	11	7	74	1	31	26	16	58	10	28	17
EBITA, %	16.6	11.2	27.2	1.2	41.6	36.0	30.4	24.7	14.7	43.4	31.0
Operating cash flow	-740	-111	-597	-100	-145	-135	-216	-298	-103	-10	-59
Net debt	3 551	2 791	2 662	2 662	2 827	2 672	2 392	2 166	2 166	2 013	1 999
Real estate, market value			7 282					5 911
Employees	26	26	22	22	21	21	21	22	22	21	22
Grand Group (SEK m)
Sales	44	101	680	189	189	182	119	603	164	173	163
Sales growth, %	-76	-15	13	15	9	12	16	-7	-3	-7	-4
Organic growth, constant
currency, %	-77	-17	7	8	3	5	13	-2	-1	3	-1
EBITDA	-24	-3	142	46	47	41	9	34	11	22	15
EBITDA, %	-53.5	-2.9	20.8	24.1	24.7	22.3	7.2	5.7	6.5	12.6	9.2
EBITA	-55	-35	11	13	14	7	-22	-5	0	12	6
EBITA, %	-125.8	-34.9	1.7	6.6	7.5	3.6	-18.4	-0.8	0.2	7.0	3.4
Operating cash flow	-49	-35	1	-6	18	19	-31	-42	-33	0	18
Net debt	847	913	893	893	898	930	964	4	4	-28	-30
Employees	245	480	380	380	375	375	335	380	380	345	345
Three Scandinavia
Sales, SEK m	2 620	2 608	10 705	3 008	2 646	2 586	2 465	10 728	2 602	2 744	2 720
Sweden, SEK m	1 649	1 645	6 826	1 889	1 663	1 675	1 599	7 004	1 606	1 779	1 819
Denmark, DKK m	678	673	2 736	789	684	641	622	2 707	719	691	651
EBITDA, SEK m	960	1 025	3 919	1 031	1 011	928	948	1 899	-613	852	838
Sweden, SEK m	684	696	2 662	676	684	653	648	1 025	-804	603	601
Denmark, DKK m	193	230	887	250	228	194	216	634	137	178	171
EBITDA, %	36.6	39.3	36.6	34.3	38.2	35.9	38.5	17.7	-23.6	31.0	30.8
Sweden	41.5	42.3	39.0	35.8	41.2	39.0	40.5	14.6	-50.0	33.9	33.0
Denmark	28.4	34.2	32.4	31.7	33.3	30.3	34.7	23.4	19.1	25.8	26.3
Net debt, SEK m	6 950	6 683	6 934	6 934	6 593	7 392	6 960	3 253	3 253	3 193	3 862
Employees	1 755	1 755	1 810	1 810	1 840	1 870	1 890	1 975	1 975	1 955	1 960
Financial Investments (SEK m)
Net asset value, beginning
of period	3 949	4 310	7 277	6 452	7 351	7 714	7 277	7 164	7 959	8 029	7 608
Investments	25	23	283	27	22	173	61	266	53	119	50
Divestments/distribution	-741	-179	-3 652	-932	-1 517	-2 037	-41	-765	-411	-139	-71
Exit proceeds pending
settlement	-	-	-	-791	-	1 667	-	-	-	-	-
Changes in value	-27	-205	402	-446	597	-166	418	611	-324	-49	441
Net asset value, end of period	3 207	3 949	4 310	4 310	6 452	7 351	7 714	7 277	7 277	7 959	8 029

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) Consolidated as of April 4, 2018.

4) Consolidated as of June 14, 2018.

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

Patricia Industries, overview of estimated market values

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

Investor in brief

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

Our purpose

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

Engaged ownership

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

Investment philosophy

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

Sustainability

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

Our operating priorities

• Grow net asset value

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

• Operate efficiently

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

• Pay a steadily rising dividend

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

Our financial targets

• Return requirement

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

• Leverage policy

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