Investor AB

Quarterly Report • Apr 23, 2014

Interim Management Statement January-March 2014

Highlights during the first quarter

• Net asset value amounted to SEK 227,584 m. (SEK 299 per share) on March 31, 2014, an increase of SEK 12,167 m. (SEK 16 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 15 percent.
• EQT funds distributed a net of SEK 868 m., and Investor Growth Capital distributed SEK 362 m. to Investor during the quarter.
• Additional shares in ABB were acquired for SEK 239 m.

Financial information

• Consolidated net profit for the period, which includes unrealized change in value, was SEK 12,163 m. (SEK 15.96 per share), compared to SEK 16,195 m. (SEK 21.29 per share) for the same period 2013.
• Core Investments contributed SEK 10,585 m. to net asset value for the period (15,837), of which the listed SEK 10,183 m. (16,072).
• Financial Investments contributed SEK 2,054 m. to net asset value for the period (381).
• Leverage (net debt/total assets) was 8.8 percent as of March 31, 2014 (9.7).
• Consolidated net sales for the year was SEK 4,883 m. compared to SEK 4,179 m. for the same period 2013.

		Total return
	NAV (%)*	Investor B (%)	SIXRX (%)
Q1 2014	5.7	5.8	5.0
1 year	22.5	29.1	21.8
5 years	18.8	21.9	21.6
10 years	11.8	15.3	11.7
20 years	14.5	13.5	12.0
*Incl. dividend added back
			3/31 2014
NAV, SEK per share			299
Share price (B-share), SEK			234.20

Overview annual average performance

President's comments

Our net asset value rose by 5.7 percent during the first quarter, Total shareholder return was 5.8 percent, a touch better than the SIXRX at 5.0 percent. From this quarter, we adapt to the new NASDAQ OMX guidelines by publishing a simplified Interim Management Statement instead of full quarterly results. We hope you agree with our view that this is a good format to digest the information presented.

The macro pundits have been en vogue for the past decade. This may change now. The current geopolitical situation is very serious, and it may impact the global economy. For sure, it will increase the uncertainty for our export companies, as geopolitical risk now has to be reassessed.

Core Investments

As in the past few quarters, we were cautious with investing in the listed portfolio. We acquired some shares in ABB.

Mölnlycke Health Care continued to perform well, with strong operating cash flow. Lower interest expenses further help cash flow to equity. Net debt is down to 2.0x 12-month rolling EBITDA. Mölnlycke could distribute capital to us now, but with the high return on capital employed, new investments in growth remain the top priority. As always, we look for both organic opportunities and synergistic acquisitions. Early in the second quarter, we will buy out most of the shares in the Management Participation Program. The remaining shares will be acquired by the current Board, management and key employees. There is not a loss of economic value in this transaction, as we pay market value for the shares, but book keeping rules require us to take a charge as the price exceeds our reported value. Book keeping is truly interesting.

Aleris' management is getting a firmer grip on the operational issues. This year has started out better than last, but due to Easter, the first and second quarter should be looked at combined. Improving the operations within the Stockholm specialist hospitals and primary care remains key. Norway, Denmark, and Diagnostics perform well. Aleris also continues to pursue attractive investments in, for example the well-performing Care business, where both existing and new contracts have contributed.

Permobil continues to progress well. In addition to upgraded product platforms, the company is sharpening its focus on complex rehab via the launch of the Virtual Seating Coach, a software system that maximizes the therapeutic effect of the wheelchairs by, for example, reminding the user to tilt the wheelchair to relieve pressure and improve posture. Additional growth is an integral part of our value creation plan. Seeds are planted in emerging markets, the European operation is regrouped to focus on growing sales and more "feet on the street" are added in the U.S. to drive sales.

Financial Investments

During the quarter, the net distribution from EQT to Investor was SEK 868 m. The value change was 9 percent in constant currency. The strong performance was supported by the successful IPO of ISS.

Investor Growth Capital (IGC) distributed SEK 362 m. to Investor. In constant currency, the value change was 9 percent, driven by the IPO in Shanghai of NS Focus. The paper gain on NS Focus so far is very handsome. However, the Chinese capital market has some interesting features, including a 3-year IPO lock-up period.

Over the past year, we have established a limited portfolio of smaller investments within Financial Investments. While we are gradually winding down the existing IGC portfolio, some of its holdings have value creation potential that we believe is not yet fully captured by an outright sale. We have

decided to retain those holdings a little longer. Ideally, a few of them might become long-term holdings. Most, though, are likely to be divested. During the quarter, one of these, Aptalis, was divested at 3x invested capital.

Building businesses is a long-term proposition

We welcome the current discussion about short-termism. In a world where news spreads faster than the blink of an eye and investor preferences adjust to the smallest nuances in what is said and written, companies may be tempted to take actions with short-term payoff. Such actions may not maximize the intrinsic value. The intrinsic value is the net present value of all future expected cash flows, not just those in the next quarter or even the next few years.

One of the benefits for a company of having a sizeable, committed and involved shareholder is the ability to focus on doing what is industrially right. Investing in R&D, new manufacturing facilities or employee development can hurt short-term performance. Expanding a sales force initially generates more costs than revenues, but as the productivity improves, it contributes to profitability. Investments like this ensure the creation of intrinsic value and long-term distribution potential. We like that!

Over the last few years, companies have built up strong balance sheets. We encourage our companies to use theirs to intelligently invest in strengthening their existing businesses and new opportunities. Investing in NPV positive growth opportunities is vital to strengthen competitiveness. However, if the companies fail to find positive net present value investment opportunities, excess cash should be returned to the owners, who can deploy it into new opportunities. A sound capital structure, with the right level of leverage, is a core element of any strategic plan.

It is important that a long-term view does not allow shortterm performance to be ignored. The long-term is indeed made up of many short terms. It is difficult, but companies need to balance near-term performance with investing for long-term success. That is the reason for us being long-term in our vision, but impatient in our follow-up.

Investor platform

For a company to survive long-term, investing in the business is critical. The ability to adapt our companies and portfolio to the future has been a key element of Investor's success for nearly 100 years. Renewing the portfolio and investing in NPV positive projects is really core business. Taking risk is the only way to create real industrial value, but it will certainly lead to mishaps. The only way to avoid this is by making no decisions. Airplanes are certainly safest parked at the gate, but that is not what they are made for.

Our strategy has created attractive long-term value for our shareholders. SEK 1,000 invested in Investor 20 years ago is worth SEK 12,500 today. The same investment in the SIXRX total return index is worth SEK 9,600. While some of this value creation, especially in the listed holdings, can be replicated, we believe that our model can create repeatable, unique value. We have a large portfolio of unlisted companies that have generated returns above their cost of capital. Our sponsor economics in EQT have created unique value. The same goes for our timing of add-ons in listed companies, and our strategic exits have been made at attractive premiums.

We believe that our model will continue to serve us well. As before, we continue to work relentlessly to grow our net asset value, operate efficiently and pay a steadily rising dividend to you, fellow shareholder.

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)
	3/31 2014	3/31 2014	3/31 2014 (%)	3/31 2014	3/31 2014	YTD 2014	12/31 2013
Core Investments
Listed3)
SEB	456 198 927	20.8/20.8	16	53	40 521	3 721	38 618
Atlas Copco	206 895 611	16.8/22.3	15	51	38 492	1 805	36 687
ABB	188 030 900	8.1/8.1	13	41	31 449	-520	31 738
AstraZeneca	51 587 810	4.1/4.1	9	28	21 677	2 564	19 753
Ericsson	175 047 348	5.3/21.5	6	19	14 554	1 325	13 229
Sobi	107 594 165	39.8/39.8	3	10	7 623	495	7 128
Electrolux	47 866 133	15.5/30.0	3	9	6 759	-991	8 061
Saab	32 778 098	30.0/39.5	3	9	6 467	816	5 651
Wärtsilä	17 306 978	8.8/8.8	2	8	6 104	692	5 537
NASDAQ OMX	19 394 142	11.4/11.4	2	6	4 661	-348	5 023
Husqvarna	97 052 157	16.8/31.0	2	6	4 377	624	3 749
			73	240	182 684	10 183	175 174
Subsidiaries
Mölnlycke Health Care		98/96	8	28	21 055	369	20 684
Aleris		100/100	2	5	3 848	17	3 830
Permobil		95/90	2	5	3 774	15	3 759
Grand Hôtel/Vectura		100/100	1	2	1 297	39	1 258
			12	39	29 974	440	29 531
			85	279	212 658	10 5854)	204 705
Financial Investments
EQT			5	16	11 852	1 105	11 615
Investor Growth Capital			5	15	11 357	926	10 793
Partner-owned investments
Lindorff
Equity		58/50	2	6	4 713	65	4 648
Mezzanine debt			0	1	321	9	312
3 Scandinavia		40/40	1	4	2 755	112	2 643
Other Investments5)			1	3	2 278	-150	2 245
			13	44	33 276	2 0544)	32 256
Other Assets and Liabilities			1	5	3 5736,7)	-4724)	1 5606)
Total Assets			100	328	249 507		238 521
Net debt			-9	-29	-21 923		-23 104
Net Asset Value			91	299	227 584	12 167	215 417

Calculated in accordance with the disclosure regulations of Sweden's Financial Instruments Trading Act (LHF). ABB, AstraZeneca, NASDAQ OMX 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.

Including management costs. Management costs attributable to Core Investments, Financial Investments and Groupwide amounted to SEK 38 m., SEK 13 m. and SEK 39 m. respectively.

Includes Investor's trading activities and investments in Active Biotech, Affibody, Alligator, Atlas Antibodies, Kunskapsskolan, Madrague, Newron, Novare Human Capital, RAM and Samsari, among others.

Including SEK 1.2 bn. of the proceeds from the divestiture of Gambro held in escrow.

Dividends from listed core investments of SEK 2,136 m. pending over the end of the quarter have been accounted for as receivables in Other Assets and Liabilities.

Overview

Net asset value

During the first quarter, the net asset value increased from SEK 215.4 bn. to SEK 227.6 bn. The change in net asset value, with dividend added back, was 6 percent during the first quarter (9). During the same period, the total return of the Stockholm Stock Exchange (SIXRX) was 5 percent.

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 21,923 m. on March 31, 2014 (23,104), corresponding to leverage of 8.8 percent (9.7). Adjusting for dividend paid and dividends still expected to be received, leverage would be 9.3 percent.

Investor's net debt

SEK m.	1/1-3/31 2014	1/1-12/31 2013
Opening net debt	-23 104	-22 765
Core Investments
Dividends	7791)	5 441
Net investments	-238	-8 277
Financial Investments
Dividends	6781)	711
Net investments	1 075	9 022
Investor groupwide
Other	-1 113	-1 905
Dividends paid	-	-5 331
Closing net debt	-21 923	-23 104

Dividends from listed core investments of SEK 2,136 m. and distribution from IGC of SEK 362 m. pending over the end of the quarter have been accounted for as receivables in Other Assets and Liabilities.

Performance by business area

Q1 2014		Core Investments
SEK m.	Listed	Subsidiaries	Total	Financial Investments	Investor Groupwide	Total
Dividends	2 915	-	2 915	470	-	3 385
Other operating income	-	-	-	52	-	52
Changes in value	7 268	-3	7 265	1 628	-	8 893
Net sales	-	4 883	4 883	-	-	4 883
Management cost			-38	-13	-39	-90
Other items	-	-4 464	- 4 464	-56	-440	-4 960
Profit/loss for the period	10 183	416	10 561	2 081	-479	12 163
Non-controlling interest	-	-21	-21	-	-	-21
Other effects on equity	-	45	45	-27	7	25
Contribution to net asset value	10 183	440	10 585	2 054	-472	12 167
Net asset value, March 31, 2014
Carrying amount	182 684	29 974	212 658	33 276	3 573	249 507
Net debt	-	-	-	-	-21 923	-21 923
Total net asset value	182 684	29 974	212 658	33 276	-18 350	227 584

Q1 2013		Core Investments			Investor
SEK m.	Listed	Subsidiaries	Total	Financial Investments	Groupwide, incl. elimination	Total
Dividends	2 316	-	2 316	10	-	2 326
Other operating income	-	33	33	126	-33	126
Changes in value	13 756	-61	13 695	428	-	14 123
Net sales	-	4 202	4 202	-	-23	4 179
Management cost			-36	-15	-39	-90
Other items	-	-4 155	-4 155	-25	-289	- 4 469
Profit/loss for the period	16 072	19	16 055	524	-384	16 195
Non-controlling interest	-	8	8	-	-	8
Other effects on equity	-	-226	-226	-143	498	129
Contribution to net asset value	16 072	-199	15 837	381	114	16 332
Net asset value, March 31, 2013
Carrying amount	155 215	21 080	176 295	35 585	1 316	213 196
Net debt	-	-	-	-	-22 166	-22 166
Total net asset value	155 215	21 080	176 295	35 585	-20 850	191 030

Core Investments

Core Investments contributed to the net asset value with SEK 10,585 m. during the first quarter (15,837). The listed holdings contributed with SEK 10,183 m. (16,072), and the subsidiaries with SEK 440 m. (-199).

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

Net asset value

Contribution to net asset value, Core Investments

SEK m.	Q1 2014	Q1 2013
Changes in value, listed	7 268	13 756
Dividends, listed	2 9151)	2 316
Change in reported value, subsidiaries	440	-199
Management cost	-38	-36
Total	10 585	15 837

Dividends from listed core investments of SEK 2,136 m. pending over the end of the quarter.

Core Investments - listed

Listed core investments contributed to the net asset value with SEK 10,183 m. during the first quarter 2014 (16,072).

The combined total return for the listed investments amounted to 6 percent during the first quarter 2014.

Dividends

Dividends from listed core investments totaled SEK 2,915 m. during the first quarter (2,316), of which SEK 2,136 m. (SEB and Electrolux) was pending and reported in Other Assets and Liabilities. We expect to receive approximately SEK 6.2 bn. in total during 2014.

Core Investments – listed

Contribution to net asset value and total return, 2014

	Contribution to net asset value, SEK m.	Total return Investor1) Q1, 2014 (%)
Listed
SEB	3 721	9.6
Atlas Copco	1 805	4.9
ABB	-520	-1.6
AstraZeneca	2 564	13.0
Ericsson	1 325	10.0
Sobi	495	6.9
Electrolux	-991	-12.3
Saab	816	14.4
Wärtsilä	692	12.52)
NASDAQ OMX	-348	-6.93)
Husqvarna	624	16.6
Total	10 183
Subsidiaries
Mölnlycke Health Care	369
Aleris	17
Permobil	15
Grand Hôtel/Vectura	39
Total	440

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

The corresponding return in EUR terms was 12.5 percent for the period.

The corresponding return in USD terms was -6.9 percent for the period.

Investments and divestments

First quarter

1,450,758 shares were purchased in ABB for a total SEK 239 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.

A leading Nordic financial services group.	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 leading integrated biopharmaceutical company with international market presence, developing and commercializing pharmaceuticals for patients with rare diseases.	www.sobi.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
Serves the global market with world-leading products, services and solutions for military defense and civil security.	www.saabgroup.com
A global leader in complete lifecycle power solutions for the marine and energy markets.	www.wartsila.com
One of the world's largest exchange operators, which offers listings, trading, exchange technology and public company services.	www.nasdaqomx.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 440 m. during the first quarter 2014 (-199).

Investments and divestments

First quarter

No investments or divestments were made during the quarter.

After the end of the quarter, Investor will acquire shares in Mölnlycke Health Care from participants in the company's Management Participation Program (MPP) for a total EUR 112 m. For more information, see "Events after the end of the quarter" on page 14.

Net asset value, subsidiaries

		3/31 2014		12/31 2013
	SEK/share	SEK m.	SEK/share	SEK m.
Mölnlycke Health Care	28	21 055	27	20 684
Aleris	5	3 848	5	3 830
Permobil	5	3 774	5	3 759
Grand Hôtel/Vectura	2	1 297	2	1 258
Total	39	29 974	39	29 531

Contribution to net asset value, subsidiaries

SEK m.	1/1-3/31 2014	1/1-3/31 2013
Mölnlycke Health Care	369	-149
Aleris	17	-1
Permobil	15	-
Grand Hôtel/Vectura	39	-49
Total	440	-199

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

• The first quarter was strong, with sales growth of 6 percent in constant currency, and EBITDA continued to increase. Growth in EMEA was strong and several of the markets most affected by pressure on public healthcare spending in 2013 showed good growth. North America and APAC continued to perform well.
• The Wound Care division continued to show strong growth, especially Advanced Wound Care but also Conventional had a strong quarter. The Negative Pressure Wound Therapy (NPWT) business continued to grow.
• The Surgical division had a stable quarter with revenue growth mainly driven by ProcedurePak.
• Mölnlycke Health Care decided to expand the manufacturing site in Wiscasset, U.S. Together with the previously announced new factory in Brunswick, also in Maine, this will strengthen the company's North American production hub.
• The strong cash flow generation continued, which reduced net debt.

Key figures, Mölnlycke Health Care

			Rolling 4
Income statement items, EUR m.	Q1 2014	Q1 2013	quarters
Sales	287	277	1 163
Sales growth, %	4	4
Sales growth, constant currency, %	6	4
EBITDA	77	74	347
EBITDA, %	27	27	30
Balance sheet items, EUR m.	3/31 2014		12/31 2013
Net debt	698		728
Cash flow items, EUR m.	Q1 2014	Q1 2013
EBITDA	77	74
Change in working capital	-22	-38
Capital expenditures	-10	-12
Operating cash flow	45	24
Acquisitions/divestments	-	-
Shareholder contribution/distribution	-	-
Other1)	-15	-40
Increase(-)/decrease (+) in net debt	30	-16
Key ratios			Rolling 4 quarters
Working capital/sales, %			12
Capital expenditures/sales, %			4
	3/31 2014	3/31 2013
Number of employees	7 390	7 265

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 5 percent in constant currency. EBITDA was positively affected by an increased number of working days during the first quarter 2014 compared to last year. Operating cash flow increased, due to higher EBITDA and improved working capital.
• In Sweden, work continued to resolve the problems within Healthcare, primarily the community hospitals in Stockholm and primary care. The diagnostics business continued to perform well. The Care division showed improved performance, mainly driven by the Care for Youth business.
• In Norway performance remained stable, with good performance in most areas. Senior Care showed somewhat weaker performance while Care for Youth/Adults and Healthcare showed strong development.
• In Denmark sales was in line with last year, while profitability improved following additional cost savings. Care Denmark successfully defended a significant senior care contract in Gribskov.
• Lars Idermark assumed the role as Chairman of the Board.

Key figures, Aleris

Read more at www.permobil.se >>

A world-leading manufacturer of advanced powered wheelchairs.

Activities during the quarter

• Organic sales growth was 8 percent. Growth was driven by strong sales in the U.S. Growth in Europe remained weak and Permobil is refocusing its European operation for growth.
• Reported EBITDA was SEK 63 m. in this seasonally small quarter, and the EBITDA margin 15 percent. The company continued to focus on product development. In addition to developing upgraded product platforms, the company also launched the Virtual Seating Coach, software designed by the Human Engineering Research Laboratories at the University of Pittsburgh to maximize the therapeutic impact of the wheelchairs.
• Cash flow was strong, with good contribution from improved working capital. Capex increased, and included investments in the consolidation to the Timrå facilities.

Income statement items, SEK m.	Q1 2014	Q1 2013	Rolling 4 quarters	Income statement items, SEK m.	Q1 2014	Q1 2013	Rolling 4 quarters
Sales	1 841	1 756	7 060	Sales	411	382	1 771
Sales growth, %	5	6		Sales growth, %	8	15
Organic growth, constant currency, %	5	6		Organic growth, constant currency, %	8	13
EBITDA	101	85	323	EBITDA	63	60	258
EBITDA, %	5	5	5	EBITDA, %	15	16	15
Balance sheet items, SEK m.	3/31 2014		12/31 2013	Balance sheet items, SEK m.	3/31 2014		12/31 2013
Net debt	1 007		991	Net debt	1 071		1 117
Cash flow items, SEK m.	Q1 2014	Q1 2013		Cash flow items, SEK m.	Q1 2014	Q1 2013
EBITDA	101	85		EBITDA	63	60
Change in working capital	-72	-90		Change in working capital	40	-4
Capital expenditures	-53	-39		Capital expenditures	-35	-21
Operating cash flow	-24	-44		Operating cash flow	68	35
Acquisitions/divestments	-	-		Acquisitions/divestments	-	-
Shareholder contribution/distribution	-	-		Shareholder contribution/distribution	-	-
Other1)	8	15		Other2)	-22	12
Increase(-)/decrease (+) in net debt	-16	-29		Increase(-)/decrease (+) in net debt	46	47
Key ratios			Rolling 4 quarters	Key ratios			Rolling 4 quarters
Working capital/sales, %			-2	Working capital/sales, %			20
Capital expenditures/sales, %			3	Capital expenditures/sales, %			7
	3/31 2014	3/31 2013			3/31 2014	3/31 2013
Number of employees	6 375	5 995		Number of employees	765	710

Key figures, Permobil1)

Includes effects of exchange rate changes, interest and tax.

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

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 12 percent. EBITDA improved somewhat in the seasonally weak quarter.
• Grand Hôtel developed well. Both the lodging activities and the Food and Beverage operations showed stable growth compared to last year. Growth for Food and Beverage was positively affected as the Veranda was open for the full quarter 2014, compared to last year when it was closed for renovation in February and March.
• Lydmar Hotel continued to develop well, with stronger performance than last year, mainly driven by the lodging activities.

Key figures, Grand Hôtel

Income statement items, SEK m.	Q1 20141)	Q1 2013	Rolling 4 quarters
Sales	92	73	481
Sales growth, %	26	-4
Organic growth, %	12	-12
EBITDA	-13	-15	-3
EBITDA, %	-14	-21	-1
	3/31 2014	3/31 2013
Number of employees	295	220

Including the operations of Lydmar Hotel.

Balance sheet items, SEK m.	3/31 2014	12/31 2013
Net debt, Grand Hôtel/Vectura	1 015	943

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

• Sales grew by 30 percent, mainly driven by an Aleris care unit in Sunne which was opened last August, but also higher revenue from existing properties within the group.
• Näckström Fastigheter continued the development of Alerisrelated properties in Simrishamn, Halmstad and Sundbyberg.
• The EBITDA margin of 50 percent contained costs of one-time character, but it was still higher than the margin last year, which contained some extraordinary items, mainly related to tenant adaptations.
• As of March 31, 2014, the market value of Vectura's properties amounted to SEK 2.5 bn.

Key figures, Vectura

Income statement items, SEK m.	Q1 2014	Q1 2013	Rolling 4 quarters
Sales	26	20	130
Sales growth, %	30	-13
EBITDA	13	5	84
EBITDA, %	50	25	65

Financial Investments

Financial Investments contributed to the net asset value with SEK 2,054 m. during the first quarter (381).

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

Investments and divestments

First quarter

SEK 476 m. was invested and SEK 1,913 m. was distributed to Investor.

Investor acquired an additional 44 percent of the Swedish biotech company Affibody for SEK 109 m. Following the acquisition, Investor owns 68 percent of the company.

Net asset value, Financial Investments

	3/31 2014			12/31 2013
	SEK/Share	SEK m.	SEK/Share	SEK m.
EQT	16	11 852	15	11 615
Investor Growth Capital	15	11 357	14	10 793
Partner-owned
Lindorff
Equity	6	4 713	6	4 648
Mezzanine debt	1	321	1	312
3 Scandinavia	4	2 755	3	2 643
Other investments	3	2 278	3	2 245
Total	44	33 276	42	32 256

Contribution to net asset value, Financial Investments

SEK m.	Q1 2014	Q1 2013
EQT	1 105	144
Investor Growth Capital	926	87
Partner-owned
Lindorff	74	-49
3 Scandinavia	112	14
Other investments	-150	200
Management cost	-13	-15
Total	2 054	381

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 868 m. from EQT funds.
• The reported value change of Investor's investments in EQT funds was 10 percent. In constant currency, the change was 9 percent.
• Investor's total outstanding commitments to EQT funds amounted to SEK 5.9 bn. as of March 31, 2014 (6.3).
• EQT VI acquired Færch Plast.
• ISS was listed on NASDAQ OMX Copenhagen.
• EQT Mid Market acquired I-MED Radiology Network and the majority of StormGeo.

Change in net asset value, EQT

SEK m.	Q1 2014	Q1 2013
Net asset value, beginning of period	11 615	10 984
Contribution to net asset value (value change)	1 105	144
Draw-downs (investments and management fees)	367	375
Proceeds to Investor (divestitures, fee surplus
and carry)	-1 235	-580
Net asset value, end of period	11 852	10 923

As of March 31, 2014, the five largest investments were (in alphabetical order): Dometic Group (Sweden), ISS (Denmark), LBX (China), SSP (U.K.) and XXL (Norway) representing 36 percent of the total value of Investor's investments in EQT funds.

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 362 m. to Investor.
• The reported value change of Investor's investments in IGC was 9 percent. In constant currency, the value change was 9 percent.
• The previously announced divestment of U.S. healthcare holding Aptalis to Forest Laboratories was closed.
• IGC divested a portion of its interests in Chinese technology companies NS Focus and ChinaCache. The holding in NS Focus was listed on the Shanghai Stock Exchange.
• European technology holding Telepo was divested to Aastra Technologies.

Change in net asset value, IGC

SEK m.	Q1 2014	Q1 2013
Net asset value, beginning of period	10 793	10 727
Contribution to net asset value (value change)	926	87
Distribution to Investor	-3621)	-113
Net asset value, end of period	11 357	10 701
Of which net cash	3 596	2 085

The distribution was pending over the closing of the quarter and has been accounted for as a receivable in Other Assets and Liabilities.

As of March 31, 2014, the U.S., Asian and European portfolios represented 52, 30 and 18 percent of the total value, excluding net cash. 35 percent of the market value was composed by listed holdings. Net cash represented 32 percent of IGC's net asset value.

The five largest investments were (in alphabetical order): Aerocrine (Europe), ChinaCache (China), Mindjet Corporation (U.S.), NS Focus (China), Retail Solutions (U.S.). In total, these holdings represented 40 percent of the total portfolio value, excluding net cash.

Read more at www.lindorff.com >>

A leading European provider of debt-related administrative services. The company has operations in Denmark, Estonia, Finland, Germany, Latvia, Lithuania, The Netherlands, Norway, Russia, Spain and Sweden.

Activities during the quarter

• Sales growth in constant currency was good following a strong first quarter 2013. The EBITDA development was strong, with a margin improvement from 28 percent to 30 percent. The margin improvement was driven by a combination of improved performance in European markets and mix.
• Portfolio capex was higher than last year, with one larger transaction in Spain as the main contributor. Third party collection volumes continued to increase.
• Following a change in the accounting of purchased debt and revenue recognition, Lindorff's sales and EBITDA figures have been restated. The restatement has had no material impact on Investor's reported net asset value.

Key figures, Lindorff1)

Income statement items, EUR m.	Q1 2014	Q1 20132)	Rolling 4 quarters2)
Sales	112	109	448
Sales growth, %	3	14
Sales growth, constant currency, %	7	13
EBITDA3)	34	30	143
EBITDA, %	30	28	32
Balance sheet items, EUR m.	Q1 2014		Q4 2013
Net debt	780		745
	Q1 2014	Q1 2013
Number of employees	2 505	2 620

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

Restated.

EBITDA after portfolio amortization.

Read more at www.tre.se >>

An operator providing mobile voice and broadband services in Sweden and Denmark. The company has more than 2.7 m. subscribers and is recognized for its high-quality network.

Activities during the quarter

• The number of subscribers increased by 63,000, of which 40,000 in Sweden and 23,000 in Denmark. In total, the subscriber base grew by 12 percent compared to the same period 2013.
• Service revenue increased by 12 percent compared to the same period last year, up 9 percent in Sweden and 15 percent in Denmark.
• Total EBITDA increased by 31 percent compared to the same period last year. Cash flow remained strong.
• After the end of the quarter, the European Investment Bank, EIB, agreed to provide 3 Scandinavia with a SEK 1.8 bn. loan for the upgrade and expansion of its mobile network in Sweden and Denmark.

Key figures, 3 Scandinavia1)

Income statement items	Q1 2014	Q1 2013	Rolling 4 quarters
Sales, SEK m.	2 598	2 442	9 477
Sweden, SEK m.	1 696	1 615	6 219
Denmark, DKK m.	757	719	2 785
Service revenue2), SEK m.	1 346	1 197	5 129
Sweden, SEK m.	854	783	3 265
Denmark, DKK m.	412	360	1 594
EBITDA, SEK m.	642	491	2 424
Sweden, SEK m.	460	329	1 674
Denmark, DKK m.	152	140	642
EBITDA, %	25	20	26
Sweden	27	20	27
Denmark	20	19	23
Balance sheet items	Q1 2014		Q4 2013
Net debt, SEK m.	9 417		9 676
	Q1 2014	Q1 2013
Number of employees	2 035	1 980
			Rolling 4
Key figures			quarters
Capital expenditures/sales, %			12
Other key figures3)	3/31 2014	3/31 2013
Subscribers	2 779 000	2 488 000
Sweden	1 730 000	1 593 000
Denmark	1 049 000	895 000

Postpaid/prepaid ratio 82/18 84/16

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

	Q1	FY	Q4	Q3	Q2	Q1	FY	Q4	Q3	Q2	Q1
	2014	2013	2013	2013	2013	2013	2012	2012	2012	2012	2012
Core Investments – Subsidiaries
Mölnlycke Health Care (EUR m.) Sales	287	1 153	300	284	292	277	1 119	294	279	279	267
EBITDA	77	344	97	87	86	74	321	89	81	80	71
EBITDA (%)	27	30	32	31	29	27	29	30	29	29	27
Net debt	698	728	728	822	1 358	1 399	1 383	1 383	1 450	1 488	1 500
Employees	7 390	7 375	7 375	7 340	7 390	7 265	7 175	7 175	7 170	7 175	6 750
Aleris (SEK m.)
Sales	1 841	6 975	1 807	1 645	1 767	1 756	6 732	1 779	1 569	1 728	1 656
EBITDA	101	307	38	79	105	85	330	58	38	104	130
EBITDA (%)	5	4	2	5	6	5	5	3	2	6	8
Net debt	1 007	991	991	1 970	1 983	2 190	2 161	2 161	2 684	2 586	2 532
Employees	6 375	6 220	6 220	6 175	6 070	5 995	6 010	6 010	5 955	5 785	5 360
Permobil (SEK m.)1)
Sales	411	1 742	472	450	438	382	1 562	413	392	415	342
EBITDA	63	255	77	68	50	60	313	86	74	98	55
EBITDA (%)	15	15	16	15	11	16	20	21	19	24	16
Net debt	1 071	1 117	1 117	1 161	1 291	1 235	1 282	1 282	1 305	1 339	1 353
Employees	765	775	775	775	780	710	680	680	690	700	695
Grand Hôtel 2) (SEK m.)
Sales	92	462	145	131	113	73	383	112	95	100	76
EBITDA	-13	-5	7	3	0	-15	0	2	1	4	-7
EBITDA (%)	-14	-1	5	2	0	-21	0	2	1	4	-9
Employees	295	335	335	255	240	220	265	265	255	255	245
Vectura2) (SEK m.)
Sales	26	124	38	32	34	20	116	30	32	31	23
EBITDA	13	76	28	21	22	5	58	15	19	10	14
EBITDA (%)	50	61	74	66	65	25	50	50	59	32	61
Net debt (Grand Hôtel/Vectura)	1 015	943	943	986	951	876	820	820	-	-	-
Financial Investments
EQT (SEK m.)
Reported value	11 852	11 615	11 615	10 305	11 816	10 923	10 984	10 984	11 267	12 624	12 309
Reported value change, %	10	22	12	2	7	1	0	-1	-5	1	4
Value change, constant currency,%	9	20	10	4	2	4	3	-2	-2	2	5
Draw-downs from Investor	367	1 914	606	543	390	375	1 284	90	707	176	311
Proceeds to Investor	1 235	3 697	565	2 339	213	580	3 460	303	1 414	32	1 711
Net proceeds to Investor	868	1 783	-41	1 796	-177	205	2 176	213	707	-144	1 400
Investor Growth Capital (SEK m.)
Reported value	11 357	10 793	10 793	11 102	10 772	10 701	10 727	10 727	10 827	11 445	11 369
Reported value change, %	9	13	3	6	3	1	4	0	-4	2	6
Value change, constant currency,%	9	14	2	10	1	1	9	0	1	-3	10
Capital contribution from Investor	-	-	-	-	-	-	750	-	-	-	750
Distribution to Investor	362	1 308	678	267	250	113	607	81	155	114	257
Partner-owned investments
Lindorff 3, 4) (EUR m.)
Sales	112	445	108	112	116	109	420	-	-	-	-
EBITDA EBITDA (%)	34 30	139 31	31 29	41 37	37 32	30 28	123 29	- -	- -	- -	- -
Net debt	780	745	745	770	773	758	764	764	792	795	680
Employees	2 505	2 565	2 565	2 580	2 605	2 620	2 680	2 680	3 010	2 950	2 460
3 Scandinavia3)
Sales	2 598	9 321	2 432	2 228	2 219	2 442	9 341	2 461	2 113	2 507	2 260
Sweden, SEK m.	1 696	6 138	1 612	1 469	1 442	1 615	6 336	1 666	1 386	1 794	1 490
Denmark, DKK m.	757	2 747	699	652	677	719	2 561	689	635	592	645
EBITDA	642	2 273	734	568	480	491	2 425	683	651	598	493
Sweden, SEK m.	460	1 543	522	371	321	329	1 712	478	458	449	327
Denmark, DKK m.	152	630	181	170	139	140	609	179	167	124	139
EBITDA, %	25	24	30	25	22	20	26	28	31	24	22
Sweden	27	25	32	25	22	20	27	29	33	25	22
Denmark	20	23	26	26	21	19	24	26	26	21	22
Net debt, SEK m.	9 417	9 676	9 676	9 612	10 048	10 184	9 652	9 652	9 841	10 391	10 353
Employees	2 035	2 075	2 075	2 050	2 035	1 980	1 980	1 980	1 955	2 185	1 970

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.

Restated numbers prior to 2013 not provided on a quarterly basis.

Group

Net debt

Net debt totaled SEK 21,923 m. on March 31, 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 4.0 bn. of 3 Scandinavia's external debt, but this is not included in Investor's net debt.

Net debt, 3/31 2014

SEK m.	Consolidated balance sheet	Deductions related to Core Investments subsidiaries and IGC	Investor's net debt
Other financial investments	1 449	-1	1 4481)
Cash, bank and short-term investments	15 306	-6 771	8 5351)
Receivables included in net debt	277	-5	272
Loans	-44 403	12 377	-32 026
Provision for pensions	-650	498	-152
Total	-28 021	6 098	-21 923

Included in cash and readily available placements.

Investor's cash and readily available placements amounted to SEK 9,983 m. as of March 31, 2014 (6,864). The shortterm investments are invested conservatively, taking into account the risk-adjusted return profile. Gross debt excluding pensions for Investor amounted to SEK 31,754 m. at the end of the period (29,814).

During the first quarter, through private placements, EUR 150 m. and EUR 50 m. was borrowed with maturities of 20 and 30 years respectively.

The average maturity of Investor AB's debt portfolio was 11.2 years on March 31, 2014 (10.8), excluding the debt of Mölnlycke Health Care, Aleris, Permobil and Grand Hôtel/Vectura.

Maturity profile, 3/31, 2014

Net financial items, 3/31 2014

SEK m.	Group - Net Financial Items	Deductions related to Core Investments subsidiaries and IGC	Investor's Net Financial Items
Interest income	22	-1	21
Interest expenses	-354	78	-276
Realized result from loans and swaps	-	-	-
Unrealized result from revaluation of loans, swaps
and short-term investments	-128	8	-120
Foreign exchange result	-6	-14	-20
Other	-15	10	-5
Total	-481	81	-400

The Investor share

The price of the A-share and B-share was SEK 229.50 and SEK 234.20 respectively on March 31, 2014, compared to SEK 215.10 and SEK 221.30 on December 31, 2013.

The total shareholder return amounted to 6 percent during the first quarter 2014 (11).

The total market capitalization of Investor, adjusted for repurchased shares, was SEK 176,777 m. as of March 31, 2014 (166,451).

On March 31, 2014, Investor owned a total of 6,109,173 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.

Other

Events after the end of the quarter

Finalization of repurchase of shares in Aleris

During the second quarter 2014, Investor will finalize the previously announced repurchase of Aleris' Management Participation Program (MPP), by transferring the final funds to the former participants.

Acquisition of shares in Mölnlycke Health Care

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

In total, Investor will acquire shares in Mölnlycke Health Care from more than 140 participants for a total amount of EUR 112 m, of which EUR 74 m. from the Board, management and key employees. The participants in the new program will invest 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 will sell his remaining holding of shares to Investor for approximately net EUR 1.9 m. and reinvest 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). The company is focused on developing next generation biopharmaceuticals based on its unique proprietary technology platforms: Affibody® molecules and AlbumodTM. Following the acquisition, Investor owns 68 percent of the company. The consideration from Investor amounted to SEK 109 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.

Proposed dividend

As communicated in the Year-end Report 2013, the Board of Directors and the President have proposed a dividend to shareholders of SEK 8.00 per share for fiscal year 2013 (7.00). The proposal is based on the stated dividend policy to declare dividends attributable to a high percentage of dividends received from listed Core Investments, as well as to make a distribution from other net assets corresponding to a yield in line with the equity market. Investor AB's goal is also to generate a steadily rising annual dividend.

Annual General Meeting

Investor AB's Annual General Meeting will be held at 3:00 p.m. on Tuesday, May 6, 2014, at the City Conference Centre, Barnhusgatan 12-14, Stockholm. The registration commences at 1:30 p.m. The "Investor Dialog" begins at 2.00 p.m., where Investor's Chairman of the Board Jacob

Wallenberg and CEO Börje Ekholm, are available for dialog and questions.

Notification of participation in the Annual General Meeting can be given until April 29, 2014. Notification can be given on Investor's website, (www.investorab.com), or by phoning +46 8 611 2910. Additional information about Investor's Annual General Meeting is available on Investor's website.

Repurchase of own shares

As it has during the past 14 years, Investor's Board of Directors has decided to propose to the 2014 Annual General Meeting that it should extend the authorization of the Board to decide on the repurchase of the company's shares. Under such a mandate, the Board would be given the opportunity until the next Annual General Meeting – provided it deems it appropriate – to decide on the repurchase of the company's shares. In accordance with current legislation, repurchases can total up to 10 percent of the total shares outstanding in Investor. Any repurchases may be effected over the stock exchange or through offerings to shareholders. It is also proposed that the Board's mandate include the possibility to transfer repurchased shares including transfers to participants in Investor's Long-term variable remuneration program. See also "Long-term variable remuneration program" below.

Long-term variable remuneration program

As in the previous eight years, the Board of Directors will propose a share-based, long-term variable remuneration program for Investor's employees at the 2014 Annual General Meeting.

The program will be substantially identical to the program for 2013. It is proposed that the long-term variable remuneration program be hedged as before through the repurchase of the company's shares, or through total return swaps. The Board's final proposal was announced in the Notice of the 2014 Annual General Meeting.

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, share price development and information ahead of the Annual General Meeting, 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

• May 6 Annual General Meeting
• July 17 Interim Report January-June 2014
• Oct. 22 Interim Management Statement January-September 2014
• Jan. 28, 2015 Year-End Report 2014

Stockholm, April 23, 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 W:ISBF in Datastream

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

The Statement was released for publication at 08:15 CET on April 23, 2014.

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

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

Consolidated Income Statement, in summary

SEK m.	1/1-3/31 2014	1/1-3/31 2013
Dividends	3 385	2 326
Other operating income	52	126
Changes in value	8 893	14 123
Net sales	4 883	4 179
Cost of goods and services sold	-3 181	-2 838
Sales and marketing cost	-749	-649
Administrative, research and development and other
operating cost	-542	-365
Management cost	-90	-90
Share of results of associates	157	4
Profit/loss	12 808	16 816
Net financial items	-481	-629
Profit/loss before tax	12 327	16 187
Income taxes	-164	8
Profit/loss for the period	12 163	16 195
Attributable to:
Owners of the Parent Company	12 142	16 203
Non-controlling interest	21	-8
Profit/loss for the period	12 163	16 195
Basic earnings per share, SEK	15.96	21.29
Diluted earnings per share, SEK	15.92	21.26

Consolidated Statement of Comprehensive Income, in summary

SEK m.	1/1-3/31 2014	1/1-3/31 2013
Profit for the period	12 163	16 195
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	-
Re-measurements of defined benefit plans	-	-
Items that have been or may be recycled to profit/loss for the period
Cash flow hedges	-48	116
Foreign currency translation adjustment	-9	-40
Share of other comprehensive income of associates	-13	-21
Total other comprehensive income for the period	-6	55
Total comprehensive income for the period	12 157	16 250
Attributable to:
Owners of the Parent Company	12 136	16 246
Non-controlling interest	21	4
Total comprehensive income for the period	12 157	16 250

Consolidated Balance Sheet, in summary

SEK m.	3/31 2014	12/31 2013	3/31 2013
ASSETS
Goodwill	25 855	25 819	23 340
Other intangible assets	11 513	11 530	8 260
Property, plant and equipment	4 823	4 666	4 238
Shares and participations	210 247	202 710	178 500
Other financial investments	1 449	1 761	2 389
Long-term receivables included in net debt	276	174	548
Other long-term receivables	3 745	3 654	5 959
Total non-current assets	257 908	250 314	223 234
Inventories	1 439	1 441	1 256
Shares and participations in trading operation	789	149	270
Short-term receivables included in net debt	1	1	1
Other current receivables	6 270	3 529	5 019
Cash, bank and short-term investments	15 306	11 716	8 573
Assets held for sale	-	-	5 455
Total current assets	23 805	16 836	20 574
TOTAL ASSETS	281 713	267 150	243 808
EQUITY AND LIABILITIES
Equity	227 931	215 966	191 423
Long-term interest bearing liabilities	44 116	42 212	43 013
Provisions for pensions and similar obligations	650	642	722
Other long-term provisions and liabilities	4 140	3 738	2 777
Total non-current liabilities	48 906	46 592	46 512
Current interest bearing liabilities	287	52	1 473
Other short-term provisions and liabilities	4 589	4 540	4 400
Total current liabilities	4 876	4 592	5 873
TOTAL EQUITY AND LIABILITIES	281 713	267 150	243 808

Consolidated Statement of Changes in Equity, in summary

.

SEK m.	1/1-3/31 2014	1/1-12/31 2013	1/1-3/31 2013
Opening balance	215 966	175 106	175 106
Profit for the period	12 163	45 106	16 195
Other comprehensive income for the period	-6	1 055	55
Total comprehensive income for the period	12 157	46 161	16 250
Dividends paid	-	-5 331	-
Changes in non-controlling interest	-2	89	-2
Reclassification of non-controlling interest	-221	-	-
Repurchase of own shares	-	-195	-
Effect of long-term share-based remuneration	31	136	69
Closing balance	227 931	215 966	191 423
Attributable to:
Owners of the Parent Company	227 584	215 417	191 030
Non-controlling interest	347	549	393
Total equity	227 931	215 966	191 423

Consolidated Cash Flow, in summary

SEK m.	1/1-3/31 2014	1/1-3/31 2013
Operating activities
Core Investments
Dividends received	778	751
Cash receipts	4 823	4 055
Cash payments	-4 238	-3 751
Financial Investments and management cost
Dividends received	470	10
Net cash flow, trading operation	-435	8
Cash payments	-277	-110
Cash flows from operating activities before net interest and income tax	1 121	963
Interest received/paid	-309	-500
Income tax paid	-77	-49
Cash flows from operating activities	735	414
Investing activities
Acquisitions	-864	-762
Divestments	1 914	712
Increase in long-term receivables	-1	-9
Decrease in long-term receivables	22	32
Acquisitions of subsidiaries, net effect on cash flow	-79	-4
Increase in other financial investments	-732	-1 196
Decrease in other financial investments	1 044	-
Net change, short-term investments	-3 005	103
Acquisitions of property, plant and equipment	-242	-169
Proceeds from sale of property, plant and equipment	2	-
Acquisitions of other investments	-1	-
Net cash used in investing activities	-1 942	-1 293
Financing activities
Borrowings	1 813	80
Repayment of borrowings	-11	-846
Net cash used in financing activities	-1 802	-766
Cash flows for the period	595	-1 645
Cash and cash equivalents at the beginning of the year	9 783	7 696
Exchange difference in cash	22	-36
Cash and cash equivalents at the end of the period	10 400	6 015

Operating segment

PERFORMANCE BY BUSINESS AREA 1/1-3/31 2014

		Financial	Investor
SEK m.	Core investments	investments	Groupwide	Elimination	Total
Dividends	2 915	470	-	-	3 385
Other operating income1)	-	52	-	-	52
Changes in value	7 265	1 628	-	-	8 893
Net sales	4 883	-	-	-	4 883
Cost of goods and services sold	-3 181	-	-	-	-3 181
Sales and marketing cost	-746	-3	-	-	-749
Administrative, research and development and
other operating cost	-517	-25	-	-	-542
Management cost	-38	-13	-39	-	-90
Share of results of associates	1	153	3	-	157
Operating profit/loss	10 582	2 262	-36	-	12 808
Net financial items	-82	0	-399	-	-481
Income tax	61	-181	-44	-	-164
Profit/loss for the period	10 561	2 081	-479	-	12 163
Non-controlling interest	-21	-	-	-	-21
Net profit/loss for the period attributable to the
Parent Company	10 540	2 081	-479	-	12 142
Dividends paid	-	-	-	-	-
Repurchase of own shares	-	-	-	-	-
Other effects on equity	45	-27	7	-	25
Contribution to net asset value	10 585	2 054	-472	-	12 167
Net asset value by business area 3/31 2014
Carrying amount	212 658	33 276	3 573	-	249 507
Net debt	-	-	-21 923	-	-21 923
Total net asset value	212 658	33 276	-18 350	-	227 584

PERFORMANCE BY BUSINESS AREA 1/1-3/31 2013

		Financial	Investor
SEK m.	Core investments	investments	Groupwide	Elimination	Total
Dividends	2 316	10	-	-	2 326
Other operating income1)	33	126	-	-33	126
Changes in value	13 695	428	-	-	14 123
Net sales	4 202	-	-	-23	4 179
Cost of goods and services sold	-2 860	-	-	22	-2 838
Sales and marketing cost	-649	-	-	-	-649
Administrative, research and development and
other operating cost	-337	-28	-	-	-365
Management cost	-36	-15	-40	1	-90
Share of results of associates	1	3	-	-	4
Operating profit/loss	16 365	524	-40	-33	16 816
Net financial items	-354	-	-308	33	-629
Income tax	44	-	-36	-	8
Profit/loss for the period	16 055	524	-384	-	16 195
Non-controlling interest	8	-	-	-	8
Net profit/loss for the period attributable to the
Parent Company	16 063	524	-384	-	16 203
Other effects on equity	-226	-143	498	-	129
Contribution to net asset value	15 837	381	114	-	16 332
Net asset value by business area 3/31 2013
Carrying amount	176 295	35 585	1 316	-	213 196
Net debt	-	-	-22 166	-	-22 166
Total net asset value	176 295	35 585	-20 850	-	191 030

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

Group 3/31 2014	Fair value	Valuation technique	Input	Range
Shares and participations	18 210	Last round of financing	n.a.	n.a.
			EBITDA multiples	0.8 – 14.75
		Comparable companies	Sales multiples	0.23 – 15.1
		Comparable transactions	Sales multiples	1.0 – 10.8
		NAV	n.a.	n.a.
Long-term receivables included in net debt	99	Present value computation	Market interest rate	n.a.
Long-term interest bearing liabilities	277	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. A 10 percent change of the multiples would have an effect on the portfolio value of IGC of approximately SEK 400 m. For the derivatives, a parallel shift of the interest rate curve upwards by one percentage point would affect the value positively by approximately SEK 850 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 3/31 2014	Level 1	Level 2	Level 3	Other1)	Total carrying amount
Financial assets
Shares and participations	184 498	1 424	18 210	6 115	210 247
Other financial investments	1 448			1	1 449
Long-term receivables included in net debt		177	99		276
Shares and participations in trading operation	789				789
Short-term investments included in net debt		1			1
Other current receivables		38		6 232	6 270
Cash, bank and short-term investments	15 306				15 306
Total	202 041	1 640	18 309	12 348	234 338
Financial liabilities
Long-term interest bearing liabilities		737	277	43 1022)	44 1163)
Short-term interest bearing liabilities		190		97	287
Other short-term provisions and liabilities	86	72		4 431	4 589
Total	86	999	277	47 630	48 992

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 46,481 m.

Changes in financial assets and liabilities in Level 3

	Shares and	Long-term receivables	Long-term interest
Group 3/31 2014	participations	included in net debt	bearing liabilities
Opening balance	19 973	0	345
Total gain or losses in profit or loss statement
in line Changes in value	733	99	-68
Reported in other comprehensive income
in line Foreign currency translation adjustment	-5
Acquisitions	382
Divestments	-1 860
Transfer from Level 3	-1 013
Carrying amount at end of period	18 210	99	277
Total gains/losses for the period included in profit/loss for instruments held at the end of the period (unrealized results)
Changes in value	227	99	-68

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.