Capital Market Day 1999

Bure's Capital Market Day: Bure becomes an investment company with focus on IT, InfoMedia and "the new economy" - Stockmarket listing of Bure Health Care in 2000 - Bure Training and Education will be prepared for the stockmarket in 2001 - Investment AB Bure will, with a sound spreading of risk, concentrate its investments on the IT and infomedia segments and "the new economy". Within two years, Bure Health Care and Bure Training and Education will both be listed on the stockmarket and the holdings in Bure Investments divested. This emerged during Bure's Capital Market Day today (16 November). At the same time as the vigorous concentration is implemented, operations within Bure IT and Bure InfoMedia will expand. The orientation is to create a leading investment company within IT and infomedia with high transaction orientation, active ownership in unlisted companies and an increased international presence. In addition, with the objective of securing its investment status, Bure will continue to have an asset management. "The concentration on IT and infomedia takes place against the background of the new criteria which prevail within these segments. This requires different business logic compared with Bure's other operations within the knowledge- based service sector. In this way, we will be able to fully utilise the opportunities of the new economy. In addition, a mustering of strength and concentration better illustrates Bure's values which should reduce the high discount that has been put on the share," said Roger Holtback, President and CEO of Investment AB Bure. "The new Bure will be characterised by a very high rate of change, skilled management with sound sector knowledge and with a stronger international presence," continued Roger Holtback. Initially, Bure's orientation will take place within five investment segments: IT consulting services, IT products, e-commerce, infomedia and venture investments within the IT and infomedia segment. Bure already holds a strong position within consulting services through its holdings: Guide, Systeam, Dimension, Cygate and other companies. The technology company, CR&T has a key position within the IT product segment through its sound technology expertise and ability to commercialise developed products such Firedoor, Gatespace and Spotfire. Bure InfoMedia is strongly dominated by companies such as Sifo and Citat which have very strong positions on their respective markets. "Within two to three years, Bure will be the leading Swedish investment company within IT and infomedia. Our early entry into the IT and infomedia segments means that we possess sound expertise and unique experience with regard to the business prerequisites of these sectors. By concentrating our operations, we will now be better able to take advantage of the opportunities that exist both in the Nordic countries and internationally," said Ulf Ivarsson, Executive Vice President Investment AB Bure. The concentration of Bure is fully in line with the business model which Bure consistently follows. Until now, leading positions have been established within all the focused Business Areas which are concentrated on the growth and knowledge-based service sector. Bure Health Care will now be the first Business Area to be listed on the stockmarket. The Business Area will be listed during 2000 through distribution to Bure's shareholders. Thereafter follows a divestment of Bure Training and Education via a stockmarket listing or as an industrial structural transaction. "Bure Training and Education has enjoyed very rapid growth during 1999 and already has a leading position within all its Business Segments. During 2000, we will continue to strengthen this position still further at the same time that we will prepare a stockmarket listing of the Business Area within two years," stated Roger Holtback. During 2000 and 2001, the holdings within Bure Investments will also be divested. The assessment by Bure's management is that the largest holdings, Scribona, Nobel Biocare and Gunnebo, in which an active ownership has created significant values, will continue to develop positively but that Bure's active ownership should be fully-concentrated on the core operations within IT and InfoMedia. In addition, Bure will continue to have a significant asset management in order to secure its investment company status. Positive development within Bure Health Care Bure Health Care now stands well equipped for the future listing. The sales rate currently amounts to SEK 3.1 billion. During 1999, Bure Health Care has been characterised by continued high growth and positive profit development. Demand has increased within several Business Segments which has led to increased organic growth. "We are now changing from an extremely fast phase of growth with extensive acquisitions to concentrating still further on concept and service development as well as organic growth. Following the acquisition of S:t Görans Hospital, we have the tools for realising new programmes for care even closer to the patient, developed order function at our principals and new opportunities for our employees. In the long term, we will transfer our Nordic concepts to international investments," said Per Båtelson, Head of the Business Area and President of Bure Health Care. Bure Health Care now operates within seven different segments: emergency treatment, elective health care, occupational health care, psychiatry, laboratory medicine, radiology and geriatric care. In all the segments there is a clearly-defined agenda and orientation. "We are now putting a great deal of effort into developing emergency treatment in collaboration with the management and staff of S:t Görans Hospital. The aim is to make service and support functions more efficient for the benefit of patient-related care and in the extension to create a system for efficient care process development. In focus are high patient satisfaction, improved quality and improved medical results. That is also what creates a higher value for our customers, i.e. the public sector principals," said Per Båtelson. Extensive integration work is now taking place within occupational health care and elective care. Following a pilot investment in Örebro, a launch will soon be made of a concept, Kurant Access, in which both specialist care and health care are financed via the employer. The concept differs from traditional insurance by offering all staff rapid and efficient health care without any insurance component. "At an early stage we have been active within both occupational health care and elective care and see the opportunities that exist within the segment. Kurant Access is developing very positively and has criteria for revolutionising the market for occupational health care," said Per Båtelson. Rapid growth in Bure Training and Education In 1999, Bure Training and Education has developed very rapidly through an active acquisition strategy. Sales amount to approximately SEK 900M on an annual basis. Several structural measures have been implemented. Within IT training, the acquired companies were merged in Informator Training Group with annual sales of SEK 220M. Mercuri has carried out several acquisitions and initiated integration of the international operations. Sales amount to approximately SEK 600M During 1999, Vittra Skolor, which carries out independent school operations, has prepared an expansion with 3-4 schools a year, which means a sales increase of approximately SEK 60-100M per annum. First in line is L'Estradska skolan in the south region of Stockholm which becomes the largest independent school in Sweden. "We have had a good start. Our aim is now to double the volume in three years, distributed equally on organic and acquired growth. In 2002, we will be a leading skill-development company in Europe," emphasised Sven-Åke Lewin, who is head of the Business Area. For 1999, the operating margin for Bure Training and Education is expected to amount to approximately 7 per cent. In 2002, the target is an operating margin of 10 per cent. Bure IT gets an important role During the Capital Market Day, Björn Boldt-Christmas, Head of Business Area Bure IT also gave an account of the operations within the current Bure IT area. The Business Area has developed into an important network of IT companies with extensive breadth in its skills. During 1999, the inflow of enquiries from IT companies has amounted to nearly 40 a month which indicates very high attractiveness. In recent years, the orientation for Bure IT has been to strengthen the existing segments: Networks, Business-critical systems and Skills. This has been achieved with a number of acquisitions and structural action. In addition, several new directions have been established, mainly within business systems via acquisition of Systeam, e-commerce through collaboration between Guide and Dimension, IT Security through the holding in Firedoor, and embedded IT through operations in Guide. During the Capital Market Day, the orientation for the future was outlined in detail. "We will continue to carry out supplementary acquisitions to existing companies for continued growth. At the same time we see opportunities to divest and expose the values in a number of holdings in which we have now created a platform for more independent growth. This applies especially to Cygate, Dimension and Systeam in which we will examine the criteria for a stockmarket listing or an industrial structural transaction during 2000 and 2001," Björn Boldt-Christmas. "However, our intention is to continue to be owners in the companies in the future in order to strengthen still further Bure IT as a network". Important prioritisations for Bure IT in the future will be: security, e- commerce systems and CRM systems. "Bure's focusing within the IT sector makes it possible to take advantage of the opportunities which especially Scandinavia offers in the IT Sector. With our background, in which we have been involved with establishing both consulting companies and software companies, we see that we are able to contribute a great deal within the IT sector, including new segments such as e-commerce. I dare say that the criteria for entrepreneur-driven companies to get access to "competent" money within these segments have seldom been as extensive as today with a more focused Bure," Björn Boldt-Christmas said. "Within the next two years, we will see a very active Bure with larger restructurings than ever before. Our shareholders will be able to participate in the values which we have built up within the service-based service sector while, at the same time, Bure will become an increasingly active operator within the IT and infomedia segments. Our aim is that Bure will continue to be regarded as one of the most exciting investment companies in the Nordic countries which now stands equipped to meet the very considerable opportunities of the new economy" said Roger Holtback as he closed the Capital Market Day. Gothenburg, 16 November 1999 Investment AB Bure (publ) For further information, please contact: Knut Leman, Head of Information +46 31-335 76 75, 0705-11 76 75 Ulrika Stenson, Head of Investor Relations +46 31-335 76 51, 0705-90 07 23 ------------------------------------------------------------ Please visit for further information The following files are available for download: