Interim report January-September 2000

Interim report January-September 2000 *Affärsstrategerna's net worth as of 30th September 2000 amounted to SEK 421 million, corresponding to SEK 47/share (41 for previous year). The net worth as of 24th October 2000 amounted to SEK 48/share, which corresponds to an increase of 67 percent since the beginning of the year. *Marked improvement in the group's profit/loss to SEK 54 million (-12.3). *The group's profit/loss per share was SEK 6.12 (-3.17) *Holding in Artimplant AB sold. *Targeted new share issue created SEK 69 million (before cost of share issue). *Investments in eight new portfolio companies. Net worth, market value and profit/loss per share has been calcu- lated for 8,844,400 shares The business concept of Affärsstrategerna [The Business Strate- gists] is to identify interesting projects and at a very early stage to make sound capital investments in companies which have the potential of becoming the leading international niche companies primarily in the fields of IT/internet, wireless and life sciences. Business January - September 2000 Affärsstrategerna's deal flow continues to be healthy, and this has resulted in eight new investments in the fields of IT/Internet, wireless and life sciences. As of 24th October 2000 the net worth per share has increased by 67 percent since the beginning of the year, whilst the share price has only gone up by 2 percent. In August the shares in Artimplant AB, one of Affärsstrategerna's more mature holdings, were sold, and these funds are being reinvested in new projects. The capital gain amounted to SEK 53 million. During the period covered by the report the holdings in FED AB, Game Design AB and Allgon AB have also been sold, with good profits. Cortree AB and Safeplus AB have been wound up at a loss. A new share issue aimed at institutional investors in Sweden and the rest of Europe was concluded in April. As a conse- quence, the company's capital base increased by SEK 69 million prior to costs for the issue. By means of one or more new share issues at an appropriate time, the aim is to bring further capital into the company for growth investments, assuming granting of authorisation by the special general meeting on 27th October 2000. The number of shareholders in the company increased from 1,691 to 2,283 over the period. Share portfolio, profit/loss and financial status On 30th September 2000 Affärsstrategerna's total net worth amounted to SEK 421 million. The entered value of the parent company amounted to SEK 284 million on the balance-sheet day. The differ- ence between the net worth and the parent company's entered value thus amounted to SEK 137 million. On the balance-sheet day the com- pany's B-share was listed at SEK 32.5, with a resultant market value of SEK 287 million. The group's profit amounted to SEK 54.2 million (-12.3). During the period the group has made gross invest- ments of shares and other securities to the value of SEK 162 mil- lion. Sales amounted to SEK 153 million. During the period there have been eight additional portfolio companies; Affärsstrategerna has invested SEK 36 million in InfiniCom AB, SEK 17 million in Net- babyworld AB, SEK 13.5 million in SWATS AB, SEK 5 million in Yesit- works.com AB, SEK 9.1 million in Doorways Education AB, SEK 4.5 million in MainBox AB, SEK 4.5 million in Mocat AB, SEK 7 million in Musicbrigade AB and SEK 3.5 million in Widermind AB. SEK 7.5 million has been brought into RS Cordless Technology AB by means of a convertible promissory note. As the result of a new share issue, SEK 3.5 million has been injected into Samba Sensors AB, SEK 2.5 million into Naty AB, SEK 1.5 million into EURIS AB, SEK 2.2 mil- lion into Skolboken.se AB and SEK 0.9 million into Web Update AB. A further SEK 4.8 million has been invested in AlphaHelix AB, SEK 4.7 million in FreeHand AB and SEK 1.8 million in Chemel AB. After the period SEK 6 million was newly invested in RaySearch Laboratories AB. Affärsstrategerna with the subsidiary Värdepappersstrategerna AB have increased their holding in Artema Medical AB through a new share issue of 550,000 shares. 539,500 shares in Artimplant AB have been sold. During the period 70,000 shares net have been sold in Fingerprint Cards AB. The subsidiary Game Design AB has been sold against new shares in Netbabyworld AB. The holding in Financial Edge Develop- ment AB (FED) has been sold. Payment took the form of shares in InfiniCom AB. In addition to this, the holding in Allgon AB has been sold. The holdings in Cortree AB and Safeplus have been writ- ten down to 0, debiting the profit by a total of SEK 23.0 million. The combined sale profit for the parent company amounted to SEK 78.4 million. The parent company showed a profit of SEK 68.2 mil- lion (4.2) after financial income and expense. The solidity for the group on 30th September amounted to 94 percent (73). Special general meeting on 27th October 2000 Affärsstrategerna's board has decided to propose that a special general meeting on 27th October 2000 should make a resolution authorising the board over the period up to the next annual general meeting, for the acquisition of capital for continued investments in growth companies and deviating from the shareholders' preferen- tial right, to carry out one or more new share issues totalling a maximum of 3,000,000 shares or share derivatives of series B at a nominal SEK 2.50 per share against cash payment, offset or non-cash issue at a subscription price which essentially corresponds to the market value for the company's B-share on each occasion the authorisation is utilised. It is proposed the special general meeting should also make resolu- tions regarding options for employees at Affärsstrategerna in ac- cordance with the board's proposals. It is proposed this take place by issuing promissory notes. The promissory note is combined with 200,000 separable options, each of which give the right to sub- scribe for a new share in the company for a nominal price of SEK 2.50. The redemption price will be ascertained by means of an evaluation corresponding to twice the average for the latest price paid for each trading day for the company's B-share during the pe- riod 17th October to 26th October 2000 inclusive. With full utilisation, the company's share capital can increase by SEK 500,000, corresponding to around two percent of the total share capital and around one percent of the total number of votes after full dilution. This replaces the programme of options resolved on at the special general meeting on 24th March 2000. ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/11/08/20001108BIT00840/bit0001.doc The full report http://www.bit.se/bitonline/2000/11/08/20001108BIT00840/bit0002.pdf The full report