Atle-strong development during the second quarter

Interim Report January - June 1999 Strong development during the second quarter @ In the second quarter, consolidated earnings after financial items doubled compared with 1998 to SEK 475M (234) @ Accumulated earnings for six months were SEK 688M (750) @ Earnings of the Business Sectors from current operations increased by 22 per cent to SEK 187M (153) @ Studsvik's plant in the USA has been operating commercially since July. High order intake @ Continued positive market criteria - full-year profit is expected to exceed last year´s result Major events during 1999 Acquisitions @ 100 % of AKA Tempcold @ 25 % of Media Technology @ 24 % of Northern Technologies @ 11 % of Cellavision @ 16 % of Neoventa Medical @ 100% of Bierregaards @ 5% of BPA @ 3% of Nycomed Pharma @ 4% of Wilson Logistics Group @ The remaining 40 % of Divinycell Polimex @ Divestments @ Hymo @ V-Kran, converted to 12 % of Hemek @ Part of the holding in Håells @ Part of the holding in Mentor-Gruppen @ The holding in Zeteco @ The holding in Sabroe Refrigeration @ Stockmarket listing of Digital Vision carried out @ Exit profit on merger between Näckrosbuss and SL Buss @ Lysekils Havsdelikatesser @ Backupcentralen @ Part of the holding in Perlos Oy @ The holding in Stjärn-TV Net sales and results During the period, consolidated net sales amounted to SEK 4,547M (4,380). The proportion of net sales outside Sweden was 49 per cent (48). In the second quarter, consolidated earnings after financial items doubled compared with 1998 to SEK 475M (234). In comparison with the first quarter of this year, earnings also more than doubled from SEK 213M. Accumulated earnings for the first half of the year amounted to SEK 688M (750). Earnings before taxes of the Business Sectors were SEK 695M (720). Of this, earnings of the current operations are SEK 187M (153), whereas exit profits of SEK 508M are included (567). Investments and exits During the first six months of the year, the Group invested SEK 382M (1,526) in operating companies. Major acquisitions during the period consist of AKA Tempcold, Bierregaards and parts of Nycomed Pharma and BPA. After the end of the period, the remaining holding in Divinycell Polimex was acquired for SEK 150M. At end-June, the book value of the Business Sectors' investments in operating companies amounted to SEK 4,376M (4,119). During the period, 16 exits were carried out. The total sales figure amounts to SEK 936M (882) with an exit profit of SEK 508M (567). The largest exit profits emerged on the sales relating to Zeteco, Backupcentralen, Sabroe Refrigeration and Perlos. Market criteria The general state of the market affects the majority of the Group's holdings positively. The majority of the companies report increased order intake which has had, and during the following quarter should have, an impact Atle's earnings of the current operations. The flow of investment proposals are sound. Price levels of unlisted companies vary between sectors but remain attractive from a general point of view. The Group's exit opportunities are larger than in the previous year, partly as a consequence of increased interest from foreign buyers in companies within Atle's investment segment. Business Sector operations Consolidated net sales and earnings before taxes are shown in the following tables. The results of the Business Sectors include exit results. These form a natural and recurring part of the operations but vary between quarters. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/08/26/19990826BIT00300/bit0001.doc http://www.bit.se/bitonline/1999/08/26/19990826BIT00300/bit0002.pdf