Interim Report Investment AB Bure

Investment AB Bure Interim Report 1 (15) Interim Report January - September 1998 Consolidated profit after financial items increased to SEK 729M (693). Earnings per share amounted to SEK 9.50 (10.70). On a rolling 12-month basis, earnings amounted to SEK 9.85 per share (1997 full-year, 11.00). Consolidated sales rose by 49 per cent to SEK 9,492M (6,388). Health Care's net sales increased by 62 per cent. Operating profit of included operations before goodwill depreciation amounted to SEK 60M (36). IT/InfoMedia's operating profit improved to SEK 303M (44). The result includes Scribona's divestment of Svanströms at SEK 168M. Scribona's holding in Sifo Group was distributed to the shareholders in Sep- tember. At 30 September, Bure's holding amounted to 50.3 per cent. Total yield for the shareholders including dividend received amounted to 4.8 per cent during the period. Findatas yield index amounted to -2.3 per cent. Bures business concept Bure, as an active owner to contribute capital and expertise with the objec- tive of creating high growth in value for its shareholders. This will be achieved by Bure contributing to define industrial values and to implement structural change. Summary of operations Consolidated profit after financial items increased to SEK 729M (693). The figure includes results of the Group's consolidated companies at SEK 271M, of which SEK 168M is attributable to Scribona's divestment of Svanströms. The trend in Business Areas Health Care and IT/InfoMedia remains strong. Profit for the third quarter is lower than planned due to the holiday months which bring about lower capacity utilisation within the service sector during the period. Earnings per share amounted to SEK 9.50 (10.70) which provides for a profit of SEK 9.85 per share for the latest twelve-month period. Consolidated sales increased by 49 per cent to SEK 9,492M (6,388). The in- crease is particularly due to the high rate of acquisitions in the Business Areas. Scribona is consolidated for the whole period in 1998 which has con- tributed to the growth rate as Scribona was not consolidated for the whole of the previous year. Sales growth in Bure Health Care amounted to 62 per cent compared with the corresponding period in the previous year. The Business Area continued its expansion in the Nordic countries with several acquisitions in Norway and Sweden. In order to secure rapid continued growth and financial readiness for action, the Parent Company has negotiated credit promises amounting to more than SEK 2,000M. As a result, criteria are created for larger investments and an oppor- tunity to optimise the capital structure. Group investments amounted to SEK 840M. During the same period divestments amounted to SEK 660M. At 30 September, the equity ratio in the Group amounted to 47 per cent (52). At the turn of the year, the equity ratio amounted to 46 per cent. Investment AB Bure Interim Report 2 (15) During the period, IT/InfoMedia acquired 54 per cent of the shares in Dimen- sion AB and 75 per cent of the shares in Erda AB. In June, 6 per cent of the American web measuring company, Relevant Knowledge, was acquired. In Invest- ments, during the period Chematur Engineering acquired the German engineering company Plinke GmbH. In connection with Nobel Biocare's acquisition of the American implant com- pany, Steri-Oss, Bure participated in the planned new share issue. In addi- tion, further shares were acquired on the market which increased Bure's owner- ship from 12 to approximately 16 per cent. Following the stockmarket listing in May, Guide Konsult has developed posi- tively despite the extensive stockmarket fall. The spread of ownership made visible a surplus value which amounted to SEK 226M on 30 September. Bure re- duced its holding from 46 per cent to 34 per cent which provided for a con- solidated capital gain of SEK 39M. The reconstruction of the sawmill equipment manufacturer, Troponor, which was carried out in March, is charged to consolidated profit at SEK 33M. In connec- tion with the reconstruction, Bure's ownership decreased to 40 per cent. The dramatic development on the stockmarket during the third quarter meant that the Findata Yield Index fell by 2.3 per cent during the year. Bure's As- set Management reports a positive yield of 3.6 per cent. Capital gains amounted to SEK 137M. On 30 September, Bure's net asset value after dividend paid of SEK 5.50 amounted to SEK 82 per share. Of Bure's investments, approximately one third are unlisted holdings which in the reporting of the net asset value is valued at book value. On 2 November the net asset value amounted to SEK 82 per share. Consolidated Nine monthsConsolidated 30 Sep 31 Dec Income Statement, 1998 1997Balance SEK M Sheet, SEK M 1998 1997 Net sales 9,492 6,388Assets Operating expenses -9,170 -6,334Fixed assets 5,2224,323 Shares in results 63 81Current as- 3,6074,203 of associated com- sets panies Operating profit 385 135Total assets 8,8298,526 before goodwill de- preciation Equity and liabilities Goodwill deprecia- -100 -33 Equity 4,1603,937 tion Operating profit 285 102 Minority 603 660 interest Provisions 261 202 Dividends 23 29 Long-term 761 398 liabilities Capital gains, net 427 519 Current li- 3,0443,329 abilities Interest income 23 54Total equity 8,8298,526 and liabili- ties Interest expenses -43 -17 Other financial 14 6 Investment AB Bure Interim Report 3 (15) items Profit after finan- 729 693 cial items Minority interest -140 -56 Taxes -70 -54 Net profit 519 583 The Bure share During spring, the Bure share developed very strongly with a new all-time-high of SEK 134.50. Thereafter, the trend has been declining and has followed the global stockmarket fall. On 30 September, the share price was SEK 104 and on the same date, net asset value amounted to SEK 82. Total yield for the share- holders including dividend received amounted to 4.8 per cent during the pe- riod. The number of shareholders increased strongly during the period, from 7,700 to more than 11,000. Key figures per 3009 31129 31129 share, SEK 98 8 6 Net profit*, Group 9.85 11.00 7.55 Equity, Group 76.2 72.20 66.00 5 Net asset value, 82 88 81 Parent Company Market price 104. 104.5 81.00 00 0 Dividend paid 5.50 5.00 3.25 Total yield*, % 11 35 91 Share data Number of shares, 54,5 54,55 54,55 000 50 0 0 Number of owners 11,1 7,700 4,500 00 * Latest 12 months [REMOVED GRAPHICS] Dividend Policy Bure´s dividend policy means that at least 5 per cent of the reported net as- set value will be paid to the shareholders, however not less than 5 SEK (until and including 1999). 1998 a dividend of 5.50 SEK per share, equivalent to a yield of 5.2 per cent, were paid to the shareholders. Health Care, SEK 9-months 98 9-months 97 Full-year 1997 M Net sales 1,567 968 1,488 Operating ex- -1,507 -932 -1,423 Investment AB Bure Interim Report 4 (15) penses Operating profit before goodwill depre- 60 36 65 ciation Goodwill depre- -22 -13 -19 ciation Management & new -20 -15 -26 projects Capital result 2 7 7 Operating profit 20 15 27 Health Care The Business Area is to be the player on the health care market which best meets the demands of the patients and the principals of the health care sec- tor. Bure Health Care's net sales increased by 62 per cent to SEK 1,567M (968). Op- erating profit of operations before goodwill depreciation of the included op- erations improved and amounted to SEK 60M (36), operating margin amounted to 3.8 per cent. Specialist Care's net sales increased by 114 per cent to SEK 400M (187). Ex- pansion was especially strong in Norway. Operating profit before goodwill de- preciation amounted to SEK 21M (11). Capacity utilisation in the Business Sec- tor was satisfactory in September but as planned was affected by the holiday period during July and August. The profit departure in the third quarter com- pared with the corresponding period in the previous year is mainly due to the fact that Volvat acquired a number of units which were not consolidated during the traditionally weak summer period in the previous year. In February, the remaining 50 per cent in Smärtkliniken Kronan was acquired. In the same month, Volvat acquired all the shares in Bergen Medisinske Senter. In July, all the shares were acquired in Hjärtmottagningen i Helsingborg which strengthens the Business Sector's competence in cardiology. Geriatric Care reported operating profit before goodwill depreciation of SEK 12M (10). Net sales amounted to SEK 93M (67), mainly due to increased contract volume in all units. Operations expanded further during the period. Acquisi- tions were carried out of Vennersborg AS in Oslo, Bellevuegårdens Vårdhem and Altropart Kasper in Malmö, and Servicehuset Landskronan in Landskrona. Con- struction of a nursing home in Gothenburg, based on Bure's own geriatric care concept continues according to plan and it is expected that it will be possi- ble to start moving patients in during the second quarter of 1999. Operations in MiaMedica and Oxie Vårdhem were merged with Bure Vård och Omsorg AB at the beginning of the year. Occupational Health Care reported operating profit before goodwill depreciation of SEK 4M (3). Net sales amounted to SEK 361M (348). From January 1998, in addition to Previa, Volvat's occupational health care as well as Skånehälsan within Cityklinikerna are also included in the Business Sector. Health Care, SEK M Net sales Operating profit before goodwill depreciation Business Q3- Q2- Q1- Q4- Q3- Q3- Q2- Q1- Q4- Q3- 98 98 98 97 97 98 98 98 97 97 Sectors Specialist 119 137 144 137 101 0 7 14 12 6 Investment AB Bure Interim Report 5 (15) Care Geriatric 35 30 28 31 21 5 4 3 2 5 Care Occupational 110 125 126 152 108 1 3 0 14 -1 Health Care Diagnostics 101 117 114 90 72 -1 7 4 4 2 Materials 134 133 141 133 69 3 5 6 -1 2 Supply Elimination, -9 -8 -8 -23 -8 - - -1 -2 1 divested Total 490 533 545 520 363 8 26 26 29 15 Operating 1.6 4.8 4.8 5.6 4.1 Margin, % The poor result is a consequence of a large exposure to traditional occupa- tional health care services with low profitability within Previa. The health care-related services contribute both with higher margins and growth as within Volvat and Skånehälsan and therefore also Previa is now increasingly concen- trated on that type of service. Diagnostics' operating profit before goodwill depreciation improved to SEK 10M (7). Net sales increased to SEK 332M (226). Operations in Norway and Den- mark are developing very strongly. The Swedish operations reported a negative result during the summer months but made a substantial profit in September. Operations in Poland reported a loss during the period. During the period, a number of large contracts were renegotiated which will provide a positive ef- fect on profit next year. Materials Supply's operating profit before goodwill depreciation amounted to SEK 14M (5). Net sales increased to SEK 408M (133). During the period, growth was high and several new contracts were signed both with public administration and private hotel operations. During the period, an agreement was signed to acquire the materials depot for health care products in Västernorrland County Council. The new County Council in Skåne has decided to transfer volumes to its own operations in Kristianstad and Simonsen's operations in Lund will therefore be phased-out during the latter part of the year without further cost charges. Bure Managed Care Picker Europe - which is a joint venture between Bure Managed Care and The Picker Institute in Boston, USA - was in August assigned to carry out the first nationwide study into patients' perception and experience of health care in approximately 250 public hospitals in Great Britain. The contract will run for six years and is valued at approximately SEK 160M. In addition to the con- tract, there are opportunities for additional consulting assignments in the consequent work of change. Investment AB Bure finances Bure Managed Care. IT/InfoMedia, 9- 9- Full- SEK M months months year 98 97 1997 Net sales 7,418 9,934 7,623 Operating ex- -7,119 -4,864 -7479 penses Shares in re- sults of associ- 7 9 11 ated companies Operating profit Investment AB Bure Interim Report 6 (15) before goodwill 306 79 155 depreciation Goodwill depre- -43 -31 -49 ciation Management & new -10 -4 -8 projects Capital result 50 - - Operating profit 303 44 98 IT/InfoMedia The Business Sector's vision is to create the leading network of companies within IT Services and Information Services in the Nordic countries During the period, Bure IT/InfoMedia had a continued high rate of acquisition with several acquisitions in both IT Services and Information Services. In May, Guide Konsult was quoted on the O list of the Stockholm Stock Ex- change. Thereafter, the Guide share has developed positively despite the sig- nificant stockmarket fall during the period. On 30 September, the Guide share had risen by 46 per cent to SEK 128. In connection with the listing of Guide Konsult, Bure's ownership reduced from 46 per cent to 34 per cent which brought about a consolidated capital gain of SEK 39M. In addition, Bure re- ceived a dividend of SEK 12M during the period. During the period, Scribona carried out a significant streamlining of its op- erations through the divestment of Svanströms and through the distribution of Sifo Group which was thereafter quoted on the O list of the Stockholm Stock Exchange. The distribution is an important part of the structural work which has been carried out in Scribona over two years. The acquisition of 54 per cent of the shares in Dimension was completed in January. In June, 75 per cent of the IT consulting company, Erda was acquired. IT Services Guide Konsult's net sales rose by 91 per cent and amounted to SEK 395M. Profit amounted to SEK 22M which is equivalent to an increase of 90 per cent. The market for Guide is expected to remain strong during the year. Salcom Communication increased net sales by 54 per cent to SEK 344M. Profit after financial items amounted to SEK 6M. Particularly operations in Axnet de- veloped positively while, at the same time, costs were taken for the start-up of Business Area Enterprise System Management. Salcom's profit is mainly gen- erated during the latter part of the year. In July, the Finnish Internet com- pany, Finternet, which has sales of SEK 20M, was acquired. IT/InfoMedia, Net sales Earnings after finan- Invested Owner- MSEK cial items 1 Included com- 9- 9-months 1997 9-months 9- 1997 capi- ship % 1 panies months 1997 1998 months tal( 1998 1997 Guide Kon- 395 302 430 22 14 26 88 34 2 sult Salcom 344 223 328 6 3 5 62 57 3 Dimension 290 - - 22 - - 116 54 4 Udac 71 32 54 0 -6 -6 33 100 CR&T 19 11 15 3 - 2 8 45 3 Erda 10 - 1 - - 18 75 Sifo Group 617 499 723 42 43 77 - 50 Citat 109 61 83 5 3 5 31 85 Investment AB Bure Interim Report 7 (15) 5 Scribona 5,985 5,003 7,22 231 64 86 1,214( 50 9 Dimension's net sales amounted to SEK 290M. Profit after financial items amounted to SEK 22M. During the third quarter, two new areas were estab- lished within electronic trading and NT. These were well received and the new operations are expected to give a positive contribution to profit from the fourth quarter. Udac reports net sales of SEK 71M and a break-even result before depreciation of assets and liabilities goodwill for Adapt of SEK -9M. During the period, the right was acquired to Alfa which is one of the most comprehensive data systems in Europe for health care and which links all forms of care. In Sep- tember, a decision was made to sell the care operation to WM-data which is ex- pected to improve earnings in the last quarter. CR&T developed positively during the period with a profit after financial items of SEK 3M. Net sales amounted to SEK 19M. During the period, the com- puter security product, Firedoor, was organised in an independent company with the objective of spreading the ownership for a rapid expansion. Erda, which was acquired in June, is developing positively and reported net sales of SEK 10M for the period, June-September. Profit amounted to SEK 1M. Information Services Sifo Group reports net sales of SEK 617M (499). Operating profit increased by 22 per cent to SEK 65M (53). Profit after financial items amounted to SEK 42M after a provision of SEK 7M had been made for phasing-out the operations in the USA. The market for the Group's services remains good. Citat continues to develop positively. During the period, net sales rose by 79 per cent to SEK 109M (61). Profit after financial items amounted to SEK 5M (3). During the period, Reptil Grafiska and Projecta, both in Stockholm were acquired. Scribona Net sales of the Scribona Group amounted to SEK 5,985M (5,003), an increase of 20 per cent. Profit after financial items amounted to SEK 231M (64) including a capital gain of SEK 168M following the divestment of Svanströms. Operating profit before items affecting comparability amounted to SEK 47M (46). The market for PCs remained strong. Business Area Computer products reported sales of SEK 5,174M (4,001), an increase of 29 per cent. Operating profit amounted to SEK 26M (24). Earnings of the wholesale operations improved during the period, whereas Instru Data and Office Oslo reported falls in earnings. Toshiba's PC Division generates continued positive operating profit. Sales in Business Area Office Machines amounted to SEK 810M (1,034). Overall, the fall in sales are due to the divestment of the business areas operations within mobile phones. For comparable units the sales was unchanged. The mar- ket shows moderate growth following a strong increase in 1997. However, the growing share of digital products means improved opportunities for Scribona's brands. Operating profit amounted to SEK 35M (27). The margin in the Business Area has improved significantly following the structural changes which were implemented in the previous year. In May, Bure received a dividend from Scribona of SEK 181M. Investment AB Bure Interim Report 8 (15) Investments, SEK M 9 months 98 9 months 97 Full-year 1997 Net sales 507 498 632 Operating expenses -494 -474 -613 Shares in results of associated companies 56 75 88 Operating profit before 69 99 107 goodwill depreciation Goodwill depreciation -10 -5 -6 Management & new projects -12 -6 -15 Capital result 232 236 251 Operating profit 279 324 337 Investments The Business Area will in the short to medium term create growth in value and dividend capacity as a complement to the other Business Areas. The transaction rate in Investments was high, especially during the beginning of the period. The holding in Fritidsresor was divested with a capital gain of SEK 128M. Di- vestments were also made of the remaining holdings in Karlshamns, which gener- ated a capital gain of SEK 82M. Total net capital gains in Investments amounted to SEK 232M. In September, Bure increased its holding in Nobel Biocare from 12 to 16 per cent by participating in a new share issue and by acquiring additional shares on the market. Via Nordic Capital, SEK 96M was invested in Mölnlycke Health Care which is equivalent to an ownership of 14 per cent. The ownership in Troponor decreased from 66 to 40 per cent following the im- plemented reconstruction with a new principal owner. With the reconstruction work, Bure's consolidated profit was charged with SEK 33M, of which SEK 21M refers to capital loss on sale of shares. Wholly-owned companies Chematur Engineering's result after financial items amounted to SEK -20M. Postponement of awarded projects, among other things due to the financial de- velopments in Asia, affected the result. The German engineering company, Plinke, which was acquired during spring is doing very well and provides a positive profit contribution to the Group. The backlog amounts to more than SEK 1 billion which led to increased capacity utilisation. In September, the subsidiary, Weatherly, was awarded a contract to build an ethanol plant on Trinidad. The contract amounts to approximately SEK 300M in total. A stockmarket listing of Chematur Engineering is planned during 1999 on condi- tion that the start of awarded projects is not delayed still further. Investments, Net sales Profit after Invested Owner- 4 4 SEK M financial items capital( ship( Included com- 9- 9-1997 9- 9- 1997 panies months months 97 months months 98 98 97 1 Chematur 313 321 447 -20 1 20 247 100 2 Åre Vemdalen 176 173 195 40 42 29 143 100 Investment AB Bure Interim Report 9 (15) Gunnebo 2,687 2,188 3086 144 107 155 202 33 3 Svolder - - - 94 226 277 110 26 Nobel Biocare 855 771 1 068 18 62 112 222 12 Troponor 327 305 462 -10 -19 -59 49 40 Citykurorter 18 18 10 -13 -12 -23 5 100 1 1997 values exclusive Plinke. Accounting principles not comparable between 1997 and 1998 2 Pro forma for 1997 values 3 Refers to the period, 1 December-31 August 4 Bure book value at the period-end and ownership of capital. Åre Vemdalen's profit amounted to SEK 40M (42) after financial items. During the year, vigorous investments have been made in new lifts, service and snow production equipment with the aim of strengthening still further Åre's profile as the leading alpine centre in the Nordic countries. The booking situation ahead of the winter season is positive. Partly-owned companies Gunnebo's profit after financial items increased by 35 per cent and amounted to SEK 144M (107) during the period. Net sales improved by 23 per cent and amounted to SEK 2,687M (2,188). During the period, the focusing on security products continued. In total, five acquisitions and two divestments were car- ried out. In June, a global collaboration agreement was signed with the Brit- ish company, De La Rue and, as a step in this, the German company, Garny Si- cherheitstechnik was acquired. Garny is the leading manufacturer in Germany of security products for the banking sector and has sales of approximately SEK 300M. Through the acquisition, Gunnebo Värdeskydd becomes the largest manufac- turer of products for security protection in Europe with annual sales of more than SEK 900M. Svolder has a split financial year with 31 August as the closing date. Profit after taxes for the 97/98 financial year amounted to SEK 144M (269). During the same period, net asset value increased by 8 per cent including dividend paid. On 30 October, net asset value amounted to SEK 129 per share or SEK 825M in total. Nobel Biocare's profit after financial items amounted to SEK 18M (62). The re- sult includes items affecting comparability at SEK -52M which relate to a pat- ent dispute in the USA. Net sales amounted to SEK 855M (771). During the pe- riod, growth for Procera was very strong, especially in North America. In September, the American implant company, Steri-Oss, was acquired which means doubling the business volume in the USA and Nobel Biocare becomes the market leader in Germany. Troponor reports a result after financial items of SEK -10M (-19). The negative result is largely attributable to an individual loss proj- ect. The other operations developed positively. The reconstruction work which is now being implemented is expected to give positive effects on earnings al- ready this year. However, the full-year result is nevertheless expected to be negative for 1998. Funds Within the framework of Nordic Capital, during the period 14 per cent of the shares was acquired in Mölnlycke Health Care which is a merger of Mölnlycke Clinical Products and Tamro Kolmi Set. The company is the market leader in Investment AB Bure Interim Report 10 (15) Europe in surgical products. In addition, 4 per cent was acquired in Essex during the period for an investment of SEK 16M. Essex, which is a contract manufacturer of electronics products with an emphasis on medical technology, telecom and industrial process control, is the first investment in Nordic Capital's newly-established third fund. Asset management, SEK M 30 Sep 31 December 1998 1997 1996 1995 1994 Shares 788 836 713 593 1,182 Interest-bearing investments - 431 1,033 864 1,014 Total 788 1,267 1,746 1,457 2,196 Capital gains, net 137 318 79 185 361 Yield of stock portfolio, % 3.6 26.4 54.5 17.4 9.8 The Findata Yield Index,% -2.3 27.8 43.3 20.6 6.5 Parent Company The Parent Company's profit after tax amounted to SEK 579M (617). The result includes dividends received amounting to SEK 231M (135). Bure's net asset value including dividend paid amounted to SEK 82 per share on 30 September. Approximately one-third of Bure's investments consist of unlisted sharehold- ings which are entered at book value in the net asset value. During the period, Asset management's stock portfolio yielded a return of 3.6 per cent compared with the Findata Yield Index of -2.3 per cent. Capital gains amounted to SEK 137M. On 30 September, the market value of the stock portfolio amounted to SEK 788M. During the period, the Parent Company invested SEK 645M (798). The Parent Company's equity ratio amounted to 90 per cent (95). During the autumn, the Parent Company has made an agreement about 3-5 years' credit promises for more than SEK 2,000M. As a result, Bure is assured finan- cial readiness to take action for continued growth and major investments. In April, Asset management's interest-bearing investments were phased-out. Personnel The average number of employees in September amounted 6,101 (5,904) in the Group and to 25 in the Parent Company, of whom 8 belong to the Business Area managements in IT/InfoMedia and Investments. After the end of the reporting period In October, Health Care continued its expansion in Norway by acquiring one of the country's leading X-ray institutes - Tönnsberg Röntgeninstitutt AS. In October, Simonsen acquired Textilia Tvätt och Textilservice AB from the Stockholm County Council and at the same time signed a five-year sales con- tract with an opportunity for two years' extension. At the end of October, Bure IT/InfoMedia acquired 40 per cent of the shares in the leading network company in Finland, Santa Monica Software. Bure has an op- tion to acquire an additional 20 per cent in 1999. During 1999, Santa Monica's operations will be co-ordinated with the Bure-owned company, Salcom. As a re- sult, a leading Nordic network supplier will be created with annual sales of approximately SEK 800M. Investment AB Bure Interim Report 11 (15) At the beginning of November, two-thirds of Bure's holding in Svolder was sold. The divestment provided the Parent Company with a capital gain of SEK 63M. The consolidated result effect was SEK -4M. Following the sale, Bure's holding amounts to 8.3 per cent of capital and 32 per cent of votes. In November, the Fridhemmet nursing home in Skåne was acquired within Health Care. The facility has accommodation for approximately 50 residents. Roger Holtback President and CEO Göteborg, 5 November 1998 Investment AB Bure (publ) This report has not been the subject of an examination by the Company's Audi- tors. For further information, please contact: ger Holtback, President, +46 31-335 76 35 ns Ljungkvist, Chief Financial Officer, +46 31-335 76 35 ut Leman, Head of Corporate Communications, +46 31-335 76 75 formation is also available on: www.bure.se ture Reports: Preliminary Accounts Report will be published 23 February 1999 Consolidated Statement Q 3 -98 Q2 -98 Q1 -98 Q4 -97 Q3 -97 of Income, SEK M Net sales 2,862.4 3,501.9 3,128.0 3,423.4 2,306.1 1 Operating expenses -2,870.2 -3,450.7-2,849.8( -3,343.8 -2,317.4 Shares in results of 19.8 38.6 4.9 16.2 40.7 associated companies Operating profit after 12.0 89.8 283.1 95.8 29.4 goodwill depreciation 2 Goodwill depreciation -31.0 -41.1( -27.5 -49.9 -24.1 Operating profit -19.1 48.7 255.6 45.9 5.3 Dividend 0.1 22.5 0.6 0.8 0.3 Capital gains, net 49.7 130.6 246.3 37.8 170.0 Interest income 1.5 12.6 9.2 11.3 14.1 Interest expenses -11.5 -17.0 -14.0 -14.1 -4.8 Other financial items 4.9 4.6 3.8 6.3 -5.7 Profit after financial 25.6 201.9 501.5 88.0 179.2 items Minority interest -19.2 -12.6 -109.0 -12.8 -14.4 Taxes -0.2 -37.7 -31.6 -56.8 -8.1 Net profit 6.3 151.6 360.9 18.4 156.7 1 Including items affecting comparability of SEK +170M 2, Including depreciation of SEK -8M in Udac Net asset value Q3 - Q2 -98 Q1 -98 Q4 -97 Q3 -97 Parent Company, 98 SEK M Health Care 605 554 517 501 480 IT/InfoMedia:Scribona 1,034 1,645 1,813 1,575 1,434 Guide 314 393 104 104 93 Unlisted 293 275 236 136 142 companies Investments: 451 560 632 485 603 Investment AB Bure Interim Report 12 (15) Gunnebo Svolder 218 265 246 264 293 Nobel Biocare 373 281 210 227 - Åre Vemdalen 143 143 143 143 143 Chematur 247 247 125 125 125 Troponor 49 49 49 59 94 Karlshamns - - - 99 81 Nordic Capital 154 154 160 71 55 Other companies 48 49 47 47 32 Asset management: Shares 788 1,056 977 836 999 Interest-bearing - - 247 431 403 Other 197 138 144 85 58 Total assets 4,914 5,809 5,650 5,188 5,035 Liabilities -452 -152 -231 -370 -20 Net asset value 4,462 5,657 ,419 4,818 5,015 Per share, SEK 82 104 99 88 92 Calculation of Bure's net asset value The net asset value is defined as the difference between the Parent Company's assets and liabilities where the market-listed assets have been valued at mar- ket value. The calculation of Bure's net asset value is made on the basis of the Parent Company's Balance Sheet and consists of visible equity, including profits during the period and surplus values in market-listed assets. Listed securities are valued at current market price without taking into ac- count any value-added in control holdings. Bure's holdings of money market in- struments are valued at a price calculated at current market interest. Bure's holdings of shares in unlisted companies are entered at book values. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1998/11/05/19981105BIT00510/bit0001.pdf The full interim report http://www.bit.se/bitonline/1998/11/05/19981105BIT00510/bit0002.doc The full interim report