Press release, Financial Year 2000

Press Release, Financial Year 2000 Total yield, including Capio, increased by 54 per cent * The shareholders' total yield including dividends was 36 per cent. For shareholders who have elected to keep Capio, the yield was 54 per cent. * The net asset value, Capio excluded, increased by 38 per cent. * Long-term creation of value and good timing generated significant exit results - total exit gains SEK 2,743M (529). * The parent company's financial position was considerably strengthened and the net cash holding was approximately SEK 1,150M at the turn of the year. The investment capacity for 2001 is significant. * Investments of SEK 890M were made in the TIME sectors during the year. * The Board of Directors proposes that the Annual General Meeting passes the following resolutions: * To pay a dividend of SEK 3 per share * To distribute one share in Observer for every six shares in Bure * To authorise the Board of Directors to buy back up to 10 per cent of the outstanding shares on the stockmarket. Subsequent events: * The net asset value at 20 February 2001 amounted to 71 SEK per share. * Dimension was listed on 20 February 2001. Bure sold 42 per cent of its holding and made an exit gain of SEK 379M. * Roger Holtback steps down as President at the Annual General Meeting and Peter Sandberg takes over. Group Results Consolidated profit after financial items for the full-year 2000 amounted to SEK 2,550M (447). The profit includes exit results of SEK 3,055M (495) and income related to funds from Alecta (formerly SPP) of SEK 204M. Capio, which was distributed to the shareholders in October, is only included in the results for the first six months of the year. In addition, the company was affected by a write-down of its holding in Scribona of SEK -256M at Group level. However, this does not affect Bure's net asset value. For the fourth quarter, the result after financial items thus amounts to SEK -392M (203). Parent company Results and financial position For full-year 2000, net profit amounted to SEK 1,767M (512) which is Bure's highest profit ever. Exit gains totalling SEK 2,743M (529) are included, of which SEK 66M relates to asset management. Management costs for the year amounted to SEK 203M (102). The costs were influenced by the intensive business operations as well as the increase in value of the staff's holdings of synthetic options of SEK 26M (5). During the year, Bure implemented a restructuring which meant that the former business areas were replaced by focused investment areas. Every investment team has defined yield requirements which are linked to a bonus system. Personnel costs for 2000 amounted to SEK 71M compared with SEK 39M in 1999. Expenditure for the stockmarket listing of Capio amounted to SEK 73M and, like the dividend, has been reported against equity. At the 2000 year end, total assets were SEK 4,690M, compared with SEK 6,361M at the start of the year. The change is mainly attributable to the distribution of Capio. Shareholders' equity fell by SEK 94M to SEK 4,310M (4,404), despite the fact that the distribution of Capio and the dividend affected shareholders' equity by SEK 1,860M. Bure's financial position is very strong. At the year end, the equity ratio amounted to 92 per cent, compared with 69 per cent at the start of the year. At 31 December 2000, Bure had net loan receivables amounting to SEK 1,149M. The parent company's net result for the fourth quarter amounted to SEK - 543M (221). The negative result for the fourth quarter is mainly explained by write-downs with SEK 382M, of which Scribona amounts to SEK 363M, and provisions for future commitments with SEK 111M. Exit results totalling SEK 12M are included in the quarterly result. Divestments and exit gains As a phase in the concentration of Bure into a private equity company with a focus on the TIME sector, Bure made nine divestments during 2000. The most significant divestments were the holdings in Guide/Framfab, Observer, Gunnebo and Nobel Biocare. During the year, successful exits were also made in Bure's indirect holdings, primarily the divestment of Altitun. Sales, excluding asset management, generated total exit gains during the year of SEK 2,677M. During the fourth quarter, Bure sold shares in ADC Telecommunications and in Formex. The sales generated exit gains of SEK 20M and SEK 5M, respectively. Both investments formed part of Innovationskapital's portfolio. Investments During the year, the parent company made investments and supplementary investments in 25 companies totalling SEK 893M (1,136) and decided to participate in funds with SEK 650M. The investment rate was slightly lower compared with the average for the past few years. Competition for investment objects was considerable and valuation levels deemed to be high in an investment market which, in general, was difficult to evaluate. During the fourth quarter, Bure invested in the high technology research and incubator company, Newmad Technologies AB. At the turn of the year, the holding amounted to 27 per cent of the capital. Newmad Technologies develops applications for the next generation's mobile IT-terminals with network connection to Bluetooth, Wireless-LAN and 3G. Through Newmad, an incubator company with a focus on wireless is added to Bure's network within the TIME sector. In addition, Bure invested SEK 4M in the IT security company, Appgate, winner of the year's Golden Mouse award. Together with Bure's present indirect holding in Appgate through CR&T and Innovationskapital, Bure's ownership in Appgate amounts to 42.5 per cent after the direct investment. In connection with the investment, ABN Amro and GE also entered as owners in Appgate. Successful stockmarket listing of Capio With an investment of SEK 1,460M, the distribution of Capio resulted in an increase in value for the shareholders of approximately SEK 1,200M on Capio's listing date. At the same time, Bure's shareholders were offered the opportunity to participate in Capio's future development on the stockmarket. At the 2000 year end, Capio's market value amounted to SEK 4,141M and the share price to SEK 70. From the stockmarket introduction in October until the end of the year, Capio's share price rose by 43 per cent. During the same period, the Affärsvärlden General Index fell by 10 per cent. Strong position for continued growth The parent company's result for 2000 was its highest profit ever. The strong result meant that Bure has significantly strengthened its financial position. Bure is an attractive collaboration partner for innovative growth companies and a large number of investment alternatives are currently being intensively evaluated. The inflow of interesting new projects is large and the valuation levels are lower than in the first half of 2000. Bure's newly-established investment team in Stockholm enables the company to focus on new business opportunities. During the year, the investment portfolio has been concentrated on unlisted companies within the TIME sector. As part of this focus, Bure divested its holdings in the listed companies, Gunnebo and Nobel Biocare, with substantial exit gains. Both holdings prove Bure's ability to develop and divest its portfolio with excellent timing. A good example of large values and exit gains which have been made visible is the sale of Guide/Framfab which generated an exit gain of more than SEK 1,100M for Bure. Another example is Bure's investment of SEK 3M in Altitun, via Innovationskapital, which resulted in an exit gain of SEK 202M after less then two years. Approximately SEK 20M was also added as an exit gain during the fourth quarter when the deal was completed. A further phase in the concentration on unlisted holdings is that Bure is now proposing that the Annual General Meeting should decide a distribution of Bure's holding in the listed company, Observer. Net asset value - before and after Capio At the year end, Bure's net asset value amounted to SEK 7,515M, or SEK 69 per share, compared with SEK 7,130M or SEK 65 per share in 1999. If the cash dividend and the distribution of Capio to the shareholders are taken into account, the net asset value increased by SEK 20 per share, which is equivalent to an increase of 38 per cent. Bure's share price When Capio was listed on 16 October, Bure's shareholders received one share in Capio for every two shares in Bure. Capio's market value was approximately SEK 2,900M, or SEK 24.50 per Bure share, which meant a value of a further SEK 6.50 per share in addition to Bure's reported net asset value. In total, Bure and Capio were valued at SEK 84 on the date of listing. During the fourth quarter, Capio's market price developed very strongly and amounted to SEK 70 at the year end. For shareholders who elected to keep the Capio share, the total yield was 54 per cent in 2000, whereas the total yield amounted to 36 per cent for shareholders who sold the Capio share at the listing date price. During the year, the investment company index rose by 14 per cent and fell by approximately 1 per cent during the quarter. Tax matters With reference to the 1993 financial year (Tax 94), Bure is involved in a tax dispute regarding whether or not the investment company tax status was complied with during that year. Bure has won both in the County Administrative Court and the Administrative Court of Appeal. The National Tax Board (RSV) has appealed against the judgement of the Administrative Court of Appeal to the Supreme Administrative Court which has not yet granted leave to appeal. Bure is reporting the dispute as a contingent liability at an estimated cost of SEK 201M including interest if Bure should lose the litigation. During autumn 2000, the National Tax Board announced that it would examine the short-term securities trading in the Swedish investment companies. During the autumn, the tax authority carried out a tax audit in Bure relating to the 1998 and 1999 financial years. In December, the tax authority announced that it would re-examine Bure's assessment for the 1998 financial year (1999 assessment). The tax authority questions if Bure exclusively or almost exclusively managed securities during 1998. This is one of the criteria that an investment company must fulfil. Bure is of the opinion that all the criteria for being regarded as an investment company have been fulfilled and is supported in its view by leading fiscal experts. In principle, Bure has no other assets than shares. Bure's operations consist almost exclusively of managing these shares. This is carried out in accordance with the market prerequisites and demands which the shareholders are entitled to put on the company. Should the tax authority be proved right, Bure's tax liability as a result of the decision would be SEK 735M including interest. The amount is reported as a contingent liability. Bure has appealed against the tax authority's decision and will request an advance notification for 2001. The Board of Directors Gothenburg, 21 February 2001 Bure Equity AB Subsequent events Bure's current President and CEO, Roger Holtback, will step down at the Annual General Meeting. Peter Sandberg has been appointed President and CEO from 26 April 2001. In January 2001, Bure sold its holding in Hagabadet. The sale generated a book gain of SEK 10M in the parent company. In February 2001, Bure acquired 25 per cent of the shares in Appelberg Publishing Agency AB. The company's operations are the production of company magazines and the investment is a first phase in Bure's investment within this sector. In addition, Bure has an option to increase its ownership to between 42 and 55 per cent until September 2002. CR&T Ventures' first investment has been made in the company, Cobolt AB, in which Bure's share of the investment amounted to SEK 4M for an ownership of 7.7 per cent. In January, Dimension's board of directors applied for a stockmarket listing and, on 20 February, Dimension was quoted on the O list of the OM Stockholm Exchange at a total value of SEK 1,904M. Bure sold 7,4 million shares, which resulted in an exit gain of SEK 379M. Bures remaining holding is 10,1 million shares equivalent to 35 per cent of the capital and votes in Dimension. Appropriation of profits Dividend The Board of Directors proposes that the earnings are distributed as follows: a cash dividend to the shareholders of SEK 3.00. distribution of one share in Observer for every six shares in Bure. This is equivalent to a total of all the shares, which Bure will own on the record day. Buy-back of shares In addition, the Board of Directors proposes that the Annual General Meeting authorises the Board until the date of the next AGM to buy backs shares on the stockmarket of up to 10 per cent of the company's outstanding shares. Annual General Meeting The Annual General Meeting will be held in Gothenburg, on Thursday 26 April 2001 at 2.30 pm. The notice of the AGM will be published in the Swedish daily press. Future reports Annual General Meeting 26 April 2001 Interim Report January-March 26 April 2001 Interim Report January-June 21 August 2001 Interim Report January-September 25 October 2001 Press release 2001 February 2002 For further information, please contact Roger Holtback, President +46 31 - 335 76 35 Benny Averpil, Chief Financial Officer +46 31 - 335 76 35 Knut Leman, Head of Corporate Communications +46 31 - 335 76 75 Telephone conference in Telephone conference in Swedish English At 3.30 pm (GMT +1) on 21 At 5 pm (GMT +1) on 21 February 2001, a telephone February 2001, a telephone conversation will take place conversation will take place in Swedish during which the in English during which the President, Roger Holtback will President, Roger Holtback will give a presentation of Bure's give a presentation of Bure's Preliminary Accounts Report. Preliminary Accounts Report. Entitled to take part are Entitled to take part are journalists and professionals journalists and professionals in the capital markets. in the capital markets. You can connect by telephoning You can connect by telephoning +44 20 8240 8245, quoting +44 20 8240 8243, quoting "Bure." "Bure." Welcome! Welcome! ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/02/21/20010221BIT00900/bit0003.doc The full report http://www.bit.se/bitonline/2001/02/21/20010221BIT00900/bit0003.pdf The full report