Interim report on the operations of a AB Custos for the period January 1 - September 30, 2000

INTERIM REPORT ON THE OPERATIONS OF AB CUSTOS FOR THE PERIOD JANUARY 1 - SEPTEMBER 30, 2000 * Total return on Custos shares during the report period was 37.6 percent. The SIX Return Index rose by 1.3 percent during the same period. Total return Total return on Custos shares for the report period @ taking into account share price appreciation, dividend paid and redemption of shares @ was 37.6 percent. The equivalent return up to October 17, 2000 was 30.2. percent. Return, January 1, 2000 - September 30, 2000 % Total return 37.6 Consists of the following components: Change in net asset value 8.4 Change in discount to net asset value 20.8 Dividend (reinvested) 5.1 Cost of shareholders' equity(1) 6.4 SIX Portfolio Return Index -1.6 SIX Return Index 1.3 (1) Measured as the average 12-month Swedish treasury bill rate plus a risk premium of 4 percent during the nine-month period. The total return for some of Custos' shareholdings is shown below. Return, January 1, 2000 - September 30, 2000 Portfolio holding % Perbio Science 151.3 Perstorp 54.7 Christian Salvesen 43.7 Bilia 22.8 Svedala 8.4 C. Tybring-Gjedde -13.7 SCA -30.0 Net asset value Total net asset value on September 30, 2000 was MSEK 7,376, or SEK 299 per share. Net asset value per share was calculated on the basis of 24,629,280 Custos shares, thereby assuming that the synthetically repurchased shares, as provided by a mandate from the Annual General Meeting on April 5, 2000, have been redeemed (see "Synthetic buy-backs of Custos' own shares"). On September 30, 2000, Custos' discount to net asset value was 10 percent. If the Custos shares included in the synthetic buy-backs had been valued at market value, net asset value would have totaled MSEK 8,219 on September 30, 2000, or SEK 296 per share. In this case, net asset value is calculated on the basis of 27,758,803 Custos shares. Total net asset value on December 31, 1999 was MSEK 7,896, or SEK 276 per share. Net asset value per share is calculated on the basis of 28,573,037 shares, thereby assuming that the synthetic buy-backs on December 31, 1999 had been redeemed. If the Custos shares included in the synthetic buy- backs had been valued at market value, net asset value would have totaled MSEK 8,568 on December 31, 1999, or SEK 269 per share. Net asset value per share is calculated on the basis of 31,845,613 shares. Assuming that the synthetically repurchased shares had been redeemed on October 17, 2000, net asset value would have totaled an estimated MSEK 6,817, or SEK 277 per share. The discount to net asset value in that case was an estimated 8 percent. ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/10/18/20001018BIT00550/bit0001.doc The full report http://www.bit.se/bitonline/2000/10/18/20001018BIT00550/bit0002.pdf The full report