Interim Report on the operations of AB Custos

INTERIM REPORT ON THE OPERATIONS OF AB CUSTOS FOR THE PERIOD JANUARY 1 - JUNE 30, 2002 · Total return on Custos shares during the report period was 14 percent, more than 35 percentage points better than the SIX Return Index. · Redemption of shares with payment in the form of shares in Pergo plus cash. Total return Total return on Custos shares for the report period was 13.7 percent. Return, January 1, 2002 - June 30, 2002 % Total return on Custos shares 1 13.7 Cost of shareholders' equity 2 3.4 SIX Portfolio Return Index -20.4 SIX Return Index -21.9 1 Return taking into account share price appreciation and, where appropriate, dividend paid and share redemption. 2 Measured as the average 12-month Swedish Treasury bill rate plus a risk premium of 3 percent during the six-month period. In this Interim Report, total net asset value, net asset value per share etc. are calculated on the assumption of full acceptance of Custos' offer of redemption of Custos shares with payment in the form of shares in the laminate flooring company Pergo plus cash. The Report assumes that the redemption payment has been distributed and the corresponding Custos shares have been redeemed. The last day for trading in Custos shares carrying redemption rights was June 26, 2002. The registration period for redemption of shares is July 8 August 14, 2002. However, the formal financial statements include Custos' entire holding of shares in Pergo and cash, since the final compilation of the number of Custos shares registered for redemption and thus the number of Pergo shares plus cash that will be distributed in the redemption program is expected to be completed late in August. Furthermore, completion of the offer is conditional upon the requisite decisions made by an Extraordinary General Meeting of Custos on June 26, 2002 and by the Board of Directors, as authorized by the Extraordinary General Meeting on June 26, 2002, being implemented and registered with the Swedish Patent and Registration Office ("PRV"). For further information, please see the brochure "Offer for redemption of shares in AB Custos (publ), with payment in the form of shares in Pergo AB (publ) plus cash." This brochure is available at the Company's office and is sent to those shareholders who request it. Net asset value Total net asset value on June 30, 2002 was MSEK 1,399 (Dec. 31, 2001: 3,046), which was equivalent to SEK 189 (Dec. 31, 2001: 224) per share. Value per share is based on 7,389,540 Custos shares. During the first half, the largest positive impact on net asset value was from Custos' holdings in the automotive retailer Bilia, the office supplies manufacturer Esselte and the chemical company Sydsvenska Kemi. Net asset value on June 30, 2002 is calculated on the assumptions mentioned on the previous page (see also "Redemption of Custos shares with payment in the form of shares in Pergo plus cash" below). The same applies to the synthetically repurchased shares. On June 30, 2002, the market price of a Custos share was SEK 160 (December 31, 2001: 201.50). On June 30, 2002, Custos' discount to net asset value was 15 percent. This was higher than at year-end 2001, when the discount amounted to 10 percent. Number of Custos shares, June 30, 2002 Number of ordinary shares (1 vote) Number of shares registered with PRV 8,214,268 Synthetic buy-backs of Custos' own shares 3,302 Number of shares included in Custos' redemption offer by means of redemption rights 821,426 (prel) Number of shares on which net asset value per 7,389,540 share is based On July 16, 2002, net asset value was calculated at a total of MSEK 1,353, or SEK 183 per share. The discount to net asset value amounted to 10 percent. Change in net asset value, MSEK Jan 1, 2002- Jun 30, 2002 Net asset value, January 1 1 3, 046 Dividends 28 Administrative expenses -12 Other income and expenses 22 Income from fixed-asset receivables 1 Financial income and expenses 20 Taxes -1 12 Change in value of securities portfolio Bilia 45 Esselte 31 Sydsvenska Kemi 17 SCA 7 Perbio Science 6 Pergo2 6 Volvo 5 C. Tybring-Gjedde -3 Christian Salvesen 3 5 Other holdings 24 133 Change in net asset value before dividend etc. 145 Dividend to shareholders 197 Preliminary value of Pergo shares and cash 254 distributed 2 Payment for shares redeemed 4 -1,341 Change in value from synthetic buy-backs of 0 Custos' own shares (swap agreement 3) which arose during 2002 Preliminary redemption amount of synthetic share -1 buy-backs on June 30, 2002 (swap agreement 3) 5 Transfer of market value of synthetic share buy- 1 backs on December 31, 2001 (swap agreement 3) Net asset value at end of period 1,399 1 The Custos shares that were included in the synthetic buy-back program on December 31, 2001, as provided by a mandate from the Annual General Meeting on April 5, 2001 (swap agreement 3), are assumed to have been redeemed at the market value prevailing on December 31, 2001 (MSEK 1). 2 The Pergo shares that will comprise payment in Custos' redemption procedure have been distributed at their market value on June 26, 2002. 3 Including earnings from forward currency contracts (GBP). 4 Payment upon completion of redemption (see "Redemption of Custos shares with payment in cash" below). 5 The Custos shares that were included in the synthetic buy-back program on June 30, 2002, as provided by a mandate from the Annual General Meeting on April 5, 2001 (swap agreement 3), are assumed to have been redeemed at the market value prevailing on June 30, 2002 (MSEK 1). Net asset value on June 30, 2002, allocated by assets and liabilities Price Market SEK per Listed companies Number per value, Custos 1 share, MSEK share SEK Christian Salvesen 24,065,00 12.55 302 41 0 Bilia 3,033,163 85.00 258 35 C. Tybring-Gjedde 29,390,00 1.95 57 8 0 C. Tybring-Gjedde 17,045,85 2.85 49 2 6 (convertible loan) 0 Esselte, Series A 283,900 86.00 24 3 Esselte, Series B 863,400 88.00 76 10 Volvo, Series B 249,000 190.50 47 6 Perbio Science 173,344 170.00 29 4 Pergo 11,892,85 17.10 203 28 2 Pergo for distribution to 11,499,96 17.10 -196 3 27 shareholders 4 Other listed shares 122 16 Subtotal listed companies 971 130 Options issued -1 -0 Total listed companies 970 130 Unlisted companies Acando 61 8 Other unlisted companies 167 23 Subtotal unlisted companies 228 31 Options issued, Acando -2 -0 Total unlisted companies 226 31 Debentures, Sydsvenska Kemi 15,857,13 15.30 243 33 9 Other assets 220 30 Total assets 1,659 224 Liabilities -194 4 -26 Cash payment for redemption -66 3 -9 shares Net asset value 1,399 189 1 Calculated on the basis of 7,389,540 shares. 2 Convertible debenture loan equivalent to 17,045,850 shares. 3 Assuming full acceptance of Custos' redemption program by those shareholders who redeem shares by means of redemption rights. 4 Adjusted for the market value of options issued, assumed redemption payment for synthetically repurchased shares etc. Information schedule · Interim Report, January 1 - September 30 October 17, 2002 Only reports attributable to the full-year accounts are distributed to the shareholders. Other reports will be available at the Company's office and will be sent to shareholders who request them. All reports are also available on the Company's web site, Stockholm, July 17, 2002 AKTIEBOLAGET CUSTOS (publ) Mikael Nachemson Chief Executive Officer ------------------------------------------------------------ This information was brought to you by Waymaker The following files are available for download: The full report The full report