Interimreport January - March 2000

January - March 2000 Net sales increased by 2% to SEK 79.6 (77.9) million Operating result increased by SEK 3.783 (2.073) million Profit after financial items SEK 1.802 (1.022) million Positive sales development in the US, Asia and the Middle East/Africa make up for weak performance in Europe European distributors restructured First delivery of Optima Spiralpack for industrial applications GYLLING OPTIMA BATTERIES AB ( publ ) QUARTERLY REPORT JANUARY-MARCH, 2000 Market and sales Sales in the first quarter 2000 present a mixed picture. In the US, volumes rose by 9% despite the very mild winter which, according to BCI, caused total US battery sales in January-February to drop by about 20%. The distribution and development agreement with GNB is on schedule. Volume sales were up 11% in the Middle East/Africa region and 42% in Asia, while falling by 31% in Europe. Europe has been affected by the ever higher US dollar exchange rate. Optima has given notice to under-performing distributors while new ones have been appointed. These changes have resulted in some volume delays. Banner GmbH, Austria's leading battery manufacturer, has been appointed as Optima's new distributor in Austria and Switzerland; a measure which will improve Optima's coverage in these countries. A total of 127,107 batteries were sold in the first quarter of 2000, compared to 129,306 in the same period 1999. Production Production has focused on the new 75/35 battery for GNB. Capacity expansion and restructuring continued during the quarter. Research and Development During the quarter, Optima's new 36 volt prototypes were tested in cooperation with leading vehicle manufacturers in Europe. In these projects, Optima's technology has proven its leading position, as a result of which other projects involving the existing product range have now been initiated for similar applications. Result The Optima Group posted a profit after financial items of SEK 1.802 (1.022) million. Financial position The corporation's liquid assets as at 31 March amounted to SEK 2.661 (5.565) million. Unused overdraft facilities amounted to SEK 18.337 (15.927) million. Corporate investments in the period amounted to SEK 8.5 (1.8) million. The equity/assets ratio was 32.7 (35.9) percent while the debt/equity ratio was 1.58 (1.32). Sales Sales increased to SEK 79.627 (77. 934) million. Outlook North America has enjoyed its warmest winter in 109 years. More normal weather patterns during the rest of the year should result in good sales in the US. To compensate for the climate effect, Optima has focused on industrial applications. During the quarter, Optima established a collaborative Spiralpack venture with two leading suppliers of truck batteries. At the beginning of the year, all experts agreed that the dollar rate would drop in the spring and reach a level around SEK 8 by year-end. The actual trend has been the opposite and the Board now expects slow sales to continue in Europe. The Board forecasts volume growth of 15% in 2000. Annual General Meeting The Board has called the annual general meeting for 3:00 PM on May 18 at 90 Vendevägen, Danderyd, Sweden. Notice of attendance Shareholders wishing to attend the annual general meeting must: Be entered in the shareholder record maintained by VPC AB as of May 8, 2000. Give notice of attendance to the company by 4:00 PM on Tuesday, May 16, by writing to Gylling Optima Batteries AB, Box 742, S-182 17 Danderyd, or telephoning +46 (0)8-622 32 00. When notifying the company, shareholders must state their name, identity number, address and telephone number as well as registered share holdings. To be eligible to attend the annual general meeting, shareholders whose shares are registered through a trustee must arrange with their trustee for temporary registration of the shares in their own name. Such registration must be effected in good time before May 8, 2000. Upcoming opportunities for information Mid-year report, Thursday, August 24, 2000. Year-to-date report, January-September, 22 November, 2000 Danderyd, May 4, 2000 Bertil Gylling President and CEO Questions relating to this report will be handled by Deputy CEO Pär M. Ericson or Corporate Lawyer Lars Burström. This quarterly report has not been subject to auditors' review. [REMOVED GRAPHICS] CORPORATE STATEMENT OF PROFIT AND 2000- 1999- 1999- LOSS 01-01 01-01 01-01 SEK x 000 2000- 1999- 1999- 03-31 03-31 12-31 Net sales 79,627 77,934 324,462 Cost of goods sold -55,884-54,242- 226,678 Gross income 23,743 23,692 97,784 Sales and marketing expenses -8,837 -11,059-41,946 Administrative expenses -8,551 -9,306 -33,663 Research and development expenses -2,572 -1,254 -5,484 Operating result 3,783 2,073 16,691 Financial net -1,981 -1,051 -9,648 Result after financial net 1,802 1,022 7,043 Taxes -185 - 710 Result for the period 1,617 1,022 7,753 CORPORATE BALANCE SHEET SEK x 000 2000- 1999- 1999- 03-31 03-31 12-31 Capital assets 157,899106,407151,604 Other financial assets 40,989 32,524 35,680 Inventory 47,165 53,558 43,950 Accounts receivable 59,079 53,965 60,454 Liquid assets 2,904 5,565 6,114 Total assets 308,036252,019297,802 Paid-up capital 100,72090,424 98,170 Interest-bearing liabilities 159,337119,644151,574 Accounts payable 23,755 22,043 28,094 Other non-interest bearing 24,224 19,908 19,964 liabilities Total paid-up capital and 308,036252,019297,802 liabilities KEY NUMBERS 2000- 1999- 1999- 03-31 03-31 12-31 Gross margin (%) 29.82% 30.40% 30.14% Operating margin (%) 4.75% 2.66% 5.14% Profit margin (%) 2.26% 1.31% 2.17% Return on paid-up capital (%) 1.71% 1.14% 8.31% Return on working capital (%) 2.38% 1.96% 10.70% Equity/assets ratio (%) 32.70% 35.88% 32.96% Debt/assets ratio (factor) 1.58 1.32 1.54 Proportion of capital at risk (%) 32.70% 35.88% 32.96% Interest coverage ratio (factor) 1.48 1.33 1.41 Number of batteries sold 127,000129,000508,000 DATA PER SHARE 2000- 1999- 1999- 03-31 03-31 12-31 Number of shares 29,915,29,915,29,915, 400 400 400 Profit per share after tax 0.05 0.04 0.26 P/E ratio (factor) 231 209 52 Paid up capital SEK 3.37 3.02 3.28 CORPORATE CASH FLOW ANALYSIS SEK x 000 2000- 1999- 1999- 03-31 03-31 12-31 Cash flow from current operations before changes to working capital 3,450 4,022 11,325 Changes to working capital - 6,573 - 7,778- 33,856 Cash flow from current operations - 3,123 - 3,756- 22,531 Investment activities - 8,508 - 1,809- 18,967 Financing activities 8,178 - 1,67234,810 Cash flow during period - 3,453 - 7,237- 6,688 Liquid assets at start of year 6,114 12,802 12,802 Liquid assets at end of period 2,661 5,565 6,114 ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/04/01/20000831BIT00920/bit0001.doc http://www.bit.se/bitonline/2000/04/01/20000831BIT00920/bit0002.pdf