Interim Report January 1 - June 30 2002

INTERIM REPORT JANUARY 1 - JUNE 30 2002 * EARNINGS BEFORE TAX AND MINORITIES SEK -13 (2) MILLION * NON-RECURRING EXPENSES SEK 21 MILLION * UNDERLYING EARNINGS POSITIVE Performance and financial position Group Hagströmer & Qviberg (H&Q) reports for the first half of 2002 earnings before tax and minorities of SEK -13 (2) million. The earnings have been burdened by non-recurring expenses of SEK 21 million, comprising SEK 8 million for the closure of the New York office, SEK 4 million for staff redundancies, and operating earnings negatively affected by SEK 9 million for bad debt losses in Norway. Total operating income was SEK 190 (282) million. Net income from commissions and fees decreased by 24 percent to SEK 131 (173) million. Income from financial advisory services and underwriting was unchanged compared to the same period in the previous year at SEK 49 (49) million. Net income from financial transactions including dividends and net interest increased by 18 percent compared to the same period in the previous year, to SEK 59 (50) million. Operating expenses for the period amounted to SEK 203 (280) million, a decrease of 27 percent compared to the same period in the previous year. Staff expenses decreased by 35 percent to SEK 124 (192) million and other costs by 10 percent to SEK 79 (88) million. The group's liquid funds amounted to SEK 765 (1,474 per December 31, 2001) million. Shareholders' equity amounted to SEK 353 (389 per December 31, 2001) million, corresponding to SEK 68 (75 per December 31, 2001) per share. With issued warrants fully exercised, shareholders' equity amounts to SEK 389 (425 per December 31, 2001) million, corresponding to SEK 71 (78 per December 31, 2001) per share. Capital adequacy for the group amounted to 32 (26 per December 31, 2001) percent. The number of employees in the group on June 30 amounted to 229 (283 per June 30, 2001; 246 per December 31, 2001). The average number of employees during the period amounted to 233 (325). Parent Company The parent company reports for the period a net turnover amounting to SEK 0 (0) million and earnings before tax of SEK -56 (-18) million, with writedowns of subsidiaries accounting for SEK 46 million. H&Q Investment Banking Operating income for H&Q Investment Banking amounted to SEK 86 (83) million, an increase of 4 percent compared to the same period in the previous year. Earnings for the business unit, excluding the business in the USA, were positive. The number of employees on June 30 was 55 (75 per June 30, 2001; 73 per December 31, 2001). H&Q Private Banking H&Q Private Banking Operating income for H&Q Private Banking amounted to SEK 104 (145) million, a decrease of 28 percent in relation to the same period in the previous year. Earnings were positive for the business unit. Total managed capital decreased to SEK 15 (18 per December 31, 2001) billion as a result of lower market values. The net inflow of new clients and volumes remained positive. The number of employees on June 30 was 102 (124 per June 30, 2001; 102 per December 31, 2001). Outlook The level of activity in the financial sector is low, partly as a result of more than two years of stock market downturn. Hagströmer & Qviberg has met this with several cost-cutting programmes. Through this expenses have been reduced significantly. The measures taken during the year will achieve full effect from the fourth quarter. Current expenses, excluding bonuses, are estimated to amount to SEK 270 million on an annual basis, compared to SEK 335 million at the start of 2002 and SEK 460 million one year earlier. Hagströmer & Qviberg will therefore be able to present positive earnings in the future even if the level of activity remains low. Hagströmer & Qviberg will be well equipped when the climate changes for the financial sector. Stockholm, July 16, 2002 Patrik Enblad, Chief Executive Officer, Telephone + 46 (0) 8 696 17 00 Scheduled Reports Interim report Jan-SepOctober 17, 2002 Year-end report February 2003 Auditor's report for Hagströmer & Qviberg AB (Publ.) We have reviewed this interim report in accordance with the recommendations issued by the Swedish Institute of Authorised Public Accountants (FAR). A review is considerably limited compared to an audit. Nothing has come to our attention that indicates that the interim report does not fulfill the requirements of the Swedish Stock Exchange Act and the Swedish Annual Accounts Act. Stockholm, July 16, 2002 KPMG, Caj Nackstad, Authorised Public Accountant Hagströmer & Qviberg (H&Q) is a leading investment bank with a focus on Growth. H&Q finances Growth companies and supports those who create, build and finance Growth entrepreneurs and also companies and foundations. The business involves mainly advisory services, equities and derivatives trading, asset management and financial planning, and is conducted within the business units H&Q Investment Banking and H&Q Private Banking. The company's head office is in Stockholm. Business is also conducted in five further Swedish cities and from Oslo and Luxembourg. H&Q has around 215 employees. The company is listed on the Stockholm Stock Exchange O-list (HAGQ.ST). ------------------------------------------------------------ This information was brought to you by Waymaker The following files are available for download: The full report The full report