Interim Report January 1 - March 31 2002

INTERIM REPORT JANUARY 1 - MARCH 31 2002 · OPERATING INCOME SEK 103 (141) MILLION · OPERATING PROFIT SEK 6 (1) MILLION · CONTINUED GROWTH IN PRIVATE BANKING · INCREASED CONCENTRATION ON CORE AREAS Performance and financial position Group Hagströmer & Qviberg (H&Q) reports for the first quarter of 2002 earnings before tax and minority items of SEK 6 (1) million. Market activity was low during the period. Turnover on the Stockholm Exchange declined. Total operating income amounted to SEK 103 (141) million, a decline of 27 percent compared to the same period last year. Net income from commissions and fees declined by 22 percent to SEK 69 (88) million. Of the income from commissions and fees SEK 23 (20) million was attributable to financial advisory services and underwriting, an increase of 15 percent. Net earnings from financial transactions including dividends and net interest declined by 35 percent to SEK 34 (52) million. Operating expenses amounted to SEK 97 (140) million, a decline of 31 percent. Personnel expenses declined by 32 percent to SEK 65 (95) million, and other expenses by 29 percent to SEK 32 (45) million. The cost-reduction programmes implemented during 2001 had full impact during the first quarter of this year. After the end of the period a decision was taken to further concentrate the business to prioritised areas: · Financial planning and asset management · Corporate advisory services and capital acquisition · Trade in stocks and derivatives These measures include a merger of the company's research activities within the framework of a joint unit, and a reallocation of resources to prioritised areas. During the first quarter the office in San Francisco was closed. The business in New York is being evaluated. The group's liquid funds amounted to SEK 339 (1,474 per December 31, 2001) million. Shareholders' equity amounted to SEK 392 (389 per December 31, 2001) million, corresponding to SEK 78 (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 March 31 was 246 (329 per March 31, 2001; 247 per December 31, 2001). The average number of employees during the period was 247 (332). H&Q Investment Banking Operating income for H&Q Investment Banking amounted to SEK 45 million, a decline of 26 percent compared to the same period last year and a decline of 34 percent compared to the fourth quarter of 2001. A lower level of market activity, reduced brokerage fees due to considerably lower demand for secondary market analysis, and fewer completed capital acquisition assignments explain the decline in operating income compared with the previous year. Earnings were positive for this business unit. The number of employees on March 31 was 70 (86 per March 31, 2001; 73 per December 31, 2001). H&Q Private Banking Operating income for H&Q Private Banking amounted to SEK 58 million, which is unchanged in relation to the fourth quarter of 2001 but represents a decline of 22 percent compared to the first quarter of last year. A generally lower level of market activity and lower market values have been partly countered by increased sales of structured products and a continued net inflow to asset management. Earnings were positive for this business unit. Total managed capital was unchanged compared to the end of 2001 and amounted to SEK 18 billion. The number of employees on March 31 was 100 (146 per March 31, 2001; 102 per December 31, 2001). Miscellaneous The annual general meeting on April 9 approved a dividend for financial year 2001 of SEK 5 per share (common and preferred stock). The record date for payment of dividends was established as Friday, April 12, 2002. Payment is expected to take place through VPC on April 17, 2002. In addition the annual general meeting voted to approve a new issue of a maximum of 150,000 preferred shares to leading executives and key personnel. If this offering is fully subscribed share capital will increase by a maximum of SEK 6 million. Outlook The level of market activity so far this year has been low. Meanwhile, measures taken earlier to reduce the company's costs and the measures now being taken to strengthen income mean that Hagströmer & Qviberg is well equipped to improve its earnings and profitability when the economic environment for the financial industry improves. Stockholm, April 16, 2002 Patrik Enblad, Chief Executive Officer, Telephone + 46 (0) 8 696 17 00 Forthcoming reports Interim report Jan-JunJuly 16, 2002 INTERIM REPORT JAN-SEPOCTOBER 17, 2002 GROUP TRENDS PER 1Q 02 4Q 01 3Q 01 2Q 01 1Q 01 QUARTER (SEKM) Commissions and fees, 69 94 63 85 88 net Net interest income 8 14 8 14 12 Financial 26 37 4 -16 40 transactions including dividends, net Other operating - 3 - 58 1 income Operating income 103 148 75 141 141 Operating expenses -97 -115 -100 -140 -140 Profit before tax and 6 33 -25 1 1 minorities KEY RATIOS JAN-MAR JAN-MAR APR 01- JAN- JAN- JAN- 02 01 MAR 02 DEC 01 DEC 00 DEC 99* Operating income, 103 141 467 505 935 1,065 SEKm Operating expenses, -97 -140 -452 -495 -685 -712 SEKm Profit before tax and 6 1 15 10 250 353 minorities, SEKm Earnings per share 0.4 0.2 -0.6 -0.8 36 49 before dilution, SEK Earnings per share 0.4 0.2 -0.5 -0.8 35 47 after dilution, SEK Return on equity per 78 95 75 78 92 57 share, SEK Operating margin, % 6% 1% 3% 2% 27% 33% Return on equity, % -1% 17% -1% -1% 46% 83% Capital adequacy, % 32% 28% n/a 26% 24% n/a * Comparison figures for 1999 are corresponding figures pro forma. CONSOLIDATED INCOME STATEMENT JAN 1, 2002 JAN 1, 2001 (SEKM) MAR 31, 2002 MAR 31, 2001 Income from commissions and fees 80 100 Note 1 Expenses from commissions and -11 -12 fees Net interest income 8 12 Dividends received 1 2 Net result of financial 25 38 transactions Other operating income - 1 Total operating income 103 141 General administrative expenses -86 -128 Depreciation and write-down of -6 -4 tangible and intangible fixed assets Other operating expenses -5 -8 Net credit losses - - Total operating expenses -97 -140 Operating profit 6 1 Tax on profit /loss for the -4 0 period Minority share of period's profit 0 - Profit for the period 2 1 Earnings per share before 0.4 0.2 dilution, SEK Earnings per share after 0.4 0.2 dilution, SEK Average number of shares before 5,175,421 5,056,571 dilution Average number of shares after 5,458,624 5,224,276 dilution Number of shares outstanding 5,175,724 5,180,624 before dilution Number of shares outstanding 5,458,624 5,222,624 after dilution CONSOLIDATED BALANCE SHEET (SEKM) MAR 31, 2002 DEC 31, 2001 Lending to credit institutions 339 1,474 Lending to the public 807 782 Shares and participations 1,995 1,948 Other assets Note 2 602 544 Total assets 3,743 4,748 Deposits and borrowing from the 1,251 1,529 public Other liabilities Note 2 2,089 2,819 Minority share of equity 11 11 Shareholder's equity Note 3 392 389 Total equity, provisions and 3,743 4,748 liabilities CASH FLOW STATEMENT (SEKM) JAN 1, 2002 JAN 1, 2001 MAR 31, 2002 MAR 31, 2001 Cash flow from continuing 6 2 operations Cash flow from operative assets -1,138 818 and liabilities Cash flow from continuing -1,132 820 operations Cash flow from investing -3 -8 activities Cash flow from financing 0 12 activities Cash flow for the period -1,135 824 Liquid funds at beginning of 1,474 -469 period Liquid funds at end of period 339 355 Accounting principles This interim report has been prepared in accordance with the recommendations of the Swedish Financial Accounting Standards Council for interim reports (RR20), and the regulations of the Swedish Financial Supervisory Authority 2001:19. The accounting principles and methods of calculation are unchanged from those used in the annual report for 2001. New recommendations from the Financial Accounting Standards Council have had no effect on the accounts for the first quarter. Definitions Earnings per share after tax Net profit after tax in relation to the average number of shares during the period. Consideration has been taken to buy-back of the company's own shares, 12,500. In the calculation of the average number of shares after dilution, outstanding warrants with exercise prices of SEK 71 and SEK 133 have been included. Shareholders' equity per share Shareholders' equity in relation to the number of shares on the closing day. Consideration has been taken to buy-back of 12,500 of the company's own shares at an average price of SEK 118 and issue payments from warrants with exercise price SEK 71 and SEK 133. Operating margin Operating profit in relation to operating income. Return on equity Profit after tax in relation to average shareholders' equity. In the calculation consideration has been taken to buy-back of the company's own shares, 12,500, and issue payments from warrants with exercise price SEK 71 and SEK 133. Returns are calculated on a moving 12-month basis. Liquid funds Liquid funds include cash and central bank balances, lending to credit institutions and liabilities to credit institutions. Capital adequacy Capital base in relation to risk-weighted amount for market and credit risks. Notes (all amounts in SEKm) Note 1- Income from commissions and fees Income from commissions and fees includes brokerage fees of 67 (90). Note 2 - Other assets/Other liabilities Other assets includes stock-related derivative instruments with positive value in the amount of 265 (actual value). Other liabilities includes stock-related derivative instruments with negative value in the amount of 121 (actual value). Note 3 - Shareholders' equity Shareholders' equity includes preferential share capital in the amount of 57. The number of outstanding preferred shares amounts, after conversion, to 1,418,331. Terms and conditions for this are described in the prospectus to shareholders of Hagströmer & Qviberg AB (publ) as of September 21, 1999. Group Mar 31, 2002 Mar 31, 2001 Balance at beginning of period 389 469 New issue of warrants 0 11 Translation differences etc. 1 1 Profit/loss for the year 2 1 Balance at end of period 392 482 This interim report has not been subject to an auditor's review. 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, New York and Luxembourg. H&Q has around 250 employees. The company is listed on the Stockholm Stock Exchange (HAGQ.ST). ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/04/16/20020416BIT00510/wkr0001.doc http://www.waymaker.net/bitonline/2002/04/16/20020416BIT00510/wkr0002.pdf