Year-End Report 2000

YEAR-END REPORT 2000 · ENFORCED POSITION AS FINANCIER AND ADVISOR WITHIN IT/TELECOM AND AS ADVISOR TO ENTREPRENEURS · PRE-TAX PROFIT SEK 250 MILLION, CORRESPONDING TO SEK 35 PER SHARE · DIVIDEND PROPOSED AT SEK 17 PER SHARE Performance and Financial Position Group Hagströmer & Qviberg (H&Q) reports for the period January 1 to December 31, 2000 a pre-tax profit of SEK 250 million (1999 pro forma SEK 353 million). Earnings per share after tax were SEK 35 (47). Operations were strong during the first quarter of the year, but then slowed as a result of lower market activity and worsened market conditions. The decrease in the pre-tax profit compared to last year is primarily due to the positive effects of Corporate Finance-related holdings during the fourth quarter of 1999. Operating revenues were SEK 935 (1,065) million. H&Q Technology contributed with 50 percent of the operating revenues and H&Q Private Banking contributed with 46 percent. Income from commissions and fees during the period increased by 27 percent to SEK 651 (514) million. Of the income from commissions and fees, revenues from Corporate Finance contributed with 25 percent. Net income from financial transactions including dividends decreased by 52 percent to SEK 268 (553) million, of which 2 (64) percent was income from Corporate Finance-related holdings. Operating expenses were SEK 685 (712) million, a decrease of 4 percent. Of the operating expenses, 72 percent was attributable to personnel costs and 28 percent to other costs. Allocations for bonuses were 51 percent of the personnel costs. Shareholders' equity as of December 31, 2000 was SEK 469 (281) million, which corresponds to SEK 92 (57) per share. Return on equity was 46 percent. The group's net borrowing amounted to SEK 469 million. There were 344 (277) employees in the group as of December 31, 2000. Parent company The parent company is reporting a net turnover of SEK 0 million and a pre- tax profit of SEK -4 million for the period January 1 to December 31, 2000. H&Q Technology Revenues and profit for H&Q Technology developed well compared to last year for the comparable units. This was the result of several capital- raising and advisory assignments during the first half of the year and the favourable conditions for Trading. During the year H&Q Technology has extended its position as financial advisor within IT/Telecom to institutions and companies. This has been possible due to the efforts made earlier, which have continued strongly during the year. During the second half of the year revenue and earnings decreased compared to the first half-year due to a weak market. This contributed to several capital-raising assignments being postponed. The conditions for H&Q Tech Market and Corporate Finance-related holdings were also negatively affected by the poorer market situation. The continuous arbitrage and market maker activities within Trading, however, developed well. During the fourth quarter a representation office for Research was established in San Francisco. In 2001 offices connected to Research and Corporate Finance are to be established in Helsinki and Munich. As of December 31, 2000 there were 83 (56) employees within H&Q Technology. H&Q Private Banking H&Q Private Banking has shown good trends during the year resulting from a strong service offering, a strong inflow of new clients and account volumes, as well as high market activity, primarily at the beginning of the year. The slower market climate during the second half-year, however, despite the good inflow of new clients and account volumes, had a negative impact on the profit and the total account value. Total capital in client accounts as of December 31, 2000 was SEK 24 billion (SEK 24 billion, excluding J.S. Gadd & Cie S.A.). During the period H&Q Private Banking has strengthened its position in the market for asset management and advice to entrepreneurs, companies, institutions, and organisations. The main force behind this has been the efforts taken with regard to Financial Planning, which greatly increased the inflow of new clients and client account volumes. The concept and service offering with regard to Financial Planning will be continually developed via a strengthened organisation and geographical coverage, as well as increased partner co-operation. As of December 31, 2000 there were 159 (127) employees within H&Q Private Banking. Miscellaneous During the period the parent company, H&Q Holding AB, changed name to Hagströmer & Qviberg AB. As of July 3, 2000 the H&Q share has been listed on the Stockholm Stock Exchange O-list. The listing of H&Q's debentures on the Stockholm Stock Exchange SOX-list occurred in September. During the first half-year, 10 percent of an incubation company, Starthouse AB, was acquired. In December the subsidiary J.S. Gadd & Cie S.A. Geneva, with fellow subsidiary, operative within asset management, were divested. In the last few years H&Q has established a strong position as financier and advisor to companies within IT/Telecom, and as advisor to entrepreneurs. Growth has mainly occurred with good profitability. During the second half-year of 2000 the weak market trends contributed to a generally lower profit level. In view of this, the profit was specifically affected negatively by write-downs related to H&Q Tech Market and Corporate Finance-related holdings. Profit for the group has also been burdened by costs for developing infrastructure and continued expansion of the organisation within all areas. The outlook for 2001 is largely tied to the general market performance. Dividend The Board of Directors and the Chief Executive Officer propose that the dividend to shareholders shall be SEK 17.00 per share. Stockholm, February 12, 2001 Anders Böös, CEO, Telephone +46 8-696 17 00 Annual General Meeting The Annual General Meeting will be held on April 4, 2001 at 15.00 CET in the "Winter Garden" of the Grand Hotel in Stockholm. Upcoming report dates, 2001 Annual Report 2000 March 2001 Interim Report, Jan.- April Mar. 2001 23, 2001 ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/02/13/20010213BIT00260/bit0001.doc The full Year-End Report http://www.bit.se/bitonline/2001/02/13/20010213BIT00260/bit0001.pdf The full Year-End Report