INVIK & CO. AB YEAR-END COMMUNIQUÉ 2000

INVIK & CO. AB YEAR-END COMMUNIQUÉ 2000 Administration The Invik Group consists of the Parent Company, Invik & Co. AB, and a number of operating subsidiaries. The Parent Company is a holding company whose activities include managing a long-term securities portfolio consisting mainly of major investments in a small number of listed companies in which Invik is seeking active participation by way of board representation and other means. The subsidiaries are principally active in Finance and Insurance. In addition there are certain Other Business Activities, primarily a small brewery. On 31 December 2000, the value of the Group's holdings of listed securities was MSEK 8,392. On 20 February 2001, the value was MSEK 9,152, which gives a premium over the book value of the Group's portfolio of MSEK 6,270 on that date. The long-term securities portfolio as at 31 December 2000 consisted of shares in Tele2 AB ("Tele2"), Industriförvaltnings AB Kinnevik ("Kinnevik"), Modern Times Group MTG AB ("MTG"), Metro International S.A. ("Metro"), and Millicom International Cellular S.A. ("MIC"). - Tele2 (formerly NetCom), 9,642,608 Series "A" shares and 3,172,196 Series "B" shares, equivalent to 24.0 % of the votes and 8.9 % of the share capital. - Kinnevik, 6,166,387 Series "A" shares and 2,336,936 Series "B" shares, equivalent to 32.2 % of the votes and 13.5 % of the share capital. - MTG, 6,381,249 Series "A" shares, equivalent to 25.4 % of the votes and 9.6 % of the share capital. - Metro, 7,214,582 Series "A" shares, equivalent to 18.9 % of the votes and 9.5 % of the share capital. - MIC, 940,418 shares and an option on 186,520 shares. The total holding is equivalent to 2.3 % of the votes and share capital. During Invik's fifteen-year history, the appreciation of its net asset value has corresponded to an annual return of 43 %, calculated on the basis of the company's original net asset value of SEK 4 per share in 1985. This may be compared with an annual return on the "Affärsvärlden" composite index of 18 % over the same period. The net asset value, calculated as the market value of listed securities plus the book value of other assets less liabilities, was SEK 1,009 per share as at 31 December 2000. The corresponding value at 20 February 2001 was SEK 1,107. Invik's shares are listed on the OM Stockholm Stock Exchange's "O" list. The share price paid on 31 December 2000 was SEK 770. Calculated from the first day of trading, 1 July 1987, the share price has increased by some 3,400 %, corresponding to an annual average appreciation of 30 %. The share price paid on 20 February 2001 was SEK 745. Consolidated earnings Income after financial items, in accordance with the acquisition method, was MSEK 113.2, which may be compared with MSEK 15.2 for the corresponding period in the previous year. Income after tax amounted to MSEK 88.0 (33.1). The consolidated income above does not include the Parent Company's interest in the earnings of associate companies. The result according to the equity method is stated in a note. Financial position and investments The Group's liquid assets, excluding funds within the banking and insurance operations, i.e. liquid funds and unutilized credit facilities, amounted to MSEK 407.6 as at 31 December 2000, compared with MSEK 170.0 at the previous year-end. Other than this, assets consist principally of listed securities that are immediately realizable. The Group's long-term holdings of listed securities had a total market value of MSEK 8,392. The Group's net investments in securities during the year amounted to MSEK 512.9. Investments in fixed assets amounted to MSEK 50.6 during the year. The Parent Company's equity ratio was 60 % as at 31 December 2000. If the premium over the book value of the long-term securities portfolio is also included, the equity ratio was 84 %. The corresponding equity ratios for the Group are 29 % and 58 % respectively. Operations and results of subsidiaries and associate companies As one stage in the redirection of its business towards consumers and small businesses, Atlantica has changed its name to Moderna Försäkringar AB, with the name Atlantica being used for pleasure boat insurance and Netviq for internet insurance. The transport and marine insurance business was divested during the first half of the year, and aviation insurance is expected to be divested in the first quarter of 2001. Income after financial net amounted to MSEK 0.4 (loss 32.8). Banque Invik S.A., the Group's wholly owned bank, progressed well during the year, with improved results in all areas of business. The bank was not affected by the prevailing uncertainty on the stock market, mainly owing to the long-term investment policy of its clients. During the year, the bank successfully concluded financing projects for MSEK 900 on behalf of MTG and MUSD 150 for Tele2, and acted as advisor in connection with Tele2's acquisition of SEC. The volume of managed assets and the number of investors Moderna Fonder's three index funds rose dramatically during the year, partly owing to successful participation in the Premium Pension selection process that took place in the autumn. The bank's income after financial net amounted to MSEK 11.6 (8.4). Modern Privat Kapitalförvaltning AB markets sophisticated asset management services based on fundamental analysis and a high level of personal service. The assets under management amounted to MSEK 5,500. Income after financial net amounted to MSEK 19.7 (7.6). Fischer Partners Fondkommission AB, a brokerage in which Invik has a 50 % interest, had a market share of 2,7 % on the OM Stockholm Stock Exchange. The company is at present a market maker for 19 companies on the SBI list. Income after financial net amounted to MSEK 65.5 (29.3). Gamla Stans Bryggeri AB, the Group's brewery, incurred a further operating loss. The business was restructured during the year, primarily involving the closure of the brewery in Gävle. The associate companies Tele2, Kinnevik, MTG, Metro and MIC are listed on the stock market and publish their own year-end reports. Personnel The average number of employees in the Group during the year was 203. At the close of the year the number of employees was 193, of whom 170 were in Sweden. Earnings per share Earnings per share amounted to SEK 11.3 (4.4). The total number of shares in issue as at 31 December 2000 was 7,760,000, of which 3,753,333 were Series "A" shares and 4,006,667 Series "B" shares. Parent Company Income after financial net amounted to MSEK 97.7 (82.3). Liquid assets as at 31 December 2000 amounted to MSEK 407.6, which may be compared with MSEK 167.0 at the previous year-end. The Parent Company's net investments in shares during the year amounted to MSEK 512.9 and in fixed assets to MSEK 1.0. The average rate of interest paid on the Parent Company's borrowing during the year was 4.7 % (3.9 %). Dividend The Board proposes that a dividend of SEK 6 (3) per share be paid. Annual General Meeting The Annual General Meeting will be held at 4.00 p.m. on Thursday, 17 May, 2001 at Gamla Stans Bryggeri, Tullhus 2, Skeppsbron, Stockholm. Annual Report The Annual Report is expected to be published at the beginning of April 2001 and will be available to the public at the company's offices. Stockholm, 21 February 2001 The Board The preliminary publication dates for the interim reports for 2001 are: - Q1 three-month report, 27 April - Q2 half-year report, 8 August - Q3 nine-month report, 26 October ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/02/21/20040804BIT20100/wkr0001.pdf The full report