Interim report

ADMINISTRATION Since 1976 Kinnevik's shares have generated an average effective yield of 28% per year as a result of rising prices and dividends, including the value of warrant offers and subscription offers. The value of the Group's holding of listed securities amounted to MSEK 19,461 as of June 30, 2000. On August 14, 2000 the value was MSEK 20.396, which means that the premium over the book value of the Group's listed portfolio amounted to MSEK 17.253 on that date. Net turnover for the first half of the year amounted to MSEK 3,336 (3,041). Korsnäs Holding AB's net turnover amounted to MSEK 2,549 (2,459). The net turnover of other subsidiaries amounted to MSEK 793 (599). Operating income after depreciation amounted to MSEK 981 (127). This figure includes income from corporate development and net capital gains of MSEK 750 (4) on sales of securities, most of which is attributable to the sale of the business of TV1000 Sverige AB. The background to the sales of securities is an option programme for senior executives at Modern Times Group MTG AB that was approved at Kinnevik's Annual General Meeting in 1996. The operating result includes the refund of surplus funds of MSEK 57 from the SPP insurance company. Kinnevik's interest in the earnings of affiliated companies amounted to a net loss of MSEK 680 (loss 576). After adjustment for Millicom International Cellular S.A.'s (MIC) final figures for 1999, Kinnevik's interest in MIC's loss amounted to MSEK 110. As the book value of the interest in MIC thereafter amounts to zero, no further losses in the interest in MIC will be stated on Kinnevik's account. Kinnevik's interest in the earnings of Société Européenne de Communication S.A. (SEC) was a loss of MSEK 588. Financial revenue and expense amounted to a net expense of MSEK 209 (expense 72). The higher cost is mainly explained by the re-entry in 1999 of an earlier provision for interest costs. Income after financial revenue and expense amounted to MSEK 92 (loss 521). The net result for the period amounted to MSEK 72 (loss 541). Earnings per share for the period amounted to SEK 1.14 (loss of 8.46). On July 24, 2000 NetCom AB made an offer for all outstanding shares in SEC of one share in NetCom for every 11.5 shares in SEC. Calculated on the closing price the day before the bid was announced, the offer represents a premium of 22.3% over the listed price. Kinnevik's Board supports NetCom's offer. Kinnevik's Extraordinary General Meeting on August 10 resolved in favour of the proposed transaction. On the basis of NetCom's listed price on August 14, 2000 the offer represents a capital gain of approximately MSEK 7.000. The divestment will not give rise to any tax liability for Kinnevik. The comparative figures for the first six months of 1999 are pro forma and relate to the Kinnevik Group and the companies now belonging to the group. ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/08/15/20000815BIT00630/bit0001.doc The full report http://www.bit.se/bitonline/2000/08/15/20000815BIT00630/bit0002.pdf The full report