Financial statement 1 january - 31 december 2000

NeoNet AB (publ) FINANCIAL STATEMENT 1 JANUARY - 31 DECEMBER 2000 · Revenues rose by 86% to SEK 160.8 (86.4) m. · Earnings before depreciation and net financial items increased by 68% to SEK 39.7 (23.6) m. · Earnings before tax were up 27%, from SEK 12.5 m to 15.9 m. · Earnings per share also rose, by 24% to SEK 0.31 (0.25). · In the fourth quarter, the share of revenues from automatic order routing was 61%, and 50% for the full year and 31% in the previous year. · NeoNet linked up to the Frankfurt Stock Exchange (Deutsche Börse, Xetra) for electronic direct trading in March. · NeoNet secured membership of the London Stock Exchange in late November; direct electronic access was introduced in January 2001. · An application for membership of Euronext Paris was submitted in November, and approved in January 2001. · Investments were SEK 32.6 (28.2) m in the period. · Coincident with the corporation's IPO on OM Stockholm Exchange's O- list on 20 October, a new issue was effected with settlement on 19 October. This issue raised SEK 139.6 m after deductions for issue expenses. Additionally, in September and December, NeoNet received a SEK 24.6 m injection to shareholders' equity through new subscription in a warrant program created earlier in the year. · The Board intends to propose to the Annual General Meeting that no dividends be paid. THE GROUP Operations Using a proprietary electronic trading platform, NeoNet has secured a position as a major provider of automatic order routing and execution services for equity transactions for institutional investors and broker- dealers. At present, NeoNet offers direct electronic trading on OM Stockholm Exchange, plus the London, Helsinki, Copenhagen and Frankfurt Stock Exchanges. NeoNet also offers manual trading on these exchanges, and on the Oslo Stock Exchange. NeoNet has clients in ten European countries and in the US. NeoNet secured membership of the London Stock Exchange in November, when traditional trading began on a small scale. Automatic order routing, through a link-up to the London Stock Exchange's trading system SETS, began in January 2001. Accordingly, the aggregate market capitalization available to NeoNet clients has increased from some 25% to over 50% of total European stock market capitalization. 1) NeoNet's application for membership of the Paris Stock Exchange (Euronext Paris) was granted in January 2001. The Paris, Amsterdam and Brussels Exchanges merged into Euronext in September 2000; NeoNet also plans to extend its offering to encompass these two latter markets during the third quarter of 2001. At the end of the year, the group had an employee headcount of 62 (39). Revenue and Earnings Consolidated commission income increased year-on-year to SEK 160.8 m from 86.4 m, an 86% increase. The primary explanation is existing customers increasing their trading through NeoNet. NeoNet's daily trading volumes averaged SEK 1,412 (866) m for the year, up 63%. Moreover, an enhanced market and product mix implied that average commission income in relation to routed order values increased by some 14% during the year. In the fourth quarter, the share of revenues from direct order routing was 61%; the full-year figure was 50%, against 31% in the previous year. Average daily fourth-quarter trading volumes were SEK 1,587, a 52% rise compared to 1,041 m for the same period last year. During the year, volumes varied significantly as a consequence of fluctuating activity and share prices on those exchanges were NeoNet pursues trading. During the fourth quarter, NeoNet's average daily trading volumes were divided between exchanges as follows: Stockholm 60%; Helsinki 30%; Frankfurt 7%; Copenhagen 2% and Oslo 1%. Average rolling 12-month volumes increased continuously through the year. pictureId65536pictureActive0fillColor0fFilled0fNoFillHitTest0lineColor16 777215lineWidth1fLine0fShadow0fIsButton0 ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/01/31/20010131BIT00410/bit0001.doc The full report http://www.bit.se/bitonline/2001/01/31/20010131BIT00410/bit0002.pdf The full report