Interim Report january-March 2000

Interim Report january-March 2000 Highlights * Net asset value amounted to USD 76.5m (SEK 631m), equivalent to USD 6.51 (SEK 53.72) per share, compared with USD 6.52 (SEK 53.78) per share as at 31 March 1999. * The loss after tax amounted to USD 427,000, (1,777,000). * Strong development by Medicover, revenue continues to grow by more than 50 percent on an annual basis. * Follow-on investments of USD 385,000 in Churchill Media. * Strategic partnership announced with Swedish Ledstiernan AB to develop TIME investments in Poland. In line with our policy, we cover existing investments more extensively in our six and twelve month reports, while in the three and nine month reports we focus on new investments together with any major developments in existing holdings. Due to its relative size in our portfolio, we also cover the performance of Medicover in each quarter. Operating expenses were in line with budget, amounting to USD 682,000. We expensed a further USD 220,000 in the first quarter relating to new healthcare opportunities, specifically emerging e-health opportunities. New Investments During the first quarter of 2000, we made a follow-on investment in Churchill Media of USD 385,000, raising our total investment to USD 1.1m for 29 percent of the company. Medicover Medicover developed well during the quarter. Revenue for the group came in ahead of budget at USD 4,162m (2,666m), an increase of more than 50 percent compared with the previous year. EBITDA was USD 100,000, against a loss of USD 911,000 in 1999, a significant improvement that is higher than forecast and reflects increased capacity utilization and good control of medical costs. Medicover Poland grew its revenue to USD 3,019m (1,980m), with an EBITDA of USD 352,000 (loss of USD 200,000). We are pleased to see that the efforts to improve premium levels and medical cost controls, in combination with increased membership levels in all locations, are starting to have an impact on the bottom-line contribution. A new clinic was opened in Sczeczin during the period. Medicover Romania grew its revenue by more than 100 percent, to USD 866,000 (428,000), and recorded EBITDA of USD 214,000 (loss of 197,000). The strong performance was driven by significantly increased volumes in the laboratory business and a sound increase in the prepaid business. Additional investments are being made to raise capacity in Bucharest to accommodate this strong growth. Medicover Hungary's first quarter revenue stood at USD 199,000 (237,000). The lower-than-expected volume was caused by a shift in focus from the fee-for-service business to developing membership enrollment. EBITDA amounted to USD 6,000 (loss of 134,000), a significant improvement over the previous year. Medicover Estonia increased its revenue to USD 72,000 (21,000). The higher EBITDA loss of USD 121,000 (20,000) reflects an increase in capacity and staffing levels versus 1999. The full-service Medicover center in Tallinn opened in December 1999. We are encouraged by recent developments, including a national occupational health contract with Hansabank covering more than 2,000 employees. Medicover Holdings, which employs Group management, recorded an EBITDA loss in line with budget of USD 350,000 (400,000). The decreased expense compared with the corresponding period of 1999 reflected lower staff numbers at the Group level. Partnership with Ledstiernan AB As announced on 25 April, we have decided to form a jointly owned company with the Swedish investment group Ledstiernan AB to develop investments in the TIME sector in Poland (Technology, Internet, Media & Entertainment). We anticipate very strong growth in this area in Poland over coming years and believe the combination of Ledstiernan's strong track record over the past seven years in the Swedish TIME sector combined with ORESA Ventures' solid position in Poland will give rise to significant investment opportunities. Liquidity At the end of the first quarter, we had available financial resources of USD 6.4m, including committed credit facilities. May 2000 Jonas af Jochnick A copy of the Annual Report for 1999 may be obtained from ORESA Ventures N.V., Building O, Drève Richelle 161, BE-1410 Waterloo, Belgium. Alternative you can request a copy through our web site, www.oresaventures.com. Information Dates * 2 Quarter results 17 August 2000 * 3 Quarter results 16 November 2000 * Preliminary Report 2000 25 February 2001 ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/05/10/20000510BIT00320/bit0001.doc The full report http://www.bit.se/bitonline/2000/05/10/20000510BIT00320/bit0002.pdf The full report