Interim Report Jan-Sept

INTERIM REPORT JANUARY - SEPTEMBER 1999 IN SHORT THE WHOLE REPORT AT WWW.RATOS.SE *High level of activity *Dahl acquired and PriFast sold *Capona and Telelogic listed on the stock market *Meto in process of being taken over - possible capital gain SEK 217M *Esselte streamlined and management strengthened *TV8 holding sold *Result before taxes for the first nine months of the year SEK 1,166M (816) *Earning per share SEK 13.85 (9.36) *Net asset value amounted to SEK100 per share on 29 October 1999 HIGH LEVEL OF ACTIVITY In the existing portfolio of Active holdings, Ratos implemented a number of measures during the year in accordance with its new active ownership strategy. Examples of this are the buy-back of Dahl from the stockmarket together with EQT, the sale of PriFast to the real estate company, Balder, and the stockmarket listing of the hotel real estate company, Capona, and the IT company, Telelogic. In addition, the extensive streamlining work continued in Esselte which previously, among other things, resulted in the sale of Nielsen & Bainbridge. Meto has been listed separately and the ongoing restructuring stwork has been accelerated still further. On November 1 the new President of Esselte, Anders Igel, will take up his position. A new President has also been appointed for the wholly-owned airfreight company, ACE, and in August Ratos found a new owner for its former holding in TV8. RESULT SEK 1,166M Ratos´ consolidated result before taxes during the period, January-September, amounted to SEK 1,166M (816). Of the consolidated result, Active holding accounted for SEK 565M, Asset management for SEK 664M and Group overheads for SEK -63M. Of the result of Active holdings, current results account for SEK 81M and exit results for SEK 484M. At the period-end, Ratos´ liquid assets (net) amounted to SEK 173M compared with SEK -811M at the turn of the year. Consolidated cash flow from current operations and investment operations were SEK 1,123M (70). ASSET MANAGEMENT BEATS INDEX The market value of the Asset management holdings was SEK 4,834M at the period-end. Asset management's yield for the period was 25 per cent and for the latest twelve months 47 per cent. The corresponding values for the Findata Yield Index are 21 per cent and 40 per cent, respectively. VALUE-CREATING MEASURES Already in the 1998 Annual Report, Ratos outlined its intention to continue its work with a shareholder-oriented view under the new strategy. The Ratos Board of Directors therefore support an aggressive dividend policy and view positively other value-creating measures such as right to preference for its own shareholders on stockmarket introductions and, when it becomes possible, buy-back of its own shares. Stockholm, 1 November 1999 Arne Karlsson President ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/11/01/19991101BIT00300/bit0001.pdf The full report