Interim report no. 1 for the financial year 2001/2002

INTERIM REPORT NO. 1 FOR THE FINANCIAL YEAR 2001/2002 REFERRING TO THE PERIOD JULY 1 - SEPTEMBER 30, 2001 * Shareholders' equity as of September 30, 2001 amounted to MSEK 426.5 (643.5) corresponding to SEK 18.2 (27.5) per share. Solidity amounted to 95.3% (91.4). * Cash amounted to MSEK 130.7 (66.4) corresponding to SEK 5.6 (2.8) per share. * The result was MSEK -17.4 (-19.8) or SEK -0.7 (-0.8) per share. * During the period, B2 Bredband concluded its capitalization of MSEK 2,400. * Companies with a further need for financing in the near-term may face difficulties. SEK thousands unless otherwise indicated. SIGNIFICANT EVENTS DURING THE PERIOD JULY 1 - SEPTEMBER 30, 2001 During the period, B2 Bredband's private placement provided SEK 2.4 billion. The capitalization, which was made at a slightly higher valuation than Novestra's book value, is expected to finance the company through to positive cash flow. Novestra's ownership, when the transaction is completed, will be approx. 1.5%. Novestra's portfolio company Continuum took part in B2 Bredband's capitalization. Continuum's ownership in B2 Bredband amounts to approx. 9.0%. During the period, Novestra has made additional investments in existing portfolio companies totalling 30,500 (50,642) of which 27,500 in Qbranch and 3,000 in Netsurvey. Novestra has also been granted an option to acquire a further 600,000 shares in Strax corresponding to an ownership of 6.6%. SIGNIFICANT EVENTS AFTER THE END OF THE PERIOD At Novestra's Annual General Meeting, held on October 4, 2001, it was decided, in accordance with the board's proposal, to change the company's financial year to cover the period from January 1 to December 31. Consequently, the current financial year will cover the period July 1, 2001 - December 31, 2002 (i.e. 18 months). The Annual General Meeting also decided that no dividend be declared for the financial year 2000/2001 and, again, to authorize the Board of Directors to decide on an issue of a maximum of 6,000,000 new shares. In the beginning of October, Novestra's holding in Skandia Mäklarna was divested at a profit. FUTURE DEVELOPMENT The events of September 11 leads to that the already weakened economy is joined by even greater uncertainty about when the business cycle and the capital market for businesses within the technological sector will improve. Novestra has several portfolio companies that, despite the severe market conditions, have continued to shown very positive development during the last quarter. Netsurvey, Qbranch and Strax have all shown strong development in turnover and result. Included among the companies that are approaching, however not yet achieved, a commercial break-through are Recollections and Comintell. Only four of Novestra's portfolio companies require immediate additional financing. The present situation in the financial markets makes it uncertain if and when, and at what valuations, these companies can achieve financing. Novestra's total exposure towards these companies amounts to approx. MSEK 55. Novestra has relatively low administrative costs and the management estimates that these can be lowered further during the present financial year (to approx. MSEK15 per calendar year). Novestra intends to increase its ownership in companies that develop well, as was done in Qbranch during the summer. New investments will mainly be made through existing companies and within the framework of industrial partnerships. With its present business focus, Novestra has no further capital requirements for the next few years. RESULT AND FINANCIAL POSITION JULY 1 - SEPTEMBER 30, 2001 The Group Novestra reports a result according to the equity method of -17,363 (- 19,762). The result includes gross profit from investment activities amounting to -9,946 (-17,899), of which --2,261 (13,894) is the result from shares and participations, 0 (-28,509) pertains to write-downs and -7,685 (-2,584) is share of earnings of associated companies. The result also includes gross profit from other operations totalling -4,865 (1,953). The Group's cash amounted to 130,726 (66,402). Solidity was 95,3% (91.4). OTHER INFORMATION Financial calendar: Interim report July - December January 22, 2002 Interim report July - MarchApril 23, 2002 This report has not been subject to any audit by the company's auditor. Stockholm October 23, 2001. Thomas Åkerman President For additional information please contact: Thomas Åkerman Phone: +46 8 545 017 50 (President) Cecilia Janson Phone: +46 8 545 017 50 (Information Manager) The company's address: AB Novestra Norrlandsgatan 16 SE-111 43 STOCKHOLM Sweden E-mail: info@novestra.com Web site: www.novestra.com THIS INTERIM REPORT HAS BEEN PREPARED IN SWEDISH AND TRANSLATED INTO ENGLISH. IN THE EVENT OF ANY DISCREPANCIES BETWEEN THE SWEDISH AND THE TRANSLATION, THE FORMER SHALL HAVE PRECEDENCE. NOVESTRA'S HOLDINGS AS OF SEPTEMBER 30, 2001, MSEK Novestra has divided its holdings into two categories: industrial and investment holdings. Industrial holdings consist of companies in which Novestra is actively involved, such as board representation and active participation in the company's operations and where Novestra's holding is typically larger ( 20 to 40 percent). Investment holdings are holdings in companies in which Novestra does not actively participate in the company's operations. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/10/23/20011023BIT00200/bit0002.doc The full report http://www.waymaker.net/bitonline/2001/10/23/20011023BIT00200/bit0002.pdf The full report