Interim report no. 2 for the financial year 2001/2002 referring to the period july 1 - december 31, 2001

INTERIM REPORT NO. 2 FOR THE FINANCIAL YEAR 2001/2002 REFERRING TO THE PERIOD JULY 1 - DECEMBER 31, 2001 * Shareholders' equity as of December 31, 2001 amounted to MSEK 375.3 (593.2) corresponding to SEK 16.0 (25.4) per share. Solidity amounted to 98.3% (91.9). * Cash and cash equivalents amounted to MSEK 113.7 (229.7) corresponding to SEK 4.9 (9.8) per share. * The result was MSEK -69.0 (-70.1) or SEK -3.0 (-3.0) per share. * During the period, B2 Bredband concluded its capitalization of MSEK 2,400. * Novestra has increased its ownership in Strax by 7% to 16.5%. SEK thousands unless otherwise indicated. SIGNIFICANT EVENTS DURING THE PERIOD During the period, B2 Bredband's private placement provided SEK 2.4 billion. The capitalization is expected to finance the company through to positive cash flow. In the beginning of October, the company's holding in Skandia Mäklarna was divested at a profit. During the period, Novestra has made additional investments in existing portfolio companies totalling 37,800 (73,719), including 27,500 in Qbranch and 3,000 in Netsurvey. In the last quarter, Novestra has taken a number of measures with regard to the companies having immediate capital needs, in accordance with Novestra's previous interim report. The costs associated herewith have burdened the result and lies within the frame of the previously communicated exposure to such companies. As has many other IT companies, Iquity Systems has experienced difficulties in carrying through additional raising of capital and, in connection with Target Investment AB's offer on Iquity Systems, Novestra has made substantial write-downs of, in total, MSEK 25.9. In December, Novestra sold its shares in Blokks to Industrifonden, its shares in Multilet to Ericsson and its shares in Evestra to the founders, all at a loss. SIGNIFICANT EVENTS AFTER THE END OF THE PERIOD Novestra has acquired additional shares in Strax after which the average acquisition price of Novestra's holding of 16.5% corresponds to a company value of approx. MUSD 13.6, to be compared with a forecasted turnover in 2002 of MUSD 60. Novestra has options to increase its ownership further in 2002. FUTURE DEVELOPMENT After the measures taken, Novestra's portfolio mainly consists of companies in the post-venture phase with substantial revenues, growth and with limited capital needs. The sales in the unlisted companies are expected to show strong growth and, on average, increase by approx. 80% in 2002 compared with 2001. The number of industrial holdings now amounts to 6 of which particularly Strax, Qbranch, Netsurvey and myPublisher have developed especially well. Among the investment holdings, B2 Bredband and Continuum have all the requirements to yield good returns to their shareholders. myPublisher has developed very well recently and is now on its way towards a commercial break-through in the U.S. where the company's product category has been given much attention in connection with the recent launch of Apple's iPhoto. The company has ensured the capital needed to reach positive cash flow expected by the end of the current year. Several portfolio companies showed positive cash flows and, most of them, are fully financed with current business plans. Facing 2002, Novestra has a solid basis after having sold or written down most of its holdings with immediate capital needs, in accordance with Novestra's previous interim report. However, Novestra will focus on supporting those companies which have the competence and the qualifications to develop its business and to create growth in revenue and result. With the latest write-downs, the part of the book values relating to holdings with capital needs or which have had a negative development in 2001 is limited. Novestra has reduced its relatively low administrative expenses further and they now amount to approx. MSEK 15 annually. In addition, Novestra expects to obtain other revenues which could further lower operating costs. Novestra intends to continue to increase its ownerships in companies that develop well, as was done in Qbranch and Strax. New investments will mainly be evaluated and made through existing companies, however, occasionally, investments in new portfolio companies will be made in the post-venture phase. Novestra is well positioned to take part in a restructuring of the industry during 2002. With its present business focus, Novestra has no further capital needs for the next few years. RESULT AND FINANCIAL POSITION JULY 1 - DECEMBER 31, 2001 The Group Novestra reports a result, according to the equity method, of -69,018 (- 70,055). The result includes gross profit from investment activities amounting to -57,404 (-59,813), of which -19,680 (-3,097) is the result from shares and participations, -25,872 (- 47,841) pertains to write-downs and -11,852 (-8,875) is share of earnings of associated companies. The result also includes gross profit from other operations totalling -5,589 (-1,802). The Group's cash and cash equivalents amounted to 113,663 (229,721). Parent company The net result in the parent company amounted to -55,768 (-52,487). The result includes gross profit from investment activities amounting to - 50,028 (-43,594), administrative expenses -7,591 (-11.354) and net financial items 1,851 (2,461). Total assets as of December 31, 2001 amounted to 415,856 (657,536), of which shareholders' equity was 410,240 (607,373) corresponding to a solidity ratio of 98.6% (92.4). Cash and cash equivalents amounted to 109,614 (222,353). Investments During the period, investments in tangible fixed assets amounted to 61 (734) and investments in financial fixed assets amounted to 64,690 (361,617). ACCOUNTING PRINCIPLES This interim report has been prepared in accordance with Sweden's Annual Accounts Act and the recommendations of the Swedish Financial Accounting Standards Council. There has been no change to the accounting and valuation principles used in the latest annual report. As of July 1, 2001, Novestra applies the new recommendations from the Swedish Financial Accounting Standards Council which came into force January 1, 2001. The new recommendations have not had any impact on the Group or Parent company accounts. This interim report differs from the report for the corresponding period last year in that holdings in associated companies are reported in accordance with the equity method. Consequently, the corresponding figures for last year have been revised. OTHER INFORMATION Financial calendar: Interim report July - MarchApril 23, 2002 Interim report July - June August 20, 2002 The company's financial year will henceforth cover the period from January 1 to December 31 and, therefore, the current financial year will cover the period July 1, 2001 - December 31, 2002 (i.e. 18 months). This report has not been subject to any audit by the company's auditor. Stockholm January 22, 2002. Thomas Åkerman President For further 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 Company information Corporate identity number: 556539-7709 Registered Office: Stockholm, Sweden ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/01/22/20020122BIT00060/bit0001.doc The full report http://www.waymaker.net/bitonline/2002/01/22/20020122BIT00060/bit0001.pdf The full report