Interim Report from Turnit AB january - june 2000

Interim Report from TurnIT AB JANUARY - JUNE 2000 Growth and value continue to increase * Sales rose by 28 % to SEK 706.1 (550.7) million 1 * Operating profit (EBITA) increased by 92.7% to SEK 118.3 (61.4) million * Operating margin reached 16.8 (11.1) % * Profit after financial items amounted to SEK 77.6 (43.0) million * Earnings per share after full tax amounted to SEK 4.08 (1.83) 2 * Cash flow per share was SEK 6.01 (3.01) * The subsidiary IAR was floated * Preparations for the floatation of TurnIT Development continue * Operating profit for 2000 will substantially exceed the previous year's figure Growth has been excellent during the period, and TurnIT's operating profit has increased in line with the strategy announced in our previous reports. Through strategic acquisitions of growth companies, TurnIT has built up a balanced group, with seventeen IT companies in five different business areas, as well as a development company. The operation has been refined into clear business areas to create competitive units within the framework of TurnIT's IT partner concept and to establish a stable and sustainable high level of profit. TurnIT has entered a new stage, after the completion of the first expansion phase. Many of the group's subsidiaries can now be given access to external capital through a widening of ownership which will strengthen the company, while TurnIT will benefit from the capital gain. The companies can remain with TurnIT as majority owner - and so participate in the group's IT partner concept - or be sold to enable them to develop in a new environment. The widening of ownership in IAR Systems was successfully completed during the second quarter. The initial offer price was SEK 28 and the final price paid on 23 August 2000 was SEK 63. The issue provided IAR with SEK 120 million (before the deduction of issue costs) in new equity, and the effect on group operating profit was SEK 83.5 million. The widening of ownership in IAR is an example of how future operating profit will be generated partly through realising the increase in value of the companies. TurnIT's unrealised value in IAR is about SEK 1.2 billion, which exceeds the group's entire intellectual capital by several hundred million Swedish Kronor. The new stage which TurnIT entered this year will establish the group's operating profit at a stable level with high growth, and this will provide the opportunity for substantial strategic investments in both new and existing companies. During the past quarter, several substantial investments have been carried out, and these have been charged to the income statement. A new major unit has been established within the business area Supplies, and a very large acquisition has been incorporated within business area Outsourcing to create one of Scandinavia's leading ASP suppliers. In business areas Software and Communication, further development investments have been made, and these have impacted on operating profit. ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/08/24/20000824BIT00880/bit0001.doc The full report http://www.bit.se/bitonline/2000/08/24/20000824BIT00880/bit0002.pdf The full report