STOCKHOLM, Sweden, Feb. 19, 2002 (PRIMEZONE) - Kinnevik (Nasdaq:KVIKA) (Nasdaq:KVIKB):
-- Net turnover amounted to MSEK 6,120 (5,521) excluding Transcom
WorldWide S.A. Operating income amounted to MSEK 345 (8,571).
This figure includes income from corporate development and income
from sales of securities amounting to MSEK 23 (8,390). Excluding
these items, operating income increased by 78% to MSEK 322 (181).
-- The extensive restructuring programme at Korsnas has continued.
Costs of MSEK 315 (383) for severance pay and restructuring have
Been taken against income, of which Korsnas AB accounted for MSEK
212 and Korsnas Packaging's foreign subsidiaries accounted for
MSEK 103.
-- The result for the year was a loss of MSEK 570 (income of
8,777). Kinnevik's interest in the earnings of affiliated
companies amounted to a loss of MSEK 487 (income of 534).
-- The loss per share amounted to SEK 9.06 (income of 139.45).
-- The value of the Group's holdings of listed securities amounted
to MSEK 12,727 at December 31, 2001, which means that book value
exceeds market value of the Group's portfolio of listed shares
with MSEK 385 on that date.
-- The Board proposes that shareholders be paid a cash dividend of
SEK 2 per share.
Administration
Return and Asset Value
Since 1976 Kinnevik's shares have generated an average effective yield of 24% per year as a result of rising prices and dividends, including the value of warrant offers and subscription offers. During the past five years, Kinnevik's shares have generated an average effective yield of 29% per year. The effective yield in 2001 was 0%. During the year, Kinnevik distributed to shareholders its shares in Transcom, whose listed share price on Stockholmsborsen's "O" list at the time of distribution was SEK 12.50. The closing price of Kinnevik's Series "A" shares was SEK 159 and of its Series "B" shares SEK 166.
Consolidated Result for 2001
Net turnover for 2001 amounted to MSEK 6,120, which may be compared with MSEK 5,521 for the previous year, excluding Transcom WorldWide S.A.
Income from corporate development and income from sales of securities amounted to MSEK 23 (8,390). The comparative figure for 2000 largely relate to the sale of shares in SEC in exchange for new shares in Tele2 (MSEK 7,627) and the sale of the business of TV1000 Sverige AB (MSEK 762).
Operating income amounted to MSEK 345 (8,571). The extensive organisational changes at Korsnas continued in 2001. Costs of MSEK 315 (383) in the form of severance pay and restructuring have been taken against income, of which Korsnas AB accounted for MSEK 212 and Korsnas Packaging's foreign subsidiaries for MSEK 103.
Kinnevik's interest in the earnings of affiliated companies amounted to a loss of MSEK 487 (income of 534), of which MIC accounted for a loss of MSEK 406 (income of 1,044), Metro for a loss of MSEK 54 (0) and SEC 0 (loss of 504).
Financial revenue and expense amounted to a net expense of MSEK 320 (expense 250).
The result after financial net was a loss of MSEK 462 (income of 8,855).
The net loss for the year was SEK 570 (income of 8,777).
Consolidated Result for the Fourth Quarter 2001
Net turnover for the fourth quarter amounted to MSEK 1,452 (1,491). The operating result was a loss of MSEK 402 (income of 7,407). This figure includes a loss of MSEK 123 (income of 7,616) on corporate development and sales of securities. Costs of MSEK 293 in the form of severance pay and restructuring were taken against income in the fourth quarter, of which Korsnas AB accounted for MSEK 212 and Korsnas Packaging's foreign subsidiaries accounted for MSEK 81. In December Kinnevik paid to Societe Europeenne de Communication S.A. and Great Universal Inc for its acquisition of their 49.9% of the shares in Transcom. The purchase price was based on Transcom's share price during its first 60 days of trading and amounted to MSEK 319.
Results by Division
Mellersta Sveriges Lantbruks AB
A very warm and dry early summer and summer was detrimental to the crops, and this resulted in a small and too early harvest. However, it transpired that this year an early harvest was not a particularly serious drawback since the harvest could be completed before the heavy autumn rains started. Overall, the harvest was of the highest quality, which was by no means usual this year.
Net turnover for the Swedish business amounted to MSEK 12 (14) and the operating income was MSEK 4 (8).
Poland also had a dry summer and a wet autumn. The harvest did not quite meet expectations, although most of the crops were harvested before the saturated fields could cause a problem.
Milk production went as planned. In total 2.6 million litres of milk have been produced since the farms were taken over in June.
Net turnover of the affiliated company, Rolnyvik, amounted to MSEK 27 and the company broke even at operating level.
Korsnas Holding AB
Korsnas Holding AB is the parent company of Korsnas AB, which, together with its subsidiaries, makes up the Korsnas Group. The first three quarters of 2001 were a period of healthy demand for Korsnas Industrial's products and favourable prices, supported by the weakness of the krona in relation to other key currencies. During the fourth quarter, the economy weakened, with slacker demand that caused prices to come under greater pressure.
Market conditions for Korsnas Packaging, which produces bags and paper sacks, deteriorated during the year with a distinct weakening in demand during the fourth quarter, particularly in Germany, Scandinavia and Great Britain.
Further restructuring involved the closure of the unit on the Canary Islands in December, and a decision was also taken to close the factory in Croatia at the beginning of 2002. The sales volumes from these factories will be transferred to other production units in the Group. After further efficiency improvements in Germany, Finland and Yugoslavia, the total number of employees was reduced by 20% in 2001.
The Korsnas Group's net turnover in 2001 amounted to MSEK 5,842 (5,209) and its net income amounted to MSEK 389 (241). Costs of MSEK 315 (383) for the current extensive restructuring programme at Korsnas have been taken against income, of which Korsnas AB accounted for MSEK 212 and Korsnas Packaging's foreign subsidiaries for MSEK 103.
Worldwide Loyalty B.V.
The business of Worldwide Loyalty B.V. is to provide loyalty programmes and targeted marketing activities for its customers through the "Collect" bonus club.
The business is conducted mainly in Sweden and Denmark, as well as in Norway through the affiliated company Trumf Holding AS.
Collect in Scandinavia has some 2,410,000 members, of whom some 850,000 are in Sweden, some 60,000 in Denmark and some 1,500,000 in Norway. In 2001 the Swedish members' turnover increased by 350% in relation to 2000.
Net turnover in 2001 amounted to MSEK 31 (85). The decline in turnover is due to a reduction in the number of countries being canvassed on the Continent. The operating loss for the year was MSEK 12 (loss of 7).
This information was brought to you by Waymaker http://www.waymaker.net
The following files are available for download:
www.waymaker.net/bitonline/2002/02/19/20020219BIT01340/bit0001.DOC The full year-end report www.waymaker.net/bitonline/2002/02/19/20020219BIT01340/bit0001.pdf The full year-end report