STOCKHOLM, Sweden, April 16, 2002 (PRIMEZONE) -- Investor's net asset value on March 31, 2002 amounted to SEK 118,683 m. (SEK 155 per share), compared with SEK 118,284 m. on December 31, 2001 (SEK 154 per share).
The value of Investor's total assets was SEK 130,400 m. on March 31, 2002, as against SEK 129,366 m. at year-end 2001. Net debt amounted to SEK 11,717 m. on March 31, 2002 (SEK 11,082 m. on December 31, 2001), corresponding to 9 percent of total assets.
The value of Core Holdings changed by SEK -586 m. during the period. AstraZeneca and SEB contributed with appreciation of SEK 3,233 m. and SEK 1,015 m., respectively. Ericsson and ABB accounted for a decrease of SEK -5,154 m. and SEK -1,126 m., respectively.
Investor increased its holdings in WM-data and SEB during the first quarter through the purchase of shares for SEK 308 m. and SEK 26 m., respectively.
The value of New Investments changed by SEK -255 m. in the first quarter. During the period shares were purchased for a total of SEK 833 m. and shares were sold for a total of SEK 532 m.
The total return on Investor shares was 2 percent in the first three months of the year, compared with -11 percent in the corresponding period of 2001.
3/31 2002 12/31 2001 3/31 2001
Assets, SEK bn 130 129 133
Net debt, SEK bn 11 11 7
Net asset value,
SEK bn 119 118 126
Net asset value
per share, SEK 155 154 165
Development during the quarter Jan.--March Jan.--March
2002 2001
Change in net asset value, SEK bn 1 -18
Change in net asset value, percent 0 -13
Income after tax, SEK bn 1 1
Total return, percent 2 -11
Investor's key figures
The interim report can also be accessed on the Internet at www.investorab.com
President's comments:
Unchanged net asset value in a declining market
"The world's stock markets ended last year on an 'uptick' and a mood of cautious optimism was emerging. However, January was dominated by renewed pessimism and the upturn reversed course, resulting in a historically low start for the quarter. Despite a rebound in February, first-quarter returns were negative on most major exchanges. The period was again led by weakness in the information technology and telecom sectors, although there were some encouraging developments in, for example, the engineering sector and among the Asian markets.
The macroeconomic outlook is still characterized by uncertainty about the development of the European and U.S. economies, even if some positive trends can now be seen. The timing of a sustainable recovery, and its strength, remain unclear. There is also political unrest internationally, especially with regard to developments in the Middle East.
The share prices of most Investor core holdings rose during the first quarter of the year. AstraZeneca was among them and the company was a primary reason for Investor's unchanged net asset value, despite a general downturn on the Stockholm Stock Exchange. Investor continues to have a positive view of AstraZeneca's potential and remains committed to working with the company.
Ericsson had a negative impact on Investor's net asset value. The decline is a consequence of the continuing weak development of the telecom market.
In the first quarter, Investor made a follow-on investment in SEB, whose share has also performed positively on the exchange since the beginning of the year. After the investment, Investor now owns more than 20 percent of the voting rights in SEB. Electrolux and Saab shares also developed favorably on the exchange during the first quarter.
In the first quarter Investor also increased its stake in WM-data and is now the company's largest owner. Investor has been an owner of WM-data since the early 1990s. Investor believes that WM-data, as a leading provider of IT consulting services in the Nordic region, has a promising future following the recent period of intensive work to restructure and streamline operations.
ABB has gone through a difficult period characterized by issues concerning asbestos liabilities, its financial position and past pension agreements. It is positive that the company has found a way to deal with its financing situation. An agreement was also reached with the beneficiaries to pay back a portion of their pensions. Investor supports ABB's restructuring and efficiency programs.
The venture capital industry continues its adjustment to a more normal operating environment, at the same time as exit opportunities are rare. All units of the New Investments business closed on new direct investments during the first quarter. It is pleasing to note that Investor Capital Partners - Asia Fund made an interesting investment in China. China's entry into the World Trade Organization should open up many attractive investment opportunities.
Investor's program to adapt its organization, a consequence of changed market conditions, a more focused core holdings portfolio and reduced trading activities, was started at the end of last year. In the first quarter of this year, costs have also been reduced by approximately 20 percent. The earlier announced review of staffing levels will reduce the number of employees by about 40 people. The program mainly concerns Investor's organization in Sweden and will be implemented gradually during the year.
Investor's conviction that industrial experience and committed ownership generates the best long-term return is deeply rooted and is considered crucial for continuing the long-term positive development of Investor's net asset value. The nucleus of Investor's ownership philosophy is to assist in the development of portfolio company strategies, ensure that companies have the right board and management team, and help provide an optimum corporate and capital structure.
Based on a solid platform of experience and knowledge, established over decades of investing and building companies, Investor is well positioned to contribute to long-term value creation in portfolio companies. In conclusion, it is also important to emphasize once again that Investor's model for value creation is based on long-term thinking, as well as constant renewal."
Marcus Wallenberg
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The full text report with all financial tables can be found at the following URLs: www.waymaker.net/bitonline/2002/04/16/20020416BIT00250/wkr0001.doc
www.waymaker.net/bitonline/2002/04/16/20020416BIT00250/wkr0002.pdf