Year-end report January-December 2019

Total return on the Bure share was 97.9 per cent

January – December 2019

  • Net asset value was SEK 196.6 per share compared to SEK 137.1 at the beginning of the year, which corresponds to an increase of 43.5 per cent.
  • Bure’s net asset value was SEK 13,563M compared to SEK 9,454M at the beginning of the year.
  • Total return on the Bure share was 97.9 per cent compared to the SIX Return Index that increased 35.0 per cent.
  • Consolidated profit after tax amounted to SEK 4,229M (1,821). Earnings per share amounted to SEK 61.3 (26.3).

Fourth quarter 2019

  • Net asset value per share was SEK 196.6 compared to SEK 159.2 at the start of the quarter, which corresponds to an increase of 23.5 per cent.
  • Bure divested shares in Mercuri to the company’s management team at book value which corresponds to reported net asset value. Mercuri also acquired ProSales, a leading Swedish research and consultancy firm specialising in B2B sales training. In conjunction with this transaction, the ProSales management team acquired new-issue shares in Mercuri. Bure’s holding in Mercuri amounted to 90.4 per cent following these transactions.
  • Bure Growth acquired additional shares in ScandiNova Systems for SEK 10M increasing its holding to 27.8 per cent.

Subsequent events

  • Net asset value amounted to SEK 187.5 per share on 19 February 2020 which corresponds to a decrease of 4.7 per cent since the beginning of the year.
  • The Board of Directors proposes that the Annual General Meeting approve an ordinary dividend of SEK 2.00 per share (2.00) and an extra dividend of SEK 0.50 per share (0.00).

Comments from the CEO

2019 was another successful year for Bure. Net asset value per share increased 43.5 per cent to end the year at around SEK 13.5 billion. Despite economic uncertainty, the majority of our portfolio companies achieved sales growth and improvements in profitability. Bure’s two largest holdings, Mycronic and Vitrolife, accounted for the two single largest increases in net asset value in 2019, which is fantastic. The unlisted segment of the portfolio also contributed to net asset value growth during the year. Our holding in cyber security company Yubico was Bure’s third largest holding at the end of the year following a revaluation under IFRS 9.

The year included several changes to the portfolio. Firstly, Cavotec and Ovzon conducted rights issues in which Bure increased its holding. During the first quarter, we also launched a new focus on active asset management under the new-old name Atle. Today, Atle is part-owner of a number of successful asset management funds and was, for example, involved in the launch of the year’s perhaps most high-profile fund, TIN Fonder. In the beginning of March, a modest amount of our holding in Mycronic and Vitrolife was divested. This was done to create financial scope for new investments. During the second quarter, we invested in two exciting growth companies. Bure was a so-called anchor investor for the stock market listing of Mentice and acquired a large minority holding in Scandinova.

Similar to the previous year, 2019 ended in dramatic fashion. But in contrast to the steep falls we experienced in 2018, the stock market jumped a record 10 per cent in the fourth quarter of 2019. Bure’s share price increased 47.2 per cent in the last quarter alone, which resulted in a total return for the year of 97.9 per cent. Naturally, this is extremely reassuring, and taken together with growth in net asset value, I believe this reinforces our conviction that a long-term approach, presence in and commitment to the portfolio companies ensures that Bure is a good owner.

Bure Equity AB (publ)

Year-end report January-december 2018

Correction in press release: In this press release, reference to legislation has been corrected.

January – December 2018

  • Net asset value amounted to SEK 137.1 per share compared to SEK 111.7 at year-end 2017, which corresponds to an increase of 22.7 per cent. Net asset value per share including dividends paid of SEK 2.0 per share increased 24.5 per cent in 2018.
  • Bure’s net asset value was SEK 9,454M compared to SEK 7,743M at the start of the year.
  • Total return on the Bure share was 12.7 per cent. The SIX Return Index fell 4.4 per cent in 2018.
  • Consolidated profit after tax was SEK 1,821M (834). Earnings per share amounted to SEK 26.3 (12.0).

Fourth quarter 2018

  • Net asset value per share was SEK 137.1 compared to SEK 125.2 the start of the quarter, which corresponds to an increase of 9.5 per cent.

Subsequent events

  • Net asset value amounted to SEK 156.4 per share on 21 February 2019, which corresponds to an increase of 14.1 per cent since the beginning of the year.
  • Cavotec conducted a rights issue valued at SEK 204M in January 2019. Bure subscribed for SEK 76M of shares. Bure’s shareholding in Cavotec amounted to 27.1 per cent following the rights issue.
  • Ovzon carried out a rights issue valued at SEK 748M in January 2019. Bure subscribed for SEK 113M of shares. Bure’s shareholding amounted to 14.3 per cent following the rights issue.
  • Bure divested 2 million shares in Mycronic for SEK 262M for an exit gain of SEK 237M i February 2019. Bure’s shareholding amounted to 27.9 per cent following the transaction.
     

Comments from the CEO

In 2018, Bure’s net asset value climbed to SEK 9,454M, which is equivalent to an increase of 24.5 per cent or SEK 1,850M including dividends paid. Bure has thus increased net asset value for seven consecutive years!

The majority of portfolio companies contributed positively to the increase in Bure’s net asset value. Listed portfolio companies accounted for the lion’s share of the improvement with an increase of SEK 1,662M. The strong trend for listed companies was a reward for their successes during the year with many of the companies reporting record results. Sales as well as profit growth in Mycronic, Vitrolife, Medcap and Xvivo was extremely impressive. During the year, the unlisted companies also contributed with SEK 353M. This was primarily due to the revaluation of the value of Yubico in accordance with IFRS 9.

Ovzon joined our portfolio of companies during the year. Having followed the company for a number of years, Bure was a so-called anchor investor when the company listed in May. The company, whose business idea is to provide mobile broadband via satellite, is poised for an exciting future. The company’s ambition is to launch its own geo-positioned satellite in 2021, and thereby further develop its unique communication services. The year also saw additional investments made in, notably, Cavotec, Yubico and Bure Financial Services.

Intensifying concern over global economic conditions made for a dramatic conclusion to the year. The financial markets fell sharply in general, and Nasdaq Stockholm lost more than 18 per cent from its peaks in the fourth quarter. One year ago, I wrote here that we found ourselves in the latter stages of the economic cycle. In the event, however, 2018 turned out to be a strong year for the majority of the portfolio companies. Uncertainty surrounding future economic conditions persists, but for the time being there are few signs of deteriorating market conditions among the portfolio companies. I therefore look ahead with continued cautiousness tempered, however, with increased readiness.
 

Bure Equity AB (publ)
 

For more information contact:

Henrik Blomquist, CEO
Tel. +46 (0)8-614 00 20
 

This information is information that Bure Equity AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 8:30 SET on 22 February 2019.

Interim report January-December 2017

Interim report January–December 2017

  • Net asset value per share at 31 December 2017 was SEK 111.69, compared to SEK 101.74 at year-end 2016, an increase of 9.8 per cent. Net asset value per share including add-back of the dividend of SEK 2.00 per share increased by 11.7 percent during 2017.
  • Bure’s net asset value increased to SEK 7,743M compared to SEK 7,054M at year-end 2016.
  • Total return on the Bure share decreased 3.3 per cent, while the SIX Return Index increased 9.5 per cent in the same period.
  • Earnings after tax amounted to SEK 834M (1,173). Earnings per share amounted to SEK 12.03 (16.92).

Subsequent events

  • Net asset value per share at 21 February 2018 amounted to SEK 119.34, representing an increase of 6.8 per cent since the beginning of the year.

Comments from the CEO

Bure increased net asset value by 9.6 per cent in 2017, and we entered 2018 as a stronger company. During the year, several portfolio companies improved their results and Bure’s financial position was strengthened. Bure’s two largest portfolio companies continued to impress in 2017. Mycronic’s turnover increased to SEK 3 billion, with profits of SEK 848 million. Growth in Vitrolife continued, amounting to 22 per cent for the year. Sales exceeded SEK 1 billion for the first time, and the company has now reported increasing turnover for 60 consecutive quarters. Fantastic!

In addition to increasing our holding in Cavotec, we invested in the security company Yubico. The company develops solutions for simple and secure access to computers and Internet services. Internet security is set to become an increasingly business-critical issue as digitalisation continues. In June, we divested our holding in Catella: an excellent transaction that resulted in an annual return of 52 per cent.

Looking forward to 2018, I see a pronounced polarisation. Optimists, who are buoyed by the positive trend in global economic activity, and those who are worried about high prices of shares and debt instruments. Recovery from the 2008-2009 crisis is now in its tenth year. There is therefore perhaps little doubt that we now find ourselves in the latter phase of the economic cycle. The likelihood of a rapid slowdown in demand is however hard to justify, so I continue to be positive about market conditions for our portfolio companies. At the same time, you need to be careful with the stock market. Strong profits can defend relatively high valuation multiples, but it is hard to see a continuation in the trend in valuation multiples experienced in recent years. The key thing for 2018 will therefore be to attempt to identify investment opportunities that correspond with this relatively complicated backdrop of expectations.

Bure Equity AB (publ)

For more information contact:

Henrik Blomquist, CEO
Tel. +46 (0)8-614 00 20

 
The information contained herein is subject to the disclosure requirements of Bure Equity AB (publ) under the Swedish Securities Market Act. The information was publicly communicated on 22 February 2018, 8:30 a.m. CET.

Year-end report 2015

Full year January – December 2015

  • Net asset value per share at year-end 2015 was SEK 87.40, compared to SEK 46.09 at the end of the previous year, which represents an increase of 89.6 per cent.
  • Bure’s net asset value was SEK 6,060M (3,291) at the end of the year.
  • Total return on the Bure share was 95.4 per cent, compared to the SIX Return Index which rose by 10.4 per cent.
  • Consolidated profit after tax was SEK 2,940M (961). Earnings per share amounted to SEK 41.98 (12.83).

Fourth quarter 2015

  • Net asset value per share was SEK 87.40, compared to SEK 60.21 at the beginning of the quarter, which represents an increase of 45.2 per cent.
  • Total return on the Bure share was 57.3 per cent, compared to the SIX Return Index which rose by 6.3 per cent in the quarter.
  • Bure sold 7,800,000 shares in Mycronic for SEK 499M, which resulted in an exit gain of SEK 394M.

Subsequent events

  • Net asset value per share was SEK 83.18 at 22 February 2016, which represents a decrease of 4.8 per cent since year-end 2015.
  • The Board of Directors proposes that the Annual General Meeting approve an ordinary dividend of SEK 1.00 per share (1.00) and an extraordinary dividend of SEK 1.00 per share.

With a total return of 95 per cent, 2015 was the best year in the Bure’s history! Our two largest holdings, Mycronic and Vitrolife, together grew by more than SEK 2.5 billion in value during 2015. I see this value appreciation as a result of the fantastic work  that has lifted the companies to a new and higher level. With sales growth of 23 and 41 per cent and increased earnings growth of 95 and 67 per cent, respectively, both companies are deserving of these valuation increases.

Another bright spot in 2015 was the upturn for our subsidiary Mercuri International. After a few turbulent years of management changes and restructurings, it delivered a profit of SEK 28M in 2015. Mercuri’s new CEO since 18 months, has very impressively created profitability and is now continuing efforts to improve the company’s processes and thereby drive growth.

As part of a general market consolidation, our Finnish sector colleague Scanfil acquired PartnerTech last summer wereby Bure received SEK 289M. Furthermore, in the autumn we reduced our holding in Mycronic by approx. SEK 500M – the main buyers were two Swedish institutions. In the past year we made divestments for a total of around SEK 800M.

The small cap rally, which I wrote about in the Q3 report, accelerated in the last quarter of 2015. A slight correction has taken place at the beginning of 2016 but I think it is difficult to motivate this valuation gap between small and large caps. The market unrest we have seen in early 2016 has unavoidably impacted several of our listed companies and Bure’s net asset value per share has fallen by 4.8 per cent since the start of the year. But paradoxically, I view this market turmoil with certain optimism. Given Bure’s situation-based investment strategy, we will see several interesting investment opportunities in a more volatile market climate. Through the past year’s divestments of PartnerTech and in Mycronic, we have built a strong financial position and today have close to SEK 1 billion available for new investments.

Henrik Blomquist
CEO

For additional information contact
Henrik Blomquist, CEO +46 (0)8 614 00 20
Max Jonson, CFO +46 (0)8 614 00 20

The information in this interim report is subject to the disclosure requirements of Bure Equity AB under the Swedish Securities Market Act and/or
the Swedish Financial Instruments Trading Act. This information was publicly communicated on 23 February 2016, 08:30 a.m. CEST.

Year-end report 2014

Full year January – December 2014

  • Net asset value per share was SEK 46.09 at year-end, compared with SEK 33.47 at the previous year’s end.
  • The net asset value per share, adjusted for dividends of SEK 1.00 per share, increased by 40.7 per cent during the year.
  • Bure’s net asset value was SEK 3,291M (2,545) at year-end.
  • The Six Return Index rose by 15.8 per cent.
  • Total return on the Bure share amounted to 43.0 per cent (21.0).
  • The Parent Company’s profit after income taxes amounted to SEK 953.1M (503.5). Earnings per share amounted to SEK 12.72 (6.40).

Fourth quarter 2014

  • The net asset value per share increased by 13.1 per cent during the quarter.
  • The Six Return Index rose by 6.1 per cent.
  • Bure completed the acquisition of 20.1 per cent of Fondbolaget Fondita Ab in Finland.
  • Bure Financial Services was established as the holding company for the shareholdings in Catella (10.4 per cent) and Fondbolaget Fondita (20.1 per cent).
  • Bure divested 1 million shares in Vitrolife, 300,000 shares in Xvivo Perfusion and a smaller shareholding in PartnerTech to the management of PartnerTech. Total proceeds amounted to SEK 172M.
  • Bure repurchased 4,108,043 shares during the quarter. Bure’s holding thereafter amounts to a total of 4,684,068 of treasury shares, which represents 6.2 per cent of the total number of shares outstanding.

Subsequent events

  • The net asset value per share amounted to SEK 60,06 on 19 February 2015 which corresponds to an increase of 30.3 per cent since year-end.
  • The Board proposes that the AGM approves an ordinary dividend of SEK 1.00 per share.
  • After the end of the reporting period, Bure has repurchased 563,732 shares for SEK 22.2M. Bure’s holdings of treasury shares increased as of 19 February 2015 to 5,247,800 shares, which is equal to 6.9 per cent the total number of shares outstanding in the company.


This year’s increase in net asset value per share concluded at a fantastic 40.7 per cent. Strong gains in two of our long-term holdings, Mycronic (+100%) and Vitrolife (+76%), are the main contributors. This fact is particularly gratifying because it shows that long-term and persistent work really does pay off. The Six Return Index ended at +15.8 per cent.

During the year we made two new portfolio company investments. In September, we invested about SEK 200M in the listed engineering group, Cavotec. Cavotec is active in a number of different market segments in which they market their internally developed systems and products. Our ambition is to work with management to take the next step in the company’s development. In addition to the investment in Cavotec, we have also returned to the financial sector. We have done this by acquiring 20 per cent of the Finnish fund manager, Fondita, and 10 per cent of Catella. Fondita has an impressive history as one of the leading independent equity fund managers in the Nordic countries. Since our investment in March, Catella, which is a listed financial advisor and asset manager, has developed very well with an increase of about 100 per cent. In connection with these investments, we created a holding company for our investments in the financial sector, Bure Financial Services AB.

In 2014, we continued to repurchase our own shares. In total we have repurchased 4.7 million shares, representing 6.2 per cent of the capital, at an average price of SEK 30.55.

Thanks to the divestment of 1 million shares in Vitrolife in December, we once again had about SEK 500M available for investment by year-end. Despite the current historically high asset prices, we continue to focus and work on evaluating new investments. We see, for example, many interesting situations in which Bure can play a distinct role.

Finally, I want to comment on our exceptional start of the year. Bure’s net asset value per share currently amounts to SEK 60,1 representing an increase of 30,3 percent. The main cause is the development of the share price of Mycronic, which since year-end has risen by 100 per cent. I conclude that this is proof of the great efforts by all employees at Mycronic!

Henrik Blomquist
CEO

For additional information contact
Henrik Blomquist, CEO +46 8 614 00 20
Max Jonson, CFO +46 8 614 00 20

The information in this interim report is subject to the disclosure requirements of Bure Equity AB under the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act. This information was publicly communicated on 20 February 2015, 8:30 a.m. CET.

Year-end report 2013

Full year January – December 2013

  • Net asset value per share at the end of 2013 amounted to SEK 33.47, compared to 27.06 at the previous year-end. Adjusted for dividends, this is equal to an increase of 25.5 per cent since year-end 2012.
  • Bure’s net asset value was SEK 2,545M (2,195).
  • The Parent Company’s profit after income tax was SEK 503M (128).
  • The Parent Company’s earnings per share amounted to SEK 6.40 (1.58).
  • Total return on the Bure share amounted to 21.0 per cent. The six return index rose by 28. per cent.
  • The Board proposes that the AGM approve an ordinary dividend of SEK 0.50 per share and an extraordinary dividend of SEK 0.50 per share.

Fourth quarter 2013

  • Net asset value per share increased by 3.5 per cent during the quarter. The Six Return Index rose by 9.2 per cent.
  • The Parent Company’s profit after income tax was SEK 85M (-61).
  • The value of the listed associated companies grew by SEK 189M.
  • Value growth from Bure’s short-term investments amounted to SEK 11M in the fourth quarter.
  • In the fourth quarter Bure recognised impairment losses for a total of SEK 119M, of which the bulk refers to Mercuri International (SEK 79M) and RushRail (SEK 21M).
  • Bure repurchased 1,000,000 treasury shares in October 2013. Bure’s holding thereafter amounts to a total of 5,050,475 treasury shares, which is equal to 6.2 per cent of the total number of shares outstanding in the company.

Subsequent events

  • Bure’s net asset value per amounted to SEK 35,46 on 20 February 2014.
  • At an ordinary board meeting held 20 February 2014, the Board of Directors of Bure Equity appointed Henrik Blomquist as Chief Executive Officer. Henrik Blomquist is Acting CEO of Bure Equity since April 2013 and prior to that Executive Vice President since 2010.

  
2013 was a good year for the stock market. In spite of a watchful global economy, the market has been driven by high expectations for future corporate profits and the SIX Return Index climbed by a full 28 per cent. Bure’s listed holdings also enjoyed a successful year. All in all, our listed portfolio companies rose by over 61 per cent in 2013. The largest contributors were Vitrolife, Micronic Mydata and Xvivo. This has naturally affected Bure’s net asset value in a positive direction. Adjusted for dividends, net asset value per share grew by 25.5 per cent in 2013.

The composition of the portfolio changed somewhat during 2013. A new portfolio company is MedCap, in which Bure is the single largest shareholder since the first quarter. Furthermore, in the past year we divested most of our holdings in Theducation. This sale marks the end of Bure’s nearly 15-year involvement in the independent school sector.

During the year Bure set up an investment committee whose task is to generate a return on Bure’s net cash, at a low risk, until new portfolio company investments are made. The investments consist mainly of fixed income funds and liquid listed shares. Despite a cautious strategy, it is encouraging to see that this management has produced a return of more than 13 per cent.

We have also experienced negative developments in 2013, which has led to the recognition of impairment losses. Mercuri’s drop in earnings is a disappointment. In the second half of the year additional measures were taken to turn this loss around. Leasing of locomotives to Trätåg’s timber transports was started during the year. The transport system is developing according to plan, although the train operator RushRail, in which we have a non-controlling interest, is having financial difficulties.

Finally, the portfolio company Micronic Mydata’s board has proposed that the AGM will approve an extraordinary dividend for the year. In the Board’s opinion, part of this dividend should be distributed to Bure’s shareholders. Against this background, and in addition to the ordinary dividend of 0.50 SEK per share, the Board intends to propose that the AGM of Bure approve an extraordinary dividend of SEK 0.50 per share.

Henrik Blomquist
CEO
  

For additional information contact
Henrik Blomquist, CEO +46 8 614 00 20
Max Jonson, CFO +46 8 614 00 2
0
   
The information in this interim report is subject to the disclosure requirements of Bure Equity AB under the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act. This information was publicly communicated on 21 Februari 2014, 8.30 a.m. CET.

Year-end report 2012

Fourth quarter 2012

  • Net asset value fell by 5.6 per cent during the quarter and amounted to SEK 27.1 per share.
  • Vitrolife hived off the company Xvivo Perfusion AB
    – a new holding in Bure’s portfolio.
  • Impairment losses recognised for a total of SEK 140M in the portfolio companies Mercuri International and Theducation.
  • Bure purchased shares in Vitrolife for SEK 3.8M and acquired additional shares in the Life Science company MedCap for SEK 4.5M.
  • Consolidated earnings per share totalled SEK -0.79 (0.92).

Full year January – December 2012

  • Net asset value per share rose by SEK 25.0 to SEK 27.1, equal to an increase of 8.2 per cent.
  • Net asset value at year-end 2012 was SEK 2,195M.
  • Total return on the Bure share was 39.8 per cent.
    The SIXR index rose by 16.5 per cent over the same period.
  • Cash and cash equivalents and short-term investments in the Parent Company totalled SEK 829M (476).
  • Consolidated earnings per share amounted to SEK -2.04 (-0.62).

Events after the end of the year

  • The Board of Directors intends to propose that the Annual General Meeting approve a dividend of SEK 0.50 (0.30) per share.
  • Net asset value at 20 February 2013 was SEK 28.8, an increase of 6.3 per cent.

FOR ADDITIONAL INFORMATION CONTACT
Patrik Tigerschiöld, CEO +46 8 614 00 20
Andreas Berglin, CFO +46 8 614 00 20

Year-end report 2011

Fourth quarter 2011

  • Consolidated net sales of SEK 223M (215).
  • Consolidated profit after tax including discontinued operations of SEK 75M (149).
  • Diluted earnings per share of SEK 0.92 (1.66).
  • Parent Company profit after tax of SEK 66M (166). Profit was positively affected by the reversal of impairment losses amounting to SEK 88M attributable to the listed portfolio companies PartnerTech and Micronic Mydata.
  • The portfolio companies The Chimney Pot and H. Lundén Holding were sold in December 2011.
  • In the fourth quarter Bure repurchased 1,681,669 treasury shares. At 31 December 2011 Bure held a total of 3,970,746 treasury shares, which is equal to 4.6 per cent of the total number of shares outstanding.

Financial information for the full year 2011

  • Consolidated net sales of SEK 806M (787).
  • Consolidated profit/loss after tax including discontinued operations of SEK -54M (571).
  • Diluted earnings per share of SEK -0.62 (6.60).
  • Parent Company profit/loss after tax of SEK -112M (197). Profit/loss was negatively affected by impairment losses of SEK 102M in the portfolio companies.
  • Bure’s net asset value at 31 December 2011 was SEK 2,035M (2,419). Net asset value per share was SEK 25.01 (26.98)
  • Total return on the Bure share was – 43.5 per cent (28,1). The change in net asset value per share was -7.3 per cent.
  • Through the redemption procedure carried out during the year, SEK 164M was distributed to Bure’s shareholders.

Subsequent events

  • The Board of Directors intends to propose that the Annual General Meeting approve a dividend of SEK 0.30 per share


The fourth quarter was marked by continued unrest and turbulence surrounding the EMU and the European banking system. However, a certain business optimism has returned in response to positive economic statistics, primarily from the USA. The stock markets rose at the end of the year and got off to a strong start in 2012.

Earnings in our portfolio companies during the final quarter of the year were mixed. Carnegie Holding had a weak quarter and reported an operating loss for the full year. Added to this were one-time items and restructuring charges that led to an annual loss of SEK 268M. The measures now being taken will create better conditions to ensure profitability in all of Carnegie’s business areas.

We are pleased to note that PartnerTech posted a profit of SEK 29M in the fourth quarter, equal to an operating margin of 4.5 per cent, and thereby continued the positive trend shown by the company during the year.

In the fourth quarter we sold two portfolio companies, The Chimney Pot and H. Lundén Holding, at the same time that we received contingent consideration from the sale of Textilia in 2008. All in all, this brought in proceeds of more than SEK 85M.

In the fourth quarter the Parent Company Bure reversed impairment losses of SEK 88M as a result of rising share prices for our listed holdings. During the year we recognised total impairment losses in the  portfolio of SEK 102M, of which SEK 45M in the listed holdings and SEK 60M in the unlisted holdings. Share prices fell during the past year and total return, adjusted for the redemption procedure, was – 43.5 per cent. As a comparison, net asset value per share fell by 7 per cent.

After the sale of six companies during the year, Bure now has a concentrated portfolio of eight holdings. Bure’s strong financial position with close to SEK 500M in investable assets creates ample scope for new investments.

 
FOR ADDITIONAL INFORMATION CONTACT

Patrik Tigerschiöld, President & CEO +46 8 614 00 20
Andreas Berglin, CFO +46 8 614 00 20

Year-end report 2010

Fourth quarter 2010
• Consolidated net sales of SEK 215M (160).
• Consolidated profit/loss after tax including discontinued operations of SEK 149M (-60).
• Diluted earnings per share of SEK 1.66 (-1.18).
• The Parent Company’s profit after tax was SEK 166M (-54).
• Bure sold the subsidiary Energo to ÅF (publ). The capital gain was SEK 122M in the Parent Company and SEK 123M in the Group.

Financial information for the full year 2010

• Consolidated net sales of SEK 792M (661).
• Consolidated profit after tax including discontinued operations of SEK 571M (46).
• Profit was positively affected by the reversal SEK 235M in negative goodwill attributable to the merger between Bure and Skanditek and SEK 226M in exit gains.
• Diluted earnings per share of SEK 6.60 (0.85).
• The Parent Company’s profit/loss after tax was SEK 197M (-140).
• The total distribution during the year amounted to SEK 505M, of which SEK 478M was an one-time distribution to Bure’s shareholders before the merger with Skanditek.
• The total yield on the Bure share during 2010 was 28.1 per cent.

Subsequent events

• Mercuri International acquired Celemi. The transaction was financed by Bure in a total amount of SEK 37M.
• Bure’s holding in Aptilo Networks was sold to the Norwegian private equity firm Norvestor V L.P. for a total of SEK 9.2M.
• Instead of a dividend, the Board intends to propose to the AGM a voluntary redemption procedure approx. for a total of SEK 175M.

COMMENTS FROM THE CEO
Patrik Tigerschiöld
President and CEO

At the end of 2010 the new Bure completed its first financial year. The merger between Bure and Skanditek took place in January 2010 and the established goals and cost synergies were realised during the year through reductions in both personnel and office-related costs. Prior to implementation of the merger, Bure’s shareholders received a one-time distribution of SEK 478M, equal to SEK 9.5 per share.

Bure’s portfolio companies performed well during the year in terms of sales and profit. It was especially satisfying to see such a positive turnaround in Micronic Mydata, where order intake improved by 62 per cent and operating profit reached SEK 73M (-179) in 2010. Carnegie had a strong year in Investment Banking at the same time that Securities increased both its ranking and its market shares. Carnegie’s acquisition of HQ Bank and HQ Fonder will make a significant contribution to developing and enhancing the customer offering in the Private Banking area.

Earnings in Carnegie Asset Management were weaker than anticipated as a result of costs attributable to its establishment as a separate company, the ownership distribution programme and foreign exchange effects.

During the year Bure sold its shares in the portfolio companies AcadeMedia and Energo. The sales generated a total of approximately SEK 550M and the two investments produced returns of over 40 and 29 per cent, respectively, which should be compared to Bure’s long-term target of 12 per cent.

After the sale of the portfolio companies, Bure has a strong financial position with net cash of approximately SEK 700M. In spite of the translation losses arising from a strong Swedish krona, which will affect earnings growth in our export-oriented companies, we are cautiously optimistic and expect the past year’s positive demand trend to continue in 2011.