OM Financial Statement for Year-End 2001


STOCKHOLM, Sweden, Jan. 23, 2002 (PRIMEZONE) -- OM:


 Highlights

  --  Revenue  for the year  totaled  SEK 3,072 m (3,152)
  --  Net income after financial items  at SEK -469 m (743)
  --  Earnings per share for the year were SEK -0.30 (8.61)
  --  Fourth quarter income after financial items totaled 
      SEK 144 m (174)
  --  Strong growth rate continues in Division Technology
  --  SEK 481 m in non-recurring expenses
  --  Jiway restructuring complete

SIGNIFICANT EVENTS WITHIN THE GROUP

A year of weak markets and restructuring

For OM, 2001 was characterized by continued growth within the technology operations, heavy non-recurring expenses related to the restructuring of Jiway as well as the expense reduction program. OM was affected early on in the recession and market conditions in many of the markets on which OM operates became weaker during the year. Developments were mixed within OM's exchange operations; equity trading turnover fell at the same time as there was an increase in the number of derivative contracts traded. However, throughout the year OM continued to gain market shares for both its technology as well as its exchange operations.

Earnings development in 2001

Group revenue fell by 3 percent during the year to SEK 3,072 m (3,152 in 2000). Excluding gains from the sale of shares in Orc Software of SEK 95 m (250), group revenue increased however by 3 percent. Revenue from the technology operations rose sharply during the year. Trading revenue from OM's exchange operations fell, largely as a result of lower market values and fee reductions on Stockholmsborsen.

OM's operating income 2001 totaled SEK -453 m (703). Excluding items affecting comparability operating income totaled SEK 28 m (698). Including restructuring costs, Jiway has affected the operating result with SEK -832 m (-282) during the year.

The increase in group expenses during the year to SEK 3,525 m (2,449) was primarily due to the continued operational growth within Division Technology as well as the items affecting comparability. These items totaled SEK -481 m (5) of which SEK 408 m was attributable to the restructuring of Jiway and SEK 73 m related to expenses incurred by the expense reduction program initiated by OM during the summer. The expense reduction program was estimated to result in a decrease in OM's annual operating expenses of at least SEK 150 m (calculation based on operating levels during the first quarter 2001), with the full effect expected during the first quarter 2002. Expensed investments in Research and Development (R&D) amounted to SEK 289 m (287) for the year. The restructuring of Jiway and the effects of the group's cost-cutting program led to a reduction in group expenses during the fourth quarter of the year.


 Quarterly       Qtr 1  Qtr 2   Qtr 3   Qtr 4    Total   Total   Total
 earnings                                        2001    2000    1999

 SEK m
 Revenue          785    806     648     833    3,072   3,152    1,954
 Operating       -770   -856  -1,223    -676   -3,525  -2,449   -1,431
  expenses 
 Operating         15    -50    -575     157     -453     703      523
  income
 Income after      25    -61    -577     144     -469     743      603
 Financial items
 Income after      61      0    -193     107      -25     730      444
  tax
 Earnings per    0.72   0.00   -2.28    1.26    -0.30    8.61     5.23
  share

Financial items totaled SEK -16 (40), the change attributable to an increased level of borrowing. The year's tax revenue, totaling SEK 233 m (-127), was primarily due to positive taxation effects from the restructuring of Jiway. Including restructuring expenses, the total impact of Jiway on the year's income after tax was SEK -348 m. The year's income after tax was SEK -25 m (730).

Please find enclosed OM AB's Financial Statement for 2001. It is also available on www.om.com.

To view the full text and financial tables, please click on the following link: http://www.waymaker.net/bitonline/2002/01/23/20020123BIT00740/bit0002.pdf

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