STOCKHOLM, Sweden, January 24, 2002 (PRIMEZONE) -- Investor's net asset value on December 31, 2001 amounted to SEK 118,284 m. (SEK 154 per share), compared with SEK 144,433 m. on December 31, 2000 (SEK 188 per share). In the fourth quarter, Investor's net asset value increased SEK 16,266 m.
The value of all Investor's holdings was SEK 129,366 m. on December 31, 2001, as against SEK 154,561 m. at year-end 2000. Net debt amounted to SEK 11,082 m. on December 31, 2001, corresponding to 9 percent of total assets.
The value of Investor's Core Holdings changed by SEK -22,065 m. during the year. Ericsson and ABB accounted for a substantial part, SEK -14,767 m. and SEK -8,157 m., respectively. The value of Investor's Core Holdings appreciated SEK 15,553 m. in the fourth quarter.
Investor increased its holdings in Ericsson and SEB during the year and divested holdings in SAS, SKF and Stora Enso at the same time.
The value of New Investments decreased SEK 2,474 m. during 2001. In the fourth quarter, the value of New Investments increased SEK 686 m. During the year shares were purchased for a total of SEK 6,893 m. and shares were sold for a total of SEK 3,820 m.
Income of the Investor Group after tax amounted to SEK 8,156 m. in 2001, compared with SEK 13,459 m. last year. Income in the fourth quarter totaled SEK 483 m.
The total return on Investor shares was -15 percent during the year, compared with +20 percent last year.
The proposed ordinary dividend to shareholders is SEK 3.00 per share (3.00). An extraordinary dividend of SEK 2.50 per share (2.50) is also proposed.
12/31 2001 12/31 2000
Assets, SEK bn. 129 155
Net debt, SEK bn. 11 10
Net asset value, SEK bn. 118 144
Net asset value per 154 188
share, SEK
Development 2001 2000 Oct.-Dec. 2001 Oct.-Dec. 2000
during the
year/quarter
Change in net -26 -4 16 -12
asset value,
SEK bn.
Change in net -18 -3 16 -8
asset value,
percent
Income after tax,
SEK bn. 8 13 0.5 -1
Total return,
percent -15 20 14 3
Investor's key figures
The year-end report can also be accessed on the Internet at www.investorab.com
President's Comments
Balanced Performance in a Declining Market
The year 2001 distinguished itself by extraordinary events in both the political and economic arenas. Developments on the world's stock exchanges were characterized by unusual volatility between quarters within a downward, overall trend. For example, the Stockholm Stock Exchange, the S&P 500 and Nasdaq experienced declines in the first and third quarters, but gains in the second and fourth. As a whole, 2001 was a weak year, with downturns on virtually all of the world's exchanges. It is worth noting that the Stockholm exchange declined two years in a row for the first time in 25 years, following a seven-year upward trend prior to 2000.
On an aggregate basis, the global economy showed little or no growth during 2001. The outlook for 2002 remains uncertain. The aggressive easing of monetary policy by the U.S. Federal Reserve was reflected in a record number of interest rate cuts, 11 times in succession. Rate reductions were also implemented in many other countries during the year, in combination with tax cuts and increased public spending. This combination of fiscal and monetary stimulation should have a positive impact on the global economy. Predicting the time horizon is more difficult, however. Nonetheless, the industrial economies are still burdened by the effects of overinvestment mainly in telecommunications and information technology, the risks of lower private consumption and higher unemployment. The year 2002 will involve many challenges across the international economy.
For Investor, the year was characterized by active work to support and position portfolio companies. Investor's Core Holdings portfolio was also further streamlined. Holdings in Ericsson and SEB were increased and holdings in SAS, SKF and Stora Enso were divested. This long-term and strategically important transaction sharpened Investor's focus on the telecommunications and financial services business segments. During the year Investor sold its remaining interest in Saab Automobile and Investor's own convertible debenture loans were retired. This has further concentrated the portfolio. It should also be noted that Investor's active portfolio management operations (securities trading) generated attractive returns during the year, despite the unstable financial markets. New Investments' representation in Investor's portfolio increased during 2001, which was in line with the previously announced strategy and represented yet another step in the process to focus on companies with high growth and profit potential. As a whole, Investor's diversified portfolio, consisting of companies of varying size that operate in different sectors, has contributed to the portfolio's balanced development.
AstraZeneca, Investor's largest holding, had a positive impact on Investor's net asset value in both 2000 and 2001. The company's progress in the research area, and successful work to create synergies since the merger in 1999, have been gratifying and have strengthened Investor's conviction that the merger was both right for the business and shareholders. Atlas Copco, Electrolux and Saab recorded higher share prices for the year, which was particularly pleasing in a declining market.
Ericsson, as well as ABB, OM and WM-data, are continuing to work intensively on their restructuring and cost reduction programs. These companies face a number of challenges to ensure long-term value creation. After the aborted merger between SEB and Swedbank, SEB is focusing on becoming a more customer-driven and profitable bank in Northern Europe.
The significance of constant renewal is worth emphasizing again and is important for Investor's portfolio companies, and well as for Investor. The ability to reinvent is also one of the criteria used to analyze Investor's Core Holdings. In this respect, Investor's new investments play an important role for the future of the portfolio. In order to fully benefit from Investor's network and achieve appropriate balance in the portfolio, the New Investments business is divided into two main operations - one focused on early-expansion IT and healthcare companies, and one concentrating on more mature companies with high return potential which are in a number of business sectors.
All major venture capital markets in the United States, Europe and Asia experienced sharp downturns during 2001. Investment activity in these markets declined dramatically, in the range of 40 to 60 percent, at the same time as fewer exits were made. During 2001 new funds raised for venture capital investments decreased to about one-third the level of 2000. Investor Growth Capital has been conservative about its pace of new investments and its valuations of existing holdings. Companies were written down if their future performance was difficult to predict, or if their progress was not in line with earlier projections. During 2001 EQT closed on a number of deals and Investor Growth Capital gradually stepped up its investment rate during the latter part of the year.
Hi3G, partly owned by Investor, is continuing to build a cost-effective organization for Sweden and Denmark. In January 2002, it was announced that Orange joined the Hi3G and Europolitan joint venture company for building and sharing a UMTS network outside Sweden's major metropolitan areas. Hi3G has made 3G phone calls in its network since mid-December. Hi3G's future development will be exciting to follow, since the company is expected to launch its first services towards the end of 2002.
The year 2002 will involve a number of challenges for Investor, as well as opportunities. With a focused portfolio of core holdings representing 85 percent of Investor's assets, and an established venture capital and private equity business, the prerequisites are in place for continuing long-term, high returns for shareholders. Investor's strong financial position provides stability in a fluctuating market and constitutes a solid platform for future initiatives. Historically, Investor has been able to generate competitive returns during times of both economic downturn and upturn. This remains our goal for the future.
Investor AB is Sweden's largest listed industrial holding company with a total net asset value of approximately USD 11.1 billion (December 31, 2001). The company's business concept is to create shareholder value through long-term active ownership and investment activities. The average annual total return to shareholders has been in excess of 20 percent during the past 20 years. Investor is a leading shareholder in a number of public multinational companies, including ABB, AstraZeneca, Atlas Copco, Ericsson, Electrolux, Gambro, OM, Saab AB, Scania, SEB and WM-data. Investor is headquartered in Stockholm and has offices in Amsterdam, Hong Kong, New York and Palo Alto.
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