YEAR-END REPORT FOR THE FINANCIAL YEAR 2006
JANUARY 1 – DECEMBER 31, 2006, INCLUDING INTERIM REPORT FOR Q4 PERTAINING TO THE PERIOD OCTOBER 1 – DECEMBER 31, 2006
• The Group’s net income amounted to MSEK -114.2 (220.9), corresponding to SEK
-3.1 (5.9) per share. Equity amounted to MSEK 603.9 (792.5), amounting to SEK 16.2 (21.3) per share. Cash and cash equivalents, including holdings in Nove Capital Fund, amounted to MSEK 293.4 (303.3).
• The four largest private holdings showed continued growth in revenues of between 18 and 68 percent. As at December 31, 2006 the value of Novestra’s investment in Nove Capital Fund since inception in May 2005, has increased by MSEK 101.3, equivalent to a return of 53.5 percent. The value in Nove Capital has developed positively during 2007.
• The entire holding in Nove Capital will be redeemed during the first quarter of 2007 and the Board of Directors have previously proposed that the entire cash amount is to be distributed to the shareholders after the Annual General Meeting 2007 by Novestra issuing redemption shares. The value as at January 31, 2007 amounts to approximately MSEK 302.7 which corresponds to approximately SEK 8.1 per share.
• The Board of Directors and management is currently evaluating the best way to create shareholder value after the distribution of cash and shares in Diino during the second quarter of 2007. The options include consolidation scenarios as well as a strategic transaction.
• The result during the period has been effected with changes in value to a total of MSEK 130. The changes in value depend on to a large degree to changed valuation techniques, whereby the valuation appraisal of comparable public companies has been taken into consideration rather than forecasted cash flow.
“Growth in revenues in two of the portfolio companies has been lower than expected for the year 2006. Currently the portfolio companies are continuing to develop well and all companies expect a good growth in revenues during 2007.
I believe the conditions for successfully carrying out divestments in the private holdings
will improve during 2007, as results in the portfolio companies continue to develop positively. To create the best possible value in relation to our carrying values, it is important that we optimise the timing for the divestments” says Novestra’s Managing Director, Johan Heijbel.
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