Interim Report January – June, 2015

2015-07-22

Successful IPO and new investment in trailblazing technology company

Significant events in the first half of the year and the second quarter

  • Portfolio company SciBase issued new shares for around SEK 165 million in connection with the company’s listing on Nasdaq’s First North market in June 2015
  • In June 2015 Fouriertransform made a new investment in Lemara AB, a trailblazing technology company in Gothenburg specializing in light-weight materials
  • In February 2015 ÅF AB (publ), a company listed on Nasdaq Stockholm, acquired all of the shares in Fouriertransform’s portfolio company LeanNova Engineering in Trollhättan. Fouriertransform initially invested in the company in January 2012 and the divestment provided a total capital gain of SEK 204.60 million for Fouriertransform. This was recognized in the results through restatement for the years 2013 and 2014
  • Fouriertransform approved investments during the first half of the year of SEK 86.7 million in eight existing portfolio companies
  • Since its inception Fouriertransform has invested a total of SEK 1,482 million in 26 companies in the Swedish automotive and manufacturing industries
  • The fair value of the existing portfolio, including the realized value from divestments and repaid capital from the portfolio companies, represents a decrease in value of around 6 percent of the total capital invested since Fouriertransform was formed
  • In May 2015 Fouriertransform paid a dividend of SEK 100 million to the owner according to a resolution at the Annual General Meeting on April 22, 2015
  • The result after tax for the first half of the year was SEK -139.7 million (-6.4) including unrealized losses in portfolio companies of SEK -140.7 million, realized profits in portfolio companies of 15.4 million and revaluation of investments in securities of SEK -51.9 million (0.5). The net result for the quarter was SEK -92.7 million (-14.4) including unrealized losses in portfolio companies of SEK -69.0 million, realized profits in portfolio companies of 14.2 million and revaluation of investments in securities of SEK -67.9 million (-23.8)
  • The total cash flow for the first half of the year was SEK 45.2 million (-0.5) of which investments in new and existing portfolio companies accounted for SEK -115.5 million
    (-282.5)
  • Cash and bank balances and investments in securities at the end of the quarter amounted to SEK 1,853 million (1,952)
     

The amounts in the table below refer to the so-called investment company, and accordingly, financial investments, investments in portfolio companies and investments in securities are measured at estimated fair value.

Fouriertransform highlights, SEK m
Q2
2015
Q2
2014
%
 
Q1-2
2015
Q1-2
2014
%
 
Net result for the period –92.7 –14.4 –139.7 –6.4
Investments in portfolio companies 64.7 93.6 –31 115.5 282.5 –59
Cash flow for the period       45.2 –0.5
Cash and bank balances and investments in securities 1) 1 852.6 1 951.9 –5 1 852.6 1 951.9 –5
Equity 1) 2 952.3 3 276.5 –10 2 952.3 3 276.5 –10
Equity/assets ratio 99 % 99 %   99 %    

1) In May 2015 a dividend of SEK 100 million was paid to the owner.

CEO’s comments – growing interest in new business

Over the past six months Swedish industrial companies have not seen any noticeable improvement in order inflow and exports. While there are now some indications of a change for the better – at least in some sectors – uncertainty in the global economy is leading to constant discrepancies between forecasts and outcomes, and various institutes have been making frequent revisions to their forecasts.

Many of the small and medium-sized companies with which Fouriertransform works still have a long path to recovery from the consequences of the 2008 crisis. If these companies are going to be able to grow, recruit and contribute to a strong industrial base in Sweden, they cannot sit and wait for the economy to recover. What they need most is sustainable and expert capital participation to support their innovations and expansion into new markets, and to bring them valuable contacts in industrial and other networks and with co-investors.

This is how we have chosen to operate at Fouriertransform – taking a business-oriented approach to help our portfolio companies grow in value. There have been several successful examples of this over the past six months.

At the beginning of the year we transferred our majority ownership of Vicura AB in Trollhättan to the Austrian consulting firm AVL. We have also taken advantage of the growing interest in IPOs resulting from the low interest rates. The introduction of PowerCell on Nasdaq’s First North market raised SEK 108 million in one go to finance the company’s important period of development ahead. In June this year med tech company SciBase gained 4,000 new shareholders when it was listed on First North.

Meanwhile, interest in new business has increased, with more and more companies seeking capital. We always have a large number of applications under review, and in the second quarter we acquired 27 percent of Lamera AB, a trailblazing technology company in Gothenburg specializing in light-weight materials.

In June the head of a special government inquiry, Hans Rydstad, submitted his report on oversight of the Government’s corporate financing investments. The proposal is now under consideration and the Government has announced that there will be a more detailed description and proposals in the autumn budget bill. Pending a parliamentary decision, Fouriertransform will continue to operate according to its current mandate, i.e. investing in or financing companies in the automotive and manufacturing industries and associated services that are involved in research, development and investment activities with commercial potential.

Per Nordberg