Bure Equity

Interim report January – September 2022

• Net asset value was SEK 163.7 per share compared to SEK 323.2 at the beginning of the year, which is equivalent to a reduction of 49.3 per cent.
• Bure’s net asset value was SEK 12,140M compared to SEK 23,964M at the beginning of the year.
• Total return on the Bure share was -57.6 per cent compared to the SIX Return Index that fell 30.5 per cent.
• Group earnings after tax amounted to SEK -11,644M (5,081). Earnings per share amounted to SEK -157.2 (68.4).

Interim report July – September 2022

• Net asset value was SEK 163.7 per share compared to SEK 196.7 at the beginning of the quarter, which is equivalent to a reduction of 16.8 per cent.

Subsequent events

• Net asset value amounted to SEK 196.5 per share on 9 November 2022, which is equivalent to a reduction of 39.2 per cent since the beginning of the year.

Comments from the CEO

Stock markets continued to perform negatively in the second quarter. The SIX Return index fell more than 17 per cent. The majority of Bure’s listed portfolio companies lost value, which resulted in Bure’s net asset value per share falling by 16 per cent in Q2. During the first six months of the year, Bure’s net asset value per share thus decreased 39 per cent compared to the SIX Return, which fell by 28 per cent.

Gladly most of our portfolio companies reported strong interim results. Vitrolife, whose share price decreased the most during the quarter, took further steps to integrate Igenomix. “New” Vitrolife recorded 18 per cent organic growth and an EBITDA margin of 32.9 per cent. Mycronic reported stable turnover and order intake, with all divisions reporting double-digit operating margins.

Bure’s unlisted portfolio companies also performed well. Allgon and ScandiNova increased turnover by roughly 15 per cent. However, Allgon’s margin was slightly lower than the previous year, which was in part due to increases in component costs.

Cavotec faced the most severe challenges in the quarter with the lockdown of Shanghai for more than a month due to covid. This caused major disruption to Cavotec’s production schedules and customer deliveries. In May, David Pagels was appointed as the new CEO of Cavotec.

High inflation and rising interest rates caused stock markets to revalue most sectors in the first six months of the year. Investors are currently looking for profitability, cash flow and predictability over growth and future potential. A fundamental component of Bure’s company-building philosophy is profitable growth. We believe that profitable growth creates healthy and successful companies. Despite an uncertain future that is difficult to assess, I therefore feel considerable confidence in how our portfolio companies are addressing current market challenges.

Bure Equity AB (publ)