Interim report January - June 2021
BURES INTERIM REPORT JANUARY - JUNE 2021
Interim period January - June 2021
- Net asset value was SEK 287.0 per share compared to SEK 239.6 at the beginning of the year, corresponding to an increase of 19.8 per cent.
- Bure's net asset value was SEK 21,278M compared to SEK 17,763M at the beginning of the year.
- Total return on the Bure share was 26.6 per cent compared to the SIX Return Index, which increased 22.4 per cent.
- The Bure investment entity's earnings after tax amounted to SEK 3,679M (21). Earnings per share amounted to SEK 49.5 (0.3).
Interim period April - June 2021
- Net asset value was SEK 287.0 per share compared to SEK 236.1 at the beginning of the quarter, corresponding to an increase of 21.6 per cent.
- Bure divested 1 million shares in Mycronic for SEK 258.9M, which resulted in an exit gain of SEK 246.4M.
- Bure Growth acquired an additional 0.04 million shares in BioLamina for SEK 8.0M, increasing its holding to 46.7 per cent.
- In line with the decision of the Annual General Meeting, an ordinary dividend of SEK 2.0 per share was paid, amounting to a total of SEK 148.3M.
Events after the end of the period
-
Net asset value amounted to 323.8 per share on
18 August 2021, corresponding to an increase of
35.2 per cent since the beginning of the year. - Vitrolife entered into an agreement to acquire 100 per cent of shares in Igenomix S.L. for EUR 1,250M. Igenomix is a global leader in female health and tests for reproductive genetics for IVF clinics. The transaction will be financed with rights issues, cash and cash equivalents, and bank credits. In July, Vitrolife conducted a directed rights issue in which Bure acquired 0.11 million shares for SEK 40.1M. Bure also entered into an agreement to acquire 0.83 million shares in Vitrolife from the sellers of Igenomix for SEK 305.0M.
CEO Bure Equity AB
Henrik Blomquist
Bure's net asset value per share jumped 21.6 per cent in the quarter. Substantial increases in Mycronic and Vitrolife, (26.0 and 38.7 per cent, respectively), were the key reasons for the strong growth in net asset value. In the first half of the year, Bure's net asset value per share increased
19.8 per cent, compared to the SIX RX which increased by 22.4 per cent in the same period.
The portfolio companies generally reported good results for the second quarter of the year. However, it is important to remember that the comparative figures for the majority of companies are extremely low. Especially encouraging was that the two portfolio companies that were hardest hit by covid - Vitrolife and Mercuri - are now back at pre-covid levels.
During the quarter, Cavotec announced plans to increase investment in the electrification and automation of ports. The company sees strong growth potential for its sustainability-orientated products and solutions for ports and vessels that want to improve the environment by reducing their emissions. Cavotec recently won an order, inter alia, from Port of Kapellskär that will install Sweden's first automated mooring system.
After the end of the period, Vitrolife entered into an agreement to acquire Spain's Igenomix for EUR 1.25 billion. Igenomix provides reproductive genetics tests for IVF clinics. The merger will create a global leader in reproductive healthcare. Bure provided some of the financing that made the acquisition possible.
In the past 18 months, extensive support measures have been implemented to stimulate the economy and limit the negative effects of covid. This has created a strong economic recovery, which among other things has caused the prices of many assets to increase sharply. The SIX RX, for example, is up just over 30 per cent to date, raising questions over whether the stock market has become excessively overvalued.
THIS REPORT IS A TRANSLATION OF THE SWEDISH REPORT. IN THE EVENT OF ANY DIFFERENCES BETWEEN THIS TRANSLATION AND THE SWEDISH ORIGINAL, THE SWEDISH REPORT SHALL HAVE PRECEDENCE.
BURE'S NET ASSET VALUE AND HOLDINGS
Bure's net asset value
and holdings
2020-12-31 | 2021-06-30 | |||||||||
Value | % of net | Net asset | ||||||||
% of | Net asset | change. | Net asset | asset | value per | |||||
SEK M | capital | value | (+/-) 1) | Investment | Disposal | value | value | share. SEK | ||
ACQ Bure 3) | 20.0% | 20 | 17 | 680 | - | 717 | 3.4% | 9.7 | ||
Cavotec | 36.2% | 726 | 78 | - | - | 804 | 3.8% | 10.8 | ||
MedCap 4) | 9.5% | 680 | -64 | - | -318 | 298 | 1.4% | 4.0 | ||
L2) | Mentice | 14.7% | 304 | 9 | - | - | 313 | 1.5% | 4.2 | |
I | Mycronic 5) | 26.9% | 6,704 | 350 | - | -259 | 6,795 | 31.9% | 91.6 | |
S | ||||||||||
T | Ovzon | 11.3% | 394 | -46 | - | - | 348 | 1.6% | 4.7 | |
E | ||||||||||
D | Vitrolife | 19.0% | 4,440 | 2,876 | - | - | 7,316 | 34.4% | 98.7 | |
Xvivo Perfusion | 15.0% | 1,357 | 156 | - | - | 1,513 | 7.1% | 20.4 | ||
Total listed holdings | 14,624 | 3,376 | 680 | -577 | 18,104 | 85.1% | 244.2 | |||
Allgon 6) | 98.7% | 71 | - | 664 | - | 735 | 3.5% | 9.9 | ||
U | Atle Investment Management 7) | 93.0% | 108 | 61 | 25 | -1 | 193 | 0.9% | 2.6 | |
N | ||||||||||
L | Bure Growth 8) | 100.0% | 1,264 | 32 | 8 | -11 | 1,293 | 6.1% | 17.4 | |
I | ||||||||||
S | Investment AB Bure 9) | 100.0% | 177 | 1 | - | - | 178 | 0.8% | 2.4 | |
T | ||||||||||
E | Mercuri International 10) | 90.4% | 128 | - | - | - | 128 | 0.6% | 1.7 | |
D | ||||||||||
Total unlisted holdings | 1,748 | 94 | 698 | -12 | 2,528 | 11.9% | 34.1 | |||
Total holdings | 16,372 | 3,470 | 1,378 | -588 | 20,632 | 97.0% | 278.3 | |||
T | Cash and cash equivalents, | |||||||||
R | ||||||||||
E | short-term investments and | |||||||||
A | other assets 11) | 1,391 | -745 | 646 | 3.0% | 8.7 | ||||
S | ||||||||||
Total treasury | 1,391 | -745 | 646 | 3.0% | 8.7 | |||||
U | ||||||||||
R | ||||||||||
Y | ||||||||||
Total net asset value | 17,763 | 3,470 | 633 | -588 | 21,278 | 100.0% | 287.0 |
- Change in value including exit gains/losses.
- Bures number of shares at 30 June 2021: ACQ Bure 7,000,000, Cavotec 34,071,619, MedCap 1,406,017, Mentice 3,644,059, Mycronic 26,317,163, Ovzon 5,236,034, Vitrolife 20,573,285 and Xvivo Perfusion 4,322,504.
- Bure invested an additional SEK 680M in ACQ Bure in March 2021, bringing total investment to SEK 700M. ACQ Bure was listed on the Nasdaq Stockholm in March 2021. On 31 December 2020, the holding was reclassified from treasury to listed portfolio companies.
- Bure divested 1.5 million shares in MedCap for SEK 312.6M, which resulted in an exit gain of SEK 282.9M and divested 50,000 shares in conjunction with the exercise of options, which resulted in an exit gain of SEK 3.1M.
- Bure divested 1 million shares in Mycronic for SEK 258.9M, which resulted in an exit gain of SEK 246.4M.
- In December 2020, Bure announced a cash offer to shareholders in Allgon. As of 30 June 2021, the holding amounted to 98.7 per cent.
On 31 December 2020, the holding was reclassified from treasury to unlisted portfolio companies.
- Atle Investment Management divested shares in TIN Fonder to a TIN Fonder employee, paid additional purchase payments related to Atle Investment Services, and acquired Humle Fonder. The holding in Alcur Fonder and TIN Fonder was revalued by SEK 64.5M.
- Bure Growth divested its holding in Life Genomics for SEK 10.7M, which resulted in an exit gain of SEK 3.7M. Bure Growth acquired an additional 0.04 million shares in BioLamina for SEK 8.0M, increasing its holding to 46.7 per cent. The holding in BioLamina was revalued by SEK 20.8M due to the transaction.
- Refers to net assets.
10 Fair value of equity and interest-bearing receivables.
- Cash and cash equivalents, participations in funds and short-term investments in market-listed assets, other unlisted companies, interest-bearing receivables and other net assets
BURES INTERIM REPORT JANUARY - JUNE 2021
3
BURE'S NET ASSET VALUE AND HOLDINGS
Breakdown in change in net asset value in the first half of 2021
SEK M | ||||
25,000 | +780 | |||
+3,480 | 21,278 | |||
20,000 | 17,763 | -745 | ||
15,000 |
10,000
5,000
0
Net asset value | Listed | Unlisted | Treasury | Net asset value |
31 December 2020 | holdings | holdings | 30 June 2021 |
Listed portfolio companies
Listed portfolio companies accounted for 85.1 per cent of net asset value compared to 82.3 per cent at the end of 2020. The value of listed portfolio companies increased by SEK 3,480M to SEK 18,104M. Of this increase, value changes due to fluctuations in share prices accounted for SEK 2,844M, exit results for SEK 532M, acquisitions for SEK 680M, and divestments for SEK 577M.
Value changes
Value changes due to fluctuations in share prices during the period were SEK 2,844M. Bure's comparative index, the SIX RX, registered an increase of 22.4 per cent.
Value changes in SEK M and share price performance 2021
Vitrolife | 2,876 | 64.8% |
Xvivo Perfusion | 156 | 11.5% |
Mycronic | 104 | 5.2% |
Cavotec | 78 | 10.8% |
ACQ Bure | 17 | 2.4% |
Mentice | 9 | 3.0% |
Ovzon | -46 | -11.7% |
MedCap | -350 | -7.8% |
Total | 2,844 | |
Acquisitions
Bure acquired 6.8 million shares in ACQ Bure for SEK 680.0M. Bure's holding in ACQ Bure was 20.0 per cent following the company's listing on the Nasdaq Stockholm.
Divestments
Bure divested 1.5 million shares in MedCap for SEK 312.6M, which resulted in an exit gain of SEK 282.9M. Bure divested 50,000 shares in conjunction with the exercise of options in MedCap for SEK 5.0M, which resulted in an exit gain of SEK 3.1M.
Bure divested 1 million shares in Mycronic for SEK 258.9M, which resulted in an exit gain of SEK 246.4M.
Dividends received
Bure received dividends for SEK 98.4M from Mycronic and Vitrolife.
Unlisted portfolio companies
Unlisted portfolio companies accounted for 11.9 per cent of net asset value compared to 9.8 per cent at the end of 2020.
The value of unlisted portfolio companies increased by SEK 780M to SEK 2,528M.
Acquisitions
In December 2020, Bure acquired shares for SEK 71M and announced a cash offer to the shareholders in Allgon AB (publ.). During the period, a further SEK 664M was invested, taking the total investment to SEK 735M. At the end of June 2021, Bure's holding amounted to 98.7 per cent.
Atle Investment Management completed the acquisition of Humle Fonder, and assumed management of Humle Småbolagsfond and Humle Sverigefond on 11 January 2021, and paid additional purchase payments related to Atle Investment Services.
Bure Growth acquired an additional 0.04 million shares in BioLamina for SEK 8.0M, increasing its holding to
46.7 per cent. The holding in BioLamina was revalued by SEK 20.8M due to the transaction.
Divestments
Atle Investment Management divested shares in Teknik Innovation Fonder for SEK 1.2M to an employee of TIN Fonder.
Bure Growth divested its holding in Life Genomics for SEK 10.7M, which resulted in an exit gain of SEK 3.7M.
Dividends received
Atle Investment Management received share dividends of SEK 93M from its investments i investment funds.
BURES INTERIM REPORT JANUARY - JUNE 2021
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BURE'S NET ASSET VALUE AND HOLDINGS
Treasury
The value of assets in Treasury decreased SEK 745M to SEK 646M. During the period, Bure acquired financial assets for SEK 1,370M and divested financial assets for SEK 589M. The parent company received dividends of SEK 192M and paid dividends of SEK 148M. Other changes of SEK -8M were due to value changes in short-term investments and administrative costs.
Assets in Treasury amounted to 3.0 per cent of net asset value compared to 7.8 per cent at the end of 2020.
The Bure share
The total number of shares in Bure is 74,146,921. The 2021 Annual General Meeting authorised the Bure Board of Directors to decide on the buyback of up to 10 per cent of the total number of outstanding shares. As of 30 June 2021, no shares had been repurchased.
Bure's share price on 30 June 2021 was SEK 369.80,
equivalent to a total return of 26.6 per cent since the beginning of the year.
18 Aug | 30 Jun | 31 Dec | 31 Dec | |
2021 | 2021 | 2020 | 2019 | |
Share price, SEK | 417.4 | 369.8 | 293.6 | 212.0 |
Dividend per share, SEK | 2.0 | 2.0 | 1.0 | 2.0 |
Total return since year-end1) | 42.9% | 26.6% | 39.2% | 97.9% |
Net asset value per share, SEK | 323.8 | 287.0 | 239.6 | 196.6 |
Development of NAV per share | 35.2% | 19.8% | 21.8% | 43.5% |
SIX Return Index | 32.6% | 22.4% | 14.8% | 35.0% |
- Including dividends of SEK 2.00 per share for 2021, SEK 1.00 per share for 2020 and SEK 2.00 per share for 2019.
Increase in Bure's net asset value and market price per share
SEK
400 | 369.8 |
350
Portfolio companies January - June 2021 and 2020 | |||||||
Listed SEK M | 2021 | 2020 | |||||
Net sales | n/a | - | |||||
EBIT | n/a | - | |||||
EBIT margin | n/a | - | |||||
Holding | 20.0% | - | |||||
Net sales | 748 | 860 | |||||
EBIT | -4 | 39 | |||||
EBIT margin | -0.5% | 4.5% | |||||
Holding | 36.2% | 36.2% | |||||
Net sales | 456 | 415 | |||||
EBIT | 49 | 39 | |||||
EBIT margin | 10.8% | 9.3% | |||||
Holding | 9.5% | 20.0% | |||||
Net sales | 79 | 58 | |||||
EBIT | -18 | -19 | |||||
EBIT margin | -22.8% | -32.2% | |||||
Holding | 14.7% | 15.1% | |||||
Net sales | 2,355 | 1,822 | |||||
EBIT | 739 | 336 | |||||
EBIT margin | 31.4% | 18.4% | |||||
Holding | 26.9% | 27.9% | |||||
Net sales | 70 | 95 | |||||
EBIT | -62 | -12 | |||||
EBIT margin | -87.5% | -12.6% | |||||
Holding | 11.3% | 11.3% | |||||
Net sales | 761 | 543 | |||||
EBIT | 254 | 110 | |||||
EBIT margin | 33.3% | 20.3% | |||||
Holding | 19.0% | 19.0% | |||||
Net sales | 118 | 77 | |||||
EBIT | -6 | -13 | |||||
EBIT margin | -5.2% | -16.5% | |||||
Holding | 15.0% | 15.7% | |||||
Unlisted SEK M | 2021 | 2020 | |||||
Net sales | 262 | 249 |
300 | 287.0 |
250 | |
200
150
100
50
0 11 12 13 14 15 16 17 18 19 20 21 Q2
Net asset value per share Share price
EBIT | 35 | -9 | ||
EBIT margin | 13,4% | -3.4% | ||
Holding | 98.7% | - | ||
Net sales1) | 0 | 0 | ||
EBIT | 156 | 15 | ||
EBIT margin | n/m | n/m | ||
Holding | 93.0% | 93.0% | ||
Net sales1) | 0 | 0 | ||
EBIT | 32 | 0 | ||
EBIT margin | n/m | n/m | ||
Holding | 100.0% | 100.0% | ||
Net sales | 12 | 11 | ||
EBIT | 3 | -8 | ||
EBIT margin | 26.9% | n/m | ||
Holding | 100.0% | 100.0% | ||
Net sales | 149 | 113 | ||
EBIT | 3 | -27 | ||
EBIT margin | 2.0% | -23.7% | ||
Holding | 90.4% | 90.4% | ||
1) Historical financial data is recalculated according to IFRS - 10 investment entities.
BURES INTERIM REPORT JANUARY - JUNE 2021
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Bure Equity AB published this content on 19 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 August 2021 06:43:07 UTC.