Bure Equity

Quarterly Report • Aug 16, 2019

Interim report January – June 2019

Interim report January – June 2019

• Net asset value was SEK 153.5 per share compared to SEK 137.1 at the beginning of the year, which corresponds to an increase of 12.0 per cent.
• Bure's net asset value was SEK 10,591M compared to SEK 9,454M at the beginning of the year.
• Total return on the Bure share was 47.9 per cent compared to the SIX Return Index that increased 20.7 per cent.
• Consolidated profit after tax amounted to SEK 1,273M (1,132). Earnings per share amounted to SEK 18.46 (16.33).

Second quarter 2019

• Net asset value per share was SEK 153.5 compared to SEK 165.0 at the start of the quarter, which corresponds to a decrease of 6.9 per cent.
• Bure acquired 2.45 million shares in Mentice for SEK 120M in connection with the company's stock market launch, corresponding to a shareholding of 10.1 per cent.
• Bure Growth signed an agreement regarding the acquisition of 24.4 per cent of shares in ScandiNova Systems.
• In line with the decision taken at the Annual General Meeting, an ordinary dividend of SEK 2.00 per share was paid, with payments totalling SEK 138M.

Subsequent events

• Net asset value amounted to SEK 156.2 per share on 15 August 2019, which corresponds to an increase of 14.0 per cent since the beginning of the year.
• Bure Growth completed the acquisition of shares in ScandiNova Systems.

Henrik Blomquist CEO

Bure's high level of activity continued apace in the second quarter. In June, we announced new investments, in two growth companies in the tech sector. Mentice, which develops simulation programmes for endovascular surgery, was listed in June and Bure was one of its anchor investors. Scandinova is an unlisted company based in Uppsala. The company develops so-called pulse generators that are key components in, for example, radiation equipment used for cancer treatment. Technology-driven companies with an international focus are attractive to us, and this is an area in which we have extensive experience. The development potential of companies that have proven business models, and that have established market positions, are extremely exciting. Our hope is that we are able to support the companies' continued long-term development.

Global indicators continue to be negative overall – numerous indicators point to lower levels of economic activity globally and in Europe. Despite this, the stock market was up during the first months of the summer. During the first six months of the year, Bure's total return amounted to +47.9 per cent compared to the SIX RX that increased 20.7 per cent.

Following a strong start in first quarter, Bure's net asset value per share softened slightly in the second quarter by -6.9 per cent. The main reason for this were falls in our two largest listed portfolio companies, Vitrolife and Mycronic, which both fell by around 14 per cent during the period. However, since the beginning of the year, net asset value has increased 12 per cent.

Several of our portfolio businesses booked strong quarterly results. Mycronic reported its strongest quarter ever in terms of sales, which was a great start for newly appointed CEO Anders Lindqvist. Mycronic's share jumped more than 20 per cent on the release of the results. Finally, I would like to express my sincere gratitude to Lena Olving. Her efforts as CEO have been a major contributor to Mycronic's successful development.

Bure's net asset value and holdings

			2018-12-31					2019-06-30
SEK M		% of capital	Net asset value	Value change, (+/-)1)	Invest ment	Disposal/ Reclassi fication	Net asset value	% of net asset value	Net asset value per share,SEK
	Cavotec3)	27.1%	264	-11	76	-2	326	3.1%	4.7
2) L I	MedCap4)	22.3%	245	95	–	-3	337	3.2%	4.9
	Mentice5)	10.1%	0	52	120	–	172	1.6%	2.5
	Mycronic6)	27.9%	3,462	-119	–	-262	3,081	29.1%	44.7
S T	Ovzon7)	14.3%	75	88	113	–	276	2.6%	4.0
E D	Vitrolife8)	19.0%	3,321	787	–	-384	3,724	35.2%	54.0
	Xvivo Perfusion9)	15.8%	566	269	–	–	835	7.9%	12.1
	Total listed holdings		7,933	1,161	308	-651	8,751	82.6%	126.9
U	Atle Investment Management10)	100.0%	89	–	7	–	95	0.9%	1.4
N L	Bure Growth11)	100.0%	490	–	4	–	494	4.7%	7.2
I S	Investment AB Bure12)	100.0%	178	5	–	–	183	1.7%	2.7
T E	Mercuri International Group13)	99.1%	135	–	–	–	135	1.3%	2.0
D	Total unlisted holdings		892	5	11	0	907	8.6%	13.2
	Total holdings		8,824	1,166	319	-651	9,658	91.2%	140.0
T R E A S U R Y	Cash and cash equivalents, short-term investments and other assets13) Total treasury		630 630		302 302		932 932	8.8% 8.8%	13.5 13.5
	Total net asset value		9,454	1,166	621	-651	10,591	100.0%	153.5

1) Change in value including exit gains/losses.

2) Number of shares at 30 June 2019: Cavotec 25,579,935, MedCap 3,006,017, Mentice 2,448,000, Mycronic 27,317,163, Ovzon 4,799,698, Vitrolife 20,573,285 and Xvivo Perfusion 4,205,504. 3) Cavotec conducted a rights issue valued at SEK 204M in January 2019. Bure acquired shares with a net value of SEK 74M.

4) Bure divested 75,000 shares for SEK 3M in connection with the exercise of options.

5) Bure acquired 2.45 million shares for SEK 120M in June 2019.

6) Bure divested 2 million shares in Mycronic for SEK 262M which generated an exit result of SEK 237M in February 2019.

7) Ovzon conducted a rights issue of SEK 748M in January 2019. Bure subscribed for shares valued at SEK 113M.

8) Bure divested 2 million shares in Vitrolife for SEK 384M which generated an exit result of SEK 370M in March 2019.

9) Bure divested 85,979 shares in connection with the exercise of options.

10) Atle Investment Managements (formerly Bure Financial Services) net asset value increased SEK 7M to SEK 95M following an additional investment in Atle Investment Services and Teknik Innovation Norden Fonder. The company's consolidated balance sheet includes valuations of associated companies Alcur Fonder, Fondbolaget Fondita, Idevall & Partners Holding and Teknik Innovation Norden Fonder in Atle amounting to SEK 79.0M according to the equity method.

11) Bure Growth's net asset value increased SEK 4M to SEK 494M following the acquisition of shares in Yubico. The company's consolidated balance sheet includes valuations of associated companies BioLamina, Life Genomics and My Driving Academy in Bure Growth amounting to SEK 52.9M according to the equity method.

12) Refers to net assets.

13) Refers to the book value of equity and interest-bearing receivables.

14) 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.

Net asset value at 30 June 2019

Net asset value was SEK 10,591M, an increase of SEK 1,136M since the beginning of the year.

Net asset value per share amounted to SEK 153,5 which corresponds to an increase of 12.0 per cent since the beginning of the year.

Net asset value per share increased by 13.5 per cent adjusted for paid dividends.

Listed portfolio companies, 6 months 2019

The value of listed portfolio companies increased during the period by SEK 819M to SEK 8,751M. Of this value increase, value changes and exit gains accounted for SEK 1,161M, acquisitions for SEK 308M, and disposals for SEK 651M.

Listed portfolio companies' value change and exit gains, 6 months 2019

The value of the holding in Vitrolife increased by SEK 403M to SEK 3,724M at the end of the period. During the period, 2.0 million shares were divested for SEK 384M with an exit gain of SEK 370M. The share price increased 23.1 per cent during the period.

The value of the holding in Xvivo Perfusion increased by SEK 269M to SEK 835M at the end of the period. During the period, 85,979 shares were divested in connection with the exercise of options. The share price increased by 50.5 per cent during the period.

The value of the holding in MedCap increased by SEK 92M to SEK 337M. During the period, 75,000 share were divested for SEK 3M in connection with the exercise of options. The share price increased by 41.1 per cent during the period. The value of the holding in Ovzon increased by SEK 201M to SEK 276M. During the period, shares in Ovzon were acquired for SEK 113M. The share price fell by 22.5 per cent during the period.

The value of the holding in Mentice was SEK 172M at the end of the period. Bure acquired shares in Mentice for SEK 120M in connection with the company's stock market listing. The company's share price increased 43.7 per cent following its listing in June 2019.

The value of the holding in Cavotec increased by SEK 62M to SEK 326M. During the period, net acquisitions of shares in Cavotec amounted to SEK 74M. The share price fell by 3.8 per cent during the period.

The value of the holding in Mycronic decreased by SEK 381M to SEK 3,081M at the end of the period. During the quarter, 2.0 million shares were divested for SEK 262M with an exit gain of SEK 237M. The share price fell by 4.5 per cent during the period.

Listed portfolio companies accounted for 82.6 per cent of net asset value compared to 83.9 per cent at the end of 2018.

Unlisted portfolio companies, 6 months 2019

The value of unlisted portfolio companies increased by SEK 16M to SEK 907M compared to SEK 892M at the end of 2018.

Atle Investment Management's net asset value increased by SEK 7M to SEK 95M following additional investments in Atle Investment Services and Teknik Innovation Norden Fonder. Atle Investment Management received sharedividends of SEK 6M from Fondita relating to the second half of 2018 as well as SEK 3M in dividends from Alcur Fonder.

Bure Growth's net asset value increased by SEK 4M to SEK 494M following acquisitions of shares in Yubico.

Investment AB Bure's net asset value increased by SEK 5M to SEK 183M.

Mercuri's book value of SEK 135M was unchanged from the beginning of the year.

Unlisted portfolio companies accounted for 8.6 per cent of net asset value compared to 9.4 per cent at the end of 2018.

Treasury, 6 months 2019

The value of assets in Treasury increased by SEK 302M to SEK 932M. During the period, Bure divested financial assets of SEK 650M and acquired financial assets of SEK 320M. Bure received dividends from listed portfolio and associated companies amounting to SEK 109M and paid out dividends totalling SEK 138M. Other changes of SEK 1M resulted from guarantee commissions, value changes of short-term investments and administrative costs.

Assets in Treasury amounted to 8.8 per cent of net asset value compared to 6.7 per cent at the end of 2018.

The Bure share

The total number of shares in Bure is 68,971,921. The 2019 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 2019, no shares had been repurchased.

Bure's share price on 30 June 2019 was SEK 158.4, which corresponds to a total return of 47.9 per cent since the beginning of the year.

	15 Aug 2019	30 Jun 2019	31 Dec 2018	31 Dec 2017
Share price, SEK	164.4	158.4	108.4	98.3
Dividend per share, SEK	2.0	2.0	2.0	2.0
Total return since year-end1)	51.7%	47.9%	12.7%	-3.3%
Net asset value per share, SEK	156.2	153.5	137.1	111.7
Development of NAV per share	14.0%	12.0%	22.7%	9.8%
SIX Return Index	13.8%	20.7%	-4.4%	9.5%

1) Including dividends of SEK 2.00 per share for 2019, 2018 and 2017.

Increase in Bure's net asset value and market price per share

Portfolio companies January – June 2019 and 2018

Listed, SEK M		2019	2018
	Net sales	1,061	1,005
	EBIT	42	-56
	EBIT margin	3.9%	-5.6%
	Holding	27.1%	25.4%
	Net sales	386	356
	EBIT	50	24
	EBIT margin	12.8%	6.8%
	Holding	22.3%	23.0%
	Net sales	n/a	n/a
	EBIT	n/a	n/a
	EBIT margin	n/a	n/a
	Holding	10.1%	–
	Net sales	2,225	1,633
	EBIT	723	434
	EBIT margin	32.5%	26.6%
	Holding	27.9%	29.9%
	Net sales	n/a	103
	EBIT	n/a	-24
	EBIT margin	n/a	-22.8%
	Holding	14.3%	12.0%
	Net sales	693	547
	EBIT	226	188
	EBIT margin	32.7%	34.4%
	Holding	19.0%	20.8%
	Net sales	104	89
	EBIT	0	7
	EBIT margin	0.1%	8.1%
	Holding	15.8%	16.3%
Unlisted, SEK M1)		2019	2018
	Net sales	13	6
	EBIT	6	5
	EBIT margin	46.0%	92.2%
	Holding	100.0%	100.0%
	Net sales	-2	238
	EBIT	-2	238
	EBIT margin	n/m	100.0%
	Holding	100.0%	100.0%
	Net sales	11	4
	EBIT	4	-6
	EBIT margin	32.6%	n/m
	Holding	100.0%	100.0%
	Net sales	170	221
	EBIT	4.0	14
	EBIT margin	2.3%	6.5%
	Holding	99.1%	99.1%

1) See page 9 and 10 for additional information.

Listed portfolio companies

Share of Bure's net asset value 3.1%

www.cavotec.com

Cavotec is a leading engineering group that designs and manufactures automated connection and electrification systems for ports, airports and industrial applications worldwide.

Key figures EUR m	Q2 2019	Q2 2018	6 mth 2019	6 mth 2018	2018
Net sales	51	46	100	99	197
Operating expenses	-49	-54	-96	-105	-211
EBIT	2.5	-7.8	3.9	-5.6	-13.9
EBIT margin	4.8%	-16.8%	3.9%	-5.6%	-7.1%
Net financial items	-0.2	1.4	-0.7	0.5	-1.4
Profit/loss before tax	2.3	-6.3	3.2	-5.0	-15.3
Income tax expense	-0.9	-0.8	-1.0	-1.2	-3.1
Profit/loss for the period	1.4	-7.1	2.2	-6.3	-18.5
Net loan debt (-)/receivable (+)			-19	-33	-32
Total assets			227	217	230
Equity			102	95	100
Cash flow from operating activities			-2	-5	1
Average no. of employees			803	938	896

Facts at 30 June 2019	Largest shareholders
Book value: SEK 326M	Bure Equity	27.1%
Acquisition date: 2014	Fjärde AP-fonden	9.9%
	Others	63.0%
Board member from Bure:
Patrik Tigerschiöld, chairman

The quarter in brief

• Order intake stood at EUR 46M, a 26.7 per cent increase on the same period last year.
• Net sales during the second quarter 2019 increased by 11.0 per cent to EUR 51M (46).
• Operating profit was EUR 2.5M (-7.8) of which nonrecurring restructuring costs amounted to EUR 1.2M.
• The share price increased 9.4 per cent during the second quarter 2019.

www.medcap.se

MedCap owns and develops companies with significant expansion potential in the Life Science sector.

Key figures SEK M	Q2 2019	Q2 2018	6 mth 2019	6 mth 2018	2018
Net sales	186	173	386	356	709
Operating expenses	-164	-164	-337	-331	-665
EBIT	22.3	8.7	49.6	24.3	44.4
EBIT margin	12.0%	5.0%	12.8%	6.8%	6.3%
Net financial items	-4.3	-1.9	-7.9	-3.9	-4.2
Profit/loss before tax	18.0	6.8	41.7	20.4	40.2
Income tax expense	-4.1	-2.0	-8.9	-4.6	-13.8
Profit/loss for the period continuing operations	13.8	4.8	32.8	15.8	26.4
Profit/loss for the period discontinued operations	0.5	-4.5	-1.1	-6.9	-23.8
Profit/loss for the period	14.3	0.6	31.7	8.8	2.7
Net loan debt (-)/receivable (+)			-284	-151	145
Total assets			794	655	669
Equity			313	284	274
Cash flow from operating activities				30	90
Average no. of employees			261	302	270

Facts at 30 June 2019	Largest shareholders
Book value: SEK 337M	Bengt Julander	23.0%
Acquisition date: 2012 Board member from Bure: Henrik Blomquist, board member	Bure Equity	22.3%
	Karl Tobieson	4.9%
	Others	49.8%

• Net sales increased by 7.7 per cent to SEK 186M compared to SEK 173M in the same period last year.
• Operating profit increased to SEK 22.3M (8.7) corresponding to an operating margin of 12.0 per cent (5.0).
• The share price increased by 39.7 per cent during the second quarter 2019.

net asset value 1.6%

Mentice develops and sells turn-key simulation solutions targeting the fast-growing market for endovascular procedures.

Key figures1) SEK M	Q2 2019	Q2 2018	6 mth 2019	6 mth 2018	2018
Net sales	n/a	n/a	n/a	n/a	166
Operating expenses	n/a	n/a	n/a	n/a	-150
EBIT	n/a	n/a	n/a	n/a	16.1
EBIT margin	n/a	n/a	n/a	n/a	9.7%
Net financial items	n/a	n/a	n/a	n/a	-2.3
Profit/loss before tax	n/a	n/a	n/a	n/a	13.8
Income tax expense	n/a	n/a	n/a	n/a	6.3
Profit/loss for the period	n/a	n/a	n/a	n/a	20.1
Net loan debt (-)/receivable (+)			n/a	n/a	18
Total assets			n/a	n/a	131
Equity			n/a	n/a	67
Cash flow from operating activities		n/a	n/a	16
Average no. of employees			n/a	n/a	69

Facts at 30 June 2019	Largest shareholders
Book value: SEK 172M	Karin Howell-Bidermann	36.9%
Acquisition date: 2019 Board member from Bure: Gösta Johannesson, board member-elect	Bure Equity	10.1%
	Priveq Investment Fund	4.9%
	Others	48.1%

1) Mentice will publish the interim report on 29 August 2019.

The quarter in brief

• Mentice listed on the Nasdaq First North Premier on 18 June 2019.
• The share price increased 43.7 per cent since flotation.

net asset value 29.1% Share of Bure's

Share of Bure's

www.mentice.com www.mycronic.com

Mycronic creates world-leading production equipment for electronics and display manufacturing.

Key figures SEK M	Q2 2019	Q2 2018	6 mth 2019	6 mth 2018	2018
Net sales	1,120	882	2,225	1,633	3,781
Operating expenses	-803	-645	-1,502	-1,199	-2,761
EBIT	317.3	237.6	723.0		433.7 1,020.0
EBIT margin	28.3%	26.9%	32.5%	26.6%	27.0%
Net financial items	-0.2	-4.5	-1.6	-6.1	-8.9
Profit/loss before tax	317.0	233.1	721.4	427.6	1,011.1
Income tax expense	-72.1	-59.4	-163.6	-112.5	-218.6
Profit/loss for the period	244.9	173.7	557.8	315.1	792.5
Net loan debt (-)/receivable (+)			539	152	827
Total assets			4,471	3,741	4,199
Equity			2,692	1,900	2,379
Cash flow from operating activities			224	-38	702
Average no. of employees			1,320	1,071	1,175

Facts at 30 June 2019	Largest shareholders
Book value: SEK 3,081M	Bure Equity	27.9%
Acquisition date: 2010 via Skanditek	Fjärde AP-fonden	9.1%
	SEB fonder	6.3%
Board member from Bure: Patrik Tigerschiöld, chairman	Others	56.7%

• Order intake during the second quarter 2019 increased by 4 per cent to SEK 901M (870).
• Order intake in the Assembly Solutions business unit increased to SEK 685M (554). Net sales in Pattern Generators were SEK 216M (317). Combined order book value at the end of the period was SEK 1,301M (1,935).
• Net sales during the second quarter 2019 were SEK 1,120M (882) corresponding to an increase of 27 per cent.
• Operating profit amounted to SEK 317.3M (237.6), which corresponds to an operating margin of 28.3 per cent (26.9).
• The share price fell by 14.9 per cent during the second quarter 2019.

Share of Bure's net asset value 2.6%

www.ovzon.com

Ovzon offers a revolutionary mobile broadband service via satellite that combines high data speeds with high degrees of mobility.

Key figures1) SEK M	Q2 2019	Q2 2018	6 mth 2019	6 mth 2018	2018
Net sales	n/a	57	n/a	103	208
Operating expenses	n/a	-69	n/a	-127	-225
EBIT	n/a	-12.0	n/a	-23.6	-17.5
EBIT margin	n/a	-21.0%		n/a -22.8%	-8.4%
Net financial items	n/a	-3.1	n/a	-6.4	-7.1
Profit/loss before tax	n/a	-15.1	n/a	-30.0	-24.6
Income tax expense	n/a	0.0	n/a	0.0	-1.0
Profit/loss for the period	n/a	-15.1	n/a	-30.0	-25.6
Net loan debt (-)/receivable (+)			n/a	26	40
Total assets			n/a	165	131
Equity			n/a	67	73
Cash flow from operating activities		n/a	-45	-60
Average no. of employees			n/a	15	19

Facts at 30 June 2019	Largest shareholders
Book value: SEK 276M	Investment AB Öresund	14.9%
Acquisition date: 2018	Bure Equity	14.3%
	AFA Försäkring	11.6%
Board member from Bure: Patrik Tigerschiöld, board member	Others	59.2%

1) Ovzon will publish the interim report on 23 August 2019.

The quarter in brief

• Magnus René was appointed CEO of Ovzon in May 2019. Per Wahlberg, founder and former CEO, will work with the company as Executive Vice President, Business Development.
• The share price increased by 56.7 per cent during the second quarter 2019.
• After the end of the reporting period, Ovzon signed a credit financing agreement for the funding of the company's first satellite, Ovzon 3.

www.vitrolife.com

Vitrolife is an international medtech group that develops, produces, and markets fertility treatment products.

Key figures SEK M	Q2 2019	Q2 2018	6 mth 2019	6 mth 2018	2018
Net sales	381	283	693	547	1 151
Operating expenses	-258	-185	-466	-359	-757
EBIT	122.9	98.5	226.5	188.1	393.9
EBIT margin	32.3%	34.8%	32.7%	34.4%	34.2%
Net financial items	-0.7	1.9	6.2	6.7	4.7
Profit/loss before tax	122.2	100.3	232.7	194.9	398.6
Income tax expense	-27.2	-20.8	-52.1	-43.5	-87.9
Profit/loss for the period	95.0	79.6	180.6	151.4	310.7
Net loan debt (-)/receivable (+)		367	421	491
Total assets			1 953	1 566	1 697
Equity			1 603	1 345	1 496
Cash flow from operating activities		134	147	349
Average no. of employees			388	358	363

Facts at 30 June 2019	Largest shareholders
Book value: SEK 3,724M	William Demant Invest A/S 24.7%
Acquisition date: 2010 via Skanditek	Bure Equity	19.0%
	Capital Group	4.6%
Board member from Bure: Henrik Blomquist, board member	Others	51.7%

• Net sales during the second quarter 2019 increased by 34 per cent to SEK 381M (283). In local currencies, net sales increased 29 per cent, of which 18 per cent was organic growth.
• Operating profit before depreciation (EBITDA) amounted to SEK 146M (116), corresponding to a margin of 38 per cent (41). Currency changes affected operating profit before depreciation (EBITDA) positively by SEK 7M.
• Operating profit amounted to SEK 122.9M (98.5), corresponding to en operating margin of 32.3 per cent (34.8).
• Acquisitions and co-operation agreements regarding technology for assessing embryos using artificial intelligence. The initial cost of this amounted to SEK 56M.
• Purchase of operations from Parallabs Ltd. The initial cost of this amounted to SEK 24M.
• The share price fell 14.5 per cent during the second quarter 2019.

Share of Bure's net asset value 7.9%

www.xvivoperfusion.com

Xvivo Perfusion is an international medtech company that develops solutions for organ, tissue and cells during transplantation procedures.

Key figures SEK M	Q2 2019	Q2 2018	6 mth 2019	6 mth 2018	2018
Net sales	56	46	104	89	188
Operating expenses	-55	-42	-104	-81	-174
EBIT	1.9	4.0	0.1	7.1	14.0
EBIT margin	3.4%	8.7%	0.1%	8.1%	7.5%
Net financial items	0.5	1.3	2.0	3.1	3.5
Profit/loss before tax	2.5	5.3	2.0	10.2	17.5
Income tax expense	-0.2	-1.4	-0.1	-2.5	-4.8
Profit/loss for the period	2.2	3.9	1.9	7.7	12.7
Net loan debt (-)/receivable (+)		191	209	187
Total assets			644	577	587
Equity			574	535	540
Cash flow from operating activities		21	22	24
Average no. of employees			45	35	37

Facts at 30 June 2019	Largest shareholders
Book value: SEK 835M	Bure Equity	15.8%
Acquisition date: Lex Asea distribution from Vitrolife in 2012	Swedbank Robur Fonder	6.1%
	Eccenovo AB	5.6%
Board member from Bure: Gösta Johannesson, chairman	Others	72.5%

• Net sales in the second quarter 2019 increased by 22 per cent to SEK 56M (46). This increase amounts to 15 per cent in local currencies.
• Operating profit amounted to SEK 1.9M (4.0), corresponding to an operating margin of 3.4 per cent (8.7). Operating profit adjusted for costs of a sharebased bonus programme for employees outside Sweden amounted to SEK 5.9M (6.8).
• XVIVO received PMA approval (Premarket Approval) from the FDA for its XPS™ and STEEN Solution™ products for the US market. Good results from a heart preservation study in six patients at Lund University Hospital presented to the International Society for Heart and Lung Transplantation (ISHLT). XVIVO's patent for a heart preservation fluid approved in the US and Europe. The Swedish Medical Products Agency gave the greenlight to clinical trials in Sweden of the company's new heart preservation products.
• The share price increased by 21.5 per cent during the second quarter 2019.

Unlisted portfolio companies

Share of Bure's

www.atle.se www.bure.se

Atle Investment Management is a wholly owned subsidiary that invests in financial operations and assets. The company owns 32.5 per cent of Alcur Fonder AB, 100 per cent of Atle Investment Services, 20.1 per cent of Fondbolaget Fondita and 37.4 per cent of Teknik Innovation Norden Fonder.

Atle Investment Management Group

Key figures SEK M	Q2 2019	Q2 2018	6 mth 2019	6 mth 2018	2018
Revenue/value adjustments	6.9	2.7	12.6	5.8	14.3
Operating expenses	-4.2	-0.2	-6.8	-0.5	-4.7
EBIT	2.7	2.5	5.8	5.4	9.7
EBIT margin	39.0%	92.7%	46.0%	92.2%	67.6%
Net financial items	0.0	0.0	0.0	0.0	0.0
Profit/loss before tax	2.7	2.5	5.8	5.4	9.7
Income tax expense	0.0	0.0	0.0	0.0	-0.1
Profit/loss for the period	2.7	2.5	5.8	5.4	9.6
Net loan debt (-)/receivable (+)			30	141	133
Total assets			101	195	201
Equity			101	195	199
Cash flow from operating activities			9	6	12
Average no. of employees			4	0	4

Facts at 30 June 2019	Largest shareholders
Book value: SEK 95M	Bure Equity	100.0%
Acquisition date: Established 2014
Board member from Bure: Patrik Tigerschiöld, chairman Henrik Blomquist, board member Max Jonson, board member

The quarter in brief

• Revenue/value adjustments in the second quarter 2019 of SEK 6.9M relate to participations from Alcur Fonder, Fondbolaget Fondita and Idevall & Partners Holding and revenue from the Atle Investment Services subsidiary.
• Atle Investment Management made a conditional shareholder contribution to Teknik Innovation Norden Fonder of SEK 2.5M during the quarter.

Bure Growth is a wholly owned company that invests in development companies. The company owns 28.9 per cent in BioLamina, 23.7 per cent in Life Genomics, 32.0 per cent in My Driving Academy Sweden and 18.8 per cent in Yubico.

Bure Growth Group

Key figures SEK M	Q2 2019	Q2 2018	6 mth 2019	6 mth 2018	2018
Revenue/value adjustments	0.1	211.9	-2.2	237.5	235.4
Operating expenses	0.0	0.0	0.0	0.0	0.0
EBIT	0.1	211.9	-2.2	237.5	235.4
EBIT margin	100.0% 100.0%			n/m 100.0% 100.0%
Net financial items	0.0	0.0	0.0	0.0	0.0
Profit/loss before tax	0.1	211.9	-2.2	237.5	235.4
Income tax expense	0.0	0.0	0.0	0.0	0.0
Profit/loss for the period	0.1	211.9	-0.2	237.5	235.4
Net loan debt (-)/receivable (+)			-222	-203	-218
Total assets			557	466	482
Equity			262	263	264
Cash flow from operating activities			0	0	0
Average no. of employees			0	0	0

Of which, SEK 294,9M is liable to the Parent Company as at 30 June 2019.

Facts at 30 June 2019	Largest shareholders
Book value: SEK 494M	Bure Equity	100.0%
Acquisition date: Established 2015
Board member from Bure: Henrik Blomquist, chairman Max Jonson, board member

• Revenue/value adjustments in the second quarter 2019 of SEK 0.1M relate to participations from BioLamina, Life Genomics and My Driving Academy.
• Bure Growth signed an agreement for the acquisition of 24.4 per cent of shares in ScandiNova Systems. Bure Growth acquired shares in ScandiNova Systems after the end of the reporting period.

Share of Bure's net asset value 1.7%

www.bure.se

Investment AB Bure is a wholly owned subsidiary that owns and manages the lease of locomotives. The business was established in January 2013.

Key figures SEK M	Q2 2019	Q2 2018	6 mth 2019	6 mth 2018	2018
Net sales	5.7	-0.1	11.4	3.7	16.2
Operating expenses	-5.4	-3.8	-7.7	-10.1	-17.5
EBIT	0.3	-3.9	3.7	-6.5	-1.3
EBIT margin	4.4%	n/m	32.6%	n/m	-8.1%
Net financial items	-0.9	-0.7	-1.7	-1.4	-2.9
Profit/loss before tax	-0.6	-4.6	2.0	-7.9	-4.2
Income tax expense	0.0	0.0	0.0	0.0	0.0
Profit/loss for the period	-0.6	-4.6	2.0	-7.9	-4.2
Net loan debt (-)/receivable (+)			-94	-107	-103
Total assets			189	177	183
Equity			65	60	63
Cash flow from operating activities		12	-3	1
Average no. of employees			0	0	0

1) Of which, SEK 113.9M is liable to the Parent Company as at 30 June 2019.

Facts at 30 June 2019	Largest shareholders
Book value: SEK 183M1)	Bure Equity	100.0%
Acquisition date: Established 2012
Board member from Bure: Henrik Blomquist, chairman Philip Nyblaeus, board member
1) Refers to net assets in Investment AB Bure.

The quarter in brief

• Net sales during the second quarter 2019 was SEK 5.7M (-0.1).
• Operating profit was SEK 0.3M (-3.9) of which SEK 3.5M constituted depreciation on the booked value of locomotives.

www.mercuri.se

Mercuri International is Europe's leading sales and management training consultancy and is present worldwide.

Key figures SEK M	Q2 2019	Q2 2018	6 mth 2019	6 mth 2018	2018
Net sales	88	118	170	221	402
Operating expenses	-84	-105	-166	-207	-376
EBIT	4.0	13.0	4.0	14.4	26.5
EBIT margin	4.5%	11.0%	2.3%	6.5%	6.6%
Net financial items	0.6	-0.4	0.2	0.7	-1.4
Profit/loss before tax	4.6	12.6	4.2	15.1	25.1
Income tax expense	-0.3	-0.5	-0.7	-0.8	-4.1
Profit/loss for the period	4.3	12.1	3.5	14.3	21.0
Net loan debt (-)/receivable (+)			-39	-15	-2
Total assets			333	338	315
Equity			164	153	156
Cash flow from operating activities			-7	4	20
Average no. of employees			202	252	225

1) Of which, SEK 29.8M is liable to the Parent Company as at 31 March 2019.

Facts at 30 June 2019	Largest shareholders
Book value: SEK 135M1)	Bure Equity	99.1%
Acquisition date: 1998	Others	0.9%
Board member from Bure: Henrik Blomquist, chairman

1) Relates to book value of equity and interest-bearing receivables.

• Net sales during the second quarter 2019 were SEK 88M (118). Celemi, the subsidiary that was divested in May 2018, contributed SEK 13M to sales during the second quarter of 2018.
• Operating profit was SEK 4.0M (13.0) and margins amounted to 4.5 per cent (11.0).
• The increase in net debt is attributable to the introduction of IFRS 16.

Interim report January – June 2019

	Bure is an investment company, which means that the Group's composition of subsidi aries and associated companies varies in line with its acquisitions and divestitures. Since this makes the Group's consolidated statements difficult to analyse, the development and financial position of the companies should also be analysed on an individual basis. More detailed information on portfolio companies are presented on pages 5–10.
GROUP
Results for the second quarter of 2019	Consolidated operating income from operating and investment activities was SEK -540M (764).
	Subsidiaries' net sales amounted to SEK 97M (118).
	Dividends amounted to SEK 99M (90), of which Mycronic accounted for SEK 82M and Vitrolife SEK 17M.
	Exit gains/losses were SEK 0M (24).
	Capital gains/losses from short-term investments were SEK 0M (-17).
	Fair value changes amounted to SEK -741M (544), of which listed portfolio companies accounted for SEK -745M; Cavotec SEK 28M, MedCap SEK 96M, Mentice SEK 52M, Mycronic SEK -538M, Ovzon SEK 100M, Vitrolife SEK -631M and Xvivo Perfusion SEK 148M; and a value change in short-term investments of SEK 4M.
	Shares in profits of associated companies amounted to SEK 4M (3).
	Consolidated operating profit for the period was SEK -646M (638).
	Net financial items totalled SEK 0M (0).
	Consolidated profit after financial items was SEK -646M (638).
	Profit after tax was SEK -646M (637).
	Other comprehensive income included translation differences of SEK 2M (5).
Results for January – June 2019	Consolidated operating income from operating and investment activities was SEK 1,472M (1,377).
	Subsidiaries' net sales amounted to SEK 185M (221).
	Dividends amounted to SEK 99M (90), of which Mycronic accounted for SEK 82M and Vitrolife SEK 17M.
	Exit gains totalled SEK 606M (45), of which SEK 237M derived from the divestiture of shares in Mycronic and SEK 370M from the divestiture of shares in Vitrolife.
	Capital losses from short-term investments were SEK -43M (-40).
	Fair value changes amounted to SEK 615M (1,048), of which listed portfolio companies accounted for SEK 555M; Cavotec SEK -10M, MedCap SEK 94M, Mentice SEK 52M, Mycronic SEK -356M, Ovzon 88M, Vitrolife SEK 417M and Xvivo Perfusion SEK 270M; and a value change in short-term investments of SEK 60M.
	Shares in profit/loss of associated companies amounted to SEK 7M (5).
	Consolidated operating profit for the period was SEK 1,269M (1,131).
	Net financial items totalled SEK 6M (1).
	Consolidated profit after financial items was SEK 1,274M (1,132).
	Profit after tax was SEK 1,273M (1,132).
	Other comprehensive income included translation differences of SEK 6M (16).
Financial position	Consolidated equity at the end of the period amounted to SEK 10,604M (8,797) and the equity/assets ratio stood at 98 per cent (98). At the end of the period, the Group reported a net loan receivable of SEK 816M (477), which consisted of interest-bearing assets of SEK 871M (506) and of interest-bearing liabilities of SEK 55M (29). Consolidated equity per share at the end of the period amounted to SEK 153.74, compared to SEK 136.48 per share on 31 December 2018.

PARENT COMPANY

Results for the second quarter of 2019	Profit after tax was SEK -549M (415). Dividends amounted to SEK 204M (90), of which Atle Investment Management accounted for SEK 105M, Mycronic SEK 82M and Vitrolife SEK 17M. Exit gains amounted to SEK 0M (24). Capital gains/losses from short-term investments were SEK 0M (-17). Fair value changes amounted to SEK -741M (332), of which listed portfolio companies accounted for SEK -745M; Cavotec SEK 28M, MedCap SEK 96M, Mentice SEK 52M, Mycronic SEK -538M, Ovzon SEK 100M, Vitrolife SEK -631M and Xvivo Perfusion SEK 148M; and a value change in short-term investments of SEK 4M.
	Administrative costs amounted to SEK 13M (16). Net financial items totalled SEK 1M (1).
Results for January – June 2019	Profit after tax was SEK 1,368M (932). Dividends amounted to SEK 204M (90), of which Atle Investment Management accounted for SEK 105M, Mycronic SEK 82M and Vitrolife SEK 17M.
	Exit gains were SEK 606M (45), of which SEK 237M derived from the divestiture of shares in Mycronic and SEK 370M from the divestiture of shares in Vitrolife.
	Capital losses from short-term investments were SEK -43M (-40).
	Fair value changes amounted to SEK 615M (860), of which listed portfolio companies accounted for SEK 555M; Cavotec accounted for SEK -10M, MedCap SEK 94M, Mentice SEK 52M, Mycronic SEK -356M, Ovzon SEK 88M, Vitrolife SEK 417M and Xvivo Perfusion SEK 270M; and a value change in short-term investments of SEK 60M.
	Administrative costs amounted to SEK 22M (26). Net financial items totalled SEK 7M (2).
Financial position	Equity in the Parent Company at the end of the period amounted to SEK 10,180M (8,297), and the equity/assets ratio was 100 per cent (100). At the end of the period, the Parent Company had a reported net loan receivables of SEK 844M (455), which consisted of interest-bearing assets of SEK 847M (455) and interest-bearing liabilities of SEK 2M (0). External interest-bearing receivables amounted to SEK 703M (289). Receivables from subsidiaries totalled SEK 439M (369).
Group acquisitions and divestments	Net acquisition of 5.7 million shares in Cavotec for SEK 74M, increasing its holding to 27.1 per cent. Bure acquired an additional 3.8 million shares in Ovzon for SEK 113M, increasing its holding to 14.3 per cent.
	Bure Growth acquired additional shares in Yubico for SEK 4M.
	Bure acquired 2.45 million shares in Mentice for SEK 120M in relation to the company's stock market launch, which equates with a holding of 10.1 per cent.
	Bure Growth signed an agreement for the acquisition of 24.4 per cent of shares in ScandiNova Systems.
	Bure divested 2.0 million shares in Mycronic for SEK 262M, which generated an exit result of SEK 237M.
	Bure divested 2.0 million shares in Vitrolife for SEK 384M, which generated an exit result of SEK 370M.
	Bure divested 75,000 shares in MedCap for SEK 3M in connection with an exercise of options, which generated an exit result of SEK 2M.
	Bure divested 85,979 shares in Xvivo Perfusion in connection with an exercise of options, which generated an exit result of SEK -2M.
Group loss carryforwards	At the beginning of the year, the Bure Group had loss carry forwards of SEK 953M, of which SEK 642M related to the Parent Company. Losses attributable to Sweden amounted to SEK 878M, and are perpetual. The deferred tax asset based on loss carry forwards in the Group has been valued at SEK 7M (8).

Currency exposure	The majority of Group revenue is denominated in SEK and EUR. Underlying costs are generally generated in the same currency as revenues, which limits transaction exposure. Since the Group has investments outside Sweden via its subsidiaries, the consolidated balance sheets and income statements are subject to translation differences arising from the translation of foreign subsidiaries' accounts. Listed portfolio companies that generate a substantial proportion of their sales outside Sweden are subject to currency exposure primarily in EUR and USD.
Related party transactions	No related party transactions were conducted during the period.
Ownership structure	Bure's largest shareholders at 30 June 2019 were Patrik Tigerschiöld with 11.2 per cent, the Sweden.	Björkman family including foundations with 9.0 per cent and Nordea Investment Funds with 8.5 per cent. The number of shareholders at 30 June 2019 was 29,385 according to Euroclear
Subsequent events	Bure Growth acquired shares in ScandiNova Systems.
Significant risks and uncertainties	In view of rapid change on the financial markets, special emphasis is placed on monitoring the effects of such changes on Bure's investments and their valuations. Bure has a number of basic principles regarding the management of risk. Bure's financial policy states that the Parent Company shall be essentially debt-free. Furthermore, each portfolio company shall be financially independent from the Parent Company, which means that the Parent Company is not financially liable for obligations of portfolio companies, and that portfolio companies are responsible for their own financing arrangements. Financing of respective portfolio com panies shall be well adapted to each company's specific circumstances, where overall risk is managed through a balanced spread between operational and financial risk. Bure's 2018 annual report provides a detailed description of the Group's risk exposure and risk manage ment in the administration report and in Note 21. Bure's assessment is that no significant risks have arisen other than those described in the annual report and in this interim report. This report has not been reviewed by the company's auditors.
	Stockholm 16 August 2019 Bure Equity AB (publ)
Patrik Tigerschiöld (Chairman)	Carl Björkman	Carsten Browall
Bengt Engström	Charlotta Falvin	Sarah McPhee
Henrik Blomquist (CEO)
Financial calendar	Interim report January – September 2019 Year-end report 2019	7 November 2019 20 February 2019
For additional information contact	Henrik Blomquist, CEO Max Jonson, CFO	+46 (0)8-614 00 20 +46 (0)8-614 00 20

Statement of financial position, Group

SEK M	Q2 2019	Q2 2018	6 mth 2019	6 mth 2018	Full year 2018
Operating income
Net sales	96.5	118.1	185.4	221.3	415.5
Other operating income	0.4	1.0	2.9	7.1	10.7
Dividends:
Portfolio companies	99.4	90.0	99.4	90.0	93.5
Other companies	–	–	–	–	–
Short-term investments	–	–	–	–	–
Exit gains/losses	–	23.7	605.6	45.1	45.4
Capital gains/losses on short-term investments	–	-16.6	-43.3	-40.3	-49.3
Fair value:
Portfolio companies	-744.8	532.2	555.3	1,026.7	1,737.6
Other companies	0.0	0.0	0.0	0.0	–
Short-term investments	4.0	12.2	59.9	21.7	16.9
Shares in profit/loss of associates	4.2	2.9	6.9	5.3	10.7
Total operating income	-540.2	763.6	1,472.2	1,376.9	2,281.0
Operating expenses
Other external expenses	-37.0	-45.9	-70.2	-90.8	-172.2
Personnel costs	-61.8	-76.7	-119.4	-147.3	-266.8
Depreciation and impairment of property, plant and equipment	-6.2	-3.0	-12.2	-6.2	-10.5
Depreciation and impairment of Intangible assets	-0.4	–	-0.7	–	-1.3
Other operating expenses	-0.6	-0.3	-1.0	-1.3	-4.0
Total operating expenses	-106.0	-125.9	-203.6	-245.6	-454.8
Operating profit/loss	-646.2	637.6	1,268.6	1,131.3	1,826.2
Interest income and similar profit/loss items	4.7	0.0	10.9	3.4	1.5
Interest expenses and similar profit/loss items	-4.2	0.0	-5.4	-2.3	-3.0
Profit/loss after financial items	-645.7	637.6	1,274.1	1,132.5	1,824.8
Tax on income for the period	-0.3	-0.5	-0.7	-0.9	-4.2
Income for the period	-646.0	637.1	1,273.4	1,131.6	1,820.6
Other comprehensive income
Items that can be subsequently re-entered onto the income statement
Translation differences	1.5	4.7	5.7	15.9	16.6
Other comprehensive income for the period, after tax	1.5	4.7	5.7	15.9	16.6
Total income for the period	-644.5	641.8	1,279.1	1,147.5	1,837.2
Profit/loss attributable to non-controlling interests	0.0	0.1	0.0	0.1	0.2
Profit/loss attributable to owners of the Parent Company	-646.0	637.0	1,273.4	1,131.5	1,820.4
Comprehensive income attributable to non-controlling interests	0.0	0.1	0.0	0.1	0.2
Comprehensive income attributable to owners of the Parent Company	-644.5	641.7	1,279.1	1,147.4	1,837.0
Average number of shares outstanding, thousands1)	68,972	69,280	68,972	69,306	69,245
Attributable to owners of the Parent Company, SEK	-9.37	9.20	18.46	16.33	26.29
Earnings per share, SEK1)	-9.37	9.20	18.46	16.33	26.29

1) No dilutive effect at 30 June 2019 and 2018 or at 31 December 2018.

Statement of financial position, Group

	30 June	30 June	31 Dec
SEK M	2019	2018	2018
Assets
Intangible assets	100.5	97.1	97.6
of which goodwill	98.7	94.1	95.0
Property, plant and equipment	199.6	180.5	177.5
Financial assets	9,336.1	7,777.0	8,512.5
Inventories	0.3	0.3	0.1
Current receivables	82.3	81.5	143.9
Prepaid expenses and accrued income	46.1	39.5	29.7
Short-term investments	137.3	269.6	265.0
Cash and cash equivalents	865.4	500.5	397.2
Total assets	10,767.7	8,946.0	9,623.5
of which, interest-bearing assets1)	870.6	506.0	402.7
Equity and liabilities
Equity attributable to owners of the Parent Company	10,602.2	8,795.9	9,461.1
Equity attributable to non-controlling interests	1.3	1.2	1.3
Total equity	10,603.6	8,797.1	9,462.4
Non-current liabilities	52.8	39.9	39.6
Current liabilities	111.4	108.9	121.5
Total liabilities	164.1	148.8	161.1
Total equity and liabilities	10,767.7	8,946.0	9,623.5
of which, interest-bearing liabilities1)	54.9	29.1	29.5

1) See Note 5.

Statement of changes in equity, Group

Group SEK M	Share capital	Other contributed capital	Retained earnings incl. profit for the year	Non controlling interests	Total equity
Opening balance equity at 1 January 2018	535.5	714.6	6,550.4	1.1	7,801.5
Profit/loss for the year	–	–	1,820.4	0.2	1,820.6
Other comprehensive income	–	–	16.6	–	16.6
Cash dividend	–	–	-138.7	–	-138.7
Capital buy-back	–	–	-37.7	–	-37.7
Closing balance equity at 31 December 2018	535.5	714.6	8,211.0	1.3	9,462.4
Opening balance equity at 1 January 2019	535.5	714.6	8,211.0	1.3	9,462.4
Profit/loss for the period	–	–	1,273.4	0.0	1,273.4
Other comprehensive income	–	–	5.7	–	5.7
Cash dividend	–	–	-137.9	–	-137.9
Cancellation of shares	-2.8	–	–	–	-2.8
Bonus issue	2.8	–	–	–	2.8
Closing balance equity at 30 June 2019	535.5	714.6	9,352.2	1.3	10,603.6

Statement of cash flows, Group

	Q2	Q2	6 mth	6 mth	Full year
SEK M	2019	2018	2019	2018	2018
Cash flow from operating activities before change in working capital	96.2	98.0	674.5	85.1	73.9
Cash flow from change in working capital	-14.6	0.1	20.7	-4.8	-43.2
Cash flow from operating activities	81.6	98.1	695.2	80.4	30.7
Cash flow from investing activities	-122.9	-189.2	-87.2	-156.3	-180.0
Cash flow from financing activities	-145,4	-145.2	-145.6	-143.5	-174.2
Cash flow for the period	-186.7	-236.2	462.5	-219.5	-323.5
Cash and cash equivalents at beginning of period	1,050.5	732.1	397.2	704.1	704.1
Cash flow for the period	-186.7	-236.2	462.5	-219.5	-323.5
Translation differences	1.5	4.7	5.7	15.9	16.6
Cash and cash equivalents at end of period	865.4	500.5	865.4	500.5	397.2

Income statement, Parent Company

SEK M	Q2 2019	Q2 2018	6 mth 2019	6 mth 2018	Full year 2018
OPERATING INCOME
Investing activities
Dividends:
Portfolio companies	99.4	90.0	99.4	90.0	93.5
Other companies	105.0	–	105.0	–	–
Short-term investments	–	–	–	–	–
Exit gains/losses	–	23.9	605.6	45.4	45.6
Capital gains/losses on short-term investments	–	-16.6	-43.3	-40.3	-49.3
Fair value:
Portfolio companies	-744.8	319.9	555.3	788.3	1,499.2
Other companies	0.0	0.0	0.0	50.1	50.1
Short-term investments	4.0	12.2	59.9	21.7	16.9
Other income	0.3	0.3	0.6	1.2	2.3
Total operating income	-536.0	429.8	1,382.7	956.4	1,658.3
Operating expenses
Personnel costs	-8.1	-8.0	-12.3	-12.9	-27.4
Other external expenses	-4.6	-7.6	-8.1	-12.5	-24.2
Depreciation of property, plant and equipment	-0.6	-0.2	-1.3	-0.4	-0.7
Total operating expenses	-13.3	-15.8	-21.6	-25.8	-52.3
Operating profit/loss	-549.3	414.1	1,361.1	930.5	1,606.0
Financial income and expenses
Interest income and similar profit/loss items	1.2	1.1	7.7	2.2	4.9
Interest expenses and similar profit/loss items	-0.5	0.0	-0.7	-0.4	-1.6
Total financial income and expenses	0.7	1.1	7.0	1.8	3.3
Profit/loss before tax	-548.6	415.2	1,368.1	932.3	1,609.3
Income tax expense	0.0	0.0	0.0	0.0	0.0
Profit/loss for the period1)	-548.6	415.2	1,368.1	932.3	1,609.3
Average basic number of shares, thousands2)	68,972	69,280	68,972	69,306	69,245
Basic earnings per share, SEK2)	-7.95	5.99	19.84	13.45	23.24
Average number of employees	6	7	6	7	7

1) Corresponds to comprehensive income.

2) No dilutive effect at 30 June 2019 and 2018 or at 31 December 2018.

Statement of financial position, Parent Company

	30 June	30 June	31 Dec
SEK M	2019	2018	2018
Assets
Property, plant and equipment	4.9	3.1	2.8
Financial assets	8,908.9	7,382.5	8,090.9
Current receivables	443.7	371.3	418.9
Prepaid expenses and accrued income	3.0	4.5	2.0
Short-term investments	137.3	269.6	265.0
Cash and cash equivalents	697.8	284.0	195.9
Total assets	10,195.5	8,315.1	8,975.4
of which, interest-bearing assets1)	846.8	455.3	345.1
Equity and liabilities
Equity	10,179.9	8,297.3	8,949.8
Non-current liabilities	7.7	8.1	8.5
Current liabilities	7.8	9.6	17.2
Total equity and liabilities	10,195.5	8,315.1	8,975.4
of which, interest-bearing liabilities1)	2.4	–	–
1) See Note 5.

Statement of cash flows, Parent Company

	Q2	Q2	6 mth	6 mth	Full year
SEK M	2019	2018	2019	2018	2018
Cash flow from operating activities before change in working capital	189.3	83.0	754.5	72.2	43.1
Cash flow from change in working capital	2.0	1.1	38.0	-1.0	-42.7
Cash flow from operating activities	191.3	84.2	792.4	71.1	0.4
Cash flow from investing activities	-199.2	-184.5	-155.0	-154.9	-140.6 -140.6
Cash flow from financing activities	-135.5	-144.7	-135.5	-144.7	-176.3
Cash flow for the period	-143.4	-245.0	501.9	-228.4	-316.5
Cash and cash equivalents at beginning of period	841.2	529.1	195.9	512.4	512.4
Cash flow for the period	-143.4	-245.0	501.9	-228.4	-316.5
Cash and cash equivalents at end of period	697.8	284.0	697.8	284.0	195.9

Statement of changes in equity, Parent Company

SEK M	Q2 2019	Q2 2018	6 mth 2019	6 mth 2018	Full year 2018
Opening balance, equity	10,866.5	8,034.0	8,949.8	7,516.8	7,516.8
Cancellation of shares	-2.8	–	-2.8	–	–
Bonus issue	2.8	–	2.8	–	–
Cash dividend	-137.9	-138.7	-137.9	-138.7	-138.7
Capital buy-back	–	-13.2	–	-13.2	-37.7
Profit/loss for the period	-548.6	415.2	1,368.1	932.3	1,609.3
Closing balance, equity	10,179.9	8,297.3	10,179.9	8,297.3	8,949.8

NOTE 1 – Accounting policies

Bure applies International Financial Reporting Standards (IFRS) as endorsed for application in the EU. This interim report has been prepared in compliance with IAS 34, Interim Financial Reporting, the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's recommendation RFR 2, Accounting for Legal Entities. The Group's accounting and valuation policies are described in Note 1 in the annual report 2018.

New accounting principles were introduced on 1 January 2019; the Group has applied IFRS 16 from 1 January 2019. The Group applies the simplified transition method and has not recalculated comparative figures. New issue rights are valued at amounts that correspond to leasing liabilities adjusted for prepaid and accrued leasing fees. When the standard came into effect, new rights issue assets amounted to SEK 33M and leasing liabilities of SEK 33M.

NOTE 2 – Segment reporting

Reporting by operating segment

Bure has previously accounted for segments in a similar manner and no changes have taken place in the basis for segmentation or in calculation of profit/loss in the segments compared to the previous year's annual report. Consolidation adjustments relating to positive and negative goodwill have been attributed to the respective companies. Transactions between the various segments are insignificant in scope and are equal to less than 0.1 per cent of total sales. Dormant companies or companies not classified as portfolio companies are reported under the heading "Other companies". No customer accounted for more than 10 per cent of net sales during the periods.

	Mercuri		Investment AB Bure		Atle Investment Management		Bure Growth		Other companies		Eliminations, etc.		Parent Company		Total
SEK M	Q2 2019	Q2 2018	Q2 2019	Q2 2018	Q2 2019	Q2 2018	Q2 2019	Q2 2018	Q2 2019	Q2 2018	Q2 2019	Q2 2018	Q2 2019	Q2 2018	Q2 2019	Q2 2018
Operating income
Total operating income	170	221	11	0	4	0	0	0	0	0	–	–	0	0	185	221
Profit/loss
Shares in profit/loss	–	0	–	–	9	6	-2	-1	–	–	–	–	–	–	7	5
Profit/loss by segment	4	14	5	-6	-3	0	–	–	–	–	–	–	1	1	6	9
Administrative expenses	–	–	–	–	–	–	–	–	–	–	–	–	-22	-26	-22	-26
Fair value/impairment losses	–	–	–	–	–	–	–	238	–	–	–	-50	615	860	615	1,048
Dividends	–	–	–	–	–	–	–	–	–	–	-105	–	204	90	99	90
Exit gains/losses/capital gains/losses on short term investments	–	0	–	–	–	–	–	–	–	–	–	–	562	5	562	5
Operating profit/loss	4	14	5	-6	6	5	-2	238	0	0	-105	-50	1,361	931	1,269	1,131
Net financial items															6	1
The period's income tax expense															-1	-1
Profit/loss for the period															1,273	1,132

	Mercuri		Investment AB Bure		Atle Investment Management		Bure Growth		Other companies		Eliminations, etc.		Parent Company		Total
SEK M	2019	2018	2019	2018	2019	2018	2019	2018	2019	2018	2019	2018	2019	2018	30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 2019	2018
Assets	197	202	163	148	34	141	483	400	0	0	-441		-375 10,195		8,315 10,631	8,832
Equity in associates	16	15	–	–	68	54	53	45	–	–	–	–	–	–	136	114
Total assets	212	217	163	148	102	195	536	445	0	0	-441		-375 10,195		8,315 10,768	8,946
Liabilities
Unallocated liabilities	170	186	124	116	0	0	295	203	0	0	-441	-375	16	18	164	149
Total liabilities	170	186	124	116	0	0	295	203	0	0	-441	-375	16	18	164	149
Investments	2	2	0	0	0	0	0	0	0	0	–	–	0	0	2	2
Amortisation/ depreciation	8	2	3	3	0	0	0	0	0	0	–	–	1	0	13	6

NOTE 2 – Segment reporting, cont.

IFRS 15 Revenue from Contracts with Customers is a new revenue standard that replaces existing standards and guidance on revenues. The standard does not have any material effect on the Group's net sales, either in terms of amounts or periodicity. From 1 January 2018, the Group classify revenue as: consultancy income, licensee income, and other income.

	Q2	Q2	6 mth	6 mth	Full year
SEK M	2019	2018	2019	2018	2018
Consultancy income	74	94	148	178	345
Licensing revenue	1	10	3	19	26
Other income	22	14	34	24	46
Net sales	97	118	185	221	416

Note 3 – Effects of changed estimates and assumptions

Key accounting estimates and assumptions are presented in Note 1 of the annual report for 2018. No changes have been made in these accounting estimates and assumptions that could have a material impact on this interim report.

NOTE 4 – Financial instruments

The Group's financial assets and liabilities are classified according to IFRS 13 under the following three categories.

Level 1: Listed prices on an active market for identical assets or liabilities.

Level 2: Other observable data for the asset or liability other than listed prices included in Level 1, either directly or indirectly.

Level 3: Data for the asset or liability that is not entirely based on observable market data.

Bure reports listed holdings at fair value with changes in value in the income statement (Level 1).

For investments in unlisted holdings (Level 3), in the first auditing instance Bure has made an active choice to use equity method in accordance with IAS 28 – Investments in Associates and Joint Ventures. Thus, holdings in unlisted associated companies Alcur Fonder AB, BioLamina AB, Fondbolaget Fondita Ab, Idevall & Partners Holding AB, Life Genomics AB, My Driving Academy Sweden AB and Teknik Innovation Norden Fonder AB have not been revaluated according to IFRS 9. The introduction of IFRS 9 requires other financial assets to be assessed on an ongoing basis. Atle Investment Services AB is a wholly-owned subsidiary of Atle Investment Management and is valued at book value.

In Bure's net asset value table, (see page 2), Bure has chosen to revalue all financial assets based on International Private Equity and Venture Capital Valuation (IPEV) guidelines. These guidelines outline various methods for the determination of the fair value of respective holdings. Considerable emphasis is placed on recent market transactions in the company, for example new share issues or the acquisition of existing shares. Transactions in comparable companies may also be used. Other valuation methods include discounting forecasted cash flow with relevant discount rates, and by applying valuation multiples such as EV/Sales, EV/EBITDA, EV/EBITA, EV/EBIT and PER adjusted for different market, operational and risk profiles. In general, an illiquidity discount for unlisted assets is also applied.

Valuation of unlisted assets at 30 June 2019

	Net asset	Valuation	Group book	Valuation
SEK M	value	model	value	model
Atle Investment Management	95.3		79.0
Alcur Fonder		DCF		Equity method
Fondbolaget Fondita		EV/EBIT multipel		Equity method
Idevall & Partners Holding		DCF		Equity method
Atle Investment Services		Book value		Book value
Teknik Innovation Norden Fonder		Book value		Equity method
Bure Growth	494.3		484.1
BioLamina		Latest transaction. DCF		Equity method
Life Genomics		DCF		Equity method
My Driving Academy Sweden		DCF		Equity method
Yubico		Latest transaction		Latest transaction

Note 5 – Financial position

Net loan receivable: Cash and cash equivalents, interest-bearing investments and interest-bearing current and non-current receivables minus interest-bearing current and non-current liabilities.

			Group			Parent company
SEK M	30 Jun 2019	30 Jun 2018	31 Dec 2018	31 Dec 2017	30 Jun 2019	30 Jun 2018	31 Dec 2018	31 Dec 2017
Cash and cash equivalents	865.4	500.5	397.2	704.1	697.8	284.0	195.9	512.4
+ Interest-bearing investments	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
+ Current interest-bearing receivables	2.8	0.0	2.5	0.0	146.5	165.8	146.2	165.8
+ Non-current interest-bearing receivables	2.5	5.5	3.0	1.8	2.5	5.5	3.0	1.5
Interest-bearing assets	870.6	506.0	402.7	705.9	846.8	455.3	345.1	679.7
- Current interest-bearing liabilities	1.3	1.9	2.1	1.1	–	–	–	–
- Current interest-bearing leasing liabilities	12.4	–	–	–	2.1	–	–	–
- Non-current interest-bearing liabilities	26.4	27.2	27.4	26.9	–	–	–	–
- Non-current interest-bearing leasing liabilities	14.9	–	–	–	0.3	–	–	–
Interest-bearing liabilities	54.9	29.1	29.5	28.0	2.4	0.0	0.0	0.0
Net loan receivable at end of period	815.7	476.9	373.2	677.8	844.4	455.3	345.1	679.7

Bure Equity finances subsidiaries' operations with its own capital and intra-group loans. The table below shows intra-group loans.

	Intra-group receivables
	30 Jun 2019	30 Jun 2018	31 Dec 2018	31 Dec 2017
Atle Investment Management	0.0	0.5	0.2	0.0
Bure Growth	294.9	202.9	218.4	176.8
Investment AB Bure	113.9	111.0	113.9	107.0
Mercuri International Group	29.8	54.8	29.8	58.8
Total	438.6	369.2	362.3	342.7

Note 6 – Pledged assets

	Group				Parent company
	30 Jun 2019	30 Jun 2018	31 Dec 2018	31 Dec 2017	30 Jun 2019	30 Jun 2018	31 Dec 2018	31 Dec 2017
Shares in subsidiaries and associates	87.2	22.5	84.8	80.1	–	–	–	–
Blocked bank accounts	0.5	0.4	0.4	0.4	–	–	–	–
Total pledged assets	87.7	22.9	85.3	80.6	–	–	–	–

Contingent liabilities in the Group amounted to SEK 0.5M (0.4) at 31 March 2019, and refer to sureties and guarantee commitments furnished by subsidiaries. There is no contingent consideration in the Group that is not reflected in the consolidated accounts.

Five-year overview

Data per share1)	30 jun 2019	2018	2017	2016	2015
Net asset value, SEK2)	153.5	137.1	111.7	101.7	87.4
Share price, SEK	158.4	108.4	98.3	103.5	68.8
Share price as a percentage of net asset value	103%	79%	88%	102%	79%
Parent Company basic equity per share, SEK	147.6	129.1	108.4	98.4	82.9
Parent Company equity per share excl. buybacks, SEK	147.6	129.8	108.4	98.4	84.7
Consolidated basic equity per share, SEK	153.7	136.5	112.5	102.4	85.6
Consolidated equity per share excl. buybacks, SEK	153.7	137.2	112.5	102.4	87.5
Parent Company basic earnings per share, SEK3)	19.8	23.2	12.0	15.7	40.4
Consolidated earnings per share, SEK3)	18.5	26.3	12.0	16.9	42.0
Number of shares, thousands	68,972	69,333	69,333	69,333	70,834
Number of shares excluding share buy-backs, thousands	68,972	68,972	69,333	69,333	69,333
Average basic number of shares, thousands	68,972	69,245	69,333	69,333	70,042
Key figures
Dividend, SEK per share	2.0	2.0	2.0	2.0	1.0
Of which, extraordinary dividend, SEK per share	–	0.5	0.5	1.0	–
Dividend yield	1.3%	1.8%	2.0%	1.9%	1.5%
Total return	47.9%	12.7%	-3.3%	54.7%	95.4%
Market capitalisation, SEK M	10,925	7,516	6,812	7,176	4,870
Net asset value, SEK M	10,591	9,454	7,743	7,054	6,060
Return on equity	14.3%	19.5%	11.6%	17.1%	62.2%
Administrative expenses/Net asset value	0.41%	0.55%	0.55%	0.66%	0.68%
Parent Company profit and financial position
Exit gains/losses, SEK M	606	46	117	0	417
Profit/loss after tax, SEK M	1,368	1,609	834	1,086	2,829
Total assets, SEK M	10,195	8,976	7,528	6,835	5,895
Equity, SEK M	10,180	8,950	7,517	6,822	5,874
Equity/assets ratio	100%	100%	100%	100%	100%
Cash and cash equivalents and short-term investments, SEK M	835	461	799	873	1,040
Consolidated profit and financial position
Net sales, SEK M	185	416	443	455	486
Exit gains/losses, SEK M	606	45	228	0	416
Profit/loss after tax, SEK M	1,273	1,821	834	1,173	2,940
Total assets, SEK M	10,768	9,624	7,971	7,271	6,281
Equity, SEK M	10,604	9,462	7,802	7,101	6,065
Equity/assets ratio	98%	98%	98%	98%	97%
Net loan debt (-)/receivable (+), SEK M	816	373	678	669	986
Average number of employees	212	234	272	262	280

1) All historical data per share has been adjusted for shares in issue with a time-weighting factor as prescribed by IAS 33.

2) Net asset value consists of the market value of Bure's listed holdings and assessed market value of unlisted holdings or net assets in subsidiaries, short-term and financial investments and cash equivalents.

3) No dilutive effect at 30 June 2019.

The information in this interim report is subject to the disclosure requirements of Bure Equity AB under the Swedish Securities Market Act. This information was publicly communicated on 16 August 2019, 08:30 a.m. CEST.

Definitions

Administrative expenses /net asset value	Administrative expenses divided by net asset value at the end of the period.
Earnings per share	Profit after tax divided by the average number of shares outstanding during the period.
Diluted earnings per share	The Group uses net profit less the non-controlling interests' share of profit for the period.
Dividend yield	Profit after tax divided by the average number of shares outstanding during the period after dilution. The Group uses net profit less the non-controlling interests' share in profit for the period. The average number of shares after dilution is calculated in accordance with IFRS, IAS 33 Earnings per Share.
EBIT	The dividend proposed to the Annual General Meeting and extraordinary dividends paid during the year divided by the share price at the beginning of the period.
Equity/assets ratio	Operating profit after depreciation of tangible and intangible fixed assets.
Equity per share	Equity in relation to total assets.
Growth	Equity divided by the number of shares outstanding.
IRR	Increase in net sales in relation to net sales for the previous period. The key figure thus includes both organic and acquisition-driven growth.
Market capitalisation	Internal Rate of Return, (average annual return).
Net asset value	Share price multiplied by the total number of shares outstanding.
Net loan liability	The market value of Bure's listed holdings, the estimated market values of unlisted holdings or alternatively net asset values of subsidiaries, short-term investments and cash and cash equivalents.
Net loan receivable	Same definition as net loan receivable but used when interest-bearing liabilities exceed interest-bearing assets.
Return on equity	Financial interest-bearing assets minus interest-bearing liabilities.
Total return	Profit/loss after tax divided by average equity.
	The sum of the period's share price growth and reinvested dividends divided by the share price at the beginning of the period.

About Bure

Bure is a listed investment company that is quoted on Nasdaq Stockholm. On 30 June 2019 the portfolio consisted of eleven companies, of which seven are listed holdings.

Our business concept is to be a long-term principal owner of operating companies. Through far-reaching engagement and value-driving initiatives and activities, we support the portfolio companies in becoming successful in their respective businesses.

Our objective is to create a long-term sustainable total return for our shareholders and to be a competitive investment alternative in the market.

Bure's strategic cornerstones are: • Long-term approach

• Commitment and responsibility
• Adapted leadership
• Financial strength