Bure Equity

Quarterly Report • Feb 22, 2019

Year-end report 2018

January – December 2018

• Net asset value amounted to SEK 137.1 per share compared to SEK 111.7 at year-end 2017, which corresponds to an increase of 22.7 per cent. Net asset value per share including dividends paid of SEK 2.0 per share increased 24.5 per cent in 2018.
• Bure's net asset value was SEK 9,454M compared to SEK 7,743M at the start of the year.
• Total return on the Bure share was 12.7 per cent. The SIX Return Index fell 4.4 per cent in 2018.
• Consolidated profit after tax was SEK 1,821M (834). Earnings per share amounted to SEK 26.3 (12.0).

Fourth quarter 2018

• Net asset value per share was SEK 137.1 compared to SEK 125.2 the start of the quarter, which corresponds to an increase of 9.5 per cent.

Subsequent events

• Net asset value amounted to SEK 156.4 per share on 21 February 2019, which corresponds to an increase of 14.1 per cent since the beginning of the year.
• Cavotec conducted a rights issue valued at SEK 204M in January 2019. Bure subscribed for SEK 76M of shares. Bure's shareholding in Cavotec amounted to 27.1 per cent following the rights issue.
• Ovzon carried out a rights issue valued at SEK 748M in January 2019. Bure subscribed for SEK 113M of shares. Bure's shareholding amounted to 14.3 per cent following the rights issue.
• Bure divested 2 million shares in Mycronic for SEK 262M for an exit gain of SEK 237M in February 2019. Bure's shareholding amounted to 27.9 per cent following the transaction.

Henrik Blomquist CEO

In 2018, Bure's net asset value climbed to SEK 9,454M, which is equivalent to an increase of 24.5 per cent or SEK 1,850M including dividends paid. Bure has thus increased net asset value for seven consecutive years! The majority of portfolio companies contributed positively to the increase in Bure's net asset value. Listed portfolio companies accounted for the lion's share of the improvement with an increase of SEK 1,662M. The strong trend for listed companies was a reward for their successes during the year with many of the companies reporting record results. Sales as well as profit growth in Mycronic, Vitrolife, Medcap and Xvivo was extremely impressive. During the year, the unlisted companies also contributed with SEK 353M. This was primarily due to the revaluation of the value of Yubico in accordance with IFRS 9.

Ovzon joined our portfolio of companies during the year. Having followed the company for a number of years, Bure was a so-called anchor investor when the company listed in May. The company, whose business idea is to provide mobile broadband via satellite, is poised for an exciting future. The company's ambition is to launch its own geo-positioned satellite in 2021, and thereby further develop its unique communication services. The year also saw additional investments made in, notably, Cavotec, Yubico and Bure Financial Services. Intensifying concern over global economic conditions made for a dramatic conclusion to the year. The financial markets fell sharply in general, and Nasdaq Stockholm lost more than 18 per cent from its peaks in the fourth quarter. One year ago, I wrote here that we found ourselves in the latter stages of the economic cycle. In the event, however, 2018 turned out to be a strong year for the majority of the portfolio companies. Uncertainty surrounding future economic conditions persists, but for the time being there are few signs of deteriorating market conditions among the portfolio companies. I therefore look ahead with continued cautiousness tempered, however, with increased readiness.

Bure's net asset value and holdings

			31 Dec 2017					31 Dec 2018
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
	Cavotec	25.4%	366	-206	104	–	264	2.8%	3.8
	MedCap	22.9%	139	106	–	–	245	2.6%	3.5
2) L I	Mycronic	29.9%	2,492	970	–	–	3,462	36.6%	50.2
S T	Ovzon	12.0%	–	4	71	–	75	0.8%	1.1
E D	Vitrolife	20.8%	2,815	506	–	–	3,321	35.1%	48.1
	Xvivo Perfusion3)	16.3%	460	164	–	-57	566	6.0%	8.2
	Total listed holdings		6,271	1,545	175	-57	7,933	83.9%	115.0
U	Bure Financial Services4)	100.0%	51	22	16	–	89	0.9%	1.3
N L	Bure Growth5)	100.0%	199	250	42	–	490	5.2%	7.1
I S	Investment AB Bure6)	100.0%	175	-4	7	–	178	1.9%	2.6
T E	Mercuri International Group7)	99.1%	114	50	-29	–	135	1.4%	2.0
D	Total unlisted holdings		539	318	35	0	892	9.4%	12.9
	Total holdings		6,809	1,862	210	-57	8,824	93.3%	127.9
T R E A S U R Y	Cash and cash equivalents, short-term investments and other assets8) Total treasury		934 934		-304 -304		630 630	6.7% 6.7%	9.1 9.1
	Total treasury		7,743	1,862	-94	-57	9,454	100.0%	137.1

1) Change in value including exit gains/losses.

2) Number of shares at 31 December 2018: Cavotec 19,914,837, MedCap 3,081,017, Mycronic 29,317,163, Ovzon 1,007,568, Vitrolife 22,589,285 and Xvivo Perfusion 4,291,483. 3) During the first half of 2018, 600,000 shares in Xvivo Perfusion were divested for SEK 57.4M. The entry value of the shares was SEK 12.1M, and the exit gain amounted to SEK 45.4M. The divestment resulted in a previously booked fair value change of SEK +41.9M related to the divested Xvivo Perfusion shares being written off.

4) Bure Financial Services net asset value increased by SEK 37.5M to SEK 88.6M due to a re-evaluation of financial assets at an estimated market value and acquisition of shares in Alcur Fonder and Atle Investment Services. In the consolidated balance sheet, the value of Bure Financial Services' associated companies, Alcur Fonder, Fondbolaget Fondita, Idevall & Partners Holding and Teknik Innovation Norden was SEK 64.2M according to the equity method.

5) Bure Growth's net asset value increased by SEK 291.2M to SEK 490.3M due to a re-evaluation of financial assets at an estimated market value of SEK 249.6M and acquisition of shares in Yubico for SEK 32.5M, My Driving Academy for SEK 9.0M and BioLamina for SEK 0.1M. Of the estimated market value of SEK 490.3M, associated companies in Bure Growth account for SEK 63.1M. In the consolidated balance sheet, the value of Bure Growths' associated companies, BioLamina, Life Genomics and My Driving Academy was SEK 55.0M according to the equity method.

6) Refers to net assets. During 2018, the parent company Bure Equity increased its loan to Investment AB Bure by SEK 6.9M to SEK 113.9M. 7) Refers to the book value of equity and interest-bearing receivables. During the first quarter of 2018, the holding in Mercuri was revalued which resulted in a reversal of prior period write-downs by SEK 50.1M. Interest-bearing debt decreased by SEK 29.0M.

8) 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 31 December 2018

Net asset value, 12 months 2018

Net asset value was SEK 9,454M, an increase of SEK 1,711M since the beginning of the year. Net asset value per share amounted to SEK 137.1, which corresponds to an increase of 22.7 per cent since the beginning of the year. Net asset value per share increased 24,5 per cent including dividends paid.

Listed portfolio companies, 12 months 2018

The value of listed portfolio companies increased during the year by SEK 1,662M to SEK 7,933M. Of this value growth, value changes and exit gains accounted for SEK 1,545M, acquisitions for SEK 175M and divestments SEK 57M.

Listed portfolio companies' value change and exit gains, 12 months 2018

The value of the holding in Mycronic increased SEK 970M to SEK 3,462M at 31 December 2018. The share price increased 38.9 per cent during the year.

Vitrolife's value growth was SEK 506M and the value of the holding in the company amounted to SEK 3,321M at 31 December 2018. The share price increased 18.0 per cent during the year.

The value of the holding in Xvivo Perfusion increased SEK 107M to SEK 566M at 31 December 2018. During the year, 0.6 million shares were divested for SEK 57M with an exit gain of SEK 45M. The share price increased 40.4 per cent during the year.

The value of the holding in MedCap increased SEK 106M to SEK 245M. The share price increased 76.4 per cent during the year.

The value of the holding in Ovzon amounted to SEK 75M at 31 December 2018. The share price increased 5.7 per cent since the company was listed in May 2018.

The value of the holding in Cavotec decreased by SEK 102M to SEK 264M. During the year, shares in Cavotec were acquired for SEK 104M. The share price decreased 39.8 per cent during the year.

Listed portfolio companies accounted for 83.9 of per cent net asset value, compared to 81.0 per cent at year-end 2017.

Unlisted portfolio companies, 12 months 2018

The value of unlisted portfolio companies increased SEK 353M to SEK 892M, compared to SEK 539M at year-end 2017. The change in value was due primarily to the revaluation of financial assets to estimated market value.

Bure Financial Services' net asset value increased SEK 37M to SEK 89M due to revaluation av financial assets to estimated market value of SEK 22M and the acquisition of shares in Alcur Fonder and Atle Investment Services for SEK 16M. Bure Financial Services received dividends of SEK 12M from Fondita for the second half of 2017 and the first half of 2018.

Bure Growth's net asset value increased SEK 291M to SEK 490M due to the revaluation of financial assets to estimated market value of SEK 250M and the acquisition of shares in Yubico for SEK 33M, My Driving Academy for SEK 9M and BioLamina for SEK 0.1M. The majority of the revaluation is attributable to the holding in Yubico that was revalued upwards based on recent transactions in accordance with IFRS 9.

Investment AB Bure's net asset value increased SEK 3M to SEK 178M.

In the first quarter, shares in Mercuri were revalued from SEK 55M to SEK 105M through a reversal of previous writedowns of SEK 50M. During the year, Mercuri amortized SEK 29M to the parent company Bure Equity. The value of the shares and the parent company's interest-bearing debt in Mercuri amounted to SEK 135M at the end of the quarter. Unlisted portfolio companies accounted for 9.4 per cent of net asset value compared to 7.0 per cent at year-end 2017.

Treasury, 12 months 2018

The value of assets in Treasury decreased by SEK 304M to SEK 630M. During the year, Bure received dividends of SEK 106M and divested financial assets of SEK 99M. Bure also acquired financial assets for SEK 290M, paid share dividends of SEK 139M and repurchased its own shares for SEK 38M. Other items including administrative costs amounted to SEK -42M.

Assets in Treasury accounted for 6.7 per cent of net asset value compared to 12.1 per cent at year-end 2017.

The Bure share

The number of shares in Bure stands at 69,332,710. The 2018 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 shares outstanding. As at 31 December 2018, 360,789 shares had been repurchased.

Bure's share price on 31 December 2018 was SEK 108.4, which corresponds to a total return of 12.7 per cent since the beginning of the year.

	21 Feb 2019	31 Dec 2018	31 Dec 2017	31 Dec 2016
Share price, SEK	125.4	108.4	98.3	103.5
Dividend per share, SEK	–	2.0	2.0	2.0
Total return since year-end1)	15.7%	12.7%	-3.3%	54.7%
Net asset value per share, SEK	156.4	137.1	111.7	101.7
Development of NAV per share	14.1 %	22.7%	9.8%	16.4%
SIX Return Index	12.1 %	-4.4%	9.5%	9.6%

1) Including dividends of SEK 2.00 per share for 2018, 2017 and 2016.

Portfolio companies January – December 2018 and 2017

Listed, SEK M		2018	2017
	Net sales	1 887	2,046
	EBIT	-133	-173
	EBIT margin	-7.1 %	-8.5%
	Holding	25.4%	20.1%
	Net sales	709	596
	EBIT	44	21
	EBIT margin	6.3%	3.6%
	Holding	22.9%	23.0%
	Net sales	3,781	3,001
	EBIT	1,020	844
	EBIT margin	27.0%	28.1%
	Holding	29.9%	29.9%
	Net sales	208	201
	EBIT	-18	24
	EBIT margin	-8.4 %	11.9%
	Holding	12.0%	–
	Net sales	1,151	1,046
	EBIT	394	341
	EBIT margin	34.2%	32.6%
	Holding	20.8%	20.8%
	Net sales	188	148
	EBIT	14	7
	EBIT margin	7.5%	4.8%
	Holding	16.3%	18.7%
Unlisted, SEK M1)		2018	2017
	Net sales	14	11
	EBIT	10	11
	EBIT margin	67.6%	100.0%
	Holding	100.0%	100.0%
	Net sales	235	1
	EBIT	235	1
	EBIT margin	100.0%	100.0%
	Holding	100.0%	100.0%
	Net sales	16	11
	EBIT	-1	-11
	EBIT margin	-8.1%	n/m
	Holding	100.0%	100.0%
	Net sales	402	443
	EBIT	27	21
	EBIT margin	6.6%	4.6%
	Holding	99.1%	99.1%

1) See page 8 and 9 for additional information.

Listed portfolio companies

Share of Bure's net asset value 2.8%

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	Q4	Q4
EUR m	2018	2017	2018	2017	2016
Net sales	49	57	197	212	212
Operating expenses	-60	-69	-211	-230	-199
EBIT	-11,1	-12.5	-13.9	-18.0	12.3
EBIT margin	-22.8%	-22.1%	-7.1%	-8.5%	5.8%
Net financial items	-1.5	-0.9	-1.4	-4.9	-1.0
Profit/loss before tax	-12.7	-13.6	-15.3	-23.1	11.3
Income tax expense	-0.7	-6.8	-3.1	-8.7	-4.8
Profit/loss for the period	-13.4	-20.4	-18.5	-31.8	6.5
Net loan debt (-)/receivable (+)			-32	-20	-23
Total assets			230	211	244
Equity			100	104	145
Cash flow from operating activities		1	13	10
Average no. of employees			896	970	942

Facts at 31 December 2018	Largest shareholders
Book value: SEK 264M	Bure Equity	25.4%
Acquisition date: 2014	Others	74.6%
Board member from Bure: Patrik Tigerschiöld, chairman

The quarter in brief

• Order intake was EUR 44M compared with EUR 44M the same period the previous year.
• Net sales during the fourth quarter decreased by 14 per cent to EUR 49M (57).
• Operating profit was EUR -11.1M (-12.5).
• The share price fell 42.4 per cent during the fourth quarter 2018.
• Cavotec conducted a rights issue valued at SEK 204M in January 2019. Bure subscribed for SEK 76M of shares. Bure's shareholding in Cavotec amounted to 27.1 per cent following the rights issue.

www.medcap.se

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

Key figures SEK M	Q4 2018	Q4 2017	2018	2017	20161)
Net sales	188	173	709	596	n/a
Operating expenses	-179	-175	-665	-574	n/a
EBIT	8.7	-1.9	44.4	21.4	n/a
EBIT margin	4.6%	-1.1%	6.3%	3.6%	n/a
Net financial items	0.6	-0.5	-4.2	-2.0	n/a
Profit/loss before tax	9.3	-2.4	40.2	19.4	n/a
Income tax expense	-8.1	-0.8	-13.8	-4.3	n/a
Profit/loss for the period continuing operations	1.2	-3.2	26.4	15.1	n/a
Profit/loss for the period discontinued operations	-9.3	-2.0	-23.8	-7.5	n/a
Profit/loss for the period	-8.1	-5.1	2.7	7.6	n/a
Net loan debt (-)/receivable (+)			145	-105	-131
Total assets			669	600	581
Equity			274	267	289
Cash flow from operating activities			90	93	n/a
Average no. of employees			270	324	296

Facts at 31 December 2018	Largest shareholders
Book value: SEK 245M	Bengt Julander	23.6%
Acquisition date: 2012 Board member from Bure: Henrik Blomquist, board member	Bure Equity	22.9%
	Karl Tobieson	4.3%
	Others	49.2%

1) Recalculated data for 2016 unavailable.

• Net sales increased by 8.4 per cent to SEK 188M compared to SEK 173M in the same period the previous year.
• Operating profit increased by SEK 10.6M to SEK 8.7M (-1.9).
• Operations being discontinued relate to the pharmaceutical trading business unit.
• The share price fell 7.7 per cent during the fourth quarter 2018.

Share of Bure's net asset value 36.6% Share of Bure's

www.mycronic.com www.ovzon.com

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

Key figures SEK M	Q4 2018	Q4 2017	2018	2017	2016
Net sales	1,052	926	3,781	3,001	2,319
Operating expenses	-901	-620	-2,761	-2,157	-1,628
EBIT	150.7		306.0 1,020.0	844.2	691.0
EBIT margin	14.3%	33.1%	27.0%	28.1%	29.8%
Net financial items	-2.4	-2.6	-8.9	-8.6	-1.6
Profit/loss before tax	148.2	303.4	1,011.1	835.6	689.4
Income tax expense	-18.2	-76.0	-218.6	-212.3	-163.1
Profit/loss for the period	130.1	227.3	792.5	623.4	526.3
Net loan debt (-)/receivable (+)			827	800	198
Total assets			4,199	3,239	2,755
Equity			2,379	1,800	1,412
Cash flow from operating activities		702	984	462
Average no. of employees			1,175	962	577

Facts at 31 December 2018	Largest shareholders
Book value: SEK 3,462M	Bure Equity	29.9%
Acquisition date: 2010 via Skanditek	Fjärde AP-fonden	9.6%
	Oppenheimer	7.0%
Board member from Bure: Patrik Tigerschiöld, chairman	Others	53.5%

The quarter in brief

• Order intake during the fourth quarter 2018 increased 178 per cent to SEK 1,303M (572).
• Order intake in the Assembly Solutions business unit increased to SEK 608M (374). Order intake in Pattern Generators was SEK 695M (198). The consolidated order book at the end of the year amounted to SEK 1,904M (1,963).
• Net sales in the fourth quarter 2018 were SEK 1,052M (926), equivalent to an increase of 14 per cent.
• Operating profit amounted to SEK 150.7M (306.0), which corresponds to an operating margin of 14.3 per cent (33.1).
• The share price increased 26.9 per cent during the fourth quarter 2018.
• Bure divested 2 million shares in Mycronic for SEK 262M for an exit gain of SEK 237M i February 2019. Bure's shareholding amounted to 27.9 per cent following the transaction.

of mobility.

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

Key figures1)	Q4	Q4
SEK M	2018	2017	2018	2017	2016
Net sales	53	53	208	201	n/a
Operating expenses	-50	-43	-225	-177	n/a
EBIT	3.1	10.1	-17.5	24.0	n/a
EBIT margin	5.9%	19.2%	-8.4%	11.9%	n/a
Net financial items	1.9	-4.1	-7.1	-16.2	n/a
Profit/loss before tax	5.0	6.1	-24.6	7.8	n/a
Income tax expense	-1.0	-1.3	-1.0	-1.7	n/a
Profit/loss for the period	4.0	4.8	-25.6	6.1	n/a
Net loan debt (-)/receivable (+)			40	-119	n/a
Total assets			131	95	n/a
Equity			79	-121	n/a
Cash flow from operating activities			-60	35	n/a
Average no. of employees			19	14	n/a

Facts at 31 December 2018	Largest shareholders
Book value: SEK 75M	Overhorizon (Cyprus) PLC 36.4%
Acquisition date: 2018	Investment AB Öresund	12.6%
	Bure Equity	12.0%
Board member from Bure: Patrik Tigerschiöld, board member	Others	39.0%

1) Ovzon will publish the year-end report on 28 February 2018. The capital structure as of 31 December 2017 refers to the situation before the listing in May 2018.

• Net sales in the fourth quarter 2018 were SEK 53M (53).
• Operating profit amounted to SEK 3.1M (10.1), which corresponds to an operating margin of 5.9 per cent (19.2).
• Ovzon has signed contracts with SSL and SpaceX concerning the manufacture and launch of the company's first satellite.
• The share price increased 7.3 per cent during the fourth quarter 2018.
• Ovzon carried out a rights issue valued at SEK 748M in January 2019. Bure subscribed for SEK 113M of shares. Bure's shareholding amounted to 14.3 per cent following the rights issue.

Share of Bure's net asset value 35.1 %

www.vitrolife.com

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

Key figures SEK M	Q4 2018	Q4 2017	2018	2017	2016
Net sales	320	271	1,151	1,046	856
Operating expenses	-218	-184	-705	-705	-607
EBIT	101.7	86.8	393.9	340.9	248.8
EBIT margin	31.8%	32.1%	32.6%	32.6%	29.1%
Net financial items	5.8	3.0	4.7	0.1	0.1
Profit/loss before tax	107.5	89.8	398.6	340.9	248.9
Income tax expense	-23.3	-21.3	-87.9	-76.3	-57.7
Profit/loss for the period	84.1	68.5	310.7	264.6	191.2
Net loan debt (-)/receivable (+)			491	396	151
Total assets			1,697	1,422	1,250
Equity			1,496	1,229	1,020
Cash flow from operating activities			349	312	181
Average no. of employees			363	355	328

Facts at 31 December 2018	Largest shareholders
Book value: SEK 3,321M	William Demant	22.6%
Acquisition date: 2010 via	Invest A/S
Skanditek	Bure Equity	20.8%
Board member from Bure:	Capital Group	4.6%
Henrik Blomquist,	Others	52.0%
adjunct board member

The quarter in brief

• Net sales in the fourth quarter 2018 increased 18 per cent to SEK 320M (271). In local currencies, net sales increased 12 per cent and consisted of organic growth.
• Operating profit amounted to SEK 101.7M (86.8), corresponding to an operating margin of 31.8 per cent (32.1).
• Operating profit before depreciation (EBITDA) amounted to SEK135M (103), corresponding to a margin of 42 per cent (38). Currency changes affected operating profit before depreciation (EBITDA) positively by SEK 11M.
• The share price increased 12.7 per cent during the fourth quarter 2018.

www.xvivoperfusion.com

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

Key figures	Q4	Q4
SEK M	2018	2017	2018	2017	2016
Net sales	58	42	188	148	138
Operating expenses	-52	-37	-174	-141	-135
EBIT	6.1	4.7	14.0	7.1	2.7
EBIT margin	10.5%	11.4%	7.5%	4.8%	2.0%
Net financial items	1.2	0.8	3.5	0.3	0.3
Profit/loss before tax	7.3	5.5	17.5	7.5	3.0
Income tax expense	-2.4	0.1	-4.8	-1.2	-1.5
Profit/loss for the period	4.9	5.6	12.7	6.3	1.5
Net loan debt (-)/receivable (+)			187	195	25
Total assets			587	539	349
Equity			540	504	316
Cash flow from operating activities			24	22	13
Average no. of employees			37	30	28

Facts at 31 December 2018	Largest shareholders
Book value: SEK 566M	Bure Equity	16.3%
Acquisition date: Lex Asea	Swedbank Robur Fonder	6.2%
distribution from Vitrolife in 2012	Eccenovo AB	5.7%
Board member from Bure: Gösta Johannesson, chairman	Others	71.8%

• Net sales in the fourth quarter 2018 increased 40 per cent to SEK 58M (42). This increase is equivalent to 33 per cent in local currencies.
• Operating profit amounted to SEK 6.1M (4.7), corresponding to an operating margin of 10.5 per cent (11.4).
• Cash flow from ongoing operations amounted to SEK -2M (8).
• The share price fell 10.0 per cent during the fourth quarter 2018.

Unlisted portfolio companies

Share of Bure's

net asset value 0.9% Share of Bure's

Bure Growth is a wholly owned company that invests in development companies.

The company owns 28.9 per cent of BioLamina, 23.7 per cent of Life Genomics and 32.0 per cent of My Driving Academy Sweden and 18.8 per cent of Yubico.

Key figures SEK M	Q4 2018	Q4 2017	2018	2017	2016
Revenue/value adjustments	-0.4	0.2	235.4	1.0	-15.4
Operating expenses	0.0	0.0	0.0	0.0	0.0
EBIT	-0.4	0.2	235.4	1.0	-15.4
EBIT margin		n/m 100.0% 100.0% 100.0%			n/m
Net financial items	0.0	0.0	0.0	0.5	0.0
Group contributions	–	-0.5	–	-0.5	–
Profit/loss before tax	-0.4	-0.3	235.4	1.0	-15.4
Income tax expense	0.0	0.0	0.0	0.0	0.0
Profit/loss for the period	-0.4	-0.3	235.4	1.0	-15.4
Net loan debt (-)/receivable (+)1)			-218	-177	-35
Total assets			482	197	33
Equity			264	20	-2
Cash flow from operating activities			0	0	0
Average no. of employees			0	0	0

1) Of which, SEK 218.4M is liable to the Parent Company as at 31 December 2018.

Facts at 31 December 2018	Largest shareholders
Book value: SEK 490M	Bure Equity	100.0%
Acquisition date: Established 2015
Board member from Bure: Henrik Blomquist, chairman Max Jonson, board member

The quarter in brief

• Revenue/value change during the fourth quarter of SEK -0.4M relate to participations in BioLamina, Life Genomics and My Driving Academy.
• During the quarter, shares in Yubico were acquired for SEK 6.3M.

www.bure.se www.bure.se

Bure Financial Services 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, 33.8 per cent of Teknik Innovation Norden Fonder, 20.1 per cent of Fondbolaget Fondita and 33.0 per cent of Idevall & Partners Holding.

Key figures SEK M	Q4 2018	Q4 2017	2018	2017	2016
Revenue/value adjustments	1.1	2.7	14.3	11.0	26.9
Operating expenses	-3.0	0.0	-4.7	0.0	0.0
EBIT	-1.9	2.7	9.7	11.0	26.9
EBIT margin		n/m 100.0%		67.6% 100.0% 100.0%
Net financial items	0.0	0.0	0.0	0.0	0.0
Profit/loss before tax	-1.9	2.7	9.7	11.0	26.9
Income tax expense	-0.1	0.0	-0.1	0.0	0.0
Profit/loss for the period	-1.9	2.7	9.6	11.0	26.9
Net loan debt (-)/receivable (+)			133	135	-75
Total assets			201	187	250
Equity			199	187	175
Cash flow from operating activities			12	17	14
Average no. of employees			4	0	0

1) Of which, SEK 0.2M is liable to the Parent Company as at 31 December 2018.

Facts at 31 December 2018	Largest shareholders
Book value: SEK 89M	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 change during the fourth quarter of SEK 1.1M relate to participations in Alcur Fonder, Fondbolaget Fondita and Idevall & Partners Holding, and revenue from the Atle Investment Services subsidiary.

Share of Bure's net asset value 1.9%

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	Q4	Q4
SEK M	2018	2017	2018	2017	2016
Net sales	7.8	11.2	16.2	11.2	31.0
Operating expenses	-4.2	-13.6	-17.5	-22.1	-23.8
EBIT	3.6	-2.4	-1.3	-10.9	7.2
EBIT margin	46.5%	neg	-8.1%	neg	23.4%
Net financial items	-0.7	-0.6	-2.9	-2.9	-3.5
Profit/loss before tax	–	–	–	–	64.1
Income tax expense	2.9	-3.1	-4.2	-13.8	67.8
Profit/loss for the period	0.0	0.0	0.0	0.0	0.0
Profit/loss for the period	2.9	-3.1	-4.2	-13.8	67.8
Net loan debt (-)/receivable (+)1)			-103	-102	-90
Total assets			183	186	231
Equity			63	68	81
Cash flow from operating activities			-5	-9	23
Average no. of employees			0	0	0

1) Of which, SEK 113.9M is liable to the Parent Company as at 31 December 2018.

Facts at 31 December 2018	Largest shareholders
Book value: SEK 178M1)	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 fourth quarter 2018 was SEK 7.8M (11.2).
• Operating profit was SEK 3.6M (-2.4) of which SEK 1.7M was depreciation in the book value of the locomotives.

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

Q4	Q4
				2016
100	124	402	443	424
-85	-107	-376	-411	-387
14.8	17.0	26.5	31.9	36.7
14.8%	13.6%	6.6%	7.2%	8.7%
–	-11.4	–	-11.4	–
14.8	5.6	26.5	20.5	36.7
14.8%	4.5%	6.6%	4.6%	8.7%
-0.9	-8.8	-1.4	-13.6	1.5
13.9	-3.2	25.1	6.9	38.2
-3.6	-4.1	-4.1	-5.8	-8.3
10.3	-7.3	21.0	1.1	29.9
				-41
				335
		156	130	127
Cash flow from operating activities		20	14	38
		225	265	256
	2018 Net loan debt (-)/receivable (+)1)	2017	2018 -2 315	2017 -35 338

1) Of which, SEK 29.8M is liable to the Parent Company as at 31 December 2018.

Facts at 31 December 2018	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 in the fourth quarter were SEK 100M (124). The Celemi subsidiary, which was divested in May, contributed SEK 19M to sales during the fourth quarter of 2017.
• Operating profit before depreciation (EBITA) was SEK 14.8M (17.0) and operating margin amounted to 14.8 per cent (13.6).
• Cash flow in 2018 was SEK 20M and net debt decreased SEK 33M to SEK 2M.

Interim report January – December 2018

	Bure is an investment company, which means that the Group's composition of subsidiaries 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 5–9.
GROUP
Results for the forth quarter 2018	Group revenue from operational and investment activities was SEK 937M (-874). Subsidiaries' net sales were SEK 108M (124). Dividends amounted to SEK 0M (0). Exit gains/losses were SEK 0M (0). Capital gains/losses totalled SEK -9M (-11). Fair value changes amounted to SEK 835M (-1,004) of which listed portfolio companies account ed for SEK 836M. Of this amount, Cavotec accounted for SEK -194M, MedCap SEK -20M, Mycronic SEK 734M, Ovzon SEK 5M, Vitrolife SEK 374M and Xvivo Perfusion SEK -63M. Fair value changes also include value changes from short-term investments of SEK -1M. Shares in profit/loss of associated companies amounted to SEK 1M (3). Consolidated operating profit for the period was SEK 829M (-1,018). Net financial items totalled SEK -1M (-8).
	Consolidated profit/loss after financial items was SEK 827M (-1,026).
	Profit/loss after tax was SEK 824M (-1,030).
	Other comprehensive income included translation differences of SEK 2M (6).
Results for January – December 2018	Consolidated operating income from operational and investment activities was SEK 2,281M (1,345).
	Subsidiaries' net sales were SEK 416M (443).
	Dividends amounted to SEK 94M (85), of which Cavotec accounted for SEK 4M, Mycronic SEK 73M and Vitrolife SEK 17M.
	Exit gains/losses were SEK 45M (228) from the divestiture of 0.6 million shares in Xvivo Perfusion.
	Capital gains/losses from short-term investments was SEK -49M (-11).
	Fair value changes amounted to SEK 1,754M (569), of which listed portfolio companies account ed for SEK 1,499M. Of this amount, Cavotec accounted for SEK -206M, MedCap SEK 106M, Mycronic SEK 970M, Ovzon SEK 4M, Vitrolife SEK 506M and Xvivo Perfusion SEK 119M. Fair value changes also include revaluations of financial assets to estimated market value which resulted in an increase in the value of the holding in Bure Growth of SEK 238M and a change in value of short-term investments of SEK 17M. Shares in profit/loss of associated companies amounted to SEK 11M (14). Consolidated operating profit period was SEK 1,826M (852). Net financial items totalled SEK -1M (-12). Consolidated profit/loss after financial items was SEK 1,825M (840). Profit/loss after tax was SEK 1,821M (834). Other comprehensive income included translation differences of SEK 17M (5).
Financial position	Consolidated equity at the end of the period amounted to SEK 9,462M (7,802) and the equity/ assets ratio was 98 per cent (98). On 31 December 2018, the Group reported net loan receiva bles of SEK 372M (678), which consisted of interest-bearing assets of SEK 403M (706) and inter est-bearing liabilities of SEK 30M (28). Consolidated equity per share at the end of the period was SEK 136.48, compared to SEK 112.52 per share on 31 December 2017.

PARENT COMPANY

Results for the forth	Profit/loss after tax was SEK 813M (-1,022).
quarter 2018	Dividends amounted to SEK 0M (1).
	Exit gains/losses amounted to SEK 0M (0).
	Capital gains/losses from short-term investments was SEK -9M (-11).
	Fair value changes amounted to SEK 835M (-1,004), of which listed portfolio companies accounted for SEK 836M. Of this amount, Cavotec accounted for SEK -194M,
	MedCap SEK -20M, Mycronic SEK 734M, Ovzon 5M, Vitrolife SEK 374M and
	Xvivo Perfusion SEK -63M, and value decrease of short-term investments of SEK -1M.
	Administrative expenses amounted to SEK 14M (10). Net financial items were SEK 1M (2).
Results January –	Profit/loss after tax was SEK 1 609M (834).
December 2018	Dividends amounted to SEK 94M (79), of which Cavotec accounted for SEK 4M, Mycronic SEK 73M and Vitrolife SEK 17M.
	Exit gains/losses were SEK 46M (117) from the divestiture of 0.6 million shares in Xvivo Perfusion.
	Capital gains/losses from short-term investments amounted to SEK -49M (-11).
	Fair value changes amounted to SEK 1,566M (687), of which listed portfolio companies account ed for SEK 1,499M. Of this amount, Cavotec accounted for SEK -206M,
	MedCap SEK 106M, Mycronic SEK 970M, Ovzon SEK 4M, Vitrolife SEK 506M and
	Xvivo Perfusion SEK 119M, reversal of a previously implemented write-down of shares in Mercuri of SEK 50M, and value change of short-term investments of SEK 17M.
	Administrative expenses amounted to SEK 52M (42). Net financial items were SEK 3M (4).
Financial position	Equity in the Parent Company at the end of the period amounted to SEK 8,950M (7,517), 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 344M (680), which consisted of
	interest-bearing assets of SEK 344M (680) and interest-bearing liabilities of SEK 0M (0). External interest-bearing receivables amounted to SEK 6M (1). Receivables from subsidiaries totalled SEK 362M (343).
Group acquisitions and divestitures	Bure acquired an additional 4.2 million shares in Cavotec for SEK 104M, increasing its holding to 25.4 per cent.
	Bure acquired 12.0 per cent of Ovzon for SEK 71M.
	Bure Growth acquired additional shares in Yubico for SEK 33M.
	Bure Growth invested SEK 9M in My Driving Academy and increased its holding to 32.0 per cent.
	Bure Financial Services acquired 32.5 per cent of Alcur Fonder AB.
	Bure divested 0.6 million shares in Xvivo Perfusion for SEK 57M resulting in an exit gain of SEK 45M.
Group loss carryforwards	At the end of the year, the Bure Group had loss carry forwards of SEK 950M, of which SEK 639M related to the Parent Company. Losses attributable to Sweden amounted to SEK 875M, and are perpetual. The deferred tax asset based on loss carry forwards in the Group has been valued at SEK 6M (7).
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 for eign 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	The Chairman of the Board provided consultancy services to Bure under agreement until the Annual General Meeting in May 2018. Thereafter, this contractual arrangement has discontinued.
Ownership structure	Bure's largest shareholders at 31 December 2018 were Patrik Tigerschiöld with 11.4 per cent, Nordea Investment Funds with 9.9 per cent, and the Björkman family including foundations with 9.0 per cent. The number of shareholders at 31 December 2018 was 26,623 according to Euroclear Sweden.

Bure Equity Annual General Meeting 2019

The Chairman of the Board has convened a nomination committee consisting of members who represent the largest shareholders in Bure Equity AB. The nomination committee consists of Per Björkman representing the Björkman family, Erik Durhan representing Nordea Investment Funds, and Patrik Tigerschiöld representing the Tigerschiöld family. The nomination committee has been appointed in accordance with the instructions that were adopted by the 2018 Annual General Meeting. The nomination committee represents a total of 41.3 per cent of the number of votes for all shares with voting rights in the company. The Board of Directors proposes that the Annual General Meeting approve an ordinary dividend of SEK 2.00 per share (1.50) and an extra dividend of SEK 0.00 per share (0.50).

Subsequent events Cavotec conducted a rights issue valued at SEK 204M in January 2019. Bure subscribed for SEK 76M of shares. Bure's shareholding in Cavotec amounted to 27.1 per cent following the rights issue. Ovzon carried out a rights issue valued at SEK 748M in January 2019. Bure subscribed for SEK 113M of shares. Bure's shareholding amounted to 14.3 per cent following the rights issue. Bure divested 2 million shares in Mycronic for SEK 262M for an exit gain of SEK 237M i February 2019. Bure's shareholding amounted to 27.9 per cent following the transaction.

Significant risks and uncertainty Given the rapid pace of change on the financial markets, particular emphasis is placed on Bure's investments and their valuations. Bure adopts a number of basic principles for the management of risk. Bure's finance policy states that the Parent Company shall be essentially debt-free. Furthermore, each portfolio company shall be financially independent from the Parent Company. This means that the Parent Company is not financially liable for portfolio companies' obligations and that portfolio companies are responsible for their own financing. Financing of respective portfolio companies' financing shall be suited to individual companies' specific circumstances, where the overall risk level is managed through a balance between business and financial risk. Bure's 2017 annual report provides a detailed description of the Group's risk exposure and risk management in the administration report and in note 21. Bure's assessment is that no significant risk factors have arisen other than those described in the annual report and this interim report. This year-end report has not been reviewed by the Group's auditors.

Stockholm den 22 February 2019 Bure Equity AB (publ)

Patrik Tigerschiöld (Chairman)

Carl Björkman Bengt Engström

Charlotta Falvin Sarah McPhee Mathias Uhlén

Henrik Blomquist (CEO)

Financial calendar	Interim report January – March 2019	25 April	2019
	Annual General Meeting	7 May	2019
	Interim report January – June 2019	16 August	2019
For additional	Henrik Blomquist, CEO	+46 (0)8-614 00 20
information contact	Max Jonson, CFO	+46 (0)8-614 00 20

Statement of comprehensive income, Group

SEK M	Q4 2018	Q4 2017	Full year 2018	Full year 2017
Operating income
Net sales	108.3	124.3	415.5	443.3
Other operating income	1.7	13.3	10.7	16.0
Dividends:
Portfolio companies	–	–	93.5	77.9
Other companies	–	–	–	7.0
Short-term and financial investments	–	–	–	0.4
Exit gains/losses	0.1	–	45.4	227.9
Capital gains/losses on short-term investments	-8.9	-10.6	-49.3	-10.9
Fair value:
Portfolio companies	836.0	-999.5	1,737.6	692.5
Other companies	–	0.0	–	-118.4
Short-term and financial investments	-1.3	-4.6	16.9	-4.7
Shares in profit/loss of associates	3.2	3.4	10.7	13.9
Total operating income	936.9	-873.7	2,281.0	1,345.0
Operating expenses
Other external expenses	-44.6	-57.6	-172.2	-186.6
Personnel costs	-59.3	-72.3	-266.8	-278.9
Depreciation and impairment of property, plant and equipment	-2.7	-2.7	-11.8	-12.1
Depreciation and impairment of Intangible assets	–	-11.4	–	-11.4
Other operating expenses	-1.8	-0.2	-4.0	-3.6
Total operating expenses	-108.3	-114.2	-454.8	-492.6
Operating profit/loss	828.6	-1,017.9	1,826.2	852.4
Interest income and similar profit/loss items	-1.3	1.8	1.5	3.0
Interest expenses and similar profit/loss items	-0.1	-9.5	-3.0	-15.4
Profit/loss after financial items	827.2	-1,025.7	1,824.8	839.9
Tax on income for the period	-3.6	-4.1	-4.2	-5.8
Income for the period	823.5	-1,029.8	1,820.6	834.1
Other comprehensive income
Items that can be subsequently re-entered onto the income statement
Translation differences	2.3	6.5	16.6	4.8
Other comprehensive income for the period, after tax	2.3	6.5	16.6	4.8
Total income for the period	825.8	-1,023.3	1,837.2	838.9
Profit/loss attributable to non-controlling interests	0.1	-0.1	0.2	0.0
Profit/loss attributable to owners of the Parent Company	823.4	-1,029.7	1,820.4	834.1
Comprehensive income attributable to non-controlling interests	0.1	-0.1	0.2	0.0
Comprehensive income attributable to owners of the Parent Company	825.7	-1,023.3	1,837.0	838.9
Average number of shares outstanding, thousands1)	69,168	69,333	69,245	69,333
Attributable to owners of the Parent Company, SEK	11.91	-14.85	26.29	12.03
Earnings per share, SEK1)	11.91	-14.85	26.29	12.03

1) No dilutive effect at 31 December 2018 and 2017.

Statement of financial position, Group

	31 December	31 December
SEK M	2018	2017
Assets
Intangible assets	97.6	96.5
of which, goodwill	95.0	92.5
Property, plant and equipment	177.5	186.0
Financial assets	8,512.5	6,549.9
Inventories	0.1	3.3
Current receivables	143.9	120.1
Prepaid expenses and accrued income	29.7	24.5
Short-term investments	265.0	286.3
Cash and cash equivalents	397.2	704.1
Total assets	9,623.5	7,970.7
of which, interest-bearing assets1)	402.7	705.9
Equity and liabilities
Equity attributable to owners of the Parent Company	9,461.1	7,800.5
Equity attributable to non-controlling interests	1.3	1.0
Total equity	9,462.4	7,801.5
Non-current liabilities	39.6	32.4
Current liabilities	121.5	136.8
Total liabilities	161.1	169.2
Total equity and liabilities	9,623.5	7,970.7
of which, interest-bearing liabilities1)	29.5	28.0

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 2017	535.5	714.6	5,850.2	1.1	7,101.3
Profit/loss for the year	–	–	834.1	0.0	834.1
Other comprehensive income	–	–	4.8	–	4.8
Cash dividend	–	–	-138.7	–	-138.7
Closing balance equity at 31 December 2017	535.5	714.6	6,550.4	1.1	7,801.5
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

Statement of cash flows, Group

	Q4	Q4	Full year	Full year
SEK M	2018	2017	2018	2017
Cash flow from operating activities before change in working capital	-5.4	-18.7	73.9	279.1
Cash flow from change in working capital	-43.7	10.9	-43.2	-21.7
Cash flow from operating activities	-49.1	-7.8	30.7	257.3
Cash flow from investing activities	-11.8	12.7	-180.0	-103.0
Cash flow from financing activities	-25.0	-4.1	-174.2	-140.2
Cash flow for the period	-86.0	0.8	-323.5	14.1
Cash and cash equivalents at beginning of period	480.9	696.9	704.1	685.3
Cash flow for the period	-86.0	0.8	-323.5	14.1
Translation differences	2.3	6.5	16.6	4.8
Cash and cash equivalents at end of period	397.2	704.1	397.2	704.1

Income statement, Parent Company

SEK M	Q4 2018	Q4 2017	Full year 2018	Full year 2017
OPERATING INCOME
Investing activities
Dividends:
Portfolio companies	–	–	93.5	77.9
Other companies	–	0.5	–	0.5
Short-term and financial investments	–	–	–	0.4
Exit gains/losses	0.1	0.0	45.6	117.4
Capital gains/losses on short-term investments	-8.9	-10.6	-49.3	-10.9
Fair value:
Portfolio companies	836.0	-999.5	1,499.2	692.5
Other companies	0.0	0.0	50.1	-1.0
Short-term and financial investments	-1.3	-4.6	16.9	-4.7
Other income	0.6	0.4	2.3	1.0
Total operating income	826.4	-1,013.7	1,658.3	873.1
Operating expenses
Personnel costs	-7.3	-3.2	-27.4	-18.7
Other external expenses	-6.5	-6.4	-24.2	-23.5
Depreciation of property, plant and equipment	-0.2	-0.2	-0.7	-0.7
Total operating expenses	-14.0	-9.8	-52.3	-42.9
Operating profit/loss	812.4	-1,023.5	1,606.0	830.2
Financial income and expenses
Interest income and similar profit/loss items	1.0	1.1	4.9	5.3
Interest expenses and similar profit/loss items	-0.4	0.5	-1.6	-1.8
Total financial income and expenses	0.6	1.6	3.3	3.5
Profit/loss before tax	813.0	-1,021.9	1,609.3	833.7
Income tax expense	0.0	0.0	0.0	0.0
Profit/loss for the period1)	813.0	-1,021.9	1,609.3	833.7
Average basic number of shares, thousands2)	69,168	69,333	69,245	69,333
Basic earnings per share, SEK2)	11.75	-14.74	23.24	12.02
Average number of employees	6	7	7	7
1) Corresponds to comprehensive income.

2) No dilutive effect at 31 December 2018 and 2017.

Statement of financial position, Parent Company

	31 December	31 December
SEK M	2018	2017
Assets
Property, plant and equipment	2.8	3.5
Financial assets	8,090.9	6,377.4
Current receivables	418.9	344.6
Prepaid expenses and accrued income	2.0	3.6
Short-term investments	265.0	286.3
Cash and cash equivalents	195.9	512.4
Total assets	8,975.4	7,527.8
of which, interest-bearing assets1)	344.1	679.7
Equity and liabilities
Equity	8,949.8	7,516.8
Non-current liabilities	8.5	0.9
Current liabilities	17.2	10.0
Total equity and liabilities	8,975.4	7,527.8
of which, interest-bearing liabilities1)	–	–
1) See Note 5.

Statement of cash flows, Parent Company

SEK M	Q4 2018	Q4 2017	Full year 2018	Full year 2017
Cash flow from operating activities before change in working capital	-21.4	-16.4	43.1	147.4
Cash flow from change in working capital	-43.3	1.1	-42.7	-0.7
Cash flow from operating activities	-64.7	-15.4	0.4	146.7
Cash flow from investing activities	4.3	-1.0	-140.6 -140.6	-83.7
Cash flow from financing activities	-24.5	0.0	-176.3	-138.7
Cash flow for the period	-84.9	-16.4	-316.5	-75.7
Cash and cash equivalents at beginning of period	280.8	528.8	512.4	588.0
Cash flow for the period	-84.9	-16.4	-316.5	-75.7
Cash and cash equivalents at end of period	195.9	512.4	195.9	512.4

Statement of changes in equity, Parent Company

SEK M	Q4 2018	Q4 2017	Full year 2018	Full year 2017
Opening balance, equity	8,161.2	8,538.7	7,516.8	6,821.8
Cash dividend	–	–	-138.7	-138.7
Capital buy-back	-24.5	–	-37.7	–
Profit/loss for the period	813.1	-1,021.9	1,609.3	833.7
Closing balance, equity	8,949.8	7,516.8	8,949.8	7,516.8

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 2017.

New accounting rules that came into effect on 1 January 2018 can be summarised in the following way: IFRS 9 Financial Instruments replaces IAS 39 Financial Instruments: Recognition and Measurement. IFRS 9 includes a model for the recognition and measurement of financial instruments, a forward-looking impairment model for financial assets, and substantially re-worked guidance regarding hedging. Recognition and measurement under IFRS 9 is based on the business model a given company applies for the management of assets and cash flow characteristics of financial assets. See Note 4 – Financial instruments for further information on the impact of IFRS 9 on the Group's financial statements. IFRS 15 Revenue from Contracts with Customers is a new revenue standard that replaces existing revenue standards and guidance. Revenue recognition shall correspond to how the transfer of contracted goods or services to customers is conducted; and with amounts that corresponds to the value of the compensation that a company is expected to receive in exchange for these goods or services. The standard does not have any material effect on the Group's net sales either in terms of amounts or differences in periodicity. On initial application of the change, recalculation will be retroactive, with the total effect of the first application being an adjustment of the opening balance of capitalised earnings.

The effect of new accounting standard that came into effect on 1 January 2019 can be summarised as follows: The Group will apply IFRS 16 from 1 January 2019. The Group intends to apply the simplified transition method and will not recalculate comparative figures. New leasing rights are valued at an amount that corresponds to the leasing liability adjusted for pre-paid and accrued leasing fees. The introduction of the new standard is initially expected to result in the following adjustments to Bure's reporting of its financial position: new leasing rights are expected to amount to SEK 33M and leasing liabilities are expected to total 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.

					Bure
			Investment		Financial		Bure		Other		Eliminations,		Parent
	Mercuri		AB Bure		Services		Growth		companies		etc.		Company		Total
SEK M	2018	2017	2018	2017	2018	2017	2018	2017	2018	2017	2018	2017	2018	2017	2018	2017
Operating income
Total operating income	402	443	11	0	3	0	0	0	0	0	–	–	0	0	416	443
Profit/loss
Shares in profit/loss	2	1	–	–	12	12	-3	1	–	–	–	–	–	–	11	14
Profit/loss by segment	25	20	-1	-11	-2	–	–	–	–	–	–	–	2	1	24	10
Administrative expenses	–	–	–	–	–	–	–	–	–	–	–	–	-52	-43	-52	-43
Fair value/impairment losses	–	–	–	–	–	-146	238	28	–	–	-50	1	1 566	687	1 754	569
Dividends	–	–	–	–	12	7	–	–	–	–	-12	-1	94	79	94	85
Exit gains/losses/capital gains/losses on short-term investments	0	–	–	–	–	138	–	-28	–	–	–	–	-4	106	-4	217
Operating profit/loss	27	21	-1	-11	22	11	235	1	0	0	-62		1 1 606		830 1 826	852
Net financial items															-1	-12
The period's income tax expense															-4	-6
Profit/loss for the period															1 821	834

					Bure
			Investment		Financial		Bure		Other		Eliminations,		Parent
	Mercuri		AB Bure		Services		Growth		companies		etc.		Company		Total
											31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec
SEK M	2018	2017	2018	2017	2018	2017	2018	2017	2018	2017	2018	2017	2018	2017	2018	2017
Assets	178	252	155	158	136	135	406	128	0	0	-363	-344	8 976	7 528	9 484	7 856
Equity in associates	16	15	–	–	64	52	55	48	–	–	–	–	–	–	140	115
Total assets	194	267	155	158	201	187	461	176	0	0	-363				-344 8 976 7 528 9 624 7 971
Liabilities
Unallocated liabilities	159	208	120	118	1	0	218	177	0	0	-363	-344	26	11	161	169
Total liabilities	159	208	120	118	1	0	218	177	0	0	-363	-344	26	11	161	169
Investments	5	4	0	0	0	0	0	0	0	0	0	0	0	0	7	4
Amortisation/depreciation	4	16	7	7	0	0	0	0	0	0	0	0	0	1	12	24

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. The table below shows how net sales would have been reported had the new standard been applied in 2017.

	Q4	Full year	Full year
SEK M	2018	2018	2017
Consultancy income	98	345	355
Licensing revenue	4	26	58
Other income	6	46	31
Net sales	108	416	433

Note 3 – Effects of changed estimates and assumptions

Key accounting estimates and assumptions are presented in Note 1 of the annual report for 2017. 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 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 Bure Financial Services 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 31 December 2018.

SEK M	Market value, valuation model	Book value in the Group, valuation model
Bure Financial Services	88.6	71.1
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
Bure Growth	490.3	482.2
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
	31 Dec 2018	31 Dec 2017	31 Dec 2016	31 Dec 2018	31 Dec 2017	31 Dec 2016
Cash and cash equivalents	397.2	704.1	685.3	195.9	512.4	588.0
+ Interest-bearing investments	0.0	0.0	3.8	0.0	0.0	3.8
+ Current interest-bearing receivables	2.5	0.0	3.7	145.2	165.8	201.1
+ Non-current interest-bearing receivables	3.0	1.8	5.4	3.0	1.5	4.6
Interest-bearing assets	402.7	705.9	698.1	344.1	679.7	797.6
- Current interest-bearing liabilities	2.1	1.1	4.3	–	–	–
- Non-current interest-bearing liabilities	27.4	26.9	25.4	–	–	–
Interest-bearing liabilities	29.5	28.0	29.6	–	–	–
Net loan receivable at end of period	373.2	677.8	668.5	344.1	679.7	797.6

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

		Intra-group receivables
	31 Dec 2018	31 Dec 2017
Bure Financial Services	0.2	0.0
Bure Growth	218.4	176.8
Investment AB Bure	113.9	107.0
Mercuri International Group	29.8	58.8
Total	362.3	342.7

Note 6 – Pledged assets

		Group		Parent company
	31 Dec	31 Dec	31 Dec	31 Dec	31 Dec	31 Dec
	2018	2017	2016	2018	2017	2016
Shares in subsidiaries and associates	84.8	80.1	73.0	–	–	–
Blocked bank accounts	0.4	0.4	0.4	–	–	–
Total pledged assets	85.3	80.6	73.4	–	–	–

Contingent liabilities in the Group amounted to SEK 0.5M (0.4) at 31 December 2018, and refer to sureties and guarantee commitments furnished by subsidiaries. There is no contingent consideration in the Group that has not already been expensed.

Five-year overview

Data per share1)	2018	2017	2016	2015	2014
Net asset value, SEK2)	137.1	111.7	101.7	87.4	46.1
Share price, SEK	108.4	98.3	103.5	68.8	35.9
Share price as a percentage of net asset value	79%	88%	102%	79%	78%
Parent Company basic equity per share, SEK	129.1	108.4	98.4	82.9	42.3
Parent Company equity per share excl. buybacks, SEK	129.8	108.4	98.4	84.7	45.0
Consolidated basic equity per share, SEK	136.5	112.5	102.4	85.6	43.4
Consolidated equity per share excl. buybacks, SEK	137.2	112.5	102.4	87.5	46.2
Parent Company basic earnings per share, SEK3)	23.2	12.0	15.7	40.4	12.7
Consolidated earnings per share, SEK3)	26.3	12.0	16.9	42.0	12.8
Number of shares, thousands	69,333	69,333	69,333	70,834	76,082
Number of outstanding options/warrants, thousands	–	–	–	–	–
Total number of shares incl. outstanding options/warrants, thousands	69,333	69,333	69,333	70,834	76,082
Number of shares excluding share buybacks, thousands	68,972	69,333	69,333	69,333	71,397
Average basic number of shares, thousands	69,245	69,333	69,333	70,042	74,947
Key figures
Dividend, SEK per share	2.0	2.0	2.0	1.0	1.0
Of which, extraordinary dividend, SEK per share	0.5	0.5	1.0	–	0.5
Direct return	1.8%	2.0%	1.9%	1.5%	2.8%
Total return	12.7%	-3.3%	54.7%	95.4%	43.0%
Market capitalisation, SEK M	7,516	6,812	7,176	4,870	2,731
Net asset value, SEK M	9,454	7,743	7,054	6,060	3,291
Return on equity	19.5%	11.6%	17.1%	62.2%	33.5%
Administrative expenses/Net asset value	0.55%	0.55%	0.66%	0.68%	1.23%
Parent Company profit and financial position
Exit gains/losses, SEK M	46	117	0	417	132
Profit/loss after tax, SEK M	1,609	834	1,086	2,829	953
Total assets, SEK M	8,976	7,528	6,835	5,895	3,233
Equity, SEK M	8,950	7,517	6,822	5,874	3,216
Equity/assets ratio	100%	100%	100%	100%	99%
Cash and cash equivalents and short-term investments, SEK M	461	799	873	1,040	473
Consolidated profit and financial position
Net sales, SEK M	416	443	455	486	537
Exit gains/losses, SEK M	45	228	0	416	132
Profit/loss after tax, SEK M	1,821	834	1,173	2,940	961
Total assets, SEK M	9,624	7,971	7,271	6,281	3,545
Equity, SEK M	9,462	7,802	7,101	6,065	3,302
Equity/assets ratio	98%	98%	98%	97%	93%
Net loan debt (-)/receivable (+), SEK M	373	678	669	986	626
Average number of employees	234	272	262	280	336

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 31 December 2018.

The information in this interim report is subject to the disclosure requirements of Bure Equity AB under the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act. This information was publicly communicated on 22 February 2019, 08:30 a.m. CEST.

Definitions

Administrative expenses/net asset value	Administrative expenses divided by net asset value at period end.
Basic earnings per share	Profit after tax divided by the average number of shares outstanding during the period. The Group uses net profit less the non-controlling interests' share in profit for the period.
Diluted earnings per share	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 the rules in IFRS, IAS 33, Earnings Per Share.
Direct return	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.
EBIT	Operating profit after amortisation of goodwill/acquisition-related surplus values and non-current assets.
Equity/assets ratio	Equity in relation to total assets. With effect from the adoption of IFRS on 1 January 2005, the non-controlling interests' share is included in total equity.
Equity per share	Equity divided by the number of shares outstanding.
Growth	Increase in net sales in relation to net sales for the previous period. The key figure thus includes both organic and acquisition-driven growth.
IRR	Average annual return (Internal Rate of Return).
Market capitalisation	Share price multiplied by the total number of shares outstanding.
Net asset value	The market value of Bure's listed holdings, the estimated market values of unlisted holdings or alternatively net asset values of unlisted holdings, investment assets and cash and cash equivalents.
Net loan liability	Same definition as net loan receivable, but is used when interest-bearing liabilities exceed interest-bearing assets.
Net loan receivable	Financial interest-bearing assets minus interest-bearing liabilities.
Return on equity	Profit/loss after tax divided by average equity.
Total return	The total 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 31 December 2018 the portfolio consisted of ten companies, of which six 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