Eyrir Invest ehf. - Financial Statement Release

Eyrir Invest H1 Results 2010

Eyrir Invest ehf. - Financial Statement Release 		 

Eyrir Invest H1 2010 Results 

Eyrir Invest reports an after tax profit of 3.2 million Euros for H1 2010. 
Equity is 160 million at June 30th 2010. 

• Equity is 160 million and the equity ratio 38%

• Cash and bank deposits amount to 34 million Euros

• Eyrir Invest uses equity method in accounting for its principal long-term
  holdings in Marel and Össur. Shares of both companies are listed in Nasdaq
  OMX Nordic.  If Marel and Össur holdings were booked at last trading prices
  the equity ratio of Eyrir Invest would be slightly above 40%.
• The outlook for Marel, Össur and Stork is good. The companies are all highly
  cash generating, have sound financial positions and have strengthened further
  their competitive position in recent years. Their financing is in accordance
  with international practices with net debt around 2-4x EBITDA. 

As of January 1st 2009, Eyrir Invest‘s functional currency is the Euro.  Vast
majority of Eyrir Invests' assets are in three leading industrial companies;
Marel, Össur and Stork.  Eyrir has as well supported various ventures in recent
years for further growth. 

Eyrir Invest enjoys 10 years of operations.  Internal value per share is by
mid-year 2010 15.9 eurocents compared to 1.4 eurocents at foundation June 8th
2000. In the same period, the MSCI world index has declined by 5% annually
measured in Euros, or by 41% compounded. 


Árni Oddur Þórðarson, CEO:
„We are pleased with the good operations of Marel, Össur and Stork, in the
first half of the year. The management and employees of our core holdings have
shown strength and flexibility in turbulent times. 

We appreciate the trust we receive from creditors and investors.  Eyrir has
always emphasised on a clear strategy, transparency in operations and long term
financing both regarding Eyrir's own operations and its key holdings. 

Marel, Össur and Stork have in recent years been highly cash generative without
sacrificing R&D or marketing efforts.  With stable financing and leading market
position in growing industries they are well positioned for further value
creation“ 

Eyrir Invest´s „Buy and build“ strategy 
Eyrir Invest's key holdings are a 32% share in Marel, a 15% share in Össur and
17% share in the Dutch industrial group Stork that today stands on two legs;
Stork Technical Services and Fokker Aerospace. 

Eyrir has been a shareholder in Marel and Össur since 2004 and in Stork since
2006. Eyrir´s key holdings are market leaders in their respective industries.
In recent years they have built up their current strong positions and looking
forward they are in position to harvest well.  In 1H 2010 Eyrir Invest sold
16.9 million shares in Össur, but remains Össurs second largest shareholder. 

In addition to its core investments, Eyrir Invest has investments in various
start-up companies and supports their further growth.  In 1H 2010 Eyrir had a
successful exit from its 25% holding in Calidris when Sabre Holdings acquired
all shares in Calidris. Calidris is a global provider of revenue integrity
solutions for the airline business. 

Marel and Össur are the largest listed companies in Iceland
Marel and Össur are the largest companies registered on Nasdaq OMX in Iceland
and in addition Össur shares are listed in Copenhagen; they are as well among
the largest export companies in Iceland.
• Marel share price has increased by 72% YTD, calculated in Euros.  In 2009
  Marel entered into equity issues which in addition to good cash flow and sale
  of non-core operations has strengthened Marel´s financing considerably.  Marel
  has as well reported strong sales and operational profit increase in 1H 2010.
• Össur successfully dual listed its shares on Nasdaq OMX Copenhagen in 3Q 2009
  in addition to its Nasdaq OMX Reykjavík listing.  Össur share price has
  increased by 36% YTD calculated in US dollars.  Össur has reported good sales
  and profit increase in 1H 2010. 

Eyrir Invest holdings in Marel and Össur are booked in accordance with the
equity method.  If Marel and Össur holdings were booked at last share prices
the equity ratio of Eyrir Invest would be slightly above 40% compared to 38% in
Eyrir´s H1 2010 accounts. 

Outlook
The industries in which Eyrir Invests core holdings operate are expected to
continue to enjoy growth above general economic growth.  Eyrir´s
companies‘market positions and financials are strong and those companies should
therefore be in a good position to create further values. 


For further information please contact,
Arni Oddur Thordarson, CEO of Eyrir Invest

Tel:  +354 525-0200

www.eyrir.is

Attachments:

announcement_h1_eyrir_2010.pdf

eyrir accounts 30 6 2010.pdf