Eyrir Invest ehf. - Financial Statement Release

Eyrir Invest ehf. Annual Results 2010

Solid financials and good value creation



  -- Eyrir Invest´s net income in 2010 was 52 million Euros [2009; EUR -24 m]
  -- Total assets are 426 million Euros, funded with equity and long term debts
  -- Equity at year end amounted to 187 million Euros and the equity ratio is
     44% [2009; 38%]
  -- At year end 2010 Eyrir made an agreement for long term bank loans of 150
     million Euros. The loans are multi-currency loans with final maturity in
     May 2014
  -- The outlook for Eyrir Invest and its core holdings are good. In the past
     few years core holdings have strengthened their market positions and are
     now in a good position to benefit from the global economic growth. Their
     financials are in line with strategy and international benchmarks with net
     debts at 2-3x EBITDA

Eyrir Invests core holdings are a 32% share in Marel, 14% share in Össur and
17% share in Stork BV which owns and operates Stork Technical Services and
Fokker Technologies. 

Eyrir Invests shareholder return has been good since foundation in mid-year
2000. Internal value per share is today 18.5 eurocents compared with 1.4
eurocents at foundation. For the same period, the MSCI world index has declined
by 4% annually in Euros, or by 34% compounded. 

Arni Oddur Thordarson, CEO:

“Eyrir Invest´s financials are solid and we are delivering good numbers in 2010
which is a big change from previous year.  Assessing the performance of
investments requires longer time horizon than one year. We are proud of Eyrir´s
value creation in the past three years, at exceptional circumstances, as well
as in the 10 years from Eyrir´s foundation. 

The management and employees of our core holdings have delivered great
performance. In few years the companies have strengthened their market
positions and are now in a good position to harvest well. We therefore see good
potential in our future prospects.” 



Eyrir Invests Operational Results in 2010

Eyrir Invests Buy and Build strategy has delivered good returns in the past
years. Eyrir has been a shareholder in Marel and Össur since 2004 and became a
shareholder in Stork in early 2006. Stork was delisted from the Amsterdam stock
market in beginning of 2008 and subsequently Marel acquired the operations of
Stork Food Systems. Today Stork BV owns and operates Stork Technical Services
and Fokker Technologies. In addition to its core investments, Eyrir Invest has
investments in a few start-up companies and supports their further growth. 

Eyrir Invest holdings have continued to invest well in research and development
as well as market penetration, thus strengthening their market positions. They
are all delivering strong and increasing operational cash flows and their
financial position is strong, with net debts at 2-3x EBITDA at year end 2010. 

Eyrir Invest books its 32% share in Marel according to the equity method. At
year end 2010 the book value is 62 eurocents per share compared to year end
trading price of 65 eurocents (100 ISK). This year Marel´s share price has
continued to rise in line with increased sales and good operating performance
and is now about 74 eurocents (117.5 ISK). 

In 2010 Eyrir sold 23 million shares in Össur and subsequently Eyrir Invests
ownership in the company stands at just under 14% at year end 2010. The sale
took Eyrir Invests share below 15% and according to accounting standards Eyrir
must therefore from October 31st book its holdings in Össur at market prices
instead of using the equity method. 

Eyrir´s share in Stork BV is 17%. Stork is now operating on two pillars; Stork
Technical Services operating within the oil and gas industry and Fokker
Technologies, operating within the aerospace industry.   Eyrir books its
holding in Stork according to the Fair value method, applying market trading
multiples, comparable transaction multiples and discounted cash flow for
valuation. Eyrir takes a conservative approach in its Fair value assessment. In
2010 the book value of Stork rises by 6% backed up by improving operational
results and increased financial strength. 



Outlook

Looking ahead, there is expected to be good growth within the industries where
Eyrir Invests core holdings are placed - the food industry, health care sector,
energy industry and aerospace industry. In the past few years Eyrir´s core
assets have strengthened their market positions and are now in a good position
to harvest well. Nevertheless, results may vary from year to year. 

For further information, contact: Arni Oddur Thordarson, CEO of Eyrir
InvestTel: +354 525-0200 

www.eyrir.is



About Eyrir

Eyrir Invest is an international investment company. Eyrir Invest places great
emphasis on participating in the operations and strategic planning of its core
holdings. 



Forward-looking statements

Statements in this press release that are not based on historical facts are
forward-looking statements. Although such statements are based on management's
current estimates and expectations, forward-looking statements are inherently
uncertain. We, therefore, caution the reader that there are a variety of
factors that could cause business conditions and results to differ materially
from what is contained in our forward-looking statements, and that we do not
undertake to update any forward-looking statements. All forward-looking
statements are qualified in their entirety by this cautionary statement.

Attachments:

Eyrir Invest Annual Results 2010.pdf

Eyrir key numbers 2010.pdf

Eyrir results 2010 press release.pdf