Intentia January-March 2001 Interim Report

Apr 25, 2001, 01:00 ET from Intentia International AB

    STOCKHOLM, Sweden, April 25 /PRNewswire/ -- The following was released
 today by Intentia:
 
     *  Net revenue totaled SEK 879 million (830), up 6 percent from the first
        three months of 2000.
 
     *  License orders continued to grow to SEK 294 million (245) for the
        first quarter, an increase of 20 percent. The backlog of orders was
        SEK 616 million (397) at the end of the quarter. License revenue was
        SEK 238 million (256), a decrease of 7 percent.
 
     *  Consulting revenue continued to improve as a result of ongoing growth
        in the number of implementation projects.  Consulting revenue during
        the period totaled SEK 625 million (517), up 21 percent.
        The consulting margin rose further to 16 percent (6) for the quarter.
 
     *  Costs remained stable.  Employees numbered 3,247 (3,416) at the end of
        the quarter, an increase of 23 employees since the beginning of the
        year.
 
     *  Operating earnings improved to SEK -16 million (-79) for the period.
 
     *  Cash flow after investments rose to SEK -12 million (-143),
        an improvement of SEK 131 million over the first quarter of 2000.
 
     *  Intentia's market position continued to improve.  The company received
        a number of large orders during the first quarter from customers such
        as Messier, Elkem and Peacock.
 
     *  During the quarter, Intentia carried out the issue of new shares
        announced previously.  The issue was fully subscribed and raised
        SEK 399 million for the company before underwriting expenses.
 
     As of January 1, 2001, a number of new Swedish Financial Accounting
 Standards Council (Redovisningsraedet) recommendations took effect.  These
 changes are part of a more thoroughgoing revision of Swedish accounting
 standards to comply with International Accounting Standards (IAS).  Among the
 areas covered by recommendations that took effect as of 2001 are income taxes,
 construction contracts and similar assignments, revenue, affiliated companies,
 earnings per share and interim reporting.  The areas covered by
 recommendations taking effect as of January 2002 include consolidated
 financial statements, intangible assets, impairment of assets and provisions
 for contingent liabilities.  Intentia's previously announced decision to
 follow all of these recommendations as of January 1, 2001 has affected the
 company's accounting and reporting practices.  A more detailed description of
 the accounting principles with which Intentia complies appears on page 8 of
 this interim report.
 
     Group Progress
 
     Intentia's Assessment of the Market
     Intentia's progress this year will be shaped by the state of the IT market
 in general, the robustness of the market for enterprise systems, the volume of
 ongoing procurement projects and Intentia's competitive strength.
     The business cycle turned downward in the first quarter.  A number of
 companies, particularly in the IT sector, suffered the consequences.  Intentia
 believes that the impact was particularly heavy on IT companies, such as
 Internet consulting firms and best-of-breed suppliers, that are incorrectly
 positioned in terms of either product or market.  When it comes to the market
 for enterprise systems, the effect of the downturn appears to have been less
 severe.  Suppliers in that market satisfy their customers' more fundamental
 needs, particularly those related to supporting and strengthening the
 manufacturing sector's core processes.  An economic slowdown can have both a
 positive and negative impact on this segment of the market.  To the extent
 that the downturn frees up internal resources, some companies will move up
 their investment plans.  Meanwhile, other companies will break off procurement
 projects either temporarily or permanently.
     Insofar as the slowdown is detrimental to the enterprise systems market in
 general, Intentia believes that its relative position in the sector will
 improve.  This optimism is based on Intentia's many ongoing procurement
 projects and strong competitive advantages in its principal market of
 medium-sized businesses and, to a growing extent, big companies.
 
     License and Consulting Revenue During the Period
     New license orders totaled SEK 294 million (245) for the quarter, an
 increase of 20 percent from the same period in 2000.  Orders for the quarter
 were weakened by the large number of contracts concluded in the fourth quarter
 of 2000.  There was an opposite dynamic in the first quarter of 2000, which
 benefited from the low number of contracts concluded during the fourth quarter
 of 1999.  Among the companies with which Intentia signed agreements in the
 first quarter were Elkem, Gucci, Messier, Peacock, Sapa, SMC, Syltone and
 Tine.  Large customers, both those with which Intentia has concluded
 agreements and those with which procurement projects are under way, continue
 to increase in number.  The backlog of orders expanded further to
 SEK 616 million (397), an increase of 55 percent, at the end of the period.
 The trend confirms the strength of Intentia's broad offering for
 e-collaboration, which is working in tandem with the company's global
 implementation organization to forge market leadership.  License revenue for
 the quarter was SEK 238 million (256), a 7 percent decrease from the same
 period of 2000.
     The large number of ongoing implementation projects continued to boost
 consulting revenue.  Ongoing implementation projects totaled SEK 625 million
 (517), up 21 percent from the first quarter of 2000.  Net revenue totaled
 SEK 879 million (830) for the quarter, an increase of 6 percent from the same
 period of 2000.
 
     Greater Efficiency Leads to Improved Profitability
     In order to restore profitability, Intentia launched a short-term
 cost-effectiveness program in 2000.  The program, which includes a short-term
 commitment to pursuing growth within the company's existing structure until
 efficiency and economies of scale have improved, continued successfully in the
 first quarter.  Parallel to these developments, Intentia is building a
 structure that will permit a combination of ongoing growth and high efficiency
 throughout its organization.  Among the areas affected by this effort are
 marketing, product, administration and organization.
     Intentia carried out the initial stage of its reorganization during the
 first quarter.  The objective is to arrange and run sales and consulting
 operations according to business units.  Since each unit will be sized for the
 greatest possible efficiency, it may comprise a country, part of a country or
 even an international entity.  The business units will be coordinated by a
 series of regional organizations, whose primary task will be to support their
 particular units.  In that way, each unit will be able to focus on sales and
 implementation, while the regional organizations assume responsibility for
 support processes.  The approach will generate economies of scale and earmark
 resources for the regional organizations with which they can optimize
 coordination.
     The new structure started off in the first quarter with four European
 regions:  Northern Europe (Sweden, Norway, Finland and Denmark), Central
 Europe (Germany, Austria, Switzerland, Poland, the Czech Republic and
 Hungary), Northwestern Europe (Great Britain, Ireland, The Netherlands,
 Belgium and South Africa) and Southern Europe (France, Spain, Portugal, Italy
 and Israel).  The need to expand infrastructure is minimized as the
 organization has been designed to more cost-effectively handle volume growth.
     The profitability restoration plan laid out in early 2000 is intended to
 ensure that Intentia will continue increasing its license revenue within the
 basic constraints of its current product development and sales organization.
 The target is for ongoing efficiency improvements and an increased number of
 implementation projects to raise the consulting margin to 20 percent.
 Intentia is carrying on in accordance with that plan.
     The organization remained stable in the first quarter.  Employees numbered
 3,247 at the end of the quarter, an increase of 23 employees for the period.
 The organization grew in selected areas where more personnel were deemed
 necessary to satisfy demand.  Consulting costs and indirect expenses combined
 increased by a slight 3 percent, the capitalization of product development
 contributing more than 3 percentage points.  These costs totaled
 SEK 860 million (837).
     The consulting margin increased for the third straight quarter.
 The improvement reflected good capacity utilization, further productivity
 enhancements and more favorable contract terms.  The consulting margin for the
 first quarter was 16 percent (6).
     Owing primarily to more intense marketing efforts, sales and marketing
 costs rose modestly to SEK 192 million (176).  Product development expenses
 were SEK 88 million (110), positively affected by the capitalization of
 SEK 30 million during the period.  Administrative costs totaled SEK 58 million
 (62).
 
     Net Revenue Increased for All Regions
     The order backlog has improved in all regions.  For the Northern European
 region, net revenue was in line with the first quarter of 2000 at
 SEK 412 million, while the consulting revenue growth of 13 percent offset
 lower license sales.  Central Europe had a positive development, with net
 revenue rising by 32 percent to SEK 118 million.  At 84 percent, license
 revenue growth was particularly strong.  Spurred chiefly by consulting
 revenue, Northwestern Europe also posted solid net revenue increases.
 Northwestern Europe's net revenue totaled SEK 124 million, an increase of
 29 percent.  Net revenue for Southern Europe was up by 19 percent to
 SEK 149 million, higher consulting revenue offsetting lower license sales for
 the period.  Net revenue in the Americas rose by 13 percent to SEK 53 million
 for the quarter.  The utilization of consulting capacity improved
 considerably.  Net revenue in the Asia Pacific region increased by 19 percent
 to SEK 61 million on the back of stronger consulting and license sales.
 
     Operating Earnings Continue to Grow In Line with Intentia's Strategy
     The first quarter is normally weak in terms of earnings.  This is even
 more true of the third quarter, when license volumes are insufficient to cover
 costs.  The results for the first quarter were consistent with Intentia's
 strategy for making a profit in 2001.  Operating earnings improved for the
 quarter by SEK 63 million to SEK -16 million (-79).  Translation differences
 upon consolidation had a positive impact on net revenue growth, while
 operating earnings were negatively affected by SEK 2 million.
 
     The Depreciation of the Krona Had a Substantial Negative Impact
      On Financial Items
     Depreciation significantly lowered the valuation of Intentia's convertible
 debenture loan.  The exchange rate effects totaled SEK -30 million, as opposed
 to a positive translation effect of SEK 27 million for the first quarter of
 2000.  Total financial items declined from the same period of 2000 by
 SEK 48 million to SEK -34 million (14).  Intentia's loss after financial items
 was SEK -50 million (-65).  Given a tax revenue of SEK 9 million
 (15), Intentia's loss after tax was SEK -42 million (-50).
 
     Progress from April 2000 through March 2001
     From April 2000 through March 2001, net revenue increased to
 SEK 3,294 million, as opposed to SEK 3,206 million during the same period of
 1999-2000.  License orders totaled SEK 1,206 million (817), while license
 revenue was SEK 987 million (827).  Operating earnings for the period improved
 to SEK -227 million (-273).  Excluding items affecting comparability in the
 fourth quarter of 1999, operating earnings rose by SEK 102 million.  Largely
 due to the impact of the depreciation of the krona on the convertible
 debenture loan, financial items weakened considerably, leading to a loss after
 financial items of SEK -385 million (-279).
 
     Product
     As traditional companies take increasing advantage of new business models
 to strengthen their competitiveness, choosing the suppliers of their strategic
 enterprise systems becomes even more critical.  These days, the choice is
 based more than ever on the ability to deliver the most complete possible
 solution.  Intentia's product and technological leadership is enabling it to
 improve its already strong market position.  Intentia is continuing to reap
 the benefits of its extensive product development investments.  For instance,
 the company is further enhancing the functionality of applications such as
 Supply Chain Management, e-business, corporate portals and marketplace
 technology.  Intentia is also continuing to work on ensuring that customers
 are able to employ these collaborative business models to take full advantage
 of the Internet.
     The development of Movex V12, the next big release, entered its final
 stage in the first quarter and will be launched in the second quarter.
 The launch of Intentia's Java-based NextGen version of Movex is proceeding
 according to plan and has garnered 60 contracts so far.  As a further step in
 strengthening its position with big companies, Intentia signed a strategic
 global agreement in the first quarter with Manhattan Associates, the world's
 leading supplier of warehouse management software to big international firms.
     Intentia's focus remains on key strategic sectors.  Intentia's acquisition
 of a 49 percent stake in Scase ASA, a Norwegian software manufacturer, makes
 it the first supplier of enterprise systems for the food industry that offers
 integrated origin marking throughout the supply chain, from livestock to the
 grocery shelves.
 
     Issue of New Shares Provides Firmer Financial Foundation
     During the first quarter, Intentia successfully carried out its previously
 announced issue of new shares with preferential rights for current
 stockholders.  As a result, the company raised SEK 399 million before
 underwriting expenses of SEK 13 million, which were charged directly to the
 restricted reserves.  The issue boosted Intentia's equity/assets ratio to
 14 percent at the end of the first quarter and its proportion of risk-bearing
 capital to 51 percent.  Intentia has thereby safeguarded its ability to
 exploit profitably the growth potential generated by its product development
 investments and geographic expansion of recent years.
 
     Cash Flow, Capital and Financial Position
     Cash flow after investments improved considerably in the first quarter to
 SEK -12 million (-143).  The increase reflects higher earnings, as well as
 less tied-up working capital, resulting primarily from lower accounts
 receivable.  Working capital tied up totaled SEK 207 million (112).
 Total investments were SEK 51 million (26), SEK 30 million of which was due to
 capitalization of product development.
     The Group's liquidity increased to SEK 622 million (591).  The issue of
 new shares contributed SEK 386 million to liquidity, while SEK 163 million in
 loans were amortized during the quarter.
     The proportion of shareholders' funds was 51 percent (57), and the
 equity/assets ratio was 14 percent (15).
 
     Parent Company
     The Parent Company's net revenue was SEK 8 million (17), while the loss
 after financial items was SEK -54 million (12).  Investments totaled
 SEK 0 million (0) and liquidity was SEK 495 million (465).  Excluding the
 convertible notes, borrowings were SEK 402 million (260).  The issue of
 4,862,200 new shares increased the Parent Company's shareholders' equity by
 SEK 386 million.  Of the increase, SEK 49 million went to capital stock and
 the remaining SEK 337 million was transferred to the restricted reserves.
 
     Outlook for 2001
     The unpredictability of the business cycle for the remainder of 2001 could
 put a damper on the enterprise systems market, which could also affect
 Intentia.  However, based on Intentia's market position and competitiveness,
 we expect to grow more quickly than our competitors.  Thus, we see no reason
 to revise our expectations of a profitable year combined with substantially
 improved cash flow.
 
     Stockholm, April 25, 2001
 
     Bjorn Algkvist
     President and Chief Executive Officer
 
 
     Accounting Principles
     This interim report was prepared in accordance with the Annual Accounts
 Act and the recommendations of the Swedish Financial Accounting Standards
 Council (Redovisningsraedet).  Intentia's accounting principles have changed
 since its 2000 annual report in compliance with Redovisningsraedet's
 recommendations, parts of which took effect on January 1, 2001 and parts of
 which will take effect on January 1, 2002.  Comparison figures have been
 revised according to the recommendations of Redovisningsraedet.  For a more
 detailed description, see below.
 
     Accounting Principles
     Intentia complies with Redovisningsraedet's recommendations for preparing
 interim reports and annual reports.  As of January 1, 2001, a number of new
 Swedish Financial Accounting Standards Council (Redovisningsradet)
 recommendations took effect.  These changes are part of a more thoroughgoing
 revision of Swedish accounting standards to comply with International
 Accounting Standards (IAS).  The changes will affect the accounting practices
 of many Swedish companies.  Given the complexities involved in implementing
 some of the changes, Redovisningsraedet decided in late 2000 to postpone them
 until January 1, 2002.  Among the areas covered by recommendations that took
 effect as of 2001 are income taxes, construction contracts and similar
 assignments, revenue, affiliated companies, earnings per share and interim
 reporting.  The areas covered by recommendations taking effect as of January
 2002 include consolidated financial statements, intangible assets, impairment
 of assets, and provisions for contingent liabilities.  Intentia's decision to
 follow all of these recommendations as of January 1, 2001 has affected the
 company's accounting and reporting practices.  The changes will affect
 Intentia's accounting practices, primarily in the areas of license revenue,
 product development and income taxes.  Following is a review of Intentia's
 fundamental accounting principles in these areas.
 
     License Revenue
     One basic prerequisite for Intentia to recognize a license revenue in
 earnings is that neither the license revenue nor its payment is conditional on
 a specific milestone in a project or on commitments other than the actual
 delivery of the license.  Agreements for which at least 80 percent of the
 total contracted license carries payment terms of 12 months or less are
 recognized in earnings, whereas agreements with longer times of payment are
 not recognized in earnings until they meet that criterion.  For Intentia to
 recognize a license revenue in earnings, a number of other basic conditions
 must be met.  The product being sold must be fully developed and delivery must
 have been made.  The purchaser cannot be entitled to return all or part of the
 license rights and it must be deemed probable that payment will be made.
 Delivery is considered to have been made once the customer has received the
 merchandise.
     In addition to the Movex system itself, Intentia sells upgrade rights that
 entitle its customers to obtain future releases of specific Movex application
 components.  However, the agreements that grant these rights do not entail any
 obligation on Intentia's part to develop those releases.  Despite the absence
 of such obligations, Intentia has decided to linearly report revenue related
 to this kind of agreement over the period of the agreement.
 
     Product Development
     According to Redovisningraedet's Recommendation 15, a development project
 must be capitalized if it meets certain criteria.  Intentia's development
 effort consists of three phases:  research, development and maintenance.  Only
 expenses that arise during the development phase will be capitalized and
 therefore appear as an asset in the balance sheet.  There are a number of
 criteria that must be met during the development phase for all or part of a
 project to appear in the balance sheet.  It must be technically feasible to
 turn the project into a marketable or internally usable product, and the
 project must be expected to entail financial benefits for Intentia.  Moreover,
 expenses for the intangible assets must be calculable and attributable to
 assets, and Intentia must be expected to have the resources required to
 complete the development effort.
     The acquisition value of the intangible asset is the sum of the expenses
 that arise as of the date that the asset first meets all of the above
 criteria.  Among the expenses that are capitalized and therefore included in
 the acquisition value are those for salaries and other employment-related
 personnel costs, as well as for materials, services and other costs directly
 related to the development phase.  Indirect expenses that are needed to
 produce the asset and that can be attributed to the asset in a consistent,
 reasonable manner will also be capitalized.
     The depreciation period for capitalized product development is based on
 the nature of the asset and will not exceed five years.
 
     Income Taxes
     Deferred tax is reported separately in the consolidated income statement.
 Deferred tax claims are reported as a fixed asset and deferred tax liabilities
 are reported as a provision.  Deferred tax claims attributable to deficit
 deductions are reported insofar as it is probable that the deductions can be
 applied against surpluses for future tax purposes.  Deficit deductions deemed
 as meeting these criteria totaled SEK 239 million at the end of the period.
 
     Impact on Intentia's Reported Earnings and Shareholders' Equity
     Intentia is revising its accounting principles in accordance with
 Redovisningsraedet's Recommendation 5 on the revision of accounting
 principles, including the adjustment of opening shareholders' equity.  For the
 sake of comparability, revenue recognition for 1998, 1999 and 2000 has been
 recalculated in accordance with the new principles.  That process normally
 involves the retroactive introduction of a new accounting principle and the
 adjustment of data for all comparison years.  However, Recommendation
 15 prohibits the application of this principle to intangible fixed assets.
 As a result, product development expenses for previous years have not been
 adjusted.
     In terms of Recommendation 9 on income taxes, Intentia has adjusted only
 the 1999 and 2000 comparison years, since it is deemed unfeasible to
 recalculate earlier years with sufficient accuracy.
 
 
 INCOME STATEMENT GROUP (SEK million)
 
                                   Jan-Mar        Full Year      Full Year
                               2001       2000 Apr '00-Mar '01  Jan-Dec 2000
 
     License revenue          238.0      255.7      986.7        1,004.5
     Consulting revenue       625.0      517.3    2,205.7        2,098.0
     Other revenue             16.3       57.3      102.0          143.0
     Net revenue              879.3      830.3    3,294.4        3,245.5
 
     Consulting cost         -522.5     -488.2   -1,951.9       -1,917.6
     Cost for license         -27.3      -33.5     -110.6         -116.8
     Cost for other revenues  -11.1      -44.6      -76.7         -110.3
     Gross earnings           318.4      264.0    1,155.2        1,100.8
 
     Other operating items net  3.5        5.8       26.8           29.2
 
     Product development
      expenses                -88.4     -110.0     -422.5         -444.1
     Sales and marketing
      expenses               -191.8     -175.9     -760.6         -744.7
     Administration expenses  -57.6      -62.4     -226.1         -231.0
     Operating earnings       -15.9      -78.5     -227.2         -289.8
 
     Financial income
      and expenses            -34.4       13.6     -158.3         -110.3
     Participation in
      associated companies'
      earnings                  0.2        0.1        0.4            0.3
     Earnings after
      financial items         -50.1      -64.8     -385.1         -399.8
 
     Earnings in Group
      companies the part
      of year they did
      not belong to the Group    --        1.0        2.7            3.7
     Earnings before tax      -50.1      -63.8     -382.4         -396.1
 
     Tax on profit/loss
      for the period            9.4       14.7       49.9           55.2
     Minority interest in
      profit/loss
      for the period           -1.7       -1.1       -3.3           -2.7
     Profit/loss
      for the period          -42.4      -50.2     -335.8         -343.6
 
     Earnings per share (SEK)
     Basic, average for period -1.6       -2.1      -13.6          -14.2
     Diluted, average
      for period               -0.4       -0.8       -8.4          -10.2
 
     Number of outstanding
      shares (thousand)
     Basic, end of period    29,173     24,191     29,173         24,311
     Basic, average
      for period             25,852     24,191     24,666         24,251
     Diluted, end of period  33,158     28,570     33,318         28,567
 
 
     BALANCE SHEET GROUP (SEK million)
 
                                              March 31            December 31
                                       2001            2000           2000
 
     Goodwill                          339.0           352.9         337.8
     Capitalized product development*   42.3            18.4          14.3
     Tangible fixed assets             251.8           242.0         245.4
     Financial fixed assets            423.9           302.9         420.8
     Total fixed assets              1,057.0           916.2       1,018.3
     Accounts receivable             1,148.9           950.8       1,266.5
     Other current assets              559.5           349.0         445.1
     Liquid funds                      622.2           591.1         400.9
     Total current assets            2,330.6         1,890.9       2,112.5
     Total assets                    3,387.6         2,807.1       3,130.8
     Stockholders' equity              467.9           412.0         133.0
     Minority interests                 15.6            10.3          13.0
     Convertible notes                 915.5           829.7         885.7
     Provisions                          1.3             4.8           1.1
     Interest bearing
      long-term liabilities             61.9           301.8          58.6
     Other long-term liabilities         7.4             7.7           6.8
     Interest bearing
      current liabilities               416.1           53.1         558.7
     Other current liabilities        1,501.9        1,187.7       1,473.9
     Total stockholders' equity,
      provisions and
      liabilities                     3,387.6        2,807.1       3,130.8
 
 
     CHANGE IN STOCKHOLDERS' EQUITY (SEK million)
 
                                            March 31             December 31
                                       2001         2000            2000
 
     Stockholders' equity
      at beginning of period          355.2        641.9           641.9
     Effect of changed
      accounting principles          -222.2       -171.2          -171.2
     Stockholders' equity
      after changes in
      accounting principles           133.0        470.7           470.7
     New stock issue/
      Retransfer of options           389.7         17.3            48.1
     Profit/loss for the period       -42.4        -50.2          -343.6
     Translation differences
      for the period                  -12.4        -25.8           -42.2
     Stockholders' equity
      at end of period                467.9        412.0           133.0
 
 
     CASH FLOW ANALYSIS GROUP (SEK million)
 
                                  Jan-Mar          Full Year      Full Year
                               2001      2000   Apr '00-Mar '01  Jan-Dec 2000
     Cash flow before change
      in working capital      -30.5     -73.0       -258.5         -301.0
     Change in
      working capital          69.9     -43.2       -112.3         -225.4
     Cash flow
      from operations          39.4    -116.2       -370.8         -526.4
 
     Cash flow
      from investments        -51.0     -26.4        -83.4          -58.8
 
     Cash flow
      from financing          228.3      15.3        475.8          262.8
 
     Cash flow for
      the period              216.7    -127.3         21.6         -322.4
 
     Liquid funds,
      beginning of period     401.0     726.6        591.1          726.6
     Exchange rate
      difference on
      liquid funds              4.5      -8.2          9.5           -3.2
     Liquid funds,
      end of period           622.2     591.1        622.2          401.0
 
 
     DEVELOPMENT PER QUARTER
 
                         Net            License     Operating earnings
                       revenue          revenue     before depreciation
     1999    Q2         847.6            210.4            -40.2
             Q3         701.8            162.9            -41.1
             Q4         825.9            198.3            -19.5
     2000    Q1         830.3            255.7            -45.3
             Q2         780.2            216.9            -58.3
             Q3         657.8            185.3            -82.9
             Q4         977.2            346.6             36.9
     2001    Q1         879.3            238.0             16.4
 
                      Operating      Earnings after      Number of
                       earnings     financial items     employees*
 
     1999    Q2         -68.8            -78.7            3,229
             Q3         -71.1            -71.3            3,337
             Q4         -54.9            -64.4            3,360
     2000    Q1         -78.5            -64.8            3,416
             Q2         -90.1           -128.3            3,366
             Q3        -111.8           -150.6            3,243
             Q4          -9.4            -56.1            3,224
     2001    Q1         -15.9            -50.1            3,247
 
     * employees at end of period
 
 
     FINANCIAL RATIOS
                                      Jan-Mar        Full Year      Full Year
                                 2001        2000  Apr '00-Mar'01  Jan-Dec 2000
 
     OPERATIONAL
     Growth over previous year
       License revenue            -7%         26%        19%           30%
       Consulting revenue         21%         11%         1%           -1%
       Net revenue                 6%         18%         3%            5%
       Orders received license    20%         33%        47%           53%
       Order backlog license      55%         -3%        55%           37%
 
     Margins
       Consulting margin          16%          6%        12%            9%
       Gross margin               36%         32%        35%           34%
       Operating margin           -2%         -9%        -7%           -9%
       Net profit margin          -5%         -6%       -10%          -11%
 
     Expenses and efficiency
       Product development/license
        revenue                   37%         43%        43%           44%
       Sales and marketing/license
        revenue                   81%         69%        77%           74%
       Administration/net revenue  7%          8%         7%            7%
 
       Average number of
        employees for period    3,235       3,409      3,288         3,380
       Revenue per employee       272         244      1,028           960
       Added value per employee   180         140        653           561
       Personnel expenses per
        employee                  175         154        681           607
 
     FINANCIAL POSITION
     Working capital 4
      quarters/net revenue
      12 months                    7%          4%         7%            6%
     Debt/equity ratio
      (excluding convertible
      notes)                     -0.3        -0.6       -0.3           1.5
     Average capital employed   1,472       1,447      1,364         1,358
     Share of riskbearing
      capital                     51%         58%        51%           38%
     Equity/assets ratio          14%         15%        14%            5%
     Cash flow/net revenue        -1%        -17%       -14%          -18%
 
     RETURN
     On average capital
      employed                    -1%         -5%       -17%          -19%
     On average stockholders'
      equity                      -9%        -12%       -72%         -258%
 
     NET INDEBTEDNESS (excluding convertible notes)
     At beginning of period    -216.3       374.8      236.2         374.8
     At end of period           144.1       236.2      144.1        -216.3
 
     Cash flow for the period   216.7      -127.3       21.6        -322.4
     Funds borrowed               0.0         1.5      558.6         560.1
     Amortization of loans     -155.7        -3.5     -487.9        -345.4
 
     SHARE DATA
     Riskbearing capital per
      share at end of period     48.0        51.9       48.0          42.5
     Stockholders' equity per
      share at end of period     16.0        17.0       16.0           5.5
     Cash flow per average
      number of shares, basic    -0.4        -5.8      -17.6         -24.1
 
 

SOURCE Intentia International AB
    STOCKHOLM, Sweden, April 25 /PRNewswire/ -- The following was released
 today by Intentia:
 
     *  Net revenue totaled SEK 879 million (830), up 6 percent from the first
        three months of 2000.
 
     *  License orders continued to grow to SEK 294 million (245) for the
        first quarter, an increase of 20 percent. The backlog of orders was
        SEK 616 million (397) at the end of the quarter. License revenue was
        SEK 238 million (256), a decrease of 7 percent.
 
     *  Consulting revenue continued to improve as a result of ongoing growth
        in the number of implementation projects.  Consulting revenue during
        the period totaled SEK 625 million (517), up 21 percent.
        The consulting margin rose further to 16 percent (6) for the quarter.
 
     *  Costs remained stable.  Employees numbered 3,247 (3,416) at the end of
        the quarter, an increase of 23 employees since the beginning of the
        year.
 
     *  Operating earnings improved to SEK -16 million (-79) for the period.
 
     *  Cash flow after investments rose to SEK -12 million (-143),
        an improvement of SEK 131 million over the first quarter of 2000.
 
     *  Intentia's market position continued to improve.  The company received
        a number of large orders during the first quarter from customers such
        as Messier, Elkem and Peacock.
 
     *  During the quarter, Intentia carried out the issue of new shares
        announced previously.  The issue was fully subscribed and raised
        SEK 399 million for the company before underwriting expenses.
 
     As of January 1, 2001, a number of new Swedish Financial Accounting
 Standards Council (Redovisningsraedet) recommendations took effect.  These
 changes are part of a more thoroughgoing revision of Swedish accounting
 standards to comply with International Accounting Standards (IAS).  Among the
 areas covered by recommendations that took effect as of 2001 are income taxes,
 construction contracts and similar assignments, revenue, affiliated companies,
 earnings per share and interim reporting.  The areas covered by
 recommendations taking effect as of January 2002 include consolidated
 financial statements, intangible assets, impairment of assets and provisions
 for contingent liabilities.  Intentia's previously announced decision to
 follow all of these recommendations as of January 1, 2001 has affected the
 company's accounting and reporting practices.  A more detailed description of
 the accounting principles with which Intentia complies appears on page 8 of
 this interim report.
 
     Group Progress
 
     Intentia's Assessment of the Market
     Intentia's progress this year will be shaped by the state of the IT market
 in general, the robustness of the market for enterprise systems, the volume of
 ongoing procurement projects and Intentia's competitive strength.
     The business cycle turned downward in the first quarter.  A number of
 companies, particularly in the IT sector, suffered the consequences.  Intentia
 believes that the impact was particularly heavy on IT companies, such as
 Internet consulting firms and best-of-breed suppliers, that are incorrectly
 positioned in terms of either product or market.  When it comes to the market
 for enterprise systems, the effect of the downturn appears to have been less
 severe.  Suppliers in that market satisfy their customers' more fundamental
 needs, particularly those related to supporting and strengthening the
 manufacturing sector's core processes.  An economic slowdown can have both a
 positive and negative impact on this segment of the market.  To the extent
 that the downturn frees up internal resources, some companies will move up
 their investment plans.  Meanwhile, other companies will break off procurement
 projects either temporarily or permanently.
     Insofar as the slowdown is detrimental to the enterprise systems market in
 general, Intentia believes that its relative position in the sector will
 improve.  This optimism is based on Intentia's many ongoing procurement
 projects and strong competitive advantages in its principal market of
 medium-sized businesses and, to a growing extent, big companies.
 
     License and Consulting Revenue During the Period
     New license orders totaled SEK 294 million (245) for the quarter, an
 increase of 20 percent from the same period in 2000.  Orders for the quarter
 were weakened by the large number of contracts concluded in the fourth quarter
 of 2000.  There was an opposite dynamic in the first quarter of 2000, which
 benefited from the low number of contracts concluded during the fourth quarter
 of 1999.  Among the companies with which Intentia signed agreements in the
 first quarter were Elkem, Gucci, Messier, Peacock, Sapa, SMC, Syltone and
 Tine.  Large customers, both those with which Intentia has concluded
 agreements and those with which procurement projects are under way, continue
 to increase in number.  The backlog of orders expanded further to
 SEK 616 million (397), an increase of 55 percent, at the end of the period.
 The trend confirms the strength of Intentia's broad offering for
 e-collaboration, which is working in tandem with the company's global
 implementation organization to forge market leadership.  License revenue for
 the quarter was SEK 238 million (256), a 7 percent decrease from the same
 period of 2000.
     The large number of ongoing implementation projects continued to boost
 consulting revenue.  Ongoing implementation projects totaled SEK 625 million
 (517), up 21 percent from the first quarter of 2000.  Net revenue totaled
 SEK 879 million (830) for the quarter, an increase of 6 percent from the same
 period of 2000.
 
     Greater Efficiency Leads to Improved Profitability
     In order to restore profitability, Intentia launched a short-term
 cost-effectiveness program in 2000.  The program, which includes a short-term
 commitment to pursuing growth within the company's existing structure until
 efficiency and economies of scale have improved, continued successfully in the
 first quarter.  Parallel to these developments, Intentia is building a
 structure that will permit a combination of ongoing growth and high efficiency
 throughout its organization.  Among the areas affected by this effort are
 marketing, product, administration and organization.
     Intentia carried out the initial stage of its reorganization during the
 first quarter.  The objective is to arrange and run sales and consulting
 operations according to business units.  Since each unit will be sized for the
 greatest possible efficiency, it may comprise a country, part of a country or
 even an international entity.  The business units will be coordinated by a
 series of regional organizations, whose primary task will be to support their
 particular units.  In that way, each unit will be able to focus on sales and
 implementation, while the regional organizations assume responsibility for
 support processes.  The approach will generate economies of scale and earmark
 resources for the regional organizations with which they can optimize
 coordination.
     The new structure started off in the first quarter with four European
 regions:  Northern Europe (Sweden, Norway, Finland and Denmark), Central
 Europe (Germany, Austria, Switzerland, Poland, the Czech Republic and
 Hungary), Northwestern Europe (Great Britain, Ireland, The Netherlands,
 Belgium and South Africa) and Southern Europe (France, Spain, Portugal, Italy
 and Israel).  The need to expand infrastructure is minimized as the
 organization has been designed to more cost-effectively handle volume growth.
     The profitability restoration plan laid out in early 2000 is intended to
 ensure that Intentia will continue increasing its license revenue within the
 basic constraints of its current product development and sales organization.
 The target is for ongoing efficiency improvements and an increased number of
 implementation projects to raise the consulting margin to 20 percent.
 Intentia is carrying on in accordance with that plan.
     The organization remained stable in the first quarter.  Employees numbered
 3,247 at the end of the quarter, an increase of 23 employees for the period.
 The organization grew in selected areas where more personnel were deemed
 necessary to satisfy demand.  Consulting costs and indirect expenses combined
 increased by a slight 3 percent, the capitalization of product development
 contributing more than 3 percentage points.  These costs totaled
 SEK 860 million (837).
     The consulting margin increased for the third straight quarter.
 The improvement reflected good capacity utilization, further productivity
 enhancements and more favorable contract terms.  The consulting margin for the
 first quarter was 16 percent (6).
     Owing primarily to more intense marketing efforts, sales and marketing
 costs rose modestly to SEK 192 million (176).  Product development expenses
 were SEK 88 million (110), positively affected by the capitalization of
 SEK 30 million during the period.  Administrative costs totaled SEK 58 million
 (62).
 
     Net Revenue Increased for All Regions
     The order backlog has improved in all regions.  For the Northern European
 region, net revenue was in line with the first quarter of 2000 at
 SEK 412 million, while the consulting revenue growth of 13 percent offset
 lower license sales.  Central Europe had a positive development, with net
 revenue rising by 32 percent to SEK 118 million.  At 84 percent, license
 revenue growth was particularly strong.  Spurred chiefly by consulting
 revenue, Northwestern Europe also posted solid net revenue increases.
 Northwestern Europe's net revenue totaled SEK 124 million, an increase of
 29 percent.  Net revenue for Southern Europe was up by 19 percent to
 SEK 149 million, higher consulting revenue offsetting lower license sales for
 the period.  Net revenue in the Americas rose by 13 percent to SEK 53 million
 for the quarter.  The utilization of consulting capacity improved
 considerably.  Net revenue in the Asia Pacific region increased by 19 percent
 to SEK 61 million on the back of stronger consulting and license sales.
 
     Operating Earnings Continue to Grow In Line with Intentia's Strategy
     The first quarter is normally weak in terms of earnings.  This is even
 more true of the third quarter, when license volumes are insufficient to cover
 costs.  The results for the first quarter were consistent with Intentia's
 strategy for making a profit in 2001.  Operating earnings improved for the
 quarter by SEK 63 million to SEK -16 million (-79).  Translation differences
 upon consolidation had a positive impact on net revenue growth, while
 operating earnings were negatively affected by SEK 2 million.
 
     The Depreciation of the Krona Had a Substantial Negative Impact
      On Financial Items
     Depreciation significantly lowered the valuation of Intentia's convertible
 debenture loan.  The exchange rate effects totaled SEK -30 million, as opposed
 to a positive translation effect of SEK 27 million for the first quarter of
 2000.  Total financial items declined from the same period of 2000 by
 SEK 48 million to SEK -34 million (14).  Intentia's loss after financial items
 was SEK -50 million (-65).  Given a tax revenue of SEK 9 million
 (15), Intentia's loss after tax was SEK -42 million (-50).
 
     Progress from April 2000 through March 2001
     From April 2000 through March 2001, net revenue increased to
 SEK 3,294 million, as opposed to SEK 3,206 million during the same period of
 1999-2000.  License orders totaled SEK 1,206 million (817), while license
 revenue was SEK 987 million (827).  Operating earnings for the period improved
 to SEK -227 million (-273).  Excluding items affecting comparability in the
 fourth quarter of 1999, operating earnings rose by SEK 102 million.  Largely
 due to the impact of the depreciation of the krona on the convertible
 debenture loan, financial items weakened considerably, leading to a loss after
 financial items of SEK -385 million (-279).
 
     Product
     As traditional companies take increasing advantage of new business models
 to strengthen their competitiveness, choosing the suppliers of their strategic
 enterprise systems becomes even more critical.  These days, the choice is
 based more than ever on the ability to deliver the most complete possible
 solution.  Intentia's product and technological leadership is enabling it to
 improve its already strong market position.  Intentia is continuing to reap
 the benefits of its extensive product development investments.  For instance,
 the company is further enhancing the functionality of applications such as
 Supply Chain Management, e-business, corporate portals and marketplace
 technology.  Intentia is also continuing to work on ensuring that customers
 are able to employ these collaborative business models to take full advantage
 of the Internet.
     The development of Movex V12, the next big release, entered its final
 stage in the first quarter and will be launched in the second quarter.
 The launch of Intentia's Java-based NextGen version of Movex is proceeding
 according to plan and has garnered 60 contracts so far.  As a further step in
 strengthening its position with big companies, Intentia signed a strategic
 global agreement in the first quarter with Manhattan Associates, the world's
 leading supplier of warehouse management software to big international firms.
     Intentia's focus remains on key strategic sectors.  Intentia's acquisition
 of a 49 percent stake in Scase ASA, a Norwegian software manufacturer, makes
 it the first supplier of enterprise systems for the food industry that offers
 integrated origin marking throughout the supply chain, from livestock to the
 grocery shelves.
 
     Issue of New Shares Provides Firmer Financial Foundation
     During the first quarter, Intentia successfully carried out its previously
 announced issue of new shares with preferential rights for current
 stockholders.  As a result, the company raised SEK 399 million before
 underwriting expenses of SEK 13 million, which were charged directly to the
 restricted reserves.  The issue boosted Intentia's equity/assets ratio to
 14 percent at the end of the first quarter and its proportion of risk-bearing
 capital to 51 percent.  Intentia has thereby safeguarded its ability to
 exploit profitably the growth potential generated by its product development
 investments and geographic expansion of recent years.
 
     Cash Flow, Capital and Financial Position
     Cash flow after investments improved considerably in the first quarter to
 SEK -12 million (-143).  The increase reflects higher earnings, as well as
 less tied-up working capital, resulting primarily from lower accounts
 receivable.  Working capital tied up totaled SEK 207 million (112).
 Total investments were SEK 51 million (26), SEK 30 million of which was due to
 capitalization of product development.
     The Group's liquidity increased to SEK 622 million (591).  The issue of
 new shares contributed SEK 386 million to liquidity, while SEK 163 million in
 loans were amortized during the quarter.
     The proportion of shareholders' funds was 51 percent (57), and the
 equity/assets ratio was 14 percent (15).
 
     Parent Company
     The Parent Company's net revenue was SEK 8 million (17), while the loss
 after financial items was SEK -54 million (12).  Investments totaled
 SEK 0 million (0) and liquidity was SEK 495 million (465).  Excluding the
 convertible notes, borrowings were SEK 402 million (260).  The issue of
 4,862,200 new shares increased the Parent Company's shareholders' equity by
 SEK 386 million.  Of the increase, SEK 49 million went to capital stock and
 the remaining SEK 337 million was transferred to the restricted reserves.
 
     Outlook for 2001
     The unpredictability of the business cycle for the remainder of 2001 could
 put a damper on the enterprise systems market, which could also affect
 Intentia.  However, based on Intentia's market position and competitiveness,
 we expect to grow more quickly than our competitors.  Thus, we see no reason
 to revise our expectations of a profitable year combined with substantially
 improved cash flow.
 
     Stockholm, April 25, 2001
 
     Bjorn Algkvist
     President and Chief Executive Officer
 
 
     Accounting Principles
     This interim report was prepared in accordance with the Annual Accounts
 Act and the recommendations of the Swedish Financial Accounting Standards
 Council (Redovisningsraedet).  Intentia's accounting principles have changed
 since its 2000 annual report in compliance with Redovisningsraedet's
 recommendations, parts of which took effect on January 1, 2001 and parts of
 which will take effect on January 1, 2002.  Comparison figures have been
 revised according to the recommendations of Redovisningsraedet.  For a more
 detailed description, see below.
 
     Accounting Principles
     Intentia complies with Redovisningsraedet's recommendations for preparing
 interim reports and annual reports.  As of January 1, 2001, a number of new
 Swedish Financial Accounting Standards Council (Redovisningsradet)
 recommendations took effect.  These changes are part of a more thoroughgoing
 revision of Swedish accounting standards to comply with International
 Accounting Standards (IAS).  The changes will affect the accounting practices
 of many Swedish companies.  Given the complexities involved in implementing
 some of the changes, Redovisningsraedet decided in late 2000 to postpone them
 until January 1, 2002.  Among the areas covered by recommendations that took
 effect as of 2001 are income taxes, construction contracts and similar
 assignments, revenue, affiliated companies, earnings per share and interim
 reporting.  The areas covered by recommendations taking effect as of January
 2002 include consolidated financial statements, intangible assets, impairment
 of assets, and provisions for contingent liabilities.  Intentia's decision to
 follow all of these recommendations as of January 1, 2001 has affected the
 company's accounting and reporting practices.  The changes will affect
 Intentia's accounting practices, primarily in the areas of license revenue,
 product development and income taxes.  Following is a review of Intentia's
 fundamental accounting principles in these areas.
 
     License Revenue
     One basic prerequisite for Intentia to recognize a license revenue in
 earnings is that neither the license revenue nor its payment is conditional on
 a specific milestone in a project or on commitments other than the actual
 delivery of the license.  Agreements for which at least 80 percent of the
 total contracted license carries payment terms of 12 months or less are
 recognized in earnings, whereas agreements with longer times of payment are
 not recognized in earnings until they meet that criterion.  For Intentia to
 recognize a license revenue in earnings, a number of other basic conditions
 must be met.  The product being sold must be fully developed and delivery must
 have been made.  The purchaser cannot be entitled to return all or part of the
 license rights and it must be deemed probable that payment will be made.
 Delivery is considered to have been made once the customer has received the
 merchandise.
     In addition to the Movex system itself, Intentia sells upgrade rights that
 entitle its customers to obtain future releases of specific Movex application
 components.  However, the agreements that grant these rights do not entail any
 obligation on Intentia's part to develop those releases.  Despite the absence
 of such obligations, Intentia has decided to linearly report revenue related
 to this kind of agreement over the period of the agreement.
 
     Product Development
     According to Redovisningraedet's Recommendation 15, a development project
 must be capitalized if it meets certain criteria.  Intentia's development
 effort consists of three phases:  research, development and maintenance.  Only
 expenses that arise during the development phase will be capitalized and
 therefore appear as an asset in the balance sheet.  There are a number of
 criteria that must be met during the development phase for all or part of a
 project to appear in the balance sheet.  It must be technically feasible to
 turn the project into a marketable or internally usable product, and the
 project must be expected to entail financial benefits for Intentia.  Moreover,
 expenses for the intangible assets must be calculable and attributable to
 assets, and Intentia must be expected to have the resources required to
 complete the development effort.
     The acquisition value of the intangible asset is the sum of the expenses
 that arise as of the date that the asset first meets all of the above
 criteria.  Among the expenses that are capitalized and therefore included in
 the acquisition value are those for salaries and other employment-related
 personnel costs, as well as for materials, services and other costs directly
 related to the development phase.  Indirect expenses that are needed to
 produce the asset and that can be attributed to the asset in a consistent,
 reasonable manner will also be capitalized.
     The depreciation period for capitalized product development is based on
 the nature of the asset and will not exceed five years.
 
     Income Taxes
     Deferred tax is reported separately in the consolidated income statement.
 Deferred tax claims are reported as a fixed asset and deferred tax liabilities
 are reported as a provision.  Deferred tax claims attributable to deficit
 deductions are reported insofar as it is probable that the deductions can be
 applied against surpluses for future tax purposes.  Deficit deductions deemed
 as meeting these criteria totaled SEK 239 million at the end of the period.
 
     Impact on Intentia's Reported Earnings and Shareholders' Equity
     Intentia is revising its accounting principles in accordance with
 Redovisningsraedet's Recommendation 5 on the revision of accounting
 principles, including the adjustment of opening shareholders' equity.  For the
 sake of comparability, revenue recognition for 1998, 1999 and 2000 has been
 recalculated in accordance with the new principles.  That process normally
 involves the retroactive introduction of a new accounting principle and the
 adjustment of data for all comparison years.  However, Recommendation
 15 prohibits the application of this principle to intangible fixed assets.
 As a result, product development expenses for previous years have not been
 adjusted.
     In terms of Recommendation 9 on income taxes, Intentia has adjusted only
 the 1999 and 2000 comparison years, since it is deemed unfeasible to
 recalculate earlier years with sufficient accuracy.
 
 
 INCOME STATEMENT GROUP (SEK million)
 
                                   Jan-Mar        Full Year      Full Year
                               2001       2000 Apr '00-Mar '01  Jan-Dec 2000
 
     License revenue          238.0      255.7      986.7        1,004.5
     Consulting revenue       625.0      517.3    2,205.7        2,098.0
     Other revenue             16.3       57.3      102.0          143.0
     Net revenue              879.3      830.3    3,294.4        3,245.5
 
     Consulting cost         -522.5     -488.2   -1,951.9       -1,917.6
     Cost for license         -27.3      -33.5     -110.6         -116.8
     Cost for other revenues  -11.1      -44.6      -76.7         -110.3
     Gross earnings           318.4      264.0    1,155.2        1,100.8
 
     Other operating items net  3.5        5.8       26.8           29.2
 
     Product development
      expenses                -88.4     -110.0     -422.5         -444.1
     Sales and marketing
      expenses               -191.8     -175.9     -760.6         -744.7
     Administration expenses  -57.6      -62.4     -226.1         -231.0
     Operating earnings       -15.9      -78.5     -227.2         -289.8
 
     Financial income
      and expenses            -34.4       13.6     -158.3         -110.3
     Participation in
      associated companies'
      earnings                  0.2        0.1        0.4            0.3
     Earnings after
      financial items         -50.1      -64.8     -385.1         -399.8
 
     Earnings in Group
      companies the part
      of year they did
      not belong to the Group    --        1.0        2.7            3.7
     Earnings before tax      -50.1      -63.8     -382.4         -396.1
 
     Tax on profit/loss
      for the period            9.4       14.7       49.9           55.2
     Minority interest in
      profit/loss
      for the period           -1.7       -1.1       -3.3           -2.7
     Profit/loss
      for the period          -42.4      -50.2     -335.8         -343.6
 
     Earnings per share (SEK)
     Basic, average for period -1.6       -2.1      -13.6          -14.2
     Diluted, average
      for period               -0.4       -0.8       -8.4          -10.2
 
     Number of outstanding
      shares (thousand)
     Basic, end of period    29,173     24,191     29,173         24,311
     Basic, average
      for period             25,852     24,191     24,666         24,251
     Diluted, end of period  33,158     28,570     33,318         28,567
 
 
     BALANCE SHEET GROUP (SEK million)
 
                                              March 31            December 31
                                       2001            2000           2000
 
     Goodwill                          339.0           352.9         337.8
     Capitalized product development*   42.3            18.4          14.3
     Tangible fixed assets             251.8           242.0         245.4
     Financial fixed assets            423.9           302.9         420.8
     Total fixed assets              1,057.0           916.2       1,018.3
     Accounts receivable             1,148.9           950.8       1,266.5
     Other current assets              559.5           349.0         445.1
     Liquid funds                      622.2           591.1         400.9
     Total current assets            2,330.6         1,890.9       2,112.5
     Total assets                    3,387.6         2,807.1       3,130.8
     Stockholders' equity              467.9           412.0         133.0
     Minority interests                 15.6            10.3          13.0
     Convertible notes                 915.5           829.7         885.7
     Provisions                          1.3             4.8           1.1
     Interest bearing
      long-term liabilities             61.9           301.8          58.6
     Other long-term liabilities         7.4             7.7           6.8
     Interest bearing
      current liabilities               416.1           53.1         558.7
     Other current liabilities        1,501.9        1,187.7       1,473.9
     Total stockholders' equity,
      provisions and
      liabilities                     3,387.6        2,807.1       3,130.8
 
 
     CHANGE IN STOCKHOLDERS' EQUITY (SEK million)
 
                                            March 31             December 31
                                       2001         2000            2000
 
     Stockholders' equity
      at beginning of period          355.2        641.9           641.9
     Effect of changed
      accounting principles          -222.2       -171.2          -171.2
     Stockholders' equity
      after changes in
      accounting principles           133.0        470.7           470.7
     New stock issue/
      Retransfer of options           389.7         17.3            48.1
     Profit/loss for the period       -42.4        -50.2          -343.6
     Translation differences
      for the period                  -12.4        -25.8           -42.2
     Stockholders' equity
      at end of period                467.9        412.0           133.0
 
 
     CASH FLOW ANALYSIS GROUP (SEK million)
 
                                  Jan-Mar          Full Year      Full Year
                               2001      2000   Apr '00-Mar '01  Jan-Dec 2000
     Cash flow before change
      in working capital      -30.5     -73.0       -258.5         -301.0
     Change in
      working capital          69.9     -43.2       -112.3         -225.4
     Cash flow
      from operations          39.4    -116.2       -370.8         -526.4
 
     Cash flow
      from investments        -51.0     -26.4        -83.4          -58.8
 
     Cash flow
      from financing          228.3      15.3        475.8          262.8
 
     Cash flow for
      the period              216.7    -127.3         21.6         -322.4
 
     Liquid funds,
      beginning of period     401.0     726.6        591.1          726.6
     Exchange rate
      difference on
      liquid funds              4.5      -8.2          9.5           -3.2
     Liquid funds,
      end of period           622.2     591.1        622.2          401.0
 
 
     DEVELOPMENT PER QUARTER
 
                         Net            License     Operating earnings
                       revenue          revenue     before depreciation
     1999    Q2         847.6            210.4            -40.2
             Q3         701.8            162.9            -41.1
             Q4         825.9            198.3            -19.5
     2000    Q1         830.3            255.7            -45.3
             Q2         780.2            216.9            -58.3
             Q3         657.8            185.3            -82.9
             Q4         977.2            346.6             36.9
     2001    Q1         879.3            238.0             16.4
 
                      Operating      Earnings after      Number of
                       earnings     financial items     employees*
 
     1999    Q2         -68.8            -78.7            3,229
             Q3         -71.1            -71.3            3,337
             Q4         -54.9            -64.4            3,360
     2000    Q1         -78.5            -64.8            3,416
             Q2         -90.1           -128.3            3,366
             Q3        -111.8           -150.6            3,243
             Q4          -9.4            -56.1            3,224
     2001    Q1         -15.9            -50.1            3,247
 
     * employees at end of period
 
 
     FINANCIAL RATIOS
                                      Jan-Mar        Full Year      Full Year
                                 2001        2000  Apr '00-Mar'01  Jan-Dec 2000
 
     OPERATIONAL
     Growth over previous year
       License revenue            -7%         26%        19%           30%
       Consulting revenue         21%         11%         1%           -1%
       Net revenue                 6%         18%         3%            5%
       Orders received license    20%         33%        47%           53%
       Order backlog license      55%         -3%        55%           37%
 
     Margins
       Consulting margin          16%          6%        12%            9%
       Gross margin               36%         32%        35%           34%
       Operating margin           -2%         -9%        -7%           -9%
       Net profit margin          -5%         -6%       -10%          -11%
 
     Expenses and efficiency
       Product development/license
        revenue                   37%         43%        43%           44%
       Sales and marketing/license
        revenue                   81%         69%        77%           74%
       Administration/net revenue  7%          8%         7%            7%
 
       Average number of
        employees for period    3,235       3,409      3,288         3,380
       Revenue per employee       272         244      1,028           960
       Added value per employee   180         140        653           561
       Personnel expenses per
        employee                  175         154        681           607
 
     FINANCIAL POSITION
     Working capital 4
      quarters/net revenue
      12 months                    7%          4%         7%            6%
     Debt/equity ratio
      (excluding convertible
      notes)                     -0.3        -0.6       -0.3           1.5
     Average capital employed   1,472       1,447      1,364         1,358
     Share of riskbearing
      capital                     51%         58%        51%           38%
     Equity/assets ratio          14%         15%        14%            5%
     Cash flow/net revenue        -1%        -17%       -14%          -18%
 
     RETURN
     On average capital
      employed                    -1%         -5%       -17%          -19%
     On average stockholders'
      equity                      -9%        -12%       -72%         -258%
 
     NET INDEBTEDNESS (excluding convertible notes)
     At beginning of period    -216.3       374.8      236.2         374.8
     At end of period           144.1       236.2      144.1        -216.3
 
     Cash flow for the period   216.7      -127.3       21.6        -322.4
     Funds borrowed               0.0         1.5      558.6         560.1
     Amortization of loans     -155.7        -3.5     -487.9        -345.4
 
     SHARE DATA
     Riskbearing capital per
      share at end of period     48.0        51.9       48.0          42.5
     Stockholders' equity per
      share at end of period     16.0        17.0       16.0           5.5
     Cash flow per average
      number of shares, basic    -0.4        -5.8      -17.6         -24.1
 
 SOURCE  Intentia International AB