CEO's comments 2010

Fouriertransform – an established player in the Swedish automotive cluster

As we move into 2011, however, there remain many uncertainties that could curb growth and profitability. Following a thorough market analysis of the global macro trends in the 3 Our business activities 2010 CEO 's comments automotive sector we have identified a number of particularly attractive segments, and specifically those for which the Swedish industry is well positioned.

The main trends within the automotive industry are the developments that are currently taking place within the areas of Sustainable Vehicles, Smart Vehicles and More Efficient Production. What makes these particularly attractive to Sweden is that Sweden already has top-level expertise in these areas, and consequently there is the potential for Swedish industry to continue to assert itself well internationally in the future. The investments made by Fouriertransform to date are all within the categories of Sustainable Vehicles and More Efficient Production, including advanced energy solutions, battery and fuel cell technology, reduced friction losses and transmission efficiency.

Naturally Fouriertransform will also continue to be open to investment proposals within other areas that we have identified in our strategic analysis work.

The year’s rapid build-up of the company’s organization and processes has enabled Fouriertransform’s deal flow to be processed efficiently. Around 250 applications have been processed since the establishment of the company and a number of meetings with entrepreneurs have been held during the year. Our applications portfolio now contains 50 applications, 20 of which are being investigated with a view to investment.

From an investment perspective a further positive sign is that towards the end of the year Swedish vehicle manufacturers appeared more willing to make investments. Fouriertransform has received suggestions from a number of companies proposing participation in the restructuring or spin-off of growth-phase and mature operations. Fouriertransform’s decision to form a company, Vicura AB, with key personnel from Saab Automobile’s transmissions development department is an example of this. This investment, which took place in January 2011, means unique know-how in this area will be retained in Sweden.

After just over a year as CEO of Fouriertransform I have great confidence that we have a company that is able to meet the needs for financing investments and restructuring the Swedish automotive industry in a satisfactory way. An important element in this is the extensive industrial and financial expertise that the company has been privileged to recruit.

In addition, we have a strong external network of experienced industry professionals with sound expertise who will make a valuable contribution, particularly in their positions on the boards of the portfolio companies, to good shareholder governance and to making all our investments more commercially viable.

After some initial uncertainty in the media concerning our role, Fouriertransform is today seen as a respected player in the Swedish market. We now regard ourselves as being part of the Swedish automotive cluster and will be able to play a long-term industrial role that will help enhance its competitiveness.

Stockholm, March 17, 2011
Per Nordberg
CEO