Helsinki, Finland, 2016-02-03 08:45 CET (GLOBE NEWSWIRE) --
Norvestia Oyj Financial statement release 3 February 2016 at 9:45
NORVESTIA’S FINANCIAL STATEMENT RELEASE FOR 2015
The result of the Group amounted to EUR 12.0 million in 2015 (EUR 5.4 million in 2014).
Earnings per share was EUR 0.79 (0.35).
Trading gains and losses were EUR 15.5 million (6.6).
Net Asset Value (dividend-adjusted) increased by 9.4% (4.0%).
Amended Net Asset Value (dividend-adjusted) increased by 17.3% (4.4%).
The Board proposes that EUR 0.79 be distributed as dividend (0.30).
CAPITAL MARKETS
European stock markets saw three distinct trends in 2015. During the first months of the year share prices rose strongly, with the OMX Helsinki CAP Yield Index gaining by nearly 25%. In April, shares took a tumble, and continued to fall for over five months. By the end of September, nearly all gains in share prices since the beginning of the year had been wiped out. After this, shares rallied, and in October–November prices rose sharply. Thanks to this upturn, 2015 turned out to be an altogether favorable year on the stock markets. The value of the OMX Helsinki CAP Yield Index increased by 15.9% during 2015.
There were several factors behind the strong fluctuations in share prices of which the decisions of the European Central Bank (ECB) were most central. At the beginning of the year the ECB introduced heavy measures to reflate the economy and initiated a program of EUR 60 million monthly support purchases on the bond markets. This had a stimulating effect on the markets and share prices rose sharply. As the second quarter of the year began, the structural problems of the Eurozone that have continued for years, re-emerged. The economic situation and debt negotiations in Greece culminated during the quarter, dampening sentiment on the stock market, forcing prices down.
In October, the ECB intervened again and announced that it would further increase liquidity if growth in Europe remained sluggish. This was greeted favorably on the capital markets and share prices once again rebounded towards the end of the year.
The basic situation in the Eurozone remained largely unchanged during 2015. The interest level of government bonds considered risk-free is still at a record low. For example, the interest rate of German government bonds was negative at the turn of the year all the way to a five-year maturity. This is exceptional, and illustrates the structural difficulties in the Eurozone.
Despite the ECB’s extensive recovery measures economic growth in the Eurozone has been somewhat modest. Unfortunately this has been the case for almost ten years. According to figures from the European Commission, the Eurozone economy grew by 1.6% in 2015 and is forecast to grow by 1.8% in 2016. During the last few years, Finland’s economic growth has presented a ground level in the area. In 2015 the Finnish economic growth was 0.1% and in 2016 it is forecast to be 0.8%.
Other indicators also suggest weakness in the euro economy. Inflation in the Eurozone has remained near zero which is well below the ECB’s long-term target of 2%. Unemployment remains a major challenge, and the area’s resources are being wasted. Joblessness is stuck at over 10% and in some member states it exceeds even 20%. When this is combined with the wave of immigrants from outside Europe which culminated during 2015, it becomes clear that the overall situation in the Eurozone is still far from rosy, and the outlook for 2016 is similarly guarded.
The situation outside Europe looks better. The annual growth rate of the US economy is currently approximately 2.5% and several economic indicators are stronger than those in the Eurozone. The US Federal Reserve System (FED) raised its key interest rate in December for the first time in over ten years. This is a good signal and hopefully the long period of low growth in the USA is now coming to an end. Economic growth in China slowed somewhat down during 2015, but stood at a healthy level of nearly 7%. The Indian economy is also growing fast: by roughly 7.3% in 2015 and 7.4% in 2016. The strongest economic growth is clearly outside Europe.
The following table illustrates index yields on various exchanges in 2015:
| Finland / OMX Helsinki Index | 10.8 % |
| Finland / OMX Helsinki CAP Yield Index | 15.9 % |
| Sweden / OMX Stockholm Index | 6.6 % |
| Norway / OBX Index | 2.9 % |
| Denmark / OMX Copenhagen Index | 29.3 % |
| USA / Nasdaq Composite Index | 5.7 % |
| USA / S&P 500 Index | -0.7 % |
| Bloomberg European 500 Index | 6.2 % |
| MSCI World Index | -2.7 % |
| Japan / Nikkei 225 Index | 9.1 % |
| Norvestia’s share price (dividend-adjusted) | 12.0 % |
| Norvestia’s Net Asset Value (dividend-adjusted) | 9.4 % |
| Norvestia’s Amended Net Asset Value (dividend-adjusted) | 17.3 % |
NORVESTIA’S INVESTMENTS
Norvestia’s twofold investment strategy consists of market investments and growth equity. Market investments are made primarily in Nordic listed shares, hedge funds and bonds. Growth equity investments are made in Nordic unlisted companies, growth-oriented listed companies and private equity funds.
Norvestia’s investments excluding cash and other liquid assets were 91% (90%) of total assets at year-end. The market value breakdown of the investments was as follows:
| 2015 | 2014 | |||
| MEUR | % | MEUR | % | |
| Listed shares and share funds* | 88.7 | 50.9 % | 77.5 | 52.6 % |
| Growth equity** | 34.1 | 19.6 % | 15.8 | 10.7 % |
| Hedge funds | 18.9 | 10.9 % | 17.5 | 11.9 % |
| Bonds and bond funds | 16.1 | 9.2 % | 21.3 | 14.5 % |
| Cash and other liquid assets | 16.3 | 9.4 % | 15.1 | 10.3 % |
| In total | 174.1 | 100.0 % | 147.2 | 100.0 % |
* of which share funds EUR 14.0 million (12.1).
** fair value based on external valuation.
79% of the Group’s assets were in euros, 14% in Swedish krona, 6% in US dollars and 1% in other currencies.
The return of the company’s Amended Net Asset Value during the year was, after expenses and taxes, 17.3% and was achieved with a monthly calculated volatility of 9.7%. At the same time the OMX Helsinki CAP Yield Index yielded 15.9% with a volatility of 19.7%.
The size of the investment portfolio grew by approximately EUR 27 million compared to the previous year which was due to the strong value development of the portfolio. Returns on all asset classes were good, especially listed share investments and growth equity. The biggest single returns in the market portfolio were due to the increases in value of Nokia, Elisa and Finnair shares. In the growth equity portfolio Coronaria Hoitoketju yielded the best.
Norvestia’s Net Asset Value fluctuated notably less month on month, than did the stock market in general. The company protected its investments from time to time by selling Euro Stoxx Index futures and by buying put options. Approximately 40% of the Swedish krona currency risk was hedged with a currency future.
GROWTH EQUITY
Norvestia’s Board of Directors approved in October 2015 a new investment strategy for the company. The new strategy will have a significant effect on the role of growth equity investment activities (previously industrial investments) in the Group as their share of total investments will be increased from the current 20% to approximately 50% during 2016–2018. Returns on growth equity investments based on Amended Net Asset Values were over 100% in 2015.
In December, Norvestia invested in the Finnish cloud services consulting company Fluido Oy which is the leading Nordic Salesforce partner. After the arrangement, Norvestia’s stake in the company is 39.7%. During the fall, Norvestia also invested in two equity funds, Lifeline Ventures Fund III and Open Ocean Fund 2015.
Investments in unlisted companies belong to Norvestia’s growth equity portfolio which is administered by Norvestia’s subsidiary Norvestia Industries Oy. The aim of Norvestia’s growth equity activities is to find interesting companies with strong growth potential, the long-term and active development of which can yield significant increases in value and thereby return to Norvestia’s shareholders. According to the investment strategy, Norvestia aims to find target companies that operate in sufficiently large markets and have the opportunity to take advantage of their service and solution innovations both in Finland and internationally.
Norvestia invests in minority shares or can be in the majority together with another investor. At the end of 2015, the growth equity portfolio consisted of five unlisted companies: Aste Holding which offers media production and consulting, Coronaria Hoitoketju which offers health care services (includes also the fast growing independent Touhula Group which offers early childhood and preschool education), Fluido which offers cloud services consulting, Idean Enterprises which offers customer experience design services and Polystar Instruments which develops business intelligence software solutions. The total balance value of interests in these companies amounted to EUR 14.4 million and the total fair value based on external valuation EUR 28.2 million.
Growth equity also includes investments in private equity funds. Norvestia has committed itself to investing EUR 2.0 million in the Amanda V East private equity fund, of which EUR 1.1 million is now invested; EUR 2.0 million in Lifeline Ventures Fund I, of which EUR 1.5 million is now invested; EUR 5.0 million in Lifeline Ventures Fund III (not yet invested) and EUR 3.0 million in Open Ocean Fund 2015, of which EUR 0.0 million is now invested. In addition, Norvestia has invested EUR 0.1 million in Lifeline Ventures Fund III AB.
NET ASSET VALUE AND SHARE PRICE
On 31 December 2015, Norvestia’s Net Asset Value stood at EUR 156.0 million or EUR 10.19 per share (EUR 146.9 million or EUR 9.59 per share at the end of 2014). Taking into account the dividend of EUR 0.30, which was distributed in March 2015, the company’s Net Asset Value increased by EUR 0.90 per share (0.37) in the year under review, equal to a 9.4% increase (4.0%) from the beginning of the year. In the last quarter, the increase in Net Asset Value amounted to EUR 0.41 per share (0.04).
External valuations made to confirm the fair values of growth equity investments resulted in an appreciation in the value of the associates. With this appreciation, Amended Net Asset Value amounted to EUR 169.9 million (149.0) on 31 December 2015, equal to a 17.3% dividend-adjusted increase (4.4%) from the beginning of the year. In the last quarter, the increase in Amended Net Asset Value amounted to EUR 1.21 per share (0.09). The difference between Net Asset Value and Amended Net Asset Value was EUR 13.8 million (2.1). According to IFRS, appreciations of investments in associates cannot be booked because the associates are accounted for in Norvestia’s consolidated financial statements using the equity method.
The dividend-adjusted price of Norvestia’s share rose by 12.0% (9.9%) during the year. The price of the share stood at EUR 7.99 (7.40) on 31 December 2015, corresponding to a discount in Net Asset Value of 21.6% (22.8%). The market capitalization of Norvestia’s shares on 31 December 2015 was EUR 122.4 million (106.7).
GROUP RESULT
The result of the Group in 2015 amounted to EUR 12.0 million (5.4/2014; 13.5/2013), and operating expenses to EUR 2.7 million (2.0/2014; 2.2/2013). Operating expenses were 1.6% (1.3%/2014; 1.5%/2013) of Amended Net Asset Value. The result for the last quarter was EUR 5.5 million (0.6/2014; 3.7/2013). The return on equity was 7.9% (3.7%) and the return on investment 8.9% (3.9%).
LIQUIDITY AND SOLVENCY
Norvestia Group’s cash and cash equivalents totalled EUR 15.3 million at year-end (14.1/2014; 14.6/2013). The equity ratio stood at 96.9% (99.0%/2014; 98.5%/2013). The Group’s shareholders’ equity totalled EUR 156.0 million (146.9/2014; 146.5/2013).
PERSONNEL
In 2015 Norvestia Group employed an average of 7 (6/2014, 6/2013) people. Personnel expenses were EUR 1.7 million (1.1/2014; 1.4/2013).
NORVESTIA GROUP
Norvestia Oyj is the parent company of Norvestia Industries Oy and Norventures Oy, and an associated company of CapMan Group. Norvestia Industries Oy was established in September 2007 in order to realize the Group’s growth equity strategy.
SHARES AND SHARE CAPITAL
Norvestia Oyj’s share capital is divided into 15,316,560 shares with one vote each. All shares have an equal right to dividend and the assets of the company. Norvestia Oyj’s share is listed on Nasdaq Helsinki.
SHAREHOLDERS
At the end of 2015, Norvestia Oyj had 5,226 shareholders (5,547). 8.8% (34.3%) of the shares were in foreign ownership and 8.4% (34.0%) were nominee-registered.
Norvestia’s largest shareholder is CapMan Plc with a holding of 28.7% (-) of shares and votes at year-end. The second largest shareholder, Mandatum Life Insurance Company, had an 11.7% (11.7%) holding of shares and 11.7% (7.6%) of votes. The ten major shareholders held a total of 53.6% (58.6%) of shares and 53.6% (72.9%) of votes.
ANNUAL GENERAL MEETING
The Annual General Meeting (AGM) held 31 March 2015 decided to distribute EUR 0.30 per share as dividend for 2014. The dividend was paid 13 April 2015.
The following persons were re-elected to the Board:
J.T. Bergqvist, Chairman
Hilmar Thór Kristinsson, Vice Chairman
Brjánn Bjarnason, member
Georg Ehrnrooth, member
Robin Lindahl, member.
PricewaterhouseCoopers Oy was re-elected as auditor, with CPA Jan Holmberg as main responsible auditor and CPA Lauri Kallaskari as deputy auditor. The AGM unanimously decided to discharge the Board of Directors and the Managing Director from liability for 2014.
The AGM authorized the Board of Directors to decide on a repurchase of own shares, publicly on the Helsinki stock exchange. The authorization gives the right to acquire up to 1,531,656 B shares by 31 May 2016. No acquisitions were made in 2015. The Board of Directors was also authorized to decide upon a share issue and on an issue of special rights entitling to shares. The maximum amount that may be issued is 1,531,656 B shares. The authorization is effective until 31 May 2016.
EXTRAORDINARY GENERAL MEETING
Norvestia Oyj’s Extraordinary General Meeting held 12 June 2015 adopted the proposal by the shareholders CapMan Plc and Kaupthing hf. for the combination of the share classes of the company by way of amending the Articles of Association so that the provisions on the class A and class B shares were removed from the Articles of Association. Following the combination of the share classes Norvestia Oyj has a single share class consisting of a total of 15,316,560 shares. Each of the shares will convey one vote at a General Meeting of Shareholders and equal rights in every respect. Trading with the new share began on the main list of Nasdaq Helsinki 23 June 2015 with a ticker symbol NORVE.
The following persons were elected to the Board:
Heikki Westerlund, Chairman
Hannu Syrjänen, Vice Chairman
Georg Ehrnrooth, member (continues from the previous Board)
Niko Haavisto, member
Arja Talma, member.
In the organizing meeting of the Board Arja Talma was elected as Chairman of the Audit Committee. Georg Ehrnrooth continues as a member of the committee.
RISKS IN INVESTMENT ACTIVITIES
In addition to pursuing steady asset growth, one of the guiding principles of Norvestia’s investment activities is to diversify investments and thereby reduce overall risks. Occasionally a significant proportion of investments may be focused on certain types of investments and securities, the possible negative development of which may substantially decrease Norvestia’s result. Norvestia occasionally hedges its investments with options and futures, although there may still be situations where such hedges are not effective.
Norvestia’s five largest investments as of 31 December 2015 consisted of the Didner & Gerge Aktiefond and Nektar funds, Fortum and Nokia shares, and the growth investment in Coronaria Hoitoketju Oy.
Norvestia’s result is greatly affected by economic developments and changes in share prices both in Finland and abroad. Changes in exchange rates also impact the company’s result. General uncertainty on the capital markets increases the volatility of Norvestia’s investments and therefore also increases their risks.
INTERNAL SUPERVISION AND RISK MANAGEMENT
More information about the company’s principles of internal supervision and risk management can be found in Norvestia Group’s separate corporate governance statement.
DIVIDEND POLICY
Norvestia aims to distribute an annual dividend in excess of the Finnish stock market average. The long-term objective is to distribute on average approximately 60% of earnings per share as dividends.
PROPOSED DIVIDEND DISTRIBUTION
The Board proposes that of the parent company’s distributable funds, EUR 0.79 per share (0.30) be distributed to shareholders as dividend, amounting to EUR 12.1 million (4.6) in total.
FUTURE PROSPECTS
On the stock markets 2016 has started hesitantly. The value of the OMX Helsinki Cap Yield Index for example, fell by 2.9% in January.
Investors’ recent concern over the future economic development of China has been the main factor behind the decline in share prices. China has been the engine of growth in the world economy for years. Its economy is still growing at a pace Europe can only dream of, but according to the latest estimates, the growth of the Chinese economy will be less than previously forecast. If these estimates are correct, lower Chinese growth will have wide ranging effects on the world economy, particularly impacting the capital and raw material markets.
We are unlikely to see a period of rapid growth in the economy of the Eurozone in 2016, and the area’s economy is forecast to grow by only 1.8% this year. This forecast is, however, bound to the future development of China.
The surest forecast is that the risk-free interest level in Europe will hardly increase this year. Risk-free interest is still close to zero or even below, so there are not many safe havens on offer for investors. Despite the recent decline in share prices, shares are still an attractive investment target when considering dividend yields for example, and at some point investors will likely return to the stock markets. From Norvestia’s perspective the situation is interesting. Rapid and broad fluctuations in share prices often lead to excesses which can present opportunities to a solid and fast-moving investor like Norvestia.
Predicting the return on Norvestia’s growth equity portfolio is easier than that of the market investment portfolio. The effect that sudden fluctuations on the capital markets have on returns on growth equity investments is not as straightforward, although the valuations of these are bound to general long-term economic development. Currently the outlook for the growth equity portfolio in 2016 is favorable. Particularly Coronaria Hoitoketju is forecast to grow strongly during the current year which would have a very positive effect on the result of the entire Norvestia Group.
In this sensitive investment environment, Norvestia aims to take into account various possible scenarios in the economy and on the stock market, based on the latest economic figures. Investment levels between shares, funds and interest-yielding investments are assessed on the basis of the prevailing situation.
NORVESTIA’S INVESTMENT STRATEGY 2016
Norvestia’s twofold investment strategy consists of market investments and growth equity. The share of growth equity in Norvestia’s investment activities will be increased during 2016–2018 to approximately 50% of the company’s total investments. The yearly return target for growth equity investment activities in the long term is 15% at minimum. The return target for market investments is more moderate.
Market investments are made according to prevailing market circumstances primarily in shares, hedge funds and bonds. The aim is to achieve a good risk-adjusted return. At year-end a large part of Norvestia’s assets were invested directly in shares on the Helsinki stock exchange. Investments may also be made in other stock exchanges in order to diversify risks, and on the basis of return expectations.
The object of growth equity investment activities is to find unlisted target companies with the potential to grow rapidly, to make minority investments in them and, as an active investor, to develop their value so as to achieve returns in excess of the market average. Norvestia may also act as an active minority owner in growth-oriented listed companies. In addition, investments may be made in venture and buyout funds in fields or sectors in which Norvestia does not invest directly.
The Annual General Meeting in the spring of 2015 authorized the Board of Directors to purchase the company’s own shares and to decide on a possible share issue. Both authorizations were meant to be used for growth equity investments. The use of leverage can also be considered when it comes to financing growth equity investments. The company’s Board has set a 20% cap for the debt ratio. Currently the company has no interest-bearing debt.
KEY FIGURES
| 1/1-31/12/ | 1/1-31/12/ | |
| 2015 | 2014 | |
| Earnings per share, EUR | 0.79 | 0.35 |
| 31/12/2015 | 31.12.2014 | |
| Equity ratio | 96.9% | 99.0% |
| Shareholders’ equity per share, EUR | 10.19 | 9.59 |
| Net Asset Value per share, EUR | 10.19 | 9.59 |
| Amended Net Asset Value per share, EUR | 11.09 | 9.73 |
| Net Asset Value, EUR million | 156.0 | 146.9 |
| Amended Net Asset Value, EUR million | 169.9 | 149.0 |
| Share price, EUR | 7.99 | 7.40 |
| Number of shares | 15,316,560 | 15,316,560 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| EUR 1,000 | 1/10- | 1/10- | 1/1- | 1/1- |
| 31/12/ | 31/12/ | 31/12/ | 31/12/ | |
| 2015 | 2014 | 2015 | 2014 | |
| Trading gains and losses | 7,344 | 1,028 | 15,455 | 6,611 |
| Personnel expenses | -589 | -344 | -1,689 | -1,146 |
| Depreciation and impairment charges | -3 | -6 | -9 | -23 |
| Other operating expenses | -397 | -239 | -1,041 | -788 |
| OPERATING PROFIT | 6,355 | 439 | 12,716 | 4,654 |
| Share of results of associates | 536 | 1 | 824 | 514 |
| Realized return from shares in associates | - | 359 | - | 359 |
| Financial income and expenses | 47 | -48 | 157 | 174 |
| RESULT BEFORE TAXES | 6,938 | 751 | 13,697 | 5,701 |
| Income taxes* | -1,401 | -235 | -1,663 | -302 |
| RESULT FOR THE FINANCIAL PERIOD | 5,537 | 516 | 12,034 | 5,399 |
| Other comprehensive income, net of taxes: | ||||
| Items that may be reclassified subsequently to profit or loss | ||||
| Change in value of available-for-sale financial assets | 645 | 114 | 1,710 | 281 |
| COMPREHENSIVE INCOME FOR THE PERIOD | 6,182 | 630 | 13,744 | 5,680 |
| * Based on the result for the period | ||||
| Earnings per share, EUR | 0.36 | 0.03 | 0.79 | 0.35 |
| Number of shares: 15,316,560 | ||||
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| EUR 1,000 | 31/12/2015 | 31/12/2014 |
| ASSETS | ||
| NON-CURRENT ASSETS | ||
| Intangible assets | 2 | 5 |
| Tangible assets | 17 | 15 |
| Interests in associates | 11,241 | 7,276 |
| Loan receivables from associates | 1,660 | 1,875 |
| Available-for-sale financial assets | 7,359 | 4,560 |
| NON-CURRENT ASSETS IN TOTAL | 20,279 | 13,731 |
| CURRENT ASSETS | ||
| Financial assets held for trading | 74,762 | 65,415 |
| Other financial assets at fair value | ||
| through profit or loss | 49,987 | 52,048 |
| Receivables | 657 | 2,997 |
| Cash and cash equivalents | 15,263 | 14,089 |
| CURRENT ASSETS IN TOTAL | 140,669 | 134,549 |
| ASSETS IN TOTAL | 160,948 | 148,280 |
| SHAREHOLDERS' EQUITY AND LIABILITIES | ||
| SHAREHOLDERS' EQUITY | ||
| Share capital | 53,608 | 53,608 |
| Share premium | 6,896 | 6,896 |
| Fair value reserve | 2,598 | 888 |
| Retained earnings | 80,882 | 80,079 |
| Result for the period | 12,034 | 5,399 |
| SHAREHOLDERS' EQUITY IN TOTAL | 156,018 | 146,870 |
| Net deferred tax liabilities | 3,088 | 1,041 |
| Current liabilities | 1,842 | 369 |
| SHAREHOLDERS' EQUITY AND LIABILITIES IN TOTAL | 160,948 | 148,280 |
CONSOLIDATED STATEMENT OF CASH FLOWS
| EUR 1,000 | 1/10- | 1/10- | 1/1- | 1/1- |
| 31/12/ | 31/12/ | 31/12/ | 31/12/ | |
| 2015 | 2014 | 2015 | 2014 | |
| CASH FLOW FROM OPERATING ACTIVITIES | ||||
| Result before taxes | 6,938 | 751 | 13,697 | 5,701 |
| Adjustments: | ||||
| Unrealized gains | -7,434 | 4,825 | -8,379 | 8,619 |
| Other operations which do not include cash transactions | -533 | -355 | -779 | -584 |
| Interest income | -215 | -239 | -855 | -974 |
| Dividend income | -96 | -91 | -4,907 | -4,279 |
| -1,340 | 4,891 | -1,223 | 8,483 | |
| Changes in working capital | ||||
| Change in shares and other investments | -5,458 | -6,799 | 430 | -6,965 |
| Change in receivables | 269 | 1,971 | 2,214 | -2,272 |
| Change in current liabilities | -723 | -2,197 | 1,472 | -1,067 |
| -5,912 | -7,025 | 4,116 | -10,304 | |
| Dividends received | 96 | 91 | 4,907 | 4,279 |
| Interest received | 215 | 239 | 855 | 974 |
| Received and paid taxes | -6 | -10 | 83 | -16 |
| CASH FLOW FROM OPERATING ACTIVITIES | -6,947 | -1,814 | 8,738 | 3,416 |
| CASH FLOW FROM INVESTING ACTIVITIES | ||||
| Acquisitions of associates | -2,776 | -2,910 | -3,176 | -2,910 |
| Sales of associates | - | 2,546 | - | 2,546 |
| Loan receivables from associates | - | 1,063 | 215 | 1,763 |
| Investments in intangible and tangible assets | -1 | - | -8 | -10 |
| CASH FLOW FROM INVESTING ACTIVITIES | -2,777 | 699 | -2,969 | 1,389 |
| CASH FLOW FROM FINANCING ACTIVITIES | ||||
| Dividends paid | - | - | -4,595 | -5,361 |
| CASH FLOW FROM FINANCING ACTIVITIES | - | - | -4,595 | -5,361 |
| CHANGE IN CASH AND CASH EQUIVALENTS | -9,724 | -1,115 | 1,174 | -556 |
| Cash and cash equivalents at the beginning of the period | 24,987 | 15,204 | 14,089 | 14,645 |
| Cash and cash equivalents at the end of the period | 15,263 | 14,089 | 15,263 | 14,089 |
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
| Fair | Result | |||||
| Share | Share | value | Retained | for the | ||
| EUR 1,000 | capital | premium | reserve | earnings | period | Total |
| Shareholders’ equity 1.1.2014 | 53,608 | 6,896 | 606 | 71,941 | 13,498 | 146,549 |
| Allocations | 13,498 | -13,498 | 0 | |||
| Other comprehensive income | 282 | 282 | ||||
| Dividends | -5,360 | -5,360 | ||||
| Result for the period | 5,399 | 5,399 | ||||
| Shareholders’ equity 31.12.2014 | 53,608 | 6,896 | 888 | 80,079 | 5,399 | 146,870 |
| Shareholders’ equity 1.1.2015 | 53,608 | 6,896 | 888 | 80,079 | 5,399 | 146,870 |
| Allocations | 5,399 | -5,399 | 0 | |||
| Other comprehensive income | 1,710 | 1,710 | ||||
| Dividends | -4,596 | -4,596 | ||||
| Result for the period | 12,034 | 12,034 | ||||
| Shareholders’ equity 31.12.2015 | 53,608 | 6,896 | 2,598 | 80,882 | 12,034 | 156,018 |
NOTES TO THE FINANCIAL STATEMENT RELEASE
ACCOUNTING PRINCIPLES
The Group's financial statement release has been prepared in accordance with the IAS 34 Interim Report standard adopted by the EU. The same accounting principles have been used in the financial statement release as in the 2015 consolidated financial statements. Formulas for calculating key figures remain the same as in the financial statements and annual report 2015. The diluted earnings per share is not shown, as the company has issued no instruments with a diluting effect.
New and revised IFRS standards and interpretations effective from 1 January 2015 did not have a material effect on Norvestia's financial statement release for 2015.
TAXES RELATED TO OTHER COMPREHENSIVE INCOME
| EUR 1,000 | 1/1-31/12/2015 | 1/1-31/12/2014 |
| Revaluation of available-for-sale financial assets | ||
| Income before taxes | 2,138 | 352 |
| Tax expense | -428 | -71 |
| Net of tax amount | 1,710 | 281 |
CONTINGENT LIABILITIES
| Securities given as collateral for derivatives trades | ||
| 31/12/2015 | 31/12/2014 | |
| Carrying amount of pledged securities | 4,910 | 7,137 |
| FUND COMMITMENTS | ||
| Commitment to invest in Amanda V East Ky | 868 | 1,148 |
| Commitment to invest in Lifeline Ventures Fund I Ky | 473 | 844 |
| Commitment to invest in Lifeline Ventures Fund III Ky | 5,000 | - |
| Commitment to invest in Open Ocean Fund 2015 Ky | 2,968 | - |
| In total | 9,309 | 1,992 |
DERIVATIVE CONTRACTS
|
Norvestia uses standardized derivative contracts to make the portfolio management more effective. The acquisition values and fair values of the derivative contracts as well as the underlying values are given in the table below. The fair values are adjusted for the corresponding share's dividend income. Derivative contracts are recognized at fair value on the date on which the derivative contract is entered into and are subsequently remeasured at fair value. The fair value of futures corresponds to the futures' gain or loss. Hedge accounting is not used. |
||||
| 31/12/2015 | 31/12/2014 | |||
| Equity derivatives, EUR 1,000 | ||||
| Sold put options, open positions | ||||
| Underlying value | 172 | 202 | ||
| Acquisition value | -25 | -37 | ||
| Fair value | -5 | -18 | ||
| Sold call options, open positions | ||||
| Underlying value | -111 | - | ||
| Acquisition value | -18 | - | ||
| Fair value | -3 | - | ||
| Index derivatives, EUR 1,000 | ||||
| Bought call options, open positions | ||||
| Underlying value | 1,765 | - | ||
| Acquisition value | 146 | - | ||
| Fair value | 28 | - | ||
| Sold futures, open positions | ||||
| Underlying value | -32,740 | -4,707 | ||
| Fair value | -80 | 8 | ||
| Foreign exchange derivatives, EUR 1,000 | ||||
| Sold futures, open positions | ||||
| Underlying value | -10,523 | -10,336 | ||
| Fair value | -66 | 62 | ||
RELATED PARTY TRANSACTIONS
The following transactions were carried out with related parties:
| 1/1-31/12/2015 | 1/1-31/12/2014 | |
| Related party, EUR 1,000 | ||
| Aste Holding Oy | ||
| Interest income | 102 | 107 |
| Coronaria Hoitoketju Oy | ||
| Interest income | 85 | 86 |
| Idean Enterprises Oy | ||
| Purchases | 6 | - |
| Miltton Group | ||
| Interest income | - | 79 |
| Purchases | - | -50 |
The Group has granted Aste Holding Oy a loan of 860 (1,075) and Coronaria Hoitoketju Oy a loan of 800 (800). Purchases from related parties were made at normal market prices. The related party relation with Miltton Group ended 26 November 2014 when the Group's share of the company was sold. During 12 May–31 December 2015 Norvestia had no related party transactions with CapMan Group.
INVESTMENTS 31 DECEMBER 2015
| Number | Acquisition | Fair | Share of | |
| of shares/ | price | value | total | |
| units | EUR | EUR | invest- | |
| 1,000 | 1,000 | ments | ||
| NORVESTIA OYJ | ||||
| LISTED SHARES | ||||
| Ahlstrom Corporation | 53,455 | 596 | 387 | 0.3 % |
| Amer Sports Corporation | 55,105 | 368 | 1,486 | 1.0 % |
| Apetit Plc | 74,294 | 914 | 940 | 0.6 % |
| Atria Plc | 125,672 | 1,322 | 1,137 | 0.8 % |
| Caverion Corporation | 93,034 | 362 | 840 | 0.6 % |
| Elisa Corporation | 108,450 | 2,144 | 3,773 | 2.6 % |
| Finnair Plc | 423,394 | 1,824 | 2,295 | 1.6 % |
| Fortum Corporation | 416,842 | 7,336 | 5,802 | 4.0 % |
| HKScan Corporation A share | 83,875 | 541 | 320 | 0.2 % |
| Honkarakenne Oyj B shares | 451,739 | 1,669 | 723 | 0.5 % |
| Huhtamäki Oyj | 78,409 | 488 | 2,627 | 1.8 % |
| Kemira Oyj | 130,214 | 1,589 | 1,417 | 1.0 % |
| Kesko Corporation B share | 83,323 | 2,245 | 2,697 | 1.9 % |
| Konecranes Plc | 38,531 | 928 | 882 | 0.6 % |
| Metso Corporation | 47,753 | 1,307 | 989 | 0.7 % |
| Metsä Board Corporation B share | 281,666 | 373 | 1,932 | 1.3 % |
| Neste Oil Corporation | 83,367 | 1,453 | 2,303 | 1.6 % |
| Nokia Corporation | 840,937 | 3,586 | 5,546 | 3.8 % |
| Nokian Tyres plc | 40,392 | 1,118 | 1,337 | 0.9 % |
| Oriola-KD Corporation B share | 109,320 | 184 | 472 | 0.3 % |
| Orion Corporation B share | 43,354 | 1,016 | 1,386 | 1.0 % |
| Outotec Oyj | 195,000 | 1,139 | 663 | 0.5 % |
| Raisio plc V share | 173,400 | 267 | 735 | 0.5 % |
| Ramirent Plc | 72,897 | 260 | 470 | 0.3 % |
| Rapala VMC Corporation | 125,700 | 761 | 596 | 0.4 % |
| Sampo plc A share | 90,537 | 3,874 | 4,255 | 2.9 % |
| Sanoma Corporation | 112,633 | 968 | 440 | 0.3 % |
| Sponda Plc | 718,196 | 2,598 | 2,818 | 1.9 % |
| Stockmann plc B share | 62,918 | 706 | 393 | 0.3 % |
| Stora Enso Oyj R share | 330,533 | 1,841 | 2,773 | 1.9 % |
| Tikkurila Oyj | 81,311 | 1,284 | 1,310 | 0.9 % |
| UPM-Kymmene Corporation | 174,211 | 2,205 | 3,002 | 2.1 % |
| Uponor Corporation | 50,826 | 686 | 691 | 0.5 % |
| Valmet Corporation | 57,753 | 387 | 514 | 0.4 % |
| Wärtsilä Corporation | 18,000 | 720 | 759 | 0.5 % |
| YIT Corporation | 113,053 | 1,125 | 592 | 0.4 % |
| Nomura Nikkei 225 ETF | 6,670 | 810 | 993 | 0.7 % |
| Nordea Bank AB FDR | 422,465 | 4,926 | 4,284 | 3.0 % |
| Powershares QQQ | 34,100 | 2,131 | 3,504 | 2.4 % |
| SPDR S&P 500 ETF Trust | 26,885 | 3,868 | 5,035 | 3.5 % |
| TeliaSonera AB | 345,000 | 1,545 | 1,581 | 1.1 % |
| 63,464 | 74,699 | 51.6 % | ||
| FUNDS | ||||
| Brummer & Partners Multi-Strategy Euro | 18,360 | 3,500 | 3,837 | 2.7 % |
| Brummer & Partners Nektar | 20,748 | 4,128 | 5,686 | 3.9 % |
| Brummer & Partners Zenit | 455 | 575 | 2,951 | 2.0 % |
| Didner & Gerge Aktiefond | 27,326 | 1,999 | 6,511 | 4.5 % |
| eQ Euro Investment Grade 1 K | 15,450 | 3,228 | 3,207 | 2.2 % |
| eQ High Yield Bond 1 K | 14,935 | 3,518 | 3,524 | 2.4 % |
| Evli Emerging Frontier B | 3,852 | 500 | 508 | 0.4 % |
| Evli Eurooppa B | 10,158 | 800 | 1,220 | 0.8 % |
| Fondita European Top Picks B | 6,960 | 812 | 1,020 | 0.7 % |
| Fourton Hannibal A | 14,482 | 1,000 | 1,634 | 1.1 % |
| OP-Suomi Arvo A | 5,270 | 396 | 1,316 | 0.9 % |
| RAM ONE | 27,421 | 2,383 | 3,957 | 2.7 % |
| Russian Prosperity Fund Euro A | 8,000 | 721 | 488 | 0.3 % |
| Taaleritehdas Arvo Markka | 9,071 | 1,020 | 1,314 | 0.9 % |
| VISIO Allocator | 14,737 | 2,069 | 2,434 | 1.7 % |
| 26,649 | 39,607 | 27.2 % | ||
| DERIVATIVE CONTRACTS | ||||
| Euro Stoxx call options (bought) | 1,400 | 146 | 28 | 0.0 % |
| Fortum put options (sold) | 1,000 | -25 | -5 | 0.0 % |
| Fortum call options (sold) | 1,000 | -18 | -3 | 0.0 % |
| 103 | 20 | 0.0 % | ||
| BONDS | nominal value | |||
| Ahlstrom, expires 2/10/2017 | 2,000 | 2,080 | 2,100 | 1.4 % |
| Finnair, expires 13/10/2020 | 1,500 | 1,500 | 1,592 | 1.1 % |
| Outokumpu, expires 30/9/2019 | 1,750 | 1,746 | 1,600 | 1.1 % |
| Pohjola, expires 29/2/2016 | 1,000 | 930 | 999 | 0.7 % |
| Sanoma, expires 12/12/2016 | 1,000 | 1,022 | 1,017 | 0.7 % |
| Sponda, expires 5/12/2017 | 1,000 | 1,050 | 1,028 | 0.7 % |
| SRV, expires 28/12/2016 | 1,000 | 1,040 | 1,028 | 0.7 % |
| Stockmann, expires 31/1/2020 | 1,000 | 1,014 | 1,016 | 0.7 % |
| 10,382 | 10,380 | 7.1 % | ||
| NORVESTIA OYJ IN TOTAL | 100,598 | 124,706 | 85.9% | |
| NORVESTIA INDUSTRIES OY | ||||
| UNLISTED ASSOCIATED COMPANIES | ||||
| Aste Holding Oy | 4,000 | 800 | 1,074 | 0.7 % |
| Coronaria Hoitoketju Oy | 35,307 | 3,112 | 4,416 | 3.0 % |
| Fluido Oy | 48,805 | 2,776 | 2,776 | 1.9 % |
| Idean Enterprises Oy | 354,920 | 3,311 | 2,975 | 2.1 % |
| Loans to associates | 1,660 | 1,660 | 1.2 % | |
| 11,659 | 12,901 | 8.9 % | ||
| PRIVATE EQUITY FUNDS | ||||
| Amanda V East Ky | 1,001 | 803 | 0.6 % | |
| Lifeline Ventures Fund I Ky | 1,356 | 3,266 | 2.3 % | |
| Lifeline Ventures Fund III AB | 72 | 117 | 0.1 % | |
| Open Ocean Fund 2015 Ky | 32 | 32 | 0.0 % | |
| 2,461 | 4,218 | 3.0 % | ||
| NORVESTIA INDUSTRIES OY IN TOTAL | 14,120 | 17,119 | 11.9 % | |
| NORVENTURES AB | ||||
| UNLISTED COMPANIES | ||||
| Polystar Instruments AB | 266,000 | 1,717 | 3,142 | 2.2 % |
| NORVENTURES AB IN TOTAL | 1,717 | 3,142 | 2.2 % | |
| NORVESTIA GROUP IN TOTAL | 116,435 | 144,967 | 100.0 % | |
The table does not include cash and cash equivalents of the Group.
* The fair value of the associated companies is presented as the consolidated balance value.
The financial statement release is based on the audited financial statements 2015. The 2015 annual report will be published during week 7.
The parent company’s distributable reserves amount to EUR 63,440,618 from which the profit for the financial period is EUR 4,935,389. The financial position of the company has not essentially changed after the end of the accounting period. Neither can the proposed distribution of dividend be considered to affect the company’s solvency.
The Board of Directors proposes to the Annual General Meeting that from the parent company’s distributable funds, EUR 0.79 per share be distributed to shareholders as dividend, amounting to EUR 12.1 million in total.
The Annual General Meeting will be held on Tuesday 15 March 2016 at 11:00.
Helsinki 3 February 2016
NORVESTIA OYJ
Board of Directors
On behalf Juha Kasanen
Managing Director
Tel. +358-9-6226 380
DISTRIBUTION
Nasdaq Helsinki
Main media
www.norvestia.fi