SRV Yhtiöt Oyj - Company Announcement

SRV Group Plc’s Board of Directors approve multi-year incentive scheme for President & CEO

Espoo, Finland, 2014-12-30 14:00 CET (GLOBE NEWSWIRE) -- SRV GROUP PLC    
STOCK EXCHANGE RELEASE     30 DECEMBER 2014, AT 15.00 

SRV Group Plc's Board of Directors approve multi-year incentive scheme for
President & CEO 

SRV Group Plc's Board of Directors has approved a new share-based incentive
scheme. The scheme applies to Juha Pekka Ojala, who becomes SRV Group Plc's
President & CEO on 1 January 2015. In the scheme, the rewards are linked to a
rise in value of SRV Group Plc's shares. 

Based on the scheme, Juha Pekka Ojala will be given 600,000 acquisition rights,
entitling him to acquire the number of SRV Group Plc shares corresponding to
the acquisition rights at a price of EUR 3.1374 per share or to receive an
amount of cash or shares or a combination of these corresponding to the benefit
arising from exercising the acquisition rights and based on the development of
SRV Group Plc's share price. The company's Board of Directors will make a
decision on the manner of implementation each time separately. Under the terms
of the scheme, half of the post-tax value thus obtained must be linked to SRV
Group Plc's shares. These shares are subject to a transfer restriction, which
is valid for two years from the receipt of the shares. The acquisition rights
can be exercised in five two-year long exercise periods, of which the first one
begins on 1 January 2015 and ends on 31 December 2016 and the final one begins
on 1 January 2019 and ends on 31 December 2020. During the each exercise
period, the acquisition rights holder is entitled to exercise 120,000
acquisition rights. 

On 29 December 2014, the theoretical market value of the scheme is
approximately EUR 0.4 million. The Black & Scholes model, applied in the
pricing of options, has been used to calculate the theoretical market value of
the shares, with the following assumptions: share price EUR 3.12, reference
share price EUR 3.1374, risk-free interest rate 0.37% and volatility 25%. The
total recognised IFRS cost of the portion given as shares over the lifetime of
the incentive scheme 2014-2022 is approximately EUR 0.4 million at most. If the
benefit based on the development of SRV Group Plc's share price is implemented
in cash or in a combination of shares and cash, the amount of the IFRS cost
related to the incentive scheme's portion given as shares decreases accordingly
and the amount payable in cash is added to the cost. 

SRV Group Plc

Taneli Hassinen
Vice President, Communications
tel. +358 40 504 3321
taneli.hassinen@srv.fi

Further information:
Ilkka Pitkänen, CFO, tel. +358 40 667 0906, ilkka.pitkanen@srv.fi

www.srv.fi