2013-08-15 13:17:02 CEST

2013-08-15 13:18:02 CEST


REGULATED INFORMATION

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Leverator - Interim report (Q1 and Q3)

LEVERATOR PLC INTERIM REPORT 1 JANUARY – 31 MARCH 2013



3 May 2013 at 10:00 a.m. EEST





LEVERATOR PLC INTERIM REPORT 1 JANUARY - 31 MARCH 2013







Business



Leverator Plc's (Leverator) business consists of the issue of bonds and the
grant of loans to CapMan Mezzanine IV L.P. mezzanine fund (CMM IV). Leverator's
result is formed by the difference between interest received from CMM IV's
loans and interest paid to bondholders. The issued bonds are listed on the
Helsinki Exchanges (Nasdaq OMX Helsinki). 



Bonds



Leverator has issued a serial loan with a fixed coupon interest of 8.162%. The
bonds were issued in five tranches in accordance with the loan capital needed
by CMM IV, and investors subscribed all five tranches according to their
commitments. The final size of the bond totalled MEUR 192 on 18 June 2009. The
final loan maturity is 21 June 2016. Leverator has a call option to repay the
bonds or part thereof not earlier than 22 June 2009. 



Leverator repaid 8.3% and 10.8% of the original loan capital, equivalent to EUR
16,000,128 and EUR 20,736,000, in accordance with the terms of loan on 21 June
2012 and 21 December 2012. The outstanding bond loan totalled EUR 112,442,112
on 31 March 2013. 



Issued tranches and Leverator's financial performance



Issued tranches (trading code LEVJ816216)                                       
Tranche     Issue date     Size of the tranche,  Date of            Subscription
                                           MEUR   listing               price, %
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
1st         12 July 2004                    8.0  13 July 2004             100.00
 tranche                                                                        
2nd         5 June 2006                    40.0  13 June 2006             99.137
 tranche                                                                        
3rd         28 March                       48.0  13 April                 98.290
 tranche     2007                                 2007                          
4th         28 April                       36.0  5 May 2009               97.389
 tranche     2009                                                               
5th         18 June 2009                   60.0  25 June 2009             98.468
 tranche                                                                        





Leverator's turnover for the review period was EUR 0, because the Company's
interest earnings and interest expenses are presented as financial items in the
income statement. Leverator's operating loss was EUR 10,202 (EUR 20,365 for the
review period 1 January - 31 March 2012) and financial income and expenses
totalled EUR 70,276 (EUR 93,236). The result for the review period was EUR
45,356 (EUR 55,018). 





Leverator's solvency and risks



The security for the bonds is Leverator's receivable from CMM IV. The security
for this receivable to Leverator is CMM IV's mezzanine loan receivables from
portfolio companies as well as associated options and portfolio company shares
that are possibly subscribed on the basis of those options. 



Leverator's solvency to pay the bonds' interest and principal is based on CMM
IV's solvency to pay the loan receivable and interest to Leverator. CMM IV's
solvency is dependent on its mezzanine loan receivables from portfolio
companies and on the value of associated options or shares as well as on CMM
IV's right to call the commitments and clawback of the Fund's Limited Partners.
The most significant risks or uncertainty factors in Leverator's operations are
that the portfolio companies would not be able to pay their debt to the fund,
that the fund's Limited Partners would not be able to fulfil their obligations
in accordance with fund agreement or that the fund's solvency would be put at
risk due to some other cause. 



An examination of CMM IV's solvency to manage the loan receivable to Leverator
is first carried out in order to determine Leverator's solvency. 



CMM IV's solvency 31 March 2013

                                                              MEUR
Outstanding balance to Leverator                             112.4
CMM IV's mezzanine loans and associated options and shares:       
- acquisition cost*                                          108.7
- value appreciation*                                        -11.4
Net cash assets                                                   
- bank deposits                                                4.2
- outstanding interest receivables**                           0.4
- accumulated interest receivables**                           2.2
- Leverator/accumulated interest                              -2.6
Commitments at call from Limited Partners                     10.0
Clawback at call                                              10.9
                                                            ------
                                                            ------
Total                                                        122.4





* Figures by CMM IV's management company, as reported or with a discount.

** Excludes interest receivables that are outstanding or have accumulated that
are not booked in the Fund's accounts because of the uncertainty whether they
can be collected. 

As CMM IV's financial assets exceed the total loan receivables of Leverator,
the latter's receivable due from CMM IV presented below can be booked in full. 



The values given above are reported by CMM IV's management company. The
management company's assessment of the value appreciation of mezzanine loans
and associated options and shares is based on reporting principles common to
the private equity industry. These principles aim at take into account risk
factors caused by the general economic environment. The amount of commitments
and clawback that the fund has a right to call from the Fund's Limited Partners
is based on CMM IV's fund agreement. 





Leverator's solvency 31 March 2013

                                                      MEUR
Balance of bonds at nominal value                    112.4
Leverator's receivable from CMM IV at nominal value  112.4
Net cash assets                                        0.8
                                                    ------
                                                    ------
Total                                                113.3



Leverator's solvency exceeds the balance of the bonds.



Leverator's more detailed financial position is presented in the income
statement, balance sheet, statement of changes in equity and cash flow
statement in Appendix 1. There are no exceptional liabilities of Leverator or
CMM IV in the knowledge of Leverator's Board of Directors that should be
considered in the above calculations. 



Leverator's ownership



The owners of Leverator Plc are CapMan Plc, Etera Mutual Pension Insurance
Company, Foundation for Economic Education, Ilmarinen Mutual Pension Insurance
Company, OP Life Assurance Company Ltd, Pharmacy Pension Fund, Mandatum Life
Insurance Company Limited, Varma Mutual Pension Insurance Company and
Yleisradio Pension Fund with equal holdings. 



Leverator's Board of Directors



On 3 May 2013 the shareholders of Leverator Plc elected the following members
to the Company's Board of Directors: Mr Tatu Hemmo, Mrs Nina Härkönen, Mr
Staffan Jåfs, Mr Harri Lemmetti, Mr Olli Liitola, Mr Tommi Mäkelä, Mrs Katja
Salovaara, Mr Tomi Viia, and Mr Kyösti Ylikortes. The members elected Mr Tatu
Hemmo as Chairman of the Board. 



Future outlook



Developments in the general market environment in the next few years may
continue to cause difficulties in the ability of fund's portfolio companies to
pay interest on their mezzanine loans and repay principal to the fund in
accordance with original loan terms. Restrictions in the portfolio companies'
senior loan agreements may in certain cases prevent the companies from meeting
their interest payments in accordance with the original loan terms during 2013.
The aforementioned issues might, in turn, weaken the fund's ability to meet its
debt to Leverator Plc in full, which would affect Leverator Plc's solvency. It
is possible that the fund's solvency weakens further during 2013. 



It is highly probable that Leverator Plc's interest earnings will cover its
interest payable and other expenses in 2013. 



Leverator Plc will publish its Interim Report 1 January-30 June 2013 on 8
August 2013. 





Helsinki 3 May 2013



LEVERATOR PLC



Board of Directors



For further information, please contact:

Olli Liitola, CEO, tel. +358 207 207 506 or mobile +358 400 605 040





DISTRIBUTION

NASDAQ OMX Helsinki

Principal media

Bondholders



APPENDIX 1.                     Income statement, balance sheet, statement of
changes in equity and cash flow statement 



The Interim Report 1 January-31 March 2013 has been prepared in compliance with
International Financial Reporting Standards (IFRS) and the accounting
principles applied are the same as in the financial statements for 2012. The
information presented is unaudited. 





APPENDIX 1. Income Statement, Balance Sheet, Statement of Changes in Equity and
Cash Flow Statement 



LEVERATOR PLC                                                                   
INCOME STATEMENT, IFRS                                                          
EUR                             1.1.-31.3.2013  1.1.-31.3.2012  1.1.- 31.12.2012
--------------------------------------------------------------------------------
Turnover                                     0               0                 0
Personnel expenses                           0               0           -23,200
Other operating expenses               -10,202         -20,365           -71,113
Operating loss                         -10,202         -20,365           -94,313
Financial income and expenses           70,276          93,236           350,750
Profit before taxes                     60,074          72,871           256,437
Income taxes                           -14,718         -17,853           -62,827
Profit for the financial year           45,356          55,018           193,610
Total comprehensive income,                                                     
 IFRS                                                                           
The company does not have                                                       
 items                                                                          
included in comprehensive                                                       
 income.                                                                        
Earnings per share:                                                             
Earnings per share, €                   0.0441          0.0535            0.1882







BALANCE SHEET, IFRS                                                 
EUR                              31.3.2013    31.3.2012   31.12.2012
--------------------------------------------------------------------
ASSETS                                                              
Non-current assets                                                  
Investments                                                         
Other investments              112,442,112  149,178,240  112,442,112
Total non-current assets       112,442,112  149,178,240  112,442,112
Current assets                                                      
Current receivables              2,648,320    3,501,095      283,131
Cash and bank                      723,530      513,867      748,982
Total current assets             3,371,850    4,014,962    1,032,113
TOTAL ASSETS                   115,813,962  153,193,202  113,474,225
EUR                              31.3.2013    31.3.2012   31.12.2012
--------------------------------------------------------------------
SHAREHOLDERS' EQUITY AND                                            
LIABILITIES                                                         
Shareholders' equity                                                
Share capital                      102,857      102,857      102,857
Retained earnings                  699,817      506,207      506,207
Profit for the financial year       45,356       55,018      193,610
Total shareholders' equity         848,030      664,082      802,674
Liabilities                                                         
Non-current liabilities        112,442,112  149,178,240  112,442,112
Current liabilities              2,523,820    3,350,880      229,438
Deferred tax liabilities                 0            0            0
Total liabilities              114,965,932  152,529,120  112,671,550
TOTAL SHAREHOLDERS' EQUITY     115,813,962  153,193,202  113,474,224





STATEMENT OF CHANGES IN EQUITY, IFRS                                            
                               Share         Other          Retained       Total
                             capital      reserves          earnings      equity
--------------------------------------------------------------------------------
Equity on 31.12.2012         102,857             0           699,817     802,674
Profit for the                                                45,356      45,356
 financial year                                                                 
Equity on 31.3.2013          102,857             0           745,173     848,030
--------------------------------------------------------------------------------
                               Share         Other          Retained       Total
                             capital      reserves          earnings      equity
--------------------------------------------------------------------------------
Equity on 31.12.2011         102,857             0           506,207     609,064
Profit for the                                               193,610     193,610
 financial year                                                                 
Equity on 31.12.2012         102,857             0           699,817     802,674
--------------------------------------------------------------------------------







CASH FLOW STATEMENT, IFRS                                             
EUR                                    1-3/2013  1-3/2012    1-12/2012
----------------------------------------------------------------------
Cash flow from operations                                             
Operating profit                         45,356    55,018      193,610
Other adjustments to operating profit   -70,808  -116,751     -373,173
Interest paid                                 0         0  -11,522,963
Interest received                             0         0   11,875,908
Cash flow from operations               -25,452   -61,733      173,382
Cash flow from investments                                            
Change in long-term loan receivables          0         0   36,736,128
Cash flow from investments                    0         0   36,736,128
Financial cash flow                                                   
Change in long-term liabilities               0         0  -36,736,128
Financial cash flow                           0         0  -36,736,128
Change in cash funds                    -25,452   -61,733      173,382
Cash funds at start of the period       748,982   575,600      575,600
Cash funds at end of the period         723,530   513,867      748,982