Invalda INVL - Notification on material event

Invalda INVL, AB preliminary operating results and factsheet for 12 months of 2015

Vilnius, Lithuania, 2016-03-08 08:57 CET (GLOBE NEWSWIRE) -- Unaudited results
of Invalda INVL, AB group for the 12 months of 2015: 
- consolidated net profit attributable to shareholders of Invalda INVL, AB
totalled to EUR 4.471 million, in the same period of 2014 it was EUR 4.027
million. 
- consolidated net profit totalled to EUR 4.471 million, in the same period of
2014 it was EUR 4.010 million. 
The net profit of Invalda INVL, AB for the 12 months of 2015 amounted to EUR
4.767 million, in the same period of 2014 it was EUR 20.498 million. 

Additional information:

Invalda INVL, one of the Baltic region’s leading asset management groups, at
the end of 2015 had consolidated equity capital of EUR 48.4 million, or EUR
4.13 per share, representing an 8.8% increase during the year. Invalda INVL’s
consolidated group net profit last year was EUR 4.5 million and increased 11.5%
compared with 2014. 

The biggest factors in the growth of the company’s profit were the Bankas
Finasta sale transaction and the rise in value of the shares of INVL Technology
and INVL Baltic Real Estate. 

“Continuing to steadily strengthen our asset management business in Lithuania
and Latvia, in 2015 we completed major reorganizations and today can offer
broad investment opportunities to individual and institutional investors alike.
We think that as the Baltic countries’ economies enter a more mature stage, the
business of asset management will grow rapidly,” said Darius Šulnis, the CEO of
Invalda INVL. 

Asset management business

Invalda INVL’s asset management companies INVL Asset Management in Lithuanian
and Latvia and the administrative company INVL Farmland Management had EUR
328.2 million of assets under management at the end of 2015, or 19.2% more than
at the end of 2014 (EUR 275.3 million). 

“The majority of the funds we manage performed well and were among the leaders
in their categories. Good asset management results and creating benefits for
clients is the condition for long-term success,” Šulnis said. 

The revenue of Invalda INVL group companies from asset management and
administration activities during 2015 was EUR 3.6 million, while
reorganizations that were undertaken caused losses of EUR 0.7 million.
Investments in the asset management business at the end of 2015 totalled EUR 7
million. 

In 2016, INVL Group companies plan to grow in all asset management segments –
both pension and mutual fund management and private equity. 

After completion in October of the merger of INVL Asset Management, MP Pension
Funds Baltic and INVL Fondai, it is INVL Asset Management that now operates in
the market, with an asset management company of the same name also operating in
Latvia. The financial brokerage firm INVL Finasta, meanwhile, provides wealth
management services oriented to the individual needs of the client. 

Investments

Investments in related companies

The value of Invalda INVL’s investments in INVL Technology, in which it holds a
15.65% stake, was EUR 3.8 million at the end of 2015, while the recognized gain
from the change in value of the company’s shares was EUR 0.8 million. “We’re
satisfied with INVL Technology’s operating results and acquisitions that create
value for shareholders,” Šulnis said. This company which invests in IT
businesses is currently seeking the status of a closed-end investment company.
Once that status is obtained, management of the company will be transferred to
INVL Asset Management. 

Invalda INVL’s equity and debt investments in INVL Baltic Real Estate, of which
it owned 12.7% at year-end, totalled EUR 8.8 million at the end of 2015. During
the year EUR 0.6 million was earned on this investment. In March 2016, INVL
Baltic Real Estate, a real estate investment company, completed a EUR 9 million
offering of new shares in which Invalda INVL acquired shares for EUR 6.2
million and will increase its stake in the company to 32.1%. 

Agriculture

The value of Invalda INVL’s investments in the Baltic agribusiness company
Litagra, in which it has a 36.9% stake, was EUR 14.9 million at the end of 2015
– approximately the same as at the start of the year. “2015 was a better year
for Litagra than 2014, so we expect that will also be reflected in the share
price,” Šulnis said. 

Banking

Having purchased shares of Šiaulių Bankas in September 2015 for EUR 6.19
million (thus acquiring a 6.79% stake), Invalda INVL last year recorded a gain
of EUR 2 million from its transaction with Šiaulių Bankas, which included the
transfer to Šiaulių Bankas of the shares of Bankas Finasta and the brokerage
firm FMĮ Finasta, and from the change in value of the shares of Šiaulių Bankas. 

“We’re happy with Šiaulių Bankas’s performance in 2015 and expect the bank will
continue growing in quality and size in the future as well. We think this
bank’s shares are currently still undervalued,” Šulnis said. 

Facility management

Companies of the Inservis facility management group, which Invalda INVL
controls, had a total value of EUR 4.6 million at the end of 2015, or 42% more
than at the end of 2014. During the year, dividends of EUR 237 thousand were
allocated by these companies, while the gain from their change in value was EUR
1.4 million. 

“We’re pleased with Inservis’s growth in the commercial segment. More and more
customers are looking for an alternative to the market leader and are choosing
this company which we manage,” Šulnis said. 

Other investments

As of the end of 2015, Invalda INVL had EUR 0.5 million of investments in other
publicly traded shares as well as EUR 1.8 million of other investments and
loans. Invalda INVL had total liabilities of EUR 0.8 million at the end of
December. 

Invalda INVL, operating since 1991, is one of the leading asset management
groups in the Baltic region. Group companies in Lithuania and Latvia manage
more than 20 mutual, real estate and pension funds (2nd and 3rd pillar),
alternative investments, individual portfolios, private equity and other
financial instruments. Companies in the group manage over EUR 300 million of
assets entrusted to them by more than 150,000 clients in Lithuania and Latvia
as well as international investors. The shares of Invalda INVL have traded on
the NASDAQ Baltic securities exchange since 1995. 


         The person authorized to provide additional information:
         Darius Sulnis
         President
         E-mail:Darius@InvaldaLT.com

Attachments:

Invalda_INVL_factsheet.pdf