Invalda INVL - Notification on material event

Unaudited results of Invalda INVL, AB group for the 3 months of 2016

Vilnius, Lithuania, 2016-05-31 15:15 CEST (GLOBE NEWSWIRE) -- Unaudited results
of Invalda INVL, AB group for the 3 months of 2016: 
- consolidated net loss attributable to shareholders of Invalda INVL, AB
amounted to EUR 0.18 million, in the same period of 2015 consolidated net
profit attributable to shareholders of the Company was EUR 1.2 million; 
- consolidated equity capital for the 3 months of 2016 amounted to EUR 47.9
million, in the same period of 2015 it was EUR 48.1 million; 
- consolidated net loss totaled to EUR 0.18 million, in the same period of 2015
consolidated net profit was EUR 1.2 million. 


The net loss of Invalda INVL, AB for the 3 months of 2016 amounted to EUR 0.1
million, in the same period of 2015 the net profit was EUR 0.86 million. Equity
capital of Invalda INVL, AB for the 3 months of 2016 amounted to EUR 48.4
million, in the same period of 2015 it was EUR 48.5 million. 

Additional information:

Invalda INVL, one of the Baltic region’s leading asset management groups, had
consolidated equity capital of EUR 47.9 million, or EUR 4.09 per share, at the
end of the first quarter of 2016, which is a 0.4% decrease from the start of
the year. The Invalda INVL group had a consolidated loss of EUR 0.2 million in
the first quarter, compared with a net profit of EUR 1.2 million in the same
period of 2015. 

“The first-quarter loss was due to a reduction in the value of some investments
and to the changes being implemented in the main asset management business.
Ongoing operations and the plans of the companies we’ve invested in provide
reason to expect that 2016 will be successful,” said Darius Šulnis, the
president of Invalda INVL. 

Asset management business

Invalda INVL’s asset management companies INVL Asset Management in Lithuanian
and Latvia, the wealth-management financial brokerage firm INVL Finasta, and
the administrative company INVL Farmland Management had EUR 340.6 million
assets under management  at the end of March 2016, or 3.8% more than at the end
of 2015 (EUR 328.2 million). The number of clients increased by 0.8% during the
quarter to 168,100. 

The revenue of Invalda INVL group companies from asset management and
administration activities increased 25% during the first quarter of 2016 to EUR
1.0 million; they had losses of EUR 0.1 million. Investments in the asset
management business at the end of first quarter totalled EUR 7.1 million. 

“The main tasks foreseen for 2016 are basically going as planned, and we expect
that the main asset management business will become profitable in the fourth
quarter,” Šulnis said. 

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 3.6 million at the end of March 2016, while the
recognized loss from the change in value of the company’s shares was EUR 0.3
million. 

“INVL Technology recently completed acquisitions of Lithuania’s Algoritmų
Sistemos and Estonia’s Andmevara. We believe the transactions are good for
shareholders and expect the companies to grow in value during 2016,” Šulnis
said. 

Invalda INVL’s investments in the shares of INVL Baltic Real Estate (of which
it owned 32.1% at the end of the quarter) had a gain of EUR 0.3 million during
the first quarter. In early March 2016, INVL Baltic Real Estate, a real estate
investment company, completed a 9 million-euro offering of new shares in which
Invalda INVL acquired shares of EUR 6.2 million and increased its stake in the
company to 32.1%. 

“INVL Baltic Real Estate has begun reforms at the recently acquired Vilnius
Gates complex. We think this project and other works that are underway will
positively impact the company’s value and future cash flows,” Šulnis said. 

Agriculture

 The value of Invalda INVL’s investments in the Baltic agribusiness company
Litagra, in which it has a 36.9% stake, was EUR 14.3 million at the end of
March 2016, which is 3.9% less than at the end of the year. 

“Due to the low milk prices, we’re experiencing losses in the primary
agricultural production business, and this resulted the overall decrease in
Litagra’s value. Happily, the farmer services and grain trading business is
performing better, which partially offsets the poorer results in dairy
production,” Šulnis said. 

Banking

Invalda INVL holds a 6.79% equity stake in Šiaulių Bankas, the value of which
increased by EUR 0.7 million during the quarter to EUR 7.1 million. 

“We’re happy with Šiaulių Bankas’s record results and the growth,” said Darius
Šulnis, who has also been elected as a member of the Supervisory Council of
Šiaulių Bankas. 

Facility management

Companies of the Inservis facility management group, which Invalda INVL
controls, had a total value of EUR 4.3 million at the end of the first quarter
of 2016, or 8.9% less than at the end of 2015 due to a negative change in value
of EUR 0.4 million during the quarter. 

“We’re actively looking for acquisitions in the facility management segment and
seek to create a serious alternative to the market leader,” Šulnis said. 

Other investments

As of the end of March 2016, Invalda INVL had EUR 0.58 million of investments
in other publicly traded shares as well as EUR 1.6 million of other investments
and loans. Invalda INVL had total liabilities of EUR 0.9 million at the end of
March. 

Invalda INVL AB, operating since 1991, is one of the leading asset management
groups in the Baltic countries. 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. The group’s companies 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 of Invalda INVL
         E-mail: darius.sulnis@invl.com

Attachments:

Factsheet_Invalda INVL_1Q of 2016.pdf