Invalda INVL - Notification on material event

Unaudited results of Invalda INVL AB group for the 9 months of 2016

Vilnius, Lithuania, 2016-11-30 08:43 CET (GLOBE NEWSWIRE) -- Unaudited results
of Invalda INVL AB group for the 9 months of 2016: 

- consolidated net profit of Invalda INVL group amounted to EUR 1.1 million, in
the same period of 2015 consolidated net profit was EUR 5.1 million; 

- consolidated equity capital in the end of 9 months of 2016 amounted to EUR
48.8 million, in the end of 2015 it was EUR 48.1 million; 

The net profit of Invalda INVL for the 9 months of 2016 amounted to EUR 1.35
million, in the same period of 2015 the net profit was EUR 5.1 million. Equity
capital of Invalda INVL in the end of 9 months of 2016 amounted to EUR 49.4
million, in the end of 2015 it was EUR 48.5 million. 



Additional information:

Invalda INVL, one of the Baltic region’s leading asset management groups, at
the end of September had consolidated equity capital of EUR 48.8 million, which
is 1.37% more than at the start of the year, or EUR 4.21 per share. The Invalda
INVL group had a consolidated profit of EUR 1.1 million in nine months of 2016
(versus EUR 5.1 million in the same period of 2015). 

“The results achieved reflect the current situation and meet our expectations.
We’re working purposefully with the assets under management and the
opportunities that appear in the market. Larger fluctuations in results are
usually due to significant transactions or other changes which, unlike in 2015,
we haven’t had this year,” 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 assets under management
of EUR 449 million at the end of September this year, or 36.8% more than at the
end of 2015 (EUR 328.2 million). The number of clients increased by 4.3% during
nine months of this year to 173,800. 

Due to investments in expansion, the asset management business had a nine-month
pre-tax loss of EUR 183 thousand. Revenue from this business increased by 36.7%
during the same period, to EUR 3.4 million. 

“The period was successful for most of the clients who chose Invalda INVL group
companies’ investment products. In terms of the return earned for investors,
the vast majority of our pension and mutual funds are among the leaders. That’s
attracting new clients and significantly boosting assets under management,”
Šulnis said. 

Investments

Investments in related companies

At the end of September, Invalda INVL held 32.1% of shares in the real estate
investment company INVL Baltic Real Estate, which were valued at EUR 8.5
million. This investment had a gain of EUR 0.5 million in the first nine months
of the year (including dividends). In March 2016, INVL Baltic Real Estate
completed a 9 million-euro offering of new shares in which Invalda INVL
acquired shares for EUR 6.2 million. 

INVL Baltic Real Estate is currently completing the licencing process to become
a closed-end investment company (UTIB). 

Invalda INVL’s 15.7% stake in INVL Technology had a value of EUR 3.4 million at
the end of September 2016, while the recognized loss from the change in value
of the company’s shares was EUR 0.5 million. INVL Technology, a company that
invests in IT businesses, in July obtained a UTIB license and its management
was transferred to INVL Asset Management. 

“The overall impact of investments in related companies on results for the
three quarters was neutral,” 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 million at the end of
September 2016. A decrease in the value of the stake meant a loss of EUR 0.9
million was sustained in nine months of the year. 

“Litagra’s valuation was negatively influenced by results in the primary
agricultural production sector, while the trading business has shown improving
performance,” Šulnis said. 

Banking

Invalda INVL holds a 6.79% equity stake in Šiaulių Bankas, the value of which
increased by EUR 2.7 million in January-September to EUR 9.1 million. “Šiaulių
Bankas’s good results also boosted the price of its shares on the exchange,”
Šulnis said. 

Facility management

Companies of the Inservis facility management group, which Invalda INVL
controls, had a total value of EUR 3.8 million at the end of September 2016, or
EUR 0.8 less than at the end of 2015. Invalda INVL was allocated dividends of
EUR 0.3 million from the facility management group. “We’re actively looking for
acquisitions in this business,” Šulnis said. 

Other investments

At the end of September, Invalda INVL had EUR 0.7 million of investments in
other publicly traded shares, and other investments and loans with a value of
EUR 1.1 million. Invalda INVL’s total liabilities after nine months of 2016
were of EUR 0.9 million. 


         The person authorized to provide additional information:
         Darius Sulnis
         President of Invalda INVL
         E-mail: darius.sulnis@invl.com

Attachments:

Factsheet_Invalda INVL_2016 3Q.pdf