2017-02-01 13:30:01 CET
2017-02-01 13:30:01 CET
REGULATED INFORMATION
Norvestia - Financial Statement Release
NORVESTIA’S FINANCIAL STATEMENT RELEASE FOR 2016
Helsinki, Finland, 2017-02-01 13:30 CET (GLOBE NEWSWIRE) --
Norvestia Oyj Financial Statement Release 1 February 2017 at 14:30
NORVESTIA’S FINANCIAL STATEMENT RELEASE FOR 2016
The result of the Group amounted to EUR 18.9 million in 2016 (EUR 25.0 million
in 2015).
Earnings per share was EUR 1.24 (1.63).
Investment income was EUR 27.2 million (30.3).
Net Asset Value per share was EUR 8.13 at year-end (11.04)
Net Asset Value (dividend-adjusted) increased by 11.8% (17.2%).
The Board proposes that no dividend be distributed for 2016 (EUR 4.14 per share
for 2015).
NORVESTIA BECAME CAPMAN’S SUBSIDIARY
2016 was a year of big changes for Norvestia and its shareholders. In November,
Norvestia’s main owner CapMan Plc made a voluntary exchange offer to
shareholders for Norvestia’s shares. CapMan offered to exchange all Norvestia
shares for CapMan shares so that one Norvestia share would entitle shareholders
to six CapMan shares. Norvestia’s shareholders were paid a dividend of EUR 3.35
per share before the completion of the exchange offer.
A committee comprised of the independent members of Norvestia’s Board of
Directors recommended the acceptance of the exchange offer. Norvestia’s largest
shareholders also committed themselves in advance to accepting the offer. When
the original offer period ended 16 December 2016, over 90% of Norvestia’s
shareholders had accepted it. Consequently, a right and obligation arose, as
per the Finnish Companies Act, for CapMan to redeem the rest of the Norvestia
shares. CapMan has announced that it will offer EUR 7.14 per share in cash to
Norvestia’s minority shareholders. The final redemption price will be
determined by the Arbitral Tribunal designated by the Redemption Committee of
the Finnish Central Chamber of Commerce. The redemption is expected to take
place during 2017, and the aim is to remove Norvestia shares from the main list
of the Helsinki stock exchange.
CAPITAL MARKETS
On the capital markets 2016 was a year of big surprises. The year began in very
negative sentiment, with share prices falling during January-February on all
central stock exchanges. On the Helsinki stock exchange some shares lost over
30% of their value during the first weeks of the year, and the decline in share
prices at the beginning of the year was indeed one of the worst in the history
of the stock exchange. There was no single factor behind the fall although
concern about economic growth in China and the uncertain situation in the
Eurozone flustered investors and caused a minor panic.
In February the European Central Bank (ECB) stepped in once again and promised
to increase its monetary easing further by including company loans with certain
conditions in its massive purchasing program. This calmed the markets and
share prices rallied strongly towards March.
In the early summer, a new surprise shook the capital markets. A consultative
referendum was organized in Great Britain 23 June as to whether or not the
country should leave the EU. Contrary to all the pollsters a majority voted in
favor of the exit. This caused complete panic on the capital markets which
lasted, however, for only one day. Very few analysts predicted that share
prices would quickly rally after the initial panic, and fewer still forecast
that at the end of July share prices would be up on their pre-referendum
levels.
It is difficult to explain the reaction on the capital markets to these events
even with the benefit of hindsight. It is undeniable that the growth of the
economies of the EU and Great Britain looks weaker since the referendum. The
best explanation is probably that after the referendum was over, there was a
sense of relief. Fear is the enemy of the capital markets.
The surprises on the capital markets did not, however, end here. Analysts were
almost certain that Donald Trump’s election as the President of the US would
lead to a meltdown of share prices. Contrary to almost all forecasts, Trump
was elected President in the election held in November. The post-election
market reaction was very surprising and interesting. Share prices declined
sharply during the opening of the day and shot right up after that. At the end
of the stock exchange day share prices were a couple of percent up on the day.
Astonishing many, share prices continued to increase strongly in stock
exchanges around the world until the end of the year.
Now perhaps this share price reaction can be explained and may even have been
foreseeable. In his first speech following his election Donald Trump promised
something to everybody. He promised to reduce taxation, discontinue the
expensive ObamaCare, increase several industrial support measures and make
America great again. This was all to the stock markets’ liking.
Analysts believe that Trump’s reforms will increase US economic growth and
revitalize the world economy. The opinions of economists are clearly divided
however as to how sensible it is to increase public spending and reduce
taxation by increasing debt. In any case the reaction of the capital markets
has been positive at least up until now, with the value of the S&P 500 Index,
which describes the US stock market, 10% up on its pre-election levels at the
end of the year.
All in all, 2016 was a good year on the stock exchange for those investors who
held their nerves throughout the various twists of the markets. During the year
in question share prices rose on the majority of the world’s stock exchanges.
The following table illustrates index yields on various exchanges in 2016:
Finland / OMX Helsinki Index 3.6%
Finland / OMX Helsinki CAP Yield Index 13.3%
Sweden / OMX Stockholm Index 5.8%
Norway / OBX Index 14.6%
Denmark / OMX Copenhagen Index -7.9%
USA / Nasdaq Composite Index 7.5%
USA / S&P 500 Index 9.5%
Bloomberg European 500 Index -2.0%
MSCI World Index 5.3%
Japan / Nikkei 225 Index 0.4%
Norvestia’s share price (dividend-adjusted) 44.6%
Norvestia’s Net Asset Value (dividend-adjusted) 11.8%
NORVESTIA’S INVESTMENTS
Norvestia’s twofold investment strategy consists of market investments and
Growth Equity. Market investments are made primarily in Nordic listed shares,
hedge funds and bonds. Growth Equity investments are made in Nordic unlisted
companies, growth-oriented listed companies and private equity funds.
Norvestia’s investments excluding cash and other liquid assets were 96% (91%)
of total assets at year-end. The fair value breakdown of the investments was as
follows:
2016 2015
MEUR % MEUR %
Listed shares and share funds* 70.1 51.5% 88.7 50.9%
Growth Equity portfolio 45.3 33.3% 34.2 19.7%
Bonds and bond funds 10.5 7.7% 16.1 9.2%
Hedge funds 5.3 3.9% 18.9 10.8%
Cash and other liquid assets 4.9 3.6% 16.3 9.4%
In total 136.1 100.0% 174.2 100.0%
* of which share funds EUR 6.6 million (14.0).
At year-end, 85.0% of the Group’s assets were in euros, 7.9% in Swedish krona,
6.9% in US dollars and 0.2% in other currencies.
The return of the company’s Net Asset Value during the year was, after expenses
and taxes, 11.8% and was achieved with a monthly calculated volatility of 5.5%.
At the same time the OMX Helsinki CAP Yield Index yielded 13.3% with a
volatility of 11.0%.
Norvestia’s market investments yielded well during 2016. At the beginning of
the year, Norvestia focused particularly on Finnish stocks with strong dividend
yields. At the end of the year, investment activities were adjusted in
preparation for the large dividend distribution of over EUR 51 million.
Accordingly, various fund investments, corporate bonds and listed shares were
sold. Growth Equity investments were the only asset class the amount of which
increased during the year. The amounts of all other asset classes decreased.
The greatest relative change took place in hedge funds. The proportion of
these in the portfolio decreased to approximately 4%. Euro-wise the biggest
decline took place in listed shares and funds, the amount of which decreased by
approximately EUR 19 million.
Norvestia also succeeded in hedging its market investments. Worth a separate
mention are Norvestia’s extensive contingency plans for the possible negative
result of the Brexit vote. The dismantling of this hedge was started at just
the right time on the day after the Brexit vote. The value of Norvestia’s
market portfolio increased by EUR 2 million due to the hedge against Brexit.
GROWTH EQUITY
Return on Norvestia’s Growth Equity portfolio was over 44% in 2016. The
highlight of 2016 was the successful exit from Touhula Varhaiskasvatus Oy. The
company was an 80% subsidiary of Coronaria Hoitoketju, and was sold to a Nordic
private equity investor yielding a good return. Due to the exit, Coronaria
distributed an extra dividend of EUR 50 million in the spring of 2016,
Norvestia’s share of this extra dividend was nearly EUR 10 million. As part of
the sale of Touhula by Coronaria, Norvestia reinvested in Touhula as a direct
investment. The investment amounted to EUR 2 million, and additionally
Norvestia offered EUR 2 million mezzanine financing for the company.
In July Norvestia committed itself to investing approximately EUR 5 million
(USD 5.5 million) in Hamilton Lane PE IX Fund, which focuses on US and European
small- and medium-sized companies. After the year under review, in January,
Norvestia invested EUR 1.6 million in the Finnish Digital Workforce Services Oy
which offers robotic process automation services.
Investments in unlisted companies belong to Norvestia’s Growth Equity
portfolio, which is administered by Norvestia’s subsidiary Norvestia
Industries Oy. The aim of Norvestia’s Growth Equity investment activities is
to find interesting companies with strong growth potential, the long-term and
active development of which can yield significant increases in value and
thereby return to Norvestia’s shareholders. In accordance with the investment
strategy, Norvestia aims to find target companies that operate in sufficiently
large markets and have the opportunity to take advantage of their service and
solution innovations both in Finland and internationally.
Norvestia invests in minority shares or can be in the majority together with
another investor. At the end of 2016, the Growth Equity portfolio consisted of
six unlisted companies: Aste Helsinki which offers media production and
consulting, Coronaria Hoitoketju which offers health care services, Fluido
which offers cloud services consulting, Idean Enterprises which offers customer
experience design services, Polystar Instruments which develops
telecommunications business intelligence software solutions, and Touhula
Varhaiskasvatus which offers early childhood and preschool education. The total
fair value of the interests in these companies amounted to EUR 34.8 million.
Growth Equity also includes investments in private equity funds. Norvestia has
committed itself to investing EUR 2.0 million in the Amanda V East private
equity fund, of which EUR 1.4 million is now invested; approximately EUR 5
million (USD 5.5 million) in Hamilton Lane PE Fund IX, of which EUR 1.2 million
is now invested; EUR 2.0 million in Lifeline Ventures Fund I, of which EUR 1.7
million is now invested; EUR 5.0 million in Lifeline Ventures Fund III, of
which EUR 0.5 million is now invested; and EUR 3.0 million in Open Ocean Fund
2015, of which EUR 0.4 million is now invested. In addition, Norvestia has
invested EUR 0.1 million in Lifeline Ventures Fund III AB.
VOLUNTARY CHANGE IN ACCOUNTING PRINCIPLE
In April 2016 Norvestia’s Board decided to apply the venture capital
organization exemption of the IAS 28 standard and to value associates and
joint ventures at fair value through profit or loss in Norvestia’s
consolidated IFRS financial statements according to the IAS 39 standard from 1
January 2016. As a result, all Norvestia’s investments will be valued at fair
value through profit or loss. Norvestia considers the valuation of investments
at fair value to give more meaningful information about the real value of
investments and to better describe the company’s business, the company’s way of
reviewing its investments and making decisions relating to them.
Similarly, investments in unlisted private equity funds previously booked as
available-for-sale financial assets will be reclassified as financial assets
at fair value through profit or loss. Thus, in future any change in value will
be recognized directly in profit or loss, and not in the statement of
comprehensive income. Norvestia believes that classifying investments as assets
at fair value through profit or loss better describes their nature and the
accumulation of returns taking into account the company’s business.
The change in question is a voluntary change in accounting principle according
to the IAS 28 standard which requires that comparative figures be presented
retrospectively according to the new accounting principles, including the
balance sheet at thebeginning of the first comparative period. Norvestia
published 14 April 2016 a separate stock exchange release in which
thecomparative periods have been adjusted.
NET ASSET VALUE AND SHARE PRICE
31 December 2016, Norvestia’s Net Asset Value stood at EUR 124.6 million or EUR
8.13 per share (EUR 169.1 million or EUR 11.04 per share at the end of 2015).
Taking into account the dividend of EUR 0.79, which was distributed in March
2016 and the extra dividend of EUR 3.35, which was distributed in December, the
company’s Net Asset Value increased by EUR 1.24 per share (1.63) in the year
under review, equal to a 11.8% increase (17.2%) from the beginning of the year.
In the last quarter, the increase in Net Asset Value amounted to EUR 0.40 per
share (0.98).
Amended Net Asset Value will no longer be published, as after the change in the
accounting principle, which came into force 1 January 2016, it corresponds to
Norvestia’s Net Asset Value and the Group’s shareholders’ equity. The
comparative figures in the previous paragraph have been adjusted to correspond
with the change in the accounting principle.
The dividend-adjusted price of Norvestia’s share rose by 44.6% (12.0%) during
the year. The price of the share stood at EUR 7.41 (7.99) 31 December 2016,
corresponding to a discount in Net Asset Value of 8.9% (27.6%). The market
capitalization of the shares 31 December 2016 was EUR 113.5 million (122.4).
GROUP RESULT
The result of the Group in 2016 amounted to EUR 18.9 million (25.0/2015;
6.2/2014), and operating expenses to EUR 4.5 million (2.7/2015; 2.0/2014).
Operating expenses were 3.6% (1.6%/2015; 1.3%/2014) of Net Asset Value. In 2016
the Group had non-recurring expenses related to the exchange offer amounting to
EUR 1.6 million. The result for the last quarter was EUR 6.1 million
(15.0/2015; 1.1/2014). The return on equity was 12.9% (15.8%) and the return on
investment 14.9% (17.1%).
LIQUIDITY AND SOLVENCY
Norvestia Group’s cash and cash equivalents totalled EUR 4.9 million at
year-end (15.3/2015; 14.1/2014). The equity ratio stood at 88.6% (96.6%/2015;
98.8%/2014). The Group’s shareholders’ equity totalled EUR 124.6 million
(169.0/2015; 148.6/2014).
PERSONNEL
In 2016, Norvestia Group employed an average of 7 (7/2015, 6/2014) people.
Personnel expenses were EUR 2.0 million (1.7/2015; 1.1/2014).
NORVESTIA GROUP
Norvestia Oyj is the parent company of Norvestia Industries Oy and Norventures
Oy. Norvestia Industries Oy was established in September 2007 in order to
realize the Group’s Growth Equity strategy. Norvestia Oyj became CapMan Group’s
subsidiary on 19 December 2017.
SHARES AND SHARE CAPITAL
Norvestia Oyj’s share capital is divided into 15,316,560 shares with one vote
each. All shares have an equal right to dividend and the assets of the company.
Norvestia Oyj’s share is listed on Nasdaq Helsinki.
SHAREHOLDERS
At the end of 2016, Norvestia Oyj had 1,679 shareholders (5,226). 0.4% (8.8%)
of the shares were in foreign ownership and 0.4% (8.4%) were
nominee-registered.
Norvestia’s largest shareholder is CapMan Plc with a holding of 90.7% (28.7) of
shares and votes at year-end. The ten major shareholders held a total of 93.2%
(53.6%) of shares and votes.
ANNUAL GENERAL MEETING
The Annual General Meeting (AGM) held 15 March 2016 decided to distribute EUR
0.79 per share as dividend for 2015. The dividend was paid out 24 March 2016.
The following persons were re-elected to the Board:
Heikki Westerlund, Chairman
Hannu Syrjänen, Vice Chairman
Georg Ehrnrooth, member
Niko Haavisto, member
Arja Talma, member.
PricewaterhouseCoopers Oy was re-elected as auditor, with APA Lauri Kallaskari
as main responsible auditor and APA Mikko Nieminen as deputy auditor. The AGM
unanimously decided to discharge the Board of Directors and the Managing
Director from liability for 2015.
The AGM authorized the Board of Directors to decide on a repurchase of own
shares, publicly on the Helsinki stock exchange. The authorization gives the
right to acquire up to 1,531,656 shares by 31 May 2017. No acquisitions were
made in 2016. The Board of Directors was also authorized to decide upon a
share issue and on an issue of special rights entitling to shares. The maximum
amount that may be issued is 1,531,656 shares. The authorization is effective
until 31 May 2017.
EXTRAORDINARY GENERAL MEETING
The Extraordinary General Meeting held 8 December 2016 resolved to distribute a
dividend of EUR 3.35 per share on the condition that all conditions of CapMan’s
voluntary exchange offer, published 3 November 2016, concerning Norvestia’s
shares are fulfilled or their fulfilment has been waived.
CapMan announced 19 December 2016 that it will complete the exchange offer,
whereafter Norvestia’s Board of Directors decided on the extra dividend
payment. The dividend was paid 29 December 2016.
RISKS IN INVESTMENT ACTIVITIES
In addition to pursuing steady asset growth, one of the guiding principles of
Norvestia’s investment activities is to diversify investments and thereby
reduce overall risks. From time to time a significant proportion of
investments may be focused on certain types of investments and securities, the
possible negative development of which may substantially decrease Norvestia’s
result. Norvestia occasionally hedges its investments with options and futures,
although there may be situations where such hedges are not effective.
Norvestia’s five largest investments as of 31 December 2016, consisted of the
Lifeline Ventures Fund III Ky and RAM One funds, SPDR S&P 500 ETF Trust share
index, and the growth investments in Coronaria Hoitoketju Oy and Idean
Enterprises Oy.
Norvestia’s result is greatly affected by economic developments and changes in
share prices both in Finland and abroad. Changes in exchange rates also impact
the company’s result. General uncertainty on the capital markets increases the
volatility of Norvestia’s investments and therefore also increases their
risks.
INTERNAL SUPERVISION AND RISK MANAGEMENT
More information about the company’s principles of internal supervision and
risk management can be found in Norvestia Group’s separate corporate
governance statement.
DIVIDEND POLICY
Norvestia aims to distribute an annual dividend in excess of the Finnish stock
market average. The long-term objective is to distribute on average
approximately 60% of earnings per share as dividends.
PROPOSED DIVIDEND DISTRIBUTION
Due to the extra dividend paid in 2016, the Board of Directors proposes that no
dividend be distributed for 2016.
FUTURE PROSPECTS
The situation on the capital markets remains difficult to assess. The surest
forecast is that the low interest level of those euro countries considered
risk-free will remain extremely low during 2017. The larger unknowns, the
significance of which is difficult to forecast for now, will be the various
elections in Europe, and the development in the US during the era of the new
president.
Norvestia’s market portfolio will be managed according to previous principles.
The aim is to achieve the best possible risk-adjusted return. The expectations
of the Growth Equity portfolio for the current year look good.
Norvestia’s prospects for 2017 will be governed by the ongoing redemption
proceedings for Norvestia shares by CapMan Plc. CapMan currently owns 92.5% of
the shares and has the right and obligation to redeem the rest of the shares.
This is expected to happen sometime during 2017. The redemption schedule is
bound to the resolution of the Arbitral Tribunal. After the redemption CapMan
will own 100% of Norvestia shares. According to the plan, Norvestia’s Board of
Directors will apply for a delisting of the Norvestia share from the Helsinki
stock exchange during the spring. Until the delisting all the obligations and
responsibilities of a listed company will apply to Norvestia. After the
delisting Norvestia’s journey as an independent stock-listed company will end,
and from then on Norvestia’s future will be bound to CapMan’s policies and
decisions.
The Board of Directors of Norvestia wants to thank Norvestia’s shareholders for
the trust they have placed in the Board. The Board also wants to thank
Norvestia’s personnel and management for the professional and excellent work
done over the years.
KEY FIGURES
1/1-31/12/ 1/1-31/12/
2016 2015
Earnings per share, EUR 1.24 1.63
31/12/2016 31/12/2015
Equity ratio 88.6% 96.6%
Shareholders’ equity per share, EUR 8.13 11.04
Net Asset Value per share, EUR 8.13 11.04
Net Asset Value, EUR million 124.6 169.0
Share price, EUR 7.41 7.99
Number of shares 15,316,560 15,316,560
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
EUR 1,000 1/10-31/1 1/10-31/1 1/1-31/12 1/1-31/12
2/ 2/ / /
2016 2015 2016 2015
Realized gains and losses from -124 -1,740 -351 824
investments
Fair value movements of investments, 9,326 18,852 12,004 23,682
unrealized
Dividends 252 96 14,584 4,907
Interest income 241 203 978 843
Total investment income 9,695 17,411 27,215 30,256
Personnel expenses -495 -589 -1,977 -1,689
Depreciation and impairment charges -2 -3 -7 -9
Other operating expenses -1,777 -397 -2,554 -1,041
OPERATING PROFIT 7,421 16,422 22,677 27,517
Financial income and expenses 111 47 -9 157
RESULT BEFORE TAXES 7,532 16,469 22,668 27,674
Income taxes* -1,467 -1,487 -3,736 -2,638
RESULT FOR THE FINANCIAL PERIOD 6,065 14,982 18,932 25,036
* Based on the result for the period
Earnings per share, EUR 0.40 0.98 1.24 1.63
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
EUR 1,000 31/12/2016 31/12/2015
NON-CURRENT ASSETS
ASSETS
Intangible assets 4 2
Tangible assets 14 17
Investment portfolio
Growth Equity investments 34,751 28,379
Investments in private equity funds 6,989 4,217
Loan receivables from Growth Equity investments 3,104 1,660
NON-CURRENT ASSETS IN TOTAL 44,862 34,275
CURRENT ASSETS
Financial assets held for trading
Investments in listed shares 63,552 74,762
Investments in funds 11,839 32,876
Investments in interest-bearing securities 10,516 17,111
Receivables 4,908 657
Cash and cash equivalents 4,886 15,263
CURRENT ASSETS IN TOTAL 95,701 140,669
ASSETS IN TOTAL 140,563 174,944
SHAREHOLDERS' EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY
Share capital 53,608 53,608
Share premium 6,896 6,896
Retained earnings 45,121 83,495
Result for the period 18,932 25,036
SHAREHOLDERS' EQUITY IN TOTAL 124,557 169,035
LIABILITIES
Current liabilities 8,226 1,842
Net deferred tax liabilities 7,780 4,067
LIABILITIES IN TOTAL 16,006 5,909
SHAREHOLDERS' EQUITY AND LIABILITIES IN TOTAL 140,563 174,944
CONSOLIDATED STATEMENT OF CASH FLOWS
EUR 1,000 1/10-31/ 1/10-31/ 1/1-31/ 1/1-31/
12/ 12/ 12/ 12/
2016 2015 2016 2015
CASH FLOW FROM OPERATING ACTIVITIES
Result before taxes 7,532 16,469 22,668 27,674
Adjustments:
Unrealized gains and losses -458 -17,501 3,068 -23,180
Other operations which do not include cash 2 3 7 45
transactions
Interest income -241 -215 -978 -855
Dividend income -252 -96 -14,584 -4,907
6,583 -1,340 10,181 -1,223
Changes in working capital
Change in shares and other investments 33,060 -8,116 30,842 1,092
Change in receivables -4,052 269 -4,250 2,214
Change in current liabilities 90 -723 158 1,472
29,098 -8,570 26,750 4,778
Dividends received 252 96 14,584 4,907
Interest received 241 215 978 855
Received and paid taxes -6 -6 -23 83
487 305 15,539 5,845
CASH FLOW FROM OPERATING ACTIVITIES 36,168 -9,605 52,470 9,400
CASH FLOW FROM INVESTING ACTIVITIES
Acquisitions of Growth Equity investments -698 -125 -4,635 -3,859
and private equity funds
Sales of Growth Equity investments and 66 7 425 21
private equity funds
Loan receivables from Growth Equity - - -1,444 215
investments
Investments in intangible and tangible - -1 -6 -8
assets
CASH FLOW FROM INVESTING ACTIVITIES -632 -119 -5,660 -3,631
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from loans -5,000 - 10,000 -
Repayments of loans - - -10,000 -
Dividends paid -45,087 - -57,187 -4,595
CASH FLOW FROM FINANCING ACTIVITIES -50,087 - -57,187 -4,595
CHANGE IN CASH AND CASH EQUIVALENTS -14,551 -9,724 -10,377 1,174
Cash and cash equivalents at the beginning 19,437 24,987 15,263 14,089
of the period
Cash and cash equivalents at the end of 4,886 15,263 4,886 15,263
the period
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
Result
Share Share Retained for the
EUR 1,000 capital premium earnings period Total
Shareholders’ equity 1.1.2015 53,608 6,896 81,904 6,186 148,594
Allocations 6,186 -6,186 0
Dividends -4,595 -4,595
Result for the period 25,036 25,036
Shareholders’ equity 31.12.2015 53,608 6,896 83,495 25,036 169,035
Shareholders’ equity 1.1.2016 53,608 6,896 83,495 25,036 169,035
Allocations 25,036 -25,036 0
Dividends -63,410 -63,410
Result for the period 18,932 18,932
Shareholders’ equity 31.12.2016 53,608 6,896 45,121 18,932 124,557
NOTES TO THE FINANCIAL STATEMENT RELEASE
ACCOUNTING PRINCIPLES
The Group’s financial statement release has been prepared in accordance with
the IAS 34 Interim Report standard adopted by the EU. The same accounting
principles have been used in the financial statement release as in the 2016
consolidated financial statements. Formulas for calculating key figures remain
the same as in the financial statements and annual report 2016. The diluted
earnings per share is not shown, as the company has issued no instruments with
a diluting effect.
New and revised IFRS standards and interpretations effective from 1 January
2016 did not have a material effect on Norvestia’s financial statement release
for 2016.
CONTINGENT LIABILITIES
Securities given as collateral for derivatives trades
31.12.2016 31.12.2015
Carrying amount of pledged securities 9,580 4,910
FUND COMMITMENTS
Commitment to invest in Amanda V East Ky 584 868
Commitment to invest in Hamilton Lane European Partners 3,971 -
SICAV-SIF - PEF IX
Commitment to invest in Lifeline Ventures Fund I Ky 275 473
Commitment to invest in Lifeline Ventures Fund III Ky 4,506 5,000
Commitment to invest in Open Ocean Fund 2015 Ky 2,553 2,968
In total 11,889 9,309
DERIVATIVE CONTRACTS
Norvestia uses standardized derivative contracts to make the portfolio
management more effective. The fair values of the derivative contracts as well
as the underlying values are given in the table below. The fair values are
adjusted for the corresponding share's dividend income. Derivative contracts
are recognized at fair value on the date on which the derivative contract is
entered into and are subsequently remeasured at fair value. The fair value of
futures corresponds to the futures' gain or loss. The maturity of the
derivative contracts does not exceed 3 months. Hedge accounting is not used.
31.12.2016 31.12.2015
Equity derivatives, EUR 1,000
Sold put options, open positions
Underlying value - 172
Fair value - -5
Sold call options, open positions
Underlying value - -111
Fair value - -3
Index derivatives, EUR 1,000
Bought put options, open positions
Underlying value 5,024 1,765
Fair value 109 28
Sold futures, open positions
Underlying value -19,440 -32,740
Fair value -275 -80
Foreign exchange derivatives, EUR 1,000
Sold futures, open positions
Underlying value - -10,523
Fair value - -66
RELATED PARTY TRANSACTIONS
The following transactions were carried out with related parties:
31.12.2016 31.12.2015
Related party, EUR 1,000
Aste Holding Oy
Interest income 43 102
Coronaria Hoitoketju Oy
Interest income 26 85
Idean Enterprises Oy
Purchases - 6
Purchases from related parties were made at normal market prices. During 12 May
2015 to 31 December 2016 Norvestia had no related party transactions with
CapMan Group.
Loans to related parties
The Group has granted the key personnel of a growth company a loan or EUR 0.5
million (-) to an interest rate of 3%. The loan has been granted in December
2016 and expires latest in December 2018. The Group has received company's
shares as a pledge for the loan.
INVESTMENTS 31 DECEMBER 2016
Number Acquisition Fair Share of
of shares/ price value total
units EUR EUR investment
1,000 1,000
MARKET INVESTMENTS
LISTED SHARES
Amer Sports Corporation 55,105 923 1,393 1.1%
Apetit Plc 74,294 914 964 0.7%
Atria Plc 125,672 1,322 1,444 1.1%
Caverion Corporation 93,034 362 737 0.6%
Elisa Corporation 93,450 1,897 2,890 2.2%
Finnair Plc 353,408 1,334 1,424 1.1%
Fortum Corporation 220,271 2,979 3,209 2.4%
HKScan Corporation A share 83,875 541 268 0.2%
Honkarakenne Oyj B share 451,739 1,669 745 0.6%
Huhtamäki Oyj 66,774 402 2,356 1.8%
Kemira Oyj 110,214 1,314 1,337 1.0%
Kesko Corporation B share 68,323 1,804 3,244 2.5%
Konecranes Plc 38,531 928 1,302 1.0%
Metso Corporation 58,753 1,482 1,592 1.2%
Metsä Board Corporation B share 281,666 373 1,914 1.5%
Neste Corporation 27,367 832 999 0.8%
Nokia Corporation 735,937 2,687 3,376 2.6%
Nokian Tyres plc 17,392 536 616 0.5%
Oriola-KD Corporation B share 109,320 184 471 0.4%
Orion Corporation B share 36,354 852 1,537 1.2%
Outotec Oyj 285,000 1,388 1,423 1.1%
Raisio plc V share 163,400 243 583 0.4%
Ramirent Plc 72,897 260 539 0.4%
Rapala VMC Corporation 125,700 761 519 0.4%
Sampo plc A share 72,044 3,108 3,068 2.3%
Sanoma Corporation 112,633 968 929 0.7%
Sponda Plc 798,196 2,900 3,493 2.7%
Stockmann plc B share 62,918 706 444 0.3%
Stora Enso Oyj R share 330,533 2,349 3,375 2.6%
Tikkurila Oyj 41,311 652 777 0.6%
UPM-Kymmene Corporation 102,211 1,552 2,386 1.8%
Valmet Corporation 57,753 387 807 0.6%
YIT Corporation 113,053 604 858 0.7%
Nordea Bank AB FDR 265,342 2,336 2,813 2.1%
Powershares QQQ 31,100 2,016 3,496 2.7%
SPDR S&P 500 ETF Trust 21,885 3,393 4,641 3.5%
Telia Company AB 385,000 1,887 1,474 1.1%
48,845 63,443 48.5%
DERIVATIVE CONTRACTS
Euro Stoxx call options 500 86 109 0.1%
(bought)
FUNDS
Didner & Gerge Aktiefond 13,699 1,141 3,636 2.9%
Fourton Hannibal A 14,482 1,000 2,148 1.6%
RAM ONE 27,521 2,397 3,983 3.0%
Russian Prosperity Fund Euro A 8,000 721 808 0.6%
VISIO Allocator 7,520 1,127 1,264 1.0%
6,386 11,839 9.1%
BONDS nominal value
Finnair, expires 13/10/2020 1,500 1,500 1,671 1.3%
Outokumpu, expires 30/9/2019 1,750 1,746 1,840 1.4%
Outotec, expires 24/3/2021 1,000 1,018 1,076 0.8%
SRV, expires 22/3/2020 1,000 1,000 1,064 0.8%
Stockmann, expires 31/1/2020 1,000 1,014 1,030 0.8%
eQ Euro Investment Grade 1 K 8,628 1,803 1,888 1.4%
eQ High Yield Bond 1 K 7,388 1,746 1,947 1.5%
9,827 10,516 8.0%
NORVESTIA OYJ IN TOTAL 65,144 85,907 65.7%
GROWTH EQUITY
UNLISTED GROWTH COMPANIES*
Aste Holding Oy 4,000 800
Coronaria Hoitoketju Oy 35,307 3,112
Fluido Oy 44,870 2,494
Idean Enterprises Oy 354,920 3,299
Polystar Instruments AB 266,000 1,717
Touhula Varhaiskasvatus Oy 20,000 2,000
Loans to growth companies 3,104
16,526 37,855 29.0%
PRIVATE EQUITY FUNDS
Amanda V East Ky 1,275 1,092 0.8%
Hamilton Lane European Partners SICAV-SIF - 1,149 1,193 0.9%
PEF IX
Lifeline Ventures Fund I Ky 1,529 3,779 2.9%
Lifeline Ventures Fund III Ky 494 428 0.3%
Lifeline Ventures Fund III AB 72 117 0.1%
Open Ocean Fund 2015 Ky 447 380 0.3%
4,966 6,989 5.3%
GROWTH EQUITY IN TOTAL 21,492 44,844 34.3%
NORVESTIA GROUP IN TOTAL 86,636 130,751 100.0%
The table does not include cash and cash equivalents of the Group.
* The fair value of unlisted Growth Equity investments is presented as the
total fair value of the Growth Equity portfolio, not as fair value of
individual investments.
The financial statement release is based on the audited financial statements
2016. The 2016 annual report will be published during week 7.
The Board of Directors proposes to the Annual General Meeting that no dividend
be distributed.
The Annual General Meeting will be held on Tuesday 14 March 2017 at 11:00.
Helsinki 1 February 2017
NORVESTIA OYJ
Board of Directors
Additional information: Juha Kasanen, Managing Director, tel. +358 9 6226 380
DISTRIBUTION
Nasdaq Helsinki
Main media
www.norvestia.fi
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