2016-02-03 08:45:01 CET
2016-02-03 08:45:01 CET
REGULATED INFORMATION
Norvestia - Financial Statement Release
NORVESTIA’S FINANCIAL STATEMENT RELEASE FOR 2015
Helsinki, Finland, 2016-02-03 08:45 CET (GLOBE NEWSWIRE) --
Norvestia Oyj Financial statement release 3 February 2016 at 9:45
NORVESTIA’S FINANCIAL STATEMENT RELEASE FOR 2015
The result of the Group amounted to EUR 12.0 million in 2015 (EUR 5.4 million
in 2014).
Earnings per share was EUR 0.79 (0.35).
Trading gains and losses were EUR 15.5 million (6.6).
Net Asset Value (dividend-adjusted) increased by 9.4% (4.0%).
Amended Net Asset Value (dividend-adjusted) increased by 17.3% (4.4%).
The Board proposes that EUR 0.79 be distributed as dividend (0.30).
CAPITAL MARKETS
European stock markets saw three distinct trends in 2015. During the first
months of the year share prices rose strongly, with the OMX Helsinki CAP Yield
Index gaining by nearly 25%. In April, shares took a tumble, and continued to
fall for over five months. By the end of September, nearly all gains in share
prices since the beginning of the year had been wiped out. After this, shares
rallied, and in October–November prices rose sharply. Thanks to this upturn,
2015 turned out to be an altogether favorable year on the stock markets. The
value of the OMX Helsinki CAP Yield Index increased by 15.9% during 2015.
There were several factors behind the strong fluctuations in share prices of
which the decisions of the European Central Bank (ECB) were most central. At
the beginning of the year the ECB introduced heavy measures to reflate the
economy and initiated a program of EUR 60 million monthly support purchases on
the bond markets. This had a stimulating effect on the markets and share prices
rose sharply. As the second quarter of the year began, the structural problems
of the Eurozone that have continued for years, re-emerged. The economic
situation and debt negotiations in Greece culminated during the quarter,
dampening sentiment on the stock market, forcing prices down.
In October, the ECB intervened again and announced that it would further
increase liquidity if growth in Europe remained sluggish. This was greeted
favorably on the capital markets and share prices once again rebounded towards
the end of the year.
The basic situation in the Eurozone remained largely unchanged during 2015. The
interest level of government bonds considered risk-free is still at a record
low. For example, the interest rate of German government bonds was negative at
the turn of the year all the way to a five-year maturity. This is exceptional,
and illustrates the structural difficulties in the Eurozone.
Despite the ECB’s extensive recovery measures economic growth in the Eurozone
has been somewhat modest. Unfortunately this has been the case for almost ten
years. According to figures from the European Commission, the Eurozone economy
grew by 1.6% in 2015 and is forecast to grow by 1.8% in 2016. During the last
few years, Finland’s economic growth has presented a ground level in the area.
In 2015 the Finnish economic growth was 0.1% and in 2016 it is forecast to be
0.8%.
Other indicators also suggest weakness in the euro economy. Inflation in the
Eurozone has remained near zero which is well below the ECB’s long-term target
of 2%. Unemployment remains a major challenge, and the area’s resources are
being wasted. Joblessness is stuck at over 10% and in some member states it
exceeds even 20%. When this is combined with the wave of immigrants from
outside Europe which culminated during 2015, it becomes clear that the overall
situation in the Eurozone is still far from rosy, and the outlook for 2016 is
similarly guarded.
The situation outside Europe looks better. The annual growth rate of the US
economy is currently approximately 2.5% and several economic indicators are
stronger than those in the Eurozone. The US Federal Reserve System (FED) raised
its key interest rate in December for the first time in over ten years. This is
a good signal and hopefully the long period of low growth in the USA is now
coming to an end. Economic growth in China slowed somewhat down during 2015,
but stood at a healthy level of nearly 7%. The Indian economy is also growing
fast: by roughly 7.3% in 2015 and 7.4% in 2016. The strongest economic growth
is clearly outside Europe.
The following table illustrates index yields on various exchanges in 2015:
Finland / OMX Helsinki Index 10.8 %
Finland / OMX Helsinki CAP Yield Index 15.9 %
Sweden / OMX Stockholm Index 6.6 %
Norway / OBX Index 2.9 %
Denmark / OMX Copenhagen Index 29.3 %
USA / Nasdaq Composite Index 5.7 %
USA / S&P 500 Index -0.7 %
Bloomberg European 500 Index 6.2 %
MSCI World Index -2.7 %
Japan / Nikkei 225 Index 9.1 %
Norvestia’s share price (dividend-adjusted) 12.0 %
Norvestia’s Net Asset Value (dividend-adjusted) 9.4 %
Norvestia’s Amended Net Asset Value (dividend-adjusted) 17.3 %
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 91% (90%)
of total assets at year-end. The market value breakdown of the investments was
as follows:
2015 2014
MEUR % MEUR %
Listed shares and share funds* 88.7 50.9 % 77.5 52.6 %
Growth equity** 34.1 19.6 % 15.8 10.7 %
Hedge funds 18.9 10.9 % 17.5 11.9 %
Bonds and bond funds 16.1 9.2 % 21.3 14.5 %
Cash and other liquid assets 16.3 9.4 % 15.1 10.3 %
In total 174.1 100.0 % 147.2 100.0 %
* of which share funds EUR 14.0 million (12.1).
** fair value based on external valuation.
79% of the Group’s assets were in euros, 14% in Swedish krona, 6% in US dollars
and 1% in other currencies.
The return of the company’s Amended Net Asset Value during the year was, after
expenses and taxes, 17.3% and was achieved with a monthly calculated volatility
of 9.7%. At the same time the OMX Helsinki CAP Yield Index yielded 15.9% with a
volatility of 19.7%.
The size of the investment portfolio grew by approximately EUR 27 million
compared to the previous year which was due to the strong value development of
the portfolio. Returns on all asset classes were good, especially listed share
investments and growth equity. The biggest single returns in the market
portfolio were due to the increases in value of Nokia, Elisa and Finnair
shares. In the growth equity portfolio Coronaria Hoitoketju yielded the best.
Norvestia’s Net Asset Value fluctuated notably less month on month, than did
the stock market in general. The company protected its investments from time to
time by selling Euro Stoxx Index futures and by buying put options.
Approximately 40% of the Swedish krona currency risk was hedged with a currency
future.
GROWTH EQUITY
Norvestia’s Board of Directors approved in October 2015 a new investment
strategy for the company. The new strategy will have a significant effect on
the role of growth equity investment activities (previously industrial
investments) in the Group as their share of total investments will be increased
from the current 20% to approximately 50% during 2016–2018. Returns on growth
equity investments based on Amended Net Asset Values were over 100% in 2015.
In December, Norvestia invested in the Finnish cloud services consulting
company Fluido Oy which is the leading Nordic Salesforce partner. After the
arrangement, Norvestia’s stake in the company is 39.7%. During the fall,
Norvestia also invested in two equity funds, Lifeline Ventures Fund III and
Open Ocean Fund 2015.
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 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. According to 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 2015, the growth equity portfolio consisted of
five unlisted companies: Aste Holding which offers media production and
consulting, Coronaria Hoitoketju which offers health care services (includes
also the fast growing independent Touhula Group which offers early childhood
and preschool education), Fluido which offers cloud services consulting, Idean
Enterprises which offers customer experience design services and Polystar
Instruments which develops business intelligence software solutions. The total
balance value of interests in these companies amounted to EUR 14.4 million and
the total fair value based on external valuation EUR 28.2 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 1.1 million is now invested; EUR 2.0 million in
Lifeline Ventures Fund I, of which EUR 1.5 million is now invested; EUR 5.0
million in Lifeline Ventures Fund III (not yet invested) and EUR 3.0 million in
Open Ocean Fund 2015, of which EUR 0.0 million is now invested. In addition,
Norvestia has invested EUR 0.1 million in Lifeline Ventures Fund III AB.
NET ASSET VALUE AND SHARE PRICE
On 31 December 2015, Norvestia’s Net Asset Value stood at EUR 156.0 million or
EUR 10.19 per share (EUR 146.9 million or EUR 9.59 per share at the end of
2014). Taking into account the dividend of EUR 0.30, which was distributed in
March 2015, the company’s Net Asset Value increased by EUR 0.90 per share
(0.37) in the year under review, equal to a 9.4% increase (4.0%) from the
beginning of the year. In the last quarter, the increase in Net Asset Value
amounted to EUR 0.41 per share (0.04).
External valuations made to confirm the fair values of growth equity
investments resulted in an appreciation in the value of the associates. With
this appreciation, Amended Net Asset Value amounted to EUR 169.9 million
(149.0) on 31 December 2015, equal to a 17.3% dividend-adjusted increase (4.4%)
from the beginning of the year. In the last quarter, the increase in Amended
Net Asset Value amounted to EUR 1.21 per share (0.09). The difference between
Net Asset Value and Amended Net Asset Value was EUR 13.8 million (2.1).
According to IFRS, appreciations of investments in associates cannot be booked
because the associates are accounted for in Norvestia’s consolidated financial
statements using the equity method.
The dividend-adjusted price of Norvestia’s share rose by 12.0% (9.9%) during
the year. The price of the share stood at EUR 7.99 (7.40) on 31 December 2015,
corresponding to a discount in Net Asset Value of 21.6% (22.8%). The market
capitalization of Norvestia’s shares on 31 December 2015 was EUR 122.4 million
(106.7).
GROUP RESULT
The result of the Group in 2015 amounted to EUR 12.0 million (5.4/2014;
13.5/2013), and operating expenses to EUR 2.7 million (2.0/2014; 2.2/2013).
Operating expenses were 1.6% (1.3%/2014; 1.5%/2013) of Amended Net Asset Value.
The result for the last quarter was EUR 5.5 million (0.6/2014; 3.7/2013). The
return on equity was 7.9% (3.7%) and the return on investment 8.9% (3.9%).
LIQUIDITY AND SOLVENCY
Norvestia Group’s cash and cash equivalents totalled EUR 15.3 million at
year-end (14.1/2014; 14.6/2013). The equity ratio stood at 96.9% (99.0%/2014;
98.5%/2013). The Group’s shareholders’ equity totalled EUR 156.0 million
(146.9/2014; 146.5/2013).
PERSONNEL
In 2015 Norvestia Group employed an average of 7 (6/2014, 6/2013) people.
Personnel expenses were EUR 1.7 million (1.1/2014; 1.4/2013).
NORVESTIA GROUP
Norvestia Oyj is the parent company of Norvestia Industries Oy and Norventures
Oy, and an associated company of CapMan Group. Norvestia Industries Oy was
established in September 2007 in order to realize the Group’s growth equity
strategy.
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 2015, Norvestia Oyj had 5,226 shareholders (5,547). 8.8% (34.3%)
of the shares were in foreign ownership and 8.4% (34.0%) were
nominee-registered.
Norvestia’s largest shareholder is CapMan Plc with a holding of 28.7% (-) of
shares and votes at year-end. The second largest shareholder, Mandatum Life
Insurance Company, had an 11.7% (11.7%) holding of shares and 11.7% (7.6%) of
votes. The ten major shareholders held a total of 53.6% (58.6%) of shares and
53.6% (72.9%) of votes.
ANNUAL GENERAL MEETING
The Annual General Meeting (AGM) held 31 March 2015 decided to distribute EUR
0.30 per share as dividend for 2014. The dividend was paid 13 April 2015.
The following persons were re-elected to the Board:
J.T. Bergqvist, Chairman
Hilmar Thór Kristinsson, Vice Chairman
Brjánn Bjarnason, member
Georg Ehrnrooth, member
Robin Lindahl, member.
PricewaterhouseCoopers Oy was re-elected as auditor, with CPA Jan Holmberg as
main responsible auditor and CPA Lauri Kallaskari as deputy auditor. The AGM
unanimously decided to discharge the Board of Directors and the Managing
Director from liability for 2014.
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 B shares by 31 May 2016. No acquisitions were
made in 2015. 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 B shares. The authorization is effective until
31 May 2016.
EXTRAORDINARY GENERAL MEETING
Norvestia Oyj’s Extraordinary General Meeting held 12 June 2015 adopted the
proposal by the shareholders CapMan Plc and Kaupthing hf. for the combination
of the share classes of the company by way of amending the Articles of
Association so that the provisions on the class A and class B shares were
removed from the Articles of Association. Following the combination of the
share classes Norvestia Oyj has a single share class consisting of a total of
15,316,560 shares. Each of the shares will convey one vote at a General Meeting
of Shareholders and equal rights in every respect. Trading with the new share
began on the main list of Nasdaq Helsinki 23 June 2015 with a ticker symbol
NORVE.
The following persons were elected to the Board:
Heikki Westerlund, Chairman
Hannu Syrjänen, Vice Chairman
Georg Ehrnrooth, member (continues from the previous Board)
Niko Haavisto, member
Arja Talma, member.
In the organizing meeting of the Board Arja Talma was elected as Chairman of
the Audit Committee. Georg Ehrnrooth continues as a member of the committee.
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. Occasionally 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 still be situations where such hedges are not effective.
Norvestia’s five largest investments as of 31 December 2015 consisted of the
Didner & Gerge Aktiefond and Nektar funds, Fortum and Nokia shares, and the
growth investment in Coronaria Hoitoketju 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
The Board proposes that of the parent company’s distributable funds, EUR 0.79
per share (0.30) be distributed to shareholders as dividend, amounting to EUR
12.1 million (4.6) in total.
FUTURE PROSPECTS
On the stock markets 2016 has started hesitantly. The value of the OMX Helsinki
Cap Yield Index for example, fell by 2.9% in January.
Investors’ recent concern over the future economic development of China has
been the main factor behind the decline in share prices. China has been the
engine of growth in the world economy for years. Its economy is still growing
at a pace Europe can only dream of, but according to the latest estimates, the
growth of the Chinese economy will be less than previously forecast. If these
estimates are correct, lower Chinese growth will have wide ranging effects on
the world economy, particularly impacting the capital and raw material markets.
We are unlikely to see a period of rapid growth in the economy of the Eurozone
in 2016, and the area’s economy is forecast to grow by only 1.8% this year.
This forecast is, however, bound to the future development of China.
The surest forecast is that the risk-free interest level in Europe will hardly
increase this year. Risk-free interest is still close to zero or even below, so
there are not many safe havens on offer for investors. Despite the recent
decline in share prices, shares are still an attractive investment target when
considering dividend yields for example, and at some point investors will
likely return to the stock markets. From Norvestia’s perspective the situation
is interesting. Rapid and broad fluctuations in share prices often lead to
excesses which can present opportunities to a solid and fast-moving investor
like Norvestia.
Predicting the return on Norvestia’s growth equity portfolio is easier than
that of the market investment portfolio. The effect that sudden fluctuations on
the capital markets have on returns on growth equity investments is not as
straightforward, although the valuations of these are bound to general
long-term economic development. Currently the outlook for the growth equity
portfolio in 2016 is favorable. Particularly Coronaria Hoitoketju is forecast
to grow strongly during the current year which would have a very positive
effect on the result of the entire Norvestia Group.
In this sensitive investment environment, Norvestia aims to take into account
various possible scenarios in the economy and on the stock market, based on the
latest economic figures. Investment levels between shares, funds and
interest-yielding investments are assessed on the basis of the prevailing
situation.
NORVESTIA’S INVESTMENT STRATEGY 2016
Norvestia’s twofold investment strategy consists of market investments and
growth equity. The share of growth equity in Norvestia’s investment activities
will be increased during 2016–2018 to approximately 50% of the company’s total
investments. The yearly return target for growth equity investment activities
in the long term is 15% at minimum. The return target for market investments is
more moderate.
Market investments are made according to prevailing market circumstances
primarily in shares, hedge funds and bonds. The aim is to achieve a good
risk-adjusted return. At year-end a large part of Norvestia’s assets were
invested directly in shares on the Helsinki stock exchange. Investments may
also be made in other stock exchanges in order to diversify risks, and on the
basis of return expectations.
The object of growth equity investment activities is to find unlisted target
companies with the potential to grow rapidly, to make minority investments in
them and, as an active investor, to develop their value so as to achieve
returns in excess of the market average. Norvestia may also act as an active
minority owner in growth-oriented listed companies. In addition, investments
may be made in venture and buyout funds in fields or sectors in which Norvestia
does not invest directly.
The Annual General Meeting in the spring of 2015 authorized the Board of
Directors to purchase the company’s own shares and to decide on a possible
share issue. Both authorizations were meant to be used for growth equity
investments. The use of leverage can also be considered when it comes to
financing growth equity investments. The company’s Board has set a 20% cap for
the debt ratio. Currently the company has no interest-bearing debt.
KEY FIGURES
1/1-31/12/ 1/1-31/12/
2015 2014
Earnings per share, EUR 0.79 0.35
31/12/2015 31.12.2014
Equity ratio 96.9% 99.0%
Shareholders’ equity per share, EUR 10.19 9.59
Net Asset Value per share, EUR 10.19 9.59
Amended Net Asset Value per share, EUR 11.09 9.73
Net Asset Value, EUR million 156.0 146.9
Amended Net Asset Value, EUR million 169.9 149.0
Share price, EUR 7.99 7.40
Number of shares 15,316,560 15,316,560
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
EUR 1,000 1/10- 1/10- 1/1- 1/1-
31/12/ 31/12/ 31/12/ 31/12/
2015 2014 2015 2014
Trading gains and losses 7,344 1,028 15,455 6,611
Personnel expenses -589 -344 -1,689 -1,146
Depreciation and impairment charges -3 -6 -9 -23
Other operating expenses -397 -239 -1,041 -788
OPERATING PROFIT 6,355 439 12,716 4,654
Share of results of associates 536 1 824 514
Realized return from shares in associates - 359 - 359
Financial income and expenses 47 -48 157 174
RESULT BEFORE TAXES 6,938 751 13,697 5,701
Income taxes* -1,401 -235 -1,663 -302
RESULT FOR THE FINANCIAL PERIOD 5,537 516 12,034 5,399
Other comprehensive income, net of taxes:
Items that may be reclassified subsequently to profit or loss
Change in value of available-for-sale financial 645 114 1,710 281
assets
COMPREHENSIVE INCOME FOR THE PERIOD 6,182 630 13,744 5,680
* Based on the result for the period
Earnings per share, EUR 0.36 0.03 0.79 0.35
Number of shares: 15,316,560
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
EUR 1,000 31/12/2015 31/12/2014
ASSETS
NON-CURRENT ASSETS
Intangible assets 2 5
Tangible assets 17 15
Interests in associates 11,241 7,276
Loan receivables from associates 1,660 1,875
Available-for-sale financial assets 7,359 4,560
NON-CURRENT ASSETS IN TOTAL 20,279 13,731
CURRENT ASSETS
Financial assets held for trading 74,762 65,415
Other financial assets at fair value
through profit or loss 49,987 52,048
Receivables 657 2,997
Cash and cash equivalents 15,263 14,089
CURRENT ASSETS IN TOTAL 140,669 134,549
ASSETS IN TOTAL 160,948 148,280
SHAREHOLDERS' EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY
Share capital 53,608 53,608
Share premium 6,896 6,896
Fair value reserve 2,598 888
Retained earnings 80,882 80,079
Result for the period 12,034 5,399
SHAREHOLDERS' EQUITY IN TOTAL 156,018 146,870
Net deferred tax liabilities 3,088 1,041
Current liabilities 1,842 369
SHAREHOLDERS' EQUITY AND LIABILITIES IN TOTAL 160,948 148,280
CONSOLIDATED STATEMENT OF CASH FLOWS
EUR 1,000 1/10- 1/10- 1/1- 1/1-
31/12/ 31/12/ 31/12/ 31/12/
2015 2014 2015 2014
CASH FLOW FROM OPERATING ACTIVITIES
Result before taxes 6,938 751 13,697 5,701
Adjustments:
Unrealized gains -7,434 4,825 -8,379 8,619
Other operations which do not include cash -533 -355 -779 -584
transactions
Interest income -215 -239 -855 -974
Dividend income -96 -91 -4,907 -4,279
-1,340 4,891 -1,223 8,483
Changes in working capital
Change in shares and other investments -5,458 -6,799 430 -6,965
Change in receivables 269 1,971 2,214 -2,272
Change in current liabilities -723 -2,197 1,472 -1,067
-5,912 -7,025 4,116 -10,304
Dividends received 96 91 4,907 4,279
Interest received 215 239 855 974
Received and paid taxes -6 -10 83 -16
CASH FLOW FROM OPERATING ACTIVITIES -6,947 -1,814 8,738 3,416
CASH FLOW FROM INVESTING ACTIVITIES
Acquisitions of associates -2,776 -2,910 -3,176 -2,910
Sales of associates - 2,546 - 2,546
Loan receivables from associates - 1,063 215 1,763
Investments in intangible and tangible assets -1 - -8 -10
CASH FLOW FROM INVESTING ACTIVITIES -2,777 699 -2,969 1,389
CASH FLOW FROM FINANCING ACTIVITIES
Dividends paid - - -4,595 -5,361
CASH FLOW FROM FINANCING ACTIVITIES - - -4,595 -5,361
CHANGE IN CASH AND CASH EQUIVALENTS -9,724 -1,115 1,174 -556
Cash and cash equivalents at the beginning of 24,987 15,204 14,089 14,645
the period
Cash and cash equivalents at the end of the 15,263 14,089 15,263 14,089
period
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
Fair Result
Share Share value Retaine for the
d
EUR 1,000 capital premium reserve earning period Total
s
Shareholders’ equity 53,608 6,896 606 71,941 13,498 146,549
1.1.2014
Allocations 13,498 -13,498 0
Other comprehensive income 282 282
Dividends -5,360 -5,360
Result for the period 5,399 5,399
Shareholders’ equity 53,608 6,896 888 80,079 5,399 146,870
31.12.2014
Shareholders’ equity 53,608 6,896 888 80,079 5,399 146,870
1.1.2015
Allocations 5,399 -5,399 0
Other comprehensive income 1,710 1,710
Dividends -4,596 -4,596
Result for the period 12,034 12,034
Shareholders’ equity 53,608 6,896 2,598 80,882 12,034 156,018
31.12.2015
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 2015
consolidated financial statements. Formulas for calculating key figures remain
the same as in the financial statements and annual report 2015. 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
2015 did not have a material effect on Norvestia's financial statement release
for 2015.
TAXES RELATED TO OTHER COMPREHENSIVE INCOME
EUR 1,000 1/1-31/12/2015 1/1-31/12/2014
Revaluation of available-for-sale financial assets
Income before taxes 2,138 352
Tax expense -428 -71
Net of tax amount 1,710 281
CONTINGENT LIABILITIES
Securities given as collateral for derivatives trades
31/12/2015 31/12/2014
Carrying amount of pledged securities 4,910 7,137
FUND COMMITMENTS
Commitment to invest in Amanda V East Ky 868 1,148
Commitment to invest in Lifeline Ventures Fund I Ky 473 844
Commitment to invest in Lifeline Ventures Fund III Ky 5,000 -
Commitment to invest in Open Ocean Fund 2015 Ky 2,968 -
In total 9,309 1,992
DERIVATIVE CONTRACTS
Norvestia uses standardized derivative contracts to make the portfolio
management more effective. The acquisition values and 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.
Hedge accounting is not used.
31/12/2015 31/12/2014
Equity derivatives, EUR 1,000
Sold put options, open positions
Underlying value 172 202
Acquisition value -25 -37
Fair value -5 -18
Sold call options, open positions
Underlying value -111 -
Acquisition value -18 -
Fair value -3 -
Index derivatives, EUR 1,000
Bought call options, open positions
Underlying value 1,765 -
Acquisition value 146 -
Fair value 28 -
Sold futures, open positions
Underlying value -32,740 -4,707
Fair value -80 8
Foreign exchange derivatives, EUR 1,000
Sold futures, open positions
Underlying value -10,523 -10,336
Fair value -66 62
RELATED PARTY TRANSACTIONS
The following transactions were carried out with related parties:
1/1-31/12/2015 1/1-31/12/2014
Related party, EUR 1,000
Aste Holding Oy
Interest income 102 107
Coronaria Hoitoketju Oy
Interest income 85 86
Idean Enterprises Oy
Purchases 6 -
Miltton Group
Interest income - 79
Purchases - -50
The Group has granted Aste Holding Oy a loan of 860 (1,075) and Coronaria
Hoitoketju Oy a loan of 800 (800). Purchases from related parties were made at
normal market prices. The related party relation with Miltton Group ended 26
November 2014 when the Group's share of the company was sold. During 12 May–31
December 2015 Norvestia had no related party transactions with CapMan Group.
INVESTMENTS 31 DECEMBER 2015
Number Acquisitio Fair Share of
n
of shares/ price value total
units EUR EUR invest-
1,000 1,000 ments
NORVESTIA OYJ
LISTED SHARES
Ahlstrom Corporation 53,455 596 387 0.3 %
Amer Sports Corporation 55,105 368 1,486 1.0 %
Apetit Plc 74,294 914 940 0.6 %
Atria Plc 125,672 1,322 1,137 0.8 %
Caverion Corporation 93,034 362 840 0.6 %
Elisa Corporation 108,450 2,144 3,773 2.6 %
Finnair Plc 423,394 1,824 2,295 1.6 %
Fortum Corporation 416,842 7,336 5,802 4.0 %
HKScan Corporation A share 83,875 541 320 0.2 %
Honkarakenne Oyj B shares 451,739 1,669 723 0.5 %
Huhtamäki Oyj 78,409 488 2,627 1.8 %
Kemira Oyj 130,214 1,589 1,417 1.0 %
Kesko Corporation B share 83,323 2,245 2,697 1.9 %
Konecranes Plc 38,531 928 882 0.6 %
Metso Corporation 47,753 1,307 989 0.7 %
Metsä Board Corporation B share 281,666 373 1,932 1.3 %
Neste Oil Corporation 83,367 1,453 2,303 1.6 %
Nokia Corporation 840,937 3,586 5,546 3.8 %
Nokian Tyres plc 40,392 1,118 1,337 0.9 %
Oriola-KD Corporation B share 109,320 184 472 0.3 %
Orion Corporation B share 43,354 1,016 1,386 1.0 %
Outotec Oyj 195,000 1,139 663 0.5 %
Raisio plc V share 173,400 267 735 0.5 %
Ramirent Plc 72,897 260 470 0.3 %
Rapala VMC Corporation 125,700 761 596 0.4 %
Sampo plc A share 90,537 3,874 4,255 2.9 %
Sanoma Corporation 112,633 968 440 0.3 %
Sponda Plc 718,196 2,598 2,818 1.9 %
Stockmann plc B share 62,918 706 393 0.3 %
Stora Enso Oyj R share 330,533 1,841 2,773 1.9 %
Tikkurila Oyj 81,311 1,284 1,310 0.9 %
UPM-Kymmene Corporation 174,211 2,205 3,002 2.1 %
Uponor Corporation 50,826 686 691 0.5 %
Valmet Corporation 57,753 387 514 0.4 %
Wärtsilä Corporation 18,000 720 759 0.5 %
YIT Corporation 113,053 1,125 592 0.4 %
Nomura Nikkei 225 ETF 6,670 810 993 0.7 %
Nordea Bank AB FDR 422,465 4,926 4,284 3.0 %
Powershares QQQ 34,100 2,131 3,504 2.4 %
SPDR S&P 500 ETF Trust 26,885 3,868 5,035 3.5 %
TeliaSonera AB 345,000 1,545 1,581 1.1 %
63,464 74,699 51.6 %
FUNDS
Brummer & Partners 18,360 3,500 3,837 2.7 %
Multi-Strategy Euro
Brummer & Partners Nektar 20,748 4,128 5,686 3.9 %
Brummer & Partners Zenit 455 575 2,951 2.0 %
Didner & Gerge Aktiefond 27,326 1,999 6,511 4.5 %
eQ Euro Investment Grade 1 K 15,450 3,228 3,207 2.2 %
eQ High Yield Bond 1 K 14,935 3,518 3,524 2.4 %
Evli Emerging Frontier B 3,852 500 508 0.4 %
Evli Eurooppa B 10,158 800 1,220 0.8 %
Fondita European Top Picks B 6,960 812 1,020 0.7 %
Fourton Hannibal A 14,482 1,000 1,634 1.1 %
OP-Suomi Arvo A 5,270 396 1,316 0.9 %
RAM ONE 27,421 2,383 3,957 2.7 %
Russian Prosperity Fund Euro A 8,000 721 488 0.3 %
Taaleritehdas Arvo Markka 9,071 1,020 1,314 0.9 %
VISIO Allocator 14,737 2,069 2,434 1.7 %
26,649 39,607 27.2 %
DERIVATIVE CONTRACTS
Euro Stoxx call options (bought) 1,400 146 28 0.0 %
Fortum put options (sold) 1,000 -25 -5 0.0 %
Fortum call options (sold) 1,000 -18 -3 0.0 %
103 20 0.0 %
BONDS nominal
value
Ahlstrom, expires 2/10/2017 2,000 2,080 2,100 1.4 %
Finnair, expires 13/10/2020 1,500 1,500 1,592 1.1 %
Outokumpu, expires 30/9/2019 1,750 1,746 1,600 1.1 %
Pohjola, expires 29/2/2016 1,000 930 999 0.7 %
Sanoma, expires 12/12/2016 1,000 1,022 1,017 0.7 %
Sponda, expires 5/12/2017 1,000 1,050 1,028 0.7 %
SRV, expires 28/12/2016 1,000 1,040 1,028 0.7 %
Stockmann, expires 31/1/2020 1,000 1,014 1,016 0.7 %
10,382 10,380 7.1 %
NORVESTIA OYJ IN TOTAL 100,598 124,706 85.9%
NORVESTIA INDUSTRIES OY
UNLISTED ASSOCIATED COMPANIES
Aste Holding Oy 4,000 800 1,074 0.7 %
Coronaria Hoitoketju Oy 35,307 3,112 4,416 3.0 %
Fluido Oy 48,805 2,776 2,776 1.9 %
Idean Enterprises Oy 354,920 3,311 2,975 2.1 %
Loans to associates 1,660 1,660 1.2 %
11,659 12,901 8.9 %
PRIVATE EQUITY FUNDS
Amanda V East Ky 1,001 803 0.6 %
Lifeline Ventures Fund I Ky 1,356 3,266 2.3 %
Lifeline Ventures Fund III AB 72 117 0.1 %
Open Ocean Fund 2015 Ky 32 32 0.0 %
2,461 4,218 3.0 %
NORVESTIA INDUSTRIES OY IN TOTAL 14,120 17,119 11.9 %
NORVENTURES AB
UNLISTED COMPANIES
Polystar Instruments AB 266,000 1,717 3,142 2.2 %
NORVENTURES AB IN TOTAL 1,717 3,142 2.2 %
NORVESTIA GROUP IN TOTAL 116,435 144,967 100.0 %
The table does not include cash and cash equivalents of the Group.
* The fair value of the associated companies is presented as the consolidated
balance value.
The financial statement release is based on the audited financial statements
2015. The 2015 annual report will be published during week 7.
The parent company’s distributable reserves amount to EUR 63,440,618 from which
the profit for the financial period is EUR 4,935,389. The financial position of
the company has not essentially changed after the end of the accounting period.
Neither can the proposed distribution of dividend be considered to affect the
company’s solvency.
The Board of Directors proposes to the Annual General Meeting that from the
parent company’s distributable funds, EUR 0.79 per share be distributed to
shareholders as dividend, amounting to EUR 12.1 million in total.
The Annual General Meeting will be held on Tuesday 15 March 2016 at 11:00.
Helsinki 3 February 2016
NORVESTIA OYJ
Board of Directors
On behalf Juha Kasanen
Managing Director
Tel. +358-9-6226 380
DISTRIBUTION
Nasdaq Helsinki
Main media
www.norvestia.fi
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