Sievi Capital Oyj - Interim Management statement

SIEVI CAPITAL PLC INTERIM MANAGEMENT STATEMENT 29 APRIL 2014 AT 4:00 P.M

SIEVI CAPITAL PLC INTERIM MANAGEMENT STATEMENT 29 APRIL 2014 AT 4:00 P.M.



SIEVI CAPITAL PLC'S INTERIM MANAGEMENT STATEMENT 1 JANUARY TO 31 MARCH 2014

January-March

- Profit for the review period was EUR -0.2 (0.0) million

- Earnings per share were EUR 0.0 (EUR 0.0).

- Net worth at the end of March was EUR 1.56 (1.62) per share. The 12-month
capital return-adjusted (0.06) change in net worth per share was 0.0 %. 

The comparison figures for the corresponding period the previous year are
presented in brackets. 

Sievi Capital plc has not announced its profit outlook for 2014. The figures
presented in the interim management statement are unaudited. 

Sievi Capital plc's investment activity can be divided into strategic capital
investments and financial investments. New strategic capital investments were
not made during the review period. Financial investments consist mainly of
bonds, funds and structured products. Value of financial investments developed
as expected and changes in net worth were mainly due to changes in the value of
financial investments. 

Harri Takanen, CEO:

”During the first quarter of 2014 no new strategic capital investments were
made and the investments remained unchanged. As for the financial investments,
the company took a step towards more liquid and low-risk investments. iLoq Ltd,
Sievi Capital plc's holding 23.2 %, exceeded slightly its budgeted turnover and
the EBIT in unaudited income statement of the first quarter was positive. The
turnover of IonPhasE Ltd, Sievi Capital plc's holding 35.8 %, has continued to
grow during the first quarter. IonPhasE Ltd is in a kind of developmental phase
where it still needs additional financing. During the year 2013 Sievi Capital
plc made investments in convertible bonds of IonPhasE Ltd amounting to EUR 0.7
million. 

After the review period on April 7th 2014 Jussi Capital Ltd gained the
ownership of 28.500.829 shares in Sievi Capital plc, corresponding 50.07 per
cent of the total number of the shares and voting rights in Sievi Capital plc.
As a result of this, according to the chapter 11, section 19, of the Securities
Markets Act, Jussi Capital Ltd is obliged to make a public offer for the total
amount of shares in Sievi Capital Plc. Furthermore, Jussi Capital Ltd has
announced on April 9th 2014 that due to commitments received by Jussi Capital
Ltd, its ownership in Sievi Capital plc will increase above 2/3. Jussi Capital
Ltd has announced that its goal is to terminate Sievi Capital plc's stock
listing and continue its operations outside the stock exchange. 

The Board of Directors of Sievi Capital plc shall perform a general assessment
based on the recommendation by the independent members of the Board and publish
a statement about the takeover bid at the latest 5 business days before the
bidding window closes, in accordance with to the Chapter 11 Section 13 of the
Securities Market Act.” 

NET WORTH

In the end of March 2014, Sievi Capital plc's net worth per share was EUR 1.56.
Compared to the beginning of 2014, the change is 1.4%. Sievi Capital publishes
its net worth calculation quarterly. The number of outstanding shares used in
the net worth calculation is 57,730,439. 

In the calculation of net worth, publicly quoted securities, investment funds
and derivatives are valued at the closing price. However, for the associated
company Kitron ASA, Apetit Plc and Efore Plc, the price used is the
volume-weighted average price for the five days preceding the valuation date. 

Otherwise, if no public trading price has been available, the bid quote or
value ratified by the issuer have been used. 

Unquoted shares and holdings are measured at fair value, using imputed
valuation methods. 



ASSOCIATED COMPANIES

iLoq Ltd's turnover has continued its positive development and the budgeted
turnover was slightly exceeded. The profit for each month was positive.
Company's management estimates that its turnover will continue to grow on the
financial period of 2014. 
www.iloq.fi

The efficiency program at Panphonics Ltd is completed and the operational cost
level has been adapted to correspond with the prevailing demand. There are no
immediate funding requirements in relation to Panphonics Ltd. 
www.panphonics.com

The growth prospects for IonPhasE Ltd in packaging solutions for the chemical
and electronics industries are good. Although customer contracts with leading
providers within these fields proceed slowly. 
www.ionphase.fi

The Norwegian associated company Kitron ASA disclosed its outlook in its
quarterly statements bulletin published on 23 April 2014. 
www.kitron.com

RESOLUTIONS OF THE ANNUAL GENERAL MEETING HELD AFTER THE REVIEW PERIOD ON 8
APRIL AND AUTHORISATIONS OF THE BOARD OF DIRECTORS 

On 8 April 2014, Sievi Capital plc's Annual General Meeting confirmed the
financial statements for 2013 and discharged the Board of Directors and the CEO
from liability. 

In line with the Board of Directors' proposal, the Annual General Meeting
decided to pay a dividend of EUR 0.05 per outstanding share. The dividend
matching day was 11 April 2014 and the dividend payment day was 23 April 2014. 

The Annual General Meeting resolved that the Board of Directors consists of
three members. Asa-Matti Lyytinen and Jonna Tolonen were re-elected as members
of the Board of Directors, and Seppo Laine was elected as a new member. Jorma
J. Takanen was elected as a deputy member of the Board. The Meeting confirmed
the remuneration for the Chairman of the Board of Directors is EUR 1,500/month
and for the member of the Board EUR 1,000/month. 

The remuneration for the auditor shall be paid against the auditor's reasonable
invoice. The company's auditor is KPMG Oy AB, a company of Authorised Public
Accountants, and the main auditor is Authorised Public Accountant Antti
Kääriäinen. The auditor is appointed for an indefinite term. 

In its first meeting the Board of Directors elected Asa-Matti Lyytinen as the
Chairman of the Board of Directors. 

The Meeting authorized the Board of Directors to decide on the acquisition of
the Company's own shares with distributable assets in accordance with the Board
of Directors' proposal and to decide on a share issue. The maximum number of
the shares to be repurchased is 3,000,000 shares. The shares will be purchased
using the company's non-restricted equity so the acquisition of shares will
decrease the Company's distributable non-restricted reserves. Shares will be
purchased in another proportion than that of the holdings of the current
shareholders. Purchasing will take place through public trading arranged by
NASDAQ OMX Helsinki Ltd. The shares will be purchased at the fair value
established in public trading at the time of acquisition. The authorization
cancels the authorization given in the Annual General Meeting on 18 April 2013
to repurchase the company's own shares. The authorization will remain in force
for 18 months after it is issued 

The Meeting authorized The Board to decide on granting option rights to key
people of the company. The total number of option rights is 300,000 and they
entitle to subscribe for a combined total of 300,000 of the company's new
shares or shares in its possession. The subscription price of shares subscribed
with option rights is based on the trading volume weighted by the Company's
average share price on the NASDAQ OMX Helsinki in March 2014, 2015, and 2016.
The subscription period for option right 

2014A is 1 May 2017 - 30 April 2019, option right 2014B is 1 May 2018 - 30
April 2020 and option right 2014C 1 May 2019 - 30 April 2021. Commencement of
the subscription period requires that the production or financial goals defined
annually by the Board are met. The terms of Option Scheme can be found on
company's web page. 

FUTURE PROSPECTS

Reliably predicting the fair values of Sievi Capital plc's investments is
associated with uncertainties and largely dependent on general market
development as well as other factors beyond the company's control. For this
reason, Sievi Capital plc will not issue an estimate of the future value
development of its investments. 



SIEVI CAPITAL PLC

Harri Takanen

President and CEO



Additional information:

Harri Takanen, President and CEO

tel. +358 8 4882 502



DISTRIBUTION

NASDAQ OMX Helsinki

Major media

www.sievicapital.com



Sievi Capital plc is an investment company whose task is to manage the
company's assets efficiently and profitably by distributing risks and looking
for new growth opportunities through these measures. 

Sievi Capital plc's associated companies:

Kitron ASA (KIT) (Sievi Capital plc's holding 33.0%) is a Norwegian listed
contract manufacturer that operates in five different customer segments: the
marine and oil industry, basic industry, defense equipment industry, hospital
and healthcare equipment industry and data and telecommunications industry. In
addition to Norway, Kitron has plants and production in Sweden, Lithuania,
Germany, China and the United States. 
www.kitron.com

iLOQ Ltd (Sievi Capital plc's holding 23.2%) develops, manufactures and markets
innovative, patented, high-security, electronic and self-operated locking
solutions that combine modern mechatronics with communications and software
technology. The added customer value of the iLOQ S10-product range has been
shown to be good and the company has achieved a significant market position in
the Nordic countries and a favorable reception in Central Europe. Marketing of
the DIN-compliant lock cylinder solution developed for the Central European
market has commenced in Germany and the Netherlands. 
www.iloq.com

IonPhasE Ltd (Sievi Capital plc's holding 35.8%) develops and manufactures
high-quality dissipative polymers that help to control static electricity in
plastic products. IonPhasE products are utilised in a wide range of industries,
such as chemical, automotive, telecommunications and consumer electronics.
IonPhasE manufactures IonPhasE IPE polymers based on its patented proprietary
technology. 
www.ionphase.fi

Panphonics Ltd (Sievi Capital plc's holding 40.0%) is a leading manufacturer of
products based on directional audio technology. Panphonics manufactures
solutions based on proprietary patented directional audio technology for
acoustically demanding applications. The company's SoundShower speaker
solutions are used in banks, store-specific advertisement systems, information
kiosks and offices. In addition Panphonics is a component manufacturer. 
www.panphonics.com

Besides the associated companies, Sievi Capital plc's holding in Apetit Plc is
10.2% and in Efore plc 19.5%. Apetit Plc is a food production company whose
shares are quoted on NASDAQ OMX Helsinki Ltd. 

The group's business segments are Frozen Food, Seafood and Grains and Oil
seeds. Apetit Plc operates in the northern Baltic Sea region. 
www.apetitgroup.fi

Efore Plc is an international company which develops and produces demanding
power products whose shares are quoted on NASDAQ OMX Helsinki Ltd. Efore Plc's
product development and marketing units are located in Finland, Sweden and
China. Company ́s production unit is located in China. 
www.efore.com

Not for release, publication or distribution, directly or indirectly, in any
country in which the distribution or release would be unlawful. Advance views:
Certain statements in this stock exchange release are advance views that
involve known and unknown risks, uncertainty factors and other factors that may
result in Sievi Capital plc's actual results, performance or achievements
deviating substantially from the future results, performance or achievements
described or referred to in such advance views. The advance views contained by
this stock exchange release may contain words such as "may,” “will,”
“expected,” “estimated,” “planned,” “believed,” or other such terminology. New
risk factors may emerge from time to time, and the company management is not
able to predict all such risk factors or their potential impacts on Sievi
Capital plc's actual results, performance or achievements that may deviate
substantially from what is mentioned in the advance views. Considering these
risk factors and elements of uncertainty, investors should not rely too much on
advance views in forecasting the actual results. The advance views presented in
this stock exchange release are topical only on the date mentioned in this
stock exchange release. It is not expected that such information would be
updated, complemented or revised in all situations, unless required by law or
regulation, on the basis of new information, changing circumstances or future
events or in other situations.