Norvestia - Company Announcement

NEW INVESTMENT STRATEGY FOR NORVESTIA

Helsinki, Finland, 2015-10-27 08:50 CET (GLOBE NEWSWIRE) -- 

Norvestia Oyj    Stock exchange release    27 October 2015 at 9:50

NEW INVESTMENT STRATEGY FOR NORVESTIA

As a result of the Group's strategy process the Board of Directors of Norvestia
Oyj has 26 October 2015 approved a new investment strategy for the company.
Over the coming years Norvestia aims to allocate approximately EUR 100 million
in total for growth equity (previously industrial investments). The company has
also updated its financial targets. 

Share of growth equity will be increased

Norvestia's new strategy, like its previous one, is twofold consisting of both
market investments and growth equity. The share of growth equity in Norvestia's
investment activities will be increased, however, during 2016-2018 from the
current 10% to approximately 50% of the company's total investments. 

The object of these 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. According to the new strategy,
Norvestia may also act as an active minority owner in growth-oriented listed
companies and thus participate in the development of the target company. In
addition, investments may be made in venture and buyout funds in fields or
sectors in which Norvestia does not invest directly. 

”According to this new strategy, growth will be at the core of Norvestia's
operations. This will benefit both Norvestia's shareholders and the target
companies. We want to offer growth companies the financing they need and to
participate in the long-term development of these companies”, Juha Mikkola,
Head of Growth Equity, commented on the new strategy. 

Market investments are made according to prevailing market circumstances
primarily in shares, hedge funds and bonds. The object of market investments is
to achieve a good risk-adjusted return. 

Updates to financial targets

In addition to the new strategy, the Board of Directors of Norvestia has 26
October defined Norvestia's financial targets. The targets are directed towards
return, debt ratio and dividend policy. 

Return target

The yearly return target for growth equity investment activities in the long
term is 15% at minimum. Growth equity investments have yielded more than 20%
annually over the last three years. The return target for market investments is
more moderate. 

“The purpose of the policy definitions made is to increase Norvestia's
long-term total return from the current 6.5% annual level to near 10%”, says
Norvestia's Managing Director Juha Kasanen. 

Debt ratio

The company may also use leverage to increase its investment activities when
necessary. The company's Board has set a 20% cap for the debt ratio. Currently
the company has no debt. 

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 instead of the previous
50%. 

Norvestia Oyj

Juha Kasanen
Managing Director



More information:
Juha Kasanen, Managing Director, tel. +358 9 6226 380
Juha Mikkola, Head of Growth Equity, tel. +358 50 590 0522

DISTRIBUTION
Nasdaq Helsinki
Main media
www.norvestia.fi



Norvestia Oyj is a publicly listed investment company. 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.