SRV Yhtiöt Oyj - Company Announcement

SRV Group Plc’s Board of Directors approve new multi-year incentive scheme for key personnel

Espoo, Finland, 2014-02-20 08:00 CET (GLOBE NEWSWIRE) -- SRV GROUP PLC  STOCK
EXCHANGE RELEASE  20 FEBRUARY 2014, AT 09:00 

The Board of Directors of SRV Group Plc has decided on a new share-based
incentive scheme for the Group's key personnel. The purpose of the scheme is to
combine the goals of shareholders and key individuals for raising the value of
company as well as to strengthen key individuals' commitment to the company.
The scheme covers 26 key SRV personnel. 

The key indicators for the scheme's performance period 2014-2016 are the
Group's cumulative operating profit margin and return on equity. In addition,
the rewards will be influenced by other business-specific indicators specified
for 2014-2016. 

When the indicators are fulfilled, the bonus will be paid partly in the
company's shares and partly in cash. Within the context of the scheme, a
maximum of 588,000 SRV Group Plc shares and a cash payment for tax purposes
corresponding to the value of the conveyed shares may be conveyed for no
consideration to key individuals. The total recognised IFRS cost of the portion
given as shares over the lifetime of the incentive scheme 2014-2018 will be
approximately EUR 2.8 million, with the addition of the cash payment. The Black& Scholes model, applied in the pricing of options, has been used to calculate
the theoretical cost of the shares, with the following assumptions: share price
EUR 4.00, risk-free interest rate 0.86 per cent and volatility 32 per cent. 

Personnel belonging to the scheme must hold at least half of the shares
received on the basis of the scheme until 31 December 2017 and at least half
until 31 December 2018. If a key individual's employment ends during the above
commitment period, he/she must surrender the shares for no consideration back
to the company. 

SRV Group Plc

Taneli Hassinen
Vice President, Communications
tel. +358 40 504 3321
taneli.hassinen@srv.fi