interim report 1/1 30/9/2013

Transcription

1 interim report 1/1 30/9/2013 Q3

2 SIMPLE AND TRANSPARENT INVESTMENT Norvestia s purpose is to make professional investment activities accessible to all, on equal terms, with the aim of making a steady return, without sacrificing time or effort. Thanks to Norvestia s streamlined business model, investors can be sure that Norvestia s interests always match their own. NORVESTIA IN BRIEF Norvestia Oyj is a publicly listed investment company. Norvestia Group mainly invests in Nordic shares, equity funds, hedge funds, bonds, in the money market and in industrial investments. The aim of Norvestia s investment activities is to achieve a good risk-adjusted return. INTERIM REPORT 1/1 30/9/2013 The Net Asset Value (dividend-adjusted) increased by 7.4% during the period (1.7%). The amended Net Asset Value (dividend-adjusted) increased by 7.9% during the period (2.5%). The result for the period amounted to EUR 10.0 million (2.5). The Net Asset Value per share was EUR 9.32 (8.76). The amended Net Asset Value per share was EUR 9.43 (8.82). EUR 0.30 per share was distributed as dividend in March 2013 (0.30).

3 CAPITAL MARKETS After a decline in June, share prices rallied again in July. This rise in share prices continued throughout the summer and peaked in September when the value of the OMX Helsinki CAP Yield Index rose by 9.9%. The total return of the index was 16.7% in the third quarter of the year. Such a large increase in the value of the index in one quarter is rather exceptional. A corresponding quarterly return on the Helsinki stock exchange hasn t been seen since 2009, when the value of the index rose by 20.4%. The key explanation for the strong market return during the third quarter was improved market sentiment. The uncertainty factors of the early summer were at least momentarily forgotten. The announcement by the United States central bank (Fed) that it would postpone its gradual reduction of quantitative easing was greeted positively on the share markets. The diplomatic solution to the crisis caused by the chemical weapons in Syria further improved sentiment and the result of the parliamentary elections in Germany was considered a good omen. Angela Merkel s clear electoral victory indicates that the current economic policy in Germany will continue, which is considered important for the future of the eurozone. In addition to the above-mentioned factors there was, however, one central explanation for the positive return on the Helsinki stock exchange in September. Nokia announced at the beginning of September its intensions to sell its mobile phone operations to Microsoft. Nokia s mobile phone business has been in severe difficulties in recent years and there has long been speculation on the markets that Nokia might let it go. However, Nokia s 3 September announcement came as a complete surprise. The news was greeted very positively and buoyed Nokia s share price by as much as 66% during September. This increase accounted for approximately half of the increase of the OMX Helsinki CAP Yield Index in September. The sale of Nokia s mobile phone business brings to a close one of the most significant stories of Finnish industry. Although Nokia s share price rose sharply in September, it is still less than 10% of its year 2000 high. Nokia s share has indeed proved a disappointing investment to many long-term investors and its price has declined almost continuously for the last five years. The most important recently published economic indicators have slightly exceeded expectations and suggest that the recession in the eurozone might well be ending. The GDP of the eurozone also ticked up already during the second quarter of the year. Growth projections are, however, rather modest. According to the latest forecasts, the eurozone is expected to contract by 0.6% during the present year and to grow by 0.9% next year. Index trends on various exchanges for the first nine months of 2013 have been as follows: Finland/OMX Helsinki Index 18.3% Finland/OMX Helsinki CAP Yield Index 23.3% Sweden/OMX Stockholm Index 15.9% Norway/OBX Index 12.0% Denmark/OMX Copenhagen Index 17.3% USA/Nasdaq Composite Index 24.9% USA/S&P 500 Index 17.9% Bloomberg European 500 Index 11.0% MSCI World Index 15.3% Japan/Nikkei 225 Index 39.1% Norvestia s share price (dividend-adjusted) 13.8% Norvestia s Net Asset Value (dividend-adjusted) 7.4% Norvestia s amended Net Asset Value (dividend-adjusted) 7.9% NET ASSET VALUE AND SHARE PRICE On 30 September 2013, Norvestia s Net Asset Value stood at EUR million or 9.32 per share (EUR 8.76 per share on the same date last year) against EUR 8.97 at the end of Taking into account the dividend of EUR 0.30 which was distributed in March 2013, the Net Asset Value increased by EUR 0.65 per share (0.16) in the period under review, equal to a 7.4% increase (1.7%). During the third quarter, the Net Asset Value increased by EUR 0.47 per share (0.12). Due to a refinancing round, an external revaluation has been made of one of the associates, Coronaria Hoitoketju Oy, which has resulted in an appreciation in the value of industrial investments. With this appreciation, the amended Net Asset Value amounted to EUR million (135.1) on 30 September 2013, equal to a 7.9% increase (2.5%). According to IFRS, this type of appreciation of investments in associates cannot be booked because the associates are accounted for in Norvestia s consolidated financial statements using the equity method. The price of Norvestia s listed B share stood at EUR 6.77 (6.40) on 30 September 2013, which corresponded to a discount in Net Asset Value of 27% (27%). The market capitalization of Norvestia s B shares was EUR 97.6 million (92.3) on 30 September The price of Norvestia s B share was EUR 6.21 at the end of The total turnover for the B shares on the stock exchange was EUR 4.4 million (0.6) in the third quarter. The average daily turnover amounted to EUR 67,363 (10,844). The number of shares traded was 665,734 (104,571) which corresponds to 4.6% (0.7%) of B shares and 4.3% (0.7%) of total shares. Norvestia s share capital is divided into 900,000 A shares and 14,416,560 B shares, 15,316,560 shares in total. The A shares are unlisted. interim report 1/1 30/9/2013 Norvestia Oyj 3

4 GROUP RESULT The result of the group for January September 2013 amounted to EUR 10.0 million (2.5) and operating expenses to EUR 1.6 million (1.3). The return on equity was 7.1% (1.8%) and the return on investment 8.3% (1.6%). The result for the third quarter amounted to EUR 7.3 million (1.9). This interim report has been prepared in accordance with the IFRS. The same accounting principles have been used in the interim report and in the 2012 financial statements. Formulas for calculating key financial figures remain the same as in the financial statements and annual report The diluted profit per share is not shown, as the company has issued no instruments with a diluting effect. NORVESTIA S INVESTMENTS Norvestia s investments excluding interest-bearing investments and cash were 89% (73%) of total assets at the end of September. The market value breakdown of the investments was as follows: 30/9/ /9/2012 EUR million % EUR million % Listed shares Industrial investments Hedge funds Equity funds Bonds and bond funds Cash and cash equivalents In total % of the group s assets were in euros, 14% in Swedish krona, 3% in US dollars and 3% in other currencies. The value of Norvestia s investment portfolio increased markedly during the third quarter of the year. The biggest single profit was due to the increase in the value of Nokia s share and convertible bond. Norvestia s Net Asset Value fluctuated less month on month than the stock market in general. Norvestia hardly hedged against general stock market risk during the third quarter. Approximately half of the Swedish krona currency risk was hedged with a currency future. INDUSTRIAL INVESTMENTS In September, Norvestia invested in the media production and consulting company Aste Helsinki Oy. Through the arrangement, Norvestia s stake in the company is 40%. After the period under review, Norvestia sold its stake in GSP Group Ltd in October, with no significant effect on the result. Investments in unlisted companies belong to Norvestia s industrial investment portfolio, which is administered by Norvestia s subsidiary Norvestia Industries Oy. The aim of Norvestia s industrial 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 its 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 September 2013, the industrial investment portfolio comprised five unlisted companies: Aste Helsinki which offers media production and consulting, Coronaria Hoitoketju which offers health care services, Miltton Group which offers innovative communications services, GSP Group which offers construction consulting and Polystar Instruments which develops business intelligence software solutions. The total value of interests in these companies amounted to EUR 6.1 million. In addition, Norvestia owned 8.9% of Honkarakenne Oyj corresponding to EUR 1.3 million at the end of September Norvestia has committed itself to investing EUR 2.0 million in Lifeline Ventures Fund I, of which EUR 0.7 million is now invested. In addition, Norvestia has committed itself to investing EUR 2.0 million in the Amanda V East private equity fund, of which EUR 0.7 million is now invested. Norvestia has also invested EUR 0.1 million in Lifeline Ventures Fund III. According to the current investment strategy, about 20 30% of investment assets may be used for industrial investments. These investments have no time limits and will be made when the right opportunity presents itself. NORVESTIA GROUP Norvestia Oyj is the parent company of Norvestia Industries Oy and Norventures Oy. The parent company of the entire group is Kaupthing hf. which is domiciled in Reykjavik, Iceland. Norvestia Group mainly invests in Nordic shares, equity funds, hedge funds, bonds, in the money market and in industrial investments. Norvestia Oyj s B share is quoted on the Nasdaq OMX Helsinki Ltd. PERSONNEL During the first nine months of 2013, Norvestia Group employed an average of 6 people (6). SHAREHOLDERS At the end of September 2013, Norvestia s shareholders numbered 5,820 (5,884). 34.4% of the shares were in foreign ownership (34.3%). The largest shareholder is Kaupthing hf. with a holding of 32.7% (32.7%) which corresponds to 56.0% (56.0%) of votes. Norvestia s second largest shareholder, Mandatum Life Insurance Company Ltd, had an 11.7% (11.7%) holding of shares and 7.6% (7.6%) of votes. The ten major shareholders held a total of 53.8% (54.3%) of shares and 69.8% (70.1%) of votes. 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 risk. Occasionally a significant proportion of investments may be focused on certain types of investments and securities, the negative development of which may substantially decrease Norvestia s result. Norvestia interim report 1/1 30/9/2013 Norvestia Oyj 4

5 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 30 September 2013 consisted of the Didner & Gerge, eq Euro Investment Grade, Nektar and Zenit funds and Fortum shares. 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 performance. The general uncertainty on the capital markets, and especially the difficulties of the eurosystem, increase the volatility of Norvestia s investments and therefore also increase their risk. FUTURE PROSPECTS The situation on the capital markets remains largely unchanged from earlier in the year, as indeed do key elements of the economy. Earnings expectations of low-risk investments such as bank deposits and government bonds with good credit ratings are still very low, although they have risen somewhat since the beginning of the year. Central bank interest rates are also at a low level, and their increase in the current economic situation remains unlikely. It is expected that the real economy starts to recover in 2014, which should result in an increase in share prices. On the other hand, there might be political factors culminating in a crisis and pushing share prices temporarily down. 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 available. Investment levels between shares, funds and interest-yielding investments are assessed on the basis of the prevailing situation. Helsinki, 24 October 2013 Board of Directors Key Figures 1/1 30/9/2013 1/1 30/9/2012 1/1 31/12/2012 Earnings/share, EUR /9/ /9/ /12/2012 Equity ratio, % Shareholders equity/share, EUR Net Asset Value/share, EUR Net Asset Value, EUR million Amended Net Asset Value, EUR million Share price, EUR B share Number of shares 15,316,560 15,316,560 15,316,560 Performance of Net Asset Value, share price and indices Norvestia s share price, dividend and issue-adjusted Norvestia s NAV, dividend and issue-adjusted OMX Helsinki CAP Yield Index Bloomberg/EFFAS Bond Index, Finland interim report 1/1 30/9/2013 Norvestia Oyj 5

6 Consolidated statement of comprehensive income EUR 1,000 1/7 30/9/2013 1/7 30/9/2012 1/1 30/9/2013 1/1 30/9/2012 1/1 31/12/2012 Trading gains and losses 10,697 3,165 13,945 3,237 7,413 Personnel expenses , ,124 Depreciation and impairment charges Other operating expenses OPERATING PROFIT 9,997 2,717 12,375 1,952 5,504 Share of results of associates Financial income and expenses RESULT BEFORE TAXES 9,686 2,504 12,200 2,182 5,884 Income taxes* -2, , RESULT FOR THE FINANCIAL PERIOD 7,252 1,883 9,970 2,496 5,619 Components of other comprehensive income, net of taxes: Revaluation of available-for-sale financial assets COMPREHENSIVE INCOME FOR THE PERIOD 7,242 1,883 10,026 2,496 5,713 * Based on the result for the period Earnings per share, EUR Number of shares, issue-adjusted 15,316,560 15,316,560 15,316,560 15,316,560 15,316,560 interim report 1/1 30/9/2013 Norvestia Oyj 6

7 Consolidated statement of financial position EUR 1,000 30/9/ /9/ /12/2012 Assets NON-CURRENT ASSETS Intangible assets Tangible assets Interests in associates 6,064 4,724 4,926 Loan receivables from associates 3,842 2,171 2,171 Available-for-sale financial assets 3,596 2,401 2,673 Deferred tax assets 6,976 8,655 8,379 20,515 18,000 18,193 CURRENT ASSETS Financial assets held for trading 57,706 42,767 49,141 Other financial assets at fair value through profit or loss 56,391 53,552 61,936 Receivables 3, Cash and cash equivalents 14,377 26,181 16, , , , , , ,433 Shareholders equity and liabilities SHAREHOLDERS' EQUITY Share capital 53,608 53,608 53,608 Share premium 6,896 6,896 6,896 Fair value reserve Retained earnings 71,941 70,916 70,916 Result for the period 9,970 2,496 5, , , ,391 DEFERRED TAX LIABILITIES 6,993 5,536 6,150 CURRENT LIABILITIES 2,210 1,402 2, , , ,433 interim report 1/1 30/9/2013 Norvestia Oyj 7

8 Consolidated statement of cash flows EUR 1,000 1/7 30/9/2013 1/7 30/9/2012 1/1 30/9/2013 1/1 30/9/2012 1/1 31/12/2012 CASH FLOW FROM OPERATING ACTIVITIES Result before taxes 9,686 2,504 12,200 2,182 5,884 Adjustments: Operations which do not include cash transactions -6,086-2,684-3,055-3,815-6,392 Interest income Dividend income ,167-3,888-3,901 3, ,332-5,928-5,031 Changes in working capital Change in shares and other investments -7,179-2, ,312-6,212 Change in receivables -2, , Change in current liabilities 1, ,466-8,310-2,664-3,511 6,306-4,822 Dividends received ,167 3,888 3,901 Interest received Received and paid taxes CASH FLOW FROM OPERATING ACTIVITIES -4,712-2,845 5,633 4,606-5,119 CASH FLOW FROM INVESTING ACTIVITIES Acquisitions of associates , Loan receivables from associates -1, , Investments in intangible and tangible assets CASH FLOW FROM INVESTING ACTIVITIES -1, , CASH FLOW FROM FINANCING ACTIVITIES Dividends paid ,595-4,595-4,595 CASH FLOW FROM FINANCING ACTIVITIES ,595-4,595-4,595 CHANGE IN CASH AND CASH EQUIVALENTS -6,624-2,845-2, ,464 Cash and cash equivalents at the beginning of the period 21,001 29,026 16,456 25,920 25,920 Cash and cash equivalents at the end of the period 14,377 26,181 14,377 26,181 16,456 interim report 1/1 30/9/2013 Norvestia Oyj 8

9 Consolidated statement of changes in shareholders equity EUR 1,000 Share capital Share premium Fair value reserve Retained earnings Result for the period Total Shareholders' equity 1 January ,608 6, ,753-11, ,273 Allocations -11,242 11,242 0 Dividends -4,595-4,595 Result for the period 2,496 2,496 Shareholders' equity 30 September ,608 6, ,916 2, ,174 Shareholders' equity 1 January ,608 6, ,916 5, ,391 Allocations 5,619-5,619 0 Other comprehensive income Dividends -4,594-4,594 Result for the period 9,970 9,970 Shareholders' equity 30 September ,608 6, ,941 9, ,823 interim report 1/1 30/9/2013 Norvestia Oyj 9

10 Net Asset Value of the group EUR million 30/9/ /9/ /12/2012 Assets Non-current assets Interests in associates Loan receivables from associates Other investments Deferred tax assets Current assets Shares held for trading Other financial assets at fair value Cash and receivables Total assets Current liabilities Deferred tax liabilities NET ASSET VALUE AMENDED NET ASSET VALUE* Net Asset Value/share, EUR Change in NAV, dividend-adjusted 1/7 30/9/2013 1/7 30/9/2012 1/1 30/9/2013 1/1 30/9/2012 1/1 31/12/2012 Change, EUR million Change per share, EUR * Due to a refinancing round, an external revaluation has been made of one of the associates, Coronaria Hoitoketju Oy, which has resulted in an appreciation in the value of industrial investments. According to IFRS, this type of appreciation of investments in associates cannot be booked because the associates are accounted for in Norvestia s consolidated financial statements using the equity method. Principles for calculation Publicly listed shares, investment funds and derivative contracts have been measured at closing price. Where the closing price has been unavailable, the purchase quotation has been used. Unlisted shares and units have been measured at fair value using various valuation methods. Share price and Net Asset Value 12 Share price, B share EUR/share Net Asset Value /12/ /12/ /12/ /12/ /12/ /9/2013 interim report 1/1 30/9/2013 Norvestia Oyj 10

11 Notes to the interim report Accounting principles This interim report has been prepared in accordance with the IFRS. The same accounting principles have been used in the interim report and in the 2012 financial statements. Formulas for calculating key financial figures remain the same as in the financial statements and annual report The standard IFRS 13 Fair value measurement effective from 1 January 2013 has increased the amount of notes in the interim report. The corresponding notes are included in the 2012 financial statements. Tax related to other comprehensive income Revaluation of available-for-sale financial assets, EUR 1,000 30/9/ /9/ /12/2012 Income before taxes Tax expense Net of tax amount Contingent liabilities Securities given as collateral for derivative trades, EUR 1,000 30/9/ /9/ /12/2012 Carrying amount of pledged securities 9,138 9,011 13,624 Fund commitments, EUR 1,000 Commitment to invest in Lifeline Ventures Fund I Ky 1,330 1,587 1,512 Commitment to invest in Amanda V East Ky 1,271-2,000 Share loan The group has lent 1,176,000 shares of Outokumpu Oyj outside the group. A 105% cash collateral has been received, which has been recognized in current liabilities. Derivative contracts Norvestia has used standardized derivative contracts to make portfolio management more effective. The aquisition values and fair values of the derivative contracts as well as the underlying values are given in the table below. The fair values have been 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 has not been used. Equity derivatives, EUR 1,000 30/9/ /9/ /12/2012 Sold call options, open positions Underlying value Acquisition value Fair value Sold put options, open positions Underlying value Acquisition value Fair value Index derivatives, EUR 1,000 Bought call options, open positions Underlying value Acquisition value Fair value Sold futures, open positions Underlying value - -1,228 - Fair value Foreign exchange derivatives, EUR 1,000 Sold futures, open positions Underlying value -10,076-5,115-10,001 Fair value interim report 1/1 30/9/2013 Norvestia Oyj 11

12 Fair values of financial assets Financial assets held for trading mainly consist of listed shares and derivative contracts that are measured at fair value by the last trade price on active markets on the balance sheet date. Financial assets at fair value through profit or loss consist mainly of funds whose fair value is determined by the funds net asset value at the balance sheet date. The group also includes bonds, the fair value of which is measured at the last trade price on the balance sheet date. Available-for-sale financial assets include unlisted shares and private equity fund investments, which are measured at fair value. If the investments have no active market, the fair value is determined using various valuation methods that are usually based on forecasted cash flows. Private equity fund investments are valued according to the practice generally used in the sector, i.e. the fair value of the private equity fund investment is the latest fund value announced by the private equity fund management company. The value is calculated according to the International Private Equity and Venture Capital Guidelines (IPEV). The table below presents the fair values and carrying amounts of each category of financial assets, which correspond to the values of the consolidated statement of financial position. The group has no financial liabilities. 30/9/ /9/ /12/2012 Financial assets Carrying amount Fair value Carrying amount Fair value Carrying amount Fair value Financial assets held for trading 57,706 57,706 42,767 42,767 49,141 49,141 Other financial assets at fair value through profit or loss 56,391 56,391 53,552 53,552 61,936 61,936 Available-for-sale financial assets 3,596 3,596 2,401 2,401 2,673 2,673 Receivables 3,037 3, Total 120, ,730 99,332 99, , ,457 Fair value hierarchy of financial assets measured at fair value Fair values at the end of the period 30/9/2013 Level 1 Level 2 Level 3 Financial assets held for trading 57,706 57, Other financial assets at fair value through profit or loss 56,391 30,360 26,031 0 Available-for-sale financial assets 3, ,596 Total 117,693 88,066 26,031 3,596 During the reporting period ending 30 September 2013, there were no transfers between Level 1 and Level 2 fair value measurements. Fair values in Level 1 are based on quoted prices in active markets for each asset and liability. Fair values on Level 2 are based mostly on inputs other than quoted prices included in Level 1, but still on inputs that are observable for each asset and liability either directly as a price or indirectly derived from the price. The fair values of shares in Level 3 are defined using a cash flow based valuation method. The valuation is conducted yearly by an external consultant. The fair value of private equity fund investments is based on reports by the management company of the private equity fund. Reconciliation of the financial assets measured at fair value in Level 3 Recognized through other comprehensive income available-for-sale financial assets On 1 January ,673 Additions 1,007 Return of capital -158 Through statement of comprehensive income: Revaluation of available-for-sale financial assets 74 On 30 September ,596 During the reporting period ending 30 September 2013, there were no transfers into and out of Level 3 fair value measurements. Based on management review of the assets in Level 3, the change of one or several inputs to a likely alternative assumption would not materially change the values of the assets measured at fair value in Level 3, taking into account the relatively small amount of the assets in relation to equity and the total assets of the group. Related party transactions Norvestia had related party transactions with companies in the Miltton Group and with Coronaria Hoitoketju and Aste Helsinki. In the table below, the figures are shown for the entire group. Related party, EUR 1,000 1/7 30/9/2013 1/7 30/9/2012 1/1 30/9/2013 1/1 30/9/2012 1/1 31/12/2012 Aste Helsinki Oy Interest income Coronaria Hoitoketju Oy Interest income Miltton Group Interest income Purchases Purchases from related parties were made at normal market prices. The group has granted Miltton Group Ltd a loan of 1,967 (2,171), Coronaria Hoitoketju Oy a loan of 800 (-) and Aste Helsinki Oy a loan of 1,075 (-). interim report 1/1 30/9/2013 Norvestia Oyj 12

13 Investments 30 September 2013 Number of shares/units Acquisition price EUR 1,000 Fair value EUR 1,000 Share of total investments NORVESTIA OYJ LISTED COMPANIES Ahlstrom Corporation 53, % Amer Sports Corporation 56, % Apetit Plc 74, , % Atria plc 147,672 1,575 1, % Caverion Corporation 93, % Elisa Corporation 131,556 2,160 2, % Finnair plc 399,751 2,090 1, % Fortum Corporation 315,576 4,801 5, % HKScan Corporation A share 83, % Honkarakenne Oyj 461,889 1,703 1, % Huhtamäki Oyj 86, , % Kemira Group 117,261 1,207 1, % Kesko Corporation B share 71,775 1,878 1, % Konecranes plc 40, , % Metso Corporation 57,753 1,826 1, % Metsä Board Corporation B share 260, % Munksjö Oyj 9, % Neste Oil Corporation 120,060 1,360 1, % Nokia Corporation 162, % Nokian Tyres plc 24, % Oriola-KD Corporation B share 91, % Orion Corporation B share 43, % Outokumpu Oyj 1,465,740 1, % Pohjola Bank plc A share 117,717 1,301 1, % Raisio plc V share 243, , % Ramirent plc 72, % Rapala VMC Corporation 125, % Rautaruukki Corporation K share 300,766 2,319 1, % Sampo plc A share 65,464 1,749 2, % Sanoma Corporation 122,070 1, % Sponda plc 652,657 2,184 2, % Stockmann plc B share 148,707 2,466 1, % Stora Enso Oyj R share 335,533 1,617 2, % Tikkurila Oyj 81,311 1,284 1, % UPM-Kymmene Corporation 336,752 3,122 3, % Uponor Corporation 50, % YIT Corporation 93,034 1, % Nordea Bank AB FDR 447,638 3,936 3, % Powershares QQQ 29,100 1,123 1, % SPDR S&P 500 ETF Trust 8, , % TeliaSonera AB 190, , % 54,145 57, % FUNDS Brummer & Partners Nektar 24,241 4,662 6, % Brummer & Partners Zenit , % Brummer & Partners Multi-Strategy Euro 18,360 3,500 3, % Didner & Gerge Aktiefond 27,102 1,954 5, % eq Hedge 1 K 84,324 1, % eq Euro Investment Grade 1 K 22,101 3,043 4, % eq High Yield Bond 1 K 14,417 2,152 3, % Evli Eurooppa B 10, % Fondita European Top Picks 6, % Fourton Hannibal A 14,482 1,000 1, % Futuris 8,699 1,035 3, % OP-Suomi Arvo A 5, % RAM One 27,117 2,341 3, % Russian Prosperity Fund Euro A 28,783 2,600 2, % Taaleritehdas Arvo Markka 9,001 1,010 1, % 26,796 43, % interim report 1/1 30/9/2013 Norvestia Oyj 13

14 Number of shares/units Acquisition price EUR 1,000 Fair value EUR 1,000 Share of total investments DERIVATIVE CONTRACTS Euro Stoxx put options (bought) 1, % % BONDS nominal value Ahlstrom, expires 2/10/2017 1,000 1,012 1, % Finnair, expires 26/11/ % Nokia, expires 26/10/2017 2,000 2,004 3, % Pohjola Bank, expires 30/11/2015 1, % Outokumpu, expires 24/6/2015 2,000 2,006 1, % Sanoma, expires 20/3/2017 2,000 2,036 2, % SEB, expires 31/3/2015 1,000 1,097 1, % Svenska Handelsbanken, expires 16/12/2015 1, , % 10,875 12, % NORVESTIA OYJ IN TOTAL 91, , % NORVESTIA INDUSTRIES LTD UNLISTED ASSOCIATED COMPANIES* Aste Helsinki Oy 4, % Coronaria Hoitoketju Oy 35,307 3,112 3, % GSP Group Ltd 10,000 1, % Miltton Group Ltd 5,000 1,500 1, % Loans to associates 3,842 3, % 10,587 9, % PRIVATE EQUITY FUNDS Amanda V East Ky % Lifeline Ventures Fund I Ky % Lifeline Ventures Fund III Ky % 1,409 1, % NORVESTIA INDUSTRIES LTD IN TOTAL 11,996 11, % NORVENTURES LTD UNLISTED COMPANIES Polystar Instruments AB 266,000 1,717 2, % NORVENTURES LTD IN TOTAL 1,717 2, % NORVESTIA GROUP IN TOTAL 105, , % The table does not include cash and cash equivalents of the group. * The fair value of associated companies is presented as the consolidated balance value. Geographic breakdown of Norvestia Group s investments 30 September 2013 Norvestia Group s investments 30 September 2013 Finland 60% Other Nordic countries 16% Other European countries 13% Non-European countries 11% Listed shares 45% Hedge funds 18% Bonds 16% Industrial investments 11% Equity funds 10% interim report 1/1 30/9/2013 Norvestia Oyj 14

15 Report on review of Norvestia Oyj s interim report for 1 January 30 September 2013 TO THE BOARD OF DIRECTORS OF NORVESTIA OYJ INTRODUCTION We have reviewed the interim report of Norvestia Oyj Group for the nine months ended on 30 September 2013, which comprise the consolidated statement of financial position, the consolidated statement of comprehensive income, consolidated statement of changes in equity, consolidated cash flow statement as well as the summary of essential accounting principles and related notes to the interim report. The Board of Directors and the Managing Director are responsible for the preparation and fair presentation of the interim report in compliance with International Financial Reporting Standards (IFRS) as adopted by the European Union as well as in accordance with the laws and regulations governing the preparation of interim reports in Finland. We will express an opinion on the interim report based on our review. OPINION Based on our review, nothing has come to our attention that causes us to believe that the interim report does not give a true and fair view of the financial performance, cash flows and financial position of the company for the nine months ended on 30 September 2013 in compliance with International Financial Reporting Standards (IFRS) as adopted by the European Union as well as in accordance with the laws and regulations governing the preparation of interim reports in Finland. Helsinki, 24 October 2013 PricewaterhouseCoopers Oy Authorised Public Accountants SCOPE OF A REVIEW We conducted our review in accordance with International Standard on Review Engagements 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Company. A review of financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Jan Holmberg Authorised Public Accountant interim report 1/1 30/9/2013 Norvestia Oyj 15

16 Norvestia Oyj Pohjoisesplanadi 35 E, Helsinki, Finland Tel , Fax Business-ID: interim report 1/1 30/9/2013 Norvestia Oyj 16