Solidium Oy’s half year report from 1 January to 30 June 2015 and annual financial statements: CLEAR IMPROVEMENT IN THE YIELD OF EQUITY INVESTMENTS AFTER A WEAK FIRST HALF OF THE FINANCIAL YEAR3.9.2015
Six months from 1 January to 30 June 2015
- Solidium’s total investment yield was 9.7 per cent and yield on equity holdings was 10.3 per cent.
- Solidium decreased its ownership stakes in TeliaSonera and Outokumpu and in-creased its stakes Metso and Outotec.
Financial year from 1 July 2014 to 30 June 2015
- During the financial year the total investment yield was 4.3 per cent and the yield on equity holdings was 4.6 per cent.
- Solidium’s profit for the period was EUR 217 million. Profit before impairments was EUR 800 million.
- During the financial year, Solidium’s profit distribution to the State of Finland totalled EUR 1,527 million. The dividends received from the portfolio companies totalled EUR 275 million.
- Solidium’s net asset value decreased from EUR 8.1 billion to EUR 6.9 billion during the financial year mainly due to the profit distribution.
- Solidium’s Board of Directors proposes to the general meeting convening later that a dividend amounting to EUR 266 million be paid.
Kari Järvinen, Managing Director of Solidium, comments the review period:
“The yield of our equity holdings during the six month period from January to June was 10.3 per cent and the returns of most of our companies were relatively good. For the whole financial year, the yield of our holdings was however only less than five per cent, which is not a satisfactory level, especially considering the rather strong general stock market development during the period. The excellent return during the preceding financial year was not sustained, as especially many of holdings in metals and mining sector suffered from weak cyclical situation and some operative issues.
The State’s ownership steering and Solidium’s role were topics of keen public debate in the past year. It is welcome that ownership is a topic for discussion. From Solidium’s point of view the ownership steering model and our mandate are clear. The owner makes the decisions on Solidium’s mandate and assignment – we act consistently and transparently according to those.
During the past financial year we again freed considerable amounts of capital for our owner’s needs by divesting part of our holding in TeliaSonera. The divestments of shares have clearly and permanently reduced our annual dividend income. While the annual cash flow from profit distribution is the most visible aspect of Solidium’s value to the State, the value of our work is best manifested in our active role in influencing our port-folio companies.”
Further information: Kari Järvinen, Managing Director, tel. +358 (0)10 830 8905
Solidium is a limited company wholly owned by the State of Finland. Its mission is to strengthen and stabilise Finnish ownership in nationally important companies and increase the value of its holdings in the long term. Its investment activities are based on financial analysis. The basis and core objective of Solidium’s investment strategy is proper, value-enhancing asset management of its current holdings. Through its stakes, Solidium is a minority owner in twelve listed companies: Elisa, Kemira, Metso, Outokumpu, Outotec, Sampo, SSAB, Stora Enso, Talvivaara Mining Company, TeliaSonera, Tieto and Valmet. The market value of Solidium’s equity holdings is approximately EUR 6.6 billion as of the date of this press release. More information: www.solidium.fi.
The complete half-year report can be found here.