- Solidium’s investment yield was -4.8% for the six-month review period and 6.2% for the calendar year 2014
- Solidium’s profit for the review period before impairments amounted to EUR 151 million
- Solidium paid EUR 1,087 million in profit distribution to the State of Finland
- Solidium’s net asset value decreased by EUR 1,452 million during the review period due to the profit distribution and decrease in equity portfolio value, and was EUR 6,642 million at the end of the period
- The combination of Rautaruukki and SSAB was completed on 29 July 2014
- Talvivaara Sotkamo Ltd, the operating subsidiary of Talvivaara Mining Company Plc, applied for bankruptcy on 6 November 2014
- Solidium decreased its shareholding in TeliaSonera by selling shares for EUR 547 million
- Solidium increased its shareholding in Outotec by acquiring shares for EUR 6 million
Kari Järvinen, Managing Director of Solidium Oy, comments the review period:
“The stock market volatility increased clearly during the second half of 2014. The expectations for the growth of the global economy and especially for the European economies weakened and the risk appetite of investors decreased. These developments were reflected especially in the equity valuation levels of the companies in cyclical basic industries. Furthermore, many of Solidium’s portfolio companies are sensitive to the uncertainties relating to the price levels of oil and other commodities as well as to the development of industrial investments.
During the review period, Solidium paid EUR 1,087 million in profit distribution to the State. This brings the total profit distribution by Solidium to EUR 3.7 billion during the last five years. Profit distribution to the owner in excess of the incoming dividend stream makes disposals of the holdings necessary, which among other things results to constant decline of the dividend income.
Our owner, the Finnish State, has defined strengthening and stabilising Finnish ownership in nationally important companies and increasing the value of our holdings in the long run as the core mission of Solidium. In addition, and especially in the current financial situation of the State, Solidium has an important role through its dividend distribution in complementing the revenues of the State. However, it is crucial to balance the role as a source of dividends with the defined core mission. Last years have made it evident that it is not irrelevant whether significant Finnish listed companies have owners that are committed in their long-term development.”
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 investments is approximately EUR 8.2 billion as of the date of this press release. More information: www.solidium.fi.
The complete half-year report can be found here.