Sievi Capital Plc
Stock exchange release 3 March 2022 at 8:00 am EET

Sievi Capital Plc�s Financial Statements Release for 1 January�31 December 2021

Record-high net profit for 2021, brisk investment activity continued

This is the summary of the Financial Statements Release for 2021. The full Financial Statements Release is attached to this release and is also available on the company�s website at www.sievicapital.fi.

October�December 2021

• Operating profit was EUR 1.9 (6.0) million
• Net profit for the period was EUR 3.3 (5.0) million
• Earnings per share (undiluted and diluted) were EUR 0.06 (0.09)
• The acquisition of Rakennuttajatoimisto HTJ was completed in October
• In October, Indoor Group paid dividends of approximately EUR 15 million, Sievi Capital�s share of the dividends was approximately EUR 8.7 million.
• The holding in KH-Koneet Group was increased in November
• The contemplated combination of Sievi Capital and Boreo was cancelled in December

January�December 2021

• Operating profit was EUR 20.2 (11.7) million
• Net profit for the period was EUR 18.4 (9.9) million
• Earnings per share (undiluted and diluted) were EUR 0.32 (0.17)
• Net asset value per share at the end of the review period was EUR 1.61 (1.33)
• Return on equity was 21.6% (12.7%)
• Gearing at the end of the review period was 8.6% (-11.1%)

Figures in parentheses are reference figures from the corresponding period in the previous year, unless indicated otherwise. The figures in the Financial Statements Release are audited. Sievi Capital does not consolidate the data of its subsidiaries into Group-level calculations line item by line item but recognises investments in the companies at fair value through profit or loss.

Proposal for the distribution of profit

The Board of Directors proposes to the Annual General Meeting that no dividend for the past financial period be distributed by resolution of the Annual General Meeting, but that the Annual General Meeting authorise the Board of Directors to decide later, at its discretion, on the distribution of a dividend of a total maximum of EUR 0.05 per share in one or more instalments.

The profit distribution proposal of the Board of Directors takes into account the company�s liquidity situation at the time of making the profit distribution proposal after the acquisitions of investments carried out last year and expected cash flows during the current year. The Board of Directors aims to use the proposed authorisation during the current year.

CEO Jussi Majamaa:

�The year 2021 did not end up as a return to the old normal after the very exceptional year 2020, but we, our target companies and society as a whole had to continue to operate in an exceptional and rapidly changing environment. However, the year 2021 turned out to be financially excellent for Sievi Capital: the net profit for the period of EUR 18.4 million was at the highest level in our history as an independent company after the demerger in 2012, and return on equity returned to above our long-term minimum target level, amounting to 21.6%, after one year of falling short of it. Underlying the good financial development was the success of our largest target companies, Indoor Group and KH-Koneet Group, as well as the significant dividend income we received from Indoor Group during the year.

With regard to business operations, 2021 was not an easy year for our target companies. The net sales of all companies grew from the previous year either organically or as a result of acquisitions, but profit performance was more varied. Problems in international logistics, challenges in the availability of products and components, and price increases hampered the business operations of most of our companies and influenced their profitability development. The great success of the year was KH-Koneet Group, whose significant investments in the Swedish market in recent years have borne fruit. The company's net sales increased by 40% and EBITDA by 61% last year, especially due to the excellent development of the Swedish business. Although the company's outlook for the current year is uncertain due to challenges with the availability of machines, we believe that the company still has a lot of potential to continue to grow its business in the coming years. As proof of this, we increased our holding in the company in a transaction completed in November once the opportunity to do so arose.

In addition to our follow-on investments in KH-Koneet Group and Nordic Rescue Group, we made an initial investment in HTJ in October. HTJ is a well-managed company with a strong market position. The company's development has so far been positive in our short investment period and our cooperation with the company�s management and the Board of Directors has gotten off to a good start. We consider the company to have a good opportunity to grow its operations both organically and through potential acquisitions. With regard to the latter, we have launched active measures together with the company, and our goal is to complete the first follow-on acquisition of the company this year.

A significant phase in Sievi Capital�s year was the planned combination with Boreo Plc. A letter of intent concerning the combination was signed in August and the combination agreement was signed at the end of September. The combination was to be decided on by extraordinary general meetings in December, but it was clear after the advance votes that the proposed merger would not receive sufficient support from the shareholders of Sievi Capital. For this reason, the general meeting was cancelled and the companies agreed to terminate the combination agreement. In addition to the considerable amount of time spent by our own team, the preparation of the planned combination required a large amount of external resources, which caused significant costs to Sievi Capital. After the combination was cancelled, we will continue to evaluate the company�s strategic options. Our aim continues to be to increase the shareholder value.

The M&A market has continued in strong traction. Our focus has recently been more on other matters than seeking new initial investments, such as the company�s strategy work, the development of our target companies and their M&A opportunities. However, we will also continue our brisk investment activities in accordance with our current strategy, with the aim of making one to two initial investments annually.�

Future outlook

In line with its current strategy, Sievi Capital will continue to explore new investment opportunities. The company plans to make an average of 1�2 new investments per year but the number of investments made may vary from year to year. For existing investments, the active development of the companies� business operations will continue. Exit planning and the assessment of exit opportunities will also continue. Sievi Capital will carry out strategy work during the current year, as part of which alternative strategies for increasing shareholder value that differ from the current strategy will also be considered.

Sievi Capital does not consolidate the data of its subsidiaries into Group-level calculations line item by line item but recognises investments in the companies at fair value through profit or loss. Changes in the fair values of the investments have a material impact on Sievi Capital�s results. In addition to the target companies� own development, factors that influence the development of the fair values of the investments include, for instance, the general development of different sectors and national economies as well as changes in their outlooks, the development of stock market and interest rates and other factors beyond Sievi Capital�s control. Furthermore, the coronavirus pandemic increases uncertainty when it comes to anticipating development.

Sievi Capital�s financial target is a return on equity of at least 13%, the achievement of which the company considers to be realistic in the long term. Due to the nature of the business, the company�s short-term result development is subject to volatility that is difficult to predict. Therefore, Sievi Capital does not provide an estimate of the result development in 2022.

Results presentation webcast

Sievi Capital will organise a webcast in Finnish for analysts, investors and the media on 3 March 2022 at 2:00 pm EET. You can follow the live webcast at https://sievicapital.videosync.fi/sievi-capital-q4.

The presentation materials will be available later on the same day on Sievi Capital�s website and a recording of the webcast at the latest a day later.

SIEVI CAPITAL PLC

Jussi Majamaa
CEO

FURTHER INFORMATION:
CEO Jussi Majamaa, tel. +358 400 412 127

DISTRIBUTION:
Nasdaq Helsinki Ltd
Major media
www.sievicapital.fi

Sievi Capital is a partner for Finnish entrepreneurs. We support the growth, performance and value creation of small and medium-sized companies and concurrently build national competitiveness. We believe that we succeed together as co-entrepreneurs. Sievi Capital�s share is listed on Nasdaq Helsinki.

Attachment

• Sievi Capital Financial Statements Release 2021