EAB Group Plc’s financial statements bulletin 2021: The Group’s operating income increased by 19%, and the result for the period of EUR 2.1 million was the Group’s best ever

EAB Group Plc, Stock Exchange Release, 11 February 2022, 9:00 a.m. (EET)

EAB Group Plc’s financial statements bulletin 2021: The Group’s operating income increased by 19%, and the result for the period of EUR 2.1 million was the Group’s best ever

Operating income of the EAB Group (hereinafter “EAB” or “the Group”) for the period 1 January–31 December 2021 was EUR 22.2 million (EUR 18.7 million in 2020), and the result for the period was EUR 2.1 million (EUR 0.3 million in 2020). The Group’s operating result was EUR 2.9 million (EUR 0.6 million in 2020). Operating income included EUR 13.9 million (EUR 12.3 million) in income from fund management, which included EUR 0.9 million (EUR 2.2 million) in performance-based fees. Income from asset management and other investment services amounted to EUR 6.0 million (EUR 4.7 million). Income from the service business and other operating income amounted to EUR 2.3 million (EUR 1.7 million).

The Group’s comparable operating income increased by 29% year-on-year, and the Group achieved the planned cost savings. As a result, the Group achieved its best net result ever (EUR 2.1 million), with an increase of 733% compared to the previous year.

The Group’s solvency calculated based on the new regulation was 165.1% (157.5%).

The Board of Directors proposes that profit for the financial year 2021 is distributed as dividends in the amount of EUR 0.11 per share (EUR 0.05).

The figures presented in the stock exchange release are unaudited.

Financial performance of the Group in January–December 2021 (compared to 2020):

• Operating income increased by 19% to approximately EUR 22.2 million (EUR 18.7 million).
• Comparable net operating income** increased by 29% to approximately EUR 21.9 million (EUR 16.9 million).
• Operating profit increased by 384% to approximately EUR 2.9 million (EUR 0.6 million).
• The result for the period increased by 733% to approximately EUR 2.1 million (EUR 0.3 million).
• Reported solvency of the Consolidation Group*** calculated based on the new regulation was 165.1% (157.5%).

The amount of assets under management and insurance assets, including investment commitments to private equity funds, increased by 15% to EUR 3,938 million on 31/12/2021 (EUR 3,419 million on 31/12/2020).

Financial performance of the Group in July–December 2021 (compared to July–December 2020):

• Operating income increased by 17% to approximately EUR 11.7 million (EUR 10.0 million).
• Comparable net operating income** increased by 29 % to approximately EUR 11.5 million (EUR 8.9 million).
• Operating profit increased by 25% to approximately EUR 1.7 million (EUR 1.4 million).
• The result for the period grew by 31%, amounting to approximately EUR 1.3 million (EUR 1.0 million).

Group’s key figures in brief (more detailed information is provided in the notes)

*) IAS 1 Presentation of Financial Statements does not define the concept of operating profit. The Group has defined it as follows: the operating profit is the net sum remaining after employee benefit expenses, other administrative expenses, depreciation and impairment losses, other operating expenses and impairment losses on receivables have been deducted from the net turnover. The operating profit also includes the share of the profit or loss of associates.

**) For funds managed on behalf of external partners, comparable operating income is based on net fees, while reported operating income describes gross fees.

***) The Group reports its solvency to the Financial Supervision Authority in accordance with Regulation (EU) No 2034/2019 of the European Parliament and of the Council. The regulation entered into force in 2021. The solvency ratios presented correspond to those reported to the Financial Supervisory Authority and only include Group companies supervised by the Financial Supervisory Authority (EAB Group Plc, EAB Asset Management Ltd and EAB Fund Management Ltd) and the financial services companies EAB Service Ltd and SAV-Rahoitus Oyj.

****) Adjusted earnings per share are based on the number of outstanding shares. EAB Group Plc, the parent company of the Group, held 37,748 treasury shares on 31/12/2021 (49,786 on 31/12/2020). These excess shares are taken into account in the adjusted earnings per share, which present a true and fair view on the Group’s earnings per share.

At the end of the period, the Group had 89 (88) employees, of whom 17 (24) worked for the parent company and 72 (64) worked for a subsidiary. All in all, the Group had 111 (109) employees and tied agents at the end of the period.

THE GROUP’S OUTLOOK FOR 2022

Given that the favorable market environment is retained, we estimate that the net profit percentage for 2022 will be clearly positive. If market conditions would deteriorate significantly, the company will re-evaluate the estimate. The estimate is based on the current operations. Acquisitions or other major changes in operations might have an impact on the outlook.

DANIEL PASTERNACK, CEO

EAB Group’s result for the 2021 accounting period was EUR 2.1 million, which is the Group’s best result ever. This testifies to our persistent work to achieve a change, which is now beginning to bear fruit. Costs remained well under control and our improvement on the profit side came from practically stable operating income without any significant performance-based items. We also successfully launched new products, the real impact of which on the result will only be felt starting from this year.

The second renewable energy private equity fund and the third real estate development fund, launched early in the year, were among the key newcomers to our product range. Both funds made their first investments at the end of the year. The acquisition of investment commitments has been going well and will continue in early 2022. At the end of the year, we also launched a completely new type of venture capital activity through EAB Private Equity, where investments are raised on a target-by-target basis for one new investment at a time. The transparency of this concept differs significantly from the traditional fund-type investment operations, in which the fund’s assets are raised before the actual investment targets are known to the investors.

The investment performance and sales of traditional UCITS funds were also good this year. Their investment capital increased by around EUR 100 million to just over EUR 700 million. Our Elite Alfred Berg Yield Fund E and Elite Alfred Berg Europe Focus Fund were awarded a five-star rating in the Morningstar fund comparison, which takes the fund’s risk and actual return over time into account.

In the investment business, ESG integration progressed during the year, with a deeper sustainable investment process and positive screening now covering not only our UCITS funds, but also our infrastructure and real estate funds. During the year, we also published our first fund-specific sustainability reports, which provide reference data on the funds’ investment objects. These and other measures, as well as our next steps, are discussed in our annual report for 2022.

Our strategy is clear, and we are making steady progress towards our goals. Our product range has been streamlined, and the current organisation effectively supports the products. Profitability is developing in line with our targets, and the venture capital business is well on its way to becoming a solid pillar of our operations. Together with the Board of Directors I would like to thank all the employees for their excellent work.

EAB GROUP PLC
Board of Directors

Further information:

EAB Group Plc

Daniel Pasternack, CEO
+358 50 569 3416
daniel.pasternack@eabgroup.fi

Therese Cedercreutz, Chair of the Board
+358 40 544 2502
therese.cedercreutz@miltton.com

Elite Alfred Berg offers responsible investment and asset management services for private investors, institutions, and professional investors. Elite Alfred Berg is the marketing name of the EAB Group. The Group's parent company EAB Group Plc’s shares are listed on the Nasdaq Helsinki stock exchange. The Group companies include EAB Asset Management Ltd, which offers asset management activities, and EAB Fund Management Ltd, which acts as a fund company and authorised alternative investment fund manager. The Group’s customer base consists of individuals and corporations that are served nationwide in 13 different locations. The Group employs 89 investment professionals, and more than 20 tied agents provide its services. On behalf of its clients, the Group manages assets of EUR nearly 4 billion. Explore EAB Group’s services at www.eabgroup.fi.

DISTRIBUTION:
Nasdaq Helsinki Oy
The main news media
www.eabgroup.fi

APPENDIX:
EAB Group Plc Financial Statements Bulletin 1.1.–31.12.2021