eQ Oyj — Annual Report 2015

Mar 8, 2016

ANNUAL REPORT

EQ IN BRIEF	7
CEO'S REVIEW	9
BUSINESS AREAS	12
Asset Management	12
Corporate Finance	14
Investments	16
FINANCIAL STATEMENTS 2015	20
Report by the Board of Directors	20
Key Ratios, Consolidated	28
Calculation of Key Ratios	30
Income Statement, Consolidated	32
Balance Sheet, Consolidated	33
Consolidated Cash Flow Statement	34
Change in Consolidated Shareholders' Equity	35
Notes to the Consolidated Financial Statements	36
Principles for prepairing the Consolidated Financial Statements 36
Notes to the Consolidated Income Statement	49
Notes to the Consolidated Balance Sheet	52

Income Statement, Parent Company (FAS) 66 Balance Sheet, Parent Company (FAS) 67 Cash Flow Statement, Parent Company (FAS) 68 Notes to the Parent Company Financial Statements 69 Principles for preparing the Financial Statements (FAS) 69 Notes to the Income Statement of the Parent Company (FAS) 70 Notes to the Balance Sheet of the Parent Company (FAS) 71 Shares and Shareholders 76 Board of Directors' Proposal for the Distribution of Profi ts 80 AUDITOR'S REPORT 82 CORPORATE GOVERNANCE 84 Corporate Governance Statement 2015 84 Board of Directors 94 Management Team 96 FINANCIAL REPORTS IN 2016 98 INVESTMENTS 99

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	67
)	68
ements	69
ements (FAS)	69
rent Company (FAS)	70
Company (FAS)	71
	76
ion of Profits	80
	82
	84
	84
	94
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	98
	99

eQ Group is a Finnish group of companies that concentrates on asset management and corporate fi nance operations. The share of the parent company eQ Plc is listed on NASDAQ Helsinki. The Group off ers its clients services related to mutual and private equity funds, discretionary asset management, structured investment products, investment insurance policies, and a large range of mutual funds off ered by international partners. The asset management clients are institutional investors and private individuals. At the end of 2015, the assets managed by the Group totalled 7.6 billion. In addition, Advium Corporate Finance Ltd, which is part of the Group, off ers services related to mergers and acquisitions, real estate transactions and equity

Private equity reporting services

Private equity funds and mandates

eQ has also improved its position among institutional investors markedly in the past three years. We are now one of the six major asset managers for institutional investors in Finland. According to a study by SFR, 46 per cent of Finnish institutional investors used eQ's services in 2015, while the corresponding fi gure in 2012 was 22 per cent. This major increase has been a great achievement of eQ's asset management team.

Advium had a successful year

In the Finnish real estate market, transaction volumes grew by more than 20 per cent from 2014 and are now almost at the level of 2007. The total number of mergers and acquisitions was approximately at the same level as the year before. Advium was very successful in this market situation and acted as advisor in 16 transactions.

Last year, we acted as advisor to Forcit, Kesko, Kämp Group, Rettig and Sponda, for instance. Advium's customer relations are often long-standing, which is demonstrated by the fact that Advium has acted as advisor to all the above-mentioned companies prior to 2015 as well. Advium maintained its

The operating profi t of Advium also grew by more than 10 per cent to EUR 3.4 million and the operating profi t of the Investments segment tripled to EUR 1.8 million. Our balance sheet continues to be very strong.

A result like this requires success in several diff erent aspects. One of these is well-being at work, which naturally also has a great bearing on customer satisfaction and, consequently,

• eQ's success. The metrics measuring well-being at work have been on a good level even previously, but last year the results were record-high in almost all aspects. I strongly believe that
• well-being at work is one of our best investments, and at the same time I wish to thank our entire personnel for extremely good work in 2015.
• The improved profi t and strong cash fl ow make it possible for the Board to propose a dividend of 30 cents and a capital return of 20 cents per share for the year 2015, i.e. in total the same as in 2014.

market-leading position in large real estate transactions. eQ's result was excellent eQ's result in 2015 was excellent. The Group's profi t increased by 47 per cent to EUR 10.5 million, i.e. 29 cents per share. The results of all segments grew from the previous year. eQ Asset Management's profi tability improved markedly, and its operating profi t grew by 36 per cent to EUR 9.6 million. The year 2016 has seen such a gloomy start in the equity market that few of us expected. Despite this, we believe that eQ has good prerequisites of succeeding excellently in 2016 as well. We expect that the net revenue and operating profi t of the Asset Management segment will grow. We are also hopeful regarding the Corporate Finance segment. At the moment, the assignment base of Advium is at the same level as last year, and in the fi rst months of 2016, Advium has acted as advisor in four transactions, two of which have been completed and two are waiting for the fi nal close. As for the Investments segment, we expect the net cash fl ow to be strongly positive.

I would like to thank our clients

Last year was excellent for eQ, and my sincere thanks go to all our clients, who have trusted our services and products. I hope that we will turn out to be worth your trust in 2016 as well.

About the year 2016

Helsinki, 22 February 2016 Janne Larma CEO

EQ HAD AN EXCELLENT year in 2015. We managed to increase our net revenue by 25 per cent to EUR 30.5 million and our operating profi t to EUR 13.2 million. The Group's profi t for the fi nancial period increased by 47 per cent to EUR 10.5 million.

eQ Asset Management grew much faster than the market and improved its profi tability

The loose monetary policy of central banks and the resulting low interest rates have continued now for more than seven years. This has infl uenced both the return expectations and allocation decisions of investors, which has contributed to the growing success of alternative investments. The interest in above all real estate and private equity investments has grown among investors. I strongly believe that these asset classes will raise plenty of new capital this year as well.

eQ Asset Management is well positioned for the present market situation. The assets managed by our private equity and real estate asset management have increased considerably. Our success is based on experienced teams and an extremely strong return history. In 2015, eQ's real estate funds received EUR 213 million of new capital and off ered investors a very competitive return in the present market situation. eQ's real estate funds are a major real estate owner in Finland. The total real estate holdings of our real estate funds exceed EUR 600 million, after a care property deal of EUR 155 million concluded in February 2016.

Private equity asset management consolidated its position and gained a lot of new capital in 2015. We raised a little more than USD 80 million to our fi rst private equity fund investing in the US, eQ PE VII US. In addition, we obtained several new private equity asset management clients. At the beginning of February 2016, the eQ PE VIII North Fund held its fi rst close at EUR 51 million. The interest in the fund has been lively, and the fi rst phase of fund raising only took a month. We will continue to raise funds during the fi rst half of the year, and our expectations are high.

eQ's fi xed-income and equity funds also succeeded well within traditional asset management. In 2015, 73 per cent of eQ's funds registered in Finland surpassed their benchmark indices.

NASDAQ CLOSING BELL

eQ PLC HAS BEEN listed on the Helsinki Stock Exchange for 15 years. In order to celebrate the anniversary, members of eQ Group's personnel visited the NASDAQ headquarters in New York in August 2015. eQ had the honour of ringing NASDAQ's closing bell. A direct broadcast of the occasion was shown on several television channels worldwide. In connection with the ceremony, eQ's logo and several photographs of eQ's staff were posted on the huge screen on the wall of NASDAQ's headquarters. In addition to NASDAQ, eQ met with its local partners RCP, Fidelity and Vanguard during the visit to New York. eQ has presented positive estimates on the outlook of the U.S. economy, and the partners had the same view on, above all, the strong domestic market.

eQ ANNUAL REPORT 2015 ¹⁰ eQ ANNUAL REPORT 2015 ¹¹

THE ASSET MANAGEMENT segment consists of eQ Plc's subsidiary, the investment fi rm eQ Asset Management Ltd, and its subsidiaries, the most important of which is eQ Fund Management Company Ltd. The aim of eQ Asset Management is to off er its clients good investment returns, innovative investment solutions and excellent customer service. Through its own organisation and international partners, eQ can off er its clients an extensive and international range of investment solutions. eQ Asset Management off ers its clients services related to mutual and private equity funds, discretionary asset management, structured investment products, and investments insurance policies.

eQ has a wide range of actively managed and successful funds, which off er diversifi ed investment alternatives with diff erent strategies. The investment range covers 26 mutual funds registered in Finland as well as funds managed by our international partners, covering all major investment categories and markets.

The assets managed by the Group totalled EUR 7.6 billion at the end of 2015. Measured with assets under management, eQ is one of the largest asset managers in Finland that is independent of the major bank groups. The position of eQ in the market for institutional investments continued to improve in 2015 in the so-called SFR study, which covers approximately the 100 largest institutional investors in Finland. According to the study, about 46 per cent of them use eQ's services.

eQ Asset Management succeeded excellently in several diff erent areas in 2015. The Asset Management segment was able to increase its fee and commission income by 28 per cent to EUR 22.0 million. The segment's profi tability improved markedly, and the operating profi t grew by 36 per cent to EUR 9.6 million. eQ Asset Management grew faster than the market due to, above all, the good sales development of real estate funds and private equity products. eQ's real estate funds gathered EUR 213 million of new capital

Asset Management

eQ RECEIVED NEW FIVE STAR FUNDS

IN DECEMBER 2015, two new funds in eQ's fund selection received the highest Morningstar rating, fi ve stars. For the eQ Nordic Small Cap Fund, the year 2015 was especially successful, and the fund was the highest return eQ fund with a return of almost 35 per cent. Investors were in general interested

in smaller companies, and good share choices made the fund successful, even in comparison with its competitors. Measured with a three-year return, the eQ Nordic Small Cap Fund is one of the top funds among both domestic and foreign funds making investments in Nordic countries. The fund favours

companies with a market capitalisation below one billion euros, a good growth potential, and strong market positions in their sectors.

The eQ Europe Property Fund also posted a good return of 21 per cent in 2015. During the past fi ve years, the average annual return of the fund has been 15 per cent. The listed real estate market has for some years now been a good investment object. The mon-

etary recovery measures taken by the European Central Bank and the low interest rate level have made the sector attractive. As the return expectations of fi xed-income investments are low, the relatively easily predictable income fl ow from property investments and the generous dividend policy of companies have generated interest among investors. eQ Europe Property has succeeded well among its peers in both

Finland and Europe. In Citywire's fi veyear performance comparison, the fund took the sixth place among 87 funds. In addition to the eQ Nordic Small Cap Fund, the eQ Europe Property Fund also received its fi fth star in Morningstar's rating in December.

Anne Brusila eQ Asset Management Ltd, Portfolio Manager

1-12/2015 1-12/2014

FEE AND COMMISSION INCOME, ASSET MANAGEMENT, M€

Management fees from traditional asset management

Real estate and private equity management fees

Other fee and commission income

Performance fees

in 2015 and off ered an extremely competitive return in the present market situation. The return of the eQ Care Fund in 2015 was 8.2 per cent and that of the eQ Finnish Real Estate Fund 9.8 per cent. The interest in eQ's real estate funds is wide, among both institutional and private investors, and the eQ Care Fund alone already has more than 1 600 unit holders. Our private equity asset management also consolidated its position and gained a lot of new capital. eQ Asset Management gathered a little more than USD 80 million in eQ PE VII US, the fi rst private equity fund investing in the US. In addition, we obtained several new private equity asset management clients. The fi xed-income and equity funds of eQ were also successful. In 2015, 73 per cent of eQ's funds registered in Finland surpassed their benchmark indices.

eQ'S CORPORATE FINANCE services are off ered by eQ Plc's subsidiary Advium Corporate Finance Ltd. The services cover mergers and acquisitions, large real estate transactions, equity capital markets, and advisory services in general. The clients are mainly Finnish companies that make corporate or real estate transactions in Finland and abroad, but also international companies engaged in corporate and real estate transactions in Finland. Advium is one of the most experienced and highly

esteemed advisors in Finland. The company has carried out more than 150 corporate and real estate transactions during the past fourteen years, and in many of them, at least one of the parties has been an international actor. The total value of the transactions has been approximately EUR 12 billion.

Advium had a successful year in 2015. Advium acted as advisor in 16 fi nalised transactions, and its net revenue increased by

11 per cent to EUR 7.0 million. The operating profi t of Advium increased to EUR 3.4 million. Advium held its market leading position in large real estate transactions and was chosen the best Finnish investment bank in the real estate sector, already for the ninth time, in an enquiry by the distinguished Euromoney magazine. In addition, Advium took the second place in TNS Prospera's M&A Advisors 2015 Finland inquiry.

Corporate Finance

ADVIUM ACTED AS ADVISOR TO KESKO IN THE LARGEST REAL ESTATE TRANSACTION OF THE YEAR

THE YEAR 2015 WAS an extremely active real estate transaction year for Advium. The company acted as advisor to the seller in a record number of 12 transactions with a total volume exceeding EUR 1.2 billion. In the largest of these transactions, which was the largest single real estate transaction in Finland in 2015, Advium acted as advisor to the Finnish trading-sector company Kesko throughout a process that lasted almost an entire year. In the transaction, Kesko established Ankkurikadun Kiinteistöt Oy, a new real estate investment company specialising in trading properties, which Kesko owns in even proportions with Mutual Pension Insurance Company Ilmarinen and the Swedish AMF Pensionsförsäkring AB.

Kesko sold to the new company commercial properties and shopping centres in Finland and Sweden worth about EUR 652 million and concluded longterm leases on these properties.

For Advium's part, the process began already in the spring of 2014, when Kesko put advisory services out to tender. Already in 2013, Kesko had announced its intention of establishing a new real estate investment company, and it had also established preliminary contacts with investors. As the tender process resulted in the selection of Advium as exclusive advisor, thorough preparations were launched. During the preparation phase, measures typical of real estate transactions were taken, such as detailed

condition assessments, environmental assessments and value defi nitions of the objects. A preliminary contract package was also drawn up with the help of a legal adviser. Due to the special features of the transaction, Advium prepared together with Kesko high-class sales material and, in addition, a thorough forecast of the real estate investment company's future income, which also took into consideration the optimisation of leverage as a factor increasing the return on equity. This material played a major role when investors were convinced of the new company's ability to yield an excellent profi t.

After preparations, we proceeded by off ering the real estate investment

company to a group of thoroughly selected investors. The aim was to fi nd investors that would be optimal from Kesko's point view, and most of them were Scandinavian institutional investors. The invitation to tender and a number of investor meetings were arranged in late autumn of 2014, and

later in the winter, we selected among these investors a consortium of Ilmarinen and AMF, which fulfi lled Kesko's criteria on a suitable investor very well. In addition to the price, Kesko emphasised the choice of a good, long-term partner. After the signing of the letter of intent and smooth but exceptionally complicated agreement negotiations and due diligence, the parties signed the fi nal agreements in May 2015. This transaction was the fi rst real estate investment of the Swedish AMF in Finland and the all-time largest single

sale and leaseback arrangement made in Finland

Antti Louko Advium Corporate Finance Ltd, Director

CORPORATE FINANCE

Advium acted, for instance, as advisor to Rettig as it bought the Italian company Emmeti S.p.A., and as advisor to Sponda Plc, as Certeum Oy's shareholders sold the majority of the company shares to funds managed by the American Blackstone. Advium also acted as advisor to Kesko, when Kesko and its pension fund sold 36 store sites and three shopping centres to Ankkurikadun Kiinteistöt Oy, a joint venture between Kesko, Insurance Company. It is typical of the corporate fi nance business that clients pay a success fee when the transaction has been carried out. Consequently, the transaction dates have a major impact on invoicing, and the net revenue may vary considerably.

AMF Pensionsförsäkring AB and Ilmarinen Mutual Pension

COMMERCIAL PROPERT Y TRANSACTION VOLUME 2005-2015, € BN

In addition to the direct property transactions, international investors completed indirect property investments of approx. €1.5 billion during 2015 which is excluded from the fi gures above.

Source: KTI

eQ ANNUAL REPORT 2015 ¹⁶ eQ ANNUAL REPORT 2015 ¹⁷

THE BUSINESS OPERATIONS of the Investments segment consist of private equity investments made from eQ Group's own balance sheet. During the fi nancial period 2015, the operating profi t of the Investments segment totalled EUR 1.8 million, and at the end of the period, the fair value of private equity investments was EUR 22.5 million. The amount of the remaining investment commitments was EUR 10.3.

During the fi nancial period 2015, eQ Plc made a USD 3.0 million investment commitment in the eQ PE VII US Fund. The

eQ PE VII US fund makes investments in private equity funds making equity investments in unlisted small and mid-sized companies in the US and Canada. The management company of the fund is eQ and its adviser the Chicago-based RCP Advisors, which is responsible for selecting the target funds.

During the fi nancial period 2015, the investment objects returned capital for EUR 6.5 million and distributed a profi t of EUR 2.5 million. Capital calls totalled EUR 2.1 million and the capital received from the sale of investments was EUR 0.3

Investments

million. The net cash fl ow from the investments during the period was EUR 7.2 million. The aggregate return of private equity investments since the beginning of investment operations has been 21% p.a. (IRR). As for the income from own investment operations, eQ's net revenue is recognised for eQ

CO-OPERATION BETWEEN EQ AND RCP ADVISORS – EQ PE VII US

RCP ADVISORS is an independent private equity investment advisor and fund-of-funds manager that is based in Chicago. We invest only in smaller cap buyout managers based in the United States and Canada. We are considered an investment specialist in that we invest only in this niche and not in a broader array of fund styles, sizes and geographies. Given the size and diversity of the U.S. market, however, this niche is very large and fi lled with choices and opportunities. With over 40 professionals and over USD 5 billion in committed capital, we are a leading investor in this segment of the American private equity marketplace.

While we invest only in North America, the client base is global. The company has been in the Nordic region for over a decade. RCP also has longstanding client relationships in Finland, but the resources for serving the growing number of European investors on the other side of the Atlantic Ocean are limited.

Our desire to widen our investor base in Finland coincided with eQ's desire to broaden their successful investment scope to include exposure to U.S. buyouts. We have known eQ for some time and admired their professionalism and strong reputation with clients in the region. After their extensive search, we were delighted to be chosen as their advisor and partner for eQ PE VII US, which concentrates on the North American market.

The teams of eQ and RCP worked together during early 2015 to meet with investors in Helsinki and to establish the fund. After successful fund raising, the teams have been working together on investment opportunities. The investments that have recommended so far are all highly sought after funds that RCP is making even larger investments into from our own fund of funds. So far, we are very pleased that the manager selections will allow us to meet our goal of assembling a diverse and

best in class portfolio of U.S. buyout investments. Also, our teamwork and collaboration with eQ has exceeded our expectations. RCP is very proud to represent eQ and to serve as eQ's eyes and ears in the United States.

Charles K. Huebner, RCP Advisors, Managing Principal & Chief Investment Offi cer

due to factors independent of the company. As a result, the segment's result may vary considerably. eQ only makes new investments in funds managed by eQ. The investments made from eQ's balance sheet have been presented on page 99 of the Annual Report.

eQ'S REAL ESTATE FUNDS GREW STRONGLY IN 2015

eQ'S REAL ESTATE FUNDS grew strongly in 2015. During the year, the assets under management increased by EUR 213 million to almost EUR 400 million at the close of the year. Properties worth about EUR 300 million were bought to the funds during the year. eQ Asset Management manages two real estate funds, eQ Finnish Real Estate and eQ Care.

Both funds reached the targeted longterm level of return. For the eQ Finnish Real Estate Fund, the year 2015 was the fi rst full year of operation, and it immediately proved its worth in terms of both investor interest and return development. The fund's fi rst year of operation was excellent, providing a 9.8 per cent return. For the eQ Care Fund, this was the third full year of operation, and we were able to develop and

expand the fund from a good market position: the fund's annual return was 8.2 per cent. Both funds are non-UCITS funds. Subscriptions in the funds can be made four times a year and redemptions twice a year.

Investing in and owning real estate has clearly become more professional, and the requirements on real estate

investments have grown. Professional investment operations require expertise, resources and time. Long-term real estate asset management is based on knowledge of the sector and in-depth understanding of the market.

The year 2015 was active in the Finnish real estate market. Even historically, the transaction volume rose to the level of the best years. Good market liquidity is essential to real estate funds. When the market is active, it provides opportunities to buy or sell properties as needed. There are several domestic and foreign real estate investors operating in Finland at the moment. According to estimates, the market will remain active in 2016.

Tero Estovirta, eQ Asset Management Ltd, Head of Real Estate Investments

eQ Care: Day Care Center - Hiirulaisenkuja 6, Oulu

Report by the Board of Directors 1.1.–31.12.2015

Operating environment

The growth of the global economy is estimated to have been round 3 per cent in 2015. Among the large economies, the growth was still the strongest in China, where the economy grew by about 7 per cent. Growth in the US remained stable at about 2.5 per cent, while growth in Europe accelerated and is likely to have ended round 1.5 per cent for the whole year 2015. The contraction of the Finnish economy is estimated to have continued in 2015. In emerging markets, growth varied by country exceptionally strongly. In Asia, the Middle East and the most part of Africa growth continued, but the Brazilian and Russian economies shrank by almost 4 per cent.

Central Banks were active in 2015.The European Central Bank began increasing the liquidity of the market in the spring through a large purchase programme. China continued to liberalise its bond, equity and currency markets, altered its currency system, reduced the value of its currency, and lowered its interest rates and the banks' reserve requirements several times during the year. The Fed tightened its monetary policy by 0.25 percentage points towards the end of the year. One of the themes in 2015 was the continued fall in raw material prices, which accelerated towards the end of the year.

The equity markets in Western countries gave a good return in 2015. The rise was headed by Japan, where share prices grew by 22.1 calculated in euros. The US Stock Exchange (S&P 500) rose by 12.2 per cent calculated in euros, but in dollars the return was only 0.8 per cent. Europe rose by 8.2 per cent but in Finland, share prices grew more – by no less than 15.9 per cent. In emerging markets, the year was poor, and the global index for emerging markets remained 5.2 per cent negative.

In 205, interest income remained very modest, partly negative. The best yield was obtained from euro-denominated government bonds, which gave a 1.6 per cent return at index level. The return of investment grade loans was -0.4 per cent and that of high yield loans 1.2 per cent at index level. Emerging market loans gave a return of 0.7 per cent calculated in euros, but in local currencies the return remained negative.

Major events

eQ Plc's Board of Directors updated its dividend policy in February 2015. According to the new policy, eQ Plc aims to distribute the profi t for the fi nancial year as dividend. In addition to the dividend, eQ Plc may return capital to its shareholders from the reserve for invested unrestricted equity. The return of capital can be paid from the net cash fl ows of the capital returns and capital calls from own private equity fund operations. When deciding on the dividend and return of capital, if any, the company shall take into consideration its liquidity, the capital requirements set by authorities and any development needs of business operations.

The Annual General Meeting of eQ Plc was held on 25 March 2015. Annika Poutiainen (Master of Laws, born 1970) was elected new Board member. Ole Johansson, who has been on eQ Plc's Board and its Chairman since 2011, left the Board. The new Chairman of the Board is Georg Ehrnrooth.

Lauri Lundström, eQ Group's Administrative Director and member of the Management Team, resigned from eQ and will pursue a new assignment outside the company. Antti Lyytikäinen (M.Sc. (Econ), born in 1981) was appointed eQ Plc's CFO and member of the Management Team of eQ Group on 5 November 2015.

On 5 November 2015, the Board of Directors of eQ Plc decide on a new option scheme based on the authorisation by the Annual General Meeting held on 25 March 2015. A maximum of 2 000 000 option rights will be issued, and each option right will entitle to the subscription of one new share in eQ Plc. On 5 November 2015, the Board of Directors decided to issue 1 775 000 option rights to key persons employed by eQ Group nominated by the Board based on the option scheme 2015. The scheme covers about one fourth of eQ Group's personnel.

Group net revenue and result development

During the fi nancial period, the Group's net revenue totalled EUR 30.5 million (EUR 24.4 million from 1 Jan. to 31 Dec. 2014). The Group's net fee and commission income increased to EUR 28.5 million (EUR 22.9 million). The Group's net investment income from own investment operations also grew from the comparison

The Group's operating profi t was EUR 13.2 million (EUR 9.0 million) and the profi t for the period was EUR 10.5 million (EUR 7.1 million).

Business areas

Asset Management

period to EUR 2.1 million (EUR 0.8 million). The other income of the Group and the Asset Management segment for the comparison period (1 Jan. to 30 Dec. 2014) includes EUR 0.7 million of non-recurring items related to the adjustment of the additional purchase price of a corporate acquisition made in 2013. The Group's expenses and depreciation totalled EUR 17.3 million (EUR 15.4 million). Personnel expenses were EUR 12.7 million (EUR 10.7 million), other administrative expenses totalled EUR 1.9 million (EUR 1.9 million), and the other operating expenses were EUR 2.0 million (EUR 1.9 million). The personnel expenses increased from the year before due to result The year 2015 fl uctuated greatly for equity funds, bur owing to the good fourth quarter, the year turned out to be excellent with the exception of emerging market funds. The eQ Nordic Small Cap Fund with a return round 40 per cent gave the best return. The returns of the eQ Finland, eQ Europe Dividend, and eQ Europe Property funds were about 20 per cent. As compared with their benchmark indices, the eQ Nordic Small Cap, eQ Europe Dividend and eQ Finland funds gave excellent returns. In 2015, 73 per cent of the funds managed by eQ surpassed their benchmark indices. The returns of the discretionary asset management portfolios that eQ manages were also good in the fourth quarter and the returns of the portfolios during the entire year varied from 0 to 25 per

fund in 2015 with a return of about two per cent. The returns of corporate fi xed-income funds were round zero during the entire year. The Morningstar classifi cations of eQ's fi xed-income funds improved in 2015, and in addition, Morningstar awarded the eQ Euro Government Bond Fund as the best euro government bond fund.

bonuses. Depreciation was EUR 0.7 million (EUR 0.8 million). Depreciation includes EUR 0.5 million (EUR 0.5 million) in depreciation of customer agreements allocated to intangible assets in connection with corporate acquisitions. cent, mostly based on share allocations and regional emphases. The sales advanced well above all in the fourth quarter, and even the rise in market values increased the assets managed by eQ. The assets of the eQ funds registered in Finland increased by almost EUR 160 million since the beginning

eQ Asset Management off ers versatile and innovative asset management services to both institutions and individuals. The Asset Management segment consists of the investment fi rm eQ Asset Management Ltd and its subsidiaries, the most important of which is eQ Fund Management Company Ltd. Mutual funds and asset management At the end of December, eQ had 26 mutual funds registered in Finland. The returns of eQ's fi xed-income funds in 2015 were mostly slightly positive. The returns were, however, clearly lower than in several previous years. The eQ Euro Government Bond Fund was eQ's best yielding fi xed-income Private Equity On 11 June 2015, the eQ eQ PE VII US Fund held its fi nal close at a little more than USD 80 million. Altogether 35 investors joined the fund, 12 of which were new investors in eQ's private equity funds. The investment advisor of the fund is US-based RCP, with which eQ has launched a strategic partnership through this fund. The investment operations of the fund have advanced briskly, and the fund has already made four investment commitments in target funds. The assets managed under private equity operations grew clearly during the year and amounted to EUR 3 639 million at the end of the year (EUR 3 312 million on 31 Dec. 2014).

of the year. At the end of the year, the assets in eQ's funds totalled EUR 1 582 million (EUR 1 423 million on 31 Dec. 2014). Among the equity and fi xed-income funds, our clients invested the most in the eQ Money Market, eQ Euro Floating Rate, and eQ Europe Dividend funds.

Real estate investments

A new fund called eQ Finnish Real Estate was launched at the end of 2014. The subscriptions in the fund in 2015 exceeded EUR 105 million. At the end of the year, the size of the fund was EUR 125 million, and its investment capacity already clearly exceeds EUR 200 million. The investment operations of the fund have started off well, and its return in 2015 was 9.8 per cent.

The eQ Care Fund also grew considerably during the year, and new subscriptions totalling EUR 108 million were made in the fund. At the end of the fi nancial year, the size of the fund already exceeded EUR 267 million and its investment capacity exceeded EUR 500 million. In 2015, the return of the fund was 8.2 per cent, and it already has more than 1 600 unit holders.

eQ's real estate funds accept subscriptions four times a year and redemptions twice a year.

Assets under management and clients

At the end of the year, the assets managed by eQ Asset Management totalled EUR 7 634 million, and the assets have increased by a little more than EUR 150 million during the year (EUR 7 483 million on 31 Dec. 2014). At the end of the period, the assets managed by mutual funds registered in Finland totalled EUR 1 582 million (EUR 1 423 million). Mutual funds managed by international partners and other assets covered by asset management operations totalled EUR 2 412 million (EUR 2 747 million). The assets managed under private equity funds and asset management totalled EUR 3 639 million (EUR 3 312 million). EUR 2 421 million (EUR 2 164 million) of these assets were covered by the reporting service.

Result of the Asset Management segment

During the fi nancial period, the net revenue of the Asset Management segment increased by 24 per cent and the operating profi t by 36 per cent to EUR 9.6 million (EUR 7.1 million from 1 Jan. to 31 Dec. 2014). The net revenue and profi t for the comparison period included EUR 0.7 million of non-recurring income related to the adjustment of the additional purchase price of a corporate acquisition made in 2013. The fee and commission income of the segment increased by 28 per cent during the fi nancial year. Particularly the management fees from real estate and private equity asset management and

performance fees grew strongly during the fi nancial period, while the expenses excluding performance-based salary items remained in practice at the previous year's level. The Asset Management segment had 63 employees at the end of the period, comprising two persons with part-time, fi xed-term employment.

Corporate Finance	1-12/2015	1-12/2014	Change
Net revenue, M€	7.0	6.3	11%
Operating profi t, M€	3.4	2.9	15%
Cost/income ratio, %	51.8	52.9	-2%
Personnel	12	14	-14%

11% 15% -2%

Asset Management	1-12/2015	1-12/2014	Change
Net revenue, M€	21.7	17.6	24%
Operating profi t, M€	9.6	7.1	36%
Assets under management, € billion	7.6	7.5	2%
Cost/income ratio, %	53.5	57.0	-6%
Personnel	63	60	5%

Fee and commission income,

Asset Management, M€	1-12/2015	1-12/2014	Change
Management fees from
traditional asset management	9.0	8.7	3%
Real estate and private equity
management fees	8.7	6.4	37%
Other fee and commission income	1.0	0.8	29%
Performance fees	3.2	1.2	173%
Total	22.0	17.1	28%

Corporate Finance

In the Corporate Finance segment, Advium Corporate Finance acts as advisor in mergers and acquisitions, large real estate transactions and equity capital markets.

The market for mergers and acquisitions and real estate transactions was active in Finland during the entire calendar year. The M&A volume in euros was at a high level globally, reaching the all-time high in euros of 2007 already in October. The transaction volumes grew from the previous year in the real estate market as well. In Finland, the total number of mergers and acquisitions remained approximately at the same level as in 2014. In the real estate market, the volume grew by more than 20 per cent. Advium managed to increase its net revenue and the number of transactions, above all in the real estate market. During the fi nancial year 2015, Advium acted as advisor in 16 fi nalised M&A and real estate transactions, as compared with 14 transactions in 2014.

Advium acted, for instance, as advisor to Rettig ICC as it bought the Italian company Emmeti S.p.A., and as advisor to Sponda Plc, as Certeum Oy's shareholders sold the majority of the company shares to funds managed by the American Blackstone. In 2015, Advium also acted as advisor to Kesko, for instance, when Kesko and its pension fund sold 36 store sites and three shopping centres to Ankkurikadun Kiinteistöt Oy, a joint venture between Kesko, AMF Pensionsförsäkring AB and Ilmarinen Mutual Pension Insurance Company.

Advium held its market leading position in large real estate transactions and was chosen the best Finnish investment bank in the real estate sector, already for the ninth time, in an enquiry by the distinguished Euromoney magazine. In addition, Advium took the second place in TNS Prospera's M&A Advisors 2015 Finland inquiry. This shows that Advium is one of the leading M&A advisers in Finland.

Result of the Corporate Finance segment

In 2015, Advium's net revenue was EUR 7.0 million, compared with EUR 6.3 million in 2014. The operating profi t grew to EUR 3.4 million from previous year's EUR 2.9 million. The number of personnel in the Corporate Finance segment was 12 at the end of December.

It is typical of corporate fi nance business that success fees have a considerable impact on invoicing, due to which the result may vary considerably from quarter to quarter.

In the fi rst quarter of the year, eQ Plc sold part of its investment
in the eQ PE VI North Fund in the secondary market. eQ's origi
nal investment commitment in the eQ PE VI North Fund before
the sale was EUR 5.0 million and the sold original commitment
was EUR 2.0 million. The latest cash fl ow-adjusted market value
of the sold investment was EUR 0.2 million. As a result of the
sale, eQ's open commitments fell by about EUR 1.7 million.
In the second quarter, eQ Plc made a USD 5.0 million in
vestment commitment in the eQ PE VII US Fund. In the last
quarter of the year, eQ Plc sold part of its investment in the
eQ eQ PE VII US Fund in the secondary market. The sold
original commitment was USD 2.0 million. The latest cash
fl ow-adjusted market value of the sold investment was USD
0.1 million. As a result of the sale, eQ's open commitments
fell by about USD 1.7 million.
During the fi nancial period, the operating profi t of the In
vestments segment totalled EUR 1.8 million (EUR 0.5 million
from 1 Jan. to 31 Dec. 2014). At the end of the period, the fair
value of the private equity investments was EUR 22.5 million
(EUR 27.3 million on 31 Dec. 2014) and the amount of the
remaining investment commitments was EUR 10.3 million
(EUR 10.9 million).
During the period, the investment objects returned capital for
EUR 6.5 million (EUR 8.2 million from 1 Jan. to 31 Dec. 2014)

and distributed a profi t of EUR 2.5 million (EUR 2.0 million). Capital calls totalled EUR 2.1 million (EUR 2.3 million) and the capital received from the sale of investments was EUR 0.3 million (EUR 0.0 million). The net cash fl ow from investments during the period was consequently EUR 7.2 million (EUR 8.0 million). The write-downs recognised through profi t and loss during the period totalled EUR 0.4 million (EUR 1.2). The Group's internal management fee expenses, which are included in the result of the Investments segment, totalled EUR 0.3 million (EUR 0.3 million).

The value change of investments in the fair value reserve before taxes was EUR 0.3 million (EUR 3.8 million). The unrealised value changes of investments in the fair value reserve after taxes were EUR 0.7 million (EUR 0.5 million on 31 Dec. 2014) at the end of the period. The return of eQ's own invest-The business operations of the Investments segment consist of private equity investments made from eQ Group's own balance sheet. Additional information on the investments of the Group can be found on the company website at www.eQ.fi .

Investments

ment operations since the beginning of operations has been 21 per cent p.a. (IRR).

The income of eQ's own investment operations is recognised due to factors independent of the company. Due to this, the segment's net revenue and result may vary considerably. eQ only makes new investments in funds managed by eQ.

mon Equity Tier 1) and solvency ratio of the own funds was 19.8% (24.7% on 31 Dec. 2014) at the end of December. The minimum requirement for own funds is 8 per cent, while the Group's target is at least 12 per cent. At the end of the period, the Group's own funds based on solvency calculations totalled EUR 21.8 million (EUR 28.4 million on 31 Dec. 2014), and the risk-weighted items were EUR 110.1 million (EUR 115.0 million).

Major risks and uncertainties related to the operations

The major single risk of the Group is the dependence of the operating income on changes in the external operating environment. The result of the Asset Management segment depends on the development of the assets under management, which is highly dependent of the development of the capital market. The realisation of the performance fee income that is dependent on the success of the investment operations also infl uences result development. On the other hand, the management fees of private equity funds are based on long-term agreements that produce a stable cash fl ow.

Success fees, which depend on the number of mergers and acquisitions and real estate transactions, have a considerable impact on the result of the Corporate Finance segment. These vary considerably within one year and are dependent on economic trends.

The risks associated with eQ Group's own investment operations are the market risk, currency risk and liquidity risk. Among these, the market risk has the greatest impact on investments. The company's own investments are well diversifi ed, which means that the impact of one investment in a company, made by one individual fund, on the return of the investments is often small. The income from eQ Group's own investment operations is recognised for eQ in diff erent quarters due to factors independent of the company, depending on the exits from private equity funds. The income from investment operations may vary considerably from quarter to quarter. eQ only makes new private equity investments in funds managed by eQ.

Investments	1-12/2015	1-12/2014	Change
Net revenue, M€	1.8	0.5	230%
Operating profi t, M€	1.8	0.5	230%
Fair value of investments, EUR million	22.5	27.3	-18%
Investment commitments, M€	10.3	10.9	-6%

Balance sheet, fi nancial position and solvency

At the end of the period under review, the consolidated balance sheet total was EUR 80.9 million (EUR 86.7 million on 31 Dec. 2014) and the shareholders' equity was EUR 70.0 million (EUR 77.5 million). During the fi nancial period, the shareholders' equity was infl uenced by the profi t for the period of EUR 10,5 million, the change in the fair value reserve of EUR 0.2 million, the dividend distribution of EUR -7.3 million, and the return of capital of EUR -11.0 million from the reserve for invested unrestricted equity.

At the end of the period, liquid assets totalled EUR 16.6 million (EUR 17.3 million) and liquid investments in mutual funds EUR 5.0 million (EUR 4.0 million). In order to safeguard the availability of fi nancing, the Group has access to a credit limit of EUR 4.0 million. At the end of the period, the Group had no interest-bearing liabilities (EUR 0.0 million). Interest-free long-term debt was EUR 0.6 million (EUR 0.9 million) and interest-free short-term debt EUR 10.3 million (EUR 8.3 million) at the end of the period. eQ's equity to assets ratio was 86.5% (89.4%).

A subsidiary called eQ Asset Management Ltd, which is engaged in investment fi rm operations and fully owned by eQ Plc, is part of the Group. eQ Asset Management Ltd, as investment fi rm, and eQ Plc as the holding company, apply the Basel III/CRD IV regulations. The Group's CET1 (ComThe Group's liquidity is monitored continuously, and good liquidity is maintained by only investing the surplus liquidity in objects with a low risk, which can be turned into cash rapidly and at a clear market price. The capital calls and exits from target companies of private equity funds have a major impact on liquidity. In order to safeguard the availability of fi nancing, the Group has access to a credit limit.

Board of Directors, Management Team, CEO and auditor

eQ Plc's Annual General Meeting held on 25 March 2015 re-elected the following persons to the Board: Nicolas Berner, Christina Dahlblom, Georg Ehrnrooth and Jussi Seppälä. Annika Poutiainen was elected new member of the Board. The Board elected Georg Ehrnrooth Chairman of the Board at its constituent meeting. eQ Plc's Board had ten meetings during the fi nancial period 2015, average attendance being 98%

During the fi nancial period 2015, eQ Group's Management Team has consisted of the following persons:

was KPMG Oy Ab, a fi rm of authorized public accountants, with Raija-Leena Hankonen, APA, as auditor with main responsibility.

Personnel

At the end of the fi nancial period, the number of Group personnel was 81 (81 on 31 December 2014). The Asset Management segment had 63 (60) employees and the Corporate Finance segment 12 (14) employees. Group administration had 6 (7) employees. The personnel of the Asset Management segment comprises two persons with part-time, fi xed-term employment.

The overall salaries paid to the employees of eQ Group during the fi nancial period totalled EUR 12.7 million (EUR

10.7 million from 1 Jan. to 31 Dec. 2014).The salary expenses

increased from the year before due to result bonuses.

Loans to related parties

• Janne Larma, eQ Plc, CEO

• Staff an Jåfs, eQ Asset Management Ltd, Director, Private Equity • Mikko Koskimies, eQ Asset Management Ltd, CEO • Lauri Lundström, eQ Plc, Director, Group Administration • Antti Lyytikäinen, eQ Plc, CFO (from 5 November 2015) tributable assets of the company. Shares may be repurchases otherwise than in proportion to the shareholdings of the shareholders with assets from the company's unrestricted equity at the market price of the shares in public trading on Nasdaq

• Juha Surve, eQ Asset Management Ltd, Group General Counsel The company's CEO was Janne Larma. The company auditor Helsinki at the time of purchase or at a lower price. Own shares may be repurchased in order to develop the company's capital structure, to fi nance corporate acquisitions or other

eQ Plc's receivables from related parties have been described under item 33 (Related party transactions) of the Notes to the Financial Statements.

eQ Plc's share

Authorisations

The AGM held on 25 March 2015 authorised the Board of Directors to decide on the repurchase of the company's own shares in one or several transactions on the following terms: the Board of Directors was authorised to decide on the repurchase of no more than 1 000 000 own shares, which corresponded to approximately 2.72 per cent of all the shares in the company on the date of the notice of the AGM. The shares will be repurchased with assets from the company's unrestricted equity, which means that any repurchases will reduce the dis-

• business transactions, to fi nance or carry out investments or other arrangements pertaining to the company operations, or they may be used as part of the company's incentive schemes. For said purposes, the repurchased shares may be held, trans-
• ferred further or cancelled. The Board of Directors shall decide on other matters related to the repurchase of own shares. The authorisation cancels all previous authorisations to repurchase the company's own shares and is eff ective until the next AGM, no longer than 18 months, however.
• The AGM also authorised the Board of Directors to decide on a share issue or share issues and/or the issuance of special rights entitling to shares referred to in Chapter 10 Section 1 of the Limited Liability Companies Act, comprising a maximum total of

5 000 000 shares. The amount of the authorisation corresponded to approximately 13.61 per cent of all shares in the company on the date of the notice of the AGM. The authorisation can be used in order to fi nance or carry out potential acquisitions or other business transactions, to strengthen the balance sheet and the fi nancial position of the company, to carry out the company's incentive schemes or for any other purposes decided by the Board. Based on the authorisation, the Board shall decide on all matters related to the issuance of shares and special rights entitling to shares referred to in Chapter 10 Section 1 of the Limited Liability Companies Act, including the recipients of the shares or the special rights entitling to shares and the amount of the consideration to be paid. Therefore, based on the authorisation, shares or special rights entitling to shares may also be issued to certain persons, i.e. in deviation of the shareholders' pre-emptive rights as described in said Act. A share issue may also be executed without payment in accordance with the preconditions set out in the Limited Liability Companies Act. The authorisation cancels all previous corresponding authorisations and is eff ective until the next AGM, no longer than 18 months, however.

Shares and share capital

At the end of the period on 31 December 2015, the number of eQ Plc's shares was 36 727 198 and the share capital was EUR 11 383 873. There were no changes in the number or shares or share capital during the fi nancial period.

The closing price of eQ Plc's share on 31 December 2015 was EUR 6.50 (EUR 4.00 on 31 Dec. 2014). The market capitalisation of the company was thus EUR 238.7 million (EUR 146.9 million) at the end of the fi nancial period. During the period, 8 743 651 shares were traded on NASDAQ Helsinki (2 479 036 shares from 1 Jan. to 31 Dec. 2014).

Option rights

Option scheme 2010

At the end of the period, altogether 1 700 000 options had been allocated from option scheme 2010. Of these options, altogether 370 000 had been exercised by the end of the period. The number of outstanding options was 1 330 000 at the end of the period.

Based on the authorisation given to the Board on 14 April 2010 by the Annual General Meeting, there were 10 000 options in option scheme 2010 still available for allocation at the end of the period. The terms and conditions of the option scheme have been published in a stock exchange release of 18 August 2010, and they can be found in their entirety on the company website at www.eQ.fi .

On 15 April 2015, eQ Plc's Board of Directors decided on the listing of the company option rights 2010 on Nasdaq Helsinki from 8 May 2015.

Option scheme 2015

On 5 November 2015, the Board of Directors of eQ Plc decide on a new option scheme based on the authorisation by the Annual General Meeting held on 25 March 2015. A maximum of 2 000 000 option rights will be issued, and each option right will entitle to the subscription of one new share in eQ Plc. On 5 November 2015, the Board of Directors decided to issue 1 775 000 option rights to key persons employed by eQ Group nominated by the Board based on option scheme 2015. The scheme covers about one fourth of eQ Group's personnel, and persons whose employment with eQ Group will continue to at least 1 April 2019 will be entitled to subscribe for shares.

At the end of the period, there were still 225 000 options in option scheme 2015 available for allocation. The terms and conditions of the option scheme have been published in a stock exchange release of 5 November 2015, and they can be found in their entirety on the company website at www.eQ.fi .

Own shares

At the end of the period, on 31 December 2015, eQ Plc held no own shares.

Other information on the share

The following information on the company share is found in the Notes to the Financial Statements: distribution of holdings, information on considerable holdings and votes, the holdings of the company management and directors, and the number of company shares and share types.

Corporate governance

In addition to acts and regulations applicable to listed companies, eQ Plc complies with the Finnish Corporate Governance Code published by the Securities Market Association in October 2015. The entire Code is available on the website of the Securities Market Association at www.cgfi nland.fi .

Proposal for the distribution of profi t

The distributable means of the parent company on 31 December 2015 totalled EUR 52.1 million. The sum consisted of retained earnings of EUR 12.1 million and the means in the reserve of invested unrestricted equity of EUR 40.1 million.

After the end of the fi nancial period, no essential changes have taken place in the fi nancial position of the company. The Board of Directors feel that the proposed distribution of dividend and capital return does not endanger the liquidity of the company.

Events after the period under review

In the Investments segment, private equity funds in which eQ has made investments have announced exits that have not been realised during the fi nancial period. If the announced exits will be carried out according to plan, the cash

The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.30 per share be paid out. The proposal corresponds to a dividend totalling EUR 11 018 159.40 calculated with the number of shares at the end of the fi nancial year. Additionally, the Board proposes to the AGM that a return of capital of EUR 0.20 per share be paid out from the reserve of invested unrestricted equity. The proposal corresponds to a return of capital totalling EUR 7 345 439.60 calculated with the number of shares at the end of the fi nancial year. The dividend and capital return shall be paid to those who are registered as shareholders in eQ Plc's shareholder register maintained by Euroclear Finland Ltd on the record date 1 April 2016. The Board proposes 8 April 2016 as the payment date of the dividend and return of capital. gives an excellent starting point for the year 2016. We expect that the net revenue and operating profi t of the Asset Management segment will grow in 2016. The assignment base of the Corporate Finance segment is at the moment at the same level as in 2015, and we estimate that the net cash fl ow of the Investments segment will be strongly positive. The Board of Directors of eQ Plc has decided to issue a profi t forecast only for the Asset Management segment in future, as the results of the Corporate Finance and Investments segments are highly dependent of factors that are independent of the company. Consequently, the operating profi t of these segments may vary considerably and is diffi cult to foresee.

fl ow from the exits that eQ will receive after the period under review, in the fi rst or second quarter of 2016, is estimated to be about EUR 1.0 million, of which the estimated distribution of profi ts accounts for about EUR 0.2 million.

After the end of the fi nancial period, Advium has acted as advisor in four transactions of which two has been closed and two is waiting for fi nal closing.

The eQ PE VIII North Fund held its fi rst close on 5 February 2016 at EUR 51.0 million. eQ Plc gave an investment commitment of EUR 3.0 million to the fund.

Outlook

The asset management business grew well in 2015, which

Helsinki, 10 February 2016

eQ Plc Board of Directors

2015	2014	2013	2012	2011	SHARE RATIOS	2015	2014	2013	2012	2011
										0.16
2 061	834	3 430	5 080	6 482
					Diluted earnings per average share, EUR	0.28	0.19	0.09	0.10	0.16
30 520	24 438	18 767	16 295	15 808	Equity per share, EUR	1.91	2.13	1.97	2.03	2.08
					Equity per average share, EUR 1)	1.91	2.13	1.97	2.21	2.25
13 225	9 040	4 929	4 668	7 234
43.3	37.0	26.3	28.6	45.8	Dividend, EUR 1 000 2)	11 018	7 345	5 466	4 356	3 996
					Dividend per share 2)	0.30	0.20	0.15	0.12	0.12
13 225	9 040	4 857	4 632	6 932	Dividend per earnings, % 2)	103.4	100.0	150.0	120.0	75.0
43.3	37.0	25.9	28.4	43.9
					Return of capital, EUR 1 000 3)	7 345	11 018	-	-	-
10 470	7 118	3 414	3 386	4 942	Return of capital per share 3)	0.20	0.30	-	-	-
										3 996
										0.12
					Eff ective dividend and capital return yield, %	7.7	12.5	6.6	6.0	7.7
										9.8
										1.78
					Highest price	6.69	4.00	2.51	2.10	1.90
					Lowest price	3.94	2.26	1.98	1.49	1.34
					Closing price	6.50	4.00	2.29	2.00	1.56
80 896	86 652	77 653	84 319	74 020	Market capitalisation, EUR 1 000	238 727	146 909	83 453	72 594	52 198
										3 354
										10.8 5 956
					Adjusted number of shares, EUR 1 000
					Average during the period	36 727	36 397	36 419	33 335	30 983
					At the end of the period	36 727	36 727	36 442	36 297	33 460
32.1	35.2	42.6	52.6	61.0
46.8	49.3	58.2	67.1	82.1
	28 472 16 623 27 498 30 354 6 421 80 896 70 001 10 895 - 14.2 14.2 86.5 -31.0 55.1 53.5 51.8 81 81	22 903 17 283 31 311 30 898 7 160 86 652 77 469 9 183 - 9.6 9.5 89.4 -27.6 60.9 57.0 52.9 81 78	15 401 9 982 30 652 31 236 5 783 77 653 71 790 5 863 - 4.7 4.7 92.4 -14.0 67.9 68.9 82.0 82 82	11 226 9 389 39 106 29 312 6 513 84 319 73 604 6 677 4 038 4.7 4.7 87.3 -7.3 65.4 79.4 72.5 103 70	9 327 10 540 42 633 19 470 1 378 74 020 69 684 4 336 - 8.8 8.7 94.1 -15.2 50.4 63.6 66.3 62 50	Earnings per average share, EUR Dividend and return of capital, total, EUR 1 000 Dividend and return of capital, total per share Price/earnings ratio, P/E Adjusted share price development, EUR Average price Share turnover, 1 000 shares % of total number of shares Share turnover, EUR 1 000 2) Dividend proposal by the Board of Directors	0.29 18 364 0.50 22.4 5.19 8 744 23.8 45 833	0.20 18 364 0.50 20.0 2.81 2 479 6.8 7 066 1) Weighted average number of shares outstanding during the period	0.10 5 466 0.15 22.9 2.25 2 031 5.6 4 575 3) The Board's proposal for a return of capital from the reserve for invested unrestricted equity	0.10 4 356 0.12 20.0 1.79 6 107 18.3 11 146

KEY RATIOS, CONSOLIDATED

RETURN ON EQUITY, ROE (%)

100 x equity (average)

profi t or loss

EQUITY TO ASSETS RATIO (%)

100 x equity balance sheet total – advances received

100 x RETURN ON INVESTMENT, ROI (%) profi t or loss + interest expenses equity + interest-bearing fi nancial liabilities (average) 100 x administrative expenses + other operating expenses + depreciation (excl. agreement depreciation) net revenue

GEARING (%)

100 x interest-bearing liabilities - current investments - cash in hand and at bank

equity

COST/INCOME RATIO (%)

PRIVATE EQUITY INVESTMENTS TO EQUITY RATIO (%)

100 x private equity investments equity

DIVIDEND PER EARNINGS (%)

100 x dividend per share earnings per share

EFFECTIVE DIVIDEND AND CAPITAL RETURN YIELD (%)

100 x dividend and capital return per share adjusted share price at the balance sheet date

SHARE TURNOVER (%)

100 x number of shares traded during the period average number of shares during the period

EARNINGS PER SHARE, EPS

profi t or loss for the period attributable to equity holders of the parent company adjusted average number of shares during the period

EQUITY PER SHARE

equity adjusted number of shares at the balance sheet date

DIVIDEND PER SHARE

dividend adjusted number of shares at the balance sheet date

RETURN OF CAPITAL PER SHARE

return of capital from the reserve for invested unrestricted equity adjusted number of shares at the balance sheet date

PRICE/EARNINGS RATIO, P/E

adjusted share price at the balance sheet date earnings per share

MARKET CAPITALISATION

number of shares on 31. Dec. x closing price on 31. Dec 100 x private equity investments + remaining commitments equity

PRIVATE EQUITY COMMITMENTS TO EQUITY RATIO (%)

EUR 1 000	Note no.	2015	2014	EUR 1 000
Fee and commission income	6	28 704	23 147	ASSETS
Net income from securities and foreign exchange dealing	7	-16	-16
Interest income	8	2	22	Liquid assets
Net income from available-for-sale fi nancial assets	9	2 061	834	Claims on credit institutions
Other operating income	10	-	710
Operating income, total		30 752	24 698	Available-for-sale fi nancial assets
				Financial securities
Fee and commission expenses	11	-232	-243	Private equity fund investments
Interest expenses	12	0	-16
NET REVENUE		30 520	24 438	Intangible assets Tangible assets
Administrative expenses	13
Personnel expenses		-12 661	-10 741	Other assets
Other administrative expenses		-1 936	-1 914	Accruals and prepaid expenditure
				Income tax receivables
Depreciation on tangible and intangible assets	14	-742	-763	Deferred tax assets
Other operating expenses	15	-1 956	-1 943	TOTAL ASSETS
Impairment losses of other fi nancial assets		-	-38
OPERATING PROFIT (LOSS)		13 225	9 040	LIABILITIES AND EQUITY
PROFIT (LOSS) BEFORE TAXES		13 225	9 040	LIABILITIES
Income tax	16	-2 755	-1 923	Other liabilities
PROFIT (LOSS) FOR THE PERIOD		10 470	7 118	Accruals and deferred income
				Income tax liabilities
Consolidated statement of comprehensive income				Deferred tax liability
				TOTAL LIABILITIES
Other comprehensive income:
Items that may be reclassifi ed subsequently to the income statement:				EQUITY
Available-for-sale fi nancial assets, net		226	3 041
Translation diff erences		-14	5	Attributable to equity holders of the parent company:
Other comprehensive income after taxes		211	3 046	Share capital
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD		10 681	10 164	Fair value reserve
				Translation diff erence
Profi t for the period attributable to:				Reserve for invested unrestricted equity
Equity holders of the parent company		10 470	7 101	Retained earnings
Non-controlling interest		-	16	Profi t (loss) for the period TOTAL EQUITY
Comprehensive income for the period attributable to:
Equity holders of the parent company		10 681	10 147	TOTAL LIABILITIES AND EQUITY
Non-controlling interest		-	16
Earnings per share calculated from the profi t of	17
equity holders of the parent company
Earnings per average share, EUR		0.29	0.20
Diluted earnings per average share, EUR		0.28	0.19

Note no.	2015	2014
	53	19
18	16 571	17 263
19, 27-29, 30	5 042	4 051
	22 456	27 260
20 20	29 960 393	30 441 457
21 22	5 070 860	5 368 1 050
23	271 220	485 257
	80 896	86 652
24 25	2 874 6 099	2 886 4 029
	1 284	1 413
23	637 10 895	854 9 183
31
	11 384 700	11 384 475
	- 41 929	14 52 947
	5 518	5 548
	10 470 70 001	7 101 77 469
	80 896	86 652

CONSOLIDATED INCOME STATEMENT CONSOLIDATED BALANCE SHEET

eQ ANNUAL REPORT 2015 ³⁴ eQ ANNUAL REPORT 2015 ³⁵

CONSOLIDATED CASH FLOW STATEMENT

EUR 1 000	2015	2014	Equity attributable to equity holders of the parent company
CASH FLOW FROM OPERATIONS				Reserve
Operating profi t	13 225	9 040		for		Transla			Share of
Depreciation and impairment	1 170	1 998		invested	Fair	tion			noncon
Interest income and expenses	-2	-6	EUR 1 000 Share	unrestricted	value	diff er	Retained		trolling	Total
Transactions with no related payment transactions	188	-558	capital	equity	reserve	ences	earnings	Total	interest	equity
Available-for-sale investments, change	3 667	1 950	Shareholders' equity
			on 1 Jan. 2015 11 384	52 947	475	14	12 649	77 469	0	77 469
Change in working capital
Business receivables, increase (-) / decrease (+)	978	-1 165	Comprehensive income
Interest-free debt, increase (+) / decrease (-)	652	2 691	Profi t (loss) for the period				10 470	10 470		10 470
Total change in working capital	1 630	1 525	Other comprehensive income
			Available-for-sale fi nancial assets		226			226		226
Cash fl ow from operations before fi nancial items and taxes	19 878	13 949	Translation diff erences			−14		−14		-14
Interests received	2	22	TOTAL COMPREHENSIVE INCOME		226	−14	10 470	10 681	0	10 681
Interests paid	0	-16
Income taxes	-1 979	-1 363	Dividend distribution	−11 018			−7 345	−18 364		-18 364
			Options granted				159	159		159
CASH FLOW FROM OPERATIONS	17 902	12 592	Other changes				55	55		55
			Shareholders' equity on 31. Dec. 2015 11 384	41 929	700	0	15 988	70 001	0	70 001
CASH FLOW FROM INVESTMENTS
Investments in tangible and intangible assets	-198	-445
CASH FLOW FROM INVESTMENTS	-198	-445	Shareholders' equity on 1 Jan. 2014 11 384	52 167	−2 567	10	11 141	72 135	−345	71 790
CASH FLOW FROM FINANCING			Comprehensive income
Dividends paid	-18 364	-5 466	Profi t (loss) for the period				7 101	7 101	16	7 118
Income from share issue	-	781	Other comprehensive income
Annulment of own shares	-	-161	Available-for-sale fi nancial assets		3 041			3 041		3 041
CASH FLOW FROM FINANCING	-18 364	-4 846	Translation diff erences			5		5		5
INCREASE/DECREASE IN LIQUID ASSETS	-659	7 301	TOTAL COMPREHENSIVE INCOME		3 041	5	7 101	10 147	16	10 164
Liquid assets on 1 Jan.	17 283	9 982
Liquid assets on 31 Dec.	16 623	17 283	Dividend distribution				−5 466	−5 466		-5 466
			Share issue	781				781		781
			Options granted				152	152		152
			Annulment of own shares Changes in subsidiary holdings				−161 −118	−161 −118	328	-161 210
			Shareholders' equity on 31 Dec. 2014 11 384	52 947	475	14	12 649	77 469	0	77 469

CHANGE IN CONSOLIDATED SHAREHOLDERS' EQUITY

1 PRINCIPLES FOR PREPARING THE CONSOLIDATED FINANCIAL STATEMENTS

Basic information

eQ Plc is a Finnish public limited company founded under Finnish law. The domicile of the company is Helsinki, Finland. eQ Plc and its subsidiaries form eQ Group ("eQ" or "the Group"). The parent company eQ Plc's shares are listed on Nasdaq Helsinki. eQ Group is a group of companies that concentrates on asset management and corporate fi nance operations. eQ Asset Management off ers versatile asset management services to institutions and private individuals. Advium Corporate Finance, which is part of the Group, off ers services related to mergers and acquisitions, real estate transactions and equity capital markets.

A copy of the consolidated fi nancial statements is available on the company website at www.eQ.fi and at the head offi ce of the parent company, address Aleksanterinkatu 19 A, 00100 Helsinki, Finland.

The consolidated fi nancial statements have been prepared for the 12-month period 1 January to 31 December 2015.The Board of Directors of eQ Plc has approved the consolidated fi nancial statements for publication on 10 February 2016. According to the Finnish Limited Liability Companies Act, the Annual General Meeting shall have the right to adopt, reject or amend the fi nancial statements after their publication.

Principles for preparing the Financial Statements

eQ Plc's consolidated fi nancial statements have been prepared in accordance with International Financial Reporting Standards, IFRS, approved by the EU. The IAS and IFRS standards and SIC and IFRIC interpretations valid on 31 December 2015 have been applied when preparing the statements.

The Group has applied the following new and amended standards and interpretations from 1 January 2015:

• IAS 19 Employee Benefi ts, amendment to Defi ned Benefi t Plans: Employee Contributions (eff ective for fi nancial periods beginning on or after 1 July 2014). The amendments clarify accounting practices, when payments by employees or third parties are required in a defi ned benefi t plan. The amendment has not had any impact on the Group's fi nancial statements.

• Annual Improvements to IFRS standards 2010–2012 and 2011–2013 (mainly eff ective for fi nancial periods beginning on or after 1 July 2014). In the Annual Improvements procedure, all the minor and less urgent changes to the standards are gathered together and carried out once a year. The impacts of the amendments vary by standard, but they have not had any essential impact on the consolidated fi nancial statements.

New and amended standards and interpretations to be applied later:

The IASB has, for instance, published the following new or amended standards and interpretations that have not yet been applied by the Group. The Group will introduce each standard and interpretation as of its eff ective date or, if the eff ective date is some other date than the fi rst day of the fi nancial period, as of the beginning of the fi nancial period following the eff ective date.

• IFRS 15 Revenue from Contracts with Customers (eff ective for fi nancial periods beginning on or after 1 January 2018). The new standard provides a fi ve-step model to be applied to sales income based on contracts with customers and replaces the present IAS 18 and IAS 11 standards and interpretations based on them. Revenue can be recognised over time or at a specifi c time, with the central criterion being the transfer of control. The standard will also expand the notes presented with fi nancial statements. The Group is assessing the potential eff ects of the standard.
• IFRS 9 Financial Instruments and amendments thereto (eff ective for fi nancial periods beginning on or after 1 January 2018). The new standard replaces the existing IAS 39 standard Financial Instruments: Recognition and Measurement. IFRS 9 will change the classifi cation and measurement of fi nancial instruments, including a new expected credit loss model for calculating impairment on fi nancial assets. The classifi cation and measurement of fi nancial liabilities largely correspond to the current guidance in IAS 39. The Group is assessing the potential eff ects of the standard.

Use of estimates

Preparation of fi nancial statements in accordance with IFRS requires the use of estimates and assumptions that aff ect the amount of assets and liabilities in the balance sheet at the time of preparation, the reporting of contingent assets and liabilities, and the amount of profi ts and costs during the reporting period. The estimates are based on the management's current best view, but it is possible that the outcome diff ers from the values used in the fi nancial statements. • Nordic Venture Managers Limited • EFI II GP Limited The Group's subsidiary eQ Asset Management Norway AS was dissolved during the fi nancial period 2015. Segment reporting

Consolidation principles The consolidated fi nancial statements comprise all Group and associated companies. Subsidiaries are companies over which the Group exercises control. Control arises when a Group by being party to an entity is exposed to the entity's variable income or is entitled to its variable income and it can infl uence this income by exercising control over the entity. eQ Plc's operating segments are Asset Management, Corporate Finance, and Investments. Segment reporting is presented according to the internal reporting provided to the highest operative decision-makers and prepared in accordance with IFRS standards. The highest operative management is responsible for assessing the results of the business segments. In the Group, the CEO is responsible for this function. Within the Group, decisions regarding the assessment of the segments' results are based on the segments' results before taxes.

company eQ Plc and all the following subsidiaries:

• eQ Asset Management Ltd
• eQ Fund Management Company Ltd
• eQ Life Ltd
• Advium Corporate Finance Ltd
• Amanda GP I and II Ltd
• Amanda III Eastern GP Ltd
• Amanda IV West GP Ltd
• Amanda V East GP Ltd
• eQ PE VI North GP Ltd

• eQ PE VII US GP Ltd

• eQ PE VIII North GP Ltd

• eQ PE Value I GP Ltd
• CCF PE GP Ltd

The Group's internal holding has been eliminated by using the acquisition method. Acquired subsidiaries are consolidated from the moment the Group has gained control and transferred subsidiaries until control is terminated. The subsidiaries have been consolidated with the parent company by using the acquisition method. Non-controlling interests are shown as a separate item in the income statement and in the balance sheet in connection with shareholders' equity, on a separate line. All internal transactions, receivables, debts and the internal distribution of profi ts have been eliminated in the fi nancial statements. The consolidated fi nancial statements comprise the parent The business segments consist of business units with diff erent types of products and services as well as diff erent income logics and profi tability. The pricing between the segments is based on fair market value. The income, expenses and assets that directly belong to the business areas or can on sensible grounds be allocated to them are allocated to the business areas. Group administrative functions are presented under the item Other. The unallocated items presented under the item Other also comprise interest income and expenses and taxes. The highest operative decision-making body does not follow assets and liabilities at segment level, due to which the Group's assets and liabilities are not presented as divided between the segments.

The Asset Management segment comprises services related to mutual and private equity funds, discretionary asset management, structured investment products, investments insurance policies and a wide range of mutual funds off ered by international partners. The Corporate Finance segment comprises services related to mergers and acquisitions, real estate transactions and equity capital markets. The business operations of the Investments segment consist of private equity investments made from eQ Group's own balance sheet.

Foreign currency transactions

The consolidated fi nancial statements are presented in euros and foreign currency transactions are converted to euros using the exchange rates valid on the day of the transaction. Foreign currency receivables and liabilities are converted to euros using the exchange rates on the balance sheet date.

The gains and losses arising from foreign currency transactions and the translation of monetary items are presented through profi t and loss. The foreign currency diff erences are included in the net income from foreign exchange dealing.

The realised foreign currency translation gains and losses from available-for-sale investments are included in the net income from available-for-sale fi nancial assets. Unrealised foreign currency translation gains and losses from available-for-sale investments are included in the investments available for sale and the fair value reserve.

Revenue recognition

The fee and commission income from asset management, included in the operating income, is amortised per month and mainly invoiced afterwards in periods of one, three, six or twelve months. The performance fees, which depend on the success of investment operations, are also included in the fee and commission income from asset management. These performance fees consist of performance fees paid by mutual funds and Non-UCITS funds, profi t shares that private equity funds pay to management companies, and performance fees from asset management portfolios. As for the profi t share paid by private equity funds to management companies, the possible risk of default is calculated, and, if necessary, part of the income is left unrecognised.

The fee income related to projects within corporate fi nance operations is entered as income for the period during which the result of the project can be assessed in a reliable manner. The expenses arising from a project are expensed immediately.

The net income from available-for-sale fi nancial assets included the operating income includes the profi t distributions from private equity investments made from the own balance sheet as well as realised losses or losses assessed as permanent. Profi t distributions are recognised in accounting only when the realisation of the target funds has taken place or later, when the target funds have obtained the necessary permits from authorities. Sales profi ts and losses from direct investments are also included in the net income from available-for-sales fi nancial assets.

Tangible and intangible assets

Tangible assets are entered in the balance sheet at original acquisition cost less depreciation and impairment. Acquisition cost comprises the cost arising directly from the acquisition.

Intangible assets include the goodwill generated from corporate acquisitions. The goodwill arising in the combination of business operations is entered in the amount at which the transferred consideration, the share of non-controlling interests in the object of the acquisition and the previously owned share together exceed the fair value of the acquired net assets.

Goodwill is valued at original acquisition cost minus impairment. No depreciation is booked for goodwill but it is tested annually for impairment. Goodwill is allocated to cash-generating units.

Other intangible assets are brands, customer agreements, software licenses, and other intangible rights.

No depreciation is booked for intangible assets that have an unlimited useful life but they are tested annually for impairment. Intangible assets with a limited useful life are entered as costs into the income statement as straight-line depreciation according to plan during their useful life. Depreciation has been calculated based on the useful life from the original acquisition costs as straight-line depreciation.

The depreciation periods according to plan by asset type are as follows:

• Machinery and equipment 3 to 10 years
• Customer agreements 4 to 10 years
• Software and other intangible rights 4 to 5 years

Impairment and impairment test

The balance sheet values of other long-term tangible and intangible assets are tested for impairment at each balance sheet date and always when there is indication that the value of an asset may have been impaired. In the impairment test, the recoverable amount of the assets is tested. The recoverable amount is the higher of an asset's net sales price and its value in use, based on cash fl ow. An impairment loss is entered in the income statement, if the book value of the asset is higher than the recoverable amount. Share-related payments Option rights are valued at fair value on their grant date and expensed in the income statement during the period when the right arises. The fair value of granted options on the grant date has been defi ned by using the BlackScholes price-setting model. Income tax

Employment pensions

The Group's pension arrangement is a contribution-based arrangement and the payments are entered in the income statement for the periods to which they apply. The pension coverage of the Group's personnel is arranged with a stat-

The need for impairment is assessed at the level of cash-generating units, i.e. the lowest unit level that is mainly independent of other units and the cash fl ow of which can be separated from other cash fl ows. For the testing of impairment, the recoverable amount of the asset item has been defi ned by calculating the asset items' value in use. The calculations are based on fi ve-year cash fl ow plans approved by the management. The income cash fl ow of asset management is based on assets that are managed under asset management agreements. The development of the assets under management and the income cash fl ow of asset management operations depend essentially on the development of the capital market. The income cash fl ow of the corporate fi nance operations is markedly infl uenced by success fees, which are dependent on the number of corporate and real estate transactions. These vary considerably within one year and are dependent on economic trends. The estimate on the income cash fl ow of the corporate fi nance operations is based on the management's view on the number of future transactions. The future expense cash fl ows of the impairment calculations are based on the Group management's cost estimates for the future. In the calculations, the management uses as discount rate before taxes, which refl ects the view on the time value of money and the special risks related to the asset item. The taxes based on Group company earnings for the period are entered into the Group's taxes, as are the adjustments of taxes from previous periods and the changes in deferred taxes. The tax based on the period's taxable income is calculated from the taxable income based on each country's valid tax rate. The tax impact of items entered directly into shareholders' equity is similarly entered directly into the shareholders' equity. Deferred taxes are calculated based on the debt method from all temporary diff erences in accounting and taxation in accordance with the valid tax rate legislated before the end of the fi nancial year. The deferred tax receivable is entered to the amount in which taxable income is likely to arise in future, against which the temporary diff erence can be exploited. The most signifi cant temporary diff erences are generated from valuing the available-for-sale fi nancial assets at fair value and the valuation of the acquired companies' net assets at fair value. Financial assets and liabilities The Group's fi nancial assets and liabilities are classifi ed into the following groups in accordance with the IAS 39 standard: fi nancial assets and liabilities at fair value through profi t

utory TyEL insurance policy through an insurance company outside the Group.

or loss, available-for-sale fi nancial assets, loans and other receivables and other fi nancial liabilities. The classifi cation is made in connection with the original acquisition of the fi nancial instruments.

The available-for-sale fi nancial assets are assets not belonging to derivative assets that have specifi cally been classifi ed into

this group or that have not been classifi ed into any other group. eQ Group's private equity investments and investments in mutual funds are classifi ed as available-for-sale investments. Mutual fund investments available for sale are valued at fair value using quoted market prices and rates. Private equity investments are valued using the practice generally used in the sector, i.e. the fair value of the private equity investment is the latest fund value announced by the private equity fund management company added with the capital investments and less the capital returns that have taken place between the balance sheet date and the announcement of the management company. The changes in the fair value of investments available for sale are entered into comprehensive income and presented in shareholders' equity under the fair value reserve. When an investment available for sale is realised, the accumulated changes in fair value are booked from shareholders' equity to earnings.

Loans and other receivables are assets not belonging to derivative assets with fees that are fi xed or that can be defi ned and that are not quoted in functioning markets, nor does the Group hold them for trading purposes or classify them, in connection with the fi rst entry, specifi cally as available for sale. Their valuation principle is amortised cost, using the eff ective interest rate method.

Financial assets are derecognised when the Group has lost the agreement-based right to the cash fl ows or when it has to a signifi cant degree transferred the risks and return outside the Group.

Liquid assets consist of cash. Claims on credit institutions payable on demand are also included in liquid assets in the cash fl ow statement.

Financial liabilities are classifi ed either as fi nancial liabilities at fair value through profi t or loss or as liabilities valued at amortised cost. Interest-bearing liabilities are classifi ed as other fi nancial liabilities. Other fi nancial liabilities are valued at amortised cost and entered into the balance sheet and from the balance sheet on the clearing date.

Financial liabilities or their part are derecognised fi rst when the debt has ceased to exist, i.e. when the specifi ed obligation has been fulfi lled or annulled or its validity has been terminated.

Impairment of fi nancial assets

The Group assesses on each closing date of a reporting period whether there is objective proof of the impairment of a single item or a group of items included in fi nancial assets. An impairment is made if there is objective proof of the impairment of value of said item.

As for available-for-sale investments, the loss in the fair value reserve is transferred to the profi t or loss, if there is proof of the impairment. The private equity investments of eQ Group are equity-based. Consequently, the impairment losses of private equity investments are recognised through profi t or loss. When assessing the impairment losses, e.g. the following factors are taken into account: the life cycle of the private equity fund, does the private equity fund have uncalled investment commitments and the evaluation of the private equity fund's management company on the permanence of the fair value and acquisition price.

An impairment loss on receivables is recorded, when there is reliable proof that the company cannot recover its receivables according to the original terms.

Earnings per share

Earnings per share are calculated by dividing the profi t for the period belonging to the parent company's shareholders with the weighted average number of outstanding shares during the fi nancial period. When calculating earnings per share adjusted with dilution, the diluting eff ect of the conversion into shares of all diluting, potential ordinary shares is taken into consideration in the weighted average number. The Group's share options are diluting instruments, i.e. instruments that increase the number of ordinary shares.

Dividend distribution

No booking has been made for the dividend proposed by the Board of Directors to the AGM in the fi nancial statements and it has not been taken into account when calculating distributable retained profi ts. The dividend is taken into account based on the AGM decision.

2 RISK MANAGEMENT

eQ Group defi nes risk as an unexpected change in economic outcome. The purpose of risk management is to make sure that the risks associated with the company's operations are identifi ed, assessed and that measures are taken regarding them. Risk management shall see to it that manageable risks do not jeopardise the business strategy, critical success factors, or earning power. Risk management comprises all the measures that are needed for the cost-effi cient management of risks arising from the Group's operations. Risk management is a continuous process that is assessed at regular intervals. The aim of this is to make sure that risk management is adapted to the changing operating environment.

eQ Plc's Board supervises that the CEO takes care of eQ Plc's day-to-day administration according to the instructions and orders issued by the Board. The Board supervises that risk management and control are organised in a proper manner. eQ Plc's Board approves the principles for risk management and defi nes the company's organisation structure as well as the authorities, responsibilities and reporting relations. The executive management is responsible for the implementation of the risk management process and control in practice. It is the duty to the executive management to see to it that internal instructions are maintained and make sure that they are suffi cient and functional. The management is also responsible for making sure that the organisation structure functions well and is clear and that the internal control and risk management processes function.

eQ Group comprises a fully owned subsidiary of eQ Plc, eQ Asset Management Ltd, which is an investment fi rm. A permanent risk management function consisting of risk experts, which is independent of the other operations, is led by the Chief Risk Offi cer and responsible for risk management at eQ Asset Management Ltd. eQ Asset Management Ltd, as investment fi rm, and eQ Plc as the holding company, apply the Basel III/CRD IV regulations on capital adequacy. Below is a presentation of the major risks of eQ Group and the investment fi rm.

RISKS RELATED TO OPERATIONS

Financial risk

Financial risks are divided into market, liquidity and credit risks. The aim of the management of fi nancial risks is to cut down the impacts of fl uctuations in interest rates, foreign exchange rates and prices and other uncertainties as well as to guarantee suffi cient liquidity.

Market risk

• Market risk means the risk that changes in market prices may pose. Interest rate, currency and price risks are regarded as market risks. The business operations of Group companies do
• not as such comprise taking own positions in the equity or bond market for trading purposes. Therefore, market risks are small in this respect.

Interest rate risk

Interest rate risk means the uncertainty of the cash fl ow and result that results from changes in interest rates. The business operations of Group companies do not as such comprise taking own positions in the bond market for trading purposes. Therefore, there are no market risks in this respect. The possible interest rate risk of the Group mainly arises from short and long-term interest-bearing loans.

Loans with variable interest rates expose the Group to an interest rate risk, which can be hedged with interest rate swaps, when necessary. The interest rate risk is also managed through the planning of the balance sheet structure. The Group did not have any interest-bearing liabilities at the end of the reporting period.

Currency risk

Currency risk means the uncertainty of the cash fl ow and result arising from changes in exchanges rates. The Group company operations are mainly denominated in euros, which means that there is no signifi cant currency risk in this respect. eQ Plc's private equity investments are mainly euro-denominated, which means that the investment operations do not expose the Group to any signifi cant currency risk. eQ does not separately monitor changes arising from foreign exchange rates in its private equity operations but regards them as part of the change in the investment object's fair value. eQ's investments in private equity funds are divided into diff erent currencies as follows:

Price risk

Price risk means the possibility of loss due to fl uctuations in market prices.

The Group's parent company eQ Plc makes investments in private equity funds from its own balance sheet. eQ Plc's private equity investments are well diversifi ed, which means that the impact of one investment in a company, made by one individual fund, on the return of the investments is often small.

The major factors infl uencing the value of eQ's investments in private equity funds are the values of the companies included in the portfolio and factors infl uencing them, such as the:

• fi nancial success of the underlying company
• growth outlook of the underlying company,
• valuation of peers,
• valuation method selected by the management company of the fund.

Private equity investments in foreign currencies and change in fair value in euros, EUR million:

	less than 1 year
Loans from fi nancial institutions	-
Accounts payable and other liabilities	428
Total	428

31 Dec. 12.2015		decrease in value against the euro
	Currency	Euro	%	10%	20%
EUR million	20.4	20.4	91.0%
GBP million	0.5	0.7	3.0%	-0.1	-0.1
USD million	1.5	1.4	6.0%	-0.1	-0.3	Total
		22.5

31 Dec. 12.2014				decrease in value against the euro		31 Dec. 12.2014
	Currency	Euro	%	10%	20%
EUR million	25.0	25.0	91.8%
GBP million	0.9	1.1	4.1%	-0.1	-0.2
USD million	1.4	1.1	4.1%	-0.1	-0.2	Total
		27.3

	less than 1 year	1 to 5 years	over 5 years	total
Loans from fi nancial institutions	-	-	-	-
Accounts payable and other liabilities	448	-	-	448
Total	448	-	-	448

1 to 5 years - - over 5 years - - total 428 428

-

The price risk of eQ's private equity fund portfolio has been diversifi ed by making investments in diff erent sectors, geographic areas, and funds investing in diff erent development stages. At the end on 2015, there were altogether more than 410 indirectly owned companies in eQ's private equity fund portfolio. The impact of one individual risk on the value of eQ's private equity fund portfolio is small, owing to effi cient diversifi cation.

The impact of the price risk of the private equity portfolio on shareholders' equity:

At the end of 2015, a 10% change in the market value of the private equity fund portfolio corresponded to a change of EUR 1 796.5 thousand in the shareholders' equity. At the end of 2014, a 10% change in the market value of the private equity fund portfolio corresponded to a change of EUR 2 180.8 thousand in the shareholders' equity.

Liquidity risk

Liquidity risk means the risk that the company's liquid assets and possibilities of getting additional fi nancing are not suffi cient for covering business needs. Liquidity risk arises from the unbalance of cash fl ows.

The Group's liquidity is monitored continuously, and good liquidity is maintained by only investing the surplus liquidity in objects

Credit risk

with a low risk, which can be turned into cash rapidly and at a clear market price. The capital calls and exits from target companies of private equity funds have a major impact on liquidity. risk where the counterparties are solid and have a high credit rating. The credit risk of the asset management and corporate fi nance operations is related to commission receivables from clients, which are monitored daily.

The Group's major source of fi nancing is a positive cash fl ow. In addition, the Group's parent company has access to a credit limit of EUR 4.0 million in order to safeguard the availability and fl exibility of fi nancing. As for credit risks, eQ calculates its minimum capital adequacy requirements by using the so-called standardised approach.

The table below describes the maturity analysis of debts based on agreements.

Credit risk means that a customer or counterparty may not fulfi l its obligations arising from a credit relation and that the security that may have been issued is not suffi cient for covering the receivable. The Group's contractual counterparties are clients, who buy the company's services, and partners. The Group does not give any actual credits, which means that the credit risks mainly arise from the own investment portfolio. eQ Plc has tried to manage the credit risk related to private equity operations by diversifying the private equity investments well. eQ only makes new private equity investments in private equity funds managed by the Group. Operational risks may arise from inadequate or failed internal processes, people and systems, or from external events. Operational risks also cover legal and reputation risks, and they are managed by, for instance, developing internal processes and seeing to it that the instructions are good and the personnel is off ered suffi cient training. Legal risks are included in operational risks and can be related to agreements between the Group and diff erent partners. The Group tries to identify these risks by going through any agreements thoroughly and using the help of external experts, when necessary.

Operational risks

In addition, eQ Group may invest surplus liquidity in accordance with an investment policy that it has approved. Liquid assets are invested in fi xed-income funds with short maturity and continuous liquidity, in bank deposits or other corresponding short-term interest rate instruments with a low The Group carries out a self-assessment of operational risks annually. The aim is to identify operational risks, assess the probability and impacts of each separate risk and try to fi nd out ways of decreasing the risks.

In the self-assessments, the key employees of diff erent functions assess all potential operational risks in their operating environment. The Group tries to defi ne the expected value for risk transactions, i.e. the most likely amount of loss during the year. The expected value is calculated by multiplying the assessed number of risk occurrences and the assessed amount of one single loss in euros. The results of this assessment are used for planning the measures with which operational risks are cut down.

eQ calculates the capital requirement regarding operational risk based on the so-called basic indicator approach, which uses the weighted average of the return indicators for the three previous years. When assessing the risk-based capital of the operational risk, the Group uses risk reviews that are based on the self-assessments of diff erent functions.

Risks arising from business operations and external operating environment

The sources of income in Group operations have been diversifi ed to diff erent sources of income. Consequently, the Group can prevent excessive dependence on one single source of income.

The major single risk of the Group is the dependence of the operating income on changes in the external operating environment. The result of the asset management operations depends on the development of the assets under management, which is dependent of the development of the capital market. The management fees of private equity funds are based on long-term agreements that produce a stable cash fl ow, however. The result of the corporate fi nance operations is markedly infl uenced by success fees, which are dependent on the number of corporate and real estate transactions. These vary considerably within one year and are dependent on economic trends.

The Group tries to manage the risks associated with its business operations through a fl exible, long-term business strategy, which is reviewed at regular intervals and updated when necessary.

The impact of the risks associated with the external operating environment (business, strategic and reputation risks and risks arising from changes in the compliance environment) on the Group's result, balance sheet, capital adequacy and need of capital is assessed continuously as part of the day-to-day operations and at regular intervals in connection with the top management's strategy planning process. The regular planning assesses the impact on the result, balance sheet and capital adequacy. In the assessment, the company's assets must clearly exceed the minimum requirement set by authorities even in the alternative scenario. The Group's aim is to maintain a suffi cient equity buff er with which it can meet any risks posed by the external operating environment.

Other risks

Risks associated with property and indemnity risks

The Group has insurance policies for property, interruption and indemnity risks. The coverage of the insurance policies is assessed annually. The Group also protects its property with security control and passage rights.

Risks associated with the concentration of business

eQ Group off ers overall investment services, i.e. individual asset management and mutual funds for its clients, covering individuals, companies and institutional investors. In addition, the Group off ers asset management and advisory services related to private equity investments as well as corporate fi nance services. In normal situations, there are no essential concentration risks in the Group's operations that would have an impact on the need of capital, at least not to any signifi cant extent, which means that there is no need to maintain a separate risk-based capital regarding the concentration of operations.

3 CAPITAL MANAGEMENT

The aim of the Group's capital management is to create an effi cient capital structure that ensures normal operating preconditions and growth opportunities for the Group as well as the suffi ciency of capital in relation to the risks associated with the operations. The Group can infl uence the capital structure through dividend distribution and share issues, for instance. The capital managed is the shareholders' equity shown on the balance sheet. At the end of the accounting period 2015, the shareholders' equity amounted to EUR 70.0 million and the equity to assets ratio was 86.5%. The main source of fi nancing is the positive cash fl ow of operations. The Group also has access to a credit limit. The covenants associated with the Group's credit limit are regular terms dealing with the relation between the debt and the operating profi t, equity to assets ratio and the minimum amount of equity, for instance. During the accounting period, the Group has fulfi lled the covenants related to the credit limit. The Group's net gearing has been presented in the table below. The ratio is calculated by dividing net debt with shareholders' equity. The Group management monitors the development of net debt as part of capital management.

Net gearing, EUR 1 000

The suffi ciency of capital is assessed by comparing the available capital with the capital needed for covering risks. Capital planning is based on assessments of the future development of business, and the possible impacts of the risks associated with the operations on the operations. The plans take into consideration the viewpoints of diff erent stakeholders, e.g. authorities, creditors and owners.

	2015	2014
Interest-bearing fi nancial liabilities	0	0
Financial securities	5 042	4 051
Liquid assets	16 623	17 283
Net debt	-21 666	-21 333
Total shareholders' equity	70 001	77 398
Net gearing, %	-31.0%	-27.6%

4 CAPITAL ADEQUACY AND ITS MANAGEMENT

• eQ Group comprises a fully owned subsidiary of eQ Plc, eQ Asset Management Ltd, which is an investment fi rm. eQ Asset Management Ltd, as investment fi rm, and eQ Plc as the holding company, apply the Basel III/CRD IV regulations. Capital adequacy management is a central part of pillar 2 of the capital adequacy regulations. According to them, invest-
• ment fi rms are obliged to consider their capital adequacy in relation to risks in a more extensive manner than just ful-
• fi lling the capital adequacy requirements set out in the fi rst pillar regarding credit, market and operational risks. In the capital adequacy management process, the company builds a motivated view of essential risks and the risk-based capital need required by them, which is not the same as the capital adequacy requirement of pillar 1 and may deviate from it The capital adequacy management process deals with risks that are not taken into consideration in pillar 1 capital adequacy requirements, including qualitative risks. The capital adequa-
• 0 cy management process also takes a stand on the suffi cient level of risk management and internal control regarding each separate risk.

The capital adequacy management process is carried out at least once a year in connection with the planning of operations and budgeting. The process results in a capital plan describing the risk-based capital need, the suffi ciency of capital and capital adequacy .

CAPITAL ADEQUACY, EUR 1 000

EUR 1 000

The leverage ratio has been calculated based on information at the end of the quarter by dividing the tier 1 capital according to the capital requirements regulation (CRR) with the total amount of exposures. The total amount of exposures is the total amount of the exposure values and the off -balance sheet items that have not been deducted when defi ning tier 1 capital.

*Dividend and capital return proposed by the Board exceeding the profi t for the fi nancial year.

	CRR	CRR
	31 Dec. 2015	31 Dec. 2015
	eQ Group	eQ Group
Equity	70 001	77 469
Common equity tier 1 (CET 1) before deductions	70 001	77 469
Deductions from CET 1
Intangible assets	-29 882	-30 269
Fair value reserve	0	-475
Unconfi rmed profi t for the year	-10 470	-7 118
Dividend proposal by the Board*	-7 894	-11 246
Common equity tier 1 (CET1)	21 755	28 363
Additional tier 1 (AT1)	0	0
Tier 1 (T1 = CET1 + AT1)	21 755	28 363
Tier 2 (T2)	0	0
Total capital (TC = T1 + T2)	21 755	28 363
Risk-weights, total	110 066	114 995
of which credit risk	58 577	71 571
of which market risk - currency risk	5 411	2 835
of which operative risk	46 078	40 589
Common equity tier 1 (CET1) / risk-weights, %	19.8 %	24.7 %
Tier 1 (T1) / risk-weights, %	19.8 %	24.7 %
Total capital (TC) / risk-weights, %	19.8 %	24.7 %
Leverage ratio, %	35.5 %	42.3 %
Tier 1	21 755	28 363
Total amount of exposure	61 251	67 124
Total amount of exposure:
Balance sheet items excl. intangible assets	50 935	56 211
Off -balance sheet items	10 316	10 914

	Asset	Corporate	Invest		Elimin	Group
1 Jan. to 31 Dec. 2015	Man.	Finance	ments	Other	ations	total
Fee and commission income	21 675	7 029	-	-		28 704
From other segments	300	-	-	-	-300	0
Net income from foreign exchange dealing	-15	-	-	0		-16
Interest income	-	-	-	2		2
Net income from available-for-sale fi nancial assets	-	-	2 061	0		2 061
Other operating income	-	-	-	-		-
From other segments	-	-	-	77	-77	0
OPERATING INCOME, TOTAL	21 960	7 029	2 061	79		30 752
Fee and commission expenses	-220	-	-	-12		-232
To other segments	-	-	-300	-	300	0
Interest expenses	-	-	-	0		0
NET REVENUE	21 740	7 029	1 761	67		30 520
Administrative expenses
Personnel expenses	-8 668	-3 017	-	-976		-12 661
Other administrative expenses	-1 417	-303	-	-293	77	-1 936
Depreciation on tangible and intangible assets	-686	-24	-	-32		-742
Other operating expenses	-1 323	-294	-	-339		-1 956
OPERATING PROFIT (LOSS)	9 647	3 391	1 761	-1 573		13 225
Income tax				-2 755		-2 755
PROFIT (LOSS) FOR THE PERIOD				-4 328		10 470

5 SEGMENT INFORMATION

The Asset Management segment comprises services related to mutual and private equity funds, discretionary asset management, structured investment products, investments insurance policies and a wide range of mutual funds off ered by international partners. The Corporate Finance segment comprises services related to mergers and acquisitions, real estate transactions and equity capital markets. The business operations of the Investments segment consist of private equity investments made from eQ Group's own balance sheet.

EUR 1 000

	Asset	Corporate	Invest		Elimin	Group
1 Jan. to 31 Dec. 2014	Man.	Finance	ments	Other	ations	total
Fee and commission income	16 827	6 319	-	-		23 147
From other segments	300	-	-	-	-300	-
Net income from foreign exchange dealing	-14	-	-	-2		-16
Interest income	-	-	-	22		22
Net income from available-for-sale fi nancial assets	-	-	834	-		834
Other operating income	710	-	-	-		710
From other segments	-	-	-	77	-77	-
OPERATING INCOME, TOTAL	17 824	6 319	834	97	-377	24 698
Fee and commission expenses	-226	-	-	-17		-243
To other segments	-	-	-300	-	300	-
Interest expenses	-	-	-	-16		-16
NET REVENUE	17 597	6 319	534	64	-77	24 438
Administrative expenses
Personnel expenses	-7 024	-2 715	-	-1 002		-10 741
Other administrative expenses	-1 439	-308	-	-244	77	-1 914
Depreciation on tangible and intangible assets	-705	-24	-	-34		-763
Other operating expenses	-1 332	-296	-	-315		-1 943
Impairment losses of other fi nancial assets	-	-38	-	-		-38
OPERATING PROFIT (LOSS)	7 098	2 939	534	-1 531	0	9 040
Income tax				-1 923		-1 923
PROFIT (LOSS) FOR THE PERIOD				-3 453		7 118

The fee and commission income of the Asset Management segment from other segments comprises the management fee income from eQ Group's own investments in private equity funds. The corresponding expenses are allocated to the Investments segment. Under the item Other, income from other segments comprises the administrative services provided by Group administration to other segments and the undivided interest income and expenses. The item Other also includes the undivided personnel, administration and other expenses allocated to Group administration. The taxes not distributed to the segments are also presented under the item Other. The highest operative decision-making body does not follow assets and liabilities at segment level, due to which the Group's assets and liabilities are not presented as divided between the segments.

In 2014, the other income of the Asset Management segment includes a non-recurring item of EUR 0.7 million related

Geographic information:

Net revenue per country, EUR 1 000

The other countries comprise Guernsey and Norway. External net revenue is presented based on domicile.

Domicile	2015	2014
Finland	30 252	24 035
Other countries	268	403
Total	30 520	24 438

to the adjustment of the additional purchase price for Finnreit Fund Management Company Ltd purchased in 2013.

eQ Plc does not have any single clients the income from which would exceed 10% of the total income.

NOTES TO THE CONSOLIDATED INCOME STATEMENT

2015	2014
8 976	8 749
8 431	6 088
1 033	804
3 235 21 675	1 186 16 827
7 029	6 319
28 704	23 147
-16	-16
-16	-16
-	3
-	15
2	5
2	22
2 505	2 032
-428	-1 198
-16	0
2 061	834
-	710
-220	-226
-12	-17
-232	-243
0	-16
0	-16

EUR 1 000

6 FEE AND COMMISSION INCOME

Asset management fees

Management fees from traditional asset management Real estate and private equity management fees Other fee and commission income Performance fees

Total

Corporate Finance fees

TOTAL

7 NET INCOME FORM SECURITIES AND FOREIGN EXCHANGE DEALING

Net income from foreign exchange dealing TOTAL

8 INTEREST INCOME

From credit institutions From the public and public sector entities Other interest income TOTAL

9 NET INCOME FROM AVAILABLE-FOR-SALE FINANCIAL ASSETS

Profi t distribution from private equity funds Impairment losses Sales gains and losses TOTAL

10 OTHER OPERATING INCOME

Change in conditional payment for a corporate acquisition

11 FEE AND COMMISSION EXPENSES

Custody fees Other fees TOTAL

12 INTEREST EXPENSES

Other interest expenses TOTAL

EUR 1 000	2015	2014		2015	2014
13 ADMINISTRATIVE EXPENSES			16 INCOME TAX
Expenses related to employee benefi ts			Direct taxes for the fi nancial period	-2 863	-2 019
Short-term employee benefi ts			Changes in deferred taxes	107	96
Salaries and remuneration	-10 533	-8 863	TOTAL	-2 755	-1 923
Other indirect employee costs	-398	-529
Share-related payments	-159	-152	Deferred tax related to items
Benefi ts after end of employment			entered directly into equity	-175	-119
Pension costs - defi ned contribution plans	-1 570	-1 197
TOTAL	-12 661	-10 741	Tax reconciliation
			Profi t (loss) before taxes	13 225	9 040
Other administrative expenses
Other personnel expenses	-320	-283	Taxes calculated with the parent company's tax rate	-2 645	-1 808
IT and connection expenses	-756	-799	Income not subject to tax	0	0
Other administrative expenses	-859	-831	Non-deductible expenses	-29	-58
TOTAL	-1 936	-1 914	Taxes for previous fi nancial periods	-10	-
TOTAL	-14 597	-12 655	Consolidations and eliminations	-71	-56
14 DEPRECIATION			Taxes in income statement	-2 755	-1 923
Depreciation on tangible assets	-125	-72	Deferred taxes have been calculated using tax rates valid up to the balance
Depreciation on intangible assets			sheet date.
Customer agreements	-472	-472
Other intangible assets	-146	-218	17 EARNINGS PER SHARE
TOTAL	-742	-763
			Earnings per share attributable to equity holders of the parent company	10 470	7 101
15 OTHER OPERATING EXPENSES			Shares, 1 000 shares *)	36 727	36 397
Expert fees	-104	-43	Earnings per share calculated from the profi t of equity holders of the parent company:
Audit fees	-104	-169	Earnings per share, EUR	0,29	0,20
Audit fees	-95	-147	Diluted earnings per share, EUR	0,28	0,19
Certifi cates and statements	-5	-5	*) Calculated using the weighted average number of shares.
Tax consulting	-2	-6
Other services	-2	-11
Other expenses	-1 748	-1 730
Premises	-957	-858
Other expenses	-791	-872
TOTAL	-1 956	-1 943

EUR 1 000	2015	2014	EUR 1 000	2015	2014
18 CLAIMS ON CREDIT INSTITUTIONS			20 INTANGIBLE AND TANGIBLE ASSETS
Repayable on demand			Tangible assets
From domestic credit institutions	16 290	16 962	Machinery and equipment, acquisition cost on 1 Jan.	789	416
From foreign credit institutions	281	301	Increases	61	415
TOTAL	16 571	17 263	Decreases	-	-42
			Machinery and equipment, acquisition cost on 31 Dec.	850	789
19 SHARES AND PARTICIPATIONS
			Accumulated depreciation and impairment on 1 Jan.	-341	-308
Investments available for sale			Depreciation for the period	-125	-32
Private equity investments			Accumulated depreciation and impairment on 31 Dec.	-465	-341
Book value on 1 Jan.	27 260	30 600
Increases	2 131	2 292	Tangible assets on 31 Dec.	385	448
Decreases	-6 808	-8 241
Value adjustment	300	3 807	Other tangible assets on 1 Jan.	8	8
Permanent impairment	-428	-1 198	Other tangible assets on 31 Dec.	8	8
Book value on 31. Dec.	22 456	27 260
Financial securities			Intangible assets
Book value on 1 Jan.	4 051	51
Increases	1 510	4 050	Other intangible assets
Decreases	-500	-46	Intangible assets, acquisition cost on 1 Jan.	1 538	1 527
Value adjustment	-18	-4	Increases	137	30
Book value on 31. Dec.	5 042	4 051	Decreases	-	-19
			Intangible assets, acquisition cost on 31 Dec.	1 675	1 538
			Accumulated depreciation and impairment on 1 Jan.	-1 171	-953
			Depreciation for the period	-146	-218
			Accumulated depreciation and impairment on 31 Dec.	-1 317	-1 171
			Other intangible assets on 31. Dec.	358	367
			Customer agreements
			Intangible assets, acquisition cost on 1 Jan.	6 713	6 713
			Increases/decreases	-	-
			Intangible assets, acquisition cost on 31 Dec.	6 713	6 713
			Accumulated depreciation and impairment on 1 Jan.	-5 851	-5 379
			Depreciation for the period	-472	-472
			Accumulated depreciation and impairment on 31 Dec.	-6 323	-5 851
			Customer agreements on 31 Dec.	390	862
			Intangible assets on 31. Dec.	748	1 229
			Goodwill, acquisition cost on 1 Jan.	25 212	25 212
			Increases/decreases	-	-
			Goodwill, acquisition cost on 31. Dec.	25 212	25 212
			Brands on 1 Jan.	4 000	4 000
			Increases/decreases	-	-
			Brands on 31 Dec.	4 000	4 000
			Intangible assets, book value on 31 Dec.	29 960	30 441

Goodwill and value of brands

eQ Plc has in its consolidated balance sheet goodwill generated from corporate acquisitions related to the asset management and corporate fi nance operations. The goodwill associated with the asset management operations is related to the acquisition of Finnreit Fund Management Company Ltd in September 2013, the acquisition of Icecapital Asset Management Ltd in November 2012, the acquisition of eQ Asset Management Group Ltd in March 2011, and the acquisition of Mandatum Private Equity Fund Ltd in December 2005. The goodwill associated with corporate fi nance operations is related to the acquisition of Advium Corporate Finance Ltd in March 2011.

Allocation of goodwill to cash-generating units, EUR million:

Allocation of brands to cash-generating units, EUR million:

Additionally, a total of EUR 4.0 million concerning asset management and corporate fi nance operations has been allocated to intangible assets by calculating fair values for the acquired brands. In connection with the acquisition of eQ Asset Management Group Ltd, EUR 2.0 million was allocated to the eQ brand by calculating a fair value for the brand. In connection with the acquisition of Advium Corporate Finance Ltd, EUR 2.0 million was allocated to the Advium brand by calculating a fair value for the brand. The useful lives of the brands have been deemed as unlimited, as their strong recognisability supports the management's view that they will generate cash fl ows during a period of time that cannot be defi ned.

Impairment testing

No depreciation is booked for intangible assets that have an unlimited useful life but they are tested annually for impairment. For the testing of impairment, the recoverable amount of the asset item has been defi ned by calculating the asset items' value in use. The calculations are based on fi ve-year cash fl ow plans approved by the management.

The income cash fl ows of asset management are based on assets that are managed under asset management agreements. The development of the assets under management and the income cash fl ow of asset management operations depend essentially on the development of the capital market. The income cash fl ow of the corporate fi nance operations is markedly infl uenced by success fees, which are dependent on the number of corporate and real estate transactions. These vary considerably within one year and are dependent on economic trends. The estimate on the income cash fl ow of the corporate fi nance operations is based on the management's view on the number of future transactions. The future expense cash fl ows of the impairment calculations are based on the Group management's cost estimates for the future.

Cash fl ow that extends beyond the fi ve-year prognosis period has been calculated by using the so-called fi nal value method, in which the management's conservative estimate on the long-term growth of the cash fl ow has been applied when defi ning growth. An annual growth of 1% has been used as the growth factor of the fi nal value.

In the calculations, the management uses as discount rate before taxes, which refl ects the view on the time value of money and the special risks related to the asset item. In 2015, the discount rate was 9% (9% in 2014).

The impairment tests show no indication of decrease in value.

	31 Dec. 2015	31 Dec. 2014
Asset Management	17.9	17.9
Corporate Finance	7.3	7.3

	31 Dec. 2015	31 Dec. 2014
Asset Management	2.0	2.0
Corporate Finance	2.0	2.0

• than the original prognosis at the most
• than the original prognosis at the most

Sensitivity analysis The impairment test calculations have been subjected to sensitivity analyses by using poorer scenarios than the actual prognoses. With these scenarios, we wanted to study the change of the value in use by changing the basic assumptions of value defi nition. The future income and expense cash fl ows, discount rate and growth speed of the fi nal value were changed in the sensitivity analyses. The scenarios were formed by changing the assumptions as follows: • by using annually an income cash fl ow that is 15% lower • by using annually an expense cash fl ow that is 15% higher • by using 0% growth in the fi nal value calculations • by using a 4% higher discount rate at the most Based on the sensitivity analyses, none of the scenarios alone changes the recoverable amount to such an extent that it would lead to a situation where the book value exceeds the value in use. Based on the impairment tests conducted, there is no need to make any impairment write-downs. The management feels that the above-described theoretical changes made in the basic assumptions of the scenarios should not be interpreted as any proof for their likelihood. Sensitivity analyses are hypothetical and must therefore be treated with certain reservation. As for corporate fi nance operations, a relatively possible change in the central assumption, based on which the recoverable amount has been defi ned, can result in a situation where the book value of goodwill and brand value exceeds the recoverable amount. If the operating profi t level of the corporate fi nance operations is 76% lower than in 2015 in

each year during the following fi ve-year period, partial writedown of goodwill is possible. The corporate fi nance operations' value in use exceeds the book value of the goodwill and brand in the 2015 goodwill test by EUR 24.0 million. The result of the corporate fi nance operations is markedly infl uenced by success fees, which are dependent on the number of corporate and real estate transactions. These vary considerably within one year and are dependent on economic trends.

EUR 1 000	2015	2014	EUR 1 000
21 OTHER ASSETS			26 BALANCE SHEET ITEMS DENOMINATED IN DOMESTIC AND FOREIGN CURRENCIES
Sales receivables	1 427	3 220	31 Dec. 2015	Other than EUR	EUR	Total
Management fee receivables	3 375	1 850
Other receivables	267	298	Balance sheet items
TOTAL	5 070	5 368	Claims on credit institutions	281	16 290	16 571
			Other assets	2 285	62 040	64 325
Sales receivables EUR 1 427 thousand, age distribution: due for less than 30 days.			TOTAL	2 565	78 330	80 896
22 ACCRUALS AND PREPAID EXPENDITURE			Other liabilities	57	10 837	10 895
			TOTAL
Other accruals	860	1 050		57	10 837	10 895
TOTAL	860	1 050
			31 Dec. 2014
The other accruals include prepayments for pension and				Other than EUR	EUR	Total
employer insurance premiums of EUR 2 thousand.			Balance sheet items
			Claims on credit institutions
23 DEFERRED TAX ASSETS AND LIABILITIES			Other assets	378	16 886	17 263
			TOTAL	2 577	66 812	69 389
Deferred tax assets				2 955	83 697	86 652
Changes in fair value	220	257	Total liabilities
Deferred tax assets	220	257	TOTAL	42 42	9 141 9 141	9 183 9 183
Deferred tax liabilities
Agreements	78	172
Changes in fair value	454	567
Other diff erences	105	115
Deferred tax liabilities	637	854
Deferred tax assets (-) / tax liabilities (+), net	417	597
The deferred tax assets are booked up to the amount of the probable future
taxable income against which unused tax losses can be utilised.
24 OTHER LIABILITIES
Accounts payable	428	448
Fee repayment liabilities	1 825	1 764
Other liabilities	621	674
TOTAL	2 874	2 886
25 ACCRUALS AND DEFERRED INCOME
Holiday pay	876	812
Other accruals	5 224	3 217
TOTAL	6 099	4 029

NOTES TO THE CONSOLIDATED BALANCE SHEET

EUR 1 000

27 FINANCIAL ASSETS AND LIABILITIES

A credit limit or EUR million is available to eQ Group, of which EUR 0 had been drawn at end of fi nancial year 2015.

The table presents the fair values and book values of fi nancial assets and liabilities per balance sheet item. The valuation principles of fair values are presented in the principles for preparing the fi nancial statements.

The original book value of sales receivables and accounts payable corresponds to their fair value, as the eff ect of discounting is not material considering their maturity.

EUR 1 000

29 VALUE OF FINANCIAL ASSETS ACROSS THE THREE LEVELS OF THE FAIR VALUE HIERARCHY

31 Dec. 2015

Available-for-sale fi nancial assets Private equity investments Financial securities TOTAL

Level 3 reconciliation Available-for-sale fi nancial assets

Opening balance Calls Returns Impairment loss Change in fair value Sales Closing balance

31 Dec. 2014

	Book	Interest income	Profi ts	Impairment	Dividend
2015	value	and expenses	and losses	loss	income
Financial assets
Available-for-sale fi nancial assets	27 498	2	2 489	-428	-
Sales receivables and other receivables	1 427	-	-	-	-
Liquid assets	16 623	-	-	-	-
TOTAL	45 549	2	2 489	-428	-
Financial liabilities
Accounts payable and other liabilities	428	0	-	-	-
TOTAL	428	0	-	-	-
	Book	Interest income	Profi ts	Impairment	Dividend
2014	value	and expenses	and losses	loss	income
Financial assets		4
Available-for-sale fi nancial assets	31 311	15	2 032	-1 198	-
Loan receivables	-	-	-	-	-
Sales receivables and other receivables	3 220	3	-	-	-
Liquid assets	17 283		-
TOTAL	51 813	18	2 032	- -1 198	- -
Financial liabilities Accounts payable and other liabilities	448	0 0	-	-	-

Available-for-sale fi nancial assets Private equity investments Financial securities TOTAL

Level 3 reconciliation Available-for-sale fi nancial assets

Opening balance
Calls
Returns
Impairment loss
Change in fair value
Closing balance

Level 1 comprises liquid assets the value of which is based on quotes in the liquid market. A market where the price is easily available on a regular basis is regarded as a liquid market

	2015		2014
28 FAIR VALUES	Fair value	Book value	Fair value	Book value
Financial assets
Available-for-sales fi nancial assets
Private equity investments	22 456	22 456	27 260	27 260
Financial securities	5 042	5 042	4 051	4 051
Sales receivables and other receivables	1 427	1 427	3 220	3 220
Liquid assets	16 623	16 623	17 283	17 283
TOTAL	45 549	45 549	51 813	51 813
Financial liabilities
Accounts payable and other liabilities	428	428	448	448
TOTAL	428	428	448	448

The fair values of level 3 instruments are based on the value of the fund according to the management company of the fund and their use in widely used valuation models. Private equity investments are valued in accordance with a practice widely used in the sector, International Private Equity and Venture Capital Guidelines.

The impairment losses of private equity investments are based on the management's assessments, as described in the principles for preparing the fi nancial statements.

During the period under review , no transfers took place between the levels of the fair value hierarchy.

Level 1	Level 3
-	22 456
5 042	-
5 042	22 456
Private
equity
investments
27 260
2 131
-6 464
-428
300
-343
22 456
Level 1	Level 3
-	27 260
4 051	-
4 051	27 260
Private
equity
investments
30 600
2 292
-8 241
-1 198
3 807
27 260

EUR 1 000

30 PRIVATE EQUITY INVESTMENTS Funds managed by eQ: Funds of funds; eQ PE VII US LP eQ PE VI North LP Amanda V East LP Amanda IV West LP Amanda III Eastern PE LP European Fund Inv. LP (EFI II) TOTAL Funds managed by others: Large buyout funds Midmarket funds Venture funds TOTAL *Unrealised value change before taxes Remaining investment commitment Funds managed by eQ: Funds of funds: eQ PE VII US LP eQ PE VI North LP Amanda V East LP Amanda IV West LP Amanda III Eastern PE LP European Fund Inv. LP (EFI II) TOTAL Funds managed by others: Large buyout funds Midmarket funds Venture funds TOTAL Market value based on the year of establishment –2000 2001–2005 2006–2010 2011– TOTAL Remaining investment commitment based on the year of establishment –2000 2001–2005 2006–2010 2011– 2014 - 58 -66 604 1 174 -34 1 736 274 -1 174 -239 597 2014 - 4 550 2 870 934 770 31 9 155 534 1 141 115 10 945 1 016 3 407 22 381 456 27 260 187 849 5 359 4 550 2014 - 398 1 803 3 186 6 934 358 12 678 7 455 4 979 1 550 26 663 2014 - 456 1 737 3 790 8 107 324 14 414 7 729 3 806 1 311 27 260 2015 6 -55 -496 607 803 -94 772 532 -465 58 897 2015 2 563 2 432 2 170 646 744 35 8 590 355 1 255 115 10 316 691 2 188 19 021 556 22 456 115 818 4 388 4 995 2015 186 419 2 503 2 979 6 189 351 12 627 4 942 2 698 1 292 21 558 2015 192 364 2 007 3 585 6 993 257 13 399 5 474 2 234 1 349 22 456 Unrealised Market value Acquisition cost value change*

TOTAL

10 945

10 316

31 EQUITY

Description of equity funds

Reserve for invested unrestricted equity

The reserve for invested unrestricted equity includes other investments of equity nature and the subscription price of shares that is not specifi cally recognised in share capital.

Fair value reserve

The fair value reserve includes accumulated fair value changes of available-for-sale fi nancial assets and the deferred taxes related to these changes.

Translation diff erence

The reserve for translation diff erences includes items from the translation of the fi nancial statements of foreign units.

33 INFORMATION ON RELATED PARTIES

The Group's related parties are the parent company, subsidiaries, associated companies as well as the members of the Board and Management Team, including the CEO. The spouses and other close relatives of the above-mentioned persons are also regarded as related parties. Entities in which said persons exercise control are also considered related parties. The members of the Board, CEO and the Group's Management Team are regarded as key executives.

The retirement age and pension of the CEO and other members of the Management Team are determined in accordance with the Finnish Employees Pensions Act. The CEO and other members of the Management Team do not have any supplementary pension schemes.

32 CONTINGENT LIABILITIES AND SECURITIES

Remaining investment commitments in private equity funds Lease and rental agreements less than one year Lease and rental agreements exceeding one year but less than fi ve years TOTAL

eQ Group has issued a security for a lease with a balance sheet value of EUR 0.2 million. The security, which has been issued as a mutual fund share, is included in fi nancial securities under available-for-sale fi nancial assets on the balance sheet.

EUR 1 000

Salaries and remuneration of executives

Salary and remuneration of the CEO Salary and remuneration of other Management Team members

2015	2014
10 316	10 945
768	765
2 181	2 874
13 264	14 584

2015	2014
300	234
622	547

The Group executives have at the end of the fi nancial period been granted 900 000 option rights under the 2010 option scheme, of which 450 000 option rights to the CEO. Of the option rights under option scheme 2010 granted to the Group executives a total of 270 000 had been exercised by the end of the fi nancial period 2015.

The Group executives have at the end of the fi nancial period been granted 450 000 option rights under the 2015 option scheme, of which 100 000 to the CEO.

The Board of Directors has no share-related rights or other remuneration schemes. The AGM held on 25 March 2015 decided that the directors be paid the following remuneration: Chairman of the Board EUR 3 300 and the other directors EUR 1 800 per month.

Loans to related parties

Holdings of the Board and Management Team in eQ Plc on 31 Dec. 2015

The table below shows the personal holdings of the members of the Board and the Management Team and companies under their control..

EUR 1 000

Statutory pensions	2015	2014
Statutory pensions of the CEO	56	44
Statutory pensions of other members of the Management Team	116	102

On 4 September 2012, eQ Plc's Board of Directors decide to grant an interest-bearing loan in the amount of EUR 1.3 million to a company wholly owned by Mikko Koskimies, who had been appointed CEO of eQ Asset Management Ltd and member of eQ Group's Management Team for fi nancing a purchase of shares in eQ Plc as part of the management's long-term incentive scheme. The loan was fully repaid to the company during the fi nancial period 2014.

Transactions with related parties and receivables from related parties

EUR 1 000

Loans to key executives of the Group	2015	2014
At the beginning of the period	0	1 300
During the period	-	-
Repayments of loans	-	-1 300
At the close of the period	0	0

EUR 1 000

Other transactions with related parties *	2015	2014
Sales	187	166
Receivables	0	0

*eQ Group has off ered persons regarded as related parties and the entities that they control asset management services. Normal market terms are applied to transactions with related parties.

Ehrnrooth, Georg * Berner, Nicolas Dahlblom, Christina Poutiainen, Annika Seppäla, Jussi Larma, Janne Jåfs, Staff an Koskimies, Mikko Lundström, Lauri Lyytikäinen, Antti Surve, Juha

Shares	Share of votes and shares, %
6 548 137	17.83%
40 000	0.11%
0	0.00%
1 100	0.00%
75 000	0.20%
5 322 635	14.49%
18 089	0.05%
3 700 000	10.07%
400 000	1.09%
0	0.00%
45 000	0.12%

*Georg Ehrnrooth together with his brothers Henrik Ehrnrooth and Carl-Gustaf Ehrnrooth, holds a controlling interest in Fennogens Investments S.A..

34 SUBSIDIARIES

The following subsidiaries are part of the Group at the end of the fi nancial year:

Company

eQ Asset Management Ltd eQ Fund Management Company Ltd eQ Life Ltd Advium Corporate Finance Ltd Amanda GP I and II Ltd Amanda III Eastern GP Ltd Amanda IV West GP Ltd Amanda V East GP Ltd eQ PE VI North GP Ltd eQ PE VII US GP Ltd eQ PE VIII North GP Ltd eQ PE Value I GP Ltd CCF PE GP Ltd Nordic Venture Managers Limited EFI II GP Limited

	Holding/
Domicile	share of votes
Finland	100%
Finland	100%
Finland	100%
Finland	100%
Finland	100%
Finland	100%
Finland	100%
Finland	100%
Finland	100%
Finland	100%
Finland	100%
Finland	100%
Finland	100%
Guernsey	100%
Scotland	100%

OTHER NOTES

35 SHARES IN ENTITIES NOT INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENTS

eQ Group has investment commitments in the following private equity funds in form of limited partnerships that are under the Group's management and that have not been consolidated in eQ Group as subsidiaries. eQ Group's shares in structured entities that are not consolidated as subsidiaries had a total market value of EUR 13.4 million on 31 December 2015 (EUR 14.4 million on 31 Dec. 2014). In 2015, the Group received from said funds management fees totalling EUR 3.2 million (EUR 3.5 million 1 Jan. to 31 Dec. 2013) and a profi t distribution from own investments totalling EUR 1.1 million (EUR 0.4 million). In 2015, eQ Plc sold part of its investment in the eQ PE VI North Fund. The sold original investment commitment was EUR 2.0 million. eQ Plc also made an investment commitment of EUR 2.7 million in the eQ PE VII US Fund.

eQ has assessed that it does not exercise control in said private equity funds based on the size of eQ's own investment commitment compared with the size of the fund, exposure to the fund's variable income and the right to manage signifi cant functions. These private equity fund investments are included in available-for-sale investments on the balance sheet.

The presented balance sheet values describe the possible maximum loss to which eQ Group is exposed. eQ Group has not given any other commitments on fi nancial support nor does the Group currently have any intention of giving fi nancial support to the structured entities not included in the consolidated fi nancial statements in the foreseeable future. The private equity funds have been fi nanced with investment commitments by investors. More information about eQ Group's risks related to private equity investments can be found in Note 2.

EUR 1 000

	Size of the	eQ's original	Market value of	Acquisition cost of	eQ's remaining
31 Dec. 2015	fund	commitment	eQ's investment	eQ's investment	commitment
eQ PE VII US LP	79 495	2 749	192	186	2 563
eQ PE VI North LP	100 000	3 000	364	419	2 432
Amanda V East LP	50 000	5 000	2 007	2 503	2 170
Amanda IV West LP	90 000	5 000	3 585	2 979	646
Amanda III Eastern PE LP	110 200	10 000	6 993	6 189	744
Eur. Fund Inv. LP (EFI II)	88 000	880	257	351	35
TOTAL	517 695	26 629	13 399	12 627	8 590

31 Dec. 2014	Size of the fund	eQ's original commitment	Market value of eQ's investment	Acquisition cost of eQ's investment	eQ's remaining commitment
eQ PE VI North LP	100 000	5 000	456	398	4 550
Amanda V East LP	50 000	5 000	1 737	1 803	2 870
Amanda IV West LP	90 000	5 000	3 790	3 186	934
Amanda III Eastern PE LP	110 200	10 000	8 107	6 934	770
Eur. Fund Inv. LP (EFI II)	88 000	880	324	358	31
TOTAL	438 200	25 880	14 414	12 678	9 155

EUR	Note no.	2015	2014	EUR
Fee and commission income	2	76 800.00	76 800.00	ASSETS
Income from equity investments
From Group undertakings	3	890 268.00	2 456 011.00	Liquid assets
Interest income	4	1 145.22	17 330.78	Claims on credit institutions
Net income from available-for-sale fi nancial assets	5	1 941 536.89	1 011 786.52	Repayable on demand
INVESTMENT FIRM INCOME		2 909 750.11	3 561 928.30	Claims on the public and public sector entities Other
Fee and commission expenses	6	-312 000.00	-317 000.00	Shares and participations
Interest expenses	7	-16 368.18	-32 593.52	Shares and participations in
				Group undertakings
Administrative expenses		-1 247 755.07	-1 220 638.15	Intangible assets
Personnel expenses	8	-954 733.41	-976 994.67	Tangible assets
Salaries and remuneration		-811 203.59	-822 152.23	Other tangible assets
Indirect employee costs		-143 529.82	-154 842.44	Other assets
Pension costs		-135 432.00	-135 887.71	Accruals and prepaid expenditure
Other indirect employee costs		-8 097.82	-18 954.73	Deferred tax assets
Other administrative expenses	9	-293 021.66	-243 643.48	TOTAL ASSETS
Depreciation and impairment on tangible and
intangible assets	10	-32 395.54	-34 134.13	LIABILITIES AND EQUITY
Other operating expenses	11	-338 681.76	-314 857.30
Impairment losses of other fi nancial assets	12	-182 799.96	-696 074.10	LIABILITIES
OPERATING PROFIT (LOSS)		779 749.60	946 631.10
				Liabilities to the public and public sector entities
Income tax	13	-2 666 968.11	-1 521 162.77	Other
				Other liabilities
OPERATING PROFIT (LOSS) AFTER TAXES		-1 887 218.51	-574 531.67	Other liabilities
				Accruals and deferred income
Extraordinary income and expenses	14	12 980 000.00	7 850 000.00	Deferred tax liabilities
				TOTAL LIABILITIES
PROFIT (LOSS) FOR THE FINANCIAL PERIOD		11 092 781.49	7 275 468.33
				EQUITY
				Share capital

Note no.	2015	2014
	3 264.00	-
15	6 512 846.88	6 985 955.37
16	1 500.00	19 277.51
17. 26	27 228 819.87	30 478 493.21
17	27 339 855.37	28 660 035.33
18	30 303.35	17 585.55
18	73 196.72	58 651.54
19	5 545 601.07	8 287 848.54
20	30 376.33	108 732.42
21	200 770.21	257 109.32
	66 966 533.80	74 873 688.79

	700 000.00	1 300 000.00
22	1 396 891.50	1 583 272.21
23	116 881.74	128 225.03
21	453 662.60	570 864.22
	2 667 435.84	3 582 361.46
27
	11 383 873.00	11 383 873.00
	775 141.40	502 885.88
	40 074 721.26	51 092 880.66
	972 580.81	1 036 219.46
	11 092 781.49	7 275 468.33
	64 299 097.96	71 291 327.33
	66 966 533.80	74 873 688.79

Restricted equity Fair value reserve Unrestricted equity

Reserve for invested unrestricted equity

Retained earnings Profi t (loss) for the period

TOTAL EQUITY

TOTAL LIABILITIES AND EQUITY

PARENT COMPANY INCOME STATEMENT (FAS) PARENT COMPANY BALANCE SHEET (FAS)

EUR 1 000	2015	2014
CASH FLOW FROM OPERATIONS
Operating profi t	13 760	8 797
Adjustments:
Depreciation and impairment	643	1 707
Interests received	-1	-17
Interests paid	16	33
Dividends received	-890	-2 456
Transactions with no related payment transactions	-5 480	-7 850
Available-for-sale investments, change	3 162	2 350
Change in working capital
Business receivables, increase (-) decrease (+)	8 318	1 462
Interest-free liabilities, increase (+) decrease (-)	-1 469	-47
Total change in working capital	6 850	1 415
Cash fl ow from operations before fi nancial items and taxes	18 060	3 978
Interests received	1	17
Interests paid	-16	-33
Dividends received	890	2 456
Taxes	-1 519	-414
CASH FLOW FROM OPERATIONS	17 416	6 005
Cash fl ow from investments
Investing activities in tangible and intangible assets Investing activities in investments	-60 1 137	-51 1 010
CASH FLOW FROM INVESTMENTS	1 078	959
Cash fl ow from fi nancing
Dividends paid	-18 364	-5 466
Share issue	-	781
Annulment of own shares	-	-161
Repayments of loans	-600	-
CASH FLOW FROM FINANCING	-18 964	-4 846
Increase/decrease in liquid assets	-470	2 118
Liquid assets on 1 Jan.	6 986	4 868
Liquid assets on 31 Dec.	6 516	6 986

PARENT COMPANY CASH FLOW STATEMENT (FAS)

1 PRINCIPLES FOR PREPARING THE FINANCIAL STATEMENTS

General

When preparing the fi nancial statements, the company has followed the Ministry of Finance Decree on fi nancial statements and consolidated fi nancial statements of credit institutions and investment fi rms (698/2014) and the Financial Supervision Authority's regulations on accounting, fi nancial statements, and report by the Board of Directors for the fi nancial sector (1/2013).

Valuation principles and methods as well as periodization principles and methods

The fi nancial assets are classifi ed into the following categories in accordance with IAS 39 Financial instruments, recognition and measurement: fi nancial assets at fair value through profi t or loss, held-to-maturity investments, loans and receivables and available-for-sale fi nancial assets. The

Fee and commission income is recorded when the income can be defi ned in a reliable manner and it is likely that the company benefi ts from the fi nancial advantage related to the transaction. Dividend income is recorded when the right to the dividend has arisen. Loans and other receivables are fi nancial assets where the related payments are fi xed or can be defi ned. They are valued at the periodisized acquisition cost using the eff ective interest method. Impairment is recorded through profi t and loss when there is reliable proof that the company cannot recover its receivables according to the original terms.

classifi cation depends on the purpose for which the fi nancial assets have been acquired, and they are classifi ed in connection with the original acquisition. All purchases and sales of fi nancial assets are recorded on the transaction day.

Interest income and expenses are recorded based on time by using the eff ective interest method and taking into account all contractual terms of the fi nancial instrument. Interests that have not been received on the closing date are recorded as interest income and receivable among accruals and the unpaid interests as interest expenses and liabilities among accrued expenses. The profi t distribution of the private equity fund investments made by eQ Plc is recorded among the net income from avail-Depreciation principles Tangible and intangible assets are entered in the balance sheet at acquisition cost less depreciation according to plan and impairment. The depreciation according to plan is calculated as straight-line depreciation based on the useful life of tangible and intangible assets. Depreciation has been calculated from the month the assets were taken into use. The depreciation period of intangible assets is 3 to 10 years

The available-for-sale fi nancial assets are valued at acquisition price. Later valuation is made at fair value. The unrealised value adjustments arising from valuation at fair value are included in the shareholders' equity under the fair value reserve. If available-for-sale fi nancial assets are sold or if their value has deceased permanently and signifi cantly, the profi t and loss is recorded in the income statement as net income from available-for-sale fi nancial assets. eQ Plc's private equity investments are classifi ed as available-for-sale fi nancial assets.

able-for-sale fi nancial assets. and that of machinery and equipment 4 to 10 years.

Foreign currency items

The receivables and debts in foreign currencies have been translated to euros according to the rate prevailing on the balance sheet day.

EUR 1 000	2015	2014	EUR 1 000	2015	2014
2 FEE AND COMMISSION INCOME			10 DEPRECIATION AND IMPAIRMENT
From other operations	77	77	Depreciation on tangible and intangible assets	-32	-34
3 INCOME FROM EQUITY INVESTMENTS			A depreciation specifi cation per balance sheet item is presented under intangible and tangible assets.
Dividend income from Group undertakings	890	2 456	11 OTHER OPERATING EXPENSES
4 INTEREST INCOME			Expert fees	-1	0
			Audit fees	-25	-42
Claims on credit institutions	-	0	Audit fees	-18	-27
Claims on the public and public sector entities	-	15	Tax consulting	0	-4
Other interest income	1	3	Other fees	-7	-11
TOTAL	1	17	Leases on premises and other rental expenses	-125	-109
			Other expenses	-189	-163
5 NET INCOME FROM AVAILABLE-FOR-SALE FINANCIAL ASSETS			TOTAL	-339	-315
Transfers of fi nancial assets	2 386	1 989	12 IMPAIRMENT LOSSES OF OTHER FINANCIAL ASSETS
Sales gains/losses	-16	-
Impairment	-428	-977	Group shares	-183	-696
TOTAL	1 942	1 012
			13 INCOME TAX
6 FEE AND COMMISSION EXPENSES
			Income tax for the period
Other fees – Management of investments eQ Asset Management	-300	-300	Income tax for operations	-1 519	-391
Limit fees	-12	-17	Deferred taxes	-1 148	-1 131
TOTAL	-312	-317	TOTAL	-2 667	-1 521
7 INTEREST EXPENSES			14 EXTRAORDINARY INCOME AND EXPENSES
To Group undertakings	-16	-32	Group contributions received	12 980	7 850
Other interest expenses	0	0
TOTAL	-16	-33	NOTES TO PARENT COMPANY BALANCE SHEET (FAS)
			15 CLAIMS ON CREDIT INSTITUTIONS
8 PERSONNEL EXPENSES				2015	2014
			Repayable on demand
Salaries and remuneration	-811	-822	From domestic credit institutions	6 513	6 986
Pension costs	-135	-136
Other indirect employee costs	-8	-19	16 CLAIMS ON THE PUBLIC AND PUBLIC SECTOR ENTITIES
TOTAL	-955	-977
			Other than repayable on demand
Average number of personnel during the period - permanent	6	7	Companies and housing companies	2	19
Change during the fi nancial period	-1	-1
9 OTHER ADMINISTRATIVE EXPENSES			17 SHARES AND PARTICIPATIONS
			Shares and participations
Other personnel expenses	-52	-52	Available-for-sale: Private equity investments	22 199	26 936
IT and connection costs	-59	-58	Available-for-sale: Units in mutual funds	4 998	3 517
Other administrative expenses	-183	-134	Other shares	32	25
TOTAL	-293	-244
			Shares and participations in Group undertakings	27 340	28 660
			TOTAL	54 569	59 139
			– of which at acquisition cost	27 372	28 685

EUR 1 000	2015	2014	EUR 1 000				2015	2014
18 INTANGIBLE AND TANGIBLE ASSETS			23 ACCRUALS
Other intangible assets			Other accruals				117	128
Acquisition cost on 1 Jan.	130	130
Increases	28	-
Acquisition cost on 31 Dec.	159	130	24 ITEMS DENOMINATED IN DOMESTIC AND FOREIGN CURRENCIES AND GROUP ITEMS
Accumulated depreciation on 1 Jan.	-113	-93						From Group
Depreciation for the period	-16	-20		EUR	Other than EUR		Total	undertakings
Accumulated depreciation on 31 Dec.	-128	-113	31 Dec. 2015
			Balance sheet items
Book value on 31 Dec.	30	18	Claims on credit institutions	6 513	-		6 513	-
			Claims on the public and public sector entities	2	-		2	-
Other tangible assets			Other assets	58 437	2 016		60 452	32 885
Acquisition cost on 1 Jan.	199	158	TOTAL	64 951	2 016		66 967	32 885
Increases	31	51
Decreases	-	-10	Liabilities to the public and public sector entities	700	-		700	700
Acquisition cost on 31 Dec.	230	199	Other liabilities	1 967	-		1 967	82
			TOTAL	2 667	-		2 667	782
Accumulated depreciation on 1 Jan.	-140	-136
Depreciation for the period	-17	-4
Accumulated depreciation on 31 Dec.	-157	-140						From Group
			31 Dec. 2014	EUR	Other than EUR		Total	undertakings
Book value on 31 Dec.	73	59
			Balance sheet items
19 OTHER ASSETS			Claims on credit institutions	6 986	-		6 986	-
			Claims on the public and public sector entities	19	-		19	-
Receivables from Group undertakings	5 546	8 288	Other assets	65 629	2 240		67 868	36 948
Other receivables	-	0	TOTAL	72 634	2 240		74 874	36 948
TOTAL	5 546	8 288
			Liabilities to the public and public sector entities	1 300	-		1 300	1 300
20 ACCRUALS AND PREPAID EXPENDITURE			Other liabilities	2 282	-		2 282	93
			TOTAL	3 582	-		3 582	1 393
Other accruals	30	109
TOTAL	30	109
			25 FAIR VALUES OF FINANCIAL ASSETS AND LIABILITIES
21 DEFERRED TAX ASSETS AND LIABILITIES					2015			2014
					Fair	Book	Fair	Book
Deferred tax assets					value	value	value	value
Changes in fair value	201	257	Financial assets
Deferred tax assets	201	257	Claims on credit institutions		6 513	6 513	6 986	6 986
			Claims on the public and public sector entities		2	2	19	19
Deferred tax liabilities			Shares and participations		27 229	27 229	30 478	30 478
Changes in fair value	454	571
Deferred tax liabilities	454	571	Shares and participations in Group undertakings		27 340	27 340	28 660	28 660
Deferred tax assets (-) / tax liabilities (+), net	253	314	TOTAL		61 083	61 083	66 144	66 144
			Financial liabilities
22 OTHER LIABILITIES			Liabilities to the public and public sector entities		700	700	1 300	1 300
			TOTAL		700	700	1 300	1 300
Accounts payable	28	91
Liabilities to Group undertakings	82	93	The table shows the fair values and book values of fi nancial assets and liabilities per balance sheet item.
Income tax liabilities	1 277	1 399	The assessment principles of fair values are presented in principles for preparing the fi nancial statements.
Other liabilities	10	0
TOTAL	1 397	1 583

26 VALUE OF FINANCIAL ASSETS ACROSS THE THREE LEVELS OF THE FAIR VALUE HIERARCHY

Level 3 - Reconciliation - Available-for-sale fi nancial assets

Level 3 - Reconciliation - Available-for-sale fi nancial assets

Level 1 comprises liquid assets the value of which is based on quotes in the liquid market. A market where the price is easily available on a regular basis is regarded as a liquid market.

The fair values of level 3 instruments are based on the value of the fund according to the management company of the fund and their use in widely used valuation models. Private equity investments are valued in accordance with a practice widely used in the sector, International Private Equity and Venture Capital Guidelines. The impairment losses of private equity investments are based on the management's assessment, as described in the principles for preparing the fi nancial statements.

31 Dec. 2015	Level 1	Level 3
Available-for-sale fi nancial assets
Private equity investments	-	22 199
Financial securities	5 030	-
TOTAL	5 030	22 199

	Private equity
	investments
Opening balance	26 936
Calls and returns	-4 326
Impairment loss	-428
Change in fair value	360
Sales	-343
Closing balance	22 199

31 Dec. 2014	Level 1	Level 3
Available-for-sale fi nancial assets
Private equity investments	-	26 936
Financial securities	3 542	-
TOTAL	3 542	26 936

EUR 1 000 27 EQUITY Share capital on 1 Jan. Share capital on 31 Dec. Fair value reserve on 1 Jan. Increases/decreases Fair value reserve on 31 Dec. Restricted equity, total Reserve for invested unrestricted equity on 1 Jan. Increases/decreases Reserve for invested unrestricted equity on 31 Dec.
Retained earnings
Retained earnings on 1 Jan.
Dividend
Annulment of own shares
Other changes
Retained earnings on 31 Dec.
Profi t (loss) for the period
Non-restricted equity, total
Equity on 31 Dec.
Calculation of distributable assets on 31 Dec.
Retained earnings
Profi t for the period
Reserve for invested unrestricted equity
Distributable assets
The share capital of the company consists of 36 727 198 shares. All shares carry one vote.

	Private equity
	investments
Opening balance	30 236
Calls and returns	-5 889
Impairment loss	-977
Change in fair value	3 567
Closing balance	26 936

Other notes

28 PLEDGES, MORTGAGES AND OBLIGATIONS (EUR 1 000)

Remaining investment commitments in private equity funds Lease and rental agreements less than one year Lease and rental agreements exceeding one year but less than fi ve years TOTAL

2015	2014
11 384	11 384
11 384	11 384
503	-2 349
272	2 852
775	503
12 159	11 887
51 093	50 312
-11 018	781
40 075	51 093
8 312	6 663
-7 345	-5 466
-	-161
6	-
973	1 036
11 093	7 275
52 140	59 405
64 299	71 291
973 11 093	1 036 7 275
40 075	51 093
52 140	59 405
2015	2014
10 281	10 914
746	735
2 168	2 837
13 194	14 486

		Share of
		shares
Major shareholders	Number of shares	and votes, %
Fennogens Investments S.A.	6 473 137	17.62%
Chilla Capital S.A.	5 322 635	14.49%
Ulkomarkkinat Oy	3 779 286	10.29%
Teamet Oy	3 700 000	10.07%
Mandatum Life Insurance Company	1 899 902	5.17%
Oy Hermitage Ab	1 658 882	4.52%
Oy Cevante Ab	1 419 063	3.86%
Fazer Jan	1 360 709	3.70%
Louko Antti Jaakko	747 918	2.04%
Linnalex Ab	681 652	1.86%
Lavventura Oy	550 000	1.50%
Viskari Jyri	550 000	1.50%
Pinomonte Ab	529 981	1.44%
Leenos Oy	400 000	1.09%
Liikesivistysrahaston Kannatusyhdistys R.Y.	276 800	0.75%
Leppä Jukka-Pekka	228 000	0.62%
Ab Kelonia Oy	205 500	0.56%
Procurator-Holding Oy	200 000	0.54%
Mononen Matti	180 000	0.49%
Johansson Ole Henrik	150 000	0.41%
Others	6 413 733	17.46%
TOTAL	36 727 198	100.00%

1.09%		Number of	Share of
0.75%	Shares no. per shareholder	shares	no. of shares, %
0.62%	1 – 100	66 647	0.18%
0.56%	101 – 500	430 362	1.17%
0.54%	501 – 1 000	507 645	1.38%
0.49%	1 001 – 5 000	1 456 302	3.97%
0.41%	5 001 –10 000	629 729	1.71%
17.46%	10 001 – 50 000	1 517 523	4.13%
100.00%	50 001 – 100 000	1 158 945	3.16%
	100 001 – 500 000	2 286 880	6.23%
	500 001 –	28 673 165	78.07%
Share of	TOTAL	36 727 198	100.00%

		shares
Ownership structure by sector on 31 Dec. 2015	Number of shares	and votes, %
Corporations	25 809 099	70.27%
Financial and insurance institutions	2 082 086	5.67%
Public sector entities	37	0.00%
Households	8 376 868	22.81%
Foreign	38 300	0.10%
Others 1)	420 808	1.15%
TOTAL	36 727 198	100.00%

Ownership structure according to number of shares held

		Share of
Shares no. per shareholder	No. ofshareholders	shareholders, %
1 – 100	1 468	33.12%
101 – 500	1 499	33.82%
501 – 1 000	625	14.10%
1 001 – 5 000	639	14.42%
5 001 –10 000	86	1.94%
10 001 – 50 000	75	1.69%
50 001 – 100 000	15	0.34%
100 001 – 500 000	12	0.27%
500 001 –	13	0.29%
TOTAL	4 432	100.00%

The information is based on the situation in the shareholders' register kept by Euroclear Finland Ltd on 31 December 2015.

Nominee-registered shares

Of the company shares, 145 589 were nominee-registered, representing 0.40% of the votes and shares.

1) The item Others comprises non-profi t organisations.

Shares and share capital

	Number of
Shares and share capital	shares	Share capital
1 Jan. 2015	36 727 198	11 383 873
Decreases	-	-
Increases	-	-
31 Dec.2015	36 727 198	11 383 873

Each share in eQ Plc carries one vote, and all shares have equal rights. The shares do not have a nominal value. All issued shares have been paid in full.

Own shares

eQ Plc held no own shares at the end of the fi nancial period on 31 December 2015.

Management ownership

Management ownership is specifi ed in the note on related parties.

Option schemes

eQ Plc's Board of Directors has decided to issue option rights to key employees of the eQ Group. The option rights are intended as part of the commitment scheme of key persons.

The option rights are valued at fair value on the date of their issue and entered as expense in the income statement during the period when the right arises. The fair value of the issued options on the day of issue has been defi ned by using the Black-Scholes option pricing model.

Share subscription price

Share subscription price

Number of issued options at the beginning of the period Options granted during the period Number of issued options at the end of the period

Exercised options by the end of the period Number of outstanding options

Exercisable options at the end of the period

Information used in the Black-Scholes model: Anticipated volatility Interest rate at the time of issue

	2010A	2010B	2010C	2010D	2010E	2010
Option scheme 2010	options	options	options	options	options	total
Number of options	400 000	400 000	400 000	400 000	400 000	2 000 000
Share subscription period begins	1 April 2012	1 April 2013	1 April 2014	1 April 2015	1 April 2016
Share subscription period ends	31 May 2020	31 May 2020	31 May 2020	31 May 2020	31 May 2020

	2015
Option scheme 2015	options
Number of options	2 000 000
Share subscription period begins	1 April 2019
Share subscription period ends	1 April 2021

	2015	2014
Number of issued options at the beginning of the period	1 700 000	1 700 000
Options granted during the period	-	-
Number of issued options at the end of the period	1 700 000	1 700 000
Exercised options by the end of the period	370 000	370 000
Number of outstanding options	1 330 000	1 330 000
Exercisable options at the end of the period	940 000	550 000

The original share subscription price with an option right is EUR 2.50.The subscription price of the share subscribed for with the option right will be reduced with the amount of the dividend and capital return that have been decided on before the share subscription on the record date of the distribution of divided or capital return. The subscription price on 31 December 2015 was EUR 1.61.

2015	2014
-	-
1 775 000	-
1 775 000	-
-	-
1 775 000	-
0	-

2014	2015
-	22%
-	0,77%

The original share subscription price with an option right is EUR 5.15. The subscription price of the share subscribed for with the option right will be reduced with the amount of the dividend and capital return that have been decided on before the share subscription on the record date of the been decided on before the share subscription on the record date of the 31 December 2015 was EUR 5.15. The distributable means of the parent company on 31 December 2015 totalled EUR 52.1 million. The sum consisted of retained earnings of EUR 12.1 million and the means in the reserve of invested unrestricted equity EUR 40.1 million.

The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.30 per share be paid out. The proposal corresponds to a dividend totalling EUR 11 018 159.40 calculated with the number of shares at the end of the fi nancial year. Additionally, the Board proposes to the AGM that a return of capital of EUR 0.20 per share be paid out from the reserve of invested unrestricted equity. The proposal corresponds to a return of capital totalling EUR 7 345 439.60 calculated with the number of shares at the end of the fi nancial year. The dividend and capital return shall be paid to those who are registered as shareholders in eQ Plc's shareholder register maintained by Euroclear Finland Ltd on the record date 1 April 2016. The Board proposes 8 April 2016 as the payment date of the dividend and return of capital.

After the end of the fi nancial period, no essential changes have taken place in the fi nancial position of the company. The Board of Directors feel that the proposed distribution of dividend and capital return does not endanger the liquidity of the company.

Helsinki, 10 February 2016

Georg Ehrnrooth Nicolas Berner Christina Dahlblom Chairman of the Board

Annika Poutiainen Jussi Seppälä Janne Larma CEO

AUDITOR'S NOTE

The auditors' report over the audit has been issued today.

Helsinki, 10 February 2016

KPMG Oy Ab Firm of Authorised Public Accountants

Raija-Leena Hankonen APA

SIGNATURES TO THE FINANCIAL STATEMENTS AND REPORT BY THE BOARD OF DIRECTORS

To the Annual General Meeting of eQ Plc

We have audited the accounting records, the fi nancial statements, the report of the Board of Directors, and the administration of eQ Plc for the fi nancial period 1.1.–31.12.2015. The fi nancial statements comprise the consolidated statement of fi nancial position, statement of comprehensive income, statement of changes in equity and statement of cash fl ow, and notes to the consolidated fi nancial statements, as well as the parent company's balance sheet, income statement, cash fl ow statement and notes to the fi nancial statements.

Responsibility of the Board of Directors and the Managing Director

The Board of Directors and the Managing Director are responsible for the preparation of consolidated the fi nancial statements that give a true and fair view in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU, as well as preparation of fi nancial statements and the report of the Board of Directors that give a true and fair view in accordance with laws and regulations governing the preparation of the fi nancial statements and the report of the Board of Directors in Finland. The Board of Directors is responsible for the appropriate arrangement of the control of the company's accounts and fi nances, and the Managing Director shall see to it that the accounts of the company are in compliance with the law and that its fi nancial aff airs have been arranged in a reliable manner.

Auditor's responsibility

Our responsibility is to express an opinion on the fi nancial statements, on the consolidated fi nancial statements and on the report of the Board of Directors based on our audit. The Auditing Act requires that we comply with requirements of professional ethics. We conducted our audit accordance with good auditing practice in Finland. Good auditing practice requires that we and plan and perform the audit to obtain reasonable assurance whether the fi nancial statements and the report of the Board of Directors are free from material misstatement and whether the members of the Board of Directors of the parent company and the Managing Directors are guilty of an act of negligence which may result in liability in damages towards the company or violated the Limited Liability Companies Act or the articles of association of the company.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fi nancial statements and the report of the Board of Directors. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation of fi nancial statements and the report of the Board of Directors that give true and fair view in order to design audit procedures that are appropriate in the circumstances,

In our opinion, the consolidated fi nancial statements give a true and fair view of the fi nancial position, fi nancial performance, and cash fl ows of the group in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU.

but not for purpose of expressing an opinion on the eff ectiveness of the company's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the fi nancial statements and the report of the Board of Directors. report of the Board of Directors in Finland. The information in the report of the Board of Directors is consistent with the information in the fi nancial statements. Other opinions

Opinion on the company's fi nancial statements and the report of the Board of Directors

In our opinion, the fi nancial statements and the report of the Board of Directors give a true and fair view of both the consolidated and the parent company's fi nancial performance and fi nancial position in accordance with the laws and regulations governing the preparation of the fi nancial statements and the

We believe that the audit evidence we have obtained is suffi cient and appropriate to provide a basis for our audit opinion. Opinion on the consolidated fi nancial statements We support that the fi nancial statements should be adopted. The proposal by the Board of Directors regarding the use of the result and other free equity shown in the balance sheet is in compliance with the Limited Liability Companies Act. We support that the Members of the Board of Directors of the parent company and the Managing Director should be discharged from liability for the fi nancial period audited by us.

Helsinki February 10, 2016 KPMG Oy Ab Authorized Public Accountant Firm

Raija-Leena Hankonen Authorized Public Accountant

Corporate Governance Statement 2015

This Corporate Governance Statement has been drawn up separately from the report by the Board of Directors. The Report by the Board of Directors is available on eQ Plc's website at www.eQ.fi . The statement is not part of the offi cial fi nancial statements.

General

In addition to acts and regulations applicable to listed companies, eQ Plc complies with the Finnish Corporate Governance Code published by the Securities Market Association in October 2015. The entire Code is available on the website of the Securities Market Association at www.cgfi nland.fi .

General Meeting of Shareholders

The General Meeting is eQ Plc's highest decision-making body, at which the shareholders participate in the supervision and control of the company. eQ Plc convenes one Annual General Meeting (AGM) during each fi nancial period. An Extraordinary General Meeting may be convened when necessary. Shareholders exercise their right to vote and voice their views at the General Meeting.

eQ Plc provides shareholders with suffi cient information about the agenda of the General Meeting in advance. The advance information is provided in the notice of the General Meeting, other releases and on the company website. The General Meeting is organised in such a way that shareholders can eff ectively exercise their ownership rights. The goal is that the CEO, Chairman of the Board, and a suffi cient number of directors attend the General Meeting. A person proposed as director for the fi rst time shall participate in the General Meeting that decides on his or her election, unless there are well-founded reasons for the absence.

The Annual General Meeting of eQ Plc was held on 25 March 2015.

Board of Directors

Composition of the Board

The General Meeting elects the directors. The director candidates put forward to the Board shall be mentioned in the notice of the

General Meeting, if the candidate is supported by shareholders holding at least 10 per cent of the total votes carried by all the shares of the company, provided that the candidate has given his or her consent to the election. The candidates proposed after the delivery of the notice of the meeting will be disclosed separately. In its Annual Report, the company states the number of Board meetings held during the fi nancial period as well as the average attendance of the directors. The directors are elected for one year at a time.

The company's Articles of Association do not contain any provisions on the manner of proposing prospective directors. eQ Plc's major shareholders, who as a rule represent at least one half of the number of shares and votes in the company, make a proposal on the number of directors, the directors and their remuneration to the AGM.

A person elected director must have the qualifi cations required by the work of a director and suffi cient time for taking care of the duties. The company facilitates the work of the Board by providing the directors with suffi cient information on the company's operations. eQ Plc's Board of Directors consists of 5 to 7 members. The Board of Directors elects the Chairman from among its members. The Board's aim is to promote the versatility of the Board's composition for its part. eQ's Board has defi ned a target regarding equal representation of genders on the Board. According to it, there should always be representatives of both genders among the directors. The Board aims at reaching this goal and maintaining it primarily by informing eQ Plc's owners actively about the goal. It is eQ Plc's AGM solely that ultimately elects the directors and makes preparations for the election.

The company reports the following biographic details and holdings of the directors: name, year of birth, education, main occupation, primary working experience, date of inception of Board membership, key positions of trust, and shareholdings in the company.

The members of eQ's Board of Directors shall provide the Board and the company with suffi cient information for the evaluation of their qualifi cations and independence and notify of any changes in such information.

The Annual General Meeting held on 25 March 2015 elected the following persons to the Board:

Georg Ehrnrooth, born 1966, member of the Board since 2011, Chairman of the Board, studies in agriculture and forestry Pöyry Oyj, member of the Board, 2010-; Norvestia Oyj, member of the Board 2010-; Forcit Oy, member of the Board, 2010-; Paavo Nurmi Foundation, member of the Board, 2005-; Anders Wall Foundation, member of the Board, 2008-; Louise and Göran Ehrnrooth Foundation, Chairman of the Board, 2013-; Semerca Investments S.A, Chairman of the Board, 2009-; Corbis S.A, Chairman of the Board, 2009-; Fennogens Investments S.A, Chairman of the Board, 2009-. Independent of the company, but not independent of its signifi cant shareholders.

Nicolas Berner, born 1972, member of the Board since 2013, Master of Laws

2011- Berner Ltd, Chief Administrative and Development Offi cer; Berner Ltd, member of the Board, 2006-; Nbe Holding Oy, member of the Board, 2006-.

Independent of the company and signifi cant shareholders.

Christina Dahlblom, born 1978, member of the Board since 2012, D.Sc. (Econ)

2011- Dahlblom & Sparks Ltd, founder and Managing Director; Nordman Invest Oy, member of the Board, 2012-; Oy Transmeri Ab, member of the Board, 2012-; Diamanten i Finland rf, member of the Board, 2012-; Stiftelsen Svenska Handelshögskolan, Chairman of the Board, 2015-; Miraculos Oy, member of the Board, 2014-; Svenska Folkpartiet i Finland Rp, member of the Board, 2015-.

Independent of the company and signifi cant shareholders.

Annika Poutiainen, born 1970, member of the Board since 2015, Master of Laws, LL.M. Hoist Finance Ab, member of the Board, 2014-; Saferoad AS,

member of the Board, 2015-.

Independent of the company and signifi cant shareholders.

Jussi Seppälä, born 1963, member of the Board since 2011, M.Sc. (Econ)

Oy Cardos Ab, member of the Board, 1999-; Deamia Oy, deputy member of the Board, 1999-; Luuva Oy, Chairman of the Board, 2015-.

Independent of the company and signifi cant shareholders.

Member of the Board	Security	Holding
Nicolas Berner	Share	40 000
Christina Dahlblom		0
Georg Ehrnrooth	Share	6 548 137
Annika Poutiainen	Nominee-registered share	1 100
Jussi Seppälä	Share	75 000

Operations of the Board of Directors

• eQ Plc's Board of Directors has drawn up a written charter covering its operations. Below is a list of the most important principles and duties presented in the charter. In order to
• carry out its duties, the Board of Directors:
• confi rms the company values and manners of operating and monitors their implementation
• confi rms the company's basic strategy and continuously monitors that it is up-to-date
• based on the strategy, approves the annual plan of operation and budget and supervises their outcome
• reviews and approves the interim reports, report by the Board of Directors and fi nancial statements
• defi nes the company's dividend policy and makes a proposal on dividend distribution to the AGM
• convenes General Meetings
• makes proposals to the General Meeting, when necessary
• decides on major investments, corporate acquisitions and divestments and on investments that exceed two million euros
• confi rms the organisation structure
• appoints and dismisses the CEO
• sets personal targets for the CEO annually and assesses their outcome
• appoints and dismisses the members of the Management Team, defi nes their areas of responsibility, and decides on the terms of their employment
• decides on the incentive schemes and annual bonuses of the CEO and the personnel
• goes through the major risks related to the company's operations and their management at least once a year

Shares and share-related rights of the Board members and entities that they control in eQ Plc at the end of the fi nancial period on 31 December 2015:

×.
	I I

and gives instructions on them to the CEO, when necessary • meets the auditors at least once a year

• convenes at least once a year without the executive management
• assesses its own operations at least once a year
• assesses the independence of its members
• confi rms its own charter, which is reviewed annually
• handles other matters that the Chairman of the Board or the CEO has proposed to the agenda of a Board meeting; the directors also have the right to put matters on the Board agenda by informing the Chairman of this

During the fi nancial period 2015, the Board of Directors of eQ Plc convened ten times, average attendance being 98%.

Attendance at the Board meetings 2015:

Ole Johansson 1/1
Nicolas Berner 10/10
Christina Dahlblom 9/10
Georg Ehrnrooth 10/10
Annika Poutiainen 9/9
Jussi Seppälä 10/10

The majority of the members of eQ Plc's Board of Directors are independent of the company and of the company's signifi cant shareholders. The Board of Directors assesses the independence of the directors and states on the company website which of the directors have been deemed independent. When evaluating independence, the circumstances of private individuals or legal entities regarded as related parties will be taken into consideration in all situations. Companies belonging to the same group as a company are comparable with that company.

Board Committees

eQ Plc does not have any Board committees.

CEO

The CEO is in charge of the day-to-day administration of the company in accordance with the rules and regulations of the Finnish Limited Liability Companies Act and instructions

and orders issued by the Board of Directors. The CEO may take measures that, considering the scope and nature of the operations of the company, are unusual or extensive with the authorisation of the Board. The CEO ensures that the accounting practices of the company comply with the law and that fi nances are organized in a reliable manner. eQ Plc's Board of Directors appoints the CEO.

Janne Larma, M.Sc. (Econ) (born 1965) was appointed CEO on 16 March 2011. The company discloses the same biographic details and information on the holdings of the CEO as of the directors. The CEO shall not be elected Chairman of the Board.

eQ Plc does not have substitute for the CEO.

Shares and share-related rights of the CEO and entities that he controls in eQ Plc at the end of the fi nancial period on 31 December 2015:

	Task in the
Name	organisation	Security	Holding
Janne	CEO	2010 A-D Option right	190 000
Larma		2010 E Option right 2015	90 000
		2015 Option right	100 000
		Share	5 322 635

Name	Task in the organisation	Security	Holding
Staff an Jåfs	Director, Private Equity,	2010 A-D Option right	100 000
	eQ Asset Management Ltd	2010 E Option right	50 000
		2015 Option right	100 000
		Share	18 089
Mikko Koskimies	CEO,	2010 A-D Option right	150 000
	eQ Asset Management Ltd	2010 E Option right	50 000
		2015 Option right	100 000
		Share	3 700 000
Lauri Lundström	Director, Group Administration, eQ Plc	Share	400 000
Antti Lyytikäinen	CFO, eQ Plc	2015 Option right	75 000
Juha Surve	Group General Counsel,	2015 Option right	75 000
	eQ Asset Management Ltd	Share	45 000

Other executives

eQ Group has a Management Team that convenes regularly every month. The status of the Management Team is not based on company law, but in practice it has a signifi cant role in the organisation of the company management. The Management Team consists of the persons heading the company's operative business, the CFO and Group General Counsel. The main duty of the Management Team is to assist the CEO.

eQ Group's Management Team during the fi nancial period 2015:

Janne Larma, born 1965, M.Sc. (Econ), Chairman, eQ Plc, CEO Staff an Jåfs, born 1974, M.Sc. (Econ), eQ Asset Management Ltd, Director, Private Equity

Mikko Koskimies, born 1967, M.Sc. (Econ), eQ Asset Management Ltd, CEO

Lauri Lundström, born 1962, M.Sc. (Econ), eQ Plc, Director, Group Administration

Antti Lyytikäinen, born 1981, M.Sc. (Econ), eQ Plc, CFO, from 5 November 2015

Juha Surve, born 1980, Master of Laws, M.Sc. (Econ), eQ Asset Management Ltd, Group General Counsel

Shares and share-related rights of the other executives and entities that they control in eQ Plc at the end of the fi nancial period on 31 December 2015:

Remuneration

Board authorisations regarding remuneration

• The AGM of 2015 authorised the Board of Directors to decide on a share issue or share issues and/or the issuance of special rights entitling to shares referred to in Chapter 10 Section 1 of the Limited Liability Companies Act, comprising a maximum total of 5 000 000 new shares to be used for the company's
• incentive schemes, for instance. The authorisation comprises the Board's right to decide on all matters related to the issuance of shares or option rights, including the recipients of the shares or option rights and the amount of the consideration to be paid. The authorisation also covers the right to issue shares
• and options to selected persons or without consideration.

Board of Directors

Remuneration and other fi nancial benefi ts of the Board of Directors

The General Meeting decides on the remuneration of the directors annually. eQ Plc's major shareholders, who as a rule represent at least one half of the number of shares and votes in the company, make a proposal on the number of directors, the directors and their remuneration to the AGM.

The AGM held in 2015 decided that the directors would receive remuneration according to following: Chairman of the Board EUR 3 300 per month (2014: EUR 3 300) and the directors EUR 1 800 per month (2014: EUR 1 800). The AGM also decided that the directors be paid EUR 300 for each Board meeting that they attend. Travel and lodging costs will be compensated in accordance with the company's expense policy. The remuneration is paid in cash. The members of eQ Plc's Board of Directors have no share-related rights, nor are they covered by any other remuneration scheme.

CEO and other executives

Decision-making process and main principles of remuneration eQ's Board of Directors decides annually on the remuneration system of the Group, as well as on the principles of performance-based remuneration and the persons included in the system. The Board of Directors also decides the remuneration of the CEO and, since the remuneration decisions are made by the concerned persons' superiors, the members of the Management Team, based on a proposal by the CEO. In certain special circumstances, the General Meetings of companies belonging to eQ Group may also handle matters pertaining to remuneration systems and remuneration. eQ Plc's Board reviews annually, in separately defi ned manner, that eQ Group has complied with the remuneration system. Based on the principle of proportionality, eQ has taken the view that it is not necessary to appoint a separate remuneration committee, taking into consideration the number of directors and eQ's personnel as well as the nature of eQ Group's operations. The Compliance Offi cer reviews annually that eQ Group has complied with the remuneration system defi ned by the Board and reports directly to eQ Plc's Board.

The main principles of eQ Group's remuneration systems are:

• The remuneration systems support eQ Group's long-term goals, such as improving the profi tability of the business in a long term, suffi cient capital adequacy, return on investments and cost effi ciency.
• Remuneration must be designed to prevent unsound risk-taking.
• The Board decides on the payment of the performance bonuses based on the systems. The decision will be made annually after the end of the incentive period.
• A performance bonus will not be paid and it may be recovered as unfounded, partly or in full, if it is found that the person concerned has acted contrary to eQ's internal

guidelines, laws, or regulations or guidelines issued by authorities.

• eQ may also refrain from paying out remuneration, if eQ Group's solvency, capital expenses or liquidity or their foreseeable future development do not make payment possible.
• The decision about remuneration is always made by the superior of the concerned person's superior.
• The share of the variable remuneration may basically not exceed 100% of the total fi xed salary of the recipient. If the General Meeting so expressly decides, the variable remuneration can amount to 200% of the total fi xed salary, however.
• eQ Group has decided that the maximum amount of the variable remuneration is EUR 500 000 per person annually.
• When paying out variable remuneration, the company shall take into consideration at least the risks that it is aware of when making the assessment, and future risks, eQ Group's capital expenditure and necessary liquidity. The total amount of the remuneration to be paid out may not be so large that it would restrict the consolidation of eQ Group's capital base.
• The remuneration of persons engaged in supervisory operations may not be directly dependent on the result of the business unit they supervise. The remuneration is, instead, infl uenced by the way they meet their personal goals and by their performance. The Board of Directors supervises the remuneration of the persons engaged in supervisory operations.
• As a rule, the Group does not undertake to pay any absolute remuneration. This is only possible, if eQ Plc's Board makes a decision about it for especially substantial reasons, and even in this case the absolute remuneration may only apply to the fi rst year of employment.

eQ's remuneration system consists of the annual bonus system.

All employees of eQ Group are in principle covered by the annual bonus system. The amount of the annual bonus is determined based on the achievement of personal goals and the result of the own business unit and eQ Group. The share of eQ Group's result is the higher, the more the person concerned is able to infl uence the result of the Group. As the variable remuneration payable by the company is dependent on the result of the Group, the amount of the annual bonus to be paid out depends on the Group's fi nancial situation and success. eQ's Board of Directors determines annually in advance on what basis annual bonuses will be paid and what their size is. In addition, the Board decides on the distribution of the annual bonuses after the incentive period has ended taking into consideration, e.g. the above presented main principles of remuneration.

If the variable remuneration of the CEO and the members of the Management Team as well as other relevant persons exceeds EUR 50 000 at annual level, 50 per cent of the variable remuneration will be deferred so that it is paid during the following three years (even payments each year). Of the deferred remuneration, 50 per cent is bound to the development of eQ Plc's share price. eQ Plc's Board shall decide on the interest possibly payable to the remaining part annually. If the variable remuneration does not exceed EUR 50 000 at annual level, payment shall not be deferred. As for the deferred part of the variable remuneration, the receiver of the remuneration must undertake not to hedge the risk related to the part of the remuneration that is bound to the development of eQ Plc's share price with, e.g. fi nancial instruments or insurance policies. Remuneration and other fi nancial benefi ts of the CEO Remuneration and other fi nancial benefi ts of the other executives The Board of Directors decides on the remuneration system of the Management Team based on the CEO's proposal. The remuneration system consists of a fi xed salary in cash (monthly salary and fringe benefi ts) and an annual performance bonus. Management Team members do not receive remuneration when acting as Board members in the subsidiaries of eQ Plc. The notice period of Management Team members varies between 1 and 3 months. In addition to eQ Plc's CEO, only the CEO of eQ Asset Management Ltd has the right to a severance pay corresponding to six (6) months' overall salary. The other members of the Management Team do not have severance pays decided on in advance. The retirement age and pension of the Management Team are determined in accordance with the Finnish Employees Pensions Act. The Management Team

The remuneration of the CEO consists of a fi xed monthly salary in cash (monthly salary and fringe benefi ts) and an annual performance bonus. It is important for the company that the salary of the CEO is competitive, as the commitment of the CEO and suffi cient incentives are central with regard to the company's

5

success. The Board of Directors decides on the CEO's remuneration. The retirement age and pension of the CEO are determined in accordance with the Finnish Employees Pensions Act. The CEO does not have a supplementary pension scheme.

In 2015, the CEO was paid an overall remuneration of EUR 300 062 (2014: EUR 233 727), the share of variable remuneration being EUR 92 456 (2014: EUR 22 178).In addition, the deferred variable remuneration of the COE in 2015 was EUR 102 477.

The Board of Directors appoints the CEO and decides on the CEO's salary, benefi ts and other terms related to the CEO's service. The terms of the CEO's service have been specifi ed in writing in the CEO's service contract approved by the Board. Both parties may give notice on this contract with a period of notice of two (2) months. When notice is given by the company for whatever reason or if the contract is terminated through mutual agreement by the company and the CEO, the CEO is entitled to a severance pay corresponding to his or her overall remuneration for six (6) months preceding the termination of the contract, which is paid on the day when the contract is terminated. members do not have supplementary pension schemes. In 2015, the other Management Team members than the CEO were paid an overall remuneration of EUR 622 475 (2014: EUR 546 932), the share of the variable remuneration being EUR 89 398 (2014: EUR 25 373). In addition, the deferred variable remuneration of the other members of the Management Team than the CEO in 2015 was EUR 67 950. Other relevant persons Other relevant persons (Finnish Act on Credit Institutions

610/2014, Chapter 8) than the Management Team members were paid an overall remuneration of EUR 272 333 (2014: EUR 266 203), the share of the variable remuneration being EUR 34 318 (2014: EUR 16 415).

Option schemes

Based on option schemes 2010 and 2015, eQ Group has issued option rights to key persons. The aim is long-term commitment to the company. In connection with the issue of option rights, the Board of Directors defi nes in the terms and conditions of each option scheme the principles that will be applied to their ownership. The terms and conditions of option schemes 2010 and 2015 contain no special terms related to ownership.

Option scheme 2010

Based on option scheme 2010, Janne Larma, CEO, has been granted, as part of the engagement system, 450 000 option rights (90 000 2010A options, 90 000 2010B options, 90 000 2010C options, 90 000 2010D options and 90 000 2010E options). Of these options, altogether 270 000 had been exercised by the end of 2015.

Mikko Koskimies, member of the Management Team, has been granted 200 000 option rights as part of the engagement system (50 000 2010B options, 50 000 2010C options, 50 000 2010D options and 50 000 2010E options) and Staff an Jåfs, member of the Management Team, 250 000 option rights (50 000 2010A options, 50 000 2010B options, 50 000 2010C options, 50 000 2010D options and 50 000 2010E options).

Option scheme 2015

Based on option scheme 2015, the CEO and other members of the Management Team have been granted option rights as part of the engagement system as follows:

	Task in the	Number
Name	organisation	of options
Janne Larma	CEO, eQ Plc	100 000
Staff an Jåfs	Director, Private Equity,	100 000
	eQ Asset Management Ltd
Mikko Koskimies	CEO,	100 000
	eQ Asset Management Ltd
Antti Lyytikäinen	CFO, eQ Plc	75 000
Juha Surve	Group General Counsel,	75 000
	eQ Asset Management Ltd

Description of the main features of the internal control and risk management systems

Control and risk management related to the fi nancial reporting process

The objective of the fi nancial reporting process is to produce timely fi nancial information and to ensure that decision-making is based on reliable information. The aim is to ensure that the fi nancial statements and interim reports are prepared according to applicable laws, generally accepted accounting principles and other requirements on listed companies.

The fi nancial reporting process produces eQ Group's monthly and quarterly reports. The Management Team of the Group reviews eQ Group's result and fi nancial performance monthly. The Group management presents the result and fi nancial position of the Group quarterly to the Board of Directors. The Board of Directors supervises that the fi nancial reporting process produces high-quality fi nancial information. The CEO is responsible for eQ Group's internal risk management.

The Group's subsidiaries report their results monthly to the parent company. The fi nancial administration of the Group takes care of the bookkeeping of the subsidiaries for the most part. At Group level, this will make it easier to ensure that the fi nancial reporting of the subsidiaries is reliable. The Group's interim reports and fi nancial statements are prepared in accordance with the IFRS reporting standards. The fi nancial administration of the Group monitors the changes that take place in IFRS standards.

Based on risk assessments, the company has developed measures for controlling the risks pertaining to fi nancial reporting, which make sure that fi nancial reporting is reliable. The companies use various reconciliations, checks and analytical measures, for instance. The fi nancial administration of the Group prepares monthly analyses of income statement and balance sheet items, both at company and segment level. In addition, tasks related to risk-exposed work combinations are separated, and there are appropriate approval procedures and internal guidelines. The reliability of fi nancial

reporting is also supported by various system controls in the reporting systems. Other basic principles of control are a clear division of responsibility and clear roles as well as regular reporting routines.

Risk management overview

The purpose of the Group's risk management is to make sure that the risks associated with the company's operations are identifi ed, assessed and that measures are taken regarding them. eQ Plc's Board supervises that the CEO takes care of eQ Plc's day-to-day administration according to the instructions and orders issued by the Board. The Board also supervises that risk management and control are organised in a proper manner. The executive management is responsible for the practical implementation of the risk management process and control.

eQ Group comprises a fully owned subsidiary of eQ Plc, eQ Asset Management Ltd, which is an investment fi rm. A permanent risk management function is responsible for risk management at eQ Asset Management Ltd. The risk management function which is independent of the other operations consists of risk experts and is led by the Chief Risk Offi cer. eQ Asset Management has a risk management committee, which the Chief Risk Offi cer convenes regularly. The risk management committee reviews the follow-up reports of risk management-related operations and decides on corrective measures, for instance. It also approves new products, changes made in products and counterparties.

Internal audit

The Group does not have a separate internal audit organisation. The CEO is responsible for the tasks of the internal audit function. The risk management and compliance functions of the Asset Management segment are responsible for the risk management related to the business and the compliance of the operations to rules and regulations. The Compliance Offi cer, who has been appointed by the management, carries out reviews comparable to internal audits of the business operations of eQ Asset Management Ltd, which is an investment fi rm. The Compliance Offi cer examines and assesses the appropriateness, suffi ciency and effi ciency of the company's

methods as well as internal control systems (including risk management) and arrangements, the effi cient and economical use of resources, and the reliability of the information used in management and decision-making. The risk management and compliance functions also carry out sample checks of the operations. The CEO may assign external evaluators to carry out audits on areas that the CEO deems necessary. The CEO reports the observations to the Board of Directors.

Insider administration

eQ Plc complies with the Guidelines for Insiders issued by NASDAQ Helsinki Ltd on 1 December 2015.

The company maintains an insider register on insiders with the duty to declare and on permanent company-specifi c insiders and, when necessary, on project-specifi c insiders. The register of insiders with the duty to declare, which is public, includes the members of the company's Board of Directors, CEO, Management Team, and the auditor with main responsibility. In addition, the personnel of fi nancial administration, risk management, legal and compliance and IT functions, and the secretary of the CEO are regarded as permanent company-specifi c insiders. The insider register is maintained by Euroclear Finland Ltd.

Those who are regarded as eQ Plc's insiders or those under guardianship of such insiders or corporations they control are not be permitted to trade in eQ Plc's shares on a short-term basis. Investments are regarded as short-term investments when the period between the purchase and transfer or the transfer and purchase of the security is less than one (1) month.

• Company insiders may not trade in securities issued by the company for 14 days prior to the publication of the company's interim report and fi nancial statements release. It is recommended that insiders schedule their trading, as far as possible, to periods during which the market has as complete information as possible on issues infl uencing the value of the share.
• The restriction on trading is applied to the company's permanent insiders, those under their guardianship and the organisations they control, as referred to in chapter 2, section 4

of the Securities Markets Act (746/2012). The restriction on trading does not apply to auditors, nor corporations in which insiders exercise signifi cant infl uence.

It is contrary to good practice and forbidden to circumvent the trading restriction by trading in shares on one's own behalf in the name of a related party or through other intermediaries, such as organisations in which the insider exercises signifi cant infl uence.

The company uses a project-specifi c insider register in measures or arrangements subject to confi dential preparation that deviate from the company's regular business activities due to their nature or size and, when published, would be likely to have a signifi cant eff ect on the value of the company's security subject to the trading on the Exchange or a security

related thereto. The company evaluates on a case-by-case basis whether an issue or arrangement under preparation is to be deemed a project. The purpose of the project-specifi c insider register is to clarify the moment at which a person is to be regarded as an insider and to make the processing of insider information more effi cient.

eQ Plc has informed its permanent insiders of the company's Guidelines for Insiders. The company has a designated person in charge of insider issues (Compliance Offi cer), who carries out tasks related to the management of insider issues, the training of insider issues, and the maintenance and supervision of the insider registers. The company regularly off ers training on insider matters to its new employees. The knowledge of other employees in insider matters is maintained and their need of training assessed continuously. The company

checks the information to be declared with the permanent insiders annually. In addition, the company checks at least once a year the trading of the permanent insiders based on the register information of Euroclear Finland Ltd.

Audit

The proposal for the election of an auditor prepared by the Board of Directors of the company will be disclosed in the notice of the General Meeting. If the Board has not arrived at a decision on the prospective auditor by the time the notice is sent, the candidacy will be disclosed separately.

In 2015, the company auditor was KPMG Oy Ab, a fi rm of authorized public accountants, with Raija-Leena Hankonen, APA, as auditor with main responsibility.

Auditors' fees

The independent auditors have been paid the following amounts for the services related to the audit and for other services: fees for the audit and closely related fees in 2015 totalled EUR 94 650 (2014: EUR 146 514). The other services in 2015 amounted to EUR 8 880 (2014: EUR 22 240).

Disclosure of information

The major issues concerning eQ Plc's administration are disclosed on the company website (www.eQ.fi ). The stock exchange releases are available on the company website immediately after their publication.

NICOLAS BERNER

Member of the Board since 2013 Born 1972

Education

LL.B, University of Helsinki

Primary working experience

2011- Berner Ltd, Chief Financial Offi cer, 1998-2011 Hannes Snellman Attorneys Ltd, as a partner 2006-2011

Positions of trust

Berner Ltd, Member of the Board.

Independent of the company and signifi cant shareholders.

CHRISTINA DAHLBLOM

Member of the Board since 2012 Born 1978

Education

M.Sc (Econ), Swedish School of Economics, Helsinki Business Coach

Primary working experience

2011- Dahlblom & Sparks Ltd, Founder and Mananging Directo, 2006–2011 Hanken & SSE Executive Education Ab, Managing Director, 2004–2006 TNS Gallup Ltd, Director,2001–2004 Svenska handelshögskolan, Researcher.

Positions of trust

Nordman Invest Oy, Member of the Board; Oy Transmeri Ab, Member of the Board; Diamanten I Finland rf, Member of the Board; Stiftelsen Svenska Handelshögskolan, Member of the Board;Miraculos Oy, Member of the Board; Svenska Folkpartiet i Finland Rp, Member of the Board. Independent of the company and signifi cant shareholders.

GEORG EHRNROOTH

Member of the Board since 2011 Chairman of the Board

Born 1966 Education

Studies in agriculture and forestry, Högre Svenska Läroverket, Åbo

Primary working experience

2005 eQ Corporation and eQ Bank Ltd, Chief Executive Offi cer

Positions of trust

Pöyry Oyj, member of the Board, 2010-; Norvestia Oyj, member of the Board 2010-; Forcit Oy, member of the Board, 2010-; Paavo Nurmi Foundation, member of the Board, 2005-; Anders Wall Foundation, member of the Board, 2008-; Louise and Göran Ehrnrooth Foundation, Chairman of the Board, 2013-; Semerca Investments S.A, Chairman of the Board, 2009-; Corbis S.A, Chairman of the Board, 2009-; Fennogens Investments S.A, Chairman of the Board, 2009-.

Independent of the company, but not independent of its signifi cant shareholders.

JUSSI SEPPÄLÄ

Member of the Board since 2011 Born 1963

Education

M.Sc. (Econ), Helsinki School of Economics

Primary working experience

Independent of the company and signifi cant shareholders.

2008-2013 Minerva Group, Managing Director of Minerva Partnership Oy, 1999-2008 FIM Group Oyj / Glitnir Oyj, 2008 Head of Equities, Moscow, 2006-2007 Marketing Director, 1999-2006 Managing director of FIM Fund Management Oy, 1996-1999 SEB, Fixed income sales, 1992-1995 JP Bank, Stockholm, Fixed income research and sales, 1988-1991 Entrepreneur, Software development for banking sector (interest rate risk management). Positions of trust Oy Cardos Ab, Member of the Board; Deamia Oy, Deputy Member of the Board; Luuva Oy, Chairman of the Board. 2014- JKL Group, Industrial Advisor; 2009-2014 NASDAQ OMX Stockholm, Head of Market Surveillance Nordics, 2006-2009 Swedish Financial Regulatory Authority, Head of Unit, 2000-2006 law fi rm Linklaters London, 1999 Hannes Snellman Attorneys Ltd Positions of trust Hoist Finance Ab, Member of the Board; Saferoad AS, Member of the Board. Independent of the company and signifi cant shareholders.

ANNIKA POUTIAINEN

Member of the Board since 2015 Born 1970

Education

LL.B, University of Helsinki LL.M., King's College, London

Primary working experience

JANNE LARMA

Chairman

Janne Larma, M.Sc. (Econ), (born 1965) is CEO of eQ Plc. Janne founded Advium Corporate Finance Ltd in 2000, prior to which he had gained more than ten years of experience within investment banking. In addition, he has experience in the asset management business, as Board member of the parent company of eQ Asset Management Group and as member of eQ Bank's management team from 2004 to 2009.

MIKKO KOSKIMIES

Mikko Koskimies M.Sc. (Econ), (born 1967) is CEO of eQ Asset Management Ltd. He previously worked as a Managing Director of Pohjola Asset Management Ltd and was a member of the Executive Committee of Pohjola Bank. Mikko Koskimies also worked from 1998 to 2005 as a Managing Director of Alfred Berg Asset Management Ltd. During the years from 1989 to 1997 he worked within the current Nordea Group. From 1993 to 1997 Mikko worked in Private Banking for Merita Bank Luxembourg S.A. in Luxembourg.

STAFFAN JÅFS

Staff an Jåfs, M.Sc. (Econ), (born 1974) is responsible for the private equity asset management and group's own private equity investment operations. Staff an has worked in the private equity business since 2000 and with eQ Plc since 2007. Previously in 2000-2007 he worked at Proventure Ltd as CFO, responsible for the group's fi nancial administration and previous to this as Financial Manager at Kantarellis, a hotel and restaurant chain.

ANTTI LYYTIKÄINEN

Antti Lyytikäinen, M.Sc. (Econ.), (born 1981) is CFO of eQ Group. Antti has worked among fi nancial sector since 2004 and with eQ Plc since 2011. From 2008 to 2011 he worked at Aberdeen Asset Management and was responsible for the fi nancial management of group's property funds. Prior to that he worked as an Auditor e.g. in the Financial Services -division of KPMG.

JUHA SURVE

Juha Surve, LL.M and M.Sc. (Econ.), (born 1980) is Group General Counsel of eQ Plc, and he also acts as a secretary of the Board of eQ Plc. Juha has worked among fi nancial sector and capital markets since 2003 and with eQ Plc since the beginning of year 2012. From 2008 to 2012 he worked at Castrén & Snellman Attorneys Ltd expertising in M&A transactions, capital markets and corporate law. Prior to that he gained over fi ve years' experience in various asset management related duties e.g. in OP-Pohjola Group and Nordea Bank. In addition, he has been involved in many law-drafting projects relating to Finnish securities market legislation.

Interim Reports of eQ will be published as follows in 2016:

January-March January-June January-September

Tuesday, May 3 Thursday, August 4 Thursday, November 3

Interim Reports, Stock Exchange Releases and the Annual Report are available and printable at eQ's website www.eQ.fi .

Financial Reports in 2016

eQ's own Fund of Funds

Q PE VII US L.P.
intage Year	2015
lanagement company	eQ PE VII US GP Ltd
otal size of the Fund	80,2 MUSD
Q's commitment	3,0 MUSD
nancing stage	Buyout
eographical focus	Northern America
dustry focus	No sector preference
ww pages	www.eQ.fi

age Year	2013
agement company	eQ PE VI North GP Ltd
I size of the Fund	100,0 MEUR
commitment	3.0 MEUR
ncing stage	Buvout
graphical focus	Northern Europe
stry focus	No sector preference
y nages	www.e0fi

'ar	2008
ent company	Amanda V East GP Ltd
of the Fund	50.0 MEUR
nitment	5.0 MEUR
stage	Buyout
cal focus	Russia, East Europe
CUS	No sector preference
9S	www.eQ.fi

Other Funds

Triton Fund II L.P.
Vintage Year	2006
Management company	Triton Advisers Limited
Total size of the Fund	1.126.0 MEUR
e0's commitment	5.0 MEUR
Financing stage	Midmarket
Geographical focus	Europe
Industry focus	Middle-sized companies
www pages	www.triton-partners.com

Permira Europe IV L.P.
Vintage Year	2006
Management company	Permira Advisers Limited
Total size of the Fund	9.411.2 MEUR
eQ's commitment	4.0 MEUR
Financing stage	Buyout
Geographical focus	Europe, USA and Asia
Industry focus	Large companies
www pages	www.permira.com

EQT V L.P.
Vintage Year	2006
Management company	EQT Partners
Total size of the Fund	4,250.0 MEUR
e0's commitment	5.0 MEUR
Financing stage	Large buyout
Geographical focus	Northern Europe
Industry focus	Middle-sized and large companies
www pages	www.eat.se

Gresham IV Fund L.P.
Vintage Year	2006
Management company	Gresham I I P
Total size of the Fund	346.7 MFUR
eQ's commitment	3.0 MFUR
Financing stage	Midmarket
Geographical focus	ŧК
Industry focus	Small and middle-sized companies
www pages	www.greshampe.com

Al Europe IV
ntage Year	2005
lanagement company	PAI Partners
otal size of the Fund	2,697.1 MEUR
הcommitment ב's commitment	5.0 MEUR
nancing stage	Buvout
eographical focus	Europe
dustry focus	Middle-sized and large companies
ww pages	www.paipartners.com

ntagu III L.P.
tage Year	2005
nagement company	Montagu Private Equity LLP
al size of the Fund	2,260.6 MEUR
s commitment	5.0 MEUR
ancing stage	Buyout
ographical focus	Europe
ustry focus	Middle-sized companies
w pages	www.montagu.com

EQT IV (No. 1) L.P.
Vintage Year	2004
Management company	EQT Partners
Total size of the Fund	2,500.0 MEUR
eQ's commitment	3.0 MEUR
Financing stage	Large buyout
Geographical focus	Northern Europe
ndustry focus	Middle-sized and large industrial com-
	panies
www pages	www.eqt.se

Permira Europe III L.P.
Vintage Year	2003
Management company	Permira Advisers Limited
Total size of the Fund	4,955.3 MEUR
eQ's commitment	3.0 MEUR
Financing stage	Buyout
Geographical focus	Europe
Industry focus	Middle-sized and large companies
www pages	www.permira.com

Gresham Fund III
'intage Year	2003
Aanagement company	Gresham LLP
otal size of the Fund	236.9 MGBP
:Q's commitment	2.0 MGBP
inancing stage	Midmarket
eographical focus	UΚ
ndustry focus	Small and middle-sized companies
vww pages	www.greshampe.com

Charterhouse Capital Partners VII L.P.
Vintage Year	2002
Management company	Charterhouse Development Capital Limited
Total size of the Fund	2,708.0 MEUR
eQ's commitment	3.0 MEUR
Financing stage	Buyout
Geographical focus	Europe
Industry focus	Middle-sized and large companies
www pages	www.charterhouse.co.uk

as venture vi L.P.
tage Year	2001
nagement company	Atlas Venture Advisors, Inc.
al size of the Fund	599.7 MUSD
s commitment	1.9 MUSD
ancing stage	Venture capital
ographical focus	Europe, U.S.
ustry focus	Information technology, life science
w pages	www.atlasventure.com

2000
Permira Advisers Limited
3,300.0 MEUR
4.2 MEUR
Buyout
Europe
Middle-sized and large companies
www.permira.com

CONTACT INFORMATION

eQ Plc eQ Asset Management Ltd eQ Fund Management Ltd

Aleksanterinkatu 19 A, 5th fl oor 00100 HELSINKI, FINLAND Tel. +358 9 6817 8777 www.eQ.fi fi rstname.surname@eQ.fi

Advium Corporate Finance Ltd

Aleksanterinkatu 19 A, 5th fl oor 00100 HELSINKI, FINLAND Tel. +358 9 6817 8900 www.advium.fi fi rstname.surname@advium.fi

eQ Plc

Aleksanterinkatu 19 A, 5th fl oor 00100 HELSINKI, FINLAND Tel. +358 9 6817 8777 asiakaspalvelu@eQ.fi www.eQ.fi