2024

FINANCIAL STATEMENTS RELEASE

eQ PLC

4 February 2025 at 8:00 AM

eQ Plc's financial statements release 2024 – eQ's operating profit EUR 34.5 million, proposed dividend EUR 0.66

January to December 2024 in brief

During the period under review, the Group's net revenue totalled EUR 65.6 million (EUR 70.9 million from 1 Jan. to 31 Dec. 2023). The Group's net fee and commission income was EUR 63.8 million (EUR 70.8 million).
The Group's operating profit fell by 13% to EUR 34.5 million (EUR 39.7 million).
The Group's profit was EUR 27.4 million (EUR 31.5 million).
The consolidated earnings per share were EUR 0.66 (EUR 0.78).
The net revenue of the Asset Management segment decreased by 13% to EUR 58.5 million (EUR 66.9 million) and the operating profit by 19% to EUR 33.7 million (EUR 41.4 million). The management fees of the Asset Management segment fell by 10% to EUR 55.6 million (EUR 62.0 million) and the performance fees fell by 35% to EUR 3.6 million (EUR 5.4 million). During the review period, the assets managed by eQ Asset Management grew by 4% to EUR 13.4 billion (EUR 12.9 billion on 31 Dec. 2023).
The net revenue of the Corporate Finance segment was EUR 5.3 million (EUR 3.9 million) and the operating profit was EUR 1.5 million (EUR 0.7 million).
The operating profit of the Investments segment was EUR 1.1 million (EUR -0.6 million).
The net cash flow from the Group's own private equity and real estate fund investment operations was EUR 0.8 million (EUR -0.1 million).
The proposed dividend is EUR 0.66 (EUR 0.80) per share.

October to December 2024 in brief

In the last quarter, the Group's net revenue totalled EUR 14.8 million (EUR 18.5 million from 1 Oct. to 31 Dec. 2023). The Group's net fee and commission income was EUR 14.0 million (EUR 19.3 million).
The Group's operating profit fell by 29% to EUR 6.9 million (EUR 9.8 million).
The Group's profit was EUR 5.5 million (EUR 7.8 million).
The consolidated earnings per share were EUR 0.13 (EUR 0.19).
In the final quarter the net revenue of the Asset Management segment decreased by 22% to EUR 13.0 million (EUR 16.6 million) and the operating profit by 29% to EUR 6.9 million (EUR 9.7 million). The decrease in operating profit in the final quarter of the year was affected by the write-down of one Private Equity fund's accrued performance fee (EUR 1.8 million).

Key ratios	1-12/24	1-12/23	Change	10-12/24	10-12/23	Change
Net revenue, Group, MEUR	65,6	70,9	-7 %	14,8	18,5	-20 %
Net revenue, Asset Management, MEUR	58,5	66,9	-13 %	13,0	16,6	-22 %
Net revenue, Corporate Finance, MEUR	5,3	3,9	34 %	1,0	2,7	-63%
Net revenue, Investments, MEUR	1,1	-0,6	287 %	0,6	-1,0	164 %
Net revenue, Group administration and eliminations
Net revenue, MEUR	0,8	0,6		0,1	0,2
Operating profit, Group, MEUR	34,5	39,7	-13 %	6,9	9,8	-29%
Operating profit, Asset Management, MEUR	33,7	41,4	-19 %	6,9	9,7	-29%
Operating profit, Corporate Finance, MEUR	1,5	0,7	125 %	0,0	1,6	-97 %
Operating profit, Investments, MEUR	1,1	-0,6	287 %	0,6	-1,0	164 %
Operating profit, Group administration, MEUR	-1,8	-1,7		-0,6	-0,5
Profit for the period, MEUR	27,4	31,5	-13 %	5,5	7,8	-29%
Key ratios	1-12/24	1-12/23	Change	10-12/24	10-12/23	Change
---	---	---	---	---	---	---
Earnings per share, EUR	0,66	0,78	-14 %	0,13	0,19	-30%
Proposed dividend per share, EUR	0,66	0,80	-18%
Equity per share, EUR	1,77	1,85	-4 %	1,77	1,85	-4 %
Cost/income ratio, Group, %	47,4	43,8	8 %	53,3	47,1	13 %
Liquid assets, MEUR	17,0	33,4	-49 %	17,0	33,4	-49 %
Private equity and real estate fund investments, MEUR	17,0	16,6	3 %	17,0	16,6	3 %
Interest-bearing loans, MEUR	0,0	0,0	0 %	0,0	0,0	0 %
Assets under management excluding reporting services, EUR billion	10,4	10,0	4 %	10,4	10,0	4 %
Assets under management, EUR billion	13,4	12,9	4 %	13,4	12,9	4 %

Acting CEO Janne Larma

The global economy has been rather sluggish during 2024, and economic growth in the euro area in particular has been modest. During the year, the European Central Bank cut its key interest and deposit rates four times, with the deposit rate standing at 3.0% at the end of the year. Europe's core inflation and inflation outlook have fallen, and the European economy is expected to recover rather slowly, leading markets to expect deposit rates to fall to around 2% in 2025. On the other hand, in the US, the economy is growing and performing well, and inflation is not expected to fall significantly. For these reasons, interest rates in the US are significantly higher than in Europe.

Policy easements made by central banks and economic growth in the US in particular set the stage for a strong stock market in 2024. The strong rise in the US (33%) boosted the indices tracking global developed markets (27%). The positive performance of emerging markets (15%) was boosted by the China's rise in the second half of the year. In Europe, stock price indices rose less (9%), and Nordic share prices fell slightly.

In the interest rate markets, returns were positive, both for short-term interest rates and long-term interest rates. High Yield Corporate Bonds were the best performers last year, returning over eight per cent.

eQ's result for the financial period fell

The net revenue of the Group during the period under review was EUR 65.6 million and the operating profit was EUR 34.5 million. Net revenue fell by 7% and operating profit by 13% from the previous year.

eQ Asset Management's profit fell, assets under management increased

During the period under review, the net revenue of the Asset Management segment fell by 13 per cent to EUR 58.5 million. The decrease in net revenue, EUR 8.4 million, is explained by real estate asset management's lower management fees compared to the previous year. In contrast, management fee income from both traditional and Private Equity asset management increased from last year, by 6% for traditional and 8% for Private Equity. During the review period, eQ Asset Management's operating profit fell by 19 per cent to EUR 33.7 million. In addition to the above-mentioned factors, the decrease in operating profit was affected by a write-down of EUR 1.8 million on the accrued performance fee of one Private Equity fund.

As for sales, the year 2024 was good in private equity asset management. In 2024, Private Equity funds were raised to the eQ PE XVI North fund investing in Northern Europe and the eQ PE SF V and eQ VC II funds. We raised over EUR 360 million in these three funds, which is an excellent result. For traditional asset management, assets under management increased by almost EUR 300 million, or 8%, compared to the end of 2023. In real estate asset management, the challenging market situation contributed to a decrease of over EUR 200 million in assets under management.

eQ focuses more and more on sustainability every year and it is a key part of our investment activities. We received excellent marks, including in the PRI assessment, where we outperformed our peer group and received full five stars in five sections. In addition, in the GRESB survey of the real estate sector, both our real estate funds performed better than both the overall respondents and the eQ peer group averages. eQ Community Properties even came out on top of its peer group.

eQ Asset Management usage rose in the 2024 SFR survey and 68% of the 100 or so largest institutional investors in Finland use eQ's services. In alternative investments - real estate and private equity in eQ's case - eQ was by far the most used asset manager. eQ's quality rating declined in 2024, which the study attributes primarily to weaker investment returns in the real estate segment. Our goal is to rise back to the forefront of quality.

The Financial Supervisory Authority (FIN-FSA) conducted an inspection of eQ Fund Management Company, and we received the inspection report last year. The FIN-FSA's job description includes conducting inspections at intervals and the inspection was part of FIN-FSA's normal operations. It had been more than ten years since eQ's previous inspection. The report raised observations that we have reviewed in good cooperation with FIN-FSA and all necessary actions have been implemented over the last year. I dare to say that inspections of this type are useful for both operations and for cooperation with authorities.

Advium's profit grew

Advium managed to increase its net revenue, despite a decrease in the number of mergers and acquisitions in Finland compared to the previous year and very low activity in the real estate market. During the period under review, Advium's net revenue totalled EUR 5.3 million (EUR 3.9 million). Operating profit was EUR 1.5 million (EUR 0.7 million).

During 2024, Advium acted as advisor in four published M&A transactions and one published real estate transaction. Two of these were public offers, when offers were made for Purmo Group and Innofactor. Advium also advised Aspo Plc on its minority investment in OP Infra Suomi and Forcit on its agreement to acquire part of Orica's Finnish and Swedish businesses.

Investment profit and cash flow increased

The operating profit of the Investments segment rose from last year and was EUR 1.1 million (EUR -0.6 million). Net cash flow was EUR 0.8 million (EUR -0.1 million). The balance sheet value of the private equity

and real estate fund investments at year end was EUR 17.0 million (EUR 16.6 million on 31 Dec. 2023). During the year, eQ Plc made a USD 1 million investment commitment in the eQ PE XVI fund.

Changes in eQ's management

Mikko Koskimies, CEO of eQ Plc and Managing Director of eQ Asset Management Ltd, left these positions at the end of October 2024 due to a serious illness. Koskimies passed away in November. Mikko was a valued colleague and a dear friend. We will all miss Mikko.

Tero Estovirta, deputy Managing Director of eQ Asset Management Ltd, was appointed Managing Director of eQ Asset Management Ltd and member of the eQ Group's management team at the end of October.

During the review period, Jacob af Forselles was appointed as the Managing Director of Advium Corporate Finance Ltd and as a member to eQ Group's Management Team. He started in his position at the beginning of August.

Outlook

The difficult market situation in the Finnish real estate market continued in 2024. Our assessment is that the real estate market levelled off towards the end of the year and that yield requirements generally stopped rising in the final quarter of the year. However, market liquidity remained at a very low level. The real estate market in general remains challenging. In several Finnish open-ended real estate funds, redemptions have not been completed on time and investors have had to wait for their money. Funds for redemption payments are mainly raised by selling properties and, as the transaction market remains quiet, redemption payments have had to be postponed. Lower interest rates and economic growth are having a positive impact on the real estate market. The market expects interest rates in Europe to continue to fall and the economy to gradually start to recover. If these estimates materialise, we expect 2025 to be a better year for the real estate market than 2024.

Due to the current situation, eQ's real estate fund management fees are expected to decrease in 2025 compared to the previous year.

Sales of eQ's Private Equity products has continued to be strong, and we believe that Finnish asset management clients will increase the Private Equity allocations in their portfolios in the coming years. We estimate that eQ's Private Equity fees will increase in 2025 compared to last year. The exit market for private equity funds was quieter than expected in 2024. As a result, the timing of Private Equity performance fees accruing to eQ has moved forward. Performance fees are expected to increase from 2026 onwards, with a number of private equity products expected to move into the performance fee phase.

In traditional asset management, we believe we have a good market position. The development of fees is largely dependent on market development.

eQ's financial statements release 1 Jan. to 31 Dec. 2024 is enclosed to this release and it is also available on the company website at www.eQ.fi.

eQ Plc

Additional information:

Janne Larma, acting CEO, tel. +358 9 6817 8920

Antti Lyytikäinen, CFO, tel. +358 9 6817 8741

Distribution: Nasdaq Helsinki, www.eQ.fi, media

eQ Group is a group of companies that concentrates on asset management and corporate finance business. eQ Asset Management offers a wide range of asset management services (including private equity funds and real estate asset management) for institutions and private individuals. The assets managed by the

Group total approximately EUR 13.4 billion. Advium Corporate Finance, which is part of the Group, offers services related to mergers and acquisitions, real estate transactions and equity capital markets. More information about the Group is available on our website www.eQ.fi.

eQ PLC'S FINANCIAL STATEMENTS RELEASE 1 JAN. TO 31 DEC.

Result of operations and financial position 1 Jan to 31 Dec 2024

During the period under review, the Group's net revenue totalled EUR 65.6 million (EUR 70.9 million from 1 Jan. to 31 Dec. 2023). The Group's net fee and commission income was EUR 63.8 million (EUR 70.8 million).
The Group's operating profit fell by 13% to EUR 34.5 million (EUR 39.7 million).
The Group's profit was EUR 27.4 million (EUR 31.5 million).
The consolidated earnings per share were EUR 0.66 (EUR 0.78).
The net revenue of the Asset Management segment decreased by 13% to EUR 58.5 million (EUR 66.9 million) and the operating profit by 19% to EUR 33.7 million (EUR 41.4 million). The management fees of the Asset Management segment fell by 10% to EUR 55.6 million (EUR 62.0 million) and the performance fees fell by 35% to EUR 3.6 million (EUR 5.4 million). During the review period, the assets managed by eQ Asset Management grew by 4% to EUR 13.4 billion (EUR 12.9 billion on 31 Dec. 2023).
The net revenue of the Corporate Finance segment was EUR 5.3 million (EUR 3.9 million) and the operating profit was EUR 1.5 million (EUR 0.7 million).
The operating profit of the Investments segment was EUR 1.1 million (EUR -0.6 million).
The net cash flow from the Group's own private equity and real estate fund investment operations was EUR 0.8 million (EUR -0.1 million).
The proposed dividend is EUR 0.66 (EUR 0.80) per share.

Result of operations and financial position 1 Oct to 31 Dec 2024

In the last quarter, the Group's net revenue totalled EUR 14.8 million (EUR 18.5 million from 1 Oct. to 31 Dec. 2023). The Group's net fee and commission income was EUR 14.0 million (EUR 19.3 million).
The Group's operating profit fell by 29% to EUR 6.9 million (EUR 9.8 million).
The Group's profit was EUR 5.5 million (EUR 7.8 million).
The consolidated earnings per share were EUR 0.13 (EUR 0.19).
In the final quarter the net revenue of the Asset Management segment decreased by 22% to EUR 13.0 million (EUR 16.6 million) and the operating profit by 29% to EUR 6.9 million (EUR 9.7 million). The decrease in operating profit in the final quarter of the year was affected by the write-down of one Private Equity fund's accrued performance fee (EUR 1.8 million).

Operating environment

At the beginning of 2024, there was optimism that inflation would slow down, and central banks would lower their key interest rates in the first quarter of the year. However, economic growth in the US in particular continued to be stronger than expected and expectations of lower interest rates were dispelled. As usual, growth in Europe was markedly weaker and growth forecasts were lowered. The European Central Bank (ECB) made its first interest rate cut of 0.25 percentage points in June.

The mood in the US changed in August, when US labour market data came in well below expectations. Panic took over the markets for a moment and, especially in the interest rate markets, very large interest rate cuts were priced in for a while. The US Federal Reserve (Fed) cut its interest rate by 0.5 percentage points in September and the ECB also cut its key interest rate by 0.25 percentage points. Quite soon, the market realised that expectations of interest rate cuts were overstated. US economic growth remained strong, and inflation remained a concern. Despite this, both the Fed and the ECB cut their policy rates twice more, by 0.25 percentage points in autumn 2024.

Trump's election as US President further strengthened growth expectations, while markets speculated on Trump's policies on foreign trade tariffs. China's economic growth remained within the central government's targets but required stimulus measures throughout the year. Especially after Trump's election, the dollar started to grow stronger against other major currencies.

2024 was an excellent year for equity returns, but regional differences were exceptionally large. The best return was achieved by US equities, which returned as much as 32.8% in euro terms (24.5% in dollars), while in Europe the return, measured by the MSCI Europe, was 8.6%, and the Finnish stock market returned 0.1% negative. In emerging stock markets, the return was 14.7%, but even in emerging markets, the differences between countries were very large.

Interest income was also clearly positive for the full year. The best return was achieved on euro-denominated High Yield bonds, which yielded 8.6% at index level. Euro-denominated corporate bonds from emerging countries returned 4.9%, while European investment grade bonds almost matched this, returning 4.7%. The yield on euro government bonds was 1.8%.

Major events during the financial period

eQ Plc's Annual General Meeting was held on 21 March 2024. Päivi Arminen, Nicolas Berner, Georg Ehrnrooth, Timo Kokkila, Janne Larma and Tomas von Rettig were re-elected to the Board. The decisions by the Annual General Meeting have been presented in a separate chapter below.

During the period under review, the number of eQ Plc's shares increased with new shares subscribed for with option rights. The number of shares increased by 125,000 shares on 27 February 2024, by 354,000 shares on 19 March 2024 and by 182,500 shares on 14 May 2024. After the changes, the number of eQ Plc shares was 41,407,198.

Jacob af Forselles was appointed as the Managing Director of Advium Corporate Finance Ltd and as a member to eQ Group's Management Team on 3 April 2024. He started in his position at the beginning of August.

Mikko Koskimies, CEO of eQ Plc and Managing Director of eQ Asset Management Ltd, left these positions of at the end of October 2024 due to a serious illness. Koskimies passed away in November. eQ Plc's Board of Directors decided that the company's full-time Chairman of the Board Janne Larma will become Acting CEO of eQ Plc and will chair the eQ Group's Management Team. Georg Ehrnrooth, Vice Chairman of eQ Plc's Board of Directors, will continue to serve as Chairman of eQ Plc's Board of Directors, and Janne Larma will continue as a member of the Board. Tero Estovirta, deputy Managing Director of eQ Asset Management Ltd, was appointed Managing Director of eQ Asset Management Ltd and the Board of Directors of eQ Plc also appointed him as a member of the eQ Group's Management Team.

Group net revenue and result development

During the period under review, the Group's net revenue totalled EUR 65.6 million (EUR 70.9 million from 1 Jan. to 31 Dec. 2023). The Group's net fee and commission income was EUR 63.8 million (EUR 70.8 million). The Group's net investment income from own investment operations was EUR 1.7 million (EUR -0.1 million), including the return from private equity and real estate fund investments and liquid fixed income funds.

The Group's expenses and depreciation totalled EUR 31.1 million (EUR 31.1 million). Personnel expenses were EUR 24.8 million (EUR 25.4 million), other administrative expenses EUR 2.9 million (EUR 2.5 million) and the other operating expenses were EUR 2.3 million (EUR 1.9 million). The salary expenses fell from the year before due to result-related remuneration. Depreciation was EUR 1.2 million (EUR 1.3 million).

The Group's operating profit was EUR 34.5 million (EUR 39.7 million) and the profit for the period was EUR 27.4 million (EUR 31.5 million).

Business areas

Asset Management

eQ Asset Management offers versatile and innovative asset management services to both institutions and individuals. The Asset Management segment consists of the investment firm eQ Asset Management Ltd and other Group companies engaged in asset management operations, the most important of which is eQ Fund Management Company Ltd.

Responsibility and sustainability are a key part of eQ Asset Management's investment activities and processes. eQ Asset Management once again achieved excellent results in the 2024 PRI (the UN Principles for Responsible Investment) assessment. eQ succeeded much better than the median in all six sections the company reported and obtained the highest star rating, five stars, for listed shares, corporate bonds, real estate investments and private equity investments. eQ provides its clients with comprehensive reports on the implementation of sustainability.

eQ Asset Management's utilisation rose in the 2024 SFR survey. The survey is conducted every year, and its participants are the 100 largest institutional investors in Finland. 68% of the survey participants use eQ services. In alternative investments, eQ is by far the most used asset manager. eQ's quality rating declined in 2024, which the study attributes primarily to weaker investment returns in the real estate segment. The differences in overall quality scores between the major operators are quite small.

Traditional asset management

At the end of the period, eQ had 23 traditional mutual funds registered in Finland.

eQ's fixed income funds posted good returns in 2024. The best returns came from the eQ High Yield and eQ Euro Investment Grade funds. Apart from eQ Government Bond, the returns of all of our fixed income funds surpassed the return of their comparison index. The best performing funds relative to their benchmark index were eQ Euro Investment Grade and eQ Emerging Markets Corporate Bond funds. eQ's best performing equity funds were eQ Frontier Markets, eQ Global and eQ Emerging Dividend funds. The best performing fund relative to its benchmark index during the year was the eQ Frontier fund. The eQ Finland fund received the 2024 Best Fund award from Morningstar. The winners were selected on the basis of returns for 1, 3 and 5 years and risks for 3 and 5 years. eQ was also successful at the LSGE Lipper Fund Awards in the Nordic countries. eQ Finland was the best fund over both 5 and 10 years, eQ Europe Dividend over 10 years and eQ Nordic Small Cap over 5 years in their respective categories.

Of the funds that eQ manages itself, during 2024 38 per cent gave a better return than its benchmark index, and the figure for the last three years was also 62. The average Morningstar rating of funds managed by eQ was 2.8 stars at the end of the quarter. The returns of the discretionary asset management portfolios that eQ manages varied between approximately +5.9 and +13.0 per cent during the period, based on the allocation of the investment portfolio. The return of portfolios that only invest in Finnish shares was +0.1%. The ESG ratings of the eQ funds are better than the average, and eQ's listed shares and corporate loans obtained the highest rating in the latest PRI assessment.

Real estate asset management

Net subscriptions in the eQ Commercial Properties fund were EUR -24 million during the period under review. At the end of the period, the size of the fund was EUR 561 million, and real estate property around EUR 1.0 billion. The return of the fund in 2024 period was -8.3 per cent and since establishment 4.2 per cent p.a. The fund has approximately 2,000 unit holders. eQ Fund Management Company Ltd postponed the payment of eQ Commercial Properties 30 June 2024 and 31 December 2024 redemptions in accordance with the Rules of the fund.

Net subscriptions in eQ Community Properties in the review period were EUR -22 million. At the end of the period, the size of the fund was EUR 1,132 million, and real estate property around EUR 1.8 billion. The return of the fund in 2024 period was 0.8 per cent and since establishment 6.2 per cent p.a. The fund has approximately 4,100 unit holders. eQ Fund Management Company Ltd postponed the payment of eQ Community Properties 31 December 2024 redemptions in accordance with the Rules of the fund.

During 2023 and 2024, eQ's real estate fund returns have been negatively affected by the rise in real estate yield expectations due to the strong rise in interest rates. As a rule, yield requirements did not rise in the final quarter of the year.

eQ Residential fund makes investments in the Helsinki metropolitan area, Tampere, and Turku. The fund targets complete residential buildings, the last of which was completed during the third quarter of 2024. During 2024, eQ Residential fund sold approximately 500 finished homes with two transactions to lower the fund's LTV level. This is why the assets managed by closed real estate funds fell by around EUR 100 million during the period. The last property in eQ Residential II was completed during the third quarter of 2024. Unlike eQ Community Properties and eQ Commercial Properties, eQ Residential funds are intended for professional investors only, and they have a closed-end fund structure.

In 2024, eQ's real estate funds participated in the GRESB sustainability assessment already for the sixth time. The results improved further in 2024 and exceed both the average results of companies participating in the GRESB assessment and the results of the funds' peers. The real estate funds also obtained the highest rating in the 2024 PRI assessment.

Overall, eQ's real estate funds had real estate property worth approximately EUR 3.1 billion at the end of 2024, and eQ has become one of the largest Finnish real estate investors.

Private Equity asset management

The first closing of the new eQ PE XVI North fund was held in early March 2024 at EUR 158 million and the final closing in December at EUR 227 million. eQ PE XVI North makes investments in private equity funds that invest in unlisted, small, and mid-sized growth companies in Northern Europe. Simultaneously we established our fifth private equity secondary fund, eQ PE SF V, and its first closing was at EUR 43 million and final closing in December at EUR 85 million. The secondary market investments of eQ PE XIV North are carried out through eQ PE SF V. The investment focus of eQ PE SF V is, both geographically and as for the size of companies, the same as that of eQ PE XIV North. Launched in October 2023 with an initial closing of USD 20 million, the eQ VC II Venture Capital fund grew to USD 54 million at the final closing in December 2024.

eQ's 2024 PRI results for private equity section were excellent. The investments received the highest rating.

At the end of the review period, the assets in Private Equity, Venture Capital and Private Credit funds managed by eQ totalled EUR 3,295 million (EUR 2,973 million) and the assets managed under Private Equity programme funds were EUR 1,019 million (EUR 1,009 million).

Assets under management

The assets managed by eQ Asset Management totalled EUR 13,399 million at the end of the period. Growth during the period was EUR 482 million (EUR 12,917 million on 31 Dec. 2023). The total assets under management of domestically registered traditional equity, fixed income and balanced funds, as well as asset management portfolios and partner funds, amounted to EUR 4 058 million (EUR 3 766 million) at the end of the review period. The assets managed by the real estate funds totalled EUR 2,036 million (EUR 2,251 million). Assets managed by the Private Equity, Venture Capital and Private Credit funds and Private Equity programme funds totalled EUR 4,314 million (EUR 3,982 million).

Assets under management, EUR million	12/24	12/23	Change
eQ mutual funds	3 848	3 843	0 %
of which eQ equity, fixed income and balanced funds	2 155	1 993	8 %
of which eQ real estate funds	1 693	1 850	-8 %
Closed-end real estate funds	344	401	-14 %
Asset management portfolios and funds of partners	1 903	1 773	7 %
Private Equity, Venture Capital and Private Credit funds	3 295	2 973	11 %
Private Equity programme funds	1 019	1 009	1 %
Total excl. reporting services	10 408	10 000	4 %
Private Equity reporting services	2 990	2 917	3 %
Total	13 399	12 917	4 %

Result of the Asset Management segment

During the review period, the net revenue of the Asset Management segment decreased by 13% to EUR 58.5 million (EUR 66.9 million from 1 Jan. to 31 Dec. 2023) and the operating profit by 19% to EUR 33.7 million (EUR 41.4 million). The management fees fell by 10% to EUR 55.6 million (EUR 62.0 million) and the performance fees fell by 35% to EUR 3.6 million (EUR 5.4 million). Performance fees typically fluctuate strongly per quarter and financial period.

eQ accrues the catch up share of private equity funds' performance fee in the income statement. The total amount of the catch up share accrued by the end of 2024 was EUR 15.4 million. The accrual recognised in the financial year 2024 was EUR 5.4 million. In addition, in the last quarter of the year, eQ recognised a EUR 1.8 million write-down related to the pre-2024 accrued performance fee of the eQ PE SF II fund. The final return on this fund is estimated to be below the hurdle rate of return required for a performance fee. The estimated total amount of future performance fees of private equity funds was approximately EUR 165 million at the end of 2024 (EUR 142 million on 31 Dec. 2023). More information about the estimated returns and performance fees of private equity funds is available in the tables of the financial statements release on page 31.

The cost/income ratio of Asset Management segment was 42.3% (37.9%). Calculated as full-time resources, the segment had 82 employees at the end of 2024.

Asset Management	1-12/24	1-12/23	Change	10-12/24	10-12/23	Change
Net revenue, MEUR	58,5	66,9	-13 %	13,0	16,6	-22 %
Operating profit, MEUR	33,7	41,4	-19 %	6,9	9,7	-29%
Cost/income ratio, %	42,3	37,9	12 %	47,3	41,5	14 %
Personnel as full-time resources	82	80	3%	82	80	3 %
Fee and commission income, Asset Management, MEUR	1-12/24	1-12/23	Change	10-12/24	10-12/23	Change
---	---	---	---	---	---	---
Management fees
Traditional asset management	9,4	8,8	6 %	2,3	2,2	4 %
Real estate asset management	27,3	35,6	-23 %	6,5	8,5	-24 %
Private Equity asset management	18,9	17,6	8 %	4,8	4,4	9 %
Management fees, total	55,6	62,0	-10 %	13,7	15,2	-10 %
Performance fees
Traditional asset management	0,0	0,0	-39%	-	0,0	n/a
Real estate asset management	-	-0,7	n/a	-	-	n/a
Private Equity asset management	3,5	6,1	-42%	-0,5	1,5	-132%
Performance fees, total	3,6	5,4	-35%	-0,5	1,5	-132%
Other fee and commission income	0,1	0,1	-34%	0,0	0,0	-39%
Fee and commission income, total	59,3	67,5	-12%	13,2	16,8	-21%

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.

In 2024, the value of mergers and acquisitions worldwide remained at the same level as in 2023, but below the long-term average. There were slightly fewer mergers and acquisitions in Finland in 2024 than in 2023. Real estate transactions in Finland remained very low during 2024, and even below the low level of the previous year. The main factors contributing to low activity in real estate transactions were persistently high interest rates and limited availability of finance.

During 2024, Advium acted as advisor in four published M&A transactions and one published real estate transaction: Advising Aspo Plc on its minority investment in OP Suomi Infra, advising the eQ Commercial Properties fund on the sale of the Bredis retail park, advising an acquiring consortium on the public offer for Purmo Group, advising Innofactor's Board on its public cash offer for the company and advising Forcit on its agreement to acquire part of Orica's Finnish and Swedish businesses.

Result of the Corporate Finance segment

During the period under review, Advium's net revenue totalled EUR 5.3 million (EUR 3.9 million 1 Jan. to 31 Dec. 2023). Operating profit was EUR 1.5 million (EUR 0.7 million). The segment had 17 employees at the end of the period.

It is typical of corporate finance business that success fees have a considerable impact on invoicing, due to which the result pf the segment varies considerably from quarter to quarter.

Corporate Finance	1-12/24	1-12/23	Change	10-12/24	10-12/23	Change
Net revenue, MEUR	5,3	3,9	34 %	1,0	2,7	-63%
Operating profit, MEUR	1,5	0,7	125 %	0,0	1,6	-97 %
Cost/income ratio, %	71,6	83,0	-14 %	96,0	42,8	124 %
Personnel as full-time resources	17	16	6 %	17	16	6 %

Investments

The business operations of the Investments segment consist of private equity and real estate fund investments made from eQ Group's own balance sheet.

During the period, the operating profit of the Investments segment was EUR 1.1 million (EUR -0.6 million 1 Jan. to 31 Dec. 2023). At the end of the period, the fair value of the investments was EUR 17.0 million (EUR 16.6 million on 31 Dec. 2023) and the amount of the remaining investment commitments was EUR 6.0 million (EUR 7.2 million). During the period under review, eQ Plc made a EUR 1.0 million investment commitment in the eQ PE XVI North fund.

During the period, the investment objects returned capital for EUR 1.2 million (EUR 1.4 million from 1 Jan. to 31 Dec. 2023) and distributed a profit of EUR 1.3 million (EUR 0.8 million). Capital calls totalled EUR 1.6 million (EUR 2.3 million). The net cash flow from investments during the period was EUR 0.8 million (EUR - 0.1 million). The value changes of investments recognised through profit or loss were EUR -0.0 million during the period (EUR -1.2 million).

The income of eQ's Investments segment is recognised due to factors independent of the company. Due to this, the segment's result may vary considerably.

Investments	1-12/24	1-12/23	Change	10-12/24	10-12/23	Change
Operating profit, MEUR	1,1	-0,6	287 %	0,6	-1,0	164 %
Fair value of investments, MEUR	17,0	16,6	3 %	17,0	16,6	3 %
Investment commitments, MEUR	6,0	7,2	-16 %	6,0	7,2	-16 %
Net cash flow of investments, MEUR	0,8	-0,1	649 %	0,1	-0,4	137 %

Balance sheet and capital adequacy

At the end of the period, the consolidated balance sheet total was EUR 95.1 million (EUR 100.3 million on 31 Dec. 2023). Equity at the end of the period was EUR 73.3 million (EUR 75.4 million). During the period, the shareholders' equity was influenced by the profit for the period of EUR 27.4 million, the dividend distribution of EUR -33.1 million, the subscription for new shares with option rights of EUR 2.6 million and the accrued expense of EUR 1.0 million related to an option scheme and entered in shareholders' equity. The changes are specified in detail in the tables attached to this release.

At the end of the period, liquid assets totalled EUR 8.0 million (EUR 22.9 million) and liquid investments in mutual funds EUR 9.0 million (EUR 10.5 million).

The lease liability related to premises and entered in the balance sheet was EUR 4.0 million (EUR 5.0 million) at the end of the period, the share of short-term liabilities being EUR 1.3 million (EUR 1.2 million).

Short-term interest-free debt was EUR 17.8 million (EUR 19.9 million). The Group had no interest-bearing loans at the end of the period (EUR - million). eQ's equity to assets ratio was 77.1 per cent (75.2 per cent).

The ratio between total capital and the capital requirement according to eQ Group's capital adequacy calculations was 295.6 per cent (252.8 per cent on 31 Dec. 2023). eQ Asset Management Ltd as the investment firm and eQ Plc as the holding company apply the IFD/IFR regime. The most restrictive capital requirement for eQ is defined on the basis of fixed overheads at the end of the period. The minimum capital requirement based on fixed overheads was EUR 5.7 million. At the end of the period, the Group's total capital based on capital adequacy calculations totalled EUR 16.7 million (EUR 13.6 million). Detailed information on the Group's capital adequacy can be found in the tables section.

Shares and share capital

At the end of the period on 31 December 2024, the number of eQ Plc's shares was 41,407,198 and the share capital was EUR 11,383,873.00.

During the period under review, the number of eQ Plc's shares increased by new shares subscribed for with option rights 2018. The number of shares increased by 125,000 shares on 27 February 2024, by 354,000 shares on 19 March 2024 and by 182,500 shares on 14 May 2024. The subscription price of the new shares totalled EUR 2,586,230.00. The entire subscription was entered in the reserve for invested unrestricted equity.

The closing price of eQ Plc's share on 31 December 2024 was EUR 12.95 (EUR 15.58 on 31 Dec. 2023). The market capitalisation of the company was thus EUR 536.2 million (EUR 634.8 million) at the end of the period. During the review period, 929,522 shares were traded on Nasdaq Helsinki (1,113,557 shares from 1 Jan. to 31 Dec. 2023). In euros, the turnover was EUR 12.8 million (EUR 21.2 million).

Own shares

On 31 December 2024, eQ Plc held no own shares.

Shareholders

Ten major shareholders on 31 December 2024

	Shares	Share, %
1 Fennogens Investments S.A.	8 087 605	19,53
2 Rettig Oy Ab	6 331 706	15,29
3 Chilla Capital S.A.	6 215 904	15,01
4 Teamet Oy	4 250 000	10,26
5 Oy Cevante Ab	1 419 063	3,43
6 Fazer Jan	1 314 185	3,17
7 Procurator-Holding Oy	793 892	1,92
8 Lavventura Oy	700 000	1,69
9 Ilmarinen Mutual Pension Insurance Company	697 500	1,68
10 Linnalex Ab	631 652	1,53
10 major shareholders, total	30 441 507	73,52
Nominee registered	354 866	0,86
Other shares	10 610 825	25,63
Total	41 407 198	100,00

On 31 Dec. 2024, eQ Plc had 8,073 shareholders (8,376 shareholders on 31 Dec. 2023).

Option schemes

At the end of the period, eQ Plc had one valid option scheme - option scheme 2022. The option scheme is intended as part of the commitment system of the Group's key personnel.

The 2018 option scheme that was valid at the beginning of the year ended during the period, and all outstanding options of the 2018 option scheme were exercised as a result of the share subscriptions made.

Option scheme 2022

At the end of the period, altogether 830,000 options had been allocated from option scheme 2022. During the review period, 80,000 options were returned to eQ Plc due to end of employment relationships. The subscription period of shares with option rights 2022 will begin on 1 April 2025 and end on 30 April 2027.

The terms and conditions of the option scheme have been published in a stock exchange release of 4 February 2022, and they can be found in their entirety on the company website at www.eQ.fi.

Decisions by the Annual General Meeting

eQ Plc's Annual General Meeting (AGM), held on 21 March 2024 in Helsinki, decided upon the following:

Confirmation of the financial statements

eQ Plc's AGM confirmed the financial statements of the company, which included the consolidated financial statements, the report by the Board of Directors, and the auditors' report for the financial year 2023.

Disposal of the profit shown on the balance sheet and decision on the distribution of dividend

The AGM confirmed the proposal by the Board of Directors that a dividend of EUR 0.80 per share be paid. The dividend is paid to shareholders in two instalments. The first instalment, EUR 0.40 per share, was paid

to those who were registered as shareholders in the company's shareholder register maintained by Euroclear Finland Ltd on the record date 25 March 2024. The payment date of the dividend and equity repayment was 3 April 2024. It was decided that the second instalment, EUR 0.40 per share, will be paid in October 2024 to those who are registered as shareholders in the company's shareholder register maintained by Euroclear Finland Ltd on the record date. eQ Plc's Board of Directors decided the record date and payment date of the second instalment of the dividend payment at its meeting in September 2024. The record date was 25 September 2024, and the dividend payment date was 2 October 2024.

Discharge from liability to the Board of Directors and the CEO

The AGM decided to grant discharge from liability to the Board of Directors and the CEO.

Remuneration Report for Governing Bodies

The AGM confirmed the Remuneration Report for Governing Bodies.

Number of directors, appointment of directors, and the remuneration of directors

The AGM decided that the directors would receive remuneration as follows: Chair of the Board will receive EUR 5,000, Deputy Chair EUR 4,000 and the other directors EUR 3,000 per month. The Directors will also be paid EUR 750 for each Board meeting that they attend. Travel and lodging costs will be compensated in accordance with the company's expense policy.

According to the decision of the AGM, six members shall be elected to eQ Plc's Board of Directors. Päivi Arminen, Nicholas Berner, Georg Ehrnrooth, Timo Kokkila, Janne Larma and Tomas von Rettig were re-elected for a term of office that will end at the close of the next Annual General Meeting. At its constituent meeting immediately after the Annual General Meeting, the Board elected Janne Larma Chair of the Board and George Ehrnrooth Deputy Chair of the Board.

Auditors and auditors' compensation

The AGM decided to elect the corporation of authorised public accountants KPMG Oy Ab auditor of the company. The auditor with main responsibility appointed by the company is Tuomas Ilveskoski, APA. It was decided to compensate the auditor according to an invoice approved by eQ Plc.

Authorising the Board of Directors to decide on the issuance of shares as well as the issuance of special rights entitling to shares

The AGM authorised the Board of Directors to decide on a share issue and/or the issuance of special rights entitling to shares referred to in Chapter 10 Section 1 of the Limited Liability Companies Act, in one or several transactions, comprising a maximum total of 3,500,000 new shares. The amount of the authorisation corresponded to approximately 8.59 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 finance or carry out potential acquisitions or other business transactions, to strengthen the balance sheet and the financial 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 effective until the next AGM, no longer than 18 months, however.

Personnel and organisation

The Group had 104 employees at the end of the period (101 employees on 31 Dec. 2023), calculated as full-time resources. Calculated as full-time resources, the Asset Management segment had 82 (80) employees and the Corporate Finance segment 17 (16) employees. Group administration had 5 (5) employees.

The overall salaries paid to the employees of eQ Group during the period totalled EUR 24.8 million (EUR 25.4 million from 1 Jan. to 31 Dec. 2023). The salary expenses fell from the year before due to result-related remuneration.

Major risks and short-term uncertainties

The Group's major single risk is the dependence of the result 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 dependent of the development of the capital market, for instance. On the other hand, the management fees of private equity funds and closed real estate funds are based on long-term agreements that produce a stable cash flow. The realisation of the performance fee income that is dependent on the success of the investment operations also influences result development. The performance fees of the asset management operations may consist of performance fees paid by mutual funds and real estate funds, profit shares that private equity funds pay to the management company, and performance fees from asset management portfolios. Performance fees may vary considerably by quarter and financial period.

Success fees, which depend on the number of mergers and acquisitions and real estate transactions and the execution of 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 related to the operations of eQ Group's Investments segment are the market risk and currency risk, for instance. Of said risks, the market risk has the greater impact on investments. The company's own investments are well diversified, which means that the impact of one investment made by one individual fund in one single investment object on the return is often small. The income from eQ Group's Investment segment is recognised in different quarters due to factors independent of the company, depending on the exits and value changes of the funds. The income from investment operations and changes in value may vary considerably from quarter to quarter and financial period.

Proposal for the distribution of profit

The distributable means of the parent company on 31 December 2024 totalled EUR 57,409,143.02. The sum consisted of retained earnings of EUR 31,984,573.28 and the means in the reserve of invested unrestricted equity of EUR 25,424,569.74.

The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.66 per share be paid out. The proposal corresponds to a dividend totalling EUR 27,328,750.68 calculated with the number of shares at the close of the financial period. The dividend is paid in two instalments.

The first instalment, EUR 0.33 per share, is paid to those who are registered as shareholders in the company's shareholder register maintained by Euroclear Finland Ltd on the record date 27 March 2025. The Board proposes that the first instalment of the dividend be paid out on 3 April 2025.

The second instalment, EUR 0.33 per share, is paid in October 2025. The second instalment is paid to those who are registered as shareholders in the company's shareholder register maintained by Euroclear Finland Ltd on the record date. The Board of Directors will decide the record date and payment date of the second instalment of the dividend payment at its meeting in September 2025. The planned record date is 7 October 2025 and the dividend payment date 14 October 2025.

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

Events after the end of the financial year

eQ Plc's shareholders with more than 60 per cent of the company shares and votes have made a proposal to the Annual General Meeting to be held on 25 March 2025 regarding the number of directors, their remuneration and the principles for compensation expenses as well as the election of the directors. The shareholders propose that Päivi Arminen, Nicolas Berner, Georg Ehrnrooth, Janne Larma and Tomas von Rettig be re-elected and Caroline Bertlin elected as a new member to the Board of Directors for a term of office ending at the close of the next Annual General Meeting.

At the end of January 2025, the first closing of the eQ PE XVII US capital fund of USD 115 million took place. eQ Plc made an investment commitment of USD 1.0 million to the fund.

Outlook

Due to the current situation, eQ's real estate fund management fees are expected to decrease in 2025 compared to the previous year.

In traditional asset management, we believe we have a good market position. The development of fees is largely dependent on market development.

eQ Plc
Board of Directors

TABLES

Principles for drawing up the report

The financial statements release has been prepared in accordance with IFRS standards and the IAS 34 Interim Reports standard, approved by the EU. The company has adopted certain new or revised IFRS standards and IFRIC interpretations from the beginning of the financial year. However, the introduction of these new and revised standards has not had a material impact on the reported figures. In all other respects, the same accounting principles have been applied as in the 2023 financial statements. The calculation principles and formulas for the indicators remain unchanged and are presented in the 2023 financial statements.

The income of eQ Group's Investments segment is recognised due to factors independent of the company. As a result, the net income from financial assets may vary considerably.

The financial statements presented in this release are based on the audited financial statements of the company. Auditors' report has been given on 3 February 2025.

CONSOLIDATED INCOME STATEMENT, EUR 1 000

	1-12/24	1-12/23	10-12/24	10-12/23
Fee and commission income	64 449	71 361	14 201	19 470
Interest income	337	275	35	92
Net income from financial assets	1 708	-52	750	-822
Operating income, total	66 494	71 584	14 987	18 740
Fee and commission expenses	-618	-546	-161	-137
Interest expenses	-227	-185	-52	-57
NET REVENUE	65 649	70 853	14 774	18 547
Administrative expenses
Personnel expenses	-24 762	-25 415	-6 081	-7 134
Other administrative expenses	-2 863	-2 532	-887	-749
Depreciation on tangible and intangible assets	-1 153	-1 272	-301	-318
Other operating expenses	-2 336	-1 885	-599	-558
OPERATING PROFIT (LOSS)	34 535	39 749	6 907	9 787
PROFIT BEFORE TAXES	34 535	39 749	6 907	9 787
Income taxes	-7 131	-8 225	-1 415	-2 019
PROFIT (LOSS) FOR THE FINANCIAL PERIOD	27 405	31 524	5 492	7 768

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	1-12/24	1-12/23	10-12/24	10-12/23
Other comprehensive income:	-	-	-	-
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	27 405	31 524	5 492	7 768

Profit for the period attributable to:
Equity holders of the parent company	27 405	31 524	5 492	7 768
Non-controlling interests	-	-	-	-
Comprehensive income for the period attributable to:
Equity holders of the parent company	27 405	31 524	5 492	7 768
Non-controlling interests	-	-	-	-
Earnings per share calculated from the profit of equity holders of the parent company:
Earnings per average share, EUR	0,66	0,78	0,13	0,19
Diluted earnings per average share, EUR	0,65	0,75	0,13	0,18

CONSOLIDATED BALANCE SHEET, EUR 1 000

	31 Dec. 2024	31 Dec. 2023
ASSETS
Liquid assets	109	70
Claims on credit institutions	7 874	22 841
Financial assets
Financial securities	9 026	10 555
Private equity and real estate fund investments	16 971	16 556
Intangible assets
Goodwill and brands	29 212	29 212
Client agreements	-	8
Other intangible assets	5	30
Tangible assets
Right-of-use assets	3 250	4 215
Tangible assets	389	425
Other assets	27 537	15 657
Accruals and prepaid expenditure	549	414
Income tax receivables	7	133
Deferred tax assets	143	153
TOTAL ASSETS	95 071	100 270
LIABILITIES AND EQUITY
LIABILITIES
Other liabilities	6 826	6 933
Accruals and deferred income	10 923	12 871
Lease liabilities	3 963	4 980
Income tax liabilities	30	49
TOTAL LIABILITIES	21 742	24 834
EQUITY
Attributable to equity holders of the parent company:
Share capital	11 384	11 384
Reserve for invested unrestricted equity	27 279	24 693
Retained earnings	7 262	7 836
Profit (loss) for the period	27 405	31 524
TOTAL EQUITY	73 330	75 436
TOTAL LIABILITIES AND EQUITY	95 071	100 270

CONSOLIDATED CASH FLOW STATEMENT, EUR 1 000

	1-12/2024	1-12/2023
CASH FLOW FROM OPERATIONS
Operating profit	34 535	39 749
Depreciation and write-downs	1 153	1 272
Interest income and expenses	-110	-90
Transactions with no related payment transactions	637	2 312
Financial assets' cash flow – private equity and real estate fund investments	-444	-940
Change in working capital
Business receivables, increase (-) / decrease (+)	-11 882	-1 113
Interest-free debt, increase (+) / decrease (-)	-2 105	-3 654
Total change in working capital	-13 987	-4 767
Cash flow from operations before financial items and taxes	21 784	37 536
Interests received	337	275
Interests paid	-227	-185
Taxes	-7 097	-8 392
CASH FLOW FROM OPERATIONS	14 797	29 234
CASH FLOW FROM INVESTMENTS
Investments in tangible and intangible assets	-110	-52
Investments/redemptions in other investments – liquid mutual funds	1 876	9 766
CASH FLOW FROM INVESTMENTS	1 765	9 713
CASH FLOW FROM FINANCING
Dividends/equity repayments paid	-33 052	-40 430
Subscription of new shares	2 586	1 270
Deduction of lease liability capital	-1 025	-565
CASH FLOW FROM FINANCING	-31 491	-39 725
INCREASE/DECREASE IN LIQUID ASSETS	-14 929	-777
Liquid assets on 1 Jan.	22 911	23 688
Liquid assets on 31 Dec.	7 982	22 911

CHANGE IN CONSOLIDATED SHAREHOLDERS' EQUITY, EUR 1 000

	Equity attributable to equity holders of the parent company				Total equity
	Share capital	Reserve for invested unrestricted equity	Retained earnings	Total
Shareholders' equity on 1 Jan. 2023	11 384	27 061	43 334	81 779	81 779
Profit (loss) for the period			31 524	31 524	31 524
Other comprehensive income items
Financial assets			-	-	-
Total comprehensive income			31 524	31 524	31 524
Dividend/equity repayment		-3 639	-36 791	-40 430	-40 430
Subscription of shares		1 270		1 270	1 270
Options granted, cost accrual			1 293	1 293	1 293
Shareholders' equity on 31 Dec. 2023	11 384	24 693	39 359	75 436	75 436
Shareholders' equity on 1 Jan. 2024	11 384	24 693	39 359	75 436	75 436
---	---	---	---	---	---
Profit (loss) for the period			27 405	27 405	27 405
Other comprehensive income items
Financial assets			-	-	-
Total comprehensive income			27 405	27 405	27 405
Dividend/equity repayment			-33 053	-33 053	-33 053
Subscription of shares		2 586		2 586	2 586
Options granted, cost accrual			956	956	956
Shareholders' equity on 31 Dec. 2024	11 384	27 279	34 667	73 330	73 330

FEE AND COMMISSION INCOME, GROUP, EUR 1 000

	1-12/24	1-12/23	10-12/24	10-12/23
Asset management fees
Management fees
Traditional asset management	9 399	8 836	2 344	2 244
Real estate asset management	27 319	35 583	6 521	8 542
Private Equity asset management	18 782	17 421	4 788	4 396
Management fees, total	55 500	61 840	13 653	15 183
Performance fees
Traditional asset management	7	12	-	7
Real estate asset management	-	-722	-	0
Private Equity asset management	3 549	6 148	-491	1 520
Performance fees, total	3 556	5 439	-491	1 527
Other fee and commission income	79	119	20	33
Asset management fees, total	59 135	67 397	13 181	16 743
Corporate Finance fees	5 313	3 963	1 020	2 728
Fee and commission income, total	64 449	71 361	14 201	19 470
	1-12/24	1-12/23	10-12/24	10-12/23
---	---	---	---	---
Private Equity asset management performance fees - specification
Paid non-accrued fees	1	150	-	20
Catch up share accrual	5 386	5 998	1 347	1 499
Write-downs	-1 838	-	-1 838	-
Total	3 549	6 148	-491	1 520

NET INCOME FROM FINANCIAL ASSETS, GROUP, EUR 1 000

	1-12/24	1-12/23	10-12/24	10-12/23
Private equity and real estate fund investments
Profit distribution from funds	1 266	790	599	213
Changes in fair value and losses	-29	-1 221	65	-1 156
Total	1 237	-431	664	-943
Other investment operations
Changes in fair value	347	202	86	121
Sales profits/losses	124	178	-	-
Total	472	379	86	121
Net income from financial assets, total	1 708	-52	750	-822

FAIR VALUES OF FINANCIAL ASSETS AND LIABILITIES, EUR 1 000

	31 Dec. 2024		31 Dec. 2023
	Fair value	Book value	Fair value	Book value
Financial assets
Investments
Private equity and real estate fund investments	16 971	16 971	16 556	16 556
Financial securities	9 026	9 026	10 555	10 555
Accounts receivable and other receivables	975	975	579	579
Liquid assets	7 982	7 982	22 911	22 911
Total	34 955	34 955	50 600	50 600
Financial liabilities
Accounts payable and other liabilities	282	282	670	670
Lease liabilities	3 963	3 963	4 980	4 980
Total	4 245	4 245	5 650	5 650

The table shows the fair values and book values of financial assets and liabilities per balance sheet item. The assessment principles of fair values are presented in principles for preparing the financial statements. The original book value of sales receivables and accounts payable corresponds to their fair value, as the effect of discounting is not material considering their maturity.

Value of financial assets across the three levels of the fair value hierarchy

	31 Dec. 2024		31 Dec. 2023
	Level 1	Level 3	Level 1	Level 3
Financial assets
Private equity and real estate fund investments	-	16 971	-	16 556
Financial securities	9 026	-	10 555	-
Total	9 026	16 971	10 555	16 556

Level 3 reconciliation: Private equity and real estate fund investments

1-12/2024
Opening balance on 1 Jan. 2024	16 556
Calls	1 617
Returns	-1 173
Value change and loss through profit or loss	-29
Closing balance on 31 Dec. 2024	16 971
1-12/2023
---	---
Opening balance on 1 Jan. 2023	16 837
Calls	2 304
Returns	-1 365
Value change and loss through profit or loss	-1 221
Closing balance on 31 Dec. 2023	16 556

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 private equity funds are based on the value of the fund according to the management company of the private equity fund and their use in widely used valuation models. Private equity fund investments are valued in accordance with a practice widely used in the sector, International Private Equity and Venture Capital Guidelines. The fair values of level 3 real estate fund investments are based on the value of the fund according to the management company. For each property, a price estimate is obtained from an independent and external property valuer. During the period under review, no transfers took place between the levels of the fair value hierarchy.

PRIVATE EQUITY AND REAL ESTATE FUND INVESTMENTS, EUR 1 000

Market value	31 Dec. 2024	31 Dec. 2023
Funds managed by eQ:
Private equity funds of funds:
eQ PE XVI North	101	-
eQ VC II	51	-
eQ PE XV US	168	36
eQ PE XIV North	604	421
eQ VC	522	226
eQ PE XIII US	746	455
eQ PE XII North	869	734
eQ PE XI US	998	810
eQ PE X North	1 010	838
eQ PE IX US	1 191	1 168
eQ PE VIII North	1 520	1 750
eQ PE VII US	2 854	2 846
eQ PE VI North	1 175	1 346
Amanda V East	1 272	1 661
Amanda IV West	-	28
Amanda III Eastern PE	2	78
Total	13 081	12 396
Real estate funds:
eQ Residential II	750	668
eQ Residential	847	843
Funds managed by others:
Large buyout funds	1 157	1 196
Midmarket funds	8	91
Venture funds	1 128	1 362
Total	16 971	16 556

REMAINING INVESTMENT COMMITMENTS OF PRIVATE EQUITY AND REAL ESTATE FUND INVESTMENTS, EUR 1 000

Investment commitment	31 Dec. 2024	31 Dec. 2023
Funds managed by eQ:
Private equity funds of funds:
eQ PE XVI North	900	-
eQ VC II	918	905
eQ PE XV US	773	860
eQ PE XIV North	450	600
eQ VC	415	634
eQ PE XIII US	270	453
eQ PE XII North	225	285
eQ PE XI US	13	153
eQ PE X North	29	159
eQ PE IX US	124	126
eQ PE VIII North	301	301
eQ PE VII US	308	160
eQ PE VI North	371	371
Amanda V East	663	663
Amanda IV West	-	427
Amanda III Eastern PE	273	273
Total	6 033	6 368
Real estate funds:
eQ Residential II	-	200
eQ Residential	-	150
Funds managed by others:
Large buyout funds	-	133
Midmarket funds	-	302
Venture funds	-	-
Total	6 033	7 153

SEGMENT INFORMATION, EUR 1 000

1-12/2024	Asset Man.	Corporate Finance	Invest-ments	Other	Elimin-ations	Group Total
Fee and commission income	59 135	5 313	-	-		64 449
From other segments	150	-	-	-	-150	-
Interest income	-	-	-	337		337
Net income from financial assets	-	-	1 237	472		1 708
Other operating income	-	-	-	-		-
From other segments	-	-	-	77	-77	-
Operating income, total	59 285	5 313	1 237	886	-227	66 494
Fee and commission expenses	-618	-	-			-618
To other segments	-	-	-150	-	150	-
Interest expenses	-177	-34	-	-17		-227
NET REVENUE	58 490	5 280	1 087	869	-77	65 649
Administrative expenses
Personnel expenses	-19 853	-3 096	-	-1 813		-24 762
Other administrative expenses	-2 177	-358	-	-405	77	-2 863
Depreciation on tangible and intangible assets	-922	-168	-	-63		-1 153
Other operating expenses	-1 817	-158	-	-362		-2 336
OPERATING PROFIT (LOSS)	33 721	1 501	1 087	-1 774	0	34 536
Income taxes				-7 131		-7 131
PROFIT (LOSS) FOR THE PERIOD				-8 904		27 405
1-12/2023	Asset Man.	Corporate Finance	Invest-ments	Other	Elimin-ations	Group Total
---	---	---	---	---	---	---
Fee and commission income	67 397	3 963	-	-		71 361
From other segments	150	-	-	-	-150	-
Interest income	-	-	-	275		275
Net income from financial assets	-	-	-431	379		-52
Other operating income	-	-	-	-		-
From other segments	-	-	-	77	-77	-
Operating income, total	67 547	3 963	-431	731	-227	71 584
Fee and commission expenses	-546	-	-			-546
To other segments	-	-	-150	-	150	-
Interest expenses	-143	-27	-	-15		-185
NET REVENUE	66 859	3 936	-581	716	-77	70 853
Administrative expenses
Personnel expenses	-21 092	-2 614	-	-1 710		-25 415
Other administrative expenses	-1 925	-343	-	-340	77	-2 532
Depreciation on tangible and intangible assets	-1 035	-174	-	-64		-1 273
Other operating expenses	-1 419	-138	-	-329		-1 885
OPERATING PROFIT (LOSS)	41 389	668	-581	-1 727	0	39 749
Income taxes				-8 225		-8 225
PROFIT (LOSS) FOR THE PERIOD				-9 952		31 524

10-12/24	Asset Man.	Corporate Finance	Invest-ments	Other	Elimin-ations	Group Total
Fee and commission income	13 181	1 020	-	-		14 201
From other segments	38	-	-	-	-38	-
Net income from currency operations	-	-	-	-		-
Interest income	-	-	-	35		35
Net income from financial assets	-	-	664	86		750
Other operating income	-	-	-	-		-
From other segments	-	-	-	19	-19	-
Operating income, total	13 219	1 020	664	140	-57	14 987
Fee and commission expenses	-161	-	-	-		-161
To other segments	-	-	-38	-	38	-
Interest expenses	-41	-8		-3		-52
NET REVENUE	13 018	1 012	627	137	-19	14 774
Administrative expenses
Personnel expenses	-4 796	-797	-	-488		-6 081
Other administrative expenses	-648	-93	-	-164	19	-887
Depreciation on tangible and intangible assets	-242	-43	-	-16		-301
Other operating expenses	-465	-38	-	-96		-599
OPERATING PROFIT (LOSS)	6 867	41	627	-628	0	6 906
Income taxes				-1 415		-1 415
PROFIT (LOSS) FOR THE PERIOD				-2 042		5 492
10-12/23	Asset Man.	Corporate Finance	Invest-ments	Other	Elimin-ations	Group Total
---	---	---	---	---	---	---
Fee and commission income	16 743	2 728	-	-		19 470
From other segments	38	-	-	-	-38	-
Net income from currency operations	-	-	-	-		-
Interest income	-	-	-	92		92
Net income from financial assets	-	-	-943	121		-822
Other operating income	-	-	-	-		-
From other segments	-	-	-	19	-19	-
Operating income, total	16 780	2 728	-943	232	-57	18 740
Fee and commission expenses	-137	-	-	-		-137
To other segments	-	-	-38	-	38	-
Interest expenses	-44	-8		-4		-57
NET REVENUE	16 599	2 719	-981	228	-19	18 547
Administrative expenses
Personnel expenses	-5 662	-996	-	-476		-7 134
Other administrative expenses	-578	-90	-	-100	19	-749
Depreciation on tangible and intangible	-259	-43	-	-16		-318
Other operating expenses	-422	-35	-	-101		-559
OPERATING PROFIT (LOSS)	9 678	1 555	-981	-464	0	9 787
Income taxes				-2 019		-2 019
PROFIT (LOSS) FOR THE PERIOD				-2 484		7 768

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.

PROFIT DEVELOPMENT OF SEGMENTS PER QUARTER, EUR 1 000

	Q4/24	Q3/24	Q2/24	Q1/24	Q4/23
Asset Management
Net revenue	13 018	15 220	15 110	15 143	16 599
Operating profit	6 867	9 418	8 576	8 860	9 678
Corporate Finance
Net revenue	1 012	1 338	2 121	808	2 719
Operating profit	41	490	898	72	1 555
Investments
Net revenue	627	-84	321	223	-981
Operating profit	627	-84	321	223	-981
Other segments and eliminations
Net revenue	118	212	159	303	209
Operating profit	-628	-274	-510	-363	-464
Group total
Net revenue	14 774	16 686	17 711	16 478	18 547
Operating profit	6 907	9 551	9 286	8 792	9 787
Profit for the period	5 492	7 573	7 357	6 982	7 768

CAPITAL ADEQUACY, EUR 1 000

| | IFR
31 Dec. 2024
eQ Group | IFR
31 Dec. 2023
eQ Group |
| --- | --- | --- |
| Equity | 73 330 | 75 436 |
| Common equity tier 1 (CET 1) before deductions | 73 330 | 75 436 |
| Deductions from CET 1 | | |
| Intangible assets | -29 218 | -29 251 |
| Unconfirmed profit for the period | -27 405 | -31 524 |
| Dividend proposal by the Board* | 0 | -1 073 |
| Common equity tier 1 (CET 1) | 16 707 | 13 588 |
| Additional tier 1 (AT1) | 0 | 0 |
| Tier 1 (T1 = CET1 + AT1) | 16 707 | 13 588 |
| Tier 2 (T2) | 0 | 0 |
| Total capital (TC = T1 + T2) | 16 707 | 13 588 |
| Own funds requirement according to the most restrictive requirement (IFR) | 5 652 | 5 375 |
| Fixed overhead requirement | 5 652 | 5 375 |
| K-factor requirement | 398 | 371 |
| Absolute minimum requirement | 150 | 150 |
| Risk-weighted items total – Total risk exposure | 70 655 | 67 188 |
| Common equity tier (CET1) / own funds requirement, % | 295,6 % | 252,8 % |
| Tier 1 (T1) / own funds requirement, % | 295,6 % | 252,8 % |
| Total capital (TC) / own funds requirement, % | 295,6 % | 252,8 % |
| Common equity tier 1 (CET1) / risk weights, % | 23,6 % | 20,2 % |
| Tier 1 (T1) / risk weights, % | 23,6 % | 20,2 % |
| Total capital (TC) / risk weights, % | 23,6 % | 20,2 % |
| Excess of total capital compared with the minimum level | 11 055 | 8 213 |
| Total capital compared with the target level (incl. a 25% risk buffer for the requirement) | 9 642 | 6 869 |

*The dividend and equity repayment proposed by the Board exceeding the profit for the period.

GROUP KEY RATIOS

	31 Dec. 2024	31 Dec. 2023
Profit (loss) for the period to the equity holders of the parent company, EUR 1 000	27 405	31 524
Earnings per average share, EUR	0,66	0,78
Diluted earnings per average share, EUR	0,65	0,75
Equity per share, EUR	1,77	1,85
Equity per average share, EUR *)	1,78	1,86
Return on investment, ROI % p.a.	35,0	37,8
Return on equity, ROE % p.a.	36,8	40,1
Equity to assets ratio, %	77,1	75,2
Cost/income ratio, Group, %	47,4	43,8
Share price at the end of the period, EUR	12,95	15,58
Market value, EUR million	536,2	634,8
Personnel calculated as full-time resources at the end of the period	104	101

*) Weighted average number of shares outstanding.

eQ applies the guidelines of the European Securities and Markets Authority, ESMA, on alternative performance measures. An alternative performance measure is a financial measure of historical or future financial performance, financial position, or cash flows, other than a financial measure defined or specified in the applicable financial reporting framework (IFRS). eQ presents alternative measures in order to describe the financial development of its operations. Capital adequacy performance measures are presented based on European legislation concerning companies in the finance sector. The calculation principles and formulae of the key ratios are presented in the company's 2023 financial statements, which are available on the company website at www.eQ.fi. The key ratios presented by eQ can be directly calculated with the calculation formulae based on the information in the income statement, balance sheet and notes thereto.

REMAINING COMMITMENTS

On 31 December 2024, eQ's remaining investment commitments in private equity funds totalled EUR 6.0 million (EUR 7.2 million on 31 Dec. 2023). Other commitments at the end of the period totalled EUR 0.0 million (EUR 0.0 million on 31 Dec. 2023).

PERFORMANCE BASED FEES OF PRIVATE EQUITY FUNDS MANAGED BY EQ

It is possible for eQ Group to obtain a performance based fee (carried interest) based on the return of the private equity fund or PE programme fund that eQ manages. The performance based fee, which is based on fund agreements and belongs to the management company, is not paid until the return late defined by the hurdle rate (IRR) has been achieved at cash flow level. Typically, the performance fee will become payable first towards the end of a fund's life cycle. If the return from the fund remains below the hurdle rate, the management company receives no performance fee. When the hurdle rate has been reached, the management company will receive the coming cash flow until the entire performance fee accumulated this far has been obtained (catch up stage, catch up share 100%). After the catch up stage, the cash flows distributed by the fund will be divided between the management company and investors according to the fund agreement (e.g. 7.5% / 92.5%).

eQ Group accrues the catch up share of private equity funds' performance fee in the income statement. eQ Group will begin to accrue the catch up share of performance fees when the Group has assessed that it will not be necessary to later make any considerable cancellations in the accrued and recognised income. Accruals will be recognised for the funds that fulfil the requirements and that are assessed, based on cash flows, to pay carried interest in the following five years, the investment period of which has ended, and regarding which eQ has received return assessments of the final returns from the targets funds' management companies. After the catch up stage, the performance fees will be booked in the income statement according to the cash flow distributed by the fund and divided between the management company and investors (e.g. 7.5% / 92.5%).

The estimated returns and performance fees for each separate fund have been presented on the following page. The catch up share to be recognised in the 2025 income statement is estimated to be around EUR 4.4 million.

Funds – 31 December 2024

Fund	Fund size	Vintage year	Hurdle rate	Performance fees	eQ's share of the performance fee	Present TVPI	Estimated TVPI	Estimate on reaching the hurdle rate (cash flow)	Estimated catch up share, total MEUR (those in accrual)	Estimated future performance fees, total MEUR	Performance fees accrued presently in the fund's value, MEUR 1)
Amanda III	MEUR 110	2006	6,0 %	10,0 %	100 %	1,1x	1,1x	Will not reach	n/a	n/a	n/a
Amanda V	MEUR 50	2011	6,0 %	10,0 %	100 %	1,4x	1,4x	Will not reach	n/a	n/a	n/a
eQ PE VI	MEUR 100	2013	7,0 %	7,5 %	100 %	1,5x	1,6x	2026	2,3	5,3	4,1
eQ PE VII	MUSD 80	2015	7,0 %	7,5 %	45 %	1,8x	2,1x	2026	1,0	3,4	2,4
eQ PE VIII	MEUR 160	2016	7,0 %	7,5 %	100 %	1,6x	1,9x	2026	3,1	11,9	7,6
eQ PE IX	MUSD 105	2017	7,0 %	7,5 %	45 %	1,8x	2,1x	2026	1,0	4,6	2,9
eQ PE X	MEUR 175	2018	7,0 %	7,5 %	100 %	1,3x	1,9x	2028	4,6	14,1	4,3
eQ PE XI	MUSD 217	2019	7,0 %	7,5 %	45 %	1,3x	2,1x	2028	2,2	9,2	2,4
eQ PE XII	MEUR 205	2020	7,0 %	7,5 %	100 %	1,2x	1,8x	2029	n/a	14,4	3,2
eQ PE XIII	MUSD 318	2021	7,0 %	7,5 %	45 %	1,1x	1,8x	After 2029	n/a	9,6	n/a
eQ PE XIV	MEUR 288	2022	7,0 %	7,5 %	100 %	1,1x	1,8x	After 2029	n/a	19,7	n/a
eQ PE XV	MUSD 283	2023	7,0 %	7,5 %	45 %	n/a	1,8x	After 2029	n/a	8,5	n/a
eQ PE XVI	MEUR 227	2024	7,0 %	7,5 %	100 %	n/a	1,8x	After 2029	n/a	16,4	n/a
eQ PE SF II	MEUR 135 2)	2018	10,0 %	10,0 %	100 %	1,3x	1,4x	Will not reach	n/a	n/a	n/a
eQ PE SF III	MEUR 170 3)	2020	10,0 %	10,0 %	100 %	1,5x	1,8x	2028	3,7	9,3	5,0
eQ PE SF IV	MEUR 151 4)	2022	10,0 %	10,0 %	100 %	1,2x	1,8x	2029	n/a	6,0	1,4
eQ PE SF V	MEUR 85 5)	2024	10,0 %	10,0 %	100 %	n/a	1,6x	After 2029	n/a	1,6	n/a
PE programme funds	MEUR 198	2013-16	8%/12%	7,5%/12%	100 %	n/a	n/a	2026-2028	10,2	24,9	14,4
eQ VC	MUSD 77	2021	7,0 %	7,5 %	45 %	1,0x	2,3x	After 2029	n/a	3,5	n/a
eQ VC II	MUSD 54	2023	7,0 %	7,5 %	45 %	n/a	2,3x	After 2029	n/a	2,4	n/a
Total									28,2	164,9	47,6
									(31 Dec 23: 26,0)	(141,5)	(38,4)
of which covered by the catch up accrual									28,2	82,8	43,1
catch up share accrued cumulatively by 31 December 2024									15,4
estimated accrual for 2025									4,4

The return estimates that eQ has presented are based on assessments obtained from the target funds' management companies regarding the funds that are fully invested and where the investment periods of the target funds have ended. Otherwise, the estimates are based on eQ's own assessment model.

1) The amount of the performance fee that eQ would receive, if the investments of the funds were sold at present market value.
2) Capital covered by the performance fee MEUR 75.

3) Capital covered by the performance fee MEUR 104.
4) Capital covered by the performance fee MEUR 71.
5) Capital covered by the performance fee MEUR 28.

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eQ Oyj — Earnings Release 2024

3263_rns_2025-02-04_d70bf974-5264-40bc-891d-ba4fa00c1399.pdf

FINANCIAL STATEMENTS RELEASE

eQ Plc's financial statements release 2024 – eQ's operating profit EUR 34.5 million, proposed dividend EUR 0.66

January to December 2024 in brief

October to December 2024 in brief

Acting CEO Janne Larma

eQ's result for the financial period fell

eQ Asset Management's profit fell, assets under management increased

Advium's profit grew

Investment profit and cash flow increased

Changes in eQ's management

Outlook

eQ PLC'S FINANCIAL STATEMENTS RELEASE 1 JAN. TO 31 DEC.

Result of operations and financial position 1 Jan to 31 Dec 2024

Result of operations and financial position 1 Oct to 31 Dec 2024

Operating environment

Major events during the financial period

Group net revenue and result development

Business areas

Asset Management

Traditional asset management

Real estate asset management

Private Equity asset management

Assets under management

Result of the Asset Management segment

Corporate Finance

Result of the Corporate Finance segment

Investments

Balance sheet and capital adequacy

Shares and share capital

Own shares

Shareholders

Option schemes

Option scheme 2022

Decisions by the Annual General Meeting

Confirmation of the financial statements

Disposal of the profit shown on the balance sheet and decision on the distribution of dividend

Discharge from liability to the Board of Directors and the CEO

Remuneration Report for Governing Bodies

Number of directors, appointment of directors, and the remuneration of directors

Auditors and auditors' compensation

Authorising the Board of Directors to decide on the issuance of shares as well as the issuance of special rights entitling to shares

Personnel and organisation

Major risks and short-term uncertainties

Proposal for the distribution of profit

Events after the end of the financial year

Outlook

TABLES

Principles for drawing up the report

CONSOLIDATED INCOME STATEMENT, EUR 1 000

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

CHANGE IN CONSOLIDATED SHAREHOLDERS' EQUITY, EUR 1 000

REMAINING INVESTMENT COMMITMENTS OF PRIVATE EQUITY AND REAL ESTATE FUND INVESTMENTS, EUR 1 000

GROUP KEY RATIOS

REMAINING COMMITMENTS

PERFORMANCE BASED FEES OF PRIVATE EQUITY FUNDS MANAGED BY EQ

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eQ Oyj Earnings Release 2024