INTERIM REPORT

Q3 I 2013

eQ PLC STOCK EXCHANGE RELEASE

7 November 2013 at 1:00 p.m.

eQ PLC'S INTERIM REPORT 1 JANUARY TO 30 SEPTEMBER 2013

July to September 2013 in brief

In the third quarter, the Group's net revenue totalled EUR 3.9 million (EUR 6.7 million from 1 July to 30 September 2012).
The Group's net fee and commission income totalled EUR 3.4 million (EUR 2.7 million).
The Group's net investment income from own investment operations was EUR 0.5 million (EUR 4.1 million).
The Group's operating profit was EUR 0.6 million (EUR 4.3 million).
Earnings per share were EUR 0.01 (EUR 0.10).
On 30 September 2013, eQ increased its holding in Finnreit Fund Management Company Ltd from 50 per cent to 100 per cent.

January to September 2013 in brief

During the period under review, the Group's new revenue totalled EUR 13.7 million (EUR 12.7 million from 1 Jan. to 30 Sept. 2012).
The Group's net fee and commission income totalled EUR 10.8 million (EUR 7.6 million).
The Group's net investment income from own investment operations was EUR 2.9 million (EUR 5.1 million).
The Group's operating profit was EUR 3.8 million (EUR 5.6 million).
Earnings per share were EUR 0.07 (EUR 0.13).
The assets under management totalled EUR 6.4 billion (EUR 6.3 billion on 31 Dec. 2012) at the end of the period.
The interim report contains Icecepital asset management companies acquired during the financial year 2012 from 20 November 2012. The comparison figures presented in the interim report are therefore not comparable.

Key ratios	7-9/ 2013	7-9/ 2012	Change %	1-9/ 2013	1-9/ 2012	Change %	1-12/ 2012
Net revenue, EUR million	3.9	6.7	-42%	13.7	12.7	8%	16.3
Operating profit, EUR million	0.6	4.3	-87%	3.8	5.6	-32%	4.7
Profit before taxes, EUR million	0.6	4.3	-87%	3.7	5.6	-33%	4.6
Profit for the period, EUR million	0.4	3.2	-88%	2.6	4.2	-39%	3.4
Earnings per share, EUR Equity per share, EUR	0.01 1.96	0.10 2.05	-90% -4%	0.07 1.96	0.13 2.05	-46% -4%	0.10 2.03
Interest-bearing liabilities, EUR million Liquid assets and interest-bearing receivables, EUR million	0.0 7.8	0.0 13.8	0% -44%	0.0 7.8	0.0 13.8	0% -44%	4.0 10.7
Assets under management, EUR billion	6.4	3.4	88%	6.4	3.4	88%	6.3

Janne Larma, CEO

The first nine months of the year have, as a rule, been good for investors in the equity market. The global share index rose by 15 per cent, and in Finland, the share index rose by 23 per cent. Emerging markets moved to the opposite direction and fell by about 7 per cent from the beginning of the year. Investors have, however, been able to succeed in emerging markets as well by making the right choices. A good example of this is the eQ Emerging Markets Dividend Fund, which gave a return of 6.6 per cent during the nine-month period, even though the return of the comparison index was 6.6 per cent negative.

The assets managed by eQ totalled EUR 6.4 billion at the end of the period under review, and we are the largest asset manager in Finland that is independent of bank groups. We consolidated out position by acquiring the entire share capital of Finnreit Fund Management Company. The acquisition will improve the management the eQ Care Fund and launch of new non-UCITS funds. The investment capacity of the eQ Care Fund already exceeds EUR 100 million, and it gave a yield of more than 12 per cent during a 12-month period. In addition, we carried out a close of EUR 64 million in the eQ PE VI North investment programme. The investment programme consists of a EUR 30 million programme launched in Q2 2013 for a local institutional investor and a EUR 34 million fund, eQ PE VI North LP. We also increased our range of fixedincome funds on 15 October 2013 as eQ LCR Income was launched.

The Group's net revenue increased from the year before and totalled EUR 13.7 million. The increase of the net revenue was influenced by the increase in the fee and commission income of the Asset Management segment. The Group's operating profit was EUR 3.8 million, which is lower than the figure for the corresponding period last year. This was mainly due to the lower operating profit of the Investments segment, which is independent of client operations. The net revenue of the Asset Management segment grew to EUR 9.9 million from last year's EUR 6.4 million, and the profit of the segment increased to EUR 2.3 million, up more than 60 per cent on the year before. The result of the Corporate Finance segment was slightly positive. The net revenue and result of the Investments segment fell from the corresponding period last year and the operating profit was EUR 2.6 million. However, the net cash flow from investments was high at EUR 8.2 million during the period.

The balance sheet of the Group is in excellent shape. At the end of September, the balance sheet contained no interest-bearing liabilities, and the liquid assets and interest-bearing receivables totalled EUR 7.8 million. The balance sheet value of the private equity investments was EUR 32.7 million.

***

According to the new Securities Markets Act, which came into force at the beginning of 2013, a company is no longer liable to present an outlook in its interim reports and financial statements release. eQ has decided to give up its previous practice of issuing an outlook in its interim reports. In future, an outlook will be presented in the financial statements release and in the report by the Board of Directors, as required by the Finnish Accounting Act.

***

eQ's interim report for the period 1 January to 30 September 2013 is enclosed to this release and it will also be available on the company website at www.eQ.fi.

Additional information: Janne Larma, CEO, tel. +358 40 500 4366

Distribution: NASDAQ OMX Helsinki, www.eQ.fi

eQ Group is a Finnish listed company specialising in asset management and corporate finance business. eQ Asset Management offers a wide range of asset management services (including private equity funds) for institutions and individuals. The assets managed by the Group total approximately EUR 6.4 billion. Advium Corporate Finance Ltd, 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 at www.eQ.fi.

eQ PLC´S INTERIM REPORT 1 JAN. TO 30 SEPT. 2013

Result of operations 1 July to 30 September 2013

In the third quarter of the year, the Group's net revenue totalled EUR 3.9 million (EUR 6.7 million from 1 July to 30 September 2012).
The Group's net fee and commission income totalled EUR 3.4 million (EUR 2.7 million).
The Group's net investment income from own investment operations was EUR 0.5 million (EUR 4.1 million).
The Group's operating profit was EUR 0.6 million (EUR 4.3 million).
Consolidated earnings after taxes were EUR 0.4 million (EUR 3.2 million).
Earnings per share were EUR 0.01 (EUR 0.10).

Result of operations and financial position 1 January to 30 September 2013

During the period under review, the Group's net revenue totalled EUR 13.7 million (EUR 12.7 million from 1 Jan. to 30 Sept. 2012).
The Group's net fee and commission income totalled EUR 10.8 million (EUR 7.6 million).
The Group's net investment income from own investment operations was EUR 2.9 million (EUR 5.1 million).
The Group's operating profit was EUR 3.8 million (EUR 5.6 million).
Consolidated earnings after taxes were EUR 2.6 million (EUR 4.2 million).
Earnings per share were EUR 0.07 (EUR 0.13).
Equity per share was EUR 1.96 (EUR 2.03 on 31 December 2012).
The assets under management totalled EUR 6.4 billion (EUR 6.3 billion on 31 Dec. 2012) at the end of the period.
The interim report contains Icecepital asset management companies acquired during the financial year 2012 from 20 November 2012. The comparison figures presented in the interim report are therefore not comparable.

Operating environment

The third quarter of 2013 was characterised by hopes for the recovery of global economic growth. During the quarter, both the US and Europe published more positive economic figures then lately, and the worst fears for slower economic growth in China also began to vanish.

The stronger growth led to fears for a tighter monetary policy by the Fed. Contrary to the panic in May, the reactions for both the economic figures and comments of the central bank were calm, however, and the basic sentiment remained positive for the most part. In the middle of September, the Fed announced surprisingly that it would not cut bond buying at this stage. This further improved the market sentiment.

In addition to the slowly improving economic figures, the result of the election in Germany also contributed to calming down feelings in Europe, as it showed that Germans support Angela Merkel. On the other hand, the political situation in Italy was struck by another crisis, but even this created no panic in the market. In Finland, economic growth has remained poorer than in the rest of Europe.

During the quarter, the situation in Syria caused uncertainty in the market, which feared that it would escalate to an open military conflict. Even this fear gradually gave way thanks to international co-operation. At the end of September, the market also began to focus on the emerging debt ceiling in the US and the political debate it caused.

The euro remained strong during the entire third quarter. The currencies of emerging markets deteriorated, and above all in countries with a current account deficit, the fall was considerable. Towards the end of the quarter, currencies began to stabilise and grow stronger, however.

Equity market

In the equity market, the third quarter of the year was a time of rise or rapid rise depending on the region. Europe took on the leading role from the US, and the STOXX 600 Index describing the European equity market rose by 10.0 per cent from July to September, while the US S&P 500 Index rose by 2.1 per cent (both in euros). Since the beginning of the year, American shares have risen by 18.8 per cent and European by 14.9 per cent.

Finnish shares rose by no less than 16.7 per cent in the third quarter, which is explained by news related to some companies (Nokia, Kone). At the Helsinki Stock Exchange, cyclical shares also picked up in the third quarter. The rocket-like rise of Japanese shares at the beginning of the year slowed down, and shares rose by 2.1 per cent. In emerging markets, development remained modest after the price fall in summer, and the returns of euro investors were also cut down by deteriorating currencies. Towards the end of the quarter, share prices began to rise, however, and currencies started to stabilise. As a whole, emerging equity markets rose by 2.4 per cent from July to September, but at the end of September, they were at a level 6.6 per cent lower that at the beginning of the year.

Bond market

After the strongly negative second quarter, the bond market calmed down, and both interest rates and interest rate differences fell in the third quarter. The fall was not even, as above all the fear that the Fed would cut the bond-buying programme shook the market at times, as it had done in the first half of the year.

For most parts, the quarter was good for bond investors, however. In the euro zone, government bonds gave a 0.9 per cent (from the beginning of the year 1.1) yield at index level, IG corporate bonds a 1.3 per cent (1.4) yield and high yield bonds a 2.1 per cent (3.5) yield. Bonds of emerging markets still experienced problems, mainly due to weaker currencies, and cash flows have not yet returned to this asset class. However, calculated in Western currencies, corporate bonds of emerging markets gave a positive return of 0.8 per cent, even though they still are 3.6 per cent below the level at the beginning 2013.

Major events during the period under review

In connection with the acquisition of Icecapital's asset management operations in 2012, business transfers were carried out at the beginning of 2013, whereby the business operations of Icecapital Asset Management Ltd were transferred to eQ Asset Management Ltd and those of Icecapital Fund Management Company Ltd to eQ Fund Management Company Ltd. After these business transfers, Icecapital Asset Management Ltd was merged with eQ Asset Management Ltd and Icecapital Fund Management Company Ltd with eQ Fund Management Company Ltd in the spring of 2013.

The Amanda V East private equity fund managed by eQ held its final close on 31 January 2013 on EUR 50.0 million. The fund makes investments in growth and buyout private equity funds, which make investments in small and midsized unlisted companies in Russia, CIS, CEE and SEE countries.

The Board of Directors of eQ Plc received a letter of resignation from Eero Heliövaara on 14 February 2013. The reason for Heliövaara's resignation was his appointment as Director General of the Government Ownership Steering Department as of 1 March 2013.

The Board of Directors of eQ Plc decided on 14 February 2013, based on the authorisation by the Annual General Meeting of eQ held on 13 March 2012, to carry out a share issue against payment directed to certain key persons of the eQ Group. Through the share issue, a total of 145 000 new shares in the company were offered for subscription to key persons. The key persons sold their minority shareholdings in eQ Financial Products Ltd (previously Icecapital Financial Products Ltd), which is part of the eQ Group, and

in connection with the sale of the minority shareholdings, the purpose of the directed share issue is to enhance the key persons' commitment to the company.

On 14 February 2013, eQ Plc's Board of Directors decided to issue to Veli-Pekka Heikkinen 200 000 option rights in accordance with eQ Plc's option scheme 2010. Veli-Pekka Heikkinen, D.Sc. (Econ.) was appointed Head of Portfolio Management at eQ Asset Management Ltd on 14 February 2013.

The Annual General Meeting of eQ Plc was held on 26 March 2013. The decisions of the AGM are presented in a separate chapter below.

eQ Asset Management Ltd acquired the entire share capital of Finnreit Fund Management Company Ltd through a deal that was carried out on 30 September 2013. eQ Asset Management Ltd had previously owned 50 per cent and the company management 50 per cent of the company. The sellers and key persons of Finnreit Fund Management Company Ltd will join eQ Asset Management Ltd.

Group net sales and result development

The comparison information of the interim report is not comparable, as Icecapital Asset Management Ltd and its subsidiaries, which were acquired on 19 November 2012, have been consolidated with the Group from the acquisition date.

During the period under review, the consolidated net revenue totalled EUR 13.7 million (EUR 12.7 million from 1 Jan. to 31 September 2012). Fee and commission income increased from the comparison period due to the acquisition of Icecapital Asset Management Ltd. The Group's net fee and commission income rose to EUR 10.8 million (EUR 7.6 million). On the other hand, the income from own investment operations fell from the comparison period. The net investment income was EUR 2.9 million (EUR 5.1 million), including a writedown of EUR 0.6 million (EUR 0.0. million) with an impact on the second quarter result.

The Group's expenses and depreciation totalled EUR 9.9 million (EUR 7.1 million). Personnel expenses were EUR 5.6 million (EUR 3.8 million), other administrative expenses totalled EUR 1.7 million (EUR 1.3 million) and the other operating expenses were EUR 1.6 million (EUR 1.0 million). Depreciation was EUR 0.9 million (EUR 0.9 million), including EUR 0.7 million (EUR 0.7 million) in depreciation of customer agreements allocated to intangible assets in connection with corporate acquisitions.

The Group's operating profit was EUR 3.8 million (EUR 5.6 million). The decrease from the comparison period is due to the lower net income from own investment operations. The profit for the period was EUR 2.6 million (EUR 4.2 million).

Business Areas

Asset Management

eQ Asset Management offers versatile asset management services to both institutions and individuals. The Asset Management segment consists of the investment firm eQ Asset Management Ltd and its subsidiaries, the most important of which is eQ Fund Management Company Ltd. eQ Asset Management Ltd acquired the entire share capital of Finnreit Fund Management Company Ltd through a deal that was carried out on 30 September 2013. eQ Asset Management Ltd had previously owned 50 per cent and the company management 50 per cent of the company. The sellers and key persons of Finnreit Fund Management Company Ltd will join eQ Asset Management Ltd. The Asset Management segment also has offices in Sweden, Denmark and Norway.

The aim of the Asset Management operations is to offer the clients good investment yields, innovative solutions and excellent customer service. We are able to offer an extremely wide and international range of investment solutions, through both our own organisation and our international partners.

The business operations of eQ Asset Management expanded considerably in 2012, as eQ acquired Icecapital's asset management business. During the first months of 2013, the domestic fund range has been combined, and at the moment, eQ Asset Management can offer 34 funds registered in Finland. In connection with the integration, the company launched at the beginning of March a system project the aim of which is to introduce a new, unified and functionally efficient system platform. During the period under review, the value calculation and unit holder registers of all funds managed by eQ Fund Management Company were already transferred to the new system. The aim is to introduce all parts of the new system by the end of this year.

In the third quarter, the assets managed by eQ Asset Management increased somewhat. At the end of the period, the assets under management totalled EUR 6 424 million, which is an increase by 2 per cent from the beginning of the year (EUR 6 294 million on 31 Dec. 2012, EUR 6 303 on 31 June 2013). During the quarter, the increase was influenced by the rise of market values and net sales. At the end of the period under review, the assets managed by mutual funds registered in Finland totalled EUR 1 083 million (EUR 1 056 million on 31 Dec. 2012). Mutual funds managed by international partners and other assets covered by asset management operations totalled EUR 2 742 million (EUR 2 587 million). The assets managed under private equity funds and asset management totalled EUR 2 598 million (EUR 2 651 million). EUR 1 305 million (EUR 1 283 million) of these assets were covered by the reporting service.

eQ Emerging Markets Dividend, which makes investments in dividend stock in emerging markets, continued to gather a considerable amount of new capital, and at the end of September, the fund's assets already totalled almost EUR 150 million.

In September 2012, eQ Asset Management Ltd acquired 50 per cent of the share capital of Finnreit Fund Management Company Ltd, and as a result of this, the non-UCITS fund eQ Care was launched. This is the first opportunity in Finland to make investments in domestic care properties and, consequently, obtain stable annual income from rents through the fund's profit distribution. The operations of the fund have begun excellently, and its yield was 9.7 per cent in the first three quarters of the year. The fund accepts subscriptions four times a year, and at the end of September, the new subscriptions exceeded EUR 21 million. The overall investment capacity of the eQ Care Fund already increased to about EUR 105 million.

In the second quarter, eQ Asset Management agreed with a Finnish institutional investor on a EUR 30 million investment programme in European private equity funds. In addition, eQ launched on 1 October 2013 a new fund called eQ PE North VI, which will make investments in private equity funds that make investments in small and mid-sized companies in Northern Europe. The total investment capacity of the investment programme and fund is at the moment EUR 64 million.

The net revenue of the Asset Management segment increased by 46 per cent and the operating profit by 20 per cent on the third quarter of 2013, mainly due to the acquisition of Icecapital. The corresponding figures for the first nine months are 54 and 62 per cent. We asses that net synergy benefits exceeding EUR 2 million at annual level will be realised as previously announced. The number of personnel in the segment was 61 at the end of the period.

Asset Management	7-9/ 2013	7-9/ 2012	Change %	1-9/ 2013	1-9/ 2012	Change %	1-12/ 2012
Net revenue, EUR million	3.2	2.2	46%	9.9	6.4	54%	9.0
Operating profit, EUR million	0.6	0.5	20%	2.3	1.4	62%	0.9
Assets under management, EUR billion	6.4	3.4	88%	6.4	3.4	88%	6.3
Personnel	61	43	42%	61	43	42%	81

The result of Icecapital Asset Management companies has been consolidated with the income statement of eQ Group and the Asset Management segment from 20 November 2012.

Corporate Finance

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

Even though there are signs of improvement in the macro economy, the M&A market can still be described as cautious and slow. The number of acquisition processes continues to be reasonable, in both traditional M&A and real estate transaction markets.

Advium Corporate Finance was once more elected the best investment bank in Finland in the real estate sector in an inquiry by the renowned Euromoney magazine. Advium has been elected the best transaction advisor or investment bank in the real estate sector seven times since 2005 in Euromoney's annual inquiry.

In the third quarter of the year, Advium acted as advisor in several, still on-going projects. Advium acted as financial advisor of the seller as Treston Oy concentrated on its core business and sold Hexaplan Oy to Lounais-Suomen Logistiikkamyynti Oy. In addition, Advium acted as Pöyry PLC's advisor after the end of the reporting period when Pöyry agreed to carry out a sale and lease back of its global headquarters in Vantaa, Finland, to Swedish Niam Nordic Core Plus fund.

The number of personnel in the Corporate Finance segment remained unaltered during the period under review and was 13 at the end of September.

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

Corporate Finance	7-9/ 2013	7-9/ 2012	Change %	1-9/ 2013	1-9/ 2012	Change %	1-12/ 2012
Net revenue, EUR million	0.3	0.6	-40%	1.2	1.5	-21%	2.6
Operating profit, EUR million	-0.0	0.1	-131%	0.1	0.4	-80%	0.7
Personnel	13	13	0%	13	13	0%	13

Investments

The business operations of the Investments segment consist of private equity fund 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.

During the period under review, the net revenue of the Investments segment totalled EUR 2.6 million (EUR 4.8 million from 1 Jan. to 30 Sept. 2012). At the end of the period, the fair value of the private equity fund investments was EUR 32.7 million (EUR 38.7 million on 30 December 2012). As for private equity investments, the amount of the remaining investment commitments was EUR 9.7 million (EUR 10.8 million). The investment objects returned capital for EUR 6.5 million (EUR 4.4 million) and distributed a profit of EUR 3.5 million (EUR 5.1 million) during the period. Capital calls totalled EUR 1.8 million (EUR 2.5 million). The net cash flow from the investments during the period was consequently EUR 8.2 million (EUR 7.0 million). A write-down of EUR 0.6 million (EUR 0.0) was recorded in the second quarter.

The largest exits in the third quarter of 2013 were:

The EQT IV Fund sold a company called Gambro to an industrial buyer Baxter International. The company is a global service provider of products and care related to kidney disease. The exit generated a cash flow of about EUR 1.0 million to eQ.
The EQT V Fund sold a company called Springer to another private equity investor BC Partners. The company is a publisher of magazines in science, technology, and health care. The exit generated a cash flow of about EUR 1.0 million to eQ.

The Montagu III Fund sold a company called Host to another private equity investor Cinven. The company is a provider of web hosting services. The exit generated a cash flow of about EUR 0.8 million to eQ.

As for the income from own investment operations, eQ Group's net revenue is recognised for eQ in different quarters due to factors independent of the company. Due to this segment's result may vary considerably. eQ has made a decision that it will only make new investments in funds managed by eQ in future.

Investments	7-9/ 2013	7-9/ 2012	Change %	1-9/ 2013	1-9/ 2012	Change %	1-12/ 2012
Net revenue, EUR million	0.4	4.0	-90%	2.6	4.8	-45%	4.7
Operating profit, EUR million	0.4	4.0	-90%	2.6	4.8	-45%	4.7
Fair value of investments, EUR million €	32.7	39.1	-16%	32.7	39.1	-16%	38.7
Investment commitments, EUR million	9.7	12.5	-23%	9.7	12.5	-23%	10.8
Personnel	1	1	0%	1	1	0%	1

Balance sheet

At the end of the period under review, the consolidated balance sheet total was EUR 76.7 million (EUR 84.3 million on 31 Dec. 2012). At the end of the period, eQ Plc's shareholders' equity was EUR 71.4 million (EUR 73.6 million). During the period, the shareholders' equity was influenced by the profit for the period of EUR 2.6 million, the change in the fair value reserve of EUR -0.6 million, a directed share issue of EUR 0.3 million and the dividend distribution of EUR -4.4 million. The changes are specified in detail in the tables attached to this release.

In the first quarter, eQ paid an additional sales price in connection with the deal on Icecapital Asset Management Ltd concluded in November 2012. The additional sales price based on the acquired net assets was EUR 0.2 million. This sum was allocated to goodwill in intangible assets.

At the end of the period, liquid assets and interest-bearing receivables totalled EUR 7.8 million (EUR 10.7 million). In order to safeguard the availability of financing, the Group has access to a credit limit of EUR 6.0 million. At the end of the period, the Group had no interest-bearing liabilities (EUR 4.0 million). At the end of the period, interest-free long-term debt was EUR 0.9 million (EUR 0.9 million) and interest-free short-term debt EUR 4.4 million (EUR 5.8 million). eQ's equity to assets ratio was 93.1% (87.3%).

Business acquisitions

eQ Asset Management Ltd acquired the entire share capital of Finnreit Fund Management Company Ltd through a deal that was carried out on 30 September 2013. eQ Asset Management Ltd had previously owned 50 per cent and the company management 50 per cent of the company. The total preliminary acquisition cost for Finnreit Fund Management Company Ltd was EUR 2.3 million, containing a transfer tax of EUR 0.0 million. The purchase price was financed with the Group's liquid assets.

The acquisition cost exceeded the purchased net assets by EUR 2.0 million, which was allocated to goodwill. The goodwill is based on the acquired company's personnel and expertise and gives eQ the opportunity to expand its business and product offering.

The balance sheet of Finnreit Fund Management Company Ltd has been consolidated with eQ Group as a subsidiary from 30 September 2013. The company's result will be consolidated with eQ Group's result from 1 October 2013. If the acquired company had been consolidated with eQ Group's result from the beginning of 2013, the Group's net revenue had been EUR 0.1 million higher and result EUR 0.1 million lower during the period. The fair value of shares based on eQ Group's former holding (50%) immediately before the acquisition was EUR 0.3 million, which corresponded to the balance sheet value of the shares.

Fair value of acquired net assets and goodwill, EUR million

Liquid assets	0.2
Receivables	0.2
Liabilities	0.1
Net assets	0.2
Total preliminary acquisition cost	2.3
Goodwill	2.0

Shares and share capital

The Board of Directors of eQ Plc decided on 14 February 2013, based on the authorisation by the Annual General Meeting of eQ held on 13 March 2012, to carry out a share issue against payment directed to certain key persons of the Group. In the share issue, a total of 145 000 new shares in the company were offered for subscription to key persons deviating from the shareholders' pre-emptive subscription right.

The subscription price was EUR 2.01 per share. The volume-weighted average price of the company's share on NASDAQ OMX Helsinki Ltd for the period of 20 consecutive trading days before the Board meeting that decided on the personnel issue was EUR 2.23 per share. Thus, the discount in the issue was EUR 0.22 for each share i.e. 10 per cent. The entire subscription price of the new shares was entered into eQ's reserve for invested unrestricted equity. A subscriber has no right to assign the subscribed shares before 14 February 2014, and if the subscription exceeds 20 000 shares, not before 14 February 2016.

Based on the share issue, the number of eQ shares grew from 36 297 198 to 36 442 198 shares. The shares were entered in the Trade Register on 28 February 2013. The share capital did not change as a result of the share issue. The share capital was EUR 11 383 873 on 30 September 2013.

Own shares

eQ Plc held no own shares at the end of the period on 30 September 2013.

Shareholders

On 11 March 2013, eQ Plc issued a flagging notification, according to which Ulkomarkkinat Oy announced that it had acquired shares in an amount that exceeded the 10 per cent flagging threshold.

Ten major shareholders on 30 September 2013

	Share of votes and shares, %
Fennogens Investments S.A.	15.90
Chilla Capital S.A.	11.72
Ulkomarkkinat Oy	10.15
Veikko Laine Oy	10.06
Oy Hermitage Ab	6.30
Mandatum Life Insurance Company	5.63
Oy Cevante Ab	3.89
Teamet Oy	3.29
Fazer Jan Peter	2.92
Linnalex Ab	2.42

On 30 September 2013, eQ Plc had 3 321 shareholders.

Option scheme 2010

At the end of the period, eQ Plc had one option scheme. The option scheme is intended as part of the incentive and commitment system of the Group's key employees.

On 14 February 2013, eQ Plc's Board of Directors decided to issue to Veli-Pekka Heikkinen 200 000 option rights in accordance with eQ Plc's option scheme 2010 (50 000 2010B options, 50 000 2010C options, 50 000 2010D options and 50 000 2010E options). Veli-Pekka Heikkinen, D.Sc. (Econ.), was appointed Head of Portfolio Management at eQ Asset Management Ltd on 14 February 2013.

At the end of the period under review, altogether 1 700 000 options had been allocated. Based on the authorisation given to the Board on 14 April 2010 by the Annual General Meeting, there were 30 000 options 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.

Decisions by the Annual General Meeting

eQ Plc's Annual General Meeting (AGM), held on Tuesday 26 March 2013 in Helsinki, decided on 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 2012.

Decision in respect of the result shown on the balance sheet

The AGM confirmed the proposal by the Board of Directors that a dividend of EUR 0.12 per share be paid. The dividend was paid to shareholders who, on the record date for the dividend payment, i.e. 2 April 2013, were recorded in the shareholder register held by Euroclear Finland Ltd. The dividend was paid on 9 April 2013.

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.

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

According to the decision of the AGM, five members shall be elected to eQ Plc's Board of Directors. Christina Dahlblom, Georg Ehrnrooth, Ole Johansson, and Jussi Seppälä were re-elected to the Board and Nicolas Berner was elected as new member. The term of office of the directors will end at the close of the next Annual General Meeting. The AGM decided that the directors would receive remuneration as follows: the Chairman of the Board will receive EUR 3 300 and the other directors EUR 1 800 per month. Travel and lodging costs will be compensated in accordance with the company's expense policy. The Board elected Ole Johansson Chairman of the Board at its constituent meeting held immediately after the AGM.

Auditors and auditors' compensation

Ernst & Young Oy, a corporation of authorised public accountants, will continue as auditor of the company, and Ulla Nykky, APA, will act as Lead Auditor. It was decided to compensate the auditors according to an invoice approved by eQ Plc.

Authorising the Board of Directors to decide on the repurchase of the company's own shares

The AGM authorised the Board of Directors to decide on the repurchase of no more than 1 000 000 own shares, which can be repurchased otherwise than in proportion to the shareholdings of the shareholders with assets from the company's unrestricted equity at the market price in public trading on NASDAQ OMX Helsinki at the time of purchase. The number of shares corresponded to approximately 2.76 per cent of all shares in the company. Own shares may be repurchased in order to develop the company's capital structure, to finance or carry out acquisitions or other business transactions, or to be used as part of the company's incentive schemes. For said purposes, the repurchased shares may be held, cancelled or transferred further. 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 effective until the next AGM.

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 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. The amount of the authorisation corresponded to approximately 13.76 per cent of all shares in the company. The authorisation is to 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 to 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 from 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.

Personnel and organisation

At the end of the period, the number of Group personnel was 83 (103 on 31 December 2012). The Asset Management segment had 61 (81) employees, the Corporate Finance segment 13 (13) employees and the Investments segment 1 (1) employee. Group administration had 8 (8) employees. The personnel of the Asset Management segment comprises four persons with fixed-term employment. Of the personnel, 79 persons (99) worked in Finland and 4 persons (4) in other Scandinavian countries.

As a result of the co-determination negotiations concerning the entire personnel conducted by eQ Plc's subsidiaries eQ Asset Management Ltd, eQ Fund Management Company Ltd, Icecapital Asset Management Ltd and Icecapital Fund Management Company Ltd in November 2012, the company agreed with 18 persons on the termination of their employment at the beginning of 2013. The aim of the plan handled during the negotiations was to remove overlapping functions generated through the acquisition of Icecapital Asset Management Ltd and its subsidiaries and to improve the Group's competitiveness by adapting costs.

The overall salaries paid to the employees of eQ Group during the period under review totalled EUR 5.6 million (EUR 3.8 million from 1 Jan. to 30 Sept. 2012). The comparison figure does not comprise the salaries of the Icecapital Asset Management companies acquired on 19 November 2012. The figures are, therefore, not comparable.

Major risks and short-term uncertainties

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. On the other hand, the management fees of private equity funds are based on long-term agreements that produce a stable cash flow.

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 diversified, which means that the impact of one investment in a company, made by one individual fund, on the yield of the investments is often small. The income from eQ Group's own investment operations is recognised for eQ in different 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.

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 period under review. If the announced exits will be carried out according to plan, the cash flow from the exits that eQ will receive after the period under review, in the fourth quarter of 2013 or the first quarter of 2014, is estimated to be about EUR 2.2 million, of which the estimated distribution of profits accounts for about EUR 0.5 million.

After the period under review, the eQ PE VI North investment programme, established and managed by eQ, grew to EUR 64 million on 1 October 2013, when the eQ PE VI North Fund had its first close. The investment programme consists of a EUR 30 million programme launched in Q2 2013 for a local institutional investor, and a EUR 34 million fund, eQ PE VI North LP. The fund will continue to raise assets, and the final close will take place before the summer of 2014. eQ Plc made an investment commitment of EUR 3.0 million in the eQ PE VI North Fund in connection with the first close.

eQ's fund selection was complemented with a new fixed-income fund on 15 October 2013 as eQ LCR Income was launched.

After the end of the period on 15 October 2013, the Group increased its holding in eQ Asset Management Denmark A/S from 85 to 100 per cent. The company assesses that the change in holding will not have any major impact on the profit attributable to the equity holders of the parent company.

After the period under review, Advium acted as Pöyry PLC's advisor when Pöyry agreed to carry out a sale and lease back of its global headquarters in Vantaa, Finland, to Swedish Niam Nordic Core Plus fund.

eQ Plc Board of Directors

TABLES

Principles for drawing up the report

This interim report has been prepared in accordance with the IFRS standards and the IAS 34 Interim Financial Reporting standard approved by the EU.

From the beginning of the financial period 2013, the Group has changed the manner of presenting the Group's IFRS income statement and balance sheet in a manner allowed by IFRS. From the beginning of 2013, the Group presents the income statement and balance sheet in the manner commonly used by investment firms. The manner of presentation was changed, as the main emphasis of the Group's business lies on investment firm operations. The comparison figures of the interim report have been regrouped according to the new manner of presentation. The change in the manner of presentation does not have any impact on the figures presented now or earlier, as the changes only relate to the way of grouping income statement and balance sheet items. When preparing the interim report, eQ has applied the same principles as in the financial statements for the year 2012, and the calculation formulas of the key ratios have been presented in the financial statements.

As for the net investment income from own investment operations, eQ Group's net sales are recognised for eQ in different quarters due to factors independent of the company.

The interim report has not been audited.

CONSOLIDATED INCOME STATEMENT, EUR 1 000

	7-9/13	7–9/12	1–9/13	1–9/12	1–12/12

Fee and commission income	3 496	2 691	11 025	7 771	11 435
Net income from foreign exchange dealing	-8	-	-16	-	4
Interest income	4	1	12	14	30
Net income from available-for-sale financial assets	469	4 090	2 930	5 059	5 080
Operating income, total	3 961	6 781	13 951	12 844	16 548

Fee and commission expenses	-74	-41	-210	-124	-179
Interest expenses	-4	-8	-58	-23	-74
NET REVENUE	3 883	6 733	13 684	12 697	16 295

Administrative expenses
Personnel expenses	-2 011	-1 394	-5 649	-3 847	-6 509
Other administrative expenses	-473	-363	-1 709	-1 325	-1 952

Depreciation on tangible and intangible assets	-314	-305	-939	-910	-1 246
Other operating expenses	-507	-329	-1 568	-1 001	-1 920
OPERATING PROFIT (LOSS)	579	4 342	3 818	5 614	4 668

Share of associated companies' results	-1	-	-71	-	-35
PROFIT BEFORE TAXES	578	4 342	3 746	5 614	4 632

Income tax	-197	-1 113	-1 168	-1 404	-1 247
PROFIT (LOSS) FOR THE PERIOD	381	3 229	2 579	4 210	3 386

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	7-9/13	7–9/12	1–9/13	1–9/12	1–12/12

Other comprehensive income:
Items that may be reclassified subsequently to
the income statement:
Available-for-sale financial assets, net	-178	-3 063	-566	-1 153	-938
Translation differences	11	-	15	-	-5
Other comprehensive income after taxes	-167	-3 063	-551	-1 153	-943
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	215	166	2 027	3 057	2 443


Profit for the period attributable to:
Equity holders of the parent company	390	3 229	2 623	4 210	3 364
Non-controlling interests	-8	-	-44	-	22

Comprehensive income for the period attributable to:
Equity holders of the parent company	223	166	2 072	3 057	2 421
Non-controlling interests	-8	-	-44	-	22


Earnings per share calculated from the profit of equity
holders of the parent company:
Earnings per average share, EUR	0.01	0.10	0.07	0.13	0.10
Diluted earnings per average share, EUR	0.01	0.10	0.07	0.13	0.10

CONSOLIDATED BALANCE SHEET , EUR 1 000

	30 Sept.	30 Sept.	31 Dec.
	2013	2012	2012

ASSETS

Liquid assets	26	16	33
Claims on credit institutions	6 442	12 505	9 356
Claims on the public and public sector entities	1 300	1 336	1 336

Available-for-sale financial assets
Financial securities	50	50	50
Private equity investments	32 725	39 149	38 691

Shares in associated companies	-	400	365

Intangible assets	30 721	18 472	29 174
Tangible assets	114	127	138

Other assets	1 889	1 505	3 634
Accruals and prepaid expenditure	1 438	353	1 196

Income tax receivables	1 345	130	289
Deferred tax assets	684	70	57
TOTAL ASSETS	76 736	74 113	84 319

LIABILITIES AND EQUITY

LIABILITIES

Liabilities to credit institutions	-	-	4 000
Other liabilities	1 848	1 057	2 680
Accruals and deferred income	2 077	1 089	3 076
Income tax liabilities	475	287	84
Deferred tax liabilities	930	866	875
TOTAL LIABILITIES	5 331	3 299	10 715

EQUITY

Attributable to equity holders of the parent company:
Share capital	11 384	11 384	11 384
Fair value reserve	-2 051	-1 699	-1 484
Translation difference	10	-	-5
Reserve for invested unrestricted equity	52 167	48 635	51 875
Retained earnings	7 600	8 284	8 394
Profit (loss) for the period	2 623	4 210	3 364
Attributable to non-controlling interests	-329	-	77
TOTAL EQUITY	71 405	70 814	73 604

TOTAL LIABILITIES AND EQUITY	76 736	74 113	84 319

CONSOLIDATED CASH FLOW STATEMENT, EUR 1 000

	1-9/2013	1-9/2012

CASH FLOW FROM OPERATIONS
Operating profit	3 818	5 614
Depreciation and write-downs	939	910
Financial income and expenses	46	9
Transactions with no related payment transactions	253	65
Available-for-sale investments, change	4 676	1 507

Change in working capital Business receivables, increase (-) / decrease (+)	1 323	-1 937
Interest-free debt, increase (+) / decrease (-)	-1 776	-961
Total change in working capital	-453	-2 898

Cash flow from operations before financial items and taxes	9 280	5 206
Interests received	12	14
Interests paid	-58	-23
Taxes	-2 028	-1 185

CASH FLOW FROM OPERATIONS	7 206	4 012
CASH FLOW FROM INVESTMENTS
Acquisition of subsidiaries excluding acquired cash	-1 742	-
Investments in intangible and tangible assets	-265	-40

CASH FLOW FROM INVESTMENTS	-2 007	-40
CASH FLOW FROM FINANCING
Dividends paid	-4 411	-3 996
Income from share issue	291	2 004
Repayment of loans	-4 000	-

CASH FLOW FROM FINANCING	-8 119	-1 992

INCREASE/DECREASE IN LIQUID ASSETS	-2 920	1 981

Liquid assets on 1 Jan. Liquid assets on 30 Sept.	9 389 6 469	10 540 12 521

CHANGE IN CONSOLIDATED SHAREHOLDERS' EQUITY, EUR 1 000

		Equity attributable to equity holders of the parent company
	Share capital	Reserve for invested unrestricted equity	Fair value reserve	Translation differences	Retained earnings	Total	Share of non controlling interests	Total equity
Shareholders' equity on 1 Jan. 2012	11 384	46 631	-546	-	12 215	69 684	-	69 684
Profit (loss) for the period Other comprehensive income					4 210	4 210		4 210
Available-for sale financial assets			-1 153			-1 153		-1 153
Total comprehensive income			-1 153		4 210	3 057		3 057
Share issue Dividend distribution		2 004			-3 996	2 004 -3 996		2 004 -3 996
Other changes					-9	-9		-9
Options granted					74	74		74
Shareholders' equity on 30
Sept. 2012	11 384	48 635	-1 699	-	12 494	70 814	-	70 814

Shareholders' equity on 1 Jan. 2013	11 384	51 875	-1 484	-5	11 758	73 528	77	73 604
Profit (loss) for the period Other comprehensive income					2 623	2 623	-44	2 579
Available-for sale financial assets			-566			-566		-566
Translation differences				15		15		15
Total comprehensive income			-566	15	2 623	2 072	-44	2 027
Dividend distribution					-4 411	-4 411		-4 411
Share issue		291				291		291
Options granted					252	252		252
Other changes					2	2		2
Changes in subsidiary
holdings							-361	-361
Shareholders' equity on 30
Sept. 2013	11 384	52 167	-2 051	10	10 223	71 733	-329	71 405

FAIR VALUES OF FINANCIAL ASSETS AND LIABILITIES, EUR 1 000

	30 Sept. 2013			30 Sept. 2012	31 Dec. 2012
	Fair	Book	Fair	Book	Fair	Books
	value	value	value	value	value	value
Financial assets
Available-for-sale financial assets
Private equity investments	32 725	32 705	39 149	39 149	38 691	38 691
Financial securities	50	50	50	50	50	50
Loan receivables	1 300	1 300	1 336	1 336	1 336	1 336
Accounts receivable and other
receivables	4 672	4 672	1 988	1 988	5 119	5 119
Liquid assets	6 469	6 469	12 521	12 521	9 389	9 389
Total	45 216	45 196	55 043	55 043	54 586	54 586

Financial liabilities
Liabilities to credit institutions	-	-	-	-	4 000	4 000
Accounts payable and other liabilities	4 401	4 401	2 433	2 433	5 840	5 840
Total	4 401	4 401	2 433	2 433	9 840	9 840

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 the accounting principles. The original book value of accounts receivable and accounts payable corresponds to their fair value, as the impact of discounting is not essential taking into account the maturity of the receivables and liabilities.

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

	30 Sept. 2013
	Fair value	Level 3
Available-for-sale financial assets
Private equity investments	32 725	32 725
Financial securities	50	50
Total	32 775	32 775

Level 3 reconciliation – Available-for-sale financial assets:

	Private
	equity	Financial
	investments	securities	Total
Opening balance on 1 Jan. 2013	38 691	50	38 741
Calls	1 798	-	1 798
Returns	-6 464	-	-6 464
Impairment loss	-550	-	-550
Change in fair value	-750	-	-750
Closing balance on 30 Sept. 2013	32 725	50	32 775

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

SEGMENT INFORMATION, EUR 1 000

7-9/13	Asset Management	Corporate Finance	Investments		Other Eliminations	Group total
External income, net Income from other	3 070	345	469	-1	-	3 883
segments, net	100		-100	19	-19
Net revenue	3 170	345	369	19	-19	3 883
Operating profit	649	-41	369	-397	-	579
Share of associated companies' results	-1	-	-	-	-	-1
Profit for the period	648	-41	369	-594	-	381

7-9/12	Asset Management	Corporate Finance	Investments	Other	Eliminations	Group total
External income, net Income from other	2 076	575	4 090	-7	-	6 733
segments, net	100		-100	18	-18
Net revenue	2 176	575	3 990	11	-18	6 733
Operating profit	542	134	3 990	-324	-	4 342
Profit for the period	542	134	3 990	-1 437	-	3 229

1-9/13	Asset Management	Corporate Finance	Investments		Other Eliminations	Group total
External income, net	9 573	1 229	2 930	-48	-	13 684
Income from other segments, net	300		-300	57	-57
Net revenue	9 873	1 229	2 630	9	-57	13 684
Operating profit	2 337	72	2 630	-1 222	-	3 818
Share of associated
companies' results	-71	-	-	-	-	-71
Profit for the period	2 266	72	2 630	-2 389	-	2 579

1-9/12	Asset Management	Corporate Finance	Investments	Other	Eliminations	Group total
External income, net	6 100	1 547	5 059	-9	-	12 697
Income from other
segments, net	300		-300	55	-55
Net revenue	6 400	1 547	4 759	46	-55	12 697
Operating profit	1 447	359	4 759	-951	-	5 614
Profit for the period	1 447	359	4 759	-2 355	-	4 210

1-12/12	Asset Management	Corporate Finance	Investments	Other	Eliminations	Group total
External income, net	8 625	2 635	5 080	-44		16 295
Income from other
segments, net	400	-	-400	73	-73	-
Net revenue	9 025	2 635	4 680	29	-73	16 295
Operating profit	912	725	4 680	-1 648		4 668
Share of associated
companies' results	-35	-	-	-		-35
Profit for the period	876	725	4 680	-2 895		3 386

The 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, to the net revenue. Under the item Other segments, income from other segments comprises the administrative services produced by Group administration to other segments, and external net income comprises the undivided interest income and expenses. The line operating profit under item Other segments presents the undivided personnel, administration and other expenses allocated to Group administration. In addition to the above, the taxes not distributed to the segments have been presented on line profit for the period, 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.

GROUP KEY RATIOS

	30 Sept.	30 Sept.	31 Dec.
	2013	2012	2012

Profit (loss) for the period to the equity holders of the parent
company (EUR 1 000)	2 623	4 210	3 386
Earnings per average share, EUR	0.07	0.13	0.10
Diluted earnings per average share, EUR	0.07	0.13	0.10
Equity per share, EUR	1.96	2.05	2.03
Equity per average share, EUR *)	1.96	2.12	2.21
Return on investment, ROI % p.a.	4.7	8.0	4.7
Return on equity, ROE % p.a.	4.7	8.0	4.7
Equity to assets ratio, %	93.1	95.5	87.3
Group's capital adequacy ratio, %	32.7	62.8	42.3
Share price at the and of the period, EUR	2.44	1.85	2.00
Number of personnel at the end of the period	83	64	103

*) Weighted average number of shares outstanding.

RELATED PARTY TRANSACTIONS

Open balances with key persons belonging to the company management

On 4 September 2012, eQ Plc's Board decided 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 Managing Director of eQ Asset Management Ltd and member of eQ Group's Management Team for financing a purchase of shares in eQ Plc as part of the management's long-term incentive scheme. On 30 September 2013, EUR 1.3 million of this loan was an open receivable.

The acquired shares in eQ Plc function as security for the loan. The interest rate of the loan is market-based. The entire loan will be repaid within five years at the latest. The company wholly owned by Koskimies has the right to repay the loan prematurely at any time. The transfer of the eQ shares owned by the company is restricted for three years during the duration of the scheme.

Transactions with related parties and receivables from related parties, EUR 1 000

Associated companies - Finnreit Fund Management Company Ltd, associated company till 30 September 2013

	1-9/13	1-9/12
Sales	156	-
Receivables	-	-

REMAINING COMMITMENTS

On 30 September 2013, eQ's remaining commitments in private equity funds totalled EUR 9.7 million (EUR 10.8 million on 31 Dec. 2012). Other commitments at the end of the period under review totalled EUR 0.8 million (EUR 1.2 million on 31 Dec.2012).