Capman Oyj Class B · OMXHEX:CAPMAN
Capman Oyj Class B — 1-9 2019 Earnings Presentation
23 slides from Capman Oyj Class B's earnings presentation, Oct 31, 2019
Slide 1: Continued growth - CapMan 1-9 2019 results
Continued growth C A P M A N P LC CapMan 1-9 2019 1-9 2019 results Jo a k i m Fr i m o d i g CEO 31 O ct o ber 2019
Slide 2: Statements regarding future development and disclaimer
Statements regarding future development and disclaimer The following concerns this document, the related oral presentation by either Forward-looking statements are based on the Company's current expectations, CapMan Plc (hereinafter the "Company") or a representative of the Company as well estimates
Slide 3: Strong growth continues
Strong growth continues Solid execution of growth Fee-based profitability at all strategy Improved return profile time high Turnover +30% ROE 15%* EBIT +17%* €12m (LTM) Fair value uplift and carry Balance sheet is strong Objective to pay an potential in funds FV change +10% p.a. annually increasing
Slide 4: CapMan's business model
CapMan’s business model Management Company Service business Investment business business (own balance sheet) AUM P R I V AT E E Q U I T Y €3.2B and CaPS ~€200M CREDIT PROCUREMENT INVESTMENT C A P I TA L Investments R E A L E S TAT E >110 Investments in F U N D A DV I S O RY private assets, Instituti
Slide 5: Solid development across business segments
Solid development across business segments Management Company Service business Own investments business • Net growth in AUM €600m y/y • Service business grew by +89% in • Annualised return of all • Positive development in 1-9 2019 investments 9% in 1-9 2019 management fee based • All services contri
Slide 6: Comparable turnover and operating profit
Comparable turnover and operating profit MEUR Turnover MEUR Operating profit 40 20 18 17,4 35 33,5 32,4 16 14,9 30 14 24,8 12,0 25 11,9 22,6 12 10,1 20 17,8 10 8 15 6 5,6 9,3 10 4,1 7,3 4 5 2 0 0 1-3 1-6 1-9 1-12 1-3 1-6 1-9 1-12 2018 2019 2018 2019 Dividend and interest income from market portfolio
Slide 7: The strategic direction impacts the earnings model
TOWARDS MORE STABILITY AND PREDICTABILITY The strategic direction impacts the earnings model CapMan historically CapMan today CapMan in the future ROE 20% Carry (Objective for average ROE) Balance sheet return Carry Balance sheet return Fee profit Carry Carry Fee profit Time Time Time 7 Illustrative
Slide 8: The change in earnings model is visible in 2019
EBIT SPLIT The change in earnings model is visible in 2019 2017 2018 1-9 2019 11 % 17 % 41 % 45 % 48 % 51 % 72 % 7% 8% Investments Carry Fee business Split in operating profit adjusted for items affecting comparability and not including segment Others and 8 eliminations
Slide 9: Fee-based profitability has grown 12 consecutive quarters
STEADILY IMPROVING PERFORMANCE Fee-based profitability has grown 12 consecutive quarters €1,000 Fees excluding carry (LTM) €1,000 Comparable fee-based profitability 42 000 excluding carry (LTM) 14 000 40 000 12 000 38 000 36 000 LTM 10 000 €11.5m +26% All-time 34 000 8 000 high 32 000 6 000 30 000 4
Slide 10: Positive development of comparable operating profit
1-9 2018 VS. 1-9 2019 Positive development of comparable operating profit MEUR +17% MEUR 1-9 2018 1-9 2019 1.6 20 6.7 20 17.4 2.5 -2.7 14.9 15 7.9 15 -1.4 1.5 10.3 10 10 0.9 5.0 5 5 0 0 Others and eliminations for 1-9 2019 have been adjusted for total expenses of MEUR 1.2 related to 1 0 acquistions
Slide 11: Increased share of own private market investments
INVESTMENT ALLOCATION 30 SEPTEMBER 2019 Increased share of own private market investments 30 September 2018 30 September 2019 Developments Investments in private markets 41,3 38,4 70% 47% Total 88,9 Total €189m 10,8 €163m Outstanding commitments of €105m (30 Sep 2019) 113,4 will shift allocation fur
Slide 12: Strong balance sheet provides financial flexibility
SELECTED BALANCE SHEET FIGURES Strong balance sheet provides financial flexibility 30 September 2019 30 September 2018 Multi-issuer bond (Q2 2019), MEUR 0 10 Senior bond (Q2 2023), MEUR 50 50 Long-term credit facility (undrawn), MEUR 40 20 Interest-bearing net debt, MEUR 15 18 Equity ratio, % 60 58
Slide 13: Significant return potential from own fund investments
SPLIT OF AUM AND CAPMAN’S OWN FUND INVESTMENTS Significant return potential from own fund investments 30 September 2019 Private Equity Real Estate Infra Total (MEUR) AUM 995 1,926 262 3,240* Fair value of investments on CapMan’s 66 31 17 113 balance sheet (excl. market portfolio) CapMan’s remaining
Slide 14: Several funds are approaching carry
CARRIED INTEREST POTENTIAL Several funds are approaching carry Funds in carry Funds with accrued carried interest Nordic Real Estate (€273m) Growth Equity (€86m) Buyout X (€245m) Nordic Infra (€141m) fundraising continues Buyout XI (€170m) fundraising continues Pre-2013 2013 2017 2020 CMM V (€95m) N
Slide 15: Growth in AUM during 2020
CURRENT FUNDRAISING PIPELINE Growth in AUM during 2020 Fund Current size Target size Timing & comments Buyout XI €170m €250m Fundraising ongoing, continues into 2020 Nordic Infra I €140m >€300m Fundraising ongoing, continues into 2020 Nordic Property Income €75m - Open-ended fund with a new distribu
Slide 16: CapMan – A Nordic private assets power house
OUR VISION CapMan – A Nordic private assets power house Comprehensive offering Top quartile value Broad investor base and of attractive private creation in Nordic Private access to capital in the assets products and Equity, Private Credit, Nordics and innovative service Real Estate and Infra interna
Slide 17: Our business is becoming more versatile
GROWTH STRATEGY Our business is becoming more versatile Own balance sheet Broad access INTERNATIONAL NORDIC TIER I NORDIC TIER II & III to capital INVESTORS INVESTORS INVESTORS NH BVK Cross-selling Nordea to JAM distrubution Mandate Mandate customers agreement New & flexible OPEN-ENDED FUNDS CLOSED
Slide 18: Long-term financial objectives and recent financial performance
Long-term financial objectives and recent financial performance Growth of the Return on equity Equity ratio Dividend Management distribution Company and objective Services business* The company’s >10% >20% >60% objective is to pay an annually increasing Average annual growth On average dividend to i
Slide 19: Themes for 2019 and next year
Themes for 2019 and next year Management Company Service business Own investments business • Currently ongoing fundraising • Continued profitable growth • Strong return of own fund projects extend over next year of the service fee base investments and we expect significant growth in our capital unde
Slide 20: Objective to pay an annually increasing dividend
DIVIDEND POLICY Objective to pay an annually increasing dividend cents 14 12 12 11 10 9 8 7 6 6 4 4 2 0 0 2012 2013 2014 2015 2016 2017 2018* 2 0 *For 2018, the Company paid a dividend of EUR 0,06 and equity distribution of EUR 0,06.
Slide 21: Financial objectives and outlook estimate for 2019
Financial objectives and outlook estimate for 2019 CapMan’s objective is to pay an annually increasing dividend to its shareholders. The combined growth objective for Management Company and Service business is more than 10 per cent p.a. on average. The objective for return on equity is more than 20
Slide 22: Contact us
Contact us Joakim Frimodig Niko Haavisto Linda Tierala CEO CFO Director, Communications & IR [email protected] [email protected] [email protected] +358 50 529 0665 +358 50 465 4125 +358 40 571 7895 Upcoming events: Inderes financial company evening 11 Nov 2019 2019 Financial S
Slide 23: Helsinki Stockholm Copenhagen
HELSINKI STOCKHOLM COPENHAGEN LONDON LUXEMBOURG MOSCOW