Capman Oyj Class B · OMXHEX:CAPMAN
Capman Oyj Class B — 9M 2018 Earnings Presentation
34 slides from Capman Oyj Class B's earnings presentation, Nov 1, 2018
Slide 1: CapMan Plc 1–9/2018 result: CapMan's growth continues
CapMan Plc 1–9/2018 result CapMan’s growth continues Joakim Frimodig, CEO Helsinki, 1 November 2018
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 statements. Forward-looking statements are based on the Company's current CapMan Plc (hereinafter the "Company") or a representative of the Company as expectations, es
Slide 3: We are building a modern and growth-oriented CapMan
We are building a modern and growth-oriented ”New doers” ”New direction” ”New attitude” Renewed management and Clarified vision and new New ways of working and strengthened investment strategic direction company culture teams 3 CapMan Plc 1-9/2018 result 1 Nov 2018
Slide 4: Value Builder
Value Builder Building sustainable value for the enrichment of society Our objective is to offer attractive returns and innovative solutions to investors 4
Slide 5: CapMan today
CapMan today Sijoitustoiminta Investments from our Management Company business Service business omasta own taseesta balance sheet AUM EUR 2.8 bn 110 portfolio companies and Investment capital real estate assets >MEUR 200 >120 LPs as customers 5 CapMan Plc 1-9/2018 result 1 Nov 2018
Slide 6: Agenda
Agenda • Strategy and financial objectives • Growth initiatives and value creation • 1-9/2018 result
Slide 7: CapMan's strategic direction
CapMan’s strategic direction Own balance sheet Broad access to capital INTERNATIONAL NORDIC LOCAL INVESTORS INVESTORS INVESTORS Flexible OPEN-ENDED CLOSED FUNDS MANDATES, SERVICES products FUNDS CLUBS, OTHERS PRIVATE EQUITY & REAL ESTATE INFRA CAPS CREDIT Value added (NRE Buyout funds Infra fund Act
Slide 8: We are building CapMan into a leading Nordic private asset manager
We are building CapMan into a leading Nordic private asset manager Increasingly flexible Active approach to Expanding investor and diverse value-creation base investment products
Slide 9: Alternative investments interest
Alternative investments interest: Institutional investor plans for the coming 12 months Invest LESS capital than in the past 12 months Invest MORE capital than in the past 12 months 14% Private Equity 29% 17% Real Estate 30% 8% Infrastructure 43% 14% Private Debt 31% 13% Natural Resources 30% 19% He
Slide 10: Agenda
Agenda • Strategy and financial objectives • Growth initiatives and value creation • 1-9/2018 result
Slide 11: CapMan's earnings model
CapMan’s earnings model Management Company Services business Investment business business Buyout Procurement Fund investments Growth Fund advisory services Market portfolio Russia Fees Realised returns and Credit changes in fair value Real Estate Infra Fees (incl. management fees and performance fee
Slide 12: The strategic direction impacts the earnings model
The strategic direction impacts the earnings model: More stability and predictability CapMan historically CapMan today CapMan in the future – long- term objective Carry ROE 20% (Objective for average ROE) Balance sheet return Carry Balance sheet return Fees Carry Carry Fees Time Time Time Illustrati
Slide 13: Current business portfolio complemented with new products
Current business portfolio complemented with new products Higher fee income, more stability, reduced market risk CapMan’s long-term focus areas… Traditional High Launched in 2017-2018 Growth …to be complemented with new products and services Buyout NRE New Private Equity Long term value products ups
Slide 14: Growth strategy progress
Growth strategy progress Target 2018 >10% The effect of year 2017 growth annual investments growth 2017 Additional investments: Significant investments in to growth: • Infra fund first close, fundraising Real Estate • CMNRE II fund establishment continues • CMNPI fund establishment • Preparations
Slide 15: CapMan establishes infrastructure fund
CapMan establishes infrastructure fund CapMan Nordic Infrastructure I >MEUR 300 MEUR 115 10/2018 2019 The fund invests especially in core/core+ infrastructure in the energy, transportation and CapMan Infra Managing Partner telecommunications sectors Ville Poukka nominated to the Management CapMan’s
Slide 16: Growth efforts continue
Growth efforts continue Key near term growth projects Fundraising of Infra New Buyout fund Mandates fund • First close, fundraising • Launching fundraising in 2018 • New, tailor-made mandates for proceeding well limited investor groups • Target size of the fund is above • MEUR 500 BVK mandate and ME
Slide 17: Agenda
Agenda • Strategy and financial objectives • Growth initiatives and value creation • 1-9/2018 result
Slide 18: Highlights for 1-9/2018
Highlights for 1-9/2018 Fee growth from the Fee profitability EPS comparable period MEUR 5 7.5 cents 24% Very successful MEUR 115 exit from 15 exits in total raised for the Fluido Infra fund 18 CapMan Plc 1-9/2018 result 1 Nov 2018
Slide 19: Turnover and operating profit
Turnover and operating profit MEUR Turnover MEUR Operating profit 40 25 22.9 34.8 19.5 20 17.8 30 26.0 27.1 14.9 15 19.9 20 16.6 10.5 10.1 10 10 7.5 8.5 4.1 5 0 0 1-3 1-6 1-9 1-12 1-3 1-6 1-9 1-12 2017 2018 2017 2018 Idean Q1 2017: €9.4 million 19 CapMan Plc 1-9/2018 result 1 Nov 2018
Slide 20: Fee development and development of fee based profitability
Fee development and development of fee based profitability MEUR Fees (excluding carry), LTM MEUR Comparable operating profit (excluding 32 carry), LTM 6 31 30 1-9 2018 5 +24% +MEUR 5 29 YoY 1-9 2018 4 28 3 27 2 26 25 1 24 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2016 2017 2017 2017 2017 201
Slide 21: Turnover development by segment
Turnover development by segment 25 23.9 Dividend and interest Management Company business + income from financial 19.4 Service business + assets held for trading 20 Investment business + Others and eliminations 15 = MEUR 27.1 MEUR 10 +24% 5 3.5 3.1 2.3 0.9 0 Palkkiot Fees Carried interest Voitonjako
Slide 22: Operating profit development by segment
Operating profit development by segment 19.4 12 Idean 9.4 10.4 Management Company business + 10 Service business + Investment business + 8 Others and eliminations = MEUR 14.9* MEUR 6 5.0 4 3.1 2.6 2 0.9 0 Fees Palkkiot Carried interest Voitonjako-osuustuotot Investment business Sijoitustoiminta 1-9/
Slide 23: Management Company business: management fees grew
Management Company business: Management fees grew from the comparable period Private Real Infra & New capital raised during the last 18 Equity Estate Credit months Fund AUM, Established • Buyout • NRE funds • Mezzanine funds MEUR • Growth • NPI fund (Nest Capital) • Russia • Hotel fund • Infra manda
Slide 24: Service business: Turnover +64% and strong profitability
Service business: Turnover +64% and strong profitability Events 1-9/2018: MEUR Turnover from Service business was MEUR 6.6. CaPS 6.6 Turnover growth was fuelled by strong growth in net sales 64% of CaPS and success fees of Scala Fund Advisory. Contract volumes of CaPS reached MEUR 130, 23% growth Ca
Slide 25: Investment business: continued strong activity
Investment business: Continued strong activity during the review period New exits and investments during the Events 1-9/2018: review period: Growth Equity CapMan Growth fund successfully exited Fluido and invested in two fast growing Finnish companies during the review period. 1,8 MEUR The operating
Slide 26: Strong investment activity during the review period
Strong investment activity during the review period New investments Exits (Growth Equity) (Infra) (Buyout) (Growth Equity) (Buyout) (Growth Equity) (Buyout) (Buyout) (Buyout) (Russia) (Buyout) 8 deals across the 9 deals across 26 CapMan Plc 1-9/2018 result 1 Nov 2018 Nordics Finland
Slide 27: The role of CapMan's balance sheet
The role of CapMan’s balance sheet Support growth and operations Support in achieving Ensure stable targeted dividend returns development 27 CapMan Plc 1-9/2018 result 1 Nov 2018
Slide 28: CapMan's own investments 30 September 2018
CapMan’s own investments 30 September 2018 The trading portfolio was reduced by MEUR 20 as planned during Private Assets in total the review period. 47% Funds from the trading portfolio were mainly MEUR MEUR allocated to new, own 100 89 Target allocation funds. 80% Capman has made a By the end of 20
Slide 29: CapMan's business and stock market development
CapMan’s business and stock market development The impact The stock market’s role in CapMan’s result Strategic of market formation impact volatility Management fees + Fee leveles are pre-defined, no direct impact service fees from the market Carried interest Timing of exits and valuation Fair value
Slide 30: Financial objectives
Financial objectives Growth of the Return on equity Equity ratio Dividend Management distribution Company and objective Service business The company’s objective is >10% >20% >60% to pay an annually increasing dividend to its Average annual growth shareholders. On average objective Achieved 1-9/2018:
Slide 31: CapMan wants to be an even better dividend payer
CapMan wants to be an even better dividend payer Updated dividend policy: CapMan’s objective is to pay an annually increasing dividend to its shareholders 14 Ability to pay an 12 11 increasing dividend: 10 9 • Strong result profile and 8 7 cash flow 6 6 • Significant liquid and 4 distributable asset
Slide 32: Outlook estimate for 2018
Outlook estimate for 2018 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 per cent p.a. on average.
Slide 33: Largest shareholders 30 September 2018
Largest shareholders 30 September 2018 Shareholder Shares and Share of shares votes (#) and votes (%) >18 000 shareholders 1 Ilmarinen Mutual Pension Insurance Company 10,737,228 7.31 2 Mandatum Life Insurance Company Limited 10,464,415 7.12 3 OY Inventiainvest AB 7,024,794 4.78 4 Laakkonen Mikko Ka
Slide 34: IR calendar and IR team
IR calendar and IR team IR calendar 2018 IR team • Capital Markets Day 2018 28 Nov 2018 Joakim Frimodig, CEO tel. +358 50 529 0665 Savoy, Eteläesplanadi 14, Helsinki [email protected] Niko Haavisto, CFO tel. +358 207 207 583 [email protected] Linda Tierala, Manager, Communications &