Capman Oyj Class B · OMXHEX:CAPMAN
Capman Oyj Class B — FY2007 Earnings Presentation
37 slides from Capman Oyj Class B's earnings presentation, Jan 31, 2008
Slide 1: CapMan Plc Group's result for 2007
CapMan Plc Group’s result for 2007 Press and analyst conference 31 January 2008 Heikki Westerlund
Slide 2: General trends
General trends • Private equity investment in Europe is expected to show growth in the mid-term and long-term, as substantial investor groups have added private equity investment to their investment allocations. • Real estate market growth is speeded up by accelerated structural change, in which par
Slide 3: Strong market coverage by CapMan teams
Strong market coverage by CapMan teams (between 1Jan 2006– 30 Sep 2007) • CapMan Buyout evaluated 73% of the 93 Nordic middle- market* buyout transactions • CapMan Technology evaluated 70% of the 132 Nordic technology transactions raising more than M€1 • CapMan Life Science evaluated 86% of the 42 N
Slide 4: CapMan among the most active investors within the Nordic middle market
CapMan among the most active investors within the Nordic middle market* (most active private equity investors between 1Jan 2006– 30 Sep 2007) # transactions 7 6 5 4 7 7 3 6 2 4 3 3 3 3 3 3 3 3 1 2 1 0 r to s el 3i l rs rs Al to Ra pM an Axc EQ T F er d pita uity na n u lah T rit on s to s to Ca r i
Slide 5: Credit crunch reflected in deal value Q4 2007 figures
Credit crunch reflected in deal value Q4 2007 figures – lower middle market activity even increased • Mega deals disappeared from European buyout market • Deals below €160 million represented 87% of all buyout activity and increased by ~17% in number and value compared to Q3 2007 Deal value developm
Slide 6: Debt financing available for European middle market transactions
Debt financing available for European middle market transactions • Debt financing continued to be available for under €500 million transactions in Q4 2007 • Moderate entry prices in CapMan Buyout’s investments compared to European levels EV/EBITDA multiple development Total Debt/EBITDA multiple deve
Slide 7: Several Nordic middle market transactions in the second half of 2007
Several Nordic middle market transactions in the second half of 2007 (Examples of middle market buyout transactions announced in H2/2007) Net sales Company Investor (~M€) AH Industries Ratos 50 Aker Material Handling AS Altor 230 Candyking International Ltd Accent Equity 150 Contex Holding A/S Ratos
Slide 8: CapMan's main events in 2007
CapMan’s main events in 2007 €794 million raised 11 new portfolio company Exits from 13 portfolio investments companies Three new funds 16 new real estate Exit from 22 real estate investments properties CapMan Life Science IV CapMan Real Estate II CapMan Technology 2007 (final closing at €142 millio
Slide 9: Dynamic start for 2008
Dynamic start for 2008 • €835 million fund CapMan Hotels RE Ky established – Fundraising continues with maximum fund size €1.1 billion • €142.3 million CapMan Technology 2007 fund closed • 27% growth in capital under management • 39 hotel properties acquired • Two new buyout investments in new busin
Slide 10: Acquired hotels on a map
Acquired hotels on a map Åre, Sweden Inari Holiday Club Saariselkä (139) • 38 hotels in Finland and Holiday Club Åre 1 in Sweden Rovaniemi • 6,477 hotel rooms in 2007 Cumulus Rovaniemi (64) Rantasipi Pohjanhovi (215) Scandic Rovaniemi (167) • Well-known hotel chains as Kemi Cumulus Kemi (184) Kuusam
Slide 11: CapMan – the Nordic alternative asset manager
CapMan – the Nordic alternative asset manager • Specialised listed alternative asset manager – Manages specialised third party private equity, venture capital and real estate funds – Listed on Helsinki Stock Exchange since 2001 – Market cap €222 million incl. A shares (closing price €2.78 on 31 Jan
Slide 12: Strong growth in capital under management
Strong growth in capital under management Capital under mgnt, M€ Domestic partnership Nordic presence and funds MBO LISTING 4 000 3 500 3 000 2 500 2 000 1 500 1 000 500 0 90-93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 01/08 Buyout funds Mezzanine funds Technology funds Life Science funds Real Esta
Slide 13: Components of income and operating costs
Components of income and operating costs (31 Dec 2007, M€) Total effect of own investments €6.2 million 70.0 60.0 5.7 0.2 23.6 0.8 0.5 Turnover 50.0 €51.6 million 27.7 Minority interest 40.0 €7.6 million 1.1 1.9 Pre-tax profit in 2.1 Share of equity holders’ of 30.0 €32.7 million 24.6 the Company €1
Slide 14: Turnover and operating profit in Jan - Dec 2007
Turnover and operating profit in Jan - Dec 2007, M€ Turnover Operating profit 60 60 51.6 50 50 43.6 40 38.0 40 35.6 31.4 28.1 29.0 26.5 29.8 30 30 25.4 18.4 20 20 15.6 12.0 8.9 7.6 10 10 5.2 0 0 1-3 1-6 1-9 1-12 1-3 1-6 1-9 1-12 2006 2007 2006 2007 14 • January 31, 2008
Slide 15: Profit before and after taxes in Jan - Dec 2007
Profit before and after taxes in Jan - Dec 2007, M€ Profit before taxes Profit after taxes 40 40 34.0 35 32.7 35 30 26.7 28.1 30 25.5 24.2 25 25 20.9 19.9 20 17.3 20 15 12.6 15 12.4 9.5 10 7.9 10 5.1 5.9 5 5 3.7 0 0 1-3 1-6 1-9 1-12 1-3 1-6 1-9 1-12 2006 2007 2006 2007 15 • January 31, 2008
Slide 16: Management fees in Jan - Dec 2007
Management fees in Jan - Dec 2007, M€ 30 • The sum of management fees 24.9 24.6 received remained at the level of 25 the previous year: 18.7 18.5 – Increased due to management 20 fees received from funds established during the review 15 period i.e. CapMan Technology 12.4 12.3 2007 and CapMan RE II 1
Slide 17: Carried interest in Jan - Dec 2007
Carried interest in Jan - Dec 2007, M€ 25 23.6 • Carried interest accrued as 22.4 21.2 21.4 follows: 20 – The sale of CapMan Real Estate I’s portfolio accrued €21.0 million, of which the 15 share belonging to the owners of the parent company was 9.4 €13.4 million 10 7.5 – The remaining carried inter
Slide 18: Analysing short-term carried interest potential
Analysing short-term carried interest potential: Funds generating carried interest / old funds 31 Dec 2007 Current portfolio at cost: €166.5 million Current portfolio at fair value: €161.5 million Current portfolios Buyout FV II FV III + III G Fenno Fund Fenno/ Skandia I Fenno/ Skandia II FM II B FV
Slide 19: Funds generating carried interest: Finnventure V
Analysing short-term carried interest: Funds generating carried interest / Finnventure V 31 Dec 2007 Fund size: €169.9 million Portfolio at cost: €59.5 million Portfolio at fair value: €54.5 million Cash flow to investors : €218.1 million Carried interest to CapMan (cumulative): €1.3 million Carried
Slide 20: Funds generating carried interest: CapMan Real Estate I
Analysing short-term carried interest: Funds generating carried interest / CapMan Real Estate I 31 Dec 2007 Fund size: €500.0 million Remaining investment capacity: €56.9 million* Portfolio at cost: €93.1 million Portfolio at fair value: €92.5 million** Cash flow to investors: €183.0 million*** Carr
Slide 21: Fund investments made from own balance sheet
Fund investments made from own balance sheet • Since 2002 CapMan has been a significant investor in the funds managed by the Group • CapMan invests 5-10% of the total capital in CapMan’s equity funds investing in portfolio companies M€ 100 Remaining commitments 64% targeted at CapMan 80 Technology 2
Slide 22: The impact of own fund investments, M€
The impact of own fund investments, M€ • The impact on the Company’s result 9 7.9 totalled €6.2 million 8 – Realised returns €0.5 million (€0.9 7 million) 6.2 – Gains in the fair value of 6 investments €5.7 million (€3.5 4.9 5 4.4 4.4 million) 4 • Fair value losses were recorded in the 3.4 last quar
Slide 23: CapMan Equity VII with large potential
CapMan Equity VII with large potential - impact of own investments and carried interest potential 31 Dec 2007 CAPMAN EQUITY VII A B C Sweden In total Fund size: 156.7 56.5 23.1 67.0 303.3 Portfolio at cost: 84.6 33.4 10.2 36.2 164.4 Portfolio at fair value: 148.4 70.0 9.3 63.6 291,3.0 Cash flow to i
Slide 24: Turnover and result development
Turnover and result development € million 1-12/06 1-12/07 Capital under management 2,549.6 3,016.1 Turnover 38.0 51.6 Management fees 24.9 24.6 Carried interest income 9.4 23.6 Income from real estate consulting 2.0 2.1 Other operating income within turnover 0.8 0.8 The impact of fund investments ma
Slide 25: Income Statement
Income Statement € million 2003 2004 2005 2006 2007 FAS IFRS IFRS IFRS IFRS Turnover 18.7 28.1 28.7 38.0 51.6 Management fees 17.8 17.8 20.3 24.9 24.6 Carried interest 0.2 9.1 6.6 9.4 23.6 Income of investments in funds - 0.2 0.5 0.9 0.5 Income from real estate consulting 0.9 2.0 2.1 Other income -
Slide 26: Key figures
Key figures 2003 2004 2005 2006 2007 FAS IFRS IFRS IFRS IFRS Earnings per share, € 0.02 0.06 0.09 0.15 0.24 Diluted, € 0.02 0.06 0.09 0.15 0.24 Shareholders’ equity / share, € 0.61 0.59 0.64 0.74 0.86 Dividend / share, €* 0.05 0.06 0.07 0.12 0.16 Dividend / result, %* 327.0 94.4 78.0 80.0 67.0 Divid
Slide 27: Fundraising
Fundraising • Final closing of CapMan Technology 2007 at a level of €142.3 million on 23 January 2008 • Final closing of CapMan Life Science IV on 24 May 2007 at €54 million • Final closing of CapMan RE II on 3 April 2007 at €600 million – 25% equity and 75% senior loan • Establishment of CapMan Hot
Slide 28: New portfolio company investments since 1 Jan 2007
New portfolio company investments since 1 Jan 2007 Komas Oy, Mirasys Oy Buyout, Finland Technology, Finland Skandia Autologistics, Novintel Oy Buyout, Finland Technology, Finland Walki Group Movial Oy Buyout, Finland Technology, Finland Nacka Närsjukhus Proxima AB IT 2 Treasury Solutions Buyout and
Slide 29: New real estate investments since 1 Jan 2007
New real estate investments since 1 Jan 2007 Kalevankatu 20, Malminkaari 9, Ludviginkatu 3–5, Ylistönmäentie 33, Helsinki Helsinki Helsinki Jyväskylä Kasarmikatu 4, Entresse Elimäenkatu 9A Kristiinankatu 3–5, Hämeenlinna Shopping Centre, and 9B, Turku Espoo Helsinki Parolantie 104, Mastola Logistics
Slide 30: Exits since 1 Jan 2007
Exits since 1 Jan 2007 Sale of CapMan Real Distocraft Oy, Estate I portfolio Technology, Finland (22 real estates) SysOpenDigia Plc(ex- LindPlast A/S Sentera Plcj), Buyout, Denmark Technology, Finland Synerco AB MediaNorth Oy Buyout, Sweden Technology, Finland Copterline Oy Avitec Oy Buyout, Finland
Slide 31: Strategy
Strategy • CapMan’s strategy is to exploit growth opportunities within the alternative asset class. • In addition to CapMan’s existing business lines (Private Equity and Real Estate) the alternative asset class includes, among others, infrastructure investment, forestry investment and active public
Slide 32: Future outlook
Future outlook • Management fees and returns on real estate consulting operations cover CapMan’s fixed expenses. • The Group’s result for 2008 will depend on how many new exits are made by funds already generating carried interest; on whether new funds transfer to carry; and on how the value of inve
Slide 33: IR contacts
IR contacts Heikki Westerlund, CEO, Senior Partner tel. . +358 207 207 504 [email protected] Jerome Bouix, Senior Partner, Head of Investor Services tel. +358 207 207 558 [email protected] Kaisa Arovaara, CFO tel. +358 207 207 583 [email protected] Mari Maunula, Fundraising
Slide 34: Share price development (12 months rolling)
Share price development (12 months rolling) € 4.2 4.0 40 3.8 35 3.6 30 3.4 3.2 25 3.0 20 2.8 15 2.6 10 2.4 2.2 5 2.0 0 1.8 1.6 -5 1.4 -10 1.2 -15 1.0 29/01/0729/03/07 29/05/07 29/07/07 29/09/07 29/11/07 29/01/08 29/01/07 29/03/07 29/05/07 29/07/07 29/09/07 29/11/07 29/01/08 CapMan B CapMan 2003A sto
Slide 35: All Senior Partners shareholders of CapMan Plc
All Senior Partners shareholders of CapMan Plc 31 Dec 2007 • CapMan Partners B.V. form the second largest shareholder and the largest user of voting rights Ownership of CapMan Plc Ownership of CapMan Plc Senior Partners (by shares) (by voting rights) 28% 39% 37% 6% 66% 24% Current 14 Senior Partners
Slide 36: CapMan's ownership
CapMan’s ownership 31 December 2007 6% 3% 29% 10% 35% 36% 14% 36% 31% CapMan Partners B.V. and employee shareholders Nominee registed and foreign shareholders Nominee registered and foreign shareholders Corporations Other owners Households Non-profit and public sector institutions CapMan Partners B.
Slide 37: CapMan Plc's 12 largest shareholders
CapMan Plc’s 12 largest shareholders 31 December 2007 Shares % Votes % Aristo Invest Oy + Ari Tolppanen* 10.8 % 14.7 % CapMan Partners B.V. 6.3 % 23.9 % Winsome Oy + Tuomo Raasio* 4.7 % 7.4 % Vesasco Oy 4.1 % 2.4 % Heiwes Oy + Heikki Westerlund* 3.7 % 4.0 % Geldegal Oy + Olli Liitola* 3.5 % 7.4 % Th