Capman Oyj Class B · OMXHEX:CAPMAN
Capman Oyj Class B — H1 2008 Earnings Presentation
35 slides from Capman Oyj Class B's earnings presentation, Aug 8, 2008
Slide 1: CapMan Plc Interim Report 1 Jan – 30 Jun 2008
CapMan Plc Interim Report 1 Jan – 30 Jun 2008 Press and analyst conference 8 August 2008 Heikki Westerlund
Slide 2: Business environment
Business environment • The demand for alternative assets has continued its growth, and an increasing number of institutional investors are allocating a growing proportion of their investments to this asset class. • The nervousness of debt markets has been reflected in CapMan’s operating area also. •
Slide 3: The trend towards the small-cap end of the market continued over Q2 2008
The trend towards the small-cap end of the market continued over Q2 2008 European buyout activity • Significant increase in <€160 million deals in terms of both volume and value • Improvement also in large deals - five >€1.65bn deals done in March–June Deal value by size range Deal number developmen
Slide 4: Value of real estate transactions in the Finnish property market in H1 at year 2007 level
Value of real estate transactions in the Finnish property market in H1 at year 2007 level • Q2 quiet – large transactions, CapMan Hotels RE and Kamppi shopping centre, explain the high value in Q1 2008 • Foreign buyers still active Deal value development in Finnish propety market 7 € billion 6 5 4 3
Slide 5: CapMan – alternative asset manager in Nordic and Russia
CapMan – alternative asset manager in Nordic and Russia • 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 €176.0 million incl. A shares (closing price €2.2
Slide 6: CapMan’s growth strategy
CapMan’s growth strategy 2008 Expansion to Russia Establishment of a fund investing in public markets 2005 Expansion to real estate investments 2001–2004 Offices in Denmark, Sweden and Norway Public Market 2001 Listing in Helsinki Russia Stock Exchange Real Estate 1994 Life Science Real Estate MBO M
Slide 7: Expansion to Russia
Expansion to Russia • On 26 May CapMan Plc signed an agreement to acquire the management companies of Norum Russia Fund III from the company’s senior management, DnB NOR Bank ASA and Sitra Management Ltd. • In the first phase 51% of the management company’s and 100% of the advisory company’s share c
Slide 8: CapMan Public Market fund
CapMan Public Market fund • On 11 July 2008 CapMan Plc established a new equity fund, CapMan Public Market, investing in Nordic public companies. • €90 million in investment commitments had been raised by the first closing, of which CapMan Plc’s share is €15 million. Fundraising continues. • The fun
Slide 9: The sale of Access Capital Partners shares
The sale of Access Capital Partners shares • On 25 July 2008 CapMan Plc signed an Assets under management, agreement for the sale of its 35 per cent stake € million to N+1 Group. 2,500 • The transaction price is at maximum €23.3 million, and the transaction will have an impact of €18.0 million on Ca
Slide 10: CapMan’s investment areas
CapMan’s investment areas CapMan CapMan Private Equity €1.6 billion Real Estate €1.6 billion CapMan CapMan CapMan CapMan CapMan Buyout Technology Life Science Russia Public Market • Manufacturing, • Expansion and • Medical • Manufacturing • Nordic public • Commercial retail and later stage technolog
Slide 11: CapMan’s main events in 2008
CapMan’s main events in 2008 Two new investment areas 5 new portfolio company 4 exits from portfolio companies investments Two new funds 1 split of portfolio company €1,025 million raised 42 new real estate investments 1 affiliated company sold CapMan Technology 2007 CapMan Hotels RE Ky CapMan Russi
Slide 12: Components of income and operating costs
Components of income and operating costs 30 June 2008, M€ Total effect of own investments €-1.1 million 25.0 Turnover 4.1 0.3 0.2 0.0 €19.5 million 20.0 13.6 1.3 -1.3 15.0 -14.6 Pre-tax profit 10.0 €3.7 million 0.2 5.0 Operating profit -0.1 €3.7 million 0.0 Management fees Income from real estate co
Slide 13: Stable income covered operating expenses
Stable income covered operating expenses 16 M€ 14 • Management fees paid by funds and the income from 12 real estate consulting covered operating expenses in the 10 review period. 8 14.9 14.6 13.6 13.8 13.5 13.9 6 4 2 0 H1/2007 H2/2007 H1/2008 Management fees & Income from real estate consulting Ope
Slide 14: Turnover and operating profit in Jan – Jun 2008, M€
Turnover and operating profit in Jan – Jun 2008, M€ Turnover Operating profit 60 60 51.6 50 50 43.6 40 40 35.6 31.4 28.1 26.5 29.8 30 30 25.4 20 20 10 10 0 0 1-3 1-6 1-9 1-12 1-3 1-6 1-9 1-12 2007 2008 2007 2008 14 • 8 August 2008
Slide 15: Profit before and after taxes in Jan – Jun 2008, M€
Profit before and after taxes in Jan – Jun 2008, M€ Profit before taxes Profit after taxes 40 40 34.0 32.7 30 28.1 30 26.7 25.5 24.2 19.9 20.9 20 20 10 10 3.7 2.7 0.7 0.5 0 0 1-3 1-6 1-9 1-12 1-3 1-6 1-9 1-12 2007 2008 2007 2008 15 • 8 August 2008
Slide 16: Management fees in Jan – Jun 2008, M€
Management fees in Jan – Jun 2008, M€ 30 • The amount of management fees grew from the review period 24.6 25 8.8%. • Growth largely due to 18.5 establishment of the new 20 CapMan Hotels RE real estate 15 13.6 fund. 12.5 10 5.8 6.3 5 0 1-3 1-6 1-9 1-12 2007 2008 16 • 8 August 2008
Slide 17: Carried interest in Jan – Jun 2008, M€
Carried interest in Jan – Jun 2008, M€ 23.6 25 • One exit (Staffpoint) was 22.4 21.2 21.4 made from funds generating 20 carried interest during the review period. • Carried interest for the 15 comparison period accrued primarily through the sale of 10 CapMan Real Estate I fund’s real estate portfoli
Slide 18: Analysing short-term carried interest potential: funds generating carried interest
Analysing short-term carried interest potential: Funds generating carried interest / old funds 30 June 2008 Current portfolio at cost: €155.1 million Current portfolio at fair value: €144.8 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 30 June 2008 Fund size: €169.9 million Portfolio at cost: €47.8 million Portfolio at fair value: €34.6 million Cash flow to investors: €237.7 million Generated carried interest to CapMan: €5.3 million Carried in
Slide 20: Funds generating carried interest / CapMan Real Estate I
Analysing short-term carried interest: Funds generating carried interest / CapMan Real Estate I 30 June 2008 Fund size: €500.0 million Remaining investment capacity: €45.6 million* Portfolio at cost: €93.4 million Portfolio at fair value: €95.9 million** Cash flow to investors: €184.8 million*** Gen
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. • Depending on the funds’ demand and CapMan’s own investment capacity CapMan will invest in its future funds 2–10% of the funds’ total commitments. • After the review p
Slide 22: The impact of own fund investments, M€
The impact of own fund investments, M€ • The impact on the Company’s result totalled € -1.1 million 10 – Realised returns €0.2 million (€0.3 million) 7.9 8 – Fair value changes € -0.3 million (€4.6 million) 6.2 • The changes were affected by the general 6 market development in the first half of the
Slide 23: Impact of own investments and carried interest potential: CapMan Equity VII
Analysing impact of own investments and carried interest potential: CapMan Equity VII 30 June 2008 CAPMAN EQUITY VII A B C Sweden In total Fund size: 156.7 56.5 23.1 67.0 303.3 Paid-in capital: 131.4 52.2 15.9 56.3 255.8 Portfolio at cost: 85.5 34.0 10.2 36.6 166.3 Portfolio at fair value: 158.7 75.
Slide 24: Impact of own investments and carried interest potential: CapMan Buyout VIII
Analysing impact of own investments and carried interest potential: CapMan Buyout VIII 30 June 2008 CAPMAN BUYOUT VIII A B In total Fund size: 360.0 80.0 440.0 Paid-in capital: 192.7 43.0 235.7 Portfolio at cost: 157.4 35.0 192.4 Portfolio at fair value: 154.3 34.2 188.5 CapMan’s commitment: €37.5 m
Slide 25: Turnover and result development
Turnover and result development € million 1-6/07 1-6/08 Capital under management 2,233.3 3,005.8 Turnover 35.6 19.5 Management fees 12.5 13.6 Carried interest income 21.4 4.1 Income from real estate consulting 1.1 1.3 Other operating income within turnover 0.3 0.3 The impact of fund investments made
Slide 26: Income Statement
Income Statement € million 2004 2005 2006 2007 H1/08 IFRS IFRS IFRS IFRS IFRS Turnover 27.7 28.7 38.0 51.6 19.5 Management fees 17.8 20.3 24.9 25.0 13.6 Carried interest 9.1 6.6 9.4 23.6 4.1 Income of investments in funds 0.2 0.5 0.9 0.5 0.2 Income from real estate consulting - 0.9 2.0 2.1 1.3 Other
Slide 27: Key figures
Key figures 2004 2005 2006 2007 H1/08 IFRS IFRS IFRS IFRS IFRS Earnings per share, € 0.06 0.09 0.15 0.24 0.03 Diluted, € 0.06 0.09 0.15 0.24 0.03 Shareholders’ equity / share, € 0.60 0.64 0.74 0.86 0.72 Dividend / share, € 0.06 0.07 0.12 0.16 - Dividend / result, % 94.4 78.0 80.0 67.0 - Dividends pa
Slide 28: Fundraising and product development
Fundraising and product development • Substantial 37% growth in capital under management – CapMan Hotels RE fund established on 18 January. Fundraising of the €844.9 million fund continues with maximum fund size €1.1 billion. – Final closing of CapMan Technology 2007 at a level of €142.3 million on
Slide 29: Future outlook
Future outlook • Management fees and returns on real estate consulting cover CapMan’s fixed expenses in 2008. • Carried interest income in 2008 will be clearly lower than in 2007. • The funds have several exit processes underway, and we expect CapMan Equity VII A, B and Sweden funds, Finnventure Fun
Slide 30: CapMan Plc starts share repurchases
CapMan Plc starts share repurchases CapMan Plc Stock Exchange Release 8 August 2008 10.10 a.m. CET • CapMan Plc Board of Directors has decided to start purchases of a maximum of 1,000,000 CapMan Plc B shares. • The decision is based on the authorization granted by the Annual General Meeting on 27 Ma
Slide 31: 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 32: Share price development (12 months rolling)
Share price development (12 months rolling) CapMan B CapMan 2003A stock options Relative CapMan B CapMan 2003B stock options Relative OMX Helsinki 4.3 20 € 15 4.0 3.7 10 5 3.4 0 3.1 -5 2.8 -10 2.5 -15 2.2 -20 -25 1.9 -30 1.6 -35 1.3 -40 1.0 -45 03/08/07 03/11/07 03/02/08 03/05/08 03/08/08 03/08/07 0
Slide 33: All Senior Partners shareholders of CapMan Plc
All Senior Partners shareholders of CapMan Plc 30 June 2008 • 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 Partner
Slide 34: CapMan’s ownership
CapMan’s ownership 30 June 2008, % of share capital 3% 6% 29% 11% 35% 35% 14% 36% 31% Nominee registered and foreign shareholders Nominee registed and foreign shareholders CapMan Partners B.V. and employee shareholders* Corporations Other owners Households Non-profit and public sector institutions C
Slide 35: CapMan Plc’s largest shareholders
CapMan Plc’s 12 largest shareholders Share of all Share of all 30 June 2008 shares % voting rights % Aristo Invest Oy + Ari Tolppanen* 10.8% 14.6% 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 Lii