Capman Oyj Class B · OMXHEX:CAPMAN
Capman Oyj Class B — H1 2010 Earnings Presentation
48 slides from Capman Oyj Class B's earnings presentation, Aug 6, 2010
Slide 1: CapMan H1 2010 result info
CapMan H1 2010 result info 6 August 2010 Lennart Simonsen, CEO, Senior Partner Jerome Bouix, Deputy CEO, Senior Partner Niko Haavisto, CFO
Slide 2: CapMan organisation
CapMan organisation CapMan Plc / Board of Directors CEO Lennart Simonsen deputy CEO Jerome Bouix CapMan CapMan CapMan CapMan CapMan Public CapMan Buyout Technology Life Science Russia Market Real Estate Tuomo Raasio Petri Niemi Johan Petri Saavalainen Joakim Rubin Markku Hietala (Kai Jordahl) (Vesa
Slide 3: Contents
• Market environment and CapMan main events in H1 2010 • H1 result Contents • CapMan funds • Summary 3 CapMan H1 2010 result info 06 August 2010
Slide 4: General market trends
General market trends – Private equity continues to attract steady investor interest in the medium to long term – Nordic M&A market activity has increased especially in Q2 2010 – Current market is difficult to read: cautious and waiting atmosphere – This seems to have effects at least on Q3 activity
Slide 5: Generally good performance and satisfactory result for CapMan under the current market conditions
Generally good performance and satisfactory result for CapMan under the current market conditions – The general markets trends have affected our investment and exit activities. Good deal flow in all investment areas. – CapMan is well placed in its chosen markets seeing most of CapMan seems to have e
Slide 6: Tough fundraising market continued in H1 2010...
Tough fundraising market continued in H1 2010... • Global fundraising hit its lowest point in Q2 2010 since year 2003. • Average time for a fund to reach the final close has increased to nearly 20 months. • Record high fundraising 2005 – 2008 gives PE industry massive dry powder. Global Private Equi
Slide 7: ....but CapMan has successfully raised new capital.
....but CapMan has successfully raised new capital. 3 fundraising projects in 2010 • CapMan Buyout IX closed at €295 million – the fund raised between H2 2008 and H1 2010 • Fundraising for CapMan Mezzanine V continues – first closing expected in the autumn 2010, target size about half of CapMan Buyo
Slide 8: Transaction activity in the Nordics has increased...
Transaction activity in the Nordics has increased... • The European buyout market picked up in Q2 2010. Nordic region was one of the busiest markets with number of deals doubling. • The number of European growth financing grew by 30% in Q2 2010. • European early-stage investments recorded further de
Slide 9: ...and CapMan has been active in making both new investments and exits.
...and CapMan has been active in making both new investments and exits. Investments Exits* 8 final and 2 partial exits from 7 portfolio company investments portfolio companies 1 real estate investment 1 exit from real estate investment LMZ Events after Q2 Partial exits + Helsinki Helsinki * ON2 exit
Slide 10: Contents
• Market environment and CapMan main events in H1 2010 Contents • H1 result • CapMan funds • Summary 10 CapMan H1 2010 result info 06 August 2010
Slide 11: Main components of CapMan Group's income
Main components of CapMan Group’s income Fund Investment Management Company business Business Returns on direct Real estate Management fees Carried interest fund investments from consulting own balance sheet • Based on original fund size • CapMan Plc’s • CapMan begins to receive • CapMan invests in
Slide 12: Group turnover and operating profit
Group turnover and operating profit • +25% increase in turnover attributable to increase in management fees and carried interest income. Turnover Operating profit / loss € million € million 40 10 36,3 30 4,3 4,5 5 26,3 21,0 0,1 20 0 16,8 11,4 -2,2 10 8,1 -5 -4,2 -4,7 0 -10 1-3 1-6 1-9 1-12 1-3 1-6 1
Slide 13: Result of Management Company business
Management Company business Result of Management Company business • Turnover and profit increased clearly following the increase in management fees and carried interest income. • Management fees and income from real estate consulting will cover CapMan’s fixed costs and interest expenses in 2010. Ope
Slide 14: Management fees and carried interest
Management Company business Management fees and carried interest • Management fees were up +11% compared to comparable period. This increase was attributable to the fees paid by CapMan Buyout IX. • Carried interest totalled €2.5 million following mainly the exit from financial administration service
Slide 15: Result of Fund Investment business
Fund Investment business Result of Fund Investment business • Fair value changes were +0.6% during the first half of 2010 and -1.3% in Q2 • the result prospects of portfolio companies for 2010 have remained stable, but the decline in the market capitalisation of their listed peers lowered the fair v
Slide 16: Fund investments and commitments
Fund Investment business Fund investments and commitments 30 June 2010 • The amount of remaining commitments was significantly lower than the year earlier due to the sales of commitments announced in summer 2009 and the investments made after the comparison period last year. • CapMan invests in futu
Slide 17: Share of associated companies' result: Access Capital Partners
Share of associated companies’ result: Access Capital Partners 30 June 2010 • Leading manager and advisor of Asset under management by Access European private equity funds of funds. € million • Team of 31 professionals in Paris, 3 000 Brussels, Munich and London. 2 500 • CapMan’s ownership 35%. • Ca
Slide 18: Financial objectives
Financial objectives Objective H1/2010 Average growth of capital under 2.4% growth y-on-y to 30 Jun 2010. Growth management at least 15% p.a. Average growth 30.4% in 2004-2009. Return on equity over 25% p.a. Return on equity 13.3% p.a. Profitability Equity fund performance above 15% Net return to in
Slide 19: Key figures
Key figures • Target equity ratio at least 50%, realised 55.7% • Target ROE over 25% p.a, realised 13.3% p.a. 30.6.10 30.6.09 31.12.09 Earnings per share, cents* 4.6 -8.0 -3.0 Diluted, cents 4.6 -8.0 -3.0 Shareholders' equity / share, cents** 92.0 89.1 94.2 Share issue adjusted number of shares 84,2
Slide 20: Future outlook
Future outlook Fund Investment Management Company business Business Returns on direct Management fees Carried interest fund investments from + real estate consulting own balance sheet • Management fees and • Exit negotiations are under way in respect of • The development of the fair income from real
Slide 21: Contents
• Market environment and CapMan main events in H1 2010 • H1 result Contents • CapMan funds • Summary Fundraising 21 CapMan H1 2010 result info 06 August 2010
Slide 22: Capital under management
Capital under management • Capital under management 30 June 2010: €3.5 billion • Growth target – Average growth of capital under management at least 15% p.a. • Realised average growth p.a.: – 2010 ytd: 1.0% – 1 Jul 2009 - 30 Jun 2010: 2.4% – 1 Jan 2007 - 30 Jun 2010: 18.0% – 1 Jan 2005 - 30 Jun 2010
Slide 23: Recent funds
Recent funds CMM V Mezzanine CMM IV, €240m ? CMB IX, €295m Buyout CMB VIII, €440m Public CMPMF, €138m Market Russia CMR, €118m Technology CMT 2007, €142m Life Science CMLS IV, €54m CM RE II, €600m CM HRE, €950m Real Estate CMRE I, €500mc Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 24: Relation between capital under management and fees
Relation between capital under management and fees Capital under management 4 000 3408 3504 3541 3 000 2116 2191 1845 2 000 1051 1 000 0 2004 2005 2006 2007 2008 2009 H1 2010 Management fees 35 33,3 29,6 30 23,4 25,0 25 20,3 20 17,8 17,3 15 10 5 0 2004 2005 2006 2007 2008 2009 H1 2010 Fee of capital
Slide 25: Nordic pension funds expect to increase allocation to alternatives over next six months
Fundraising Nordic pension funds expect to increase allocation to alternatives over next six months • Public and private equity, commodities and forestry key areas in which Nordic pension funds wish to increase interest … while nearly half plan to reduce exposure to fixed income assets. 43% 50 % 40
Slide 26: Fundraising is expected to pick up in H2 2010 -2011
Fundraising Fundraising is expected to pick up in H2 2010 -2011 • Many LPs foresee the size of their allocation rising in the longer term • Small to mid-market buyout and distressed PE funds are considered to be the most attractive products by investors. Investors intentions for their Types of funds
Slide 27: Fundraising outlook
Fundraising Fundraising outlook • There is likely to be a gradual increase in the capital available for fresh private equity commitments during the next 18 months. • The size of commitments will, however, still fall far short of the amounts seen prior the financial down turn. • Fundraising is conseq
Slide 28: CapMan performance in 2010
CapMan performance in 2010 Fair value changes in • Fair value development (CapMan’s fund portfolio companies in Q2 2010 investments) – Change in H1 €0.4 million, 0.6% 13 % 7% – Change in Q2 €-0.7 million, -1.3% • Exits in H1 2010 – Eight final exits, two partial exits – Money back multiple for these
Slide 29: Large medium-term carried interest potential
Large medium-term carried interest potential • CapMan Equity VII A, B and Sweden as well as Finnmezzanine III A and B funds are expected to start generating carried interest during 2011. • We consider it unlikely that CapMan Real Estate I would generate new carried interest income in future (incl. i
Slide 30: Analysing 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 2010 CAPMAN EQUITY VII A B C SWEDEN IN TOTAL Fund size: €156.7m €56.5m €23.1m €67.0m €303.3m Paid-in capital vs. Fund size: 97% 100% 83% 98% 97% Portfolio at cost vs. Paid-in capital: 62% 67% 57% 61% 63% Po
Slide 31: Analysing 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 2010 CAPMAN BUYOUT VIII In total Fund size: €440.0m Paid-in capital vs. Fund size: 79% Portfolio at cost vs. Paid-in capital: 84% Portfolio at fair value vs. Portfolio at cost: 94% CapMan’s commitment: 37.
Slide 32: CapMan's own fund investments
CapMan’s own fund investments 30 June 2010 Key funds based on the size of original commitments 1. CapMan Buyout VIII €37.6 million, of which 79% paid in 2. CapMan Equity VII €16.0 million, of which 97% paid in 3. CapMan Buyout IX €13.0 million, of which 25% paid in 4. CapMan Life Science IV €10.0 mi
Slide 33: PE fund manager selection critical
PE fund manager selection critical Profitability index comparison: Characteristics of top performers PE funds vs. stock market* vs. bottom quartile Average of top quartile PE I Larger fund size >$340 million funds 185 Greater experience in number of funds Mean of PE funds 102 II raised >2 Greater ex
Slide 34: Contents
• Market environment and CapMan main events in H1 2010 Contents • H1 result • CapMan funds • Summary 34 CapMan H1 2010 result info 06 August 2010
Slide 35: CapMan Plc priorities in 2010
CapMan Plc priorities in 2010 To deliver a clearly better result than in 2009 To continue strengthening the balance sheet To develop and consolidate CapMan’s investment culture To create strong base for future fundraising To leverage market opportunities in CapMan’s operations To further develop the
Slide 36: Summary
Summary Transaction activity in the Nordics has increased... ...and CapMan has been active in making both new investments and exits. Tough fundraising market continued in H1 2010... ...but CapMan has been able to close CapMan Buyout IX at satisfactory level. Good deal flow in all investment ar
Slide 37: Analysts following CapMan and IR schedule
Analysts following CapMan and IR schedule Analysts following CapMan IR team J.P. Morgan Cazenove, London Lennart Simonsen, CEO, Senior Partner Christopher Brown tel. +358 207 207 567 Tel. +44 (0) 20 7155 8145 [email protected] Pohjola Bank Plc Jerome Bouix, Deputy CEO, Senior Partner Suvi
Slide 38: Additional slides
Additional slides
Slide 39: Group Income Statement
Group Income Statement € million 1–6/10 1–6/09 1–12/09 Turnover 21.0 16.8 36.3 Management fees 17.3 15.6 33.3 Carried interest 2.5 0.0 0.0 Real Estate consulting 0.8 1.0 2.4 Other income 0.4 0.2 0.6 Other operating income 0.1 0.1 0.1 Operating expenses -16.9 -16.5 -33.0 Fair value gains / losses of
Slide 40: Group balance sheet – Assets, IFRS
Group balance sheet – Assets, IFRS € thousands 30.6.10 30.6.09 31.12.09 Tangible assets 704 1,024 838 Goodwill 10,245 10,245 10,245 Other intangible assets 2,677 3,131 2,972 Investments in associated companies 7,698 4,345 6,547 Investments at fair value through profit and loss Investments in funds 6
Slide 41: Group balance sheet – Total equity and liabilities, IFRS
Group balance sheet – Total equity and liabilities, IFRS € thousands 30.6.10 30.6.09 31.12.09 Share capital 772 772 772 Share premium account 38,968 38,968 38,968 Other reserves 38,678 36,625 37,347 Translation difference -317 -703 -392 Retained earnings -585 -2,550 1,097 Capital attributable the Co
Slide 42: Group balance sheet – largest items
Group balance sheet – largest items 30 June 2010 Assets, €139m Equity and liabilities, €139m Non-current €115m, current €25m Equity, €78m, liabilities €62m Interest bearing loans and Trade and borrowings, other Liquid short term Goodwill payables assets 5% Trade and 7% Investments and other 11 % oth
Slide 43: Share price development – CapMan and listed peers
Share price development – CapMan and listed peers 160 % 150 % CapMan 140 % 3i Group 130 % Blackstone GIMV 120 % Partners Group Ratos 110 % 100 % 90 % 80 % 70 % 60 % 3.10.09 3.11.09 3.12.09 3.8.09 3.9.09 3.1.10 3.2.10 3.3.10 3.4.10 3.5.10 3.6.10 3.7.10 43 CapMan H1 2010 result info 06 August 2010
Slide 44: CapMan's ownership
CapMan’s ownership 30 June 2010, % of share capital or votes By number of shares By voting rights 23 % 30 % 38 % 38 % 16 % 6% 27 % 23 % Management and personnel Management and personnel CapMan Partners B.V. (senior partners) CapMan Partners B.V. (senior partners) Nominee registered and other foreign
Slide 45: CapMan Plc's largest shareholders
CapMan Plc’s largest shareholders 30 June 2010 Share of all shares % Share of all voting rights % Aristo Invest Oy + Ari Tolppanen* 10.3% 14.2% CapMan Partners B.V. 5.9% 23.1% Winsome Oy + Tuomo Raasio* 4.5% 7.2% Vesasco Oy 4.0% 2.4% Norum Russia Carry Limited (Hans Christian Dall Nygård**, Knut J.
Slide 46: Changes in Management and current Board members
Changes in Management and current Board members CEO, Deputy CEO and CFO Lennart Simonsen Jerome Bouix Niko Haavisto CEO, Senior Partner Deputy CEO since CFO since since 1 June 2010 1 October 2009, 26 April 2010 Senior Partner, joined CapMan in 2000 CapMan Plc Board of Directors Heikki Westerlund Teu
Slide 47: Our vision is to be the preferred private equity and other alternative assets partner
Our vision is to be the preferred private equity and other alternative assets partner for investors globally and entrepreneurs locally
Slide 48: High ethics Dedication Active ownership
High ethics Dedication Active ownership LMZ +