Capman Oyj Class B · OMXHEX:CAPMAN
Capman Oyj Class B — Q1 2009 Earnings Presentation
35 slides from Capman Oyj Class B's earnings presentation, May 12, 2009
Slide 1: CapMan Plc Interim Report 1 Jan – 31 Mar 2009
CapMan Plc Interim Report 1 Jan – 31 Mar 2009 Press and analyst conference 12 May 2009 Heikki Westerlund
Slide 2: Impact of current market environment on CapMan's operations - overview
Impact of current market environment on CapMan’s operations - overview CapMan, due to the company’s Fundraising has practically organisation and operating model, been in a standstill is in a good position to meet the throughout the first quarter. Fundraising new EU legislative initiative on The pros
Slide 3: General market trends: 2009 has been a challenging fundraising year
General market trends: 2009 has been a challenging fundraising year Global fundraising activity • Fundraising in Q1/2009 dropped to its lowest level in over five years • Record high time of 16 months on average needed to complete a fundraise • The financial crisis and the steep decline in market val
Slide 4: General market trends: Price elasticity lower in private equity than public markets
General market trends: Price elasticity lower in the private equity market than in public markets • Forced sales not yet seen • If the real economy gradually starts to recover and the market sees forced sales, it will create a highly attractive investment landscape for private equity investors • Est
Slide 5: General market trends: Decrease of the Nordic listed market ceased
General market trends: Decrease of the Nordic listed market ceased Nordic public market development • Sustainability of the increasing trend? • Good timing of CapMan Public Market? ESTABLISHMENT ANNOUNCEMENT OF Exploring opportunities for expansion to public market THE FIRST INVESTMENT OF THE FUND 4
Slide 6: General market trends: M&A activity in a standstill
General market trends: M&A activity in a standstill • We believe that bank financing will gradually recover • Cooperation with banks important • The market looks promising for new investments both in the Nordic countries and Russia Buyout deal value in the Nordic region Number of buyout deals in the
Slide 7: General market trends: Real estate transaction activity decreased significantly
General market trends: Real estate transaction activity decreased significantly Finnish real estate investment activity • Q1/2009 lowest quarter in years • Tighter bank credit will continue to affect both competition and the valuation levels in the real estate sector • Changed market situation could
Slide 8: General market trends: Downturn's impact on CapMan's portfolio
General market trends: Downturn’s impact on CapMan’s portfolio Limited Moderate Significant Example industries • Healthcare • Industrial products and • Automobile industry • Consumer services services • Food supplies • Consumer products Turnover and • Limited effect • Clear negative effect • Signifi
Slide 9: CapMan in a good position to meet the new EU regulations
CapMan in a good position to meet the new EU regulations • European Commission published a proposal for a directive on alternative investment fund managers • Transition of the proposal into law is expected in 2010, depending on legislative processes within European Parliament and Member States • App
Slide 10: Two segments and main components of income
Two segments and main components of 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 begins to receive • CapMan Plc’s • CapMan invests i
Slide 11: CapMan's main events in 2009
CapMan’s main events in 2009 Investment activity Exit activity Capital structure 2 new portfolio company investments Size of hybrid bond issued by 2 final exits from 1 new real estate investment CapMan Plc increased to portfolio companies €29 million 1 opening of a shopping center & Office property
Slide 12: Components of income and operating costs
Components of income and operating costs 31 March 2009, € million Total effect of own investments €-4.4 million 12 Turnover €8.3 million 10 0.6 0.0 0.1 0.2 8 7.4 6 4 0.0 Operating -4.6 profit/loss 2 €-4.7 million 0 -2 Profit/loss before taxes -4 0.6 €-4.6 million -8.4 -0.5 -6 Management fees Income
Slide 13: Group turnover and operating profit
Group turnover and operating profit Turnover Operating profit 40 37.1 10 € million € million 30 27.2 5 3.7 3.3 0.4 19.5 20 0 10 8.3 -5 7.2 -4.7 -6.3 0 -10 1-3 1-6 1-9 1-12 1-3 1-6 1-9 1-12 2008 2009 2008 2009 13 12 May 2009
Slide 14: Group profit before and after taxes
Group profit before and after taxes Profit before taxes Profit after taxes 10 10 € million € million 5 3.7 5 2.7 2.7 1.9 0.7 0.5 0 0 -5 -5 -3.7 -4.6 -8.1 -10 -10 -10.7 -15 -15 1-3 1-6 1-9 1-12 1-3 1-6 1-9 1-12 2008 2009 2008 2009 14 12 May 2009
Slide 15: Result of the management company business
Management company Result of the management company business business • The profitability level of the management company business remains good. • The management company business has reported breakeven, since our new buyout fund will start to pay management fees in the second quarter subsequent to c
Slide 16: Management fees
Management company Management fees business 35 € million • The amount of management fees 29.6 grew by 16% compared to the 30 comparable period 25 • The increase in management fees 20.9 was attributable to establishment of 20 the CapMan Hotels RE, CapMan Public Market and CapMan Russia 15 13.6 funds
Slide 17: Carried interest
Management company Carried interest business 5 • No exits were made from funds in € million 4.1 4.1 4.1 carry during the review period and 4 therefore no carried interest income was generated. • There was no carried interest 3 income also in the comparable period. 2 1 0.0 0.0 0 1-3 1-6 1-9 1-12 2008
Slide 18: Result of the fund investment business
Fund investment Result of the fund investment business business • The fund investment business recorded loss due to the decline in the fair value of the fund investments. Decrease was -8.4% during the review period ( -17.1% in Q4/2008). • Decline reflected the fall in valuations of peer companies an
Slide 19: Fund investments and commitments
Fund investment Fund investments and commitments business • CapMan will invest in its future funds 1–5% of their original capital depending on the fund’s demand and CapMan’s own investment capacity. 140 € million 120 100 75.3 80 60 40 51.0 20 0 2003 2004 2005 2006 2007 2008 3/2009 Investments at fai
Slide 20: Fund investments by investment area
Fund investment Fund investments by investment area business 31 March 2009 • During the review period CapMan made new investments in its own funds to the amount of €2.5 million (€10.8 million). Investments were made in CapMan Buyout VIII and CapMan Russia funds, among others. • CapMan did not give a
Slide 21: Analysing impact of own investments and carried interest potential: CapMan Equity VII
Analysing impact of own investments and carried interest potential: CapMan Equity VII 31 March 2009, € million CAPMAN EQUITY VII A B C SWEDEN IN TOTAL (buyout & tech) (buyout) (tech) (buyout & tech) Fund size: 156.7 56.5 23.1 67.0 303.3 Paid-in capital: 135.9 54.2 16.9 58.1 265.1 Portfolio at cost:
Slide 22: Analysing impact of own investments and carried interest potential: CapMan Buyout VIII
Analysing impact of own investments and carried interest potential: CapMan Buyout VIII 31 March 2009, € million CAPMAN BUYOUT VIII In total Fund size: 440.0 Paid-in capital: 310.0 Portfolio at cost: 270.7 Portfolio at fair value: 201.6 37.5 CapMan’s commitment CapMan’s share of carried interest 70 %
Slide 23: Turnover and result development
Turnover and result development € million 1–3/09 1–3/08 Turnover 8.3 7.2 Management fees 7.4 6.4 Carried interest 0.0 0.0 Income of investments in funds 0.2 0.0 Real estate consulting 0.6 0.7 Other income 0.1 0.2 Operating expenses -8.4 -6.7 Fair value gains / losses of investments -4.6 -0.1 Operati
Slide 24: Income Statement
Income Statement € million 2005 2006 2007 2008 1–3/09 IFRS IFRS IFRS IFRS IFRS Turnover 27.7 28.7 38.0 51.6 8.3 Management fees 17.8 20.3 24.9 25.0 7.4 Carried interest 9.1 6.6 9.4 23.6 0.0 Income of investments in funds 0.2 0.5 0.9 0.5 0.2 Real estate consulting - 0.9 2.0 2.1 0.6 Other income - 0.4
Slide 25: Balance sheet – Assets, IFRS
Balance sheet – Assets, IFRS €1,000 31.3.2009 31.3.2008 31.12.2008 Non-current assets Tangible assets 1,065 809 1,064 Goodwill 10,985 5,305 11,762 Other intangible assets 3,205 1,098 3,229 Investments in associated companies 3,435 3,515 1,575 Investments at fair value through profit and loss Investm
Slide 26: Balance sheet – Total equity and liabilities, IFRS
Balance sheet – Total equity and liabilities, IFRS €1,000 31.3.2009 31.3.2008 31.12.2008 Capital attributable the Company's equity holders Share capital 772 772 772 Share premium account 38,968 38,968 38,968 Other reserves 33,829 2 961 25,829 Translation difference -750 166 -226 Retained earnings -1
Slide 27: Key figures
Key figures 2005 2006 2007 2008 1-3/09 IFRS IFRS IFRS IFRS IFRS Earnings per share, € 0.09 0.15 0.24 -0.10 -0.06 Diluted, € 0.09 0.15 0.24 -0.10 -0.06 Shareholders’ equity / share, € 0.64 0.74 0.86 0.86 0.90 Dividend / share, € 0.07 0.12 0.16 0.00 - Dividend / earnings, % 78.0 80.0 67.0 0.00 - Retur
Slide 28: Fundraising and product development
Fundraising and product development • CapMan’s strategy is to exploit growth opportunities within the alternative asset class. • Having expanded our operations into Russia and into investments in public markets last year, we will now focus on fully exploiting the potential of our existing business p
Slide 29: Future outlook
Future outlook • Management fees and income from real estate consulting will cover CapMan’s fixed expenses in 2009. • Income from carried interest will depend on developments in the exit market. – Despite the slowdown in the exit market, the funds still have portfolio companies ready to enter the ex
Slide 30: 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 an
Slide 31: CapMan – alternative asset manager in the Nordic countries and Russia
CapMan – alternative asset manager in the Nordic countries 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 €93.7 million incl. A shares (closi
Slide 32: Six investment areas
Six investment areas CapMan CapMan Private Equity €1.8 billion Real Estate €1.7 billion CapMan CapMan CapMan CapMan CapMan Buyout Technology Life Science Russia Public Market 24 investment 10 investment 3 investment 10 investment 6 investment 46 real estate professionals professionals professionals
Slide 33: Share price development and trading 1 Jan – 11 May 2009
Share price development and trading 1 Jan – 11 May 2009 Share price development, indexed CapMan 2003 B OMX Helsinki All Share PI LPX Europe CapMan B trading volume Trading volume 1–3/2009 = 3.4 million shares 2008 = 14.8 million shares 2007 = 30.9 million shares 2006 = 21.2 million shares 33 12 May
Slide 34: CapMan's ownership
CapMan’s ownership 31 December 2008, % of share capital • Nominee registered owners at the end of 2008 included funds managed by several 29% international investors, e.g. 34% – Royce & Associates – Dunedin Enterprise Investment Trust Plc – Red Rocks Capital – AP3 – INVESCO PowerShares Capital Manage
Slide 35: CapMan Plc's 12 largest shareholders
CapMan Plc’s 12 largest shareholders 31 March 2009 Share of all Share of all shares % voting rights % Aristo Invest Oy + Ari Tolppanen* 10.6% 14.5% CapMan Partners B.V. 6.1% 23.6% Winsome Oy + Tuomo Raasio* 4.6% 7.3% Vesasco Oy 4.1% 2.5% Heiwes Oy + Heikki Westerlund* 3.7% 3.9% Geldegal Oy + Olli Li