Capman Oyj Class B · OMXHEX:CAPMAN
Capman Oyj Class B — H1 2021 Earnings Presentation
27 slides from Capman Oyj Class B's earnings presentation, Aug 5, 2021
Slide 1: Strong results for the first half of 2021
1-6 2021 Strong results for the first half of 2021 Operating profit MEUR 21.5 Joakim Frimodig 5 August 2021
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 Forward-looking statements are based on the Company's current expectations, CapMan Plc (hereinafter the "Company") or a representative of the Company as well estimates
Slide 3: Agenda
Agenda I. 1–6 2021 highlights II. Strategic direction
Slide 4: Results at record levels
LONG-TERM RESULT DEVELOPMENT Results at record levels 2016 H1 2020 H1 2021 AUM €2.7 bn €3.2 bn €4.3 bn % international* <10% 40% 60% EBIT (LTM)** €14.5m €11.3m €35.7m Fee profit (LTM)** €0.3m €11.2m €13.4m Employees 108 145 157 Market cap €180m €300m €450m 4 *) Outside of the Nordics **) Comparable
Slide 5: Highlights for 1–6 2021
1–6 2021 Highlights for 1–6 2021 Continued AUM growth Growing share of international investors Strong result development continues €4.3 bn +37% 60% EBIT €21.5 m Further growth expected in the of AUM from outside the EPS 10 cents upcoming 12 months Nordic area Growing distribution to Management Compa
Slide 6: Strong development in profitability
1–6 2021 Strong development in profitability €M Turnover €M Comparable operating profit 48 24 43,0 21,5 38 19 29,6 28 14 12,3 23,2 20,7 10,1 18 9 11,9 11,3 8 4 2,6 -2 -1 1-3 1-6 1-9 1-12 1-3 1-6 1-9 1-12 -1,8 -12 -6 -6,0 2020 2021 2020 2021 6
Slide 7: LTM EBIT at record levels
EBIT DEVELOPMENT LTM EBIT at record levels €M (Q) €M (LTM) 14 40 12 10 30 Most direct Covid impacts 8 20 6 4 10 2 0 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 0 -2 -4 -10 -6 -8 -20 Comparable EBIT Comparable total EBIT, LTM 7 Exclu
Slide 8: Diversified business model and earnings streams
BUSINESS MODEL Diversified business model and earnings streams MANAGEMENT COMPANY BUSINESS SERVICE BUSINESS INVESTMENT BUSINESS SERVICES WEALTH Wealth advisory service Sustainable Nordic pioneer in The truly Nordic infrastructure majority real estate investor Procurement service investor investments
Slide 9: EBIT breakdown in 1–6 2021
1–6 2021 EBIT breakdown in 1–6 2021 €M 30 25 -2,6 20 15 17,3 10 21,5 5 1,9 0,3 4,6 0 Mgmt fee profit Carried interest Service fee profit Investment Other & EBIT Q1 business eliminations 1-6/20 €3.0m €0.5m €3.3m -€5.7m -€3.1m -€1.8m Change +€1.6m -€0.2m -€1.4m +€23.0m +€0.5m +€23.3m 9
Slide 10: Positive fee profit trend continues
REVENUE AND FEE PROFIT MIX Positive fee profit trend continues €M €M Management Company and Service business Management Company and Service business turnover, LTM profitability, LTM 60 25 Total fees Fee-based profits CAGR 12% 4.7x in since 2017 50 20 Mgmt and other fee CAGR 16% Carry 40 15 Carry Ser
Slide 11: Growing recurring turnover & improved cost efficiency
COST EFFICIENCY Growing recurring turnover & improved cost efficiency €M 60 17% CAGR 27% growth on recurring turnover in H1/21 50 44,5 41,5 36,7 39,7 40 35,7 36,3 137% 34,2 Recurring 30,4 32,3 28,7 29,5 30,1 turnover/ 30 27,9 fixed costs* 25,7 26,6 Q2/21 LTM 20 10 0 * Q4 2017 Q1 2018 Q2 2018 Q3 2018
Slide 12: Balance sheet solid with good liquidity
BALANCE SHEET Balance sheet solid with good liquidity Equity Equity ratio €108m* 48%* FINANCIAL STABILITY & STRONG LIQUIDITY Liquid assets Undrawn credit limit €52m €40m 1 2 * Unpaid dividend and equity repayment was booked as non-current debt at the end of the review period
Slide 13: Private market investments and liquid assets
BALANCE SHEET Private market investments and liquid assets 30 June 2020 30 June 2021 45,0 51,5 Total Total 1,3 €156m €181m 109,7 129,8 Private market investments Market portfolio Cash & bank 1 3
Slide 14: Balance sheet exposure to private assets has become more diversified
BALANCE SHEET Balance sheet exposure to private assets has become more diversified over the past 10 years Undrawn commitments 30.6 Allocation of investments at fair values over time (%) (€84.5m) 100 % 90 % 11% 80 % 6% 70 % 24 % 14% 60 % 5% 15 % 50 % 13% 40 % 13 % 30 % 31 % 45% 20 % 10 % 8% 0% 2010 2
Slide 15: Significant return potential from own fund investments
BALANCE SHEET Significant return potential from own fund investments 30 June 2021 (€m) Private Equity and Real Estate Infra Total Credit AUM (€ billion) 1.1 2.8 0.4 4.3 Fair value of investments on CapMan’s 78 42 10 130 balance sheet CapMan’s remaining commitments 68 11 5 84 Return target for own fu
Slide 16: Agenda
Agenda I. 1–6 2021 highlights II. Strategic direction
Slide 17: Our vision and what it is built upon
O U R V I S I O N A N D W H AT I T I S B U I LT U P O N Driven by our performance and access to capital Created by Investment Teams and the CapMan Platform Top quartile Broad value creation in investor base Private Equity, and access to Real estate international CapMan – and Infra capital A Nordic p
Slide 18: CapMan's strategic direction
STRATEGY CapMan’s strategic direction Balance sheet 1. Broaden access to capital INTERNATIONAL NORDIC TIER I NORDIC TIER II & III INVESTORS INVESTORS INVESTORS 2. Introduce new & OPEN-ENDED CLOSED-END MANDATES, CLUBS, FUNDS FUNDS OTHERS flexible products 3. Develop broad PRIVATE EQUITY REAL ESTATE I
Slide 19: Steps in the right direction
STRATEGY Steps in the right direction Strategic objective 2016 AUM (€2.7 bn) 2021 AUM (€4.3 bn) International Other 10 % 28 % 1. Broaden access to capital International Tier II&III 60 % Other 5% Tier II&III 85 % 12 % Other 4 % 2. Introduce new & flexible Closed- Closed- Other end products end 38 % 9
Slide 20: Assets under management are at a new all-time high
ASSETS UNDER MANAGEMENT Assets under management are at a new all-time high M€ €4.3bn 5000 4500 INFRA 4000 AUM 3500 3000 2500 2000 REAL ESTATE 1500 AUM 1000 PRIVATE EQUITY & CREDIT AUM 500 0 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 H1'21 Foundation Phase 2: Phase 3: Phase 4: Sin
Slide 21: We expect continued strong growth in AUM
CURRENT FUNDRAISING PIPELINE We expect continued strong growth in AUM 3/21 6/21 9/21 12/21 3/22 NPI €90m (NAV, open-ended) REAL ESTATE Hotels II €326m (NAV, semi open-ended) Residential fund €316m (open-ended, target size €1 bn) New RE product PRIVATE EQUITY Special Situations fund (€53m raised, fun
Slide 22: Significant carried interest potential
CARRIED INTEREST Significant carried interest potential Nordic Real Estate (273M€) Growth Equity (€86m) Buyout X (€245m) Nordic Infra I (€190m) 2013 2017 2020 Nest Capital (€100m) Nordic Real Estate II (€425m) In carry: Mezzanine V Access funds Following successful value creation work, many funds in
Slide 23: Objective to pay an annually increasing dividend
DIVIDEND POLICY Objective to pay an annually increasing dividend cents Annual distribution per share 2012-2020 16 13 14 14 12 12 11 10 9 8 6 7 6 4 4 2 0 2012 2013 2014 2015 2016 2017 2018* 2019* 2020* Distribution of funds for 2020 • CapMan Plc’s objective is to distribute an annually growing divide
Slide 24: Long-term objectives
FINANCIAL OBJECTIVES Long-term objectives Growth of the Return on equity Equity ratio Dividend distribution Management Company objective and Services business* The company’s objective is >10% >20% >60% to pay an annually increasing dividend to its Average annual growth shareholders. objective On ave
Slide 25: Outlook estimate for 2021 (unchanged)
Outlook estimate for 2021 (unchanged) CapMan expects to achieve these financial objectives gradually and key figures are expected to show fluctuation on an annual basis considering the nature of the business. CapMan estimates capital under management to continue growing in 2021. Our objective is to
Slide 26: Changes to the Management Group
Changes to the Management Group Heidi Sulin Atte Rissanen Antti Kummu COO CFO Managing Partner, CapMan Growth Previously as COO of Hartwall Capital Currently Director, Strategy & Business Currently Partner at CapMan Growth with Responsibilities will include fund Development at CapMan over 20 years o
Slide 27: Helsinki Stockholm Copenhagen Oslo London Luxembourg
HELSINKI STOCKHOLM COPENHAGEN OSLO LONDON LUXEMBOURG