Capman Oyj Class B · OMXHEX:CAPMAN
Capman Oyj Class B — Q1 2008 Earnings Presentation
34 slides from Capman Oyj Class B's earnings presentation, May 7, 2008
Slide 1: CapMan Plc Interim Report 1 Jan – 31 Mar 2008
CapMan Plc Interim Report 1 Jan – 31 Mar 2008 Press and analyst conference 7 May 2008 Heikki Westerlund
Slide 2: General trends
General trends • 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. • It can be seen in the investment and exit activities of our funds that the effects of the i
Slide 3: Pension funds' allocations in alternative asset class growing worldwide
Pension funds’ allocations in alternative asset class growing worldwide 25% 20% +35% 3% 15% 2% 6% 5% 10% 5% 4% 5% 6% 4% 0% 2007 2010 Target Real estate Hedge funds PE Other Source: McKinsey&Co, “The Rive of Universal Owners: From Best Practises to Next Practises in Institutional Investing, 2008 3
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 2006–2007 # transactions 7 6 5 4 7 3 6 6 5 2 4 4 3 3 3 3 3 3 1 2 1 0 s an r el s T d l t on rs Ra to pM Alto Axc lar i EQ Fer pita Equ ity en gu l ah Trit sto rs sto Ca Po tri K a LD
Slide 5: Deal volume in European middle market buyouts quite stable in Q1/2008
Deal volume in European middle market buyouts quite stable in Q1/2008 compared to Q4/2007 European buyout activity • Problems in the upper middle market caused deal value to decline • Still life at the top of the market with three +€1bn done in Q1/2008 Deal value by size range Deal number developmen
Slide 6: CapMan's main events in 2008
CapMan’s main events in 2008 €837 million raised 3 new portfolio company 1 exit from portfolio company investments Two new funds 39 new real estate investments 1 split of portfolio company CapMan Hotels RE Ky CapMan Technology 2007 (final closing at €142 million in Jan 2008) 39 hotel properties Inve
Slide 7: 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 €203.9 million incl. A shares (closing price €2.55 on 31 Ma
Slide 8: CapMan Plc changes the practise for reporting capital under management
CapMan Plc changes the practise for reporting capital under management 4,000 Capital under management M€ refers to funds’ remaining 3,500 investment capacity and capital 3,000 already invested valued at acquisition price. The figure 2,500 excludes capital from which the funds have already exited. 2,
Slide 9: Components of income and operating costs
Components of income and operating costs 31 March 2008, M€ Total effect of own investments €-0.1 million 8.0 0.0 0.2 0.0 0.0 0.7 7.0 6.3 -0.1 6.0 Turnover €7.2 5.0 million -6.7 4.0 3.0 Pre-tax profit €0.7 million 2.0 0.3 0.1 1.0 Operating profit 0.0 €0.4 million Management fees Income from real esta
Slide 10: Stable income covered operating expenses
Stable income covered operating expenses 8 7 • Management fees paid by funds and the income from 6 real estate consulting covered operating expenses in the 5 review period. 4 7.9 6.8 7.0 7.0 6.7 7.0 6.7 3 6.4 6.0 6.6 • Significant earnings potential in the funds yet to generate 2 carried interest an
Slide 11: Turnover and operating profit in Jan – Mar 2008, M€
Turnover and operating profit in Jan – Mar 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 11 • 7 May 2008
Slide 12: Profit before and after taxes in Jan – Mar 2008, M€
Profit before and after taxes in Jan – Mar 2008, M€ Profit before taxes Profit after taxes 40 40 34.0 32.7 30 28.1 30 26.7 25.5 24.2 20.9 19.9 20 20 10 10 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 12 • 7 May 2008
Slide 13: Management fees in Jan – Mar 2008, M€
Management fees in Jan – Mar 2008, M€ 30 • The amount of management 24.6 fees grew during the review 25 period: 18.5 – Growth largely due to 20 establishment of the new CapMan Hotels RE real 15 estate fund. 12.3 – Increase also through the 10 fundraising for CapMan 5.8 6.3 Technology 2007 fund and 5
Slide 14: Carried interest in Jan – Mar 2008, M€
Carried interest in Jan – Mar 2008, M€ 23.6 25 • No exits were made from 22.4 21.2 21.4 funds generating carried 20 interest during the review period and no carried interest was generated. 15 • Carried interest for the 10 comparison period accrued primarily through the sale of 5 CapMan Real Estate I
Slide 15: Analysing short-term carried interest potential: Funds generating carried interest / old funds
Analysing short-term carried interest potential: Funds generating carried interest / old funds 31 March 2008 Current portfolio at cost: €166.4 million Current portfolio at fair value: €164.2 million Current portfolios Buyout FV II FV III + III G Fenno Fund Fenno/Skandia I Fenno/Skandia II FM II B FV
Slide 16: Funds generating carried interest / Finnventure V
Analysing short-term carried interest: Funds generating carried interest / Finnventure V 31 March 2008 Fund size: €169.9 million Portfolio at cost: €59.5 million Portfolio at fair value: €55.5 million Cash flow to investors: €218.1 million Generated carried interest to CapMan: €1.1 million Carried i
Slide 17: Funds generating carried interest / CapMan Real Estate I
Analysing short-term carried interest: Funds generating carried interest / CapMan Real Estate I 31 March 2008 Fund size: €500.0 million Remaining investment capacity: €56.9 million* Portfolio at cost: €93.0 million Portfolio at fair value: €94.2 million** Cash flow to investors: €184.8 million*** Ge
Slide 18: 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 will invest in its future funds 2–10 per cent of their original capital depending on the fund’s demand and CapMan’s own investment capacity. M€ 120 100 Remainin
Slide 19: The impact of own fund investments, M€
The impact of own fund investments, M€ 10 • The impact on the Company’s result totalled € -0.1 million 7.9 – Realised returns €0 million (€0.3 8 million) 6.2 – Gains in the fair value of 6 investments 4.9 4.4 € -0.1 million (€4.1 million) 4 • The weak market early in 2008 was reflected in returns fr
Slide 20: CapMan Equity VII with large potential
CapMan Equity VII with large potential - impact of own investments and carried interest potential 31 March 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: 129.8 51.6 15.5 55.3 252.2 Portfolio at cost: 83.6 33.4 9.8 35.8 162.6 Portfolio at fair valu
Slide 21: Turnover and result development
Turnover and result development € million 1-3/07 1-3/08 Capital under management 2,237.6 3,016.7 Turnover 28.1 7.2 Management fees 5.8 6.3 Carried interest income 21.2 0.0 Income from real estate consulting 0.6 0.7 Other operating income within turnover 0.2 0.2 The impact of fund investments made fr
Slide 22: Income Statement
Income Statement € million 2004 2005 2006 2007 Q1/08 IFRS IFRS IFRS IFRS IFRS Turnover 27.7 28.7 38.0 51.6 7.2 Management fees 17.8 20.3 24.9 24.6 6.3 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 0.0 Income from real estate consulting 0.9 2.0 2.1 0.7 Other inc
Slide 23: Key figures
Key figures 2004 2005 2006 2007 Q1/08 IFRS IFRS IFRS IFRS IFRS Earnings per share, € 0.06 0.09 0.15 0.24 0.01 Diluted, € 0.06 0.09 0.15 0.24 0.01 Shareholders’ equity / share, € 0.60 0.64 0.74 0.86 0.69 Dividend / share, € 0.06 0.07 0.12 0.16 - Dividend / result, % 94.4 78.0 80.0 67.0 - Dividends pa
Slide 24: Fundraising and product development
Fundraising and product development • Substantial 38% growth in capital under management – CapMan Hotels RE fund established at a level of €835 million on 18 January. Fundraising continues with maximum fund size €1.1 billion. – Final closing of CapMan Technology 2007 at a level of €142.3 million on
Slide 25: New investments in 2008
New investments in 2008 • The CapMan funds investing in portfolio companies made three new investments as well as follow-on investments worth altogether €38.2 million in January–March. • The CapMan Hotels RE Ky fund acquired 39 hotel properties in conjunction with the establishment of the fund. • Re
Slide 26: New real estate investments in 2008
New real estate investments in 2008 Crowne Plaza Cumulus Airport Cumulus Cumulus Cumulus Kemi Cumulus Koskikatu Cumulus Kuopio Cumulus Oulu Cumulus Pinja Cumulus Rauma Helsinki Vantaa Hämeenlinna Jyväskylä Tampere Tampere Cumulus Cumulus Holiday Club Holiday Club Holiday Club Holiday Club Holiday Cl
Slide 27: Exits in 2008
Exits in 2008 • Final exit from Solid Information Technology Oy during the review period. • LUMENE Group, one of the CapMan Equity VII fund’s portfolio companies, split into the LUMENE Group and Farmos Oy, which returned some of the original investment to investors in the fund. • No exits from real
Slide 28: Growth strategy
Growth strategy • CapMan’s strategy is to exploit growth opportunities within the alternative asset class. • In addition to CapMan’s existing business areas (Private Equity and Real Estate) the alternative asset class includes, among others, infrastructure investment, forestry investment and funds a
Slide 29: Future outlook
Future outlook • Management fees and returns on real estate consulting cover CapMan’s fixed expenses. • The Group’s full-year result for 2008 will depend on how many new exits are made by funds already generating carried interest, on whether new funds start generating carried interest, and on how th
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
Slide 31: 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 € 4.0 15 3.7 10 3.4 5 3.1 0 2.8 -5 2.5 -10 2.2 -15 1.9 -20 1.6 -25 1.3 -30 1.0 -35 04/05/07 04/08/07 04/11/07 04/02/08 04/05/08 04/05/07 04/08/07
Slide 32: All Senior Partners shareholders of CapMan Plc
All Senior Partners shareholders of CapMan Plc 31 March 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 Partne
Slide 33: CapMan's ownership
CapMan’s ownership 31 March 2008 6% 3% 30% 11% 35% 35% 14% 35% 31% Nominee registered and foreign shareholders Nominee registed and foreign shareholders CapMan Partners B.V. and employee shareholders* Corporations Households Other owners Non-profit and public sector institutions CapMan Partners B.V.
Slide 34: CapMan Plc's 12 largest shareholders
CapMan Plc’s 12 largest shareholders Share of all Share of all 31 March 2008 shares % voting rights % 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 Li