Capman Oyj Class B · OMXHEX:CAPMAN
Capman Oyj Class B — Non-Deal Roadshow (February 2011)
45 slides from Capman Oyj Class B's roadshow presentation, Feb 15, 2011
Slide 1: CapMan IR Roadshow presentation
CapMan IR Roadshow presentation 15 February 2011, London Lennart Simonsen, CEO, Senior Partner Jerome Bouix, Head of Investor Services, Senior Partner
Slide 2: Contents
• CapMan’s business and updated Contents strategy • Market environment • Result 2010 2 CapMan IR Roadshow presentation 15 February 2011
Slide 3: CapMan – Unique private equity investor
CapMan – Unique private equity investor • Over 20 years’ experience from Nordic and Russian private equity – Strong local presence and market coverage – International client base and fundraising • Excellent track record – Demonstrated capability to create value – 3.1x money back multiple from 69 rea
Slide 4: CapMan’s mission, vision and strategy
CapMan’s mission, vision and strategy Our 2020 vision To be the best-performing European private equity firm Strategy We combine the strengths of entrepreneurial partnerships and all capabilities within CapMan to provide excellent returns to our investors Mission – the core purpose of CapMan We buil
Slide 5: CapMan’s strategy
CapMan’s strategy We combine the strengths of entrepreneurial partnerships and all capabilities within CapMan and thus provide excellent returns to investors All capabilities Entrepreneurial partnerships within CapMan • Four key investment areas: • Geographical spread and cross-intelligence • Buyout
Slide 6: CapMan’s organisation
CapMan’s organisation CEO Management Group Investment areas* CapMan CapMan CapMan CapMan Buyout Russia Public Market Real Estate • Unlisted Nordic mid- • Growth financing in • Listed Nordic small • Commercial and hotel market companies Russian SMEs with and mid cap properties, and • Both equity and
Slide 7: Excellent track record
Excellent track record 31 December 2010 • Excellent track record with top quartile returns • Over 60 investment professionals in four key investment teams 3.1x money back multiple for 1.3x money back multiple for investments in portfolio companies real estate investments – equity returns considerabl
Slide 8: Contents
• CapMan’s business and updated Contents strategy • Market environment • Result 2010 8 CapMan IR Roadshow presentation 15 February 2011
Slide 9: European fundraising fell record low in 2010
Fundraising European fundraising fell record low in 2010 • Fundraising for European buyout European buyout and growth fundraising 2004-2010 and growth financing fell record 200 $bn low and was approx. $37bn in 2010. $143bn 150 • The picking-up of M&A market and capital distributions to investors is
Slide 10: Small to mid-market buyout funds continue to attract investors globally
Fundraising Small to mid-market buyout funds continue to attract investors globally Global investor appetite, respondents include 100 institutions • Small to mid-market buyout funds are continuing to attract significant investor interest. Over 50% of respondents name them as a fund type presenting g
Slide 11: Growth prospects for established GP’s remain good in the medium and long term
Fundraising Growth prospects for established GP’s remain good in the medium and long term Global investor appetite, respondents include 100 institutions LP’s intentions for their PE allocations LP’s intentions for GP relations in 2 years time 4% 10 % 100 % 11 % 80 % 63 % 54 % 60 % 44 % 40 % 20 % 44
Slide 12: Buyouts in the Nordic region nearly doubled in 2010
Investment operations Buyouts in the Nordic region nearly doubled in 2010 • The value of European buyouts almost tripled from €23.8bn in 2009 to €63.1bn in 2010. • The overall value of buyouts in Nordic region increased by 76% from €4.2bn in 2009 to €7.5bn in 2010 according to preliminary statistics
Slide 13: Bank financing at a good level for M&A and real estate transactions
Investment operations Bank financing at a good level for M&A and real estate transactions Annual European senior loan volume Monthly European senior loan volume last 12 months €160bn 300 €4,0bn €140bn €3,5bn 250 €120bn €3,0bn 200 €100bn €2,5bn €80bn 150 €2,0bn €60bn €1,5bn 100 €40bn €1,0bn 50 €20bn
Slide 14: Debt-to-EBITDA ratios slightly increasing in small & mid-sized transactions
Investment operations Debt-to-EBITDA ratios slightly increasing in small & mid-sized transactions Equity contributions in Leverage ratios in small & mid-sized European buyouts European buyouts (EV<250MEUR) 60 % 50.6% 6,0x 5,6x 4,9x 50 % 5,0x 4,7x 4,7x 4,0x 4,0x 40 % 33.6% 4,0x 3,8x 3,6x 3,5x 3,2x 30
Slide 15: Signs of recovery on Finnish real estate market
Investment operations Signs of recovery on Finnish real estate market although activity still on low level • Value and number of real estate transactions remained on a moderate level during 2010. • Significant part of the transactions carried out between Finnish institutional investors, but internat
Slide 16: Contents
• CapMan’s business and updated Contents strategy • Market environment • Result 2010 16 CapMan IR Roadshow presentation 15 February 2011
Slide 17: Busy year with several investments and exits
Busy year with several investments and exits 11 final and 2 partial exits from 9 portfolio company investments portfolio companies Fundraising projects in 2010 2 real estate investments 1 exit from real estate investment + PARTIAL EXITS • CapMan Buyout IX closed at €295m in July. • CapMan Mezzanine
Slide 18: Significant events in Q4/2010 and Jan-Feb 2011
Significant events in Q4/2010 and Jan-Feb 2011 • Access transaction – 30% of Access Capital Partners Group S.A. sold to Pohjola – Impact of €22.7 million on CapMan's 2010 result – CapMan continues to be an Access shareholder with a 5% stake – Entitlement to possible carried interest income will rema
Slide 19: Group turnover and operating profit
Group turnover and operating profit • Operating profit excluding non-recurring items was €6.3m Turnover Operating profit / loss € million € million 40 38.2 30 36.3 21.0 29.7 30 20 26.3 21.0 20 10 16.8 6.0 4.3 4.5 11.4 0.1 10 8.1 0 -2.2 -4.7 -4.2 0 -10 1-3 1-6 1-9 1-12 1-3 1-6 1-9 1-12 2009 2010 2009
Slide 20: Components of income and operating costs
Components of income and operating costs 31 December 2010 Turnover €38.2 80 million 70 23.0 -3.8 -0.8 -0.6 Operating profit 60 -37.6 €21.0 million 50 2.7 1.1 40 2.6 32.9 1.6 Profit before 30 2.4 taxes €23.9 0.6 million 20 10 0 Management fees Income from real estate consulting Carried interest Other
Slide 21: Good result for Management Company business
Management Company business Good result for Management Company business € million 2010 2009 • Turnover and profit increased clearly following mainly Access transaction Turnover 38.2 36.3 • Operating expenses include €5.2m Management fees 32.9 33.3 non-recurring expenses in the last Real estate consu
Slide 22: Management fees and carried interest
Management Company business Management fees and carried interest • Carried interest totalled €2.6 million following mainly the exit from financial administration services company Pretax and the sale of ON2 shares received in connection of Hantro Products exit in 2007. • Majority of exits were made f
Slide 23: Carried interest potential
Carried interest potential 31 December 2010 Portfolios at fair value, €2,292.7 million, and remaining investment capacity, €1,115.0 million 1 %6 % Funds generating carried interest 33 % Funds that are expected to start generating carried interest in 2011-2012 Other funds not yet in carry* 5% 55 % Fu
Slide 24: Impact of own investments and carried interest potential: CapMan Equity VII
Analysing impact of own investments and carried interest potential: CapMan Equity VII 31 December 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: 98% 100% 86% 99% 97% Portfolio at cost vs. Paid-in capital: 56% 58% 58% 55% 56
Slide 25: Impact of own investments and carried interest potential: CapMan Buyout VIII
Analysing impact of own investments and carried interest potential: CapMan Buyout VIII 31 December 2010 CAPMAN BUYOUT VIII In total Fund size: €440.0m Paid-in capital vs. Fund size: 81% Portfolio at cost vs. Paid-in capital: 85% Portfolio at fair value vs. Portfolio at cost: 93% CapMan’s commitment:
Slide 26: Fund Investment business’ result improved
Fund Investment business Fund Investment business’ result improved € million 2010 2009 • Fair value gains and share of Fair value gains/losses associated companies’ result 2.7 -3.3 of investments contributed to the result of Fund Operating profit / loss 2.1 -3.6 Investment business Profit / loss for
Slide 27: Fund investments and commitments totalled €102.8 million
Fund Investment Fund investments and commitments business totalled €102.8 million 31 December 2010 • CapMan’s objective is to invest 1-5% of the original capital in the new funds that it manages, depending on fund size, fund demand, and CapMan’s own investment capacity. € million 140 120 100 80 36.3
Slide 28: Majority of own investments in buyout funds
Majority of own investments in buyout funds 31 December 2010 Investments at fair value and remaining commitments Key holdings for M€ CapMan Plc: 60 50 40 30 20 10 0 + Investments at fair value, in total €66.5 million Remaining commitments, in total €36.3 million Exit / partial exit announced in 2010
Slide 29: Over 4% increase in fair values over 2010
Over 4% increase in fair values over 2010 31 December 2010 Fair value changes in 2010 (ytd) • Fair value development (CapMan’s fund investments) 15 % 23 % – Change in 2010 €2.7m, 4.2% – Change in Q4 €1.1m, 1.6% – The development of individual portfolio companies as well as the changes in the market
Slide 30: New financial objectives
New financial objectives We believe that private equity remains a growth industry, and CapMan continues to exploit growth opportunities especially in its key investment areas Buyout, Russia, Public Market and Real Estate. Growth will be a natural outcome of high performance. Objectives Realised 2010
Slide 31: Key figures as of year-end 2010
Key figures as of year-end 2010 31.12.10 31.12.09 Earnings per share, cents* 17.7 -3.0 Diluted, cents 17.7 -3.0 Shareholders' equity / share, cents** 107.7 94.2 Share issue adjusted number of shares 84,255,467 83,015,987 Number of shares at the end of period 84,281,766 84,281,766 Number of shares ou
Slide 32: Summary of Q4 2010 – operational environment
Summary of Q4 2010 – operational environment Fundraising market is …but institutional investors expect to increase their investments in private expected to remain difficult equity funds in 2011 compared to 2010, which indicates that a gradual improvement could take place in 2011. A more dynamic buyo
Slide 33: Summary of Q4 2010 – CapMan Group
Summary of Q4 2010 – CapMan Group Result for 2010 was good …and we expect operating profit for 2011 to slightly exceed the 2010 mainly as a result of the operating profit, which was MEUR 6.3 excluding non-recurring items. Access sale We have taken significant ...and our decision on not to establish
Slide 34: Future outlook
Future outlook Fund Investment Management Company business Business Returns on direct Management fees Carried interest fund investments from own balance sheet • Management fees are • Exit negotiations are under way in respect of • The development of the fair expected to fall behind the a number of c
Slide 35: Why invest in CapMan?
Why invest in CapMan? • Alternative investing is a strong growth business globally, in all Nordic countries and in Russia • CapMan’s team is one of the most experienced ones in its home market and has a solid track record • Attractive earnings model as an alternative asset manager – Operating costs
Slide 36: Annual General Meeting 2010
Annual General Meeting 2010 Date and venue 30 March 2011, at 10.00 am EET Address Aleksanterinkatu 16–18, 00170 Helsinki (Valkoinen Sali) Dividend proposal €0.12 per share Proposal of new Nora Kerppola, MBA, b. 1964, Board memebers Managing Director, Nordic Investments Claes de Neergaard, M. Sc. (Ec
Slide 37: IR calendar and IR team
IR calendar and IR team IR Calendar IR team Road show, London Lennart Simonsen, CEO, Senior Partner 15 Feb 2011 tel. +358 207 207 567 lennart.simonsen@capman.com AGM 30 Mar 2011, Helsinki Jerome Bouix, Head of Investor Services, Senior Partner Capital Market Day tel. +358 207 207 558 31 Mar, Helsink
Slide 38: Additional slides
Additional slides
Slide 39: Group Income Statement
Group Income Statement € million 1–12/10 1–12/09 Turnover 38.1 36.3 Management fees 32.9 33.3 Carried interest 2.6 0.0 Real Estate consulting 1.6 2.4 Other income 1.0 0.6 Other operating income 23.0 0.1 Operating expenses -42.8 -33.0 Fair value gains / losses of investments 2.7 -3.3 Operating profit
Slide 40: Group balance sheet – Assets, IFRS
Group balance sheet – Assets, IFRS € thousands 31.12.10 31.12.09 Tangible assets 602 838 Goodwill 6,406 10,245 Other intangible assets 2,424 2,972 Investments in associated companies 6,400 6,547 Investments at fair value through profit and loss Investments in funds 66,504 59,421 Other financial asse
Slide 41: Group balance sheet – Total equity and liabilities, IFRS
Group balance sheet – Total equity and liabilities, IFRS € thousands 31.12.10 31.12.09 Share capital 772 772 Share premium account 38,968 38,968 Other reserves 38,679 37,347 Translation difference 69 -392 Retained earnings 12,241 1,097 Capital attributable the Company's equity holders 90,729 77,792
Slide 42: Group balance sheet – largest items
Group balance sheet – largest items 31 December 2010 Assets, €155.8m Equity and liabilities, €155.8m Non-current €112.7m, current €39.6m Equity, €91.0m, liabilities €64.8m Interest Trade and bearing other loans and payables Goodwill borrowings, Liquid Investments and other 4% short term assets in cu
Slide 43: Share price development – CapMan and listed peers
Share price development – CapMan and listed peers 400 % 350 % 300 % 250 % 200 % 150 % 100 % 50 % 16.10.09 16.11.09 16.12.09 16.10.10 16.11.10 16.12.10 16.2.10 16.2.09 16.3.09 16.4.09 16.5.09 16.6.09 16.7.09 16.8.09 16.9.09 16.1.10 16.3.10 16.4.10 16.5.10 16.6.10 16.7.10 16.8.10 16.9.10 16.1.11 CapMa
Slide 44: CapMan’s ownership
CapMan’s ownership 31 December 2010, % of share capital or votes By number of shares By voting rights 24 % 29 % 37 % 39 % 6% 16 % 26 % 23 % Management and personnel Management and personnel CapMan Partners B.V. (senior partners) CapMan Partners B.V. (senior partners) Nominee registered and other for
Slide 45: CapMan Plc’s largest shareholders
CapMan Plc’s largest shareholders 31 December 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% Heiwes Oy + Heikki Westerlund* 3.5% 3.8% Norum Russia Carry Li