Slide 1: Janne Larma – CEO of eQ Group
Janne Larma – CEO of eQ Group 21.8.2013
Slide 2: eQ Group today
eQ Group today Full-service asset manager and leading corporate finance advisor Asset management Corporate finance Investments Full service asset manager Advium From own balance Full range of mutual funds Mergers and acquisitions Investments in 20 private Private equity Large real-estate t
Slide 3: eQ Group timeline
eQ Group timeline High level of activity Key events in eQ Group’s history 2000: 2007: 2009: Demerger of Finvest: jklj 2002: eQ acquires Nordnet divests Asset Evox Rifa WIP Fund Management Acquires eQ Management business and eQ Holding Advium through MBOs Vestcap 2009: eQ Amanda Capital 2004: eQ acqu
Slide 4: From an investment company...
From an investment company... ... to a financial services company Considerable increase in fee income 22.6 Fees (€'m) 5.1 (23%) 16.3 ICECAPITAL (€'m) Investments (€'m) 5.1 (31%) 17.5 (77 %) 5.1 11.2 (69%) 1.1 (22%) 4.0 (78%) 2010 2012 2012PF Key financial data (€’m) (€'m) 2010 2012 2012PF Fee income
Slide 5: Asset management in Finland
Asset management in Finland Finnish asset management has grown significantly... AuM development 1992 (€’bn) AuM (€'bn) 80 66,0 66,3 68,3 60,9 61,5 60 54,3 55,4 44,7 41,3 40 31,1 22,1 20 13,5 14,5 15,7 10,2 1,9 3,1 4,9 0,1 0,6 1,0 0,9 0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 20
Slide 6: Asset management globally
Asset management globally AuM development 2007 - 2013 Global AuM European AuM Finnish AuM Global AuM (€'tn) Europe AuM (€'tn) Finland AuM (€'bn) 28 8 80 69,1 6,6 66,0 66,3 21,8 6,1 6,2 61,5 20,3 5,9 21 6 5,6 60 54,3 55,4 17,8 18,5 18,4 5,2 15,9 4,5 13,6 41,3 14 4 40 7 2 20 0 0 0 2007 2008 2009 2010
Slide 7: Low market penetration in Finland
Low market penetration in Finland ... and continued growth is expected Finland Sweden Denmark 507 funds 2012 AuM: €66bn 546 funds 2012 AuM: €172bn 859 funds 2012 AuM: €164bn 2012 GDP: €194bn 2012 GDP: €408bn 2012 GDP: €244bn 316 67% 42% 191 34% 131 Avg. AuM (€'m) AuM/GDP Avg. AuM (€'m) AuM/GDP Avg.
Slide 8: Market participants
Market participants Overview of the largest Finnish asset management companies Commercial banks* Independent Independent Independent* AuM (€’bn) AuM (€’bn) Other known AuM(€’bn) AuM (€’m) 24 8 800 21,3 6.3 626 18 6 600 1,1 5.3 535 13,2 12 4 400 9,6 3,5 324 5,2 2.4 2.2 195 6 2 0,5 200 3,6 3,6 1.3 1.2
Slide 9: eQ Asset Management...
eQ Asset Management... ... a leading Finnish financial services company Top investment services companies 2012 2011 Danske Capital 60% 57% Pohjola 56% 59% Nordea 51% 56% SEB 51% 48% Evli 47% 54% ICECAPITAL 25% 24% Aktia 23% 27% 22% % of investors citing the company eQ 17% as one of their service pro
Slide 10: Key success factors
Key success factors Important aspects of a successful asset management business Reputation Product portfolio Operational efficiency Personnel Always in the best interest Complete offering IT CRM of the clients Standard products falling Back office Attract new talent, keep the Deliver
Slide 11: Consolidation of Finnish asset management
Consolidation of Finnish asset management Too many players on too small a playing ground Reasons why Finnish asset management companies continue to consolidate? Institutions want less asset managers Asset managers will need an increasingly wide product pallette Economies of scale business – to
Slide 12: Recent market development
Recent market development Strong sector consolidation within the asset management business Significant transactions 2012 – 2013 2012 2012 2012 merges with takes ownership of 2013 acquires the asset management business of merges with 2012 2012 2013 acquires speciality asset acquires the asset managem
Slide 13: eQ service offering
eQ service offering A full-service asset management company Assets under management EUR 6.3 billion Main focus on institutional clients and wealthy Private equity 2.6bn individuals 2,6 2,6 eQ mutual funds 1.1bn Superior fund performance during the last 24 3rd party mutual funds 2.6bn months 1,1
Slide 14: A closer look...
A closer look... Innovative investment solutions to maintain eQ’s momentum eQ Emerging Dividend eQ Care ”20.4 % outperformance since inception ”Finland’s first mutual fund investing 18.4 % outperformance in 12 months” directly in care real estate assets” Invests in publicly traded companies with h
Slide 15: eQ Asset Management
eQ Asset Management Financial development 2011 - 2013 Quarterly fee income Fee income (€'m) 4 3 2 3,2 3,5 2,6 1 2,1 2,2 2,1 2,1 2,2 0 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2 Quarterly EBIT EBIT (€'m) 1,8 1,2 0,6 1,2 0,6 0,5 0,5 0,5 0,5 0,4 0 -0,5 -0,6 2011 Q3 2011 Q4 2012 Q1
Slide 16: Advium Corporate Finance
Advium Corporate Finance Leading corporate finance advisor in Finland Advium Corporate Finance Ltd. is a leading Finnish corporate finance advisor having advised in more than 100 transactions with a deal value in excess of 9 billion euro ”The leading advisor in Finland 2009-2012” Mergers & Acquisi
Slide 17: Advium net sales vs. Finnish deal volume
Advium net sales vs. Finnish deal volume Advium Corporate Finance – net sales and deal volume Value Volume 16 20 Advium - Net sales (€'m) # Deals* 12 15 8 10 14,3 4 8,4 7,3 5 4,5 3,3 2,4 2,5 2,5 2,6 0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 Finnish M&A data – deal value and volume Value Volum
Slide 18: Advium Corporate Finance
Advium Corporate Finance Examples of completed transactions 10/2012 5/2011 8/2010 7/2010 10/2009 1/2009 4/2008 Pääkaupunkiseudun Partiosäätiö and Hämeen Partiosäätiö CLOETTA FAZER sold sold increased acquired sold its demerged into sold Mergers & its ownership from Margarine business two separate co
Slide 19: Advium Corporate Finance
Advium Corporate Finance Financial development 2011 - 2013 Quarterly fee income Fee income (€'m) 1,6 1,2 0,8 1,1 0,4 0,6 0,5 0,6 0,5 0,4 0,4 0,4 0 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2 Quarterly EBIT EBIT (€'m) 0,4 0,3 0,2 0,4 0,1 0,2 0,1 0,1 0,1 0,1 0,1 0 0 2011 Q3 2011 Q4
Slide 20: eQ Investments
eQ Investments Financial development 2011 - 2013 Quarterly net investment income 4 3 2 4 3 1 2,2 0,9 0,1 0 -0,4 -0,1 -0,1 -1 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2 Quarterly EBIT EBIT (€'m) 4 3 2 4 3 1 2,2 0,9 0,1 0 -0,4 -0,1 -0,1 -1 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 2
Slide 21: Investments from balance sheet
Investments from balance sheet Long history of private equity investments eQ has investments in 20 private equity funds EQT V L.P. Gresham Fund Permira Europe Triton Fund II EQT IV (No. 1) Montagu III L.P. PAI Europe IV IV L.P. IV L.P. L.P. L.P. 2006 2006 2006 2006 2004 2005 2005 Charterhouse Merlin
Slide 22: eQ Group today
eQ Group today Full-service asset manager and leading corporate finance advisor EUR millions 1-6/2013 1-6/2012 2012 Net revenue 9.8 6.0 16.3 Operating profit 3.2 1.3 4.7 Profit for the period 2.2 1.0 3.4 Earnings per share 0.06 0.03 0.10 Shareholders' equity 71.1 68.5 73.6 Total balance sheet 76.2 7
Slide 23: eQ ownership and share price development
eQ ownership and share price development 33 % of shares held by key personnel # Shareholders 31.7.2013 Shares % eQ share price development 1 Fennogens Investments S.A. 5,794,307 15.9 % eQ Oyj Volume (1,000) eQ Oyj OMXH 2 Chilla Capital 4,271,637 11.7 % 2,5 4 000 3 Ulkomarkkinat Oy 3,690,466 10.1 % 4