Capman Oyj Class B · OMXHEX:CAPMAN
Capman Oyj Class B — H1 2007 Earnings Presentation
33 slides from Capman Oyj Class B's earnings presentation, Aug 10, 2007
Slide 1: CapMan Plc Interim Report Jan-Jun 2007
CapMan Plc Interim Report 1 Jan - 30 Jun 2007 10 August 2007 Heikki Westerlund 10 August 2007 1
Slide 2: General trends
General trends • Valuations still on historically high levels, especially in buyouts and real estates • There has been some challenges in putting together syndicated debt packages as far as big buyout investments are concerned and this is expected to affect to certain extend the availability and pri
Slide 3: Strong market coverage for CapMan teams
Strong market coverage for CapMan teams between 1 Jan 2006 - 31 Mar 2007 • CapMan Buyout evaluated 80% of the 65 Nordic middle-market* buyout transactions completed during the period • CapMan Technology evaluated 72% of the 93 Nordic technology transactions raising more than M€1 – Additionally, majo
Slide 4: CapMan and Altor most active investors within the Nordic middle market
CapMan and Altor most active investors within the Nordic middle market* (most active private equity investors between 1 Jan 2006 - 31 Mar 2007) # transactions 7 6 5 4 3 6 6 2 4 3 3 3 3 1 2 2 2 2 2 2 2 2 2 1 0 an Al to r el ital qui ty on ah en t ax C T F er d l pita j erna n to s . Co es tors apM Ax
Slide 5: Evolution of pricing and gearing levels
Evolution of pricing and gearing levels • Average equity piece ~34% of transaction • Senior financing increases with transaction size • Signs of saturation can be seen EV/EBITDA multiple evolution Debt/EBITDA multiple evolution (for all European buyouts) (for all European buyouts) 9 8.5x 9 8 8 7 7 6
Slide 6: CapMan's main events in 2007
CapMan’s main events in 2007 New funds raised New investments New exits CapMan Life Science IV CapMan Real Estate II CapMan Technology 2007 (1st closing 2/2007) TELEMARK GROUP 11 real estate investments Portfolio of CapMan Real Estate I New investments in H1 totalled €161.7 million, in addition €310
Slide 7: CapMan – the Nordic private equity house
CapMan – the Nordic private equity house • 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 €300.1 million incl. A shares (closing price €3.89 on 7 August 2
Slide 8: Strong growth in capital under management
Strong growth in capital under management Capital under mgmt, M€ Domestic partnership Nordic presence and funds MBO LISTING 3,200 3,000 Real Estate funds 18% 2,800 Life Science funds 2,600 2,400 Technology funds 2,200 Mezzanine funds 2,000 Buyout funds 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0
Slide 9: Components of income and operating costs
Components of income and operating costs (30 Jun 2007, M€) Total effect of own investments €4.9 million 45.0 Turnover 4.6 0.1 €35.6 million 40.0 21.4 0.5 0.3 13.8 35.0 30.0 Minority interest 1.1 0.5 Pre-tax profit in €7.6 million €28.1 million 25.0 20.0 Share of equity holders’ of the Company €13.8
Slide 10: Turnover and operating profit in Jan - Jun 2007
Turnover and operating profit in Jan - Jun 2007, M€ Turnover Operating profit 40 38.0 30 35.6 26.5 35 25.4 25 28.1 29.0 30 20 25 15.6 20 18.4 15 12.0 15 10 7.6 10 8.9 5.2 5 5 0 0 1-3 1-6 1-9 1-12 1-3 1-6 1-9 1-12 2006 2007 2006 2007 10 August 2007 10
Slide 11: Profit before and after taxes in Jan - Jun 2007
Profit before and after taxes in Jan - Jun 2007, M€ Profit before taxes Profit after taxes 30 25 28.1 26.7 20.9 25 19.9 20 20 17.3 15 12.4 15 12.6 9.5 10 10 7.9 5.9 5.1 5 3.7 5 0 0 1-3 1-6 1-9 1-12 1-3 1-6 1-9 1-12 2006 2007 2006 2007 10 August 2007 11
Slide 12: Management fees in Jan - Jun 2007
Management fees in Jan - Jun 2007, M€ 30 • Increased due to management fees 24.9 received from funds established after 25 comparative period i.e. CapMan Technology 2007 and CapMan RE II 20 18.7 • The sum of management fees received from older funds fell due to the exits 15 that were executed after t
Slide 13: Carried interest in Jan - Jun 2007
Carried interest in Jan - Jun 2007, M€ 25 • Carried interest accrued as follows: 21.2 21.4 – The sale of CapMan Real Estate I’s 20 portfolio accrued €21 million, of Minority interest which the share belonging to the €7.6 million owners of the parent company was 15 €13.4. million – The remaining carr
Slide 14: Analysing short-term carried interest potential
Analysing short-term carried interest potential: Funds generating carried interest / old funds 30 June 2007 Current portfolio at cost: €102.6 million Current portfolio at fair value: €105.8 million Current portfolios Buyout Technology FV II FV III + III G Fenno Fund Fenno/ Skandia I Fenno/ Skandia I
Slide 15: Funds generating carried interest / Finnventure V
Analysing short-term carried interest: Funds generating carried interest / Finnventure V 30 June 2007 Fund size: €169.9 million Carried interest of fund’s Portfolio at cost: €62.4 million cash flows: 20 % Portfolio at fair value: €56.9 million CapMan’s share of Cash flow to investors : €213.5 millio
Slide 16: Funds generating carried interest / CapMan Real Estate I
Analysing short-term carried interest: Funds generating carried interest / CapMan Real Estate I 30 June 2007 Fund size: €500.0 million Carried interest of fund’s Remaining investment capacity: approx. €80.0 million* cash flows: 40 % Portfolio at cost: €21.3 million CapMan’s share of Portfolio at fai
Slide 17: Fund investments made from CapMan's own balance sheet
Fund investments made from CapMan’s own balance sheet • Since 2002 CapMan has been a significant investor in the funds managed by the Group • CapMan invests 5-10% of the total capital in CapMan’s equity funds investing in portfolio companies M€ 100 90 75% of the remaining 80 commitments targeted at
Slide 18: The impact of own fund investments, M€
The impact of own fund investments, M€ 4.9 • The impact on the Company’s result 5 4.4 4.4 totalled €4.9 million – Realised returns €0.3 million (€0.7 4 million) 3.4 – Gains in the fair value of 3 investments €4.6 million (€1.7 2.4 million) 2.2 • Fair value gains were related in 2 particular to value
Slide 19: CapMan Equity VII with largest potential
CapMan Equity VII with largest potential - impact of own investments and carried interest potential 30 June 2007 CAPMAN EQUITY VII A B C Sweden In total Fund size: 156.7 56.5 23.1 67.0 303.3 CapMan’s commitment: Portfolio at cost: 85.6 33.9 10.3 36.6 166.4 €16.0 million Portfolio at fair value: 144.
Slide 20: Turnover and result development
Turnover and result development • Capital under management €3,013.2 million (€2,322.7 million at 30 June 2006) • Turnover €35.6 million (€18.4 million) • Management fees €12.3 million (€12.4 million) • Carried interest income €21.4 million (€3.8 million) • Income from real estate consulting €1.1 mil
Slide 21: Income Statement
Income Statement € million 2003 2004 2005 2006 Q2/07 FAS IFRS IFRS IFRS IFRS Turnover 18.7 28.1 28.7 38.0 35.6 Management fees 17.8 17.8 20.3 24.9 12.3 Carried interest 0.2 9.1 6.6 9.4 21.4 Income of investments in funds - 0.2 0.5 0.9 0.3 Income from real estate consulting* 0.9 2.0 1.1 Other income
Slide 22: Key figures
Key figures 2003 2004 2005 2006 Q2/07 € million FAS IFRS IFRS IFRS IFRS Earnings per share, € 0.02 0.06 0.09 0.15 0.20 Diluted, € 0.02 0.06 0.09 0.15 0.20 Shareholders’ equity / share, € 0.61 0.59 0.64 0.74 0.89 Dividend / share, € 0.05 0.06 0.07 0.12 - Dividend / result, % 327.0 94.4 78.0 80.0 - Di
Slide 23: Fundraising
Fundraising • After the review period commitments to CapMan Technology 2007 risen to €140 million, fundraising continues – Target size €150 million • Final closing of CapMan Life Science IV on 24 May 2007 at €54 million • Final closing of CapMan RE II on 3 April 2007 at €600 million – 25% equity and
Slide 24: New portfolio company investments in 2007
New portfolio company investments in 2007 Komas Oy, Mirasys Oy Buyout, Finland Technology, Finland Skandia Autologistics, Novintel Oy Buyout, Finland Technology, Finland Walki Group Movial Oy Buyout, Finland Technology, Finland Nacka Närsjukhus Proxima AB IT 2 Treasury Solutions Buyout and Life Scie
Slide 25: New Real Estate investments in 2007
New Real Estate investments in 2007 Kalevankatu 20, Viinikankatu 49, Mastola Logistics Helsinki Tampere Centre, Vantaa Kasarmikatu 4, Malminkaari 9, Lönnrotinkatu 20, Hämeenlinna Helsinki Helsinki Parolantie 104, Land Area Skanssi Shopping Hämeenlinna in Kivistön, Centre, Vantaa Turku Tokmanni Entre
Slide 26: Exits in 2007
Exits in 2007 Sale of CapMan Real Distocraft Oy, Estate I portfolio Technology, Finland (22 real estates) SysOpenDigia Plc(ex- LindPlast A/S Sentera Plcj), Buyout, Denmark Technology, Finland Synerco AB Buyout, Sweden MediaNorth Oy Technology, Finland Announced/partial exits Eco-Dan A/S, Secgo Sofwa
Slide 27: Strategy
Strategy • CapMan’s strategy is to exploit growth opportunities within the alternative asset class. In addition to CapMan’s existing product areas (Private Equity, Real Estate) the alternative asset class includes, among others, infrastructure investment, forestry investment and active public market
Slide 28: Future outlook
Future outlook • The Group’s profit before taxes for 2007 will clearly improve from that of 2006. • The final result for 2007 will depend on how many exits by funds already generating carried interest will occur by the end of 2007 and on how the value of investments develops in those funds in which
Slide 29: IR contacts
IR contacts Heikki Westerlund, CEO, Senior Partner tel. +358 9 6155 8304 heikki.westerlund@capman.com Jerome Bouix, Partner, Fundraising, IR and Communications tel. +358 9 6155 8358 jerome.bouix@capman.com Olli Liitola, CFO, Senior Partner tel. +358 9 6155 8306 olli.liitola@capman.com Mari Reponen,
Slide 30: Share price development (12 months rolling)
Share price development (12 months rolling) € 4.2 65 4.0 60 3.8 55 3.6 50 3.4 45 3.2 3.0 40 2.8 35 2.6 30 2.4 25 2.2 20 2.0 15 1.8 1.6 10 1.4 5 1.2 0 1.0 -5 07/08/06 07/10/06 07/12/06 07/02/07 07/04/07 07/06/07 07/08/07 07/08/06 07/10/06 07/12/06 07/02/07 07/04/07 07/06/07 07/08/07 CapMan B CapMan 2
Slide 31: Partnership model strengthened - CapMan's share ownership enlarged
Partnership model strengthened - CapMan’s share ownership enlarged 31 July 2007 • All Senior Partners shareholders of CapMan Plc • CapMan Partners B.V. form the second largest shareholder and the largest user of voting rights Of shares Of voting rights Senior Partners 29% 39% 37% 65% 6% 24% Current
Slide 32: CapMan's ownership
CapMan’s ownership 31 July 2007 6% 9% 28% 3% 32% 36% 14% 36% 36% CapMan Partners B.V. and employee shareholders Corporations Nominee registered and foreign shareholders Nominee registed and foreign shareholders Other owners Households Financial and insurance corporations Non-profit and public sector
Slide 33: CapMan Plc's 12 largest shareholders
CapMan Plc’s 12 largest shareholders 31 July 2007 Shares % Votes % Aristo Invest Oy + Ari Tolppanen* 11.0% 14.8% CapMan Partners B.V. 6.4% 24.2% Winsome Oy + Tuomo Raasio* 4.8% 7.5% Vesasco Oy 4.2% 2.5% Heiwes Oy + Heikki Westerlund* 3.8% 4.0% Geldegal Oy + Olli Liitola* 3.6% 7.5% The State Pension