Capman Oyj Class B · OMXHEX:CAPMAN
Capman Oyj Class B — Q3 2016 Earnings Presentation
27 slides from Capman Oyj Class B's earnings presentation, Nov 3, 2016
Slide 1: CapMan Plc January – September 2016 results
CapMan Plc January – September 2016 results Niko Haavisto, CFO Helsinki, 3 November 2016
Slide 2: Disclaimer
Disclaimer Certain statements included in this material, including, without limitation, statements regarding future performance of the company, expectations regarding market growth and trend projections as well as any statements preceded by the words ”expect”, ”believe”, ”foresee” or similar express
Slide 3: Contents
Contents • Highlights for 1-9 2016 and strategy execution • Business environment • Results for 1-9 2016 • Outlook for 2016
Slide 4: Highlights for January–September 2016
Highlights for January–September 2016 1. 2. 3. Continued result Return on investments +10.9% p.a.* Good exits: significant improvement – EPS 7.3 result and cash flow Investments in own funds 13.7% p.a. cents (1.5 cents 1-9/2015) impact Norvestia 9.6% p.a. 4. 5. 6. Growth: €400 million real Growth: €
Slide 5: Focus areas for 2016
Focus areas for 2016 Fee profitability 1. Fundraising for new 2. Growth of service 3. Savings from the Real Estate and Credit business relocation of offices funds Carried interest income and fair 4. Continued value 5. Acceleration of growth 6. Launch of new value development of CapMan investments in
Slide 6: Contents
Contents • Highlights for 1-9 2016 and strategy execution • Business environment • Results for 1-9 2016 • Outlook for 2016
Slide 7: 2016 is set to break real estate transaction records
2016 is set to break real estate transaction records € bn 7,0 €5.3B 6,0 5,0 14% 29% Muut Other 4,0 19% Toimisto Office 3,0 27% Liike Retail 2,0 Residential Asunto 1,0 40% 0,0 2007 2011 2012 2013 2014 2015 1-9/16 Kotimainen ostaja Domestic buyer Kansainvälinen ostaja International buyer Source: KTI,
Slide 8: Fundraising into Nordic Buyout funds
Fundraising into Nordic Buyout funds 12000 10000 8000 6000 4000 2000 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Pipeline 2016 Source: Argentum Nordic Private Equity Report 2015 (June 2016) 8 CapMan Plc 1-9 2016 results 3 November 2016
Slide 9: Private Equity: return/risk profile per strategy
Private Equity: return/risk profile per strategy Return/risk profile per strategy 25% Risk - Standard Deviation of Net IRR 20% 15% 10% 5% 0% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Median Net IRR Buyout Growth Turnaround Secondaries Venture Capital Fund of Funds Other Private Equity* Source: Preqin P
Slide 10: Contents
Contents • Highlights for 1-9 2016 and strategy execution • Business environment • Results for 1-9 2016 • Outlook for 2016
Slide 11: Group turnover and operating profit
Group turnover and operating profit € million Turnover € million Operating profit 40 12 10.0 31.8 10 9.3 30 24.7 22.0 8 7.2 20 6 15.7 15.4 4.2 3.8 3.6 4 10 7.3 7.5 2 0.9 0 0 1-3 1-6 1-9 1-12 1-3 1-6 1-9 1-12 2015 2016 2015 2016 11 CapMan Plc 1-9 2016 results 3 November 2016
Slide 12: The development of turnover and operating profit since 2012
The development of turnover and operating profit since 2012 Turnover Operating profit 45 12 39,5 40 10 10 9,3 35 31,8 29,8 30 27,3 8 24,7 6,4 25 22 6 20 4,2 15 4 3,3 2,6 10 2 5 0 0 2012 2013 2014 2015 1-9 2015 1-9 2016 2012 2013 2014 2015 1-9 2015 1-9 2016 12 CapMan Plc 1-9 2016 results 3 November 2
Slide 13: Management Company and Services business
Management Company and Services business € million 1-9/2016 1-9/2015 Lower carried interest income compared to the comparable Turnover 22.0 24.7 period impacted overall result of the Management Company and Fees 20.2 20.3 Services business Carried interest 1.8 4.4 Operating expenses 21.0 21.3 Operati
Slide 14: Investment business profitability improved significantly y/y
Investment business profitability improved significantly y/y € million 1-9/2016 1-9/2015 The positive change in fair value of fund investments was mainly Fair value gains of due to competed and agreed exit 8.9 0.5 investments processes FV of fund investments 5.5 1.0 FV of investment in 3.5 -0.9 Norv
Slide 15: Adjusted result components for Jan–Sep 2016
Adjusted result components for Jan–Sep 2016 € Mn Adjustments to performance 35,0 Adjusted turnover measures 8.9 -19.4 30,0 €21.2 mn 1-9/2016 1-9/2015 Turnover 22.0 15.7 25,0 1.0 0.1 Investment teams’ 20.2 20,0 share of carry -0.8 -1.0 15,0 Adjusted turnover 21.2 14.7 10.8 10,0 Operating profit 10.0
Slide 16: Investments €97.9 mn and commitments €25.6 mn in total
Investments €97.9 mn and commitments €25.6 mn in total 60 50 40 30 48,7 20 10 20,0 13,9 4,1 2,4 2,9 0,7 5,2 0 Buyout Real Estate Russia Credit Others Fund of funds Norvestia Joint Ventures Investments, € mn 16 CapMan Plc 1-9 2016 results 3 November 2016
Slide 17: Fair values of fund investments
Fair values of fund investments 30.9.2016 Fair value changes of 40 portfolio companies Fair value changes of 69 real estate in 2016* investments in 2016 * 0% 15 % 9% 20 % 40 % 33 % 43 % 40 % New investments Fair value has increased Fair value is unchanged from 31.12.2015 Fair value has decreased *Ex
Slide 18: Financial targets
Financial targets Target Performance 1-9/2016 Profitability Return on equity of over 20% Return on equity 14.3% p.a. Capital structure Equity ratio of 45–60% Equity ratio 44.8% Payout ratio of at least 60% of Dividend policy earnings per share 0.07 € per share in 2015 18 CapMan Plc 1-9 2016 results
Slide 19: Contents
Contents • Highlights for 1-9 2016 and strategy execution • Business environment • Results for 1-9 2016 • Outlook for 2016
Slide 20: CapMan maintains outlook for 2016
CapMan maintains outlook for 2016 The Management Company and Services business is profitable before carried interest income and any possible items affecting comparability. CapMan expects fees from services to continue growing and to constitute a larger share of overall fee income in 2016 compared to
Slide 21: IR calendar and IR team
IR calendar and IR team IR Calendar 2016 IR team • Events by Finnish foundation Heikki Westerlund, CEO, Senior Partner for share promotion Tel. +358 207 207 504 Turku 16 Nov 2016 heikki.westerlund@capman.com Espoo 21 Nov 2016 Tampere 23 Nov 2016 • Nordnet morning Niko Haavisto, CFO Helsinki 24 Nov 2
Slide 22: Contents
Contents • Highlights for 1-9 2016 and strategy execution • Business environment • Results for 1-9 2016 • Outlook for 2016 • Attachments
Slide 23: Group Income Statement, IFRS
Group Income Statement, IFRS € million 1-9/2016 1-9/2015 Turnover 22.0 24.7 Fees 20.2 20.3 Carried interest 1.8 4.4 Other operating income 0.1 0.3 Operating expenses -21.0 -21.3 Fair value changes of investments 8.9 0.5 Operating profit 10.0 4.2 Financial income and expenses -2.5 -1.7 Profit before
Slide 24: Group Balance Sheet – Assets, IFRS
Group Balance Sheet – Assets, IFRS € thousands 30.9.2016 30.9.2015 Tangible assets 163 215 Goodwill 6,204 6,204 Other intangible assets 331 552 Investments accounted for using the equity method 95 43 Investments at fair value through profit and loss Investments in funds 44,000 47,333 Other financial
Slide 25: Group Balance Sheet – Total equity and liabilities, IFRS
Group Balance Sheet – Total equity and liabilities, IFRS € thousands 30.9.2016 30.9.2015 Share capital 772 772 Share premium account 38,968 38,968 Other reserves 27,483 27,175 Translation difference 156 74 Retained earnings -1,067 -5,021 Total equity 66,312 61,968 Deferred income tax liabilities 1,9
Slide 26: Key figures
Key figures 30.9.2016 30.9.2015 Earnings per share, cents 7.4 1.5 Diluted, cents 7.3 1.5 Shareholders' equity / share, cents * 76.8 72.0 Share issue adjusted number of shares 86,293,531 86,290,467 Number of shares at the end of period 86,325,511 86,316,766 Number of shares outstanding 86,299,212 86,
Slide 27: CapMan Plc's largest shareholders 30 September 2016
CapMan Plc’s largest shareholders 30 September 2016 Shares of all shares, % Shares of all voting rights, % Gimv NV*** 9.9 % 6.2 % Ilmarinen Mutual Pension Insurance Company 8.3 % 5.2 % Oy Inventiainvest Ab + (Ari Tolppanen**) 8.1 % 19.4 % Joensuun Kauppa ja Kone 4.4 % 2.8 % Varma Mutual Pension Insu