Capman Oyj Class B · OMXHEX:CAPMAN
Capman Oyj Class B — Investor Presentation (September 2023)
24 slides from Capman Oyj Class B's investor presentation, Sep 11, 2023
Slide 1: Active ownership for sustainable value creation and growth
Active ownership for sustainable value creation and growth Returns from private assets in an uncertain market Pia Kåll CEO, CapMan Plc 11 S ept em ber 2023
Slide 2: Statements regarding future development and disclaimer
Statements regarding future development and disclaimer The following concerns this document, the related oral presentation by either These factors include the overall economic conditions, including currency and CapMan Plc (hereinafter the "Company“ and together with its subsidiaries the interest rat
Slide 3: Contents
Contents CapMan at a glance Strategy implementation Recent performance 3
Slide 4: CapMan is a mid-market private asset specialist
CapMan is a mid-market private asset specialist Home for specialized, entrepreneurial mid-market investment teams SERVICE MANAGEMENT COMPANY BUSINESS BUSINESS Earnings model REAL ESTATE INFRA PRIVATE EQUITY AND CREDIT WEALTH CORE/ INCOME RESIDENTIAL BUYOUT GROWTH CORE+ Management fee and service fee
Slide 5: CapMan's portfolio companies and properties in brief
CapMan’s portfolio companies and properties in brief 40 €1.3 bn 223 €3.2 bn Portfolio companies AUM Properties AUM 14,700 8,700 Aggregate employees Aggregate tenants €2.4 bn 1,750,000 m2 Aggergate turnover Aggregate gross area 5 As of 31 December 2022
Slide 6: Largest shareholders and ownership distribution
Largest shareholders and ownership distribution Shareholder # shares % shares Shareholder composition 1 Silvertärnan Ab 21,280,519 13.40% 2 Ilmarinen Mutual Pension Insurance Company 8,722,689 5.49% Others Finnish 29 % households 3 Laakkonen Mikko Kalervo 6,478,320 4.08% 51 % 4 Varma Mutual Pension
Slide 7: Agenda
Agenda CapMan at a glance Strategy implementation Recent performance 7
Slide 8: The most responsible Nordic private asset company
The most responsible Nordic private asset company Active ownership in today’s economic and regulatory environment… …in small- and mid-cap companies accelerate growth with sustainable business models …in mid-cap infrastructure support green transition and sustainable operating models …in opportunisti
Slide 9: CapMan grows by introducing new private asset strategies and integrated sustainability approaches
CapMan grows by introducing new private asset strategies and integrated sustainability approaches €1.7bn €2.7bn €5.0bn €10bn AUM 2007 2016 2022 2027 Nest Capital Growth Infra Special Situations Property Income CWSIP Nordic Real Open-ended: Hotels Estate Residential: BVK 2012 2015 2018 2021 2023 Firs
Slide 10: Strategic focus areas and objectives
Strategic focus areas and objectives Competitive advantage Growth drivers Objectives 1. Deliver top investment returns through active 4. value creation Scale up existing strategies 6. and products Drive shareholder value 2. Integrate ESG as a core through theme in all business a combination of growt
Slide 11: Successful investments and exits despite continued slow transaction market
Successful investments and exits despite continued slow transaction market Investments Exits Special Situations I Nordic Infrastructure II (01/23) (03/23) Buyout X Growth I (03/23) (05/23) Growth II Nordic Infrastructure II (05/23) (05/23 & 09/23) Company 1 Company 2 Nest Capital III Nest Capital 20
Slide 12: CapMan's progress towards sustainability targets
CapMan's progress towards sustainability targets 36% 33% Emission reduction targets set and share of women, Management Group share of women on BoD validated by SBTi (36% in 2021) (33% in 2021) +17% 40% Aligned Code of Conduct with Scope 1-2 GHG emissions increased share of women, all employees inter
Slide 13: Progress towards sustainability targets in our portfolio
Progress towards sustainability targets in our portfolio Private Equity & 11% 19% 76/100 13% 34% Infra of portfolio companies share of women in average employee share of women on share of companies have set SBTs (target management, average engagement survey portfolio company that have linked 54.5% b
Slide 14: We seek to double assets under management
We seek to double assets under management €bn €10bn 10 AUM development in 2023 9 • Gross €196m, (+4%), net -€26m, (0%) NEW PRODUCTS 8 • Investor demand for CapMan’s products has remained good, but the (incl. M&A) overall fundraising environment is challenging 7 • AUM increased with new capital raise
Slide 15: Active ownership and diversified strategies provide a foundation for value creation and AUM growth
CapMan’s active ownership and diversified strategies provide a solid foundation for strong value creation and AUM growth Several investment opportunities currently open and upcoming Solid foundation to capture market 6/23 9/23 12/23 3/24 opportunity: NPI (€106m NAV, open-ended) Hotels II (€402m NAV,
Slide 16: Contents
Contents CapMan at a glance Strategy implementation Recent performance 1 6
Slide 17: Private assets continue to perform well in a slower market
Private assets continue to perform well in a slower market • The market environment has remained uncertain Pension insurance company returns per due to increases in inflation, interest rates and % asset class (p.a.) geopolitical uncertainty 25 20 19,0 17,6 15,2 • Higher return requirements and decre
Slide 18: EBIT less carry and fair value changes at record levels
EBIT less carry and fair value changes at record levels €M Turnover €M EBIT excl. FV changes 80 000 25 000 70 000 20 000 Carry 60 000 Carry 50 000 15 000 Fee income 40 000 +14% CAGR 10 000 30 000 20 000 EBIT 5 000 (excl. carry and FV changes) 10 000 +29% CAGR 0 0 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q2 Q4 Q2 Q4 Q2
Slide 19: 1–6 2023 EBIT breakdown
1–6 2023 EBIT breakdown: Strong fee profit offset by negative fair value changes €M 2.8 3.0 -3.7 2.8 -2.7 7.4 5.3 4.7 4.7 Management Service profit Inv.business EBIT excl. FV EBIT excl. FV Investment EBIT fee profit costs, other & Carry fair value and carry eliminations (fee profit) change 1-6/22 6.
Slide 20: Own funds continued strong performance, negative fair value driven by external venture capital
Own funds continued strong performance, negative fair value driven mainly by external venture capital funds €m Fair value development 1–6 2023 5 +3.7 4 3 PE 2 1 Value-add & Infra hotel real estate 0 -1 -2 Income real estate -3 -6,4 -2.7 -4 Own funds External funds & other Total 2 0
Slide 21: Solid balance sheet with good liquidity
Solid balance sheet with good liquidity Equity* Equity ratio* €116m 46% Cash & bank Undrawn credit limit €43m €20m STRONG LIQUIDITY FINANCIAL STABILITY for investments and to to provide security in support growth of fee business all market situations * Equity takes dividend and equity repayment into
Slide 22: Diversified investment allocation to private markets
Diversified investment allocation to private markets Fair value of investments and cash Undrawn €m 250 commitments (30 June 2023) Total €209m 200 Cash Intl. fund of funds 10% 150 Ext. VC funds 22% Total Infra 8% €82m 100 FV €167m 26% Real Estate 26% 50 14% 8% Private Equity 34% 46% 0 2020 2021 2022
Slide 23: CapMan's long-term financial objectives
CapMan’s long-term financial objectives Growth of the Return on equity Equity ratio Dividend distribution Management Company objective and Services business* The company’s objective >15% >20% >50% is to pay an annually increasing dividend to Average annual its shareholders. growth objective Distribu
Slide 24: HELSINKI STOCKHOLM COPENHAGEN
HELSINKI STOCKHOLM COPENHAGEN OSLO LONDON LUXEMBOURG