CapMan Oyj Class B · OMXHEX:CAPMAN
CapMan Oyj Class B — Shareholder Meeting (March 2018)
32 slides from CapMan Oyj Class B's shareholder meeting presentation, Mar 14, 2018
Slide 1: Year of renewal – CEO review
Year of renewal CEO review Joakim Frimodig
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 statements. Forward-looking statements are based on the Company's current CapMan Plc (hereinafter the "Company") or a representative of the Company as expectations, es
Slide 3: Year of renewal 2017
Year of renewal 2017 Renewed Board of Clarified vision and new New ways of working and Directors and Management strategy company culture Group ”New direction” ”New attitude” ”New doers” Modern and growth-oriented 3 CapMan Plc Annual General Meeting 2018 14 March 2018
Slide 4: Our goal is to grow CapMan a leading Nordic private asset manager
“Our goal is to grow CapMan a leading Nordic private asset manager with active approach to value-creation in its target companies and with increasingly flexible and diverse investment products and services to an expanding investor base.” 4
Slide 5: Agenda
Agenda • Strategic direction and highlights for 2017 • Business area review • Results for 2017 • Financial objectives and focus areas for 2018
Slide 6: Year 2017 highlights
Year 2017 highlights EPS ROE 644 +37 % TSR Dividend milj. € 13.1 14.5% 49% 11.0 cents cents Earnings per share Return on equity Total shareholder Dividend proposal comparable, diluted comparable return for 2017 2 650 14 12 new MEUR exits new investment investments areas Infra and Growth Equity New c
Slide 7: Comparable EPS and dividend
Comparable EPS and dividend 14 13,1 12 11,2 11,0* 10 9,0 8 7,0 6,6 6,0 6 4,0 4 2,4 2 0,3 0,0 0 -2 -1,2 2012 2013 2014 2015 2016 2017 Comparable EPS, cents Dividend/share, cents * Board of Directors’ proposal to the AGM 7 CapMan Plc Annual General Meeting 2018 14 March 2018
Slide 8: CapMan among best-performing companies on Helsinki stock exchange
CapMan is among the best-performing companies on the Helsinki stock exchange measured by total return 100 = 2.1.2017 160 +49% TSR in 150 2017 140 130 120 110 100 90 OMX Helsinki total return CapMan share total return 2.1.2017–9.3.2018 8 CapMan Plc Annual General Meeting 2018 14 March 2018
Slide 9: Broad shareholder base and improved liquidity
Broad shareholder base and improved liquidity Shareholder Shares and Share of shares and votes, # votes (%) 1 Ilmarinen Mutual Pension Insurance Company 10 898 500 7.48 • Over 16,000 2 Mandatum Life Insurance Company Limited 10 737 228 7.37 shareholders 3 OY Inventiainvest AB 7 024 794 4.82 4 Laakko
Slide 10: Clear strategic direction
Clear strategic direction OWN BALANCE SHEET INTERNATIONAL NORDIC INVESTORS LOCAL INVESTORS: Sources of capital e.g. Growth Equity, NPI INVESTORS: “Broader access” e.g. NRE II, BVK OPEN-ENDED FUNDS: CLOSED FUNDS MANDATES, CLUBS, SERVICES Products OTHERS: “More flexibility” e.g. NPI e.g. Infra, BVK In
Slide 11: Renewed Management Group executing the strategy
Renewed Management Group executing the strategy Joakim Frimodig Niko Haavisto Pia Kåll, CEO CFO Managing Partner, Buyout Mika Matikainen Juha Mikkola Mari Simula Managing Partner, Real Estate Managing Partner, Growth Equity Director, Fund Investor Relations 11 CapMan Plc Annual General Meeting 2018
Slide 12: Agenda
Agenda • Strategic direction and highlights for 2017 • Business area review • Results for 2017 • Financial objectives and focus areas for 2018
Slide 13: CapMan has a broad societal footprint
CapMan has a broad societal footprint 46 30,000 € 2.7 bn portfolio companies staff net sales 65 580 686,300 m² real estate investments tenants lettable space 13
Slide 14: CapMan today
CapMan today = New 2017 14 CapMan Plc Annual General Meeting 2018 AUM EUR >2,8 bn 14 March 2018 Investment capital MEUR >200
Slide 15: Active year for CapMan Real Estate
Active year for CapMan Real Estate Several exits and investments from Successful fundraising and value-creation the Real Estate team, e.g.: Exit: shopping centre Entresse, Espoo Exit: Amagerbrogade, Copenhagen 425 CapMan Nordic Real Estate II fund MEUR 500 Increase of BVK mandate CMNRE II investment
Slide 16: CapMan Buyout in renewal
CapMan Buyout in renewal Successful investment activity Renewed Nordic team Exit: Oral Hammaslääkärit Buyout X fund 2 Operates in Finland and in Sweden Good returns in three years Persons in the team Investment: KotiSun Group 12 Renewal and succession Buyout X fund Strong growth prospects and intern
Slide 17: CapMan Growth Equity – success stories in 2017
CapMan Growth Equity – success stories in 2017 Rapidly developing target companies, e.g. Successful investment activity and fundraising Coronaria one of the leading providers Investment activity launched in Norvestia specialized in health and home 2011 For CapMan since the acquisition of Norvestia c
Slide 18: CapMan Infra – new investment area with great potential
CapMan Infra – new investment area with great potential CapMan Infra in brief Investment activity started promisingly 11 Activity started in April 2017 months Ville Poukka Harri Halonen >100 Mandate-based investment commitments from investors Partner (Helsinki) Director (Stockholm) MEUR Several proj
Slide 19: CapMan Russia and Credit
CapMan Russia and Credit Russia – good portfolio development Credit – successful investment activity in a challenging macro environment 2 New investments in 2017 2016 Establishment of the newest fund Portfolio companies managed by a 100 14 team of 9 persons The newest fund from which investments MEU
Slide 20: Service business is growing and has a positive effect on profitability
Service business is growing and has a positive effect on CapMan’s profitability 149 The contract volumes in 2017 CapMan’s share of Scala MEUR Increase of 24 % 60% Scala Fund Advisory was incorporated as CapMan’s subsidiary in December 2017 Mandates, total +31% More contracts compared to previous yea
Slide 21: Agenda
Agenda • Strategic direction and highlights for 2017 • Business area review • Results for 2017 • Financial objectives and focus areas for 2018
Slide 22: Development of turnover and operating profit
Development of turnover and operating profit MEUR MEUR Comparable turnover Comparable operating profit 50 30 38,3 25 23,9 40 Management 35,0 company and services 31,8 20 business: 29,8 29,0 30 4.1 MEUR 14,5 15 20 10,1 Investment 10 business: 19.9 5,2 MEUR 10 5 3,3 0 0 2013 2014 2015 2016 2017 2013 2
Slide 23: Key figures – Balance sheet
Key figures – Balance sheet Investments and commitments Net gearing and Equity ratio MEUR made from own balance sheet % 200 80 180 70 160 60 140 120 50 100 40 80 30 60 20 40 20 10 0 0 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Sijoitukset Investments käypään arvoon at fair value Jäljellä Rema
Slide 24: CapMan's investments and loans
CapMan’s investments and loans Investments, 31.12.2017 Loans, 31.12.2017 23,3 8,5 58,3 Investments in private markets 48% of total 10,0 76,8 30,0 28,8 Target allocation 80% Fund investments Growth investments Bank loan Multi-issuer bond Bond II Joint ventures Market investments Cash & bank 24 CapMan
Slide 25: Agenda
Agenda • Strategic direction and highlights for 2017 • Business area review • Results for 2017 • Financial objectives and focus areas for 2018
Slide 26: Financial objectives
Financial objectives Growth of the Return on equity Net gearing Dividend distribution Management objective from EPS Company and Services business >10% >20% ≤40% ≥75% Average annual growth In addition to successful Average ratio of interest Dividend per share has grown objective investment, profitabl
Slide 27: Private equity is a growth industry
Private equity is a growth industry Private equity assets under management have demonstrated significant growth $ bn Post financial crisis growth 3000 9 % p.a. 2500 2000 1500 1000 500 0 2000 2002 2004 2006 2008 2010 2012 2014 2016 Sitoumukset Dry powder ($bn) Sijoitusten Unrealized realisoimattomat
Slide 28: Growth strategy progressing
Growth strategy progressing Target 2018 >10% annual Additional investments: growth • Infra fund planning 2017 • Buyout fund planning Significant investments in to growth: • Strong growth of Service business • New products and services • CMNRE II fund established 9/2017 • BVK mandate increase 10/2017
Slide 29: We build a foundation for improved profitability
We build a foundation for improved profitability Return on Equity, comparable % ROE target achieved by: Target 16 • Profitability based on strengthened fee income >20% 14,5 • Strong returns from Investment business Return on 14 • Realisation of significant carried interest Equity income in the near
Slide 30: CapMan's balance sheet is actively managed and profitable
CapMan’s balance sheet is actively managed and profitable Balance sheet allocation Adjusted result on own investments MEUR 25 31.12.2017 Private equity 48 % 20 15 10 5 Target: Private equity 0 80 % -5 2013 2014 2015 2016 2017 30 CapMan Plc Annual General Meeting 2018 14 March 2018
Slide 31: Objective steadily increasing dividend
Objective steadily increasing dividend 14 Foundation for increasing dividends: 12 • Strong growth 11,0* • Improving profitability 10 • Significant liquid assets 9,0 8 7,0 6,0 6 4,0 4 2 0 -2 2012 2013 2014 2015 2016 2017 Comparable EPS, cents Dividend/share, cents * Board of Directors’ proposal to th
Slide 32: Outlook estimate for 2018
Outlook estimate for 2018 The growth objective for Management Company and Services business is more than 10 per cent p.a. on average. The objective for return on equity is more than 20 per cent p.a. on average. The objective for net gearing, that is ratio of net interest-bearing debt to equity, is a