Slide 1: eQ Plc – result 2018
eQ Plc – result 2018 - result presentation 7 February 2019
Slide 2: 2018 highlights
2018 highlights Asset Management Real estate: – Real estate funds’ net subscriptions 367 million euros in total – Funds’ equity at the end of 2018 total of 1 365 million euros and invested capital 1 837 million euros Private Equity: – eQ PE X North –fund 175 million euros – eQ PE SF II –fund 135
Slide 3: eQ Group – Key figures
eQ Group – Key figures EUR million 1-12/2018 1-12/2017 Change% Net revenue 45.4 40.7 12% Operating profit 22.4 20.1 12% Profit for the period 17.8 15.9 12% Earnings per share (EUR) 0.47 0.43 10% Cost income -ratio, % 50.5 50.5 0% Liquid assets 25.7 24.7 4% Investments in private equity funds 16.9 18
Slide 4: eQ Group – Rolling 12 months
eQ Group – Rolling 12 months Net revenue development, rolling 12 months (€’m) Operating profit development, rolling 12 months (€’m) 50,0 28,0 45.4 44.5 22.4 45,0 22.4 42.3 20.9 40.7 40.9 23,0 20.3 40,0 20.1 36.0 35.8 35.0 35.4 35.4 33.4 33.9 16.8 17.0 35,0 16.2 16.4 18,0 15.7 14.8 15.0 29.8 30.5 30,
Slide 5: eQ Group – Balance sheet
eQ Group – Balance sheet ASSETS LIABILITIES AND EQUITY (EUR million) 12/2018 12/2017 (EUR million) 12/2018 12/2017 Liquid assets 0.0 0.0 Other liabilities 4.1 3.9 Claims on credit institutions 15.8 14.6 Accruals and deferred income 11.1 9.1 Income tax liabilities 0.7 0.8 Financial assets Deferred ta
Slide 6: Asset Management
Asset Management
Slide 7: Asset Management – Income statement
Asset Management – Income statement EUR million 1-12/2018 1-12/2017 Change % NET REVENUE 36.7 33.9 8% Personnel expenses -13.8 -12.6 10% Other administrative expenses -1.7 -1.7 -1% Depreciation -0.2 -0.2 -30% Other operating expenses -1.5 -1.3 12% OPERATING PROFIT 19.5 18.0 8% Cost-income ratio, % 4
Slide 8: Asset Management – Fee income and Aum
Asset Management – Fee income and Aum EUR million 1-12/2018 1-12/2017 Change % Management fees – Traditional AM 8.6 8.9 -3% Management fees – Real-estate and PE 25.5 18.4 39% Other fees 0.3 0.6 -45% Performance based fees 2.7 6.4 -58% TOTAL 37.1 34.3 8% Assets under management 12/2018 Fee income 1-1
Slide 9: Asset Management – Rolling 12 months
Asset Management – Rolling 12 months Net revenue development, rolling 12 months (€’m)) Operating profit development, rolling 12 months (€’m) 37.3 36.7 35.4 34.4 33.9 20.0 19.5 30.5 18.8 29.6 18.3 18.0 27.5 25.6 15.7 24.2 14.9 22.5 22.7 21.7 13.4 20.8 19.7 20.2 12.0 17.6 11.1 16.7 15.5 9.6 9.9 10.0 1
Slide 10: Asset Management – Mutual funds
Asset Management – Mutual funds Gross returns 31 December 2018 12 months 3 years p.a. Morning- Fund Return* Comparison Diff. Return* Comparison Diff. star Fixed income funds eQ Money Market -0,16 % 0,01 % eQ Euro Floating Rate -2,31 % -0,33 % -1,98 % 0,50 % -0,29 % 0,79 % no rating eQ Government Bon
Slide 11: Asset Management – eQ Real Estate funds
Asset Management – eQ Real Estate funds eQ Care eQ Finnish Real Estate Invests in modern care properties Invests in commercial real estate Well-diversified portfolio Currently 41 properties in the investment portfolio – 190 properties – Focus on mainly office and retail properties – Investme
Slide 12: Asset Management – Private Equity
Asset Management – Private Equity Private Equity - Fund of funds Founded Fund Size Stage Investors 2019 eQ PE XI US $113m 1st close 33 FoF 2018 eQ PE SF II €135m Investing 23 €1.4 Bn 2018 eQ PE X North €175m Investing 85 2017 eQ PE SF €124m Fully invested 10 2017 eQ PE IX US $105m Fully invested 52
Slide 13: SFR research – most used institutional asset managers
SFR research – most used institutional asset managers 70% 66% 63% 60% 59% 55% 53% 50% 47% 43% 40% 39% 31% 31% 30% 22% 23% 20% 10% 2018 2017 2012 0% 1 eQ 3 4 5 6 7 8 9 10 13
Slide 14: Corporate Finance
Corporate Finance
Slide 15: Corporate Finance
Corporate Finance Advium Corporate Finance Leading Finnish Corporate Finance advisor Completed some 180 transactions for a value of about 14 billion euro 14 professionals with experience from Corporate Finance, Private Equity and Real Estate transactions Mergers & acquisitions Real estate tran
Slide 16: Corporate Finance – Latest transactions
Corporate Finance – Latest transactions M&A Transactions and Equity capital markets Real estate transactions 16
Slide 17: Corporate Finance – Key figures
Corporate Finance – Key figures Net revenue development, rolling 12 months (€’m) Operating profit development, rolling 12 months (€’m) 9.7 5.0 9.1 9.1 4.6 4.5 7.9 7,1 3.7 6.8 6.9 7.0 3.4 6.3 6.2 3.2 3.3 3,2 5.9 2.9 5.2 2.7 2.6 4.8 4.5 4.5 4.2 4.4 4.6 3.8 2.0 1.8 3.0 1.5 1.4 1.6 1.7 1.4 1.4 2.1 0.9 0
Slide 18: Investments
Investments
Slide 19: Investments – Key figures
Investments – Key figures EUR million 1-12/2018 1-12/2017 Returned capital (excl. profit) 4.0 3.3 Distribution of profits 1.9 1.7 Capital calls -2.0 -3.2 Net cash flow 3.9 1.9 Market value 16.9 18.8 Investment commitments 7.8 8.9 Profit and loss Distribution of profits 1.9 1.7 Value changes recogniz
Slide 20: eQ's share, outlook and summary
eQ’s share, outlook and summary
Slide 21: Share price development
0,00 1,00 2,00 3,00 4,00 5,00 6,00 7,00 8,00 9,00 10,00 01.01.2013 01.03.2013 01.05.2013 01.07.2013 01.09.2013 01.11.2013 01.01.2014 01.03.2014 01.05.2014 01.07.2014 01.09.2014 01.11.2014 01.01.2015 01.03.2015 01.05.2015 01.07.2015 01.09.2015 Share price development 01.11.2015 eQ Oyj 01.01.2016 01
Slide 22: Shareholders 31 December 2018
Shareholders 31 December 2018 Shareholder Shares % of shares The number of shareholders 1 Fennogens Investments S.A. 7 943 137 21.07 6 000 2 Chilla Capital S.A. 5 945 275 15.77 3 Anchor Oy Ab 5 803 677 15.39 5 000 4 Teamet Oy 4 100 000 10.87 5 Oy Cevante Ab 1 419 063 3.76 4 000 6 Fazer Jan Peter 1 2
Slide 23: Outlook
Outlook We expect that the net revenue and operating profit of the Asset Management segment will grow in 2019. We further estimate that the management fees of real estate and private equity asset management will grow on the previous year. The amount of performance fees is also estimated to grow. We
Slide 24: Summary and next financial reporting
Summary and next financial reporting EUR million 1-12/2018 1-12/2017 Change% Net revenue 45.4 40.7 12% Operating profit 22.4 20.1 12% Profit for the period 17.8 15.9 12% Earnings per share (EUR) 0.47 0.43 10% Cost income -ratio, % 50.5 50.5 0% Liquid assets 25.7 24.7 4% Investments in private equity