Capman Oyj Class B · OMXHEX:CAPMAN
Capman Oyj Class B — FY2006 Earnings Presentation
32 slides from Capman Oyj Class B's earnings presentation, Feb 2, 2007
Slide 1: CapMan Plc Group's result for 2006
CapMan Plc Group’s result for 2006 Press and analyst conference 2 February 2007 Heikki Westerlund 02 February 2007 1
Slide 2: 2006 Highlights
2006 Highlights • Year of growth in terms of all key figures – Growth in capital under management 17%, target 15% on average – Growth in turnover 32% – Growth in profit before taxes 84% – ROE 23.4 %, target over 25% – Equity ratio 71 %, target over 50% – Dividend pay out ration 80%, target over 50%
Slide 3: CapMan – the Nordic private equity house
CapMan – the Nordic private equity house • Full Nordic presence and market coverage – established in 1989 – offices in Helsinki, Stockholm, Copenhagen and Oslo – listed on Helsinki Stock Exchange since 2001 • Unique listed asset manager – manages specialised third party private equity, venture capit
Slide 4: 2006 another record year for European buyouts
2006 another record year for European buyouts Aggregate buyout deal value up by 43% Aggregate deal volume up by 17% with amounting to €168 billion 707 buyouts completed €bn # 180 800 160 700 CAGR 24% CAGR 15% 140 600 120 500 100 400 80 168 707 300 605 60 117 504 200 409 40 81 355 58 63 20 100 0 0 20
Slide 5: Mega deals behind record high activity figures
Mega deals behind record high activity figures In 2006 largest buyouts accounted for 50% Record high number of large buyouts with of the aggregate value – mid category 23 transactions in 2006 – volume of mid relatively stable with average annual category deals quite stable since 2004 aggregate deal
Slide 6: Assets under management increased by €374 million
Assets under management increased by €374 million Capital under mgmt, M€ Domestic partnership Nordic presence and funds MBO LISTING 3 000 2 800 Real Estate funds 2 600 Life Science funds 2 400 Technology funds 2 200 2 000 Mezzanine funds 1 800 Buyout funds 1 600 1 400 1 200 1 000 800 600 400 200 0 9
Slide 7: Components of income and operating costs December 2006
Components of income and operating costs 30 December 2006, M€ Total effect of own investments €4.4 million 45.0 3.5 0.7 0.8 0.9 Operating costs 26.6 40.0 9.4 Turnover €38.0 million 35.0 30.0 2.0 24.9 25.0 20.0 0.4 1.3 Pre-tax profit in €17.3 million 15.0 10.0 5.0 Operating profit €15.6 million 0.0 M
Slide 8: Main reasons for the change in profit before taxes
Main reasons for the change in profit before taxes Profit before taxes 25.0 1.9 0.6 20.0 0.4 0.4 2.8 1.0 17.3 1.1 -0.4 15.0 4.6 -4.7 9.4 10.0 5.0 0.0 2005 2006 Increase in management fees Increase in other income Increase in income from real estate consulting Increase in operating costs Increase in
Slide 9: Turnover and operating profit in 2006, M€
Turnover and operating profit in 2006, M€ Turnover, change* +32% Operating profit, change* +86% 16,0 15,6 40,0 38,0 35,0 14,0 12,0 29,0 28,7 12,0 30,0 25,0 10,0 21,8 8,4 20,0 18,4 8,0 7,4 7,6 7,3 15,9 15,0 6,0 5,2 10,0 8,9 4,0 5,5 5,0 2,0 1,5 0,0 0,0 1-3 1-6 1-9 1-12 1-3 1-6 1-9 1-12 2005 2006 2005
Slide 10: Profit before and after taxes in 2006, M€
Profit before and after taxes in 2006, M€ Profit before taxes, change* +84% Profit after taxes, change* +77% 20,0 14,0 17,3 12,4 18,0 12,0 16,0 10,0 9,5 14,0 12,6 12,0 8,0 7,0 10,0 9,4 7,8 7,9 7,8 6,0 5,7 5,9 5,9 8,0 6,0 5,1 4,0 3,7 4,0 1,6 2,0 1,2 2,0 0,0 0,0 1-3 1-6 1-9 1-12 1-3 1-6 1-9 1-12 2005
Slide 11: Management fees in 2006, M€
Management fees in 2006, M€ 30 • Change +23% 24,9 • Increased due to management fees 25 received from CapMan Buyout VIII and CapMan Real Estate I funds 20,3 20 18,7 established in 2005 and CapMan Life Science IV established in 2006. 14,9 • The sum of management fees received 15 from older funds fell
Slide 12: Carried interest in 2006, M€
Carried interest in 2006, M€ 10,0 9,4 • Change +42% 9,0 • Carried interest accrued as follows: 8,0 7,5 – Tiimari exit / €3.4 million – PPTH-Norden exit / €2.2 million 7,0 6,6 – CTC Media exit / €1.7 million* 6,0 5,7 5,7 – Puulämpö Yhtiöt exit / €0.9 million 5,0 – The repayment of Finlayson & Co's me
Slide 13: Funds generating carried interest at 31 Dec 2006
Funds generating carried interest at 31 Dec 2006 Cumulative portfolio at cost: €19.4 million Cumulative portfolio at fair value: €22.2 million Buyouts Technology investments FV II FV III + III G Fenno Fund Fenno/ Skandia I Fenno/ Skandia II FM II B CapMan Real Estate I tranferred into carry on 31 Ja
Slide 14: Analysing carried interest potential: FV IV and FV V funds
Analysing carried interest potential: FV IV and FV V funds 31 December 2006 FINNVENTURE IV FINNVENTURE V Fund size: €59.5 million Fund size: €169.9 million Paid-in capital: €59.5 million Paid-in capital: €159.8 million Portfolio at cost: €14.3 million Portfolio at cost: €65.4 million Portfolio at fa
Slide 15: Portfolio of CapMan Equity VII
Portfolio of CapMan Equity VII 31 December 2006 CAPMAN EQUITY VII A B C Sweden Fund size: 156.7 56.5 23.1 67.0 Portfolio at cost: 88.5 37.0 9.1 37.8 Portfolio at fair value: 141.1 65.1 9.9 60.4 Cash flow to investors: 17.4 3.5 4.6 7.5 CapMan’s commitment: Investment focus buyout/tech: 65% / 35% 100%
Slide 16: 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€ 90 80 50,5 The remaining commitments mainly target: 70
Slide 17: The impact of own fund investments, M€
The impact of own fund investments, M€ 5,0 • Change +110% 4,4 • The impact on the Company´s result totalled €4.4 million 4,0 – Realised returns €0.9 million (€0.5 3,4 million) 3,0 – Gains in the fair value of 2,4 investments €3,5 million (€1,6 2,2 2,1 million) 2,0 • Fair value gains were related in
Slide 18: Turnover and result development
Turnover and result development • Capital under management €2,549.6 million (€2,176.1 million in 2005) • Turnover €38.0 million (€28.7 million) • Management fees €24.9 million (€20.3 million) • Carried interest income €9.4 million (€6.6 million) • Income from real estate consulting €2.0 million (€0.
Slide 19: Income Statement
Income Statement € million 2002 2003 2004 2005 2006 FAS FAS IFRS IFRS IFRS Turnover 20.0 18.7 28.1 28.7 38.0 Management fees 15.9 17.8 17.8 20.3 24.9 Carried interest 3.0 0.2 9.1 6.6 9.4 Income of investments in funds - - 0.2 0.5 0.9 Income from real estate consulting 0.9 2.0 Other income - - - 0.4
Slide 20: Key figures
Key figures € million 2002 2003 2004 2005 2006 FAS FAS IFRS IFRS IFRS Earnings per share, € 0.05 0.02 0.06 0.09 0.15 Diluted, € 0.04 0.02 0.06 0.09 0.15 Shareholders’ equity / share, € 0.71 0.61 0.59 0.64 0.74 Dividend / share, €* 0.10 0.05 0.06 0.07 0.12 Dividend / result, %* 222.5 327.0 94.4 78.0
Slide 21: Fundraising
Fundraising • Final closing of CapMan Buyout VIII at €440 million • CapMan RE II reached investment capacity of approx. EUR 550 million at second closing in February 2007, fundraising continues – 25% equity and 75% senior loan • Fundraising for CapMan Life Science IV continues • Fundraising for CapM
Slide 22: New investments in 2006
New investments in 2006 MQ Sweden AB, Buyout, Sweden Erottajankatu 15-17 Tamro MedLab Oy + SelefaTrade AB + Förbandsmaterial AB Buyout, Finland+Sweden Maintpartner Oy Malmin Nova Buyout, Finland shopping center 42Networks AB, Technology, Sweden Spintop Netsolution AB, Tikkurilantie 136 Technology, S
Slide 23: Exits in 2006
Exits in 2006 PPTH-Norden, Modultek Oy, Buyout, FINLAND Technology, FINLAND Puulämpö Yhtiöt Oy, Quartal Oy, Buyout, FINLAND Technology, FINLAND Mehiläinen Oyj, AtBusiness Communications Oy, Buyout, FINLAND Technology, FINLAND Kultajousi Oy, Buyout, FINLAND Sentera Plc, Technology, FINLAND (partial)
Slide 24: Future outlook
Future outlook • The profit before taxes for 2007 will improve from 2006. This estimate is based on the closing of the sale of CapMan Real Estate I fund’s portfolio and on the funds’ announced partial exit from Moventas Oy at the end of January. These transactions have, taking the minority interest
Slide 25: IR contacts
IR contacts Heikki Westerlund, CEO, Senior Partner tel. +358 9 6155 8304 heikki.westerlund@capman.com Jerome Bouix, Partner, Fundraising, IR & 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, Co
Slide 26: Extra slides
Extra slides 02 February 2007 26
Slide 27: Share price development (12 months rolling)
Share price development (12 months rolling) € 3,2 20 3,0 15 2,8 10 2,6 5 2,4 2,2 0 2,0 -5 1,8 -10 1,6 -15 1,4 1,2 -20 1,0 -25 31.01.06 31.03.06 31.05.06 31.07.06 30.09.06 30.11.06 31.01.07 01.02.06 01.04.06 01.06.06 01.08.06 01.10.06 01.12.06 01.02.07 CapMan B CapMan 2000AB stock options Relative Ca
Slide 28: Distribution of ownership at 31 December 2006
Distribution of ownership at 31 December 2006 7% 4% 27 % 16 % 42 % 42 % 31 % 31 % Management and employees Corporations Nominee register and foreign shareholders Nominee registed and foreign shareholders Other owners Households Financial and insurance corporations Non-profit and public sector instit
Slide 29: CapMan Plc's largest shareholders
CapMan Plc’s 12 largest shareholders 31 December 2006 Shares % Votes % Aristo Invest Oy* + Ari Tolppanen** 13.2 % 21.5 % Geldegal Oy* + Olli Liitola** 6.9 % 11.4 % Winsome Oy* + Tuomo Raasio** 6.9 % 11.4 % Vesasco Oy* 5.6 % 10.7 % Heiwes Oy* + Heikki Westerlund** 5.1 % 7.1 % Finnish State Pension Fu
Slide 30: Financial objectives
Financial objectives Growth - Average capital growth of funds under management at least 15% per annum Profitability - Return on equity over 25% - Equity fund performance above 15% net IRR to fund investors per annum Capital structure - Finance 50% of CapMan Plc’s future fund investments with debt fi
Slide 31: CapMan's vision
CapMan’s vision Our vision is to be the preferred Nordic private equity partner for investors globally and entrepreneurs locally. 02 February 2007 31
Slide 32: CapMan's values
CapMan’s values High Ethics We believe in integrity and transparency. We are a reliable – our heart partner and we respect our stakeholders. We want to be an example of high ethics. Dedication We are committed to reach our objectives. We are – our soul innovative and aim to be the trendsetter for th