Slide 1: eQ Plc – result 2019
eQ Plc – result 2019 result presentation 6 February 2020
Slide 2: 2019 highlights
2019 highlights Asset Management eQ has further improved its position as leading Finnish institutional asset manager. According to the 2019 SFR research, 64% of the largest Finnish institutional investors used eQ’s services and eQ has been ranked as No.1 in overall quality by the institutional inv
Slide 3: eQ Group – Key figures
eQ Group – Key figures EUR million 1-12/2019 1-12/2018 Change% Net revenue 50.6 45.4 12% Operating profit 26.3 22.4 17% Profit for the period 21.0 17.8 18% Earnings per share (EUR) 0.55 0.47 17% Cost income -ratio, % 48.1 50.5 -5% Liquid assets 32.3 25.7 26% Investments in private equity funds 16.2
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) 33,0 50.6 49.7 50,0 47.3 47.8 26.3 45.4 28,0 25.3 44.5 23.9 42.3 23.3 40.7 40.9 22.4 22.4 40,0 20.9 36.0 23,0 20.1 20.3 35.435.8 35.0 35.4 33.433.9 16.817.0 16.216.4 29
Slide 5: eQ Group – Balance sheet
eQ Group – Balance sheet ASSETS LIABILITIES AND EQUITY (EUR million) 12/2019 12/2018 (EUR million) 12/2019 12/2018 Liquid assets 0.1 0.0 Other liabilities 4.8 4.1 Claims on credit institutions 22.3 15.8 Accruals and deferred income 12.1 11.1 Financial assets Lease liabilities 2.6 - Financial securit
Slide 6: Asset Management
Asset Management
Slide 7: SFR-research 2019
SFR-research 2019 Asset management quality review (1-5) Most used institutional asset managers 3,20 3,40 3,60 3,80 4,00 4,20 0% 20% 40% 60% 80% 1 67% eQ 3,97 eQ 64% 3 63% 2 3,79 4 51% 5 47% 3 3,76 6 44% 7 39% 8 34% 4 3,72 9 31% 10 24% 5 3,71 11 17% 12 16% 6 3,69 13 15% 14 13% 7 3,53 15 13% 16 11% 17
Slide 8: Asset Management – Income statement
Asset Management – Income statement EUR million 1-12/2019 1-12/2018 Change % NET REVENUE 44.3 36.7 21% Personnel expenses -15.6 -13.8 13% Other administrative expenses -1.7 -1.7 -5% Depreciation -0.7 -0.2 305% Other operating expenses -1.0 -1.5 -34% OPERATING PROFIT 25.4 19.5 30% Cost-income ratio,
Slide 9: Asset Management – Fee income and Aum
Asset Management – Fee income and Aum EUR million 1-12/2019 1-12/2018 Change % Management fees – Traditional AM 8.0 8.6 -7% Management fees – Real-estate and PE 32.1 25.5 26% Other fees 0.3 0.3 -12% Performance based fees 4.4 2.7 63% TOTAL 44.7 37.1 21% Assets under management 12/2019 Fee income 1-1
Slide 10: Asset Management – Rolling 12 months
Asset Management – Rolling 12 months Net revenue development, rolling 12 months (€’m)) Operating profit development, rolling 12 months (€’m) 44.3 25.4 41.7 40.1 38.6 23.3 37.336.7 21.8 35.4 34.4 20.5 33.9 20.0 19.5 18.3 18.8 30.5 18.0 29.6 27.5 25.6 15.7 14.9 24.2 22.7 13.4 21.722.5 20.8 12.0 19.720
Slide 11: Asset Management – Mutual funds
Asset Management – Mutual funds Gross returns 31. Dec 2019 12 months 3 years p.a. Morning- Morningstar – Fund Return* Comparison Diff. Return* Comparison Diff. star eQ is the Best Fund Fixed income funds eQ Money Market -0,12 % -0,10 % House eQ Euro Floating Rate 1,63 % -0,34 % 1,97 % 0,45 % -0,34 %
Slide 12: 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 Avg. lease maturity: 10 years Avg. lease maturity: 5 years Vacancy 1% Vacancy 5% Invested capital: € 1 237m Invested capital: € 1 087m Equity (
Slide 13: Asset Management – Private Equity
Asset Management – Private Equity Private Equity - Fund of funds Founded Fund Size Stage Investors 2020 eQ SF III €75m 1st close 18 2020 eQ PE XII North €126m 1st close 46 FoF 2019 eQ PE XI US $217m Investing 90 €1.6 Bn 2018 eQ PE SF II €135m Investing 23 2018 eQ PE X North €175m Fully invested 85 2
Slide 14: Corporate Finance
Corporate Finance
Slide 15: Corporate Finance
Corporate Finance Advium Corporate Finance Leading Finnish Corporate Finance advisor Completed some 200 transactions for a value exceeding 15 billion euro 15 professionals with experience from Corporate Finance, Private Equity and Real Estate transactions Mergers & acquisitions Real estate tra
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 7,7 7,7 7,1 7,1 3,7 3,6 6,8 6,9 7,0 3,4 3,6 6,3 6,2 3,2 3,3 3,2 3,2 5,9 2,9 5,2 5,4 2,7 2,6 4,5 4,5 4,2 4,4 4,6 4,8 3,8 2,0 1,9 1,8 1,7 3
Slide 18: Investments
Investments
Slide 19: Investments – Key figures
Investments – Key figures EUR million 1-12/2019 1-12/2018 Returned capital (excl. profit) 2.3 4.0 Distribution of profits 1.8 1.9 Capital calls -2.4 -2.0 Net cash flow 1.7 3.9 Market value 16.2 16.9 Investment commitments 6.7 7.8 Profit and loss Distribution of profits 1.8 1.9 Value changes recogniz
Slide 20: eQ’s share, outlook and summary
eQ’s share, outlook and summary
Slide 21: Share price development and market cap
0,00 2,00 4,00 6,00 8,00 10,00 14,00 16,00 12,00 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 01.11.2015 01.01.2016 01.03.2016 01.05.2016 01.07.2016 01.09.2016 01.11.2016 eQ Oyj 01.01.2017 01.03.2017 01.05.2017 OMXH 01.07.
Slide 22: Shareholders 31 December 2019
Shareholders 31 December 2019 Shareholder Shares % of shares The number of shareholders 7 000 1 Fennogens Investments S.A. 7 943 137 20.74 2 Chilla Capital S.A. 5 945 275 15.52 6 000 3 Anchor Oy Ab 5 803 677 15.15 4 Teamet Oy 4 100 000 10.70 5 Oy Cevante Ab 1 419 063 3.70 5 000 6 Fazer Jan Peter 1 2
Slide 23: Outlook
Outlook In December, net subscriptions for EUR 76 million were made in eQ’s real estate funds. In addition, the eQ PE XII North and eQ PE SF III private equity funds raised altogether EUR 201 million in the first closings of the funds in January 2020. This is the largest sum raised to private equity
Slide 24: Performance fees of eQ’s private equity funds
Performance fees of eQ’s private equity funds Size of the Vintage Hurdle Perfor- eQ’s share of Fund Estimate on reaching the hurdle rate (cash flow) fund year rate mance fee performance fee Estimated to be reached Will not be 2020-2021 2022-2026 After 2026 reached Amanda III MEUR 110 2006 6.0% 10.0%
Slide 25: Summary and next financial reporting
Summary and next financial reporting EUR million 1-12/2019 1-12/2018 Change% Net revenue 50.6 45.4 12% Operating profit 26.3 22.4 17% Profit for the period 21.0 17.8 18% Earnings per share (EUR) 0.55 0.47 17% Cost income -ratio, % 48.1 50.5 -5% Liquid assets 32.3 25.7 26% Investments in private equi