Slide 1: eQ Plc – result 2020
eQ Plc – result 2020 result presentation 5 February 2021
Slide 2: 2020 highlights
2020 highlights Asset Management eQ is the leading Finnish institutional asset manager. According to the 2020 SFR research, 66% of the largest Finnish institutional investors used eQ’s services and eQ has been ranked as No.1 in overall quality by the institutional investors for the second time in
Slide 3: eQ Group – Key figures
eQ Group – Key figures EUR million 1-12/2020 1-12/2019 Change% Net revenue 56.7 50.6 12% Operating profit 30.8 26.3 17% Profit for the period 24.6 21.0 17% Earnings per share (EUR) 0.64 0.55 16% Cost income -ratio, % 45.6 48.1 -5% Liquid assets 36.3 32.3 12% Investments in PE and real estate funds 1
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) 68,0 37,0 30,8 56,7 32,0 27.0 27,6 58,0 27,0 52,2 25.3 51,6 50.651.1 23.9 26,3 47.8 49.7 27,0 23.3 47.3 22.4 48,0 45.4 22.4 44.5 20.9 42.3 20.3 40.7 40.9 20.1 22,0 36.0
Slide 5: eQ Group – Balance sheet
eQ Group – Balance sheet ASSETS LIABILITIES AND EQUITY (EUR million) 12/2020 12/2019 (EUR million) 12/2020 12/2019 Liquid assets 0.1 0.1 Other liabilities 5.2 4.8 Claims on credit institutions 21.4 22.3 Accruals and deferred income 15.0 12.1 Lease liabilities 2.0 2.6 Financial assets Financial secur
Slide 6: Asset Management
Asset Management
Slide 7: SFR-research 2020
SFR-research 2020 Most used institutional asset managers Quality review (1-5) 0% 20% 40% 60% 80% 3,00 3,20 3,40 3,60 3,80 4,00 eQ 66% eQ 3,90 2 66% 3 61% 4 50% 2 3,86 5 46% 6 44% 3 3,86 7 36% 8 31% 4 3,81 9 27% 10 21% 5 3,75 11 17% 12 14% 13 13% 6 3,68 14 11% 15 11% 7 3,54 16 11% 17 9% 8 3,50 18 8%
Slide 8: Asset Management – Income statement
Asset Management – Income statement EUR million 1-12/2020 1-12/2019 Change % NET REVENUE 52.8 44.3 19% Personnel expenses -17.4 -15.6 12% Other administrative expenses -1.5 -1.7 -10% Depreciation -0.8 -0.7 18% Other operating expenses -1.0 -1.0 1% OPERATING PROFIT 32.1 25.4 26% Cost-income ratio, %
Slide 9: Asset Management – Fee income and Aum
Asset Management – Fee income and Aum EUR million 1-12/2020 1-12/2019 Change % Management fees – Traditional AM 8.1 8.0 1% Management fees – Real-estate and PE 38.1 32.1 19% Other fees 0.2 0.3 -15% Performance based fees 6.7 4.4 54% TOTAL 53.2 44.7 19% Assets under management 12/2020 Fee income 1-12
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) 32,1 52,8 28,0 47,1 27,0 46,1 26,5 45,3 44,3 25,4 41,6 40,0 23,3 38,4 21,8 37,3 35,4 36,7 20,5 33,9 34,4 20,0 18,8 19,5 30,5 18,0 18,3 29,6 27,5 15,7 25,6 14,9
Slide 11: Asset Management – Mutual funds
Asset Management – Mutual funds Gross returns 31.12.2020 3 months 12 months 3 years p.a. 5 years p.a. Morning- Morningstar – Fund Return* Comparison Diff. Return* Comparison Diff. Return* Comparison Diff. Return* Comparison Diff. star eQ is the Best Equity Fixed Income Funds Fund House 2020 eQ Euro
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: 9 years, vacancy 1% Avg. lease maturity: 6 years, vacancy 7% Invested capital: € 1 255m Invested capital: € 985m Equity (NAV):
Slide 13: Asset Management – Private Equity
Asset Management – Private Equity Private Equity - Fund of funds Founded Fund Size Stage Investors 2021 eQ PE XIII US $131m 1st close 41 2020 eQ PE SF III €170m Investing 49 2020 eQ PE XII North €205m Investing 84 2019 eQ PE XI US $217m Fully invested 90 2018 eQ PE SF II €135m Fully invested 23 Fund
Slide 14: Performance fees of eQ’s private equity funds
Performance fees of eQ’s private equity funds Fund Size of the Vintage Hurdle Perform- eQ’s share Estimate on reaching the hurdle rate fund year rate ance fee of perform- (cash flow) ance fee Estimated to be reached Will not be 2021- 2023- After reached 2022 2027 2017 Amanda III MEUR 110 2006 6.0% 1
Slide 15: Corporate Finance
Corporate Finance
Slide 16: Corporate Finance
Corporate Finance Advium Corporate Finance Leading Finnish Corporate Finance advisor Over 200 transactions with value of approx. EUR 20 billion 15 professionals with experience from Corporate Finance, Private Equity and Real Estate transactions Mergers & acquisitions Real estate transactions L
Slide 17: Corporate Finance – Latest transactions
Corporate Finance – Latest transactions M&A Transactions and Equity capital markets Real estate transactions 17
Slide 18: 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 3,6 7,0 6,8 6,9 3,4 6,3 6,2 3,2 3,3 3,2 3,2 5,9 2,9 5,2 5,4 5,3 5,3 2,7 2,6 4,8 4,8 4,5 4,5 4,6 4,2 4,4 4,1 2,0 3
Slide 19: Investments
Investments
Slide 20: Investments – Key figures
Investments – Key figures EUR million 1-12/2020 1-12/2019 Returned capital (excl. profit) 1.8 2.3 Distribution of profits 0.3 1.8 Capital calls -1.6 -2.4 Net cash flow 0.6 1.7 Market value 15.7 16.2 Investment commitments 7.1 6.7 Profit and loss Distribution of profits 3.0 1.8 Value changes recogniz
Slide 21: eQ’s share, outlook and summary
eQ’s share, outlook and summary
Slide 22: Share price development and trading volume
Share price development and trading volume 20,00 140 000 18,00 16,00 120 000 14,00 100 000 12,00 80 000 10,00 8,00 60 000 6,00 40 000 4,00 20 000 2,00 0,00 0 eQ Oyj OMXH The Market value of eQ Plc was 651.1 million euro on 31 Dec 2020 (476.9 M€ 31 Dec 2019). During the reporting period, 2 721 81
Slide 23: Shareholders 31 December 2020
Shareholders 31 December 2020 The number of shareholders Shares % of shares 1 Fennogens Investments S.A. 7 943 137 20,43 8 000 2 Anchor Oy Ab 6 058 963 15,59 3 Chilla Capital S.A. 6 045 275 15,55 7 000 4 Teamet Oy 4 100 000 10,55 6 000 5 Oy Cevante Ab 1 419 063 3,65 6 Fazer Jan Peter 1 298 306 3,34
Slide 24: Outlook
Outlook The year 2021 started off in a positive tone in the equity market. The eQ PE XIII US private equity fund raised a record amount of USD 131 million in its first closing in January. This only strengthens our view that the demand for alternative investment products continues to be strong. With
Slide 25: Summary and next financial reporting
Summary and next financial reporting EUR million 1-12/2020 1-12/2019 Change% Net revenue 56.7 50.6 12% Operating profit 30.8 26.3 17% Profit for the period 24.6 21.0 17% Earnings per share (EUR) 0.64 0.55 16% Cost income -ratio, % 45.6 48.1 -5% Liquid assets 36.3 32.3 12% Investments in PE and real