Slide 1: eQ Plc – result 2017
eQ Plc – result 2017 - result presentation 5 Feb 2018
Slide 2: 2017 Highlights
2017 Highlights Asset Management Real estate asset management: – Net subscriptions of the eQ Real Estate funds totalled EUR 269 million – eQ Real Estate funds’ equity at the end of the year totalled EUR 968 million – eQ Care fund 2017 return 10.1% and eQ Finnish Real Estate fund 10.7% Private Eq
Slide 3: eQ Group – Key figures
eQ Group – Key figures EUR million 1-12/2017 1-12/2016 Change% Net revenue 40.7 35.4 15% Operating profit 20.1 16.2 24% Profit for the period 15.9 12.8 24% Earnings per share (EUR) 0.43 0.35 22% Cost income -ratio, % 50.5 53.0 -5% Liquid assets 24.7 16.7 48% Investments in private equity funds 18.8
Slide 4: eQ Group – Rolling 12 months
eQ Group – Rolling 12 months Net revenue development, rolling 12 months (€’m) EBIT development, rolling 12 months (€’m) 45,0 23,0 20.1 40.7 40,0 36.0 16.4 16.8 17.0 35.8 35.0 35.4 35.4 15.7 16.2 33.4 33.9 18,0 35,0 14.8 15.0 30.5 13.2 29.8 12.9 30,0 28.3 11.7 26.5 10.6 24.4 13,0 25,0 9.0 18.8 20.1 1
Slide 5: eQ Group – balance sheet
eQ Group – balance sheet ASSETS LIABILITIES AND EQUITY (EUR million) 12/2017 12/2016 (EUR million) 12/2017 12/2016 Liquid assets 0,0 0,0 Other liabilities 3.9 3.4 Claims on credit institutions 14.6 6.6 Accruals and deferred income 9.1 7.6 Income tax liabilities 0.8 0.3 Available-for-sale financial a
Slide 6: Asset Management
Asset Management
Slide 7: Asset Management – Income statement
Asset Management – Income statement EUR million 1-12/2017 1-12/2016 Change % NET REVENUE 33.9 25.6 32% Personnel expenses -12.6 -10.1 23% Other administrative expenses -1.7 -1.5 15% Depreciation -0.2 -0.6 -60% Other operating expenses -1.3 -1.3 3% OPERATING PROFIT 18.0 12.0 50% Cost-income ratio, %
Slide 8: Asset Management – Fee income
Asset Management – Fee income EUR million 1-12/2017 1-12/2016 Change % Management fees – Traditional AM 8.9 7.7 15% Management fees – Real-estate and PE 18.4 13.8 33% Other fees 0.6 0.3 71% Performance based fees 6.4 3.9 64% TOTAL 34.3 25.8 33% Assets under management 12/2017 Fee income 1-12/2017 In
Slide 9: Asset Management – Rolling 12 months
Asset Management – Rolling 12 months Net revenue development, rolling 12 months (€’m)) EBIT development, rolling 12 months (€’m) 18.0 33.9 15.7 30.5 14.9 29.6 27.5 13.4 25.6 24.2 12.0 22.5 22.7 11.1 21.7 20.8 10.0 19.7 20.2 9.6 9.9 17.6 9.0 16.7 8.5 8.6 15.5 7.1 13.6 13.7 12.5 6.2 11.5 10.1 4.8 9.0
Slide 10: Asset Management – Mutual funds
Asset Management – Mutual funds Gross returns 29. Dec 2017 12 months 3 years p.a. Morning- Fund Return* Comparison Diff. Return* Comparison Diff. star Fixed income funds eQ Money Market -0,01 % 0,14 % no rating eQ Euro Floating Rate 2,12 % -0,33 % 2,44 % 1,33 % -0,17 % 1,50 % no rating eQ Government
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 30 properties in the investment portfolio – 145 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 2018 eQ PE SF II L.P. €65m Investing, 1st close 2018 eQ PE X North L.P. €83m Investing, 1st close 43 FoF 2017 eQ PE SF L.P. €138m Fully invested 10 €1.1 Bn 2017 eQ PE IX US L.P. $105m Investing 50 2016
Slide 13: SFR research 2017
SFR research 2017 Most used institutional asset managers Asset management ratings in quality Evli 59% eQ 3,86 eQ 55% Evli 3,85 Nordea 54% Aktia 3,77 OP 54% Mandatum Life 3,77 SEB 49% Danske Capital 3,73 Danske Capital 48% LähiTapiola 3,73 Aktia 36% Taaleri 3,68 Mandatum Life 29% KJK Capital 3,67 Fon
Slide 14: Corporate Finance
Corporate Finance
Slide 15: Corporate Finance
Corporate Finance Advium Corporate Finance Leading Finnish Corporate Finance advisor Completed over 170 transactions for a value of more than 13 billion euro 15 professionals with experience from Corporate Finance, Private Equity and Real Estate transactions Mergers & acquisitions Real estate
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) EBIT development, rolling 12 months (€’m) 9.7 5.0 9.1 9.1 4.6 4.5 7.9 7.0 3.7 6.8 6.9 3.4 6.3 6.2 3.2 3.3 5.9 2.9 5.2 2.7 2.6 2.2 4.5 4.2 3.8 2.0 1.8 3.0 1.4 1.5 1.4 2.1 0.9 0.4 EUR million 1-12/2017 1-12/2016 Change %
Slide 18: Investments
Investments
Slide 19: Investments – Key figures
Investments – Key figures EUR million 1-12/2017 1-12/2016 Returned capital (excl. profit) 3.3 4.3 Distribution of profits 1.7 2.5 Capital calls -3.2 -2.4 Net cash flow 1.9 4.4 Market value 18.8 19.2 The value change of investments during the period -0.1 -1.0 The unrealised value changes of investmen
Slide 20: eQ’s share and outlook
eQ’s share and outlook
Slide 21: Share price development
Share price development 10,00 9,00 8,00 7,00 6,00 5,00 eQ Oyj OMXH 4,00 3,00 2,00 1,00 0,00 The Market value of eQ Group was 311.3 million euro on December 31th 2017 On 2 January 2017, eQ Plc was transferred from Small Cap companies to Mid Cap companies in the annual market capitalisation classi
Slide 22: Largest shareholders – 31 December 2017
Largest shareholders – 31 December 2017 Shares Owhnership % 1 Fennogens Investments S.A. 6 973 137 18.59 2 Chilla Capital S.A. 5 652 635 15.07 3 Anchor Oy Ab 3 883 677 10.35 4 Teamet Oy 3 850 000 10.26 5 Umo Capital Oy 3 786 620 10.10 6 Oy Cevante Ab 1 419 063 3.78 7 Fazer Jan Peter 1 288 306 3.43 8
Slide 23: Outlook
Outlook The success of the asset management business in 2017 offers an excellent starting point for the year 2018. We expect the net revenue and operating profit of the Asset Management segment to grow in 2018. In accordance with our disclosure policy, we do not issue profit guidance for the Corpora