Capman Oyj Class B · OMXHEX:CAPMAN
Capman Oyj Class B — Q3 2009 Earnings Presentation
43 slides from Capman Oyj Class B's earnings presentation, Oct 30, 2009
Slide 1: CapMan Plc Group's Interim Report 1 January – 30 September 2009
CapMan Plc Group’s Interim Report 1 January – 30 September 2009 Press and analyst conference 30 October 2009 Heikki Westerlund, CEO, CapMan Plc
Slide 2: Contents
CapMan today Contents • Business environment • Result for Jan – Sep 2009
Slide 3: CapMan's growth strategy – focus on organic growth
CapMan’s growth strategy – focus on organic growth 2008 Expansion to Russia Establishment of a fund investing in public markets 2005 Expansion to real estate investments 2001–2004 Offices in Denmark, Sweden and Norway Public Market 2001 Listing in Helsinki Russia Stock Exchange Real Estate 1994 Life
Slide 4: CapMan – alternative asset manager in Nordic countries and Russia
CapMan – alternative asset manager in Nordic countries and Russia • Specialised listed alternative asset manager – Manages specialised third party private equity, venture capital and real estate funds – Listed on Helsinki Stock Exchange since 2001 – Market cap €103.0 million incl. A shares (closing
Slide 5: Six investment areas – over €1bn investment capacity
Six investment areas – over €1bn investment capacity CapMan Private Equity €1.8 billion CapMan Real Estate €1.7 billion CapMan CapMan CapMan CapMan CapMan Buyout Technology Life Science Russia Public Market 42 real estate 25 investment 10 investment 3 investment 9 investment 6 investment professiona
Slide 6: Key strategic assets – CapMan long term value
Key strategic assets – CapMan long term value Investment culture – active ownership Fundraising and fund management CapMan Brand Fund investment capacity Service infrastructure 6 30 October 2009
Slide 7: Dedicated investment partnerships benefit from CapMan's platform
Dedicated investment partnerships benefit from CapMan’s platform CapMan Plc / Board of Directors CEO Heikki Westerlund deputy CEO Jerome Bouix CapMan CapMan CapMan CapMan CapMan CapMan Buyout Technology Life Science Russia Public Real Estate Tuomo Raasio Petri Niemi Johan Petri Saavalainen Market Ma
Slide 8: CapMan main events in 2009
CapMan main events in 2009 Investments Exits CapMan Plc 4 portfolio company investments 2 final and 1 partial exit from 4 new funds €29 million hybrid bond issued 2 real estate investments portfolio companies Sale of fund investments and 1 opening of shopping center 1 exit from real estate investmen
Slide 9: CapMan Plc's largest shareholders
CapMan Plc’s largest shareholders 30 September 2009 Share of all shares % Share of all voting rights % Aristo Invest Oy + Ari Tolppanen* 10.3% 14.3% CapMan Partners B.V. 6.0% 23.2% Winsome Oy + Tuomo Raasio* 4.5% 7.2% Vesasco Oy 4.0% 2.5% Norum Russia Carry Limited (Hans Christian Dall 4.0% 2.4% Nyg
Slide 10: CapMan's ownership
CapMan’s ownership 31 December 2008, % of share capital • Nominee registered owners at the end of 2008 included funds managed by several 29% international investors, e.g. 34% – Royce & Associates – Dunedin Enterprise Investment Trust Plc – Red Rocks Capital – AP3 – INVESCO PowerShares Capital Manage
Slide 11: Contents
• CapMan today Contents Business environment • Result for Jan – Sep 2009
Slide 12: Impact of current market environment on CapMan's operations – overview
Impact of current market environment on CapMan’s operations – overview • Thanks to its organisation • Fundraising continues to and operating model, be challenging CapMan in a good position to • Prospects for growth in Fundraising meet new EU regulation for demand for alternative alternative asset ma
Slide 13: Fundraising continues to be challenging
Fundraising continues to be challenging General market trends • Downturn in economy and steep decline in market valuations of other asset classes slowing growth • Prospects for growth in demand for alternative assets remained good over long term Global private equity fundraising Number of private eq
Slide 14: M&A activity still at low level
M&A activity still at low level General market trends • Number of new potential portfolio companies remained at good level • With investment capacity of more than €1 billion, CapMan well-placed to make new investments • Signs that exit market begins to start up again Buyout deal value in Nordic regi
Slide 15: Examples of Nordic mid-market buyouts in 2009
Examples of Nordic mid-market buyouts in 2009 Date Target Business Country Investor Net sales 2/09 Investment bank Altor & Bure Equity €250 million 1/09 Healthcare services Bridgepoint €210 million 7/09 Private education Polaris €93 million 6/09 Hearing aid and medical devices Altor €78 million 4/09
Slide 16: Banks gradually coming back – equity ratios above 50%
Banks gradually coming back – equity ratios above 50% General market trends • Long-term cooperation with Nordic banks essential Equity contributions and leverage ratios in European buyouts 70% 6 54.6% 60% 5 50% 4 40% 3.4x 3 30% 2 20% 10% 1 0% 0 2002 2003 2004 2005 2006 2007 2008 H1/2009 Average equi
Slide 17: Performance development of Nordic stock exchanges
Performance development of Nordic stock exchanges General market trends • Average 3-month change more than 17% across Nordic region • 1-year change still slightly on the negative side at -5%, while the 3-year average change continues to very gloomy at -27% Stock exchange performance by country 30% 2
Slide 18: Portfolio company performance stabilised
Portfolio company performance stabilised 30 September 2009 • Slowdown in economic growth CapMan’s buyout investments reflected in portfolio companies at cost by industry • As a whole, portfolio companies’ performance in 2009 expected to be 12% below 2008 28% • Big differences between sectors 12% – M
Slide 19: Debt market crisis depressed real estate transaction volume
Debt market crisis depressed real estate transaction volume General market trends • Number of foreign players, in particular, fallen significantly • Weakening demand and rising yield expectations lowered valuation levels • Deals expected to pick up towards 2010 Deal value development in the Finnish
Slide 20: CapMan in good position to meet new EU regulations
CapMan in good position to meet new EU regulations • European Commission published proposal for directive on alternative investment fund managers • Transition of proposal into law expected earliest in 2010, depending on legislative processes within European Parliament and Member States • Discussion
Slide 21: Contents
• CapMan today Contents • Business environment Result for Jan – Sep 2009
Slide 22: Components of income and operating costs
Components of income and operating costs 30 September 2009, MEUR Turnover €26.3 million 30 1.3 0.4 -4.2 24.6 0.0 25 0.1 -24.4 20 15 Operating profit/loss 10 €-2.2 million 5 Profit/loss 0 before taxes -0.4 -0.9 €-3.4 million -5 Management fees Income from real estate consulting Carried interest Other
Slide 23: Group turnover and operating profit
Group turnover and operating profit Turnover Operating profit / loss 40 10 36.8 € million € million 30 5 3.7 27.0 26.3 3.3 0.4 19.5 20 0 17.0 -2.2 10 8.1 -5 -4.2 7.2 -4.7 -6.3 0 -10 1-3 1-6 1-9 1-12 1-3 1-6 1-9 1-12 2008 2009 2008 2009 23 30 October 2009
Slide 24: Group profit before and after taxes
Group profit before and after taxes Profit / loss before taxes Profit / loss after taxes 10 10 € million € million 5 3.7 5 2.7 2.7 1.9 0.7 0.5 0 0 -3.4 -3.0 -5 -5 -3.7 -4.6 -5.0 -5.6 -8.1 -10 -10 -10.7 -15 -15 1-3 1-6 1-9 1-12 1-3 1-6 1-9 1-12 2008 2009 2008 2009 24 30 October 2009
Slide 25: Operating segments and main components of income
Operating segments and main components of income Fund Investment Management Company business Business Returns on direct Real estate Management fees Carried interest fund investments from consulting own balance sheet • Based on original fund size • CapMan begins to receive • CapMan Plc’s • CapMan inv
Slide 26: Result of Management Company business
Management Company Result of Management Company business business Operating profit / loss of management company business € million 1–9/09 1–9/08 10 € million Turnover 26.3 27.0 8 7.3 Management fees 24.6 20.9 5.9 6 4.9 Real estate consulting 1.3 1.7 4 2.2 Carried interest 0.0 4.1 2 0.6 0.6 -0.2 Oper
Slide 27: Management fees
Management Company Management fees business 35 € million • 18% growth compared to 29.6 comparable period 30 • Increase attributable to 24.6 25 establishment of CapMan Hotels 20.9 RE, CapMan Public Market, 20 CapMan Russia and CapMan 15.6 Buyout IX funds in 2008 15 13.6 10 7.4 6.4 5 0 1-3 1-6 1-9 1-1
Slide 28: Carried interest
Management Company Carried interest business 5 • No substantial exits made from € million 4.1 4.1 4.1 funds in carry during review period 4 no carried interest income • In comparable period, carried interest income was €4.1 million, 3 (generated as result of StaffPoint exit) 2 1 0.0 0.0 0.0 0 1-3
Slide 29: Large medium-term carried interest potential
Management Company Large medium-term carried interest potential business 30 September 2009 Original capital of funds* €4,379.0 million Current portfolios at fair value** €2,083.9 million by funds’ carried interest stage by funds’ carried interest stage 7% 2% 9% 18% 13% 9% 66% 76% Funds generating ca
Slide 30: Result of Fund Investment business
Fund Investment Result of Fund Investment business business • Fair value changes -7.3% during review period and +0.9% in during third quarter • Reduction mainly due to weakening in result prospects of certain portfolio companies in 2009 • Fair value changes have no impact on Group’s cash flows Opera
Slide 31: Fund investments and commitments
Fund Investment Fund investments and commitments business • CapMan invests in future funds 1–5% of original capital depending on fund’s demand and CapMan’s own investment capacity • Sale of fund investments and commitments worth €25 million lowers capital calls in next few years 140 € million 120 10
Slide 32: Fund investments by investment area
Fund Investment Fund investments by investment area business 30 September 2009 • New investments totalling €9.2 million e.g. in CapMan Buyout VIII, CapMan Buyout IX, CapMan Russia and CapMan Public Market funds 60 € million 50 Remaining commitments, 40 €47.6 million in total 30 Investments at fair v
Slide 33: Actions taken to improve financial position
Actions taken to improve financial position €60 million senior loan facility agreed with two Nordic banks €29 million hybrid bond issued from institutional investors Target to be able to fund Sale of fund investments and all commitments even in potentially prolonging commitments worth of €25 million
Slide 34: Share of associated companies' result: Access Capital Partners
Share of associated companies’ result: Access Capital Partners • Leading manager and advisor of Assets under management European private equity funds of funds 3,000 • Capital under management €2.6 billion € million • Team of 31 professionals in Paris, 2,500 Brussels and Munich 2,000 • CapMan’s owner
Slide 35: Income Statement
Income Statement € million 1–9/09 1–9/08 2008 IFRS IFRS IFRS Turnover 26.3 27.0 36.8 Management fees 24.6 20.9 29.6 Carried interest 0.0 4.1 4.1 Real estate consulting 1.3 1.7 2.4 Other income 0.4 0.3 0.7 Other operating income 0.1 0.0 0.1 Operating expenses -24.4 -21.2 -29.8 Fair value gains / loss
Slide 36: Balance sheet – Assets, IFRS
Balance sheet – Assets, IFRS €1,000 30.9.2009 30.9.2008 31.12.2008 Non-current assets Tangible assets 959 1,114 1,064 Goodwill 10,245 11,897 11,762 Other intangible assets 3,016 3,063 3,229 Investments in associated companies 4,310 3,483 1,575 Investments at fair value through profit and loss Invest
Slide 37: Balance sheet – Total equity and liabilities, IFRS
Balance sheet – Total equity and liabilities, IFRS €1,000 30.9.2009 30.9.2008 31.12.2008 Capital attributable the Company's equity holders Share capital 772 772 772 Share premium account 38,968 38,968 38,968 Other reserves 36,673 5,224 25,829 Translation difference -560 -28 -226 Retained earnings -5
Slide 38: Key figures
Key figures 2005 2006 2007 2008 1-9/09 IFRS IFRS IFRS IFRS IFRS Earnings per share, € 0.09 0.15 0.24 -0.10 -0.07 Diluted, € 0.09 0.15 0.24 -0.10 -0.07 Shareholders’ equity / share, €* 0.64 0.74 0.86 0.86 0.91 Dividend / share, € 0.07 0.12 0.16 0.00 - Dividend / earnings, % 78.0 80.0 67.0 0.00 - Retu
Slide 39: Financial objectives
Financial objectives Objective Status as at 30 September 2009 Average growth of capital under Growth management at least 15% p.a. 18% growth from 30 September 2008 Return on equity over 25% Return on equity -4% Profitability Equity fund performance above 15% Buyout 2002 net IRR 14% net IRR to fund i
Slide 40: Future outlook
Future outlook • Management fees and income from real estate consulting cover fixed expenses in 2009 • Income from carried interest depends on developments in exit market – Despite slowdown, funds still have portfolio companies ready to enter exit process – CapMan Equity VII A, B and Sweden funds an
Slide 41: IR contacts
IR contacts Heikki Westerlund, CEO, Senior Partner tel. +358 207 207 504 heikki.westerlund@capman.com Jerome Bouix, Deputy CEO, Senior Partner tel. +358 207 207 558 jerome.bouix@capman.com Kaisa Arovaara, CFO tel. +358 207 207 583 kaisa.arovaara@capman.com Mari Maunula, Fundraising Manager tel. +358
Slide 42: Share price development and trading in 2009
Share price development and trading in 2009 Share price development, indexed CapMan 2003 B OMX Helsinki All Share PI LPX Europe CapMan B trading volume Trading volume 1–9/2009 = 12.9 million shares 2008 = 14.8 million shares 2007 = 30.9 million shares 2006 = 21.2 million shares 42 30 October 2009
Slide 43: Analysts following CapMan and IR schedule
Analysts following CapMan and IR schedule Analysts following CapMan IR schedule Cazenove, London 30 October 2009 Christopher Brown Interim Report 1 January – 30 September 2009 Tel. +44 (0) 20 7155 8145 Capital Markets seminar, Helsinki Pohjola Bank Plc 3 November 2009 Suvi Kosonen Q3 Investor Event