Operations and results 2015

Transcription

1 Operations and results 2015

2 Highlights in m New investments >20% Growth in sales of the 15 fastest growing portfolio companies 156m Excellent year for exits Cash flow from investments in m 86m Profit for financial year (after taxes)

3 Business climate 2015 Finland s economy facing challenges, investment and industrial production declining Financial markets were stable, banking sector sound, but stricter regulation squeezed loan availability Favourable developments in investment sector: Finland now a European leader in venture capital investments (as proportion of GDP) Numerous successful IPOs and exits by investors International investments in Finland more selective than previous years Activity levels of Finnish private equity and venture capital investors Source: FVCA Fundraising Investments Exits (at acquisition cost)

4 Our business focus Industrial Investments Industrial investments Size of fund / direct investment Venture Capital Venture capital financing for internationalising technology companies Venture capital funds Finnish and international teams Growth Investments Growth financing for mediumsized enterprises Later growth funds Growth financing for SME segment Start-up 2-20m 20m+ Development phase/ net sales m We operate on market terms, hand-in-hand and on equal terms with private investors.

5 Result for financial year 2015 Net gains from investments of 108.8m consists of realised and unrealised changes in fair value: 71.6m funds; A number of profitable exits and successful IPOs of portfolio companies. 37.2m direct investments; Unrealised changes in fair value had an appreciable impact. Exits also had a positive impact. Consolidated statement of comprehensive income IFRS EUR thousands 1-12/ /2014 Net gains from venture capital and private equity funds Venture capital Later stage Net gains from direct investments, total Net gains from investments, total Net gains from financial securities Income from fund management Other operating income, total Personnel expenses Depreciation and impairment Other operating expenses Operating profit / loss Financial income and expenses Profit / loss before taxes Income taxes Profit / loss for financial year Total comprehensive income (loss) for year

6 Balance sheet 31 December 2015 Balance sheet value of funds 326m has increased by 41m from start of year capital calls 68m capital distributions from funds -99m realised and unrealised changes in fair value recognised as a gain 72m Balance sheet value of direct investments 134m has increased by 5m from start of year payments for investments 25m exits -57m realised and unrealised changes in fair value recognised as a gain 37m Current assets 423m consist mainly of liquid assets (financial securities) Consolidated Balance Sheet IFRS EUR thousands Non-current assets Investments Venture capital and private equity funds Direct investments Venture capital and private equity investments, total Non-current assets total Current assets, total Assets, total Equity and liabilities Share capital Share premium account Retained earnings Profit for financial year Equity, total Liabilities Non-current liabilities, total Current liabilities, total Liabilities, total Equity and liabilities, total

7 Cash flow 2015 Cash inflow from investments during the year amounted to 156m and net cash flow was +63m Cash flow 1-12/2015 EUR millions Out In Net Venture capital and private equity funds Direct investments Total

8 Investments in 2015 Venture Capital Growth Investments Industrial Investments Venture Capital -funds Later growth funds INVESTMENTS 2015, TOTAL Funds 67m FoF Growth II 38m Direct 25m

9 Exits in 2015 Venture Capital Growth Investments Industrial Investments Venture Capital -funds Later growth funds EXITS 2015 Company Fund Company Fund Cash flow from exits Sponsor capital 156m From funds 99m (of which 7m via FoF Growth) From direct investments 57m

10 Growth and performance of direct investments in 2015 Business development and value creation Active ownership and strengthening the pool of expertise in portfolio companies are important tools for achieving favourable growth, internationalisation and value creation in our portfolio companies. They supplement channelling money into the companies. Growth Net sales of our venture capital portfolio companies grew in 2015 by some 35 % (median) For example, software provider M-Files Oy continued its strong growth: net sales +36 % and personnel in Finland +30 % Some more mature companies, such as Coronaria and Aker Arctic, also showed good growth Valmet Automotive secured a new manufacturing agreement (Mercedes-Benz GLC) Finnish Industry Investment s portfolio companies achieving fastest growth in 2015 Visedo Oy Coronaria Hoitoketju Oy Optomed Oy Multi Touch Oy Rightware Oy Aker Arctic Technology Oy Growth,% Pesmel Oy LeadDesk Oy Net sales ( m) 35,0 8,1 5, ,5 11,4 30,3 4,1 6,7 13,7 4,5 6,1 7,0 90,2 18,4 3,

11 Mammoth order for Uusikaupunki: Valmet to start manufacturing new Mercedes model Software provider LeadDesk received millions of euros in financing Indian Mahindra acquires majority holding in Holiday Club further 28m investment Juuri Partners opened the taps renovation building boom attracts investment millions for Kas-Telineet 100m investment in packing board: Kotkamills seeks new growth

12 Brisk start to 2016 Investment activity has been brisk during early We have, for instance: invested in the Nordic fund Creandum IV invested in the international cleantech company BMH Technology invested in the rapidly-growing software providers Vaadin and M-Files signed an agreement with international and Finnish investors regarding investing in pre-school and day-care centre operator Touhula Varhaiskasvatus With fund investments we will continue to finance Finnish venture capital and private equity funds with the aim of increasing their fund sizes and encouraging international funds to be more active in Finland s investment market. We focus our direct investments on internationalising companies that need later-stage venture capital financing and also on medium-sized Finnish companies seeking international growth. The objective of our investment operations is international networking, improved channelling of capital, and the strengthening of expertise and active ownership in portfolio companies to enhance growth, profitability and value creation.

13 Investing in Growth