CapMan Plc s Annual General Meeting Heikki Westerlund, CEO, Senior Partner 27 March 2008

Transcription

1 CapMan Plc s Annual General Meeting 2008 Heikki Westerlund, CEO, Senior Partner 27 March 2008

2 Contents CapMan today Market update Year 2007 Year 2008 Future outlook 2

3 CapMan the Nordic alternative asset manager Full Nordic presence and market coverage Established in 1989 Offices in Helsinki, Stockholm, Copenhagen and Oslo Listed on Helsinki Stock Exchange since 2001 Unique listed alternative asset manager Manages specialised third party private equity, venture capital and real estate funds Dedicated teams in each investment area Funds under management approx. 3.9 billion Assets managed/advised by Access Capital Partners approx. 2.5 billion* * CapMan owns 35% of affiliated company Access Capital Partners. 3 CapMan Plc s Annual General Meeting March 2008

4 Strong growth in capital under management Capital under mgmt, M 4,000 MBO Domestic partnership LISTING Nordic presence and funds 3,500 3,000 2,500 2,000 1,500 1, /08 Buyout funds Mezzanine funds Technology funds Life Science funds Real Estate funds 4 CapMan Plc s Annual General Meeting March 2008

5 Growth strategy CapMan s strategy is to exploit growth opportunities within the alternative asset class. In addition to CapMan s existing business lines (Private Equity and Real Estate) the alternative asset class includes, among others, infrastructure investment, forestry investment and active public market funds. CapMan is at present exploring opportunities to expand geographically into Russia and to establish a fund investing in public markets based on CapMan s value creation expertise. We aim to concretise the projects during

6 Contents CapMan today Market update Year 2007 Year 2008 Future outlook 6

7 European private equity fundraising activity decreased from record year 2006 investment activity stable European private equity activity in 2007 preliminary data 120 bn E Fundraising Investments Divestments Source: EVCA 7

8 Remarkable growth in European middle market buyout activity in 2007 Mega deals disappeared from European buyout market in the fourth quarter decrease also in middle market deal activity Steady increase in deals below 160 million also in the year-end Deal value by size range Number of deals by size range % increase % increase bn # E E <M 160 M bn 1.65 bn+ <M 160 M bn 1.65bn+ Source: unquote Private Equity Barometer, compiled by Incisive Media 8

9 Finnish real estate market activity stabilized Total deal value increased to 5.7bn in % of the transactions completed in 2007 done by international investors Deal value development in Finnish commercial property market 6 5 bn % 64% Domestic International Source: KTI 9

10 Contents CapMan today Market update Year 2007 Year 2008 Future outlook 10

11 Nordic deal flow in 2007 By country A3 % A2 % A1 % 17% Denmark 73 17% 6 14% 1 5% Finland % 16 37% 11 55% 42% Norway 55 13% 7 16% 4 20% 27% Sweden Total % 100% % 100% % 100% Denmark Finland Norway Sweden 13% By team A3 % A2 % A1 % 24% 21% Buyout 89 21% 24 56% 10 50% Technology Life Science % 24% % 14% % 15% Buyout Technology Total % % % Life Science 55% In addition, CapMan Real Estate has analysed around 140 investment opportunities. 11 CapMan Plc s Annual General Meeting March 2008

12 New portfolio company investments in 2007 Komas Oy, Buyout, Finland Skandia Autologistics, Buyout, Finland Mirasys Oy Technology, Finland Novintel Oy Technology, Finland Walki Group Buyout, Finland Nacka Närsjukhus Proxima AB Buyout and Life Science, Sweden Curato AS Buyout and Life Science, Norway Mawell Oy, Technology and Life Science, Finland Movial Oy Technology, Finland IT 2 Treasury Solutions Technology, Denmark KMW Energi AB, Technology, Sweden Barnebygg Group Buyout, Norway Varesvuo Partners Oy Buyout, Finland 12

13 New real estate investments in 2007 Kalevankatu 20, Helsinki Malminkaari 9, Helsinki Ludviginkatu 3 5, Helsinki Ylistönmäentie 33, Jyväskylä Kasarmikatu 4, Hämeenlinna Entresse Shopping Centre, Espoo Elimäenkatu 9A and 9B, Helsinki Kristiinankatu 3 5, Turku Parolantie 104, Hämeenlinna Mastola Logistics Centre, Vantaa Hankasuontie 3, Helsinki Yliopistonkatu 22, Turku Tokmanni Logistics Centre, Mäntsälä Lönnrotinkatu 20, Helsinki Viinikankatu 49, Tampere Skanssi Shopping Centre, Turku Investment announced 13

14 Exits in 2007 Sale of CapMan Real Estate I portfolio (22 real estates) LindPlast A/S Buyout, Denmark Synerco AB Buyout, Sweden Copterline Oy Buyout, Finland Savcor Oy Buyout, Finland Distocraft Oy, Technology, Finland SysOpenDigia Plc(ex- Sentera Plcj), Technology, Finland MediaNorth Oy Technology, Finland Avitec Oy Technology, Finland Affecto Oyj, Technology, Finland Announced/partial exits Moventas Oy Buyout, Finland Secgo Sofware Oy Technology, Finland Hantro, Technology, Finland Solid Information Technology Oy, Technology, Finland 14

15 Fundraising in % growth in capital under management Final closing of three funds CapMan Technology 2007 at a level of million CapMan Life Science IV at a level of 54 million CapMan RE II at a level of 600 million of which 25% is equity and 75% senior loan Continued support from Nordic investors in fundraising Ambition to further internationalise the investor base 15

16 Financial objectives Objective Status as at 31 December 2007 Growth Average capital growth of funds under management at least 15% per annum 18% growth from 31 December 2006 (27% growth already achieved in 2008) Profitability Capital structure Return on equity over 25% Equity fund performance above 15% net IRR to fund investors per annum Finance 50% of CapMan Plc s future fund investments with debt financing Equity ratio at least 50% Return on equity 39% Buyout 2002 net IRR 21% Technology 2002 net IRR 0.3% Real estate 2005 net IRR 28% 36% of CapMan Plc s fund investments financed with debt financing* Gearing -27.5% Equity ratio 58% Dividend policy Pay-out ratio at least 50% of the net profit Proposal of the Board of Directors for 2007 dividend 0.16 which equals to 67% of the net profit *Debt financing as a percentage of CapMan s fund investments at fair value.. 16

17 Components of income and operating costs (31 Dec 2007, M ) 70.0 Total effect of own investments 6.2 million Minority interest 7.6 million Share of equity holders of the Company 16.0 million Turnover 51.6 million Pre-tax profit in 32.7 million Operating profit 29.8 million 0.0 Management fees Carried interest Income from fund investments, realised Other income Financial income and expenses Income from real estate consulting Other operating income Fair value gains and losses of investments Operating expenses Share of associated companies result 17

18 Income statement, IFRS 1,000 Turnover Other operating income Personnel expenses Depreciation and amortisation Other operating expenses Fair value gains / losses of investments Operating profit Financial income and expenses Share of associated companies' result Profit before taxes Income taxes Profit for the financial year 1-12/ , , ,958 3,549 15, ,279 17,325-4,893 12, / , , ,783 5,696 29,759 1,070 1,915 32,744-8,509 24,235 Attributable to: Equity holders of the company Minority interest 11, ,620 5,615 18

19 Balance sheet Assets, IFRS 1,000 Non-current assets Tangible assets Goodwill Other intangible assets Investments in associated companies Investments at fair value through profit and loss Investments in funds Other financial assets Receivables Deferred income tax assets Current assets Trade and other receivables Other financial assets at fair value through profit and loss Cash and bank , ,860 33, , ,123 5,521 2,779 14,137 22, ,845 1,001 3,407 44, ,191 3,547 74,918 7,837 14,857 19,741 42,435 TOTAL ASSETS 79, ,353 19

20 Balance sheet Total equity and liabilities, IFRS 1,000 Capital attributable the Company's equity holders Share capital Share premium account Other reserves Translation difference Retained earnings Minority interest Total equity ,968 1, ,074 56, , ,968 2, ,676 67, ,544 Non-current liabilities Deferred income tax liabilities Interest-bearing loans Other liabilities Current liabilities Trade and other payables Interest-bearing loans and borrowings Current income tax liabilities Total liabilities TOTAL EQUITY AND LIABILITIES 2,234 10, ,664 7,409 1, ,949 22,613 79,560 3,734 16, ,435 21, ,018 29,374 49, ,353 20

21 Key figures Earnings per share, 2003 FAS IFRS IFRS IFRS IFRS 0.24 Diluted, Shareholders equity / share, Dividend / share, * Dividend / result, %* Dividends paid, 3.7 4, Return on equity, % Return on investment, % Equity ratio, % Personnel (at the end of the year) * Proposal of the Board of Directors for

22 CapMan s ownership 31 December % 35% 36% CapMan Partners B.V. and employee shareholders Nominee registered and foreign shareholders Other owners Nominee registered owners at the end of 2007 included funds managed by several international investors Dunedin Enterprise Investment Trust Plc, Explora Capital Management ASA, Legg Mason Inc, Partners Group, Sjunde AP-fonden, Royce & Associates and Troy Asset Management In addition Barwon Investment Partners, C Brooke Investment Partners Ltd. and Hermes Investment Management managed CapMan shares on behalf of discretionary clients According to the information received from the investors, the aggregate holding of these entities was slightly above 20 per cent of the shares 22

23 All Senior Partners shareholders of CapMan Plc 31 December 2007 CapMan Partners B.V. form the second largest shareholder and the largest user of voting rights Ownership of CapMan Plc (by shares) Ownership of CapMan Plc (by voting rights) Senior Partners 28% 39% 37% 66% 6% Current 14 Senior Partners CapMan Partners B.V. Other owners 24% Current 14 Senior Partners CapMan Partners B.V. Other owners 23

24 Contents CapMan today Market update Year2007 Year 2008 Future outlook 24

25 Growth continued in the beginning of 2008 Substantial 27% growth in funds under management CapMan Hotels RE fund established at a level of 835 million on 18 January. Fundraising continues with maximum fund size 1.1 billion. Final closing of CapMan Technology 2007 at a level of million on 23 January. Acquisition of 39 hotel properties closed in 29 February Three new buyout investments announced Varesvuo Partners Oy (TV content production) Barnebygg Group (provider of day care services) Cargo Partner Group AS (logistics) 25

26 Acquired hotels on a map Inari Holiday Club Saariselkä (139) Åre, Sweden Holiday Club Åre Rovaniemi Cumulus Rovaniemi (64) Rantasipi Pohjanhovi (215) Scandic Rovaniemi (167) Kuusamo Rantasipi Rukahovi (180) Holiday Club Kuusamon Tropiikki (125) Kemi Cumulus Kemi (184) Oulu Holiday Inn Oulu (154) Cumulus Oulu (207) Holiday Club Oulun Eden (169) Sotkamo Holiday Club Katinkulta (116) Vaasa Radisson SAS Vaasa (285) Rantasipi Tropiclandia (184) 38 hotels in Finland and 1 in Sweden 6,477 hotel rooms in 2007 Well-known hotel chains as tenants Restel Group Sokotel Scandic Kuopio Cumulus Kuopio (141) Jyväskylä Rantasipi Laajavuori (175) Cumulus Jyväskylä (203) Seinäjoki Cumulus Seinäjoki (71) Tampere Cumulus Koskikatu (230) Holiday Inn Tampere (135) Holiday Club Tampere (92) Cumulus Pinja (60) Nokia Rantasipi Eden (204) Hämeenlinna Rantasipi Aulanko (246) Cumulus Hämeenlinna (100) Sokos Hotel Vaakuna (123) Rauma Cumulus Rauma (103) Hyvinkää Rantasipi Sveitsi (194) Joutsa Rantasipi Joutsenlampi (42) Kotka Sokos Hotel Seurahuone (128) Turku Holiday Inn Turku (199) Scandic Turku Plaza (117) Helsinki Crowne Plaza Helsinki (349) Sokos Hotel Pasila (178) Palace Linna (48) Sokos Hotel Albert (95) CapMan Plc s Annual General Meeting /10/2007 Vantaa Cumulus Airport (278) Ramada Airport (292) Holiday Inn Garden Court (284) 27 March 2008 Palace Hotels 26

27 Contents CapMan today Market update Year 2007 Year 2008 Future outlook 27

28 Future outlook Management fees and returns on real estate consulting operations cover CapMan s fixed expenses. The Group s result for 2008 will depend on how many new exits are made by funds already generating carried interest; on whether new funds transfer to carry; and on how the value of investments develops in those funds in which CapMan is a substantial investor. According to our understanding CapMan Equity VII A, B and Sweden funds, Finnventure Fund IV and Finnmezzanine III A and B funds will begin to generate carry during 2008 and The funds have several exit processes underway. We expect that our portfolio companies and real estate assets will develop favourably in However the prevailing unstable situation in financial markets may reflect, as a result of the changes in listed peers valuations, on the fair value of the funds investment targets and hence also reflect on the fair value of the Group s fund investments in CapMan Plc s Annual General Meeting March 2008