CapMan Plc Group s result for Press and analyst conference 2 February 2007 Heikki Westerlund

Transcription

1 CapMan Plc Group s result for 2006 Press and analyst conference 2 February 2007 Heikki Westerlund 02 February

2 2006 Highlights Year of growth in terms of all key figures Growth in capital under management 17%, target 15% on average Growth in turnover 32% Growth in profit before taxes 84% ROE 23.4 %, target over 25% Equity ratio 71 %, target over 50% Dividend pay out ration 80%, target over 50% Proposed dividend payment 0.12 per share, EPS 0.15 The sale of CapMan Real Estate I fund s real estate portfolio in December Closed on 31 January 2007, impact on 2007 result 13.5 million* * Taking minority interest into account. 02 February

3 CapMan the Nordic private equity house 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 asset manager manages specialised third party private equity, venture capital and real estate funds dedicated teams in each investment area Funds under management approx. 2.8* billion in addition assets managed/advised by Access Capital Partners approx billion** * Incl. the second closing of CapMan RE II in February ** CapMan owns 35% of affiliated company Access Capital Partners. 02 February

4 2006 another record year for European buyouts Aggregate buyout deal value up by 43% amounting to 168 billion Aggregate deal volume up by 17% with 707 buyouts completed bn # CAGR 24% CAGR 15% P P Source: unquote Private Equity Barometer, compiled by Incisive Media, data for year 2006 preliminary 02 February

5 Mega deals behind record high activity figures In 2006 largest buyouts accounted for 50% of the aggregate value mid category relatively stable with average annual aggregate deal value of ~ 60bn in Record high number of large buyouts with 23 transactions in 2006 volume of mid category deals quite stable since % 90 % 80 % 70 % % 90 % 80 % 70 % % 50 % 40 % 30 % % 50 % 40 % 30 % % 20 % 10 % % 0 % P 0 % P <M 160 M bn 1.65bn+ <M 160 M bn 1.65bn+ Source: unquote Private Equity Barometer, compiled by Incisive Media, data for year 2006 preliminary 02 February

6 Assets under management increased by 374 million Capital under mgmt, M MBO Real Estate funds Life Science funds Technology funds Mezzanine funds Buyout funds Domestic partnership LISTING Nordic presence and funds /07 02 February

7 Components of income and operating costs 30 December 2006, M Total effect of own investments 4.4 million Operating costs Turnover 38.0 million Pre-tax profit in 17.3 million Operating profit 15.6 million Management fees Income from real estate consulting Carried interest Other income within turnover Income from fund investments, realised Fair value gains and losses of investments Other operating income Financial income and expenses Share of associated companies result 02 February

8 Main reasons for the change in profit before taxes 25.0 Profit before taxes Increase in management fees Increase in income from real estate consulting Increase in carried interest Increase in other operating income Increase in income from fund investments, realised Increase in fair value gains and losses of investments Increase in other income Increase in operating costs Decrease in financial income and expenses Increase in share of associated companies result 02 February

9 Turnover and operating profit in 2006, M Turnover, change* +32% Operating profit, change* +86% 40,0 38,0 16,0 15,6 35,0 30,0 29,0 28,7 14,0 12,0 12,0 25,0 20,0 15,0 18,4 15,9 21,8 10,0 8,0 6,0 5,2 7,4 7,6 7,3 8,4 10,0 5,0 8,9 5,5 4,0 2,0 1,5 0, , *from comparative period 02 February

10 Profit before and after taxes in 2006, M Profit before taxes, change* +84% Profit after taxes, change* +77% 20,0 18,0 16,0 14,0 12,6 17,3 14,0 12,0 10,0 9,5 12,4 12,0 10,0 8,0 7,8 7,9 7,8 9,4 8,0 6,0 5,7 5,9 5,9 7,0 6,0 5,1 4,0 3,7 4,0 2,0 1,6 2,0 1,2 0, , *from comparative period 02 February

11 Management fees in 2006, M ,9 12,4 14,9 18,7 20,3 24,9 Change +23% Increased due to management fees received from CapMan Buyout VIII and CapMan Real Estate I funds established in 2005 and CapMan Life Science IV established in The sum of management fees received from older funds fell due to the exits that were executed after the comparative period. 5 5,3 5, February

12 Carried interest in 2006, M 10,0 9,0 8,0 7,0 6,0 5,0 4,0 3,0 2,0 1,0 0,0 9,4 7,5 6,6 5,7 5,7 3,8 2,6 0, Change +42% Carried interest accrued as follows: Tiimari exit / 3.4 million PPTH-Norden exit / 2.2 million CTC Media exit / 1.7 million* Puulämpö Yhtiöt exit / 0.9 million The repayment of Finlayson & Co's mezzanine loans / 0.3 million The rest from smaller cashflows from funds generating carried interest In the comparative period carried interest income accrued for the most part from the exit from Finndomo * Total carried interest income is 1.7 million, out of which 1.0 million is minority s and 0.7 million the parent company s holders share. 02 February

13 Funds generating carried interest at 31 Dec 2006 Cumulative portfolio at cost: Cumulative portfolio at fair value: 19.4 million 22.2 million Buyouts Technology investments FV II FV III + III G Fenno Fund Fenno/ Skandia I Fenno/ Skandia II FM II B CapMan Real Estate I tranferred into carry on 31 January 2007 Further information on 02 February

14 Analysing carried interest potential: FV IV and FV V funds 31 December 2006 FINNVENTURE IV Fund size: 59.5 million Paid-in capital: 59.5 million Portfolio at cost: 14.3 million Portfolio at fair value: 13.9 million Cash flow to investors: 62.2 million FINNVENTURE V Fund size: million Paid-in capital: million Portfolio at cost: 65.4 million Portfolio at fair value: 55.4 million Cash flow to investors: million Buyouts (80% allocation) Buyouts (80% allocation) Technology investments (20% allocation) Technology investments (20% allocation) Further information on 02 February

15 Portfolio of CapMan Equity VII 31 December 2006 CAPMAN EQUITY VII A B C Sweden Fund size: Portfolio at cost: Portfolio at fair value: Cash flow to investors: Investment focus buyout/tech: % / 35% % / 0% 4.6 0% / 100% % / 35% CapMan s commitment: 16.0 million Buyout investments Technology investments * Exit announced Read more: 02 February

16 Fund investments made from CapMan s own balance sheet Since 2002 CapMan has been a significant investor in the funds managed by the group CapMan invests 5-10% of the total capital in CapMan s equity funds investing in portfolio companies M ,5 50,4 30,5 23,2 22,1 33,1 14,6 16,2 20,3 9, The remaining commitments mainly target: - CapMan Life Science IV, est CapMan Buyout VIII, est CapMan Mezzanine IV, est CapMan Equity VII, est Access Capital Fund II, est Existing investments are mainly made in: - CapMan Buyout VIII, est CapMan Equity VII, est Access Capital Fund II, est Swedestart Tech, est February

17 The impact of own fund investments, M 5,0 Change +110% 4,0 3,0 2,0 1,0 0,5 2,2 0,8 2,4 1,0 3,4 2,1 4,4 The impact on the Company s result totalled 4.4 million Realised returns 0.9 million ( 0.5 million) Gains in the fair value of investments 3,5 million ( 1,6 million) Fair value gains were related in particular to value creation in CapMan Equity VII fund 0, February

18 Turnover and result development Capital under management 2,549.6 million ( 2,176.1 million in 2005) Turnover 38.0 million ( 28.7 million) Management fees 24.9 million ( 20.3 million) Carried interest income 9.4 million ( 6.6 million) Income from real estate consulting 2.0 million ( 0.9 million in Jun- Dec 2005) Other operating income within turnover 0.8 million ( 0.4 million) The impact of fund investments made from CapMan s balance sheet 4.4 million ( 2.1 million) Realised gains totalled 0.9 million ( 0.5 million) Changes in the fair value of investments 3.5 million ( 1.6 million) Operating profit 15.6 million ( 8.4 million) Profit before taxes 17.3 million ( 9.4 million) Profit after taxes 12.4 million ( 7.0 million) 02 February

19 Income Statement million Turnover Management fees Carried interest Income of investments in funds Income from real estate consulting Other income Share of associated companies result Fair value gains Other income* Operating expenses Operating profit Share of associated companies result Financial income and expenses Profit before taxes Profit after taxes 2002 FAS FAS IFRS IFRS IFRS * Profit from the sale of 12.5% of Access Capital Partners shares in 6/2006 amounts to 0.6 million. 02 February

20 Key figures million 2002 FAS 2003 FAS 2004 IFRS 2005 IFRS 2006 IFRS Earnings per share, Diluted, Shareholders equity / share, Dividend / share, * Dividend / result, %* Dividends paid, * Return on equity, % Return on investment, % Equity ratio, % Personel (at the end of the year)** * For 2006, the Board of Directors proposal for the AGM. **incl. Senior Advisors 02 February

21 Fundraising Final closing of CapMan Buyout VIII at 440 million CapMan RE II reached investment capacity of approx. EUR 550 million at second closing in February 2007, fundraising continues 25% equity and 75% senior loan Fundraising for CapMan Life Science IV continues Fundraising for CapMan Technology 2007 commenced Continued support from Nordic investors in fundraising Ambition to further internationalise the investor base 02 February

22 New investments in 2006 MQ Sweden AB, Buyout, Sweden Tamro MedLab Oy + SelefaTrade AB + Förbandsmaterial AB Buyout, Finland+Sweden Maintpartner Oy Buyout, Finland Erottajankatu Malmin Nova shopping center 42Networks AB, Technology, Sweden Spintop Netsolution AB, Technology, Sweden Neoventa Medical AB, Life Science, Sweden ProstaLund AB, Life Science, Sweden QuickCool AB, Life Science, Sweden Tikkurilantie 136 Henry Fordinkatu 6 Komas Oy, Buyout, Finland (to be closed in 2007) 02 February

23 Exits in 2006 PPTH-Norden, Buyout, FINLAND Puulämpö Yhtiöt Oy, Buyout, FINLAND Mehiläinen Oyj, Buyout, FINLAND Kultajousi Oy, Buyout, FINLAND Drobe Wool Company, Buyout, LITHUANIA Matkatoimisto Matka-Vekka Oy, Buyout, FINLAND Tiimari Oy, Buyout, FINLAND RGS 90 A/S, Buyout, DENMARK Nordkalk Oyj, Buyout, FINLAND Finlayson & Co Oy, Buyout, FINLAND (partial) Modultek Oy, Technology, FINLAND Quartal Oy, Technology, FINLAND AtBusiness Communications Oy, Technology, FINLAND Sentera Plc, Technology, FINLAND (partial) ProstaLund AB, Life Science, SWEDEN Announced in 2006/2007, to be closed in 2007 Distocraft Oy, Technology, FINLAND Eco-Dan A/S, Technology, DENMARK Moventas Oy Buyout, FINLAND 02 February

24 Future outlook The profit before taxes for 2007 will improve from This estimate is based on the closing of the sale of CapMan Real Estate I fund s portfolio and on the funds announced partial exit from Moventas Oy at the end of January. These transactions have, taking the minority interest into consideration, an impact of approximately EUR 15 million on 2007 result. The final result for 2007 will depend on how many exits are made from portfolio companies owned by funds already generating carried interest, on the possible transfer of new funds to carry, and on how the value of investments develops in those funds in which CapMan is a substantial investor. According to our understanding the exit markets will remain favourable. It is estimated that Finnventure Fund V, Finnventure Fund IV and CapMan Equity VII A, B and Sweden funds will begin to generate carried interest during The transfer of Finnventure Fund V to carry requires approx. MEUR 2 net cash flow to fund investors. The funds investing in portfolio companies have several exit processes underway. 02 February

25 IR contacts Heikki Westerlund, CEO, Senior Partner tel heikki.westerlund@capman.com Jerome Bouix, Partner, Fundraising, IR & Communications tel jerome.bouix@capman.com Olli Liitola, CFO, Senior Partner tel olli.liitola@capman.com Mari Reponen, Communications Manager tel mari.reponen@capman.com 02 February

26 Extra slides 02 February

27 Share price development (12 months rolling) 3,2 3,0 2,8 2,6 2,4 2,2 2,0 1,8 1,6 1,4 1,2 1, CapMan B CapMan 2000AB stock options CapMan 2003A stock options Relative CapMan B Relative OMX Helsinki 02 February

28 Distribution of ownership at 31 December % 4 % 7 % 42 % 16 % 42 % 31 % 31 % Management and employees Nominee register and foreign shareholders Other owners Corporations Nominee registed and foreign shareholders Households Financial and insurance corporations Non-profit and public sector institutions 02 February

29 CapMan Plc s 12 largest shareholders 31 December 2006 Aristo Invest Oy* + Ari Tolppanen** Geldegal Oy* + Olli Liitola** Winsome Oy* + Tuomo Raasio** Vesasco Oy* Heiwes Oy* + Heikki Westerlund** Finnish State Pension Fund Novestra Ab* + Peter Buch Lund** OP-Suomi Kasvu Mutual Fund Nordea Life Assurance Finland Ltd Guarneri Oy* + Petri Saavalainen** Degato International SARL (Lennart Jacobsson***) Svenska Litteratursällskapet I Finland Shares % 13.2 % 6.9 % 6.9 % 5.6 % 5.1 % 3.2 % 2.5 % 2.1 % 1.6 % 1.6 % 1.5 % 1.2 % Votes % 21.5 % 11.4 % 11.4 % 10.7 % 7.1 % 1.7 % 5.7 % 1.1 % 0.8 % 2.0 % 0.8 % 0.6 % * A shares are owned by companies which are controlled by persons acting as CapMan's Senior Partners at the time of the Company's listing in Each A share has 10 votes and each B share has one vote. ** Employed by CapMan. *** CapMan employee who exercises controlling power in the aforementioned company but who does not own CapMan shares directly. 02 February

30 Financial objectives Growth - Average capital growth of funds under management at least 15% per annum Profitability - Return on equity over 25% - Equity fund performance above 15% net IRR to fund investors per annum Capital structure Divident policy - Finance 50% of CapMan Plc s future fund investments with debt financing - Equity ratio at least 50% - Pay-out ratio at least 50% of the net profit 02 February

31 CapMan s vision Our vision is to be the preferred Nordic private equity partner for investors globally and entrepreneurs locally. 02 February

32 CapMan s values High Ethics our heart We believe in integrity and transparency. We are a reliable partner and we respect our stakeholders. We want to be an example of high ethics. Dedication our soul We are committed to reach our objectives. We are innovative and aim to be the trendsetter for the industry. Employees are our most important resource. Active Ownership our drive We are an active industrial player with strong financial know-how. We create lasting value through growth, change and professional governance. 02 February