CapMan Buyout. Markus Sjöholm Senior Partner, Deputy Head of CapMan Buyout

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1 CapMan Buyout Markus Sjöholm Senior Partner, Deputy Head of CapMan Buyout

2 Forward-looking statements and disclaimer Certain statements included in this material, including, without limitation, statements regarding future performance of the company, expectations regarding market growth and trend projections as well as any statements preceded by the words expect, believe, foresee or similar expressions are forward-looking statements. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. Therefore, actual results may differ materially from the results that are expressed or implied by these forward-looking statements. CapMan Plc assumes no obligation to update such forward-looking statements except as required by mandatory law. Nothing in this presentation constitutes investment advice or an offer to sell or the solicitation of an offer to buy any securities or otherwise to engage in any investment activity March 2011 CapMan CMD CapMan Buyout

3 The Buyout team 3 31 March 2011 CapMan CMD CapMan Buyout

4 Contents Team development and focus Business and market review Case Design-Talo 4 31 March 2011 CapMan CMD CapMan Buyout

5 The role of the buyout partnership 15 Partners and Senior Partners Overall responsibility for the Buyout investment operations and strategy Nominates Head of Team and Deputy Head of Team Appoints the members of Investment Committee and Value Creation Committee 5 31 March 2011 CapMan CMD CapMan Buyout

6 Investment focus on middle market buyouts Middle Market: EV million Nordic Presence Control Investments 6 31 March 2011 CapMan CMD CapMan Buyout

7 New team leadership Kai Jordahl Head of CapMan Buyout Markus Sjöholm Deputy Head of CapMan Buyout 7 31 March 2011 CapMan CMD CapMan Buyout

8 Small Investment Committee for increased agility 6 Partners and Senior Partners Investments, add-ons and exits Investment strategy Head: Heikki Westerlund Senior Partner, Chairman of CapMan Plc Board 8 31 March 2011 CapMan CMD CapMan Buyout

9 Value Creation Committee for case team support 5 members Challenges and supports case teams Fund and Portfolio management focus Verify value creation measures Head: Tuomo Raasio, Senior Partner VCC is an informal and non-decision-making committee 9 31 March 2011 CapMan CMD CapMan Buyout

10 Continuous improvement of performance Active Ownership Initiative Best Practices Lectures and Seminars March 2011 CapMan CMD CapMan Buyout

11 Contents Team development and focus Market and business review Case Design-Talo March 2011 CapMan CMD CapMan Buyout

12 Buyouts in the Nordic region nearly doubled in 2010 # Number of buyout deals in Nordic region March 2011 CapMan CMD CapMan Buyout Source: unquote European Buyout Review 2011 and Private Equity Barometer Q4 2010, Preliminary quarterly data.

13 Debt-to-EBITDA ratios slightly increasing Equity contribution 60 % 50.6% 50 % 40 % 33.6% 30 % 20 % 10 % 0 % Average equity contributions as of total EV in European buyouts March 2011 CapMan CMD CapMan Buyout * European buyouts (EV<250MEUR) Source: S&P LCD European Leveraged Buyout Review EVCA Buyout Review October 2010

14 Leverage ratios increasing Leverage ratios in small & mid-sized transactions 6,0x 5,6x 5,0x 4,9x 4,7x 4,7x 4,0x 3,0x 4,0x 3,8x 3,6x 3,2x 4,0x 3,5x 2,0x 1,0x 0,0x Debt/EBITDA Senior Debt/EBITDA March 2011 CapMan CMD CapMan Buyout * European buyouts (EV<250MEUR) Source: S&P LCD European Leveraged Buyout Review EVCA Buyout Review October 2010

15 Proactive Nordic deal flow generation Deal flow by source 48 % 52 % CapMan or entrepreneur/management Intermediary* March 2011 CapMan CMD CapMan Buyout * Over 760 Finnish, Swedish or Norwegian investment opportunities analysed by CapMan Buyout between Source through auction, advisor and other private equity investor.

16 Proactive Nordic deal flow generation Deal flow by country 35 % 33 % 32 % Finland Norway Sweden March 2011 CapMan CMD CapMan Buyout Over 760 Finnish, Swedish or Norwegian investment opportunities analysed by CapMan Buyout between Source through auction, advisor and other private equity investor.

17 5 new Buyout investments in 2010 and 2011 Heavy crane & transport Care services Bathroom equipment + 6 add-on investments made by four buyout portfolio companies AV equipment rental and events organiser Pre-fabricated houses March 2011 CapMan CMD CapMan Buyout

18 7 Buyout exits in 2010: 201m, 2.4x, 20.3% + Sale of Norsk Kylling Travel retail Clothing retail Partial exit (IPO) Financial management & payroll services Partial exit from Lumene and Farmos Cosmetics and chemicals Suit producer Medical supplies March 2011 CapMan CMD CapMan Buyout

19 Strong growth in portfolio profitability 40 % 30 % 20 % 10 % 0 % -10 % -20 % Median change in Net Sales and EBITDA* -30 % Net Sales EBITDA March 2011 CapMan CMD CapMan Buyout * Based on 22 out of 27 CapMan Buyout portfolio companies, with 5 excluded due to a holding period of less than 18 months.

20 CapMan Equity VII (2002) Focus on exits Portfolio Exits and partial exits Partially exited March 2011 CapMan CMD CapMan Buyout

21 Portfolio development in CapMan Equity VII 31 December 2010 Net sales development (indexed, aggregate for unrealised investments*) 250 EBITDA development (indexed, aggregate for unrealised investments*) % % Entry 2011E 0 Entry 2011E *7 unrealised investments that have been in CapMan Equity VII funds portfolio over one year. Lumene and Ordyhna have been excluded from the current portfolio due to major part of the business has been divested or shareholding in the company has significantly decreased. Average holding period 4.4 years March 2011 CapMan CMD CapMan Buyout

22 CapMan Buyout VIII (2005) Focus on value creation Portfolio Exits Partially exited March 2011 CapMan CMD CapMan Buyout

23 Portfolio development in CapMan Buyout VIII 31 December 2010 Net sales development (indexed, aggregate for unrealised investments*) 150 EBITDA development (indexed, aggregate for unrealised investments*) % % Entry 2011E 0 Entry 2011E *9 unrealised investments that have been in CapMan Buyout VIII funds portfolio over one year. Curato figures are not available. Average holding period 4.4 years March 2011 CapMan CMD CapMan Buyout

24 CapMan Buyout IX (2008) Focus on value creation Still room for 2-3 new investments Portfolio March 2011 CapMan CMD CapMan Buyout

25 Contents Team development and focus Market and Business Update Case Design-Talo March 2011 CapMan CMD CapMan Buyout

26 Strong growth fundamentals 12,0 10,0 8,0 6,0 4,0 2,0 Turn-key s share of prefabricated detached houses* 30 % 35 % 30 % 25 % 20 % 15 % 10 % 5 % 0, E 0 % Prefabricated houses, '000 Turn-key houses, '000 Turn-key %-share of prefab March 2011 CapMan CMD CapMan Buyout * Turn-key s ( Ready-to-move-in ) share of prefabricated detached houses starts per annum. Source: CapMan analysis.

27 Market leader in turn-key segment Others 35 % Design-Talo 20 % Älvsbytalot 18 % Muurametalot 10 % Kastelli 17 % March 2011 CapMan CMD CapMan Buyout * Market shares in turn-key house starts in units, estimated in June Source: CapMan analysis.

28 Increasing market share 30 % 27 % 28 % 25 % 24 % 23 % 20 % 20 % 20 % 15 % 15 % 15 % 10 % 5 % 0 % Design-Talo %-turn-key market share * Elements delivered from Nivala factory, 2010 figure estimated in June March 2011 CapMan CMD CapMan Buyout

29 Best in class profitability M A 2009A 2010A 2011E 25 % 20 % 15 % 10 % 5 % 0 % Net sales EBITDA %-margin March 2011 CapMan CMD CapMan Buyout

30 Value creation plan Excellent platform for organic growth Upside potentials identified during BDD Leisure homes Additional services Area development Market consolidation March 2011 CapMan CMD CapMan Buyout

31 Way forward Closing on 28 February 2011 Case Team Tuomo Raasio, Markus Sjöholm and Antti Karppinen Management New CEO (Saku Sipola) and interim CFO 100 Days Programme initialized Corporate Governance Final Business plan Action plan Value Creation Committee review within 12 months March 2011 CapMan CMD CapMan Buyout

32 Buyout summary Unique Nordic position Most extensive track record Partnership commitment to continuous performance improvement March 2011 CapMan CMD CapMan Buyout

33 Thank you!