CapMan Plc Interim Report 1 January 31 March 2006 5 May 2006 - PowerPoint PPT Presentation

CapMan Plc Interim Report 1 January – 31 March 2006 5 May 2006 Heikki Westerlund 1 05 May 2006

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. €2.3 billion – in addition assets managed/advised by Access Capital Partners approx. €1.1 billion* * CapMan owns 47.5% of affiliated company Access Capital Partners. 05 May 2006 2

Strong growth in assets under management Nordic presence Capital under Domestic partnership and funds mgmt, M€ MBO LISTING 2 400 2 200 Real Estate funds 2 000 Life Science funds 1 800 Technology funds 1 600 Mezzanine funds 1 400 Buyout funds 1 200 1 000 800 600 400 200 0 6 3 4 5 6 7 8 9 0 1 2 3 4 5 0 9 9 9 9 9 9 9 0 0 0 0 0 0 0 - 0 2 9 / 5 0 05 May 2006 3

Turnover and result development • Capital under management €2,245.3 million (€1,376.1 million 31 May 2005) • Turnover €8.9 million (€5.5 million) • Management fees €5.6 million (€5.3 million) • Carried interest income €2.6 million (€0.0 million) • Other operating income within turnover €0.7 million (€0.2 million) – Real estate consulting €0.5 million • The impact of fund investments made from CapMan´s balance sheet €2.2 million (€0.5 million) – Gained in the fair value of investments • Profit €5.2 million (€1.5 million) • Profit before taxes €5.1 million (€1.6 million) • Profit after taxes €3.7 million (€1.3 million) 05 May 2006 4

Key events in 2006 • Fundraising – CapMan Life Science IV´s first closing at €45 million (Q1) – CapMan Buyout VIII interim closing at €400 million (Q2) • Investments – 42Networks (Q1) – Tokmanni (add-on investment, Q1) – Tietäjäntie 2 ja Strömbergintie 1 (closing of deals agreed in June 2005, Q1) – MQ Sweden (Q2) – Erottajankatu 15–17 (Q2) • Exits – PPTH-Norden (Q1) – Finlayson & Co, mezzanine loans (Q1) – Puulämpö Yhtiöt (Q2) – Mehiläinen (Q2) – AtBusiness Communications (Q2) – Modultek (Q2) – ProstaLund (Q2) 05 May 2006 5

Management fees since 1 January, M€ 25 • Management fees increased due to management fees received from 20,3 CapMan Real Estate I fund and 20 CapMan Buyout VIII fund established in 2005 14,9 • The sum of management fees received 15 from older funds fell due to the exits that were executed after the 9,9 comparative period 10 • Fundraising still continues for CapMan Buyout VII and CapMan Life Science IV 5,6 5,3 funds, and management fees from 5 these funds will fully impact turnover when the fundraising will draw to a close 0 1-3 1-6 1-9 1-12 2005 2006 05 May 2006 6

Carried interest since 1 January, M€ 8,0 • The exit from PPTH-Norden had an impact of €2.2 million (Fenno Fund) 6,6 • The repayment of Finlayson & Co's 5,7 5,7 6,0 mezzanine loans had an impact of approx. €0.3 million (Finnmezzanine II B) • The exit from Puulämpö Yhtiöt had an 4,0 impact of approx. €0.9 million (Finnventure II and III and 2,6 Finnmezzanine I, impact on Q2) 2,0 0,0 0,0 1-3 1-6 1-9 1-12 2005 2006 05 May 2006 7

Funds generating carried interest Cumulative size: €149.0 million Cumulative portfolio at cost: €43.0 million Cumulative portfolio at fair value: €47.8 million Cumulative cash flow to investors: €323.1 million Cumulative carried interest to CapMan: €49.4 million (figures as per 31 March 2006) Buyouts Technology investments FV II FV III + III G ABNP (sub fund) Fenno Fund Fenno/ Skandia I Fenno/ Skandia II FM I FM II B Further information on www.capman.com/En/InvestorRelations/Funds/EquityFunds. 05 May 2006 8

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€ 90 The remaining commitments 80 56,5 mainly target: 70 - CapMan Life Science IV, est. 2006 50,4 - CapMan Buyout VIII, est. 2005 60 - CapMan Mezzanine IV, est. 2004 - CapMan Equity VII, est. 2002 50 - Access Capital Fund II, est. 2001 40 30,5 Existing investments are 23,2 22,1 30 mainly made in: - CapMan Equity VII, est. 2002 20 - Access Capital Fund II, est. 2001 22,9 - Swedestart Tech, est. 2000 10 20,3 16,2 14,6 9,0 0 2002 2003 2004 2005 3/2006 05 May 2006 9

The impact of fund investments made from CapMan´s own balance sheet, M€ • The impact on the Company´s result 5,0 totalled €2.2 million – Realised returns €0.0 million (€0.0 4,0 million) – Gains in the fair value of investments €2.2 million (€0.5 3,0 million) 2,2 2,1 • Fair value gains were related in 2,0 particular to value creation in CapMan Equity VII and Finnventure V funds 1,0 0,8 1,0 0,5 0,0 1-3 1-6 1-9 1-12 2005 2006 05 May 2006 10

Portfolio of CapMan Equity VII at 31 March 2006 Fund size: €303.0 million Portfolio at cost: €180.9 million Portfolio at fair value: €236.4 million Cash flow to investors : €24.8 million (at 31 May 2006) Buyout investments Technology investments Read more: www.capman.com/En/InvestorRelations/Funds/EquityFunds 05 May 2006 11

Income Statement 2001 2002 2003 2004 2005 1-3/2006 € million FAS FAS FAS IFRS IFRS IFRS Turnover 13,1 20,0 18,7 28,1 28,7 8,9 8,6 15,9 17,8 17,8 20,3 5,6 Management fees 3,9 3,0 0,2 9,1 6,6 2,6 Carried interest Income of investments in funds - - - 0,2 0,5 0,0 Other income (incl. real estate consulting) - - - - 1,3 0,7 Share of associated companies’ result 0,5 0,6 0,3 - - - - - - -0,4 1,6 2,2 Fair value gains Other income* 18,0 0,0 0,0 0,0 0,0 0,0 Operating expenses -9,0 -15,3 -16,8 -20,0 -21,9 -6,0 Operating profit 22,1 4,7 1,8 7,4 8,4 5,2 Share of associated companies’ result - - - 0,4 0,3 -0,2 Financial income and expenses 8,5 0,5 0,4 0,5 0,8 0,1 Profit before taxes 30,6 5,2 2,2 8,3 9,4 5,1 Profit after taxes 21,7 3,4 1,1 4,9 7,0 3,7 * Profit from the sale of Sampo Plc’s shares in 2001. 05 May 2006 12

Key figures € million 2001 2002 2003 2004 2005 3/2006 FAS FAS FAS IFRS IFRS IFRS Earnings per share, € 0,34 0,05 0,02 0,06 0,09 0,05 Diluted, € 0,32 0,04 0,02 0,06 0,09 0,05 Shareholders’ equity / share, € 0,92 0,71 0,61 0,59 0,64 0,62 Dividend / share, € 0,26 0,10 0,05 0,06 0,07 - Dividend / result, % 85,2 222,5 327,0 94,4 78,0 - Dividends paid, € 18,5 7,5 3,7 4,5 5,3 - Return on equity, % 50,1 5,9 2,3 11,1 14,8 7,6 Return on investment, % 70,7 10,3 4,9 18,9 20,2 10,6 Equity ratio, % 97,6 93,2 93,6 88,8 85,8 87,4 Personel (at the end of the year)** 56 73 78 79 91 100 *incl.. Senior Advisors 05 May 2006 13

Turnover and result before taxes since 1 January, M€ Turnover Result before taxes 28,7 10,0 30,0 9,4 9,0 25,0 7,8 7,8 8,0 21,8 7,0 20,0 6,0 15,9 5,1 15,0 5,0 4,0 8,9 10,0 3,0 5,5 1,6 2,0 5,0 1,0 0,0 0,0 1-3 1-6 1-9 1-12 1-3 1-6 1-9 1-12 2005 2006 2005 2006 05 May 2006 14

Future outlook • Management fees and returns from real estate consulting activities are expected to cover the Company’s expenses in 2006 • The share from the associated companies result is estimated to remain at the same level as the previous • The amount of returns on fund investments will depend especially on how the fair value of investments develops in those funds in which CapMan is a substantial investor • In order to improve the return on equity CapMan will increasingly finance these investments by using external capital • The exits markets are expected to remain favourable • Finnventure V and Finnventure IV funds are estimated to begin generate carried interest during 2007 • CapMan’s profit before taxes for the full year 2006 will highly depend on whether exits are made from portfolio companies owned by funds already generating carried interest, and the possible transfer of new funds to carry • The funds making direct investments in portfolio companies have several exit discussions underway 05 May 2006 15

Share price development (12 months rolling ) € 3,2 3,0 CapMan B 2,8 2,6 2,4 CapMan 2,2 2000A/B warrants 2,0 1,8 1,6 1,4 02.05.05 02.06.05 02.07.05 02.08.05 02.09.05 02.10.05 02.11.05 02.12.05 02.01.06 02.02.06 02.03.06 02.04.06 02.05.06 05 May 2006 16

Relative development: CapMan B vs. OMX Helsinki (12 months rolling) 50 Relative OMX Helsinki 40 30 Relative CapMan B 20 7 10 0 03.05.05 03.06.05 03.07.05 03.08.05 03.09.05 03.10.05 03.11.05 03.12.05 03.01.06 03.02.06 03.03.06 03.04.06 03.05.06 05 May 2006 17

Distribution of ownership at 31 March 2006 5 % 5 % 22 % 17 % 44 % 49 % 29 % 29 % Management and employees Corporations In nominee register Nominee registed and foreign shareholders Other owners Households Financial and insurance corporations Non-profit and public sector institutions 05 May 2006 18