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

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

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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,

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1

05 May 2006

CapMan Plc

Interim Report 1 January – 31 March 2006

5 May 2006 Heikki Westerlund

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SLIDE 2

05 May 2006 2

CapMan – the Nordic private equity house

  • Full Nordic presence and market coverage

– established in 1989 –

  • ffices 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.

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SLIDE 3

05 May 2006 3

Strong growth in assets under management

200 400 600 800 1 000 1 200 1 400 1 600 1 800 2 000 2 200 2 400 9

  • 9

3 9 4 9 5 9 6 9 7 9 8 9 9 1 2 3 4 5 5 / 2 6

Real Estate funds Life Science funds Technology funds Mezzanine funds Buyout funds

Domestic partnership Nordic presence and funds

MBO LISTING Capital under mgmt, M€

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SLIDE 4

05 May 2006 4

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)
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SLIDE 5

05 May 2006 5

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)

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SLIDE 6

05 May 2006 6

Management fees since 1 January, M€

5,3 9,9 14,9 20,3 5,6 5 10 15 20 25 1-3 1-6 1-9 1-12

2005 2006

  • Management fees increased due to

management fees received from CapMan Real Estate I fund and CapMan Buyout VIII fund established in 2005

  • The sum of management fees received

from older funds fell due to the exits that were executed after the comparative period

  • Fundraising still continues for CapMan

Buyout VII and CapMan Life Science IV funds, and management fees from these funds will fully impact turnover when the fundraising will draw to a close

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05 May 2006 7

0,0 5,7 5,7 6,6 2,6 0,0 2,0 4,0 6,0 8,0 1-3 1-6 1-9 1-12

2005 2006

  • The exit from PPTH-Norden had an

impact of €2.2 million (Fenno Fund)

  • The repayment of Finlayson & Co's

mezzanine loans had an impact of

  • approx. €0.3 million (Finnmezzanine II B)
  • The exit from Puulämpö Yhtiöt had an

impact of approx. €0.9 million (Finnventure II and III and Finnmezzanine I, impact on Q2)

Carried interest since 1 January, M€

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05 May 2006 8

Funds generating carried interest

Further information on www.capman.com/En/InvestorRelations/Funds/EquityFunds.

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

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05 May 2006 9

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

9,0 14,6 16,2 20,3 22,9

50,4 56,5 22,1 23,2 30,5 10 20 30 40 50 60 70 80 90 2002 2003 2004 2005 3/2006 M€

Existing investments are mainly made in:

  • CapMan Equity VII, est. 2002
  • Access Capital Fund II, est. 2001
  • Swedestart Tech, est. 2000

The remaining commitments mainly target:

  • CapMan Life Science IV, est. 2006
  • CapMan Buyout VIII, est. 2005
  • CapMan Mezzanine IV, est. 2004
  • CapMan Equity VII, est. 2002
  • Access Capital Fund II, est. 2001
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05 May 2006 10

0,5 0,8 1,0 2,1 2,2 0,0 1,0 2,0 3,0 4,0 5,0 1-3 1-6 1-9 1-12

2005 2006

  • The impact on the Company´s result

totalled €2.2 million – Realised returns €0.0 million (€0.0 million) – Gains in the fair value of investments €2.2 million (€0.5 million)

  • Fair value gains were related in

particular to value creation in CapMan Equity VII and Finnventure V funds

The impact of fund investments made from CapMan´s own balance sheet, M€

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05 May 2006 11

Portfolio of CapMan Equity VII at 31 March 2006

Read more: www.capman.com/En/InvestorRelations/Funds/EquityFunds

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

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05 May 2006 12

Income Statement

0,7 1,3

  • Other income (incl. real estate consulting)

1,1 2,2 0,4

  • 1,8
  • 16,8

0,0

  • 0,3
  • 0,2

17,8 18,7

2003 FAS

7,0 9,4 0,8 0,3 8,4

  • 21,9

0,0 1,6

  • 0,5

6,6 20,3 28,7

2005 IFRS

2,2

  • 0,4
  • Fair value gains

0,0 0,2

  • Income of investments in funds
  • 0,2

0,4

  • Share of associated companies’ result

3,7 5,1 0,1 5,2

  • 6,0

0,0

  • 2,6

5,6 8,9

1-3/2006 IFRS

8,3 5,2 30,6 Profit before taxes

  • 20,0
  • 15,3
  • 9,0

Operating expenses 7,4 4,7 22,1 Operating profit 4,9 0,5 0,0

  • 9,1

17,8 28,1

2004 IFRS 2002 FAS 2001 FAS

€ million

Profit after taxes Financial income and expenses Other income*

Share of associated companies’ result Carried interest Management fees

Turnover 3,4 21,7 0,5 8,5 0,0 18,0 0,6 0,5 3,0 3,9 15,9 8,6 20,0 13,1

* Profit from the sale of Sampo Plc’s shares in 2001.

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05 May 2006 13

Key figures

91 85,8 20,2 14,8 5,3 78,0 0,07 0,64 0,09 0,09

2005 IFRS

79 88,8 18,9 11,1 4,5 94,4 0,06 0,59 0,06 0,06

2004 IFRS

100 87,4 10,6 7,6

  • 0,62

0,05 0,05

3/2006 IFRS

93,6 93,2 97,6 Equity ratio, % 3,7 7,5 18,5 Dividends paid, € 2,3 5,9 50,1 Return on equity, % 78 4,9 327,0 0,05 0,61 0,02 0,02

2003 FAS 2002 FAS 2001 FAS

€ million

Personel (at the end of the year)** Return on investment, % Dividend / result, % Dividend / share, € Shareholders’ equity / share, € Diluted, € Earnings per share, € 73 56 10,3 70,7 222,5 85,2 0,10 0,26 0,71 0,92 0,04 0,32 0,05 0,34

*incl.. Senior Advisors

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05 May 2006 14

Turnover and result before taxes since 1 January, M€

5,5 15,9 21,8 28,7 8,9 0,0 5,0 10,0 15,0 20,0 25,0 30,0 1-3 1-6 1-9 1-12

2005 2006

1,6 7,8 7,8 9,4 5,1 0,0 1,0 2,0 3,0 4,0 5,0 6,0 7,0 8,0 9,0 10,0 1-3 1-6 1-9 1-12

2005 2006

Turnover Result before taxes

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SLIDE 15

05 May 2006 15

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

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05 May 2006 16

Share price development (12 months rolling )

CapMan 2000A/B warrants CapMan B 1,4 1,6 1,8 2,0 2,2 2,4 2,6 2,8 3,0 3,2 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

€

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05 May 2006 17

10 20 30 40 50 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 7

Relative development: CapMan B vs. OMX Helsinki (12 months rolling)

Relative CapMan B Relative OMX Helsinki

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05 May 2006 18

Distribution of ownership at 31 March 2006

49 % 29 % 22 %

Management and employees In nominee register Other owners

44 % 29 % 17 % 5 % 5 %

Corporations Nominee registed and foreign shareholders Households Financial and insurance corporations Non-profit and public sector institutions

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05 May 2006 19

CapMan Plc’s 12 largest shareholders

31 March 2006 6.0 % 2.9 % Novestra Ab* + Peter Buch Lund** 0.6 % 1.1 % Mateus International SARL (Jan Lundahl***) 0.6 % 1.1 % Nordea Life Assurance Finland Ltd 0.8 % 1.5 % Degato International SARL (Lennart Jacobsson***) 0.8 % 1.6 % OP-Suomi Kasvu Mutual Fund 2.0 % 1.6 % Guarneri Oy* + Petri Saavalainen** 1.7 % 3.3 % Finnish State Pension Fund 7.2 % 5.2 % Heiwes Oy* + Heikki Westerlund** 10.8 % 5.7 % Vesasco Oy* (Vesa Vanha-Honko***) 11.4 % 7.0 % Winsome Oy* + Tuomo Raasio** 11.4 % 7.0 % Geldegal Oy* + Olli Liitola** 21.7 % 13.2 % Aristo Invest Oy* + Ari Tolppanen**

Votes % Shares %

* 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 2001. Each A share has 10 votes and each B share has one vote. There are 67,923,348 B shares and 8,000,000 A shares. ** Employed by CapMan. *** CapMan employee who exercises controlling power in the aforementioned company but who does not own CapMan shares directly.

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05 May 2006 20

IR contacts

Heikki Westerlund, CEO, Senior Partner

  • tel. +358 9 6155 8304

heikki.westerlund@capman.com Jerome Bouix, Partner, Fundraising, IR & Communications

  • tel. +358 9 6155 8358

jerome.bouix@capman.com Mari Reponen, Communications Manager

  • tel. +358 9 6155 8322

mari.reponen@capman.com