Post on 23-Aug-2020
CapMan Group IR roadshow presentation
New York, 8-11 October 2012
Lennart Simonsen – CEO and Senior Partner
Jerome Bouix – Senior Partner
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.
Contents • CapMan at a glance
• Business environment
• Activity and results January – June
2012
CapMan Group IR roadshow presentation 2 8-11 October 2012
CapMan at a glance
• Unique private equity fund manager listed on Nasdaq
OMX Helsinki (trading symbol: CPMBV)
• Leading player in an attractive market:
• More than 20 years’ experience from Nordic
and Russian private equity
• Strong local presence and market coverage
• Approx. 65 investment professionals
and 40 service professionals in platform
• 58% ownership among partners and LPs
CapMan Group IR roadshow presentation 3 8-11 October 2012
4
Management Company Business Private Equity Fund Management
Fund Investment Business Investments from CapMan’s own balance
sheet into funds under its management
Management Fees Based on the amount of
capital under management
Carried Interest 10-20% of the fund’s cash flow
when the fund is in carry
Return of Fund Investments
CapMan’s attractive earnings model
Fundraising
Exits
Valuation of peers
Currency fluctuations
Portfolio company development
Valuation of other industry
M&A transactions
Preliminary exit negotiations
Exits
Capital returned to
investors + hurdle rate
CapMan Group IR roadshow presentation 8-11 October 2012
External valuations in real estate
Four key investment partnerships
• Nordic mid-market
companies
• Team of 20
investment
professionals in
Helsinki, Stockholm
and Oslo
• Capital under
management
€1.1bn
• Growth financing in
Russian SMEs with
minority positions
• Team of 10
investment
professionals in
Moscow
• Capital under
management
€108m
• Listed Nordic small
and mid cap
companies
• Significant owner
with Board seat
• Team of 4
investment
professionals in
Stockholm
• Capital under
management
€132m
• Commercial and
hotel properties,
and property
development targets
• Team of 20
investment
professionals in
Helsinki and
Stockholm
• Capital under
management
€1.4bn
CapMan
Real Estate
CapMan
Russia
CapMan
Public Market
CapMan
Buyout
CapMan Group IR roadshow presentation 5 8-11 October 2012
Unique presence in Finland, Sweden, Norway and Russia
Active owner and developer of portfolio companies
Active owner of portfolio companies and real estate
CapMan
Buyout
CapMan
Russia
CapMan
Public Market
CapMan
Real Estate
39 portfolio companies and 57 real estate properties
€5.9 billion 41,100 680,000 m²
net sales* personnel lettable area
CapMan Group IR roadshow presentation
* 2011 figures
6 8-11 October 2012
Unique CapMan Purchasing Scheme CaPS drives down
costs in portfolio companies
7
• CaPS has tendered 31 categories in Finland and 7 in Sweden
• Significant cost reductions:
– Savings of over €6m p.a for portfolio companies
– For example €1.3m in annual savings for Tokmanni
• Improved payment terms
• Exceptionally high quality service level for CaPS members
• A dedicated team within CapMan
www.capman.com/caps
8-11 October 2012 CapMan Group IR roadshow presentation
• €6.5bn raised since 1990
• 118* target companies and 88 properties over 22 years
• EBITDA growth of 33% (CAGR) between 2009 and 2011E**
• 77* portfolio company exits (3 x gross) and 28 property exits (2 x
gross)
• Buyout net IRR of 17% over 22 years
Proven track record
* Excluding Technology and Life Science ; ** Buyout only
8-11 October 2012 8 CapMan Group IR roadshow presentation
Fundraising
Investments
Development
Value creation
Demonstrated value creation capability
8-11 October 2012 9 CapMan Group IR roadshow presentation
100
300
0
50
100
150
200
250
300
350
Value at investment Value at exit
Portfolio company investments
100
200
0
50
100
150
200
250
300
350
Value at investment Value at exit
Real estate investments
IRR 55% IRR 32%
Average holding period
5.4 years
Average holding period
1.7 years
*
**
* 77 exits by Buyout, Russia and Public Market funds (equity). Incl. dividends, interest income and sales revenue. Incl. exits made by Norum and by Alliance
ScanEast Fund in Russia. Indexed (time of investment =100).
** 28 exits from CapMan Real Estate I and CapMan Real Estate II funds and 3 exits by NEP Partners. The figures have been calculated for the invested equity
capital (equity and bond) incl. net rental income. Indexed (time of investment =100).
50 %
20 %
11 %
5 %
5 % 5 %
4 %
Pension funds Insurance companies
Funds of funds Banks
Public sector institutions Others
CapMan
Diverse LP base High share of repeat investors
Excellent fundraising capabilities
Based on capital under management as of 31 December 2011
8-11 October 2012 10 CapMan Group IR roadshow presentation
62 %
10 %
14 %
10 % 4 %
6 or more 4-5 2-3 One CapMan
Are
investor
in six or
more
funds
Internal sales & marketing team of four, complemented by
advisors outside the Nordic countries
Major Nordic private equity firms
11
BUYOUT
RUSSIA
CapMan is well-
positioned on all
markets
REAL ESTATE
PUBLIC MARKET
Accendo Capital
Partners Oy
CapMan Group IR roadshow presentation 8-11 October 2012
Organisation
CEO
Management Group
CapMan Platform
* Other CapMan investment areas do not make new investments.
Entrepreneurial investment partnerships*
Sales, Marketing, Investor
Relations and Communications
CapMan Real
Estate
CapMan
Russia
CapMan Public
Market
CapMan
Buyout
Finance, Back Office,
Legal and IT Human Resources
CapMan Group IR roadshow presentation 12 8-11 October 2012
Contents • CapMan at a glance
• Business environment
• Activity and results January – June
2012
CapMan Group IR roadshow presentation 13 8-11 October 2012
Nordic and Russian private equity
market and investment
operations
14 8-11 October 2012 CapMan Group IR roadshow presentation
• Forecast annual GDP growth 2.1–
3.4%*
• Low government debt levels –
budget deficits and debt below UK,
France, Germany
• Healthy banks – high scores in
the EU stress test and minimal
sovereign debt crisis exposure**
• Attractive culture for private
equity investing
• 9,700 medium sized companies
in Finland, Sweden, Norway
• Sweden and Finland in top 4 in
Global Competitiveness
Rankings***
• Sweden, Norway and Finland in
top 4 for reliance on
professional management***
• Multiple paths to superior value
creation, incl. Nordic expansion
through buy and build
Unique Nordic middle market opportunity
* IMF 11/2011 for period 2012–2015. ** European Banking Authority 7/2011. ***World Economic Forum 2011–2012
8-11 October 2012 15 CapMan Group IR roadshow presentation
Attractive business environment Ample investment opportunities
USD 54.8bn in capital under
management over the past 10
years
More than USD 16.4bn available
in dry powder
14% of all European private equity
investments
USD 5bn in total* (0.58% of GDP)
Nordic private equity markets
Sources: EVCA 2011 Annual Report, SVCA, NVCA, Preqin 2011
*Sweden, Norway and Finland
8-11 October 2012 16 CapMan Group IR roadshow presentation
Landscape Nordic private equity investments
in 2011
Activity Capital under management
Healthcare and retail are attractive
sectors
Mature PE market with players
in all Nordic countries
Healthy banks
More than 50 mid-market deals
annually
Consumer spending power
tripled since 2000
WTO membership and
continuation of structural
reforms and deregulation
Healthy sovereign economy
with public debt 9% of GDP
Low levels of (old) housing
with housing debt only 3% of
GDP
Low unemployment and highly
educated population
Retail – Russia is the largest and fastest
growing retail market
Food – Fast food penetration at 10-30%
of European/Western levels
Healthcare – Healthcare spending is
only half of EU levels as a % of GDP
Construction – Massive state
infrastructure programs totaling $80-
100bn
Telecoms – Broadband penetration in
Russia is at year 2000 European levels
and growing very fast
The Russia opportunity
Sources: Eurostat, Rosstat, WHO, AC&M Consulting
8-11 October 2012 17 CapMan Group IR roadshow presentation
Favourable business environment SME Opportunities
Fundraising
18 8-11 October 2012 CapMan Group IR roadshow presentation
0
20
40
60
80
100
120
0
20
40
60
80
100
120
140
160
2006 2007 2008 2009 2010 2011 H1 2012
Commitments Funds (#)
$ Bn Funds (#)
Fundraising remains challenging
Source: The Preqin Quarterly Private Equity Q2, July 2012
Capital commitments to European private equity funds
CapMan Group IR roadshow presentation 19 8-11 October 2012
59
$33.3
bn
Global real estate fundraising falters
Source: Preqin Quarterly, Private Equity Real Estate Q2 2012, July 2012
CapMan Group IR roadshow presentation 20 8-11 October 2012
0
50
100
150
200
250
300
0
20
40
60
80
100
120
140
160
2003 2004 2005 2006 2007 2008 2009 2010 2011 H1 2012
Capital commitments to real estate funds globally
Commitment Funds (#)
Funds (#)
60
$18.3
bn
$ Bn
Investor appetite
49 %
23 %
19 % 16 %
13 % 11 % 10 % 9 % 9 %
49 %
25 %
14 %
22 %
9 %
18 % 15 %
8 % 8 %
0 %
10 %
20 %
30 %
40 %
50 %
60 %
Small to mid-market buyout
Venture Capital
Secondaries funds
Growth Distressed PE
Fund of funds
Large to mega buyout
Other Mezzanine
Areas of the market investors view as presenting the best opportunities
Areas of the market investors are seeking to invest in over the next 12 months
• Small to mid cap buyout remains the most attractive opportunity
Source: Preqin Investor Outlook: Private Equity H2 2012
8-11 October 2012 21 CapMan Group IR roadshow presentation
We commenced fundraising in three key
investment areas in Q1 2012.
We expect first closings by year end
and aim to raise more than €700 million
during the ongoing fundraising round.
22
Active fundraising round ongoing
CapMan Group IR roadshow presentation 8-11 October 2012
Contents • CapMan at a glance
• Business environment
• Activity and results January – June
2012
CapMan Group IR roadshow presentation 23 8-11 October 2012
Breakdown of results 30 June 2012
8-11 October 2012 24 CapMan Group IR roadshow presentation
Management fees Other income
Fair value gains and losses of investments
Financial income and expense
Share of associated companies’ result
Operating costs
Profit before tax
€2.4 million
Operating profit
€1.9 million
0
2
4
6
8
10
12
14
16
18
20
12.4 0.8
3.8 0.2
-0.1 0.6
€ million
Other operating income
-15.4
Management Company profitability
€ million 1-6/2012 1-6/2011
Turnover 13.2 15.7
Management fees 12.4 13.9
Real estate consulting 0.0 1.0
Carried interest 0.0 0.4
Other income 0.8 0.5
Operating expenses -15.2 -17.3
Operating profit / loss -1.7 -0.9
Profit / loss -1.8 -0.5
Management Company
business
Management fees decreased as
expected due to exits
Approx. €1m in carried interest
income reported in August 2012
Operating expenses decreased as
expected from the comparable
period.
Operating expenses included an
impairment loss of €0.5m due to
CapMan’s sale of a 4% stake in
Access Capital Partners Group SA.
CapMan Group IR roadshow presentation 25 8-11 October 2012
Positive result from fund investment business
€ million 1-6/2012 1-6/2011
Fair value gains/losses of
investments 3.8 10.3
Operating profit 3.6 10.1
Profit for the period 3.7 9.4
Fund Investment
business
Increase of above 5% in fair
values between January and June
2012.
Fair value gains are attributable to
the value creation effort and
financial performance of portfolio
companies, and peer group
valuations.
CapMan Group IR roadshow presentation 26 8-11 October 2012
Fund investments and commitments
totalled €97.5 million
0
10
20
30
40
50
60
Buyout, 59% Russia, 5% Public Market, 5%
Real Estate, 7% Other, 17% Access, 7%
Majority of investments and commitments in buyout funds €m
Fund Investment
business
CapMan Group IR roadshow presentation
• Investments in fair value, in total €75.9 million (lower part of the bar)
• Remaining commitments, in total €21.7 million (upper part of the bar)
27 8-11 October 2012
Long-term financing completed
• CapMan signed a refinancing agreement with a Finnish bank
in 2012.
– €30 million in senior debt
– €15 million long-term revolving credit facility
• The arrangement replaces the previous bank loan facility.
• The average maturity of outstanding loans was extended by four
years.
CapMan is committed to maintaining our role as a major investor
also in our new funds, and this refinincing agreement preserves our
operational leeway.
8-11 October 2012 28 CapMan Group IR roadshow presentation
Group Balance Sheet – IFRS
€ thousands 30.6.12
Tangible assets 389
Goodwill 6,204
Other intangible assets 1,774
Investments in associated companies 9,133
Investments at fair value through profit and loss
Investments in funds 75,893
Other financial assets 116
Receivables 19,977
Deferred income tax assets 4,497
Non-current assets 117,983
Trade and other receivables 9,161
Other financial assets at fair value
through profit and loss 373
Cash and bank 3,972
Current assets 13,506
Non-current assets held for sale 3,000
TOTAL ASSETS 134,489
CapMan Group IR roadshow presentation 29 8-11 October 2012
€ thousands 30.6.12
Share capital 772
Share premium account 38,968
Other reserves 38,814
Translation difference 43
Retained earnings 3,673
Capital attributable the Company's equity
holders 82,270
Total equity 82,270
Deferred income tax liabilities 2,421
Interest-bearing loans and borrowings 26,492
Other liabilities 1,185
Non-current liabilities 30,098
Trade and other payables 13,121
Interest-bearing loans and borrowings 9,000
Current income tax liabilities 0
Current liabilities 22,121
Total liabilities 52,291
TOTAL EQUITY AND LIABILITIES 134,489
Management fees are charged in advance twice p.a. on
January 1st and July 1st . Other reserves include hybrid bond of €29.0m.
CapMan guidance – 2012 result
CapMan Group IR roadshow presentation
• CapMan’s next major fundraising rounds will take place in 2012. The development of
the company’s current year management fees will depend on the timing of exits
made from current funds and the size and timing of new funds to be established.
• Our operating expenses will continue to decline as a result of the various efficiency
enhancement measures that have been taken. Due to our fundraising efforts,
management fees will not fully cover operating expenses until the new funds
currently in the process of being established reach an adequate size.
• The fair value of CapMan’s fund investments developed favourably during the
review period. We believe that our portfolio companies are well-positioned to
continue performing well in this respect during the rest of the year, which would
have a positive effect on the fair value development of our fund investments.
• The Group’s overall result for 2012 will mainly depend on whether funds already
generating carried interest are able to conduct new exits, whether new funds will
transfer to carry, and on how the value of investments develops in funds where
CapMan is a substantial investor.
• Due to the difficulty of forecasting these developments and their timing, CapMan will
not issue guidance on its result for the full year.
30 8-11 October 2012
Our core values
High ethics
Dedication
Active ownership
Our vision
By 2020 we are
the best-performing European private
equity firm
CapMan Group IR roadshow presentation 31 8-11 October 2012
IR calendar and IR team
IR calendar 2012 IR team
Q3 Results
1 Nov 2012
Lennart Simonsen, CEO, Senior Partner
Tel. +358 207 207 567
lennart.simonsen@capman.com
Jerome Bouix, Head of Sales, Marketing, Investor
Relations and Communications, Senior Partner
Tel. +358 207 207 558
jerome.bouix@capman.com
Niko Haavisto, CFO
Tel. +358 207 207 583
niko.haavisto@capman.com
Linda Tierala, IR Officer
Tel. +358 20 720 7651
linda.tierala@capman.com
CapMan Group IR roadshow presentation 32 8-11 October 2012