CAPM AN PLC 1-12 2018 CapMan 2018 Results Significant strategic projects were completed J o a k i m F r i m o d i g , C E O H e l s i n k i , 3 1 J a n u a r y 2 0 1 9
Statements regarding future development and disclaimer The following concerns this document, the related oral presentation by either CapMan Forward-looking statements are based on the Company's current expectations, Plc (hereinafter the "Company") or a representative of the Company as well as the estimates, decisions and plans as well as on the currently available facts regarding, subsequent Q&A sessions. among others, the Company's financial standing, results of operations, plans, objectives, future results and operations. Such statements involve inherent risks and This document published by the Company constitutes the written material of the uncertainties that, if materialized, may cause the actual results of operations of the presentation for potential investors regarding the possible offering of the Company's combined group to be materially different than currently expected. securities ("Securities"). The material set forth herein is not, and should not be construed as an offer to sell or a solicitation of an offer to subscribe or purchase any These factors include the overall economic conditions, including currency and interest Securities, or a part of such offer. Nothing in this material shall form the basis of any rate fluctuations impacting the operating environment and profitability of clients and contract and nothing in this should be relied upon in connection with any contract or thereby the orders and margins on them received by the combined group; competition; commitment, and nothing in this constitutes a recommendation regarding the the combined group's business conditions and continuous development and Securities. The decision to purchase Securities should be made only on the basis of the improvement thereof; and the success of possible future acquisitions. Forward-looking offer document (or similar document) that has been prepared in connection with the statements are further based on numerous assumptions concerning the Company's offering of the Securities. The offer document (or similar document) contains more current and future strategy and the Company's future business environment. detailed information concerning the Company and the Securities than set forth in this No liability is accepted and no explicit or implicit guarantee or warranty is given with material, and potential investors should re-view the offer document (or similar regard to this material, and no undue reliance should be placed on the truthfulness, document) to conduct an independent research and evaluation of the Company's accuracy or completeness of the material or the opinions expressed herein. Portions of business, financial standing and nature of the Securities before making an investment this material are in draft form. The information contained in this material has not been decision regarding the Securities. independently verified nor will it be updated. The information contained in this material, Certain statements presented that are not historical facts, including, among others, including forward-looking statements, applies only on the date of this material and is estimates of the overall economic development and the market situation, expectations not intended to be a guarantee of the future results. Any unsourced market data used in concerning the growth and profitability of the combined group, the realisation of the material is an estimate made by the Company and has not been independently synergy benefits and cost savings, as well as statements that contain the expressions verified. The Company does not undertake to update any forward-looking statements "expects”, “estimates”, “forecasts”, “aims”, “believes”, “pursues”, “intends”, “could”, except in circumstances specified by law and explicitly waives any liability for the “anticipates” “plans”, “seeks”, “will”, “may”, “likely”, and “would” and other material. corresponding expressions or their negative variations identify forward-looking statements. 2 3 1 - J a n - 1 9
Significant projects completed in recent months Infra fund at €140m Expansion of BVK Acqusition of mandate to New infra mandate majority of JAM Fundraising €820m Advisors continues as planned New service business with • significant growth potential Currently >€3 million sales AUM growth >€400m • Strengthened access to • Annual fee income growth >€4m (in full as of 1/2019) local tier II and III investors 3 3 1 - J a n - 1 9
Completed projects as part of CapMan’s strategy Own balance sheet Broad access NORDIC TIER II & III to capital INTERNATIONAL NORDIC TIER I INVESTORS INVESTORS INVESTORS JAM Advisors New & flexible MANDATES, CLUBS, SERVICES OPEN-ENDED FUNDS CLOSED FUNDS products OTHERS PRIVATE EQUITY REAL ESTATE CAPS INFRA & CREDIT Broad offering in the private Value added Infra fund Buyout funds SCALA (NRE funds) assets space Yield Growth fund Mandates (NPI & Hotel funds) Active value JAM creation Credit funds Mandate X-Ray & reporting Other funds 4 3 1 - J a n - 1 9
Growth strategy progressing according to plan 2019 Infra fundraising • continues as planned 2018 Second infra mandate • completed Acquisition of • 2017 majority of JAM Infra fund established • Advisors First Infra mandate • CapMan Nordic Real • Buyout fundraising • completed Estate II fund established started CapMan Nordic Property • BVK mandate • Service business • Income fund established expansion completed strong growth Growth Equity business • Service business • continues area & fund established strong growth New investment • Infra business area • continued products & new established sources of capital Service business strong • explored growth 5 3 1 - J a n - 1 9
Highlights for 2018 Growth in fee-based Return on fund investments Growth in fees profitability +10% 22% 108% 20 Capital raised since Dividend proposal new investments and October €0.12/share 15 +€400m exits 6 3 1 - J a n - 1 9
Strong development of fees and fee based profitability Fees (excluding carry), LTM Comparable operating profitability MEUR MEUR excluding carry (LTM) 33 7 32 6 31 30 5 +MEUR 6 2018 2018 +22% 29 4 28 3 27 2 26 1 25 24 0 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Fees include management fees and service fees on group level. Operating profit includes Management Company and Service Business without carried interest. 7 3 1 - J a n - 1 9
The strategic direction impacts the earnings model Towards more stability and predictability CapMan historically CapMan today CapMan in the future – long-term objective ROE 20% Carry (Objective for average ROE) Balance sheet return Carry Balance sheet return Fee profit Carry Carry Fee profit Time Time Time Illustrative data 8 3 1 - J a n - 1 9
Business portfolio complemented with new products CapMan’s long-term focus areas… Traditional High New in last 15 months Growth Strategic plan …to be complemented with new products and services Buyout New Private NRE Equity Long term value products upside Hotels New Infra products Infra NPI New Real fund New Estate Credit products Scala Nest products New services CaPS Infra Infra managed JAM BVK managed account I Advisors Moderate account II Low High Short-term profitability Illustrative data 9 3 1 - J a n - 1 9
Turnover and operating profit Turnover Operating profit MEUR MEUR 40 25 22,9 36,0 34,8 35 19,5 20 30 17,8 27,1 26,0 14,9 25 15 19,9 12,0 20 10,5 16,6 10,1 10 15 8,5 10 7,5 4,1 5 5 0 0 1-3 1-6 1-9 1-12 1-3 1-6 1-9 1-12 2017 2018 2017 2018 1 0 3 1 - J a n - 1 9
Result developments in Q4 2018 MEUR 20 18 1,7 16 1,0 5,7 14 12 10 8 14,9 6 12,0 4 2 0 Changes in FV 1-9 2018 Profit (ex. changes in Profit Changes in FV (ex. Changes in trading 1-12 2018 (ex. trading portfolio) (ex. changes in FV) FV) trading portfolio) portfolio FV 1 1 3 1 - J a n - 1 9
Impact of market turbulence in Q4 2018 CapMan share price and OMX Helsinki development Oct-18 to Jan-19 • Trading portfolio -9% or -€5.7 million FV 105,00 change in Q4 (vs. e.g. -15% for HEX) CapMan Plc • Trading portfolio sold down by €35 million 100,00 in 2018, of which €21 million in Q1-Q3 2018 and €14 million in Q4. 95,00 • Trading portfolio is not part of CapMan’s core operations and therefore sell-down to 90,00 continue in 2019 -15% in Q4 • Own fund investments developed positively 85,00 in 2018 at +10% OMX Helsinki 80,00 01/10/2018 01/11/2018 01/12/2018 01/01/2019 1 2 3 1 - J a n - 1 9
Investment allocation 31 December 2018 Investments in Total private markets €182m 49% of total 54,5 80,6 Fair value developments Outstanding in 2018: commitments €98m 31 Dec 2018 (vs. €67m a 39,0 Fund investments +10% year ago) will shift 8,2 Trading portfolio -3% allocation towards private market instruments Fund investments Other investments Trading portfolio Cash & bank 1 3 3 1 - J a n - 1 9
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