CapMan Plc 1–9/2018 result CapMan’s growth continues Joakim Frimodig, CEO Helsinki, 1 November 2018
Statements regarding future development and disclaimer statements. Forward-looking statements are based on the Company's current The following concerns this document, the related oral presentation by either expectations, estimates, decisions and plans as well as on the currently available CapMan Plc (hereinafter the "Company") or a representative of the Company as facts regarding, among others, the Company's financial standing, results of well as the subsequent Q&A sessions. operations, plans, objectives, future results and operations. Such statements This document published by the Company constitutes the written material of the involve inherent risks and uncertainties that, if materialized, may cause the actual presentation for potential investors regarding the possible offering of the results of operations of the combined group to be materially different than Company's securities ("Securities"). The material set forth herein is not, and currently expected. should not be construed as an offer to sell or a solicitation of an offer to subscribe These factors include the overall economic conditions, including currency and or purchase any Securities, or a part of such offer. Nothing in this material shall form the basis of any contract and nothing in this should be relied upon in interest rate fluctuations impacting the operating environment and profitability of connection with any contract or commitment, and nothing in this constitutes a clients and thereby the orders and margins on them received by the combined group; competition; the combined group's business conditions and continuous recommendation regarding the Securities. The decision to purchase Securities development and improvement thereof; and the success of possible future should be made only on the basis of the offer document (or similar document) acquisitions. Forward-looking statements are further based on numerous that has been prepared in connection with the offering of the Securities. The offer document (or similar document) contains more detailed information concerning assumptions concerning the Company's current and future strategy and the the Company and the Securities than set forth in this material, and potential Company's future business environment. investors should re-view the offer document (or similar document) to conduct an No liability is accepted and no explicit or implicit guarantee or warranty is given independent research and evaluation of the Company's business, financial with regard to this material, and no undue reliance should be placed on the standing and nature of the Securities before making an investment decision truthfulness, accuracy or completeness of the material or the opinions expressed regarding the Securities. herein. Portions of this material are in draft form. The information contained in Certain statements presented that are not historical facts, including, among this material has not been independently verified nor will it be updated. The information contained in this material, including forward-looking statements, others, estimates of the overall economic development and the market situation, applies only on the date of this material and is not intended to be a guarantee of expectations concerning the growth and profitability of the combined group, the the future results. Any unsourced market data used in the material is an estimate realisation of synergy benefits and cost savings, as well as statements that contain the expressions "expects”, “estimates”, “forecasts”, “aims”, “believes”, made by the Company and has not been independently verified. The Company “pursues”, “intends”, “could”, “anticipates” “plans”, “seeks”, “will”, “may”, “likely”, does not undertake to update any forward-looking statements except in circumstances specified by law and explicitly waives any liability for the material . and “would” and other corresponding expressions or their negative variations identify forward-looking 2 CapMan Plc 1-9/2018 result 1 Nov 2018
We are building a modern and growth-oriented ”New doers” ”New direction” ”New attitude” Renewed management and Clarified vision and new New ways of working and strengthened investment strategic direction company culture teams 3 CapMan Plc 1-9/2018 result 1 Nov 2018
Value Builder Building sustainable value for the enrichment of society Our objective is to offer attractive returns and innovative solutions to investors 4
CapMan today Sijoitustoiminta Investments from our Service business omasta taseesta own balance sheet Management Company business AUM EUR 2.8 bn 110 portfolio Investment capital companies and >MEUR 200 real estate assets >120 LPs as customers 5 CapMan Plc 1-9/2018 result 1 Nov 2018
Agenda • Strategy and financial objectives • Growth initiatives and value creation • 1-9/2018 result
CapMan’s strategic direction Own balance sheet Broad access to capital INTERNATIONAL NORDIC LOCAL INVESTORS INVESTORS INVESTORS Flexible OPEN-ENDED MANDATES, SERVICES CLOSED FUNDS FUNDS CLUBS, OTHERS products PRIVATE EQUITY & REAL ESTATE INFRA CAPS CREDIT Value added (NRE Buyout funds Infra fund Active value funds) SCALA Yield (NPI & Hotel creation Growth fund Infra Mandates funds) Russia funds Mandates (BVK) Credit funds 7 CapMan Plc 1-9/2018 result 1 Nov 2018
We are building CapMan into a leading Nordic private asset manager Increasingly flexible Active approach to Expanding investor and diverse value-creation base investment products
Alternative investments interest: Institutional investor plans for the coming 12 months Invest LESS capital than in the past 12 months Invest MORE capital than in the past 12 months 14% Private Equity 29% 17% 30% Real Estate 43% 8% Infrastructure 14% 31% Private Debt 30% 13% Natural Resources 16% 19% Hedge Funds Source: Preqin Investor Update Alternative Assets H2 2018 9 CapMan Plc 1-9/2018 result 1 Nov 2018
Agenda • Strategy and financial objectives • Growth initiatives and value creation • 1-9/2018 result
CapMan’s earnings model Management Company Services business Investment business business Buyout Fund investments Procurement Fund advisory services Growth Market portfolio Russia Fees Realised returns and Credit changes in fair value Real Estate Infra Fees (incl. management fees and performance fees) Carried interest income 11 CapMan Plc 1-9/2018 result 1 Nov 2018
The strategic direction impacts the earnings model: More stability and predictability CapMan historically CapMan today CapMan in the future – long- term objective Carry ROE 20% (Objective for average ROE) Balance sheet return Carry Balance sheet return Fees Carry Carry Fees Time Time Time Illustrative, guidance for 2018 is provided on slide 32 12 CapMan Plc 1-9/2018 result 1 Nov 2018
Current business portfolio complemented with new products Higher fee income, more stability, reduced market risk CapMan’s long-term focus areas… Traditional High Launched in 2017-2018 Growth …to be complemented with new products and services Buyout NRE New Private Equity Long term value products upside Infra NPI New Infra fund products New Real Estate products Scala Nest New services Infra managed Caps accounts BVK Moderate Low Short-term profitability High 13 CapMan Plc 1-9/2018 result 1 Nov 2018
Growth strategy progress Target >10% 2018 annual The effect of year 2017 growth growth investments 2017 Additional investments: Significant investments in to growth: • Infra fund first close, fundraising Real Estate • CMNRE II fund establishment continues • Preparations for next Buyout fund • CMNPI fund establishment • BVK mandate increase • Mandates • Strong growth of Service business • Growth Equity fund establishment • Infra business area establishment • New products and services • Service business strong growth • Strengthening distribution channels 14 CapMan Plc 1-9/2018 result 1 Nov 2018
CapMan establishes infrastructure fund CapMan Nordic Infrastructure I >MEUR 300 MEUR 115 10/2018 2019 The fund invests especially in core/core+ infrastructure in the energy, transportation and CapMan Infra Managing Partner telecommunications sectors Ville Poukka nominated to the Management Group as of 1 November 2018 CapMan’s commitment to the fund is MEUR 30 million 15 CapMan Plc 1-9/2018 result 1 Nov 2018
Growth efforts continue Key near term growth projects Fundraising of Infra New Buyout fund Mandates fund • Launching fundraising in 2018 • New, tailor-made mandates for • First close, fundraising limited investor groups proceeding well • MEUR 500 BVK mandate and • Target size of the fund is above MEUR 70 investment in Elenia MEUR 300 (2019) are examples Growth of Service Strengthening the New products business distribution • Strengthening CapMan’s • Launching new investment • Continuing the strong growth of products current services distribution channels organically • Renewal of current products • Developing new services • Potential distribution partnerships 16 CapMan Plc 1-9/2018 result 1 Nov 2018
Agenda • Strategy and financial objectives • Growth initiatives and value creation • 1-9/2018 result
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