CapMan Oyj

Quarterly Report • May 9, 2025

1–3 | 2025 Interim Report

Solid start to the year

J

CapMan Plc | 9 May 2025

CapMan Plc 1–3 2025 Interim Report

Results 1–3 2025, continuing operations

• Assets under management EUR 6.4 billion 31 March 2025 (EUR 6.1 billion 31 December 2024)
• Group revenue was MEUR 13.0 1 January–31 March 2025 (MEUR 15.6 1 January–31 March 2024)
• Fee income was MEUR 13.0 (MEUR 12.0)
• Carried interest was MEUR –0.0 (MEUR 3.5)
• Operating profit was MEUR 6.9 (MEUR 5.6) and comparable operating profit was MEUR 7.2 (MEUR 6.9)
• Fee profit was MEUR 1.5 (MEUR 1.0)
• Fee profit before group costs was MEUR 2.2 (MEUR 1.9)
• Diluted earnings per share were 2.3 cents (0.8 cents) and comparable diluted earnings per share were 2.5 cents (1.5 cents)

Significant events

• In March, CapMan Real Estate fund CapMan Hotels II closed the acquisition of Midstar Fastigheter AB's hotel portfolio, growing CapMan's assets under management by EUR 0.4 billion

Key figures

CEO's comment

CapMan has had an excellent start to the year. Fee income grew 8% and continued scale benefits supported a fee profit growth of 46%. At the end of March, we closed one of the largest transactions of its kind, as CapMan Hotels II fund acquired Midstar Fastigheter AB's hotel portfolio. The transaction doubled the size of the fund and grew CapMan's assets under management with EUR 400 million. CapMan's total assets under management at the end of the first quarter stood at EUR 6.4 billion, an increase of 6% from the beginning of the year.

In our Capital Markets Day on 11 March 2025, we re-iterated our growth objective to reach EUR 10 billion assets under management during the strategy period. With the structural moves we have completed, including the establishment of Natural Capital, strong organic growth of Infra and Real Estate, and divestment of service businesses, CapMan is positioned for profitable growth.

The increased geopolitical turmoil and tariffs have limited direct impact on CapMan's fee generating business, which is based on fee income from long-term predictable agreements. However, the increased uncertainty is likely to prolong fundraising processes.

The year has started with strong activity

Real Estate has completed several transactions with Nordic Real Estate III fund making two new investments and the Hotels II fund's transformative acquisition of Midstar Fastigheter. The Midstar portfolio consists of 28 hotel properties, making the fund a leading private Nordic hotel platform. The properties are located in major metropolitan areas such as Copenhagen, Stockholm, Gothenburg, and Oslo in addition to regional hotels in prime locations.

CapMan's DNA of active value creation is a strategic advantage especially in turbulent economic times. By working closely with our assets, we actively enhance value, adopt to changing external requirements and work to future-proof the assets. During the first quarter several refurbishment projects have been announced within Real Estate and for the Midstar portfolio, value creation work has already started, aiming to reduce operating expenses and emissions, and create positive social impact.

Within private equity we increased the share of portfolio companies with Science-Based Target emission reduction plans in place to 17%, as Hydroware and Netox had their targets validated.

Fundraising in flagship funds ongoing

CapMan Wealth's annual Investment Partners program held its final close for the fourth fund in March, at a record USD 120 million. Since the inception in 2021 the program has raised in total some USD 330 million.

Fundraising for the flagship funds Nordic Real Estate IV and European Forest Fund IV are ongoing, and both funds are seeking to significantly increase fund size compared to earlier vintages. Investor response to both funds is positive, but with the increased geopolitical uncertainty investors are postponing decision making, which pushes the target for first closes to the latter part of the year. Market turmoil also creates opportunities. CapMan has a strong balance sheet and strong solidity, and in addition to scaling existing products, we continue to explore growth by introducing new products, as well as, evaluating selected acquisitions.

Pia Kåll

CEO, CapMan Plc

Market environment

At the beginning of the year the private market outlook was cautiously positive, with expectations for the transaction and fundraising market turning positive after three years of lower activity. Over the past month, the sentiment has changed with increased uncertainty from geopolitical turmoil, tariff regimes, and looming trade wars.

Short-term the increased uncertainty is slowing down decision making, with both transaction activity and fundraising environment thus likely to be more subdued than earlier expected.

Mid-term impacts on capital flows are less obvious and depend on how long the economic uncertainty prevails. Private markets offer an attractive portfolio diversification, with valuations based on fundamentals of the underlying assets creating more stable value development. The drawback is the low liquidity. Fast declining public markets can also skew the ratio between public and private allocations, restricting new commitments for some investors.

With the geopolitical turmoil investors are re-evaluating the geographical focus of their portfolios. The Nordics' stable political environment and track record of strong private asset returns, makes the region well positioned to continue to attract capital from European, North American and Asian institutional investors alike.

In the long-term, private asset markets are expected to continue solid growth. A challenging macroeconomic environment creates attractive investment opportunities, and historically the best fund vintages have been deployed in turbulent times. Looking back private markets have consistently outperformed the public markets in both bull and bear markets. With an increasing share of assets being developed longer in private ownership, and a growing amount of investors accessing private markets, the role of the asset class in the economy is posed to grow.

Highlights of active value creation in portfolio

Transforming a logistics centre into special purpose public-use

CapMan Real Estate has transformed KOY Mastolan Keskusvarasto in Vantaa, Finland, from a 100% logistics centre to a temperature- and humidity-controlled public-use asset. The property now serves a societally significant purpose, used mainly for research, conservation and storage by The Finnish Heritage Agency. The conversion project implemented EU Taxonomy aligned building practices, resulting in both improved sustainability and increased financial value. Energy costs were lowered by installing a194 kWp solar power system with an estimated annual production of 155,000 kWh representing 6–7% of the property's annual energy use and by improving energy efficiency. The energy efficiency rating was upgraded to class B and the property received BREEAM In-Use certification at level Excellent. The asset is owned by the Kokoelmakeskus Ky fund.

Establishing new conservation areas as part of sustainable forest management

CapMan Natural Capital's Davvi Metsä Oy recently established over 160 hectares of new nature conservation areas in Finnish Lapland. This includes the 100-hectare Ruopsanaava area, accepted into the Helmi habitats programme aiming to strengthen Finland's biodiversity, led by the Ministry of the Environment. These conservation efforts are part of sustainable forest management, that combine sustainability and financial performance. The efforts improve biodiversity through prohibition of forestry activities and create social well-being by still allowing hiking and outdoor activities in the area. At the same time the conservation areas contribute to the FSC® criteria of Davvi Metsä Oy, ensuring demand and competitive prices for the timber. Davvi Metsä Oy is owned by Dasos Timberland Fund II SICAV SIF.

CapMan Plc 1–3 2025 Interim Report

Group revenue and result in 1–3 2025

Table 1: Group revenue and result in 1–3 2025

€ ('000)	1-3/2025	1-3/2024 restated*	Change
Continuing operations:
Fee income	13,025	12,042	8 %
Carried interest	-41	3,522	n/a
Revenue	12,983	15,564	-17 %
Operating expenses	-11,858	-12,287	-3 %
Fair value changes	5,747	2,338	146 %
Operating profit	6,873	5,616	22 %
Items impacting comparability	345	1,282	-73 %
Comparable operating expenses	-11,513	-11,004	5 %
Comparable operating profit	7,218	6,898	5 %
Less:
Carried interest	41	-3,522	-101 %
Fair value changes of investments	-5,747	-2,338	146 %
Fee profit	1,512	1,037	46 %
Less:
Group costs	712	838	-15 %
Fee profit before group costs	2,223	1,875	19 %
Earnings per share from continuing operations, diluted, cents	2.3	0.8	188 %
Comparable earnings per share from continuing operations, diluted, cents	2.5	1.5	67 %

*In the Consolidated Financial Statements for 2024, CapMan classified CaPS business as a discontinued operation in the income statement and restated the comparison periods' figures accordingly.

CapMan Group's revenue totalled MEUR 13.0 in the period spanning 1 January–31 March 2025 (1 January–31 March 2024: MEUR 15.6), down 17% from the comparison period. While the Fee Income increased 8% year-on-year, no material Carried Interest was realised during the period.

Operating expenses were MEUR 11.9 (MEUR 12.3) with the main items being:

• Personnel expenses MEUR 8.6 (MEUR 8.0)
• Depreciations and amortisations MEUR 0.7 (MEUR 0.4)

• Other operating expenses MEUR 2.6 (MEUR 3.8).

Comparable operating expenses were 5% above the comparison period at MEUR 11.5 (MEUR 11.0).

Fair value changes of investments were MEUR 5.7 (MEUR 2.3), corresponding to a fair value increase of 3.3% (1.5%) per annum. Investments into funds managed by CapMan developed on average positively contributing MEUR 5.4 (MEUR 1.5), corresponding to a 3.9% (1.3%) change in fair value. Investments into external funds also developed positively with fair value changes of MEUR 0.4 (MEUR 0.9), corresponding to a change of 1.0% (1.7%).

On 31 March 2025 the fair value of CapMan's fund investments stood at MEUR 184.4 (MEUR 162.8). Of the total, MEUR 144.8 (MEUR 111.2) is invested into funds managed by CapMan and MEUR 39.6 (MEUR 51.6) is invested into external funds. The year-on-year decrease in the value of external fund investments is mainly due to a secondary transaction completed in December 2024. New external fund investments are currently not planned and thereby the share of external fund investments and their impact on Group level fair value changes will decrease over time.

Investments in portfolio companies are valued at fair value in accordance with the International Private Equity and Venture Capital Valuation Guidelines (IPEVG). Investments in real estate and natural capital are valued at fair value based on appraisals made by independent external experts. Valuation of external funds is based primarily on fair values reported by respective external fund managers. Sensitivity analysis by investment area is presented in the Tables section of this report.

Operating profit was MEUR 6.9 (MEUR 5.6). The comparable operating profit was MEUR 7.2 (MEUR 6.9) as Fee profit and Fair value changes were above the comparison period.

Fee profit increased by 46% from the comparison period due to Fee income growth and improving relative profitability and was MEUR 1.5 (MEUR 1.0). Fee profit before Group costs was MEUR 2.2 (MEUR 1.9).

The result for the period was MEUR 4.9 (MEUR 3.6). The comparable result for the period was MEUR 5.2 (MEUR 4.8).

A quarterly breakdown of revenue and profit, together with operating profit/loss, alternative performance measures as well as items affecting comparability are available in the Tables section of this report.

Assets under management as at 31 March 2025

Assets under management refers to the remaining investment capacity of funds and capital already invested at acquisition cost or at fair value when referring to mandates and open-ended funds. Assets under management is calculated based on the capital, which forms the basis for management fees, and includes primarily equity without accounting for the funds' debt. Assets under management is impacted by fundraising, exits and fair value changes for open-ended funds as well as wealth management.

Assets under management were MEUR 6,401 as at 31 March 2025 (31 December 2024: MEUR 6,063). The increase was due to Real Estate fund CapMan Hotels II acquisition of Midstar Fastigheter AB, which grew assets under management by MEUR 400.

Table 2: Assets under management (incl. funds and mandates)

	31 March 2025 (MEUR)	31 December 2024 (MEUR)
Real Estate	3,466	3,090
Private Equity & Credit	1,043	1,080
Natural Capital	734	726
Infra	642	648
Wealth Management	516	518
Total assets under management	6,401	6,063

Balance sheet and financial position as at 31 March 2025

CapMan's balance sheet totalled MEUR 343.1 as at 31 March 2025 (31 March 2024: MEUR 295.0), of which goodwill amounted to MEUR 30.1 (MEUR 30.6). Cash and short-term financial assets amounted to MEUR 80.3 (MEUR 49.5), of which cash and cash equivalents were MEUR 73.9 (MEUR 49.3) and other short-term financial assets were MEUR 6.4 (MEUR 0.2).

CapMan's total equity amounted to MEUR 193.3 (MEUR 143.7). Interest-bearing net debt amounted to MEUR 28.5 (MEUR 44.2). CapMan's other short-term financial assets are not included in the net debt calculation. CapMan's total interest-bearing debt as at 31 March 2025 is outlined in Table 6.

Table 6: CapMan's interest bearing debt

	Debt amount 31 March 2025 (MEUR)	Matures latest	Annual interest	Debt amount 31 Dec 2024 (MEUR)
Senior bond (issued in 2022)	40 MEUR	Q2 2027	4.50%	40 MEUR
Senior bond (issued in 2024)	60 MEUR	Q2 2029	6.50%	60 MEUR
Long-term credit facility (available)	(20 MEUR)	Q2 2027	1.725-2.725%	(20 MEUR)

CapMan's bonds and long-term credit facility include financing covenants, which are conditional on the company's equity ratio and net gearing ratio. CapMan honoured all covenants as at 31 March 2025. The senior bonds issued in 2022 and 2024 are linked to sustainability targets. The targets of the 2022 bond were achieved in April 2023.

The Group's cash flow from operations totalled MEUR –1.4 during the period (MEUR 6.1). CapMan receives management fees from funds semi-annually, in January and July, which is shown under working capital in the cash flow statement. The decline from the comparison period was due to MEUR –9.5 of taxes paid (MEUR –1.1). The taxes paid related mainly to a tax liability received in connection with the Dasos Capital transaction completed in March 2024.

Cash flow from investments was impacted by CapMan's MEUR 15.0 investment related to the Real Estate fund CapMan Hotels II acquisition of Midstar Fastigheter AB, and totalled MEUR –12.2 (MEUR 4.4). Cash flow from investments includes, inter alia, investments and repaid capital received by the Group. CapMan makes investments mainly through its investment company and its investments and cash on hand are classified as fund investments. Cash flow from financing was MEUR –2.4 (MEUR –2.2).

Sustainability

CapMan's vision is to become the most responsible private assets company in the Nordics. A strategic objective is to integrate material sustainability themes into all operations across fundraising, investment activities and asset specific value creation plans, fund management and the development of CapMan's personnel and work environment.

Progress on material sustainability themes

Climate action based in science and operations that safeguard nature and the planetary boundaries

CapMan has set validated near-term Science Based Targets and net zero target by 2040.

Within Real Estate the target by 2032 is to reduce GHG emission intensity per square meter by 72% in commercial properties and by 50% in residential properties from the 2021 baseline. By end of 2024 a reduction of 37% in commercial and 54% in residential properties had been achieved.

For eligible majority owned portfolio companies, the target is for 54.5% to have validated Science-Based Targets by 2027 and 100% by 2032. During the first quarter 2025 Hydroware and Netox had their targets validated, taking the total share of the portfolio with SBTs to 17%, from 8% by the end of year 2024.

Diverse, equitable and inclusive business that provide meaningful work, as well as, safeguarding human rights throughout the value chain

CapMan strives to develop and maintain a high employee satisfaction in its portfolio companies and among CapMan employees. In 2024 CapMan's employee satisfaction eNPS was 49 and Inclusion Index 85. In CapMan's portfolio companies the average employee satisfaction was 4/5 in 2024, above the target of 3.5. Within the real estate portfolio, the commercial tenant satisfaction was 3.7/5 in 2024, with the target to be above 4 by 2026.

By the end of 2024 of the majority owned portfolio companies 87% had implemented a DEI policy and 89% a human rights policy. Appointments made by CapMan to portfolio company boards (independent) and management groups by gender was 30% women and 70% men during 2024.

Accountability and transparency

During 2024 CapMan published its new Sustainability-Linked Bond Framework, under which it can issue securities with a link to sustainability KPI's that cover over 90% of CapMan's total emissions. Both of CapMan's outstanding senior bonds (issued 2022 and 2024) are sustainability-linked.

CapMan has implemented a sustainability link to employee remuneration. 45% of CapMan's portfolio companies had sustainability linked to executive remuneration by the end of 2024.

Key figures 31 March 2025

CapMan's return on equity was 9.8% on 31 March 2025 (31 March 2024: 15.3%) and the comparable return on equity was 10.4% (15.0%). Return on investment was 9.2% (10.1%) and the comparable return on investment was 9.6% (12.4%). Equity ratio was 57.4% (50.1%).

According to CapMan's long-term financial targets, the target level for the company's return on equity is on average over 20%. The objective for the equity ratio is more than 50%.

Table 7: CapMan's key figures

	31 March 2025	31 March 2024 restated	31 December 2024
Earnings per share, cents	2.3	1.5	39.5
Diluted earnings per share, cents	2.3	1.5	39.3
Comparable earnings per share from continuing operations, diluted, cents	2.5	1.5	4.0
Shareholders' equity / share, cents	109.3	81.4	116.6
Share issue adjusted number of shares	176,878,210	164,740,307	173,807,362
Return on equity, % p.a.	9.8	15.3	46.2
Return on equity from continuing operations, comparable, % p.a.	10.4	15.0	7.2
Return on investment, % p.a.	9.2	10.1	6.5
Return on investment from continuing operations, comparable, % p.a.	9.6	12.4	7.4
Equity ratio, %	57.4	50.1	59.0
Net gearing, %	14.8	30.8	6.1

Decisions of the 2025 Annual General Meeting

Decisions of the AGM regarding distribution of funds

CapMan's 2025 Annual General Meeting (AGM) decided, in accordance with the proposal of the Board of Directors, that a dividend in the total amount of EUR 0.07 per share, would be paid to shareholders based on the balance sheet adopted for 2024. In addition, the AGM authorised the Board of Directors to decide on an additional dividend in the maximum amount of EUR 0.07 per share. The authorisation will be effective until the next AGM. The Board of Directors intends to resolve on the additional dividend in its meeting scheduled for 15 September 2025. Decisions regarding the distribution of funds have been described in greater detail in the stock exchange release on the decisions taken by the AGM issued on 25 March 2025.

Decisions of the AGM regarding the composition of the Board

CapMan's 2025 AGM decided that the Board of Directors comprises six (6) members. Mr. Johan Bygge, Ms. Catarina Fagerholm, Mr. Joakim Frimodig, Ms. Mammu Kaario, Mr. Ari Kaperi and Ms. Eva Lindholm were elected members of the Board of Directors for a term of office expiring at the end of the next Annual General Meeting.

The Board composition and remuneration have been described in greater detail in the stock exchange releases on the decisions of the AGM and the organisational meeting of the Board issued on 25 March 2025.

Authorisations given to the Board by the AGM

CapMan's 2025 AGM authorised the Board of Directors to decide on the issuance of special rights entitling to shares referred to in Chapter 10, Section 1 of the Finnish Companies Act.

The number of shares to be issued on the basis of the authorisation shall not exceed 17,500,000 shares in total, which on the day of the notice to the AGM and on the day of the AGM corresponded to approximately 9.89% of all shares in the company.

The authorisation is effective until the end of the next AGM, however no longer than until 30 June 2026.

Further details on these authorisations can be found in the stock exchange release on the decisions taken by the AGM issued on 25 March 2025.

Authorising the company's Board of Directors to decide on charitable contributions

CapMan's 2025 AGM authorised the Board of Directors to decide on contributions in the total maximum amount of EUR 50,000 for charitable or similar purposes and to decide on the recipients, purposes, and other terms of the contribution. The authorisation is effective until the next AGM.

Shares and shareholders

All CapMan Plc's shares generate equal voting rights (one vote per share) and rights to a dividend and other distribution to shareholders. CapMan Plc's shares are included in the Finnish bookentry system.

Table 8: Shares and shareholders

	31 March 2025	31 March 2024
Shares and share capital
Number of shares outstanding	176,878,210	176,522,148
Share capital, MEUR	35.2	35.2
Company shares
Number of shares held by CapMan	26,299	26,299
Of all shares and votes	0.01%	0.01%
Market value, EUR	48,390	51,020
Trading and market capitalisation
Close price, EUR	1.84	1.94
Volume-weighted average price, year to date, EUR	1.87	2.04
Intra-year high, EUR	2.05	2.36
Intra-year low, EUR	1.70	1.85
No of shares traded, millions	6.2	7.2
Value of shares traded, MEUR	11.7	14.8
Market capitalisation, MEUR	325	342
Shareholders
Number of shareholders	28,624	30,811

Personnel

CapMan employed 198 people on average in the first quarter of 2025 (1 January–31 March 2024 average: 200), of whom 146 (149) worked in Finland and the remainder in the other Nordic countries, Luxembourg and the United Kingdom. A breakdown of personnel by country is presented in the Tables section of this report.

Remuneration and incentives

CapMan's variable remuneration consists of short-term and long-term incentive schemes.

The short-term scheme covers all CapMan employees, excluding the CEO of the company, and its key objective is earnings development, for which the Board of Directors has set a minimum target.

In March 2025, CapMan Plc's Board of Directors resolved to establish a new long-term share-based incentive plan (Performance Share Plan 2025) for the CEO, Management Group and selected key employees. The aim of the plan is to align the objectives of the shareholders and the key employees and to retain the key employees at CapMan.

The long-term incentive plan consists of annually commencing individual three-year performance periods. During a performance period, the target group has an opportunity to earn CapMan shares based on achieving set performance targets. The target group, the maximum number of shares that can be allocated to the plan, and specific targets are decided upon annually by the Board of Directors for each performance period.

The prerequisite for receiving a reward from performance share plan is that a participant allocates newly acquired or previously owned CapMan shares to the Performance Share Plan and retains the investment during the performance period. The reward is paid after the end of the performance period subject to reaching the performance targets and continuous employment. As a rule, no reward will be paid if the participant's employment or service contract is terminated before reward payment. All reward shares are subject to a lock-up period of one year.

The first three-year performance period will commence on 1 April 2025 and end on 31 March 2028. The target group for the performance period includes all members of the Management Group, including the CEO, as well as other selected key employees. Altogether there are approximately 25 participants in the target group. The potential reward from the performance period is based on achieving performance targets that, in order of significance, are linked to total shareholder return, fee profit growth, sustainability, and on a participant's employment or service upon reward payment.

Further information related to CapMan's share-based incentive plans is available on the Company's website at https://capman.com/shareholders/share-shareholders/performance-share-plans/.

Other significant events in 1–3 2025

On 20 February 2025, CapMan announced that its Real Estate fund CapMan Hotels II has signed an agreement to acquire Midstar Fastigheter AB, a well-established Nordic hotel real estate portfolio, encompassing 28 assets in the Nordics. The transaction is one of the largest of its kind in the region and significantly expands and diversifies CapMan Hotels II's Nordic hotel portfolio, strengthening its position as a key player in the Nordic hotel investment market. The acquisition grows CapMan's assets under management by EUR 0.4 billion and significantly supports CapMan's objective to increase assets under management to EUR 10 billion during the ongoing strategy period. The transaction was closed on 31 March 2025.

On 11 March 2025, CapMan held a Capital Markets Day for investors and analysts in Helsinki. During the event, CapMan's management provided insight about the company's strategy and operating environment, as well as presented the company's financial development. CapMan continues on the path to doubling the assets under management to EUR 10 billion during year 2027, which is the strategic objective that was set in 2022. CapMan is committed to reaching this objective by scaling real asset investment strategies, launching new products and with targeted acquisitions.

On 25 March 2025, CapMan announced that it changes its financial reporting structure to reflect its current operations. Segment reporting is discontinued, and the financial performance of CapMan's

current operations is reported under the Group Income Statement. For more information, refer to the Note "Accounting principles" in the tables section of this report.

On 25 March 2025, CapMan Plc's Board of Directors resolved to establish a new long-term share-based incentive plan (Performance Share Plan 2025) for the CEO, Management Group and selected key employees. More information on the resolution is available in the Remuneration and incentives section of this report.

Events after the end of the review period

On 4 April 2025, CapMan announced that CapMan Wealth's annual programme had raised USD 120 million of new capital. CW Investment Partners Fund IV (non-UCITS) is part of the annual CapMan Wealth Investment Partners programme that invests in sought after US mid-market buyout funds alongside AlpInvest, a leading global private equity asset manager.

On 5 May 2025, CapMan announced that Jyri Hietala has been appointed as Managing Partner at CapMan Natural Capital and member of CapMan's Management Group. The appointment is part of a planned transition as current Managing Partner Olli Haltia steps into a Senior Advisor role. Jyri will start in his position at the latest in October 2025.

Significant risks and short-term uncertainties

CapMan faces many different risks and uncertainties which, if realised, could affect its strategic direction, financial position, earnings, operations and reputation. Assessment and management of risks is an integral part of CapMan's ability to conduct its operations in a successful manner. CapMan classifies risks according to various categories and identifies principal risks for each category. CapMan performs an annual review of the risk environment at the end of the financial year and reports on any material developments quarterly. An annual risk assessment and risk descriptions is presented on the website under https://capman.com/shareholders/risks/. A summary of risks and observed changes in the short-term risk environment are presented in Table 9.

Risk classification	Principal risks	Changes in the short-term risk environment
1. Strategic risks	• Failure to achieve strategic or performance targets • Failure to select the correct strategy in a competitive environment • Failure to recruit and retain key personnel • Failure to scale the business	• No changes
2. Financial risk	• Poor financial performance • Insufficient liquidity position • Failure to obtain financing	• No changes
3. Market risks	• Interest and foreign exchange rate, inflation and asset valuation volatility • Changes in customer preferences • Fluctuations of the transaction market • Failure in fundraising	• A potential widespread and prolonged global trade war increases general uncertainty and may negatively affect fundraising, fair values, and exit opportunities
4. Operational risks	• Cyber threats and system errors • Inadequate or failed processes or controls • Corruption, fraud or criminal behaviour • Mistakes	• No changes

Table 9: Risk classification, principal risks and short-term changes
----------------------------------------------------------------------	--	--	--

5. Regulatory risks	• Adverse changes in the regulatory environment	• Potential EU level deregulation may reduce administrative burden and risk of non compliance
6. Sustainability risks	• Failure to invest in sustainable assets and ESG related incidents or lack of appropriate ESG approach in portfolio companies • Unreasonable increase in costs to comply with sustainability and reporting requirements	• No changes
7. Reputational risk	• Negative public perception	• No changes

Long-term financial targets

CapMan's distribution policy is to pay sustainable distributions that grow over time. CapMan's objective is to distribute at least 70% of the Group's profit attributable to equity holders of the company excluding the impact of fair value changes, subject to the distributable funds of the parent company. In addition, CapMan may pay out distributions accrued from investment operations, taking into consideration foreseen cash requirements for future investments.

The revenue growth target excluding carried interest income is more than 15% p.a. on average. The target for return on equity is more than 20% and for equity ratio more than 50%.

CapMan expects to achieve these financial targets gradually and key figures are expected to show fluctuations on an annual basis considering the nature of the business.

Outlook estimate for 2025

CapMan's objective is to improve results in the long term, taking into consideration annual fluctuations related to the nature of the business. Carried interest income from funds managed by CapMan and the return on CapMan's investments have a substantial impact on CapMan's overall result. In addition to asset-specific development and exits from assets, various factors outside of the portfolio's and CapMan's control influence fair value development of CapMan's overall investments, as well as the magnitude and timing of carried interest. For these reasons, CapMan does not provide numeric estimates for 2025.

CapMan estimates assets under management to grow in 2025. The company estimates fee profit also to grow in 2025. These estimations do not include possible items affecting comparability.

Helsinki, 8 May 2025

CAPMAN PLC

Board of Directors

CapMan Group's Half Year Report for the period 1 January–30 June 2025 is published on Thursday 7 August 2025.

Contact details:

Atte Rissanen, CFO, tel. +358 50 040 5732

Distribution:

Nasdaq Helsinki Ltd I Principal media I www.capman.com

Group Statement of comprehensive income (IFRS)

€ ('000)	1-3/25	1-3/24 restated	1-12/24
Continuing operations:
Management fees	10,953	10,481	45,892
Sale of services	2,072	1,561	7,411
Carried interest Revenue	-41 12,983	3,522 15,564	4,318 57621
Other operating income	28	5	6
Personnel expenses	-8,565	-8,012	-33,330
Depreciation, amortisation and impairment	-680	-445	-2,444
Other operating expenses	-2,641	-3,834	-12,981
Fair value changes of investments	5,747	2,338	7,789
Operating profit	6,873	5,616	16,660
Financial income and expenses	-1,383	-860	-4,324
Result before taxes (Continuing operations)	5,490	4,756	12,337
Income taxes	-616	-1146	-2,952
Result for the period (Continuing operations)	4,874	3,610	9,385
Discontinued operations:
Result after taxes from discontinued operations	0	1,326	64,081
Result for the period	4,874	4,936	73,466
Other comprehensive income:
Translation differences	149	-125	-84
Total comprehensive income	5,023	4,811	73,381
Profit attributable to:
Equity holders of the company	4,072	2,491	68,573
Non-controlling interest	802	2445	4,893
Total comprehensive income attributable to:
Equity holders of the company	4,221	2,367	68,488
Non-controlling interest	802	2445	4,893
Earnings per share for profit attributable to the equity holders of the Company:
Earnings per share, cents	2.3	1.5	39.5
Diluted, cents	2.3	1.5	39.3
Earnings per share from continuing operations for profit attributable to the equity holders of the Company:
Earnings per share, cents	2.3	0.8	2.8
Diluted, cents	2.3	0.8	2.8

Group balance sheet (IFRS)

€ ('000)	31.3.25	31.3.24	31.12.24
ASSETS
Non-current assets
Tangible assets	2,817	3,797	2,931
Goodwill	30,135	30,579	30,135
Other intangible assets	12,043	13,214	12,388
Investments at fair value through profit and loss
Investments in funds	184,426	162,791	167,221
Other financial assets	571	508	571
Receivables Deferred income tax assets	6,941 1,934	6,529 2,265	7,052 1,733
	238,866	219,683	222,030
Current assets
Trade and other receivables	23,861	25,776	27,360
Financial assets at fair value through profit and loss	6,399	160	3,790
Cash and cash equivalents	73,927	49,342	90,142
	104,187	75,278	121,292
Total assets	343,053	294,961	343,322
EQUITY AND LIABILITIES
Capital attributable the Company's equity holders
Share capital	35,198	35,198	35,198
Share premium account	38,968	38,968	38,968
Other reserves	21,114	21,114	21,114
Translation difference	-505	-693	-653
Retained earnings	96,025	45,459	104,166
Total capital attributable to the Company's equity holders	190,799	140,045	198,793
Non-controlling interests	2,506	3,632	3,775
Total equity	193,305	143,677	202,568
Non-current liabilities
Deferred income tax liabilities	8,726	9,350	8,536
Interest-bearing loans and borrowings	101,092	92,201	101,262
Other non-current liabilities	547 110,365	484 102,035	547 110,345
Current liabilities
Trade and other payables	37,394	38,794	19,378
Interest-bearing loans and borrowings	1,364	1,364	1,271
Current income tax liabilities	626	9,090	9,760
	39,384	49,248	30,409
Total liabilities	149,749	151,284	140,754
Total equity and liabilities	343,053	294,961	343,322

Group Statement of Changes in Equity

	Attributable to the equity holders of the Company
€ ('000)	Share capital	Share premium	Other reserves	Translation differences	Retained earnings	Total	Non controlling interests
Equity on 1 January 2024	772	38,968	21,114	-570	52,914	113,197	1,928
Result for the year					2,491	2,491	2,445
Other comprehensive income for the year
Currency translation differences				-125		-125
Total comprehensive income for the year				-125	2,491	2,367	2,445
Acquisition of a subsidiary	34,427					34,427	58
Performance Share Plan					222	222
Dividends and return of capital					-10,943	-10,943	-1,573
Transactions with non-controlling interests					776	776	774
Other changes				2	-2	0
Equity on 31 March 2024	35,198	38,968	21,114	-693	45,459	140,045	3,632
Equity on 1 January 2025	35,198	38,968	21,114	-653	104,166	198,793	3,775
Result for the year					4,072	4,072	802
Other comprehensive income for the year
Currency translation differences				149		149
Total comprehensive income for the year				149	4,072	4,221	802
Performance Share Plan					164	164
Dividends and return of capital					-12,380	-12,380	-2,072
Other changes				-2	2	0
Equity on 31 March 2025	35,198	38,968	21,114	-505	96,025	190,799	2,506

Statement of cash flow (IFRS)

€ ('000)	1-3/25	1-3/24	1-12/24
Cash flow from operations
Result for the financial period	4,874	4,936	73,466
Adjustments for:
Share-based payments	164	222	612
Depreciation and amortisation	680	467	2,535
Fair value changes of investments	-5,747	-2,338	-7,789
Financial income and expenses	1,383	867	4,330
Income taxes	616	1,492	4,035
Acquisitions and disposals	96		-58,353
Other non-cash items	0	1,555	35
Adjustments, total	-2,808	2,265	-54,595
Change in working capital:
Change in current non-interest-bearing receivables	1,741	-4,721	-4,505
Change in current trade payables and other non-interest-bearing liabilities	4,383	4,718	-3,130
Interest paid	-72	-71	-3,661
Taxes paid	-9,503	-1,070	-4,391
Cash flow from operations	-1,385	6,056	3,185
Cash flow from investing activities Acquisition of subsidiaries, net of cash Proceeds from sale of subsidiaries	0 -22	1,547	1,695 59,068
Investments in tangible and intangible assets	0		-47
Investments at fair value through profit and loss	-12,544	2,064	-2,241
Long-term loan receivables granted	-141	-100	-1,492
Proceeds from long-term receivables	80	639	1,084
Interest received	451	290	1,425
Cash flow from investing activities	-12,176	4,441	59,492
Cash flow from financing activities
Proceeds from borrowings		0	59,668
Repayment of long-term loan		0	-50,102
Payment of lease liabilities	-324	-315	-1,267
Dividends paid and return of capital	-2,077	-1,926	-22,004
Cash flow from financing activities	-2,402	-2,241	-13,705
Change in cash and cash equivalents	-15,963	8,256	48,972
Cash and cash equivalents at beginning of period	90,142	41,017	41,017
Translation difference	-252	69	153
Cash and cash equivalents at end of period	73,927	49,342	90,142

Accounting principles

This unaudited interim report is prepared in accordance with IAS 34 (Interim Financial Reporting) using the same accounting policies and methods of computation as in the previous annual financial statements, except for segment information. Due to divestments of the service businesses in 2023-24, CapMan no longer has service businesses. Also, the income impact from CapMan's balance sheet investments materially equals fair value changes that are reported separately in the Group Income Statement. As a result of the aforementioned structural changes in the business, the overall reporting framework and accounting policies have been reassessed. As of January 1, 2025, CapMan Plc's Board of Directors, which is responsible for resource allocations and taking strategic decisions, is determined as the chief operating decision maker under IFRS 8. As Board of Directors evaluates CapMan's financial performance based on the Group Income Statement, CapMan has decided to discontinue segment reporting.

Figures in the accounts have been rounded and consequently the sum of individual figures can deviate from the presented sum figure.

Items impacting comparability and alternative performance measures

CapMan uses alternative performance measures to denote the financial performance of its business and to improve the comparability between different periods. Alternative performance measures do not replace performance measures in accordance with the IFRS and are reported in addition to such measures. Alternative performance measures, as such are presented, are derived from performance measures as reported in accordance with the IFRS by adding or deducting the items affecting comparability and they will be nominated as 'comparable'. Such alternative performance measures are, for example, comparable operating profit, comparable profit for the period, and comparable earnings per share. In addition, CapMan discloses alternative performance measures that have been derived from the beforementioned comparable performance measures by further adding or deducting some income statement items that have been adjusted to exclude possible items impacting comparability. This kind of alternative performance measure is fee profit, which is comparable operating profit or loss deducted with carried interest and fair value changes of investments. As a new alternative performance measure, fee profit before group costs is disclosed, which is fee profit before costs related to CapMan's status as a stock-listed entity.

Items affecting comparability are, among others, material items related to mergers and acquisitions, such as amortisation and impairment of intangible assets recognised in the purchase price allocation, or costs related to major development projects, such as reorganisation costs. Items impacting comparability include also material gains or losses related to the acquisition or disposals of business units, material gains or losses related to the acquisition or disposal of intangible assets, material expenses related to decisions by authorities and material gains or losses related to reassessment of potential repayment risk to the funds.

Items impacting comparability and alternative performance measures with reconciliations are presented under the section "Revenue, items impacting comparability and alternative performance measures".

Revenue, items impacting comparability and alternative performance measures

€ ('000)	1-3/25	1-3/24 restated	1-12/24
Continuing operations:
Timing of revenue recognition from customer contracts:
Services transferred over time	12,962	11,912	52,987
Services transferred at a point in time	22	3,651	4,634
Revenue from customer contracts	12,983	15,564	57,621
Operating profit	6,873	5,616	16,660
Items impacting comparability:
Purchase price allocation amortisations	345	113	1,132
Reorganisation costs	0	113	157
Acquisition related expenses	0	1,056	1,088
Items impacting comparability, total	345	1,282	2,377
Comparable operating profit	7,218	6,898	19,037
Less:
Carried interest	41	-3,522	-4,318
Fair value changes of investments	-5,747	-2,338	-7,789
Fee profit	1,512	1,037	6,930
Less:
Group costs	712	838	2,961
Fee profit before group costs	2,223	1,875	9,891
Profit for the period	4,874	3,610	9,385
Items impacting comparability:
Purchase price allocation amortisations	276	91	905
Reorganisation costs	0	90	126
Acquisition related expenses	0	1,046	1,083
Items impacting comparability, total	276	1,227	2,114
Comparable profit for the period	5,150	4,837	11,498
Earnings per share, cents	2.3	0.8	2.8
Items impacting comparability	0.2	0.7	1.2
Comparable earnings per share, cents	2.5	1.5	4.0
Earnings per share, diluted, cents	2.3	0.8	2.8
Items impacting comparability	0.2	0.7	1.2
Comparable earnings per share, diluted, cents	2.5	1.5	4.0

Acquisition and disposals

In the reporting period, there were no acquisitions or disposals. The acquisition made in the comparison period has an impact on the comparability of figures. The disposal made in the comparison period is accounted for as a discontinued operation.

Acquisition of Dasos Capital in 2024

On 1 March 2024, CapMan completed the acquisition of all the shares of Dasos Capital Oy. As of the acquisition date, Dasos Capital has been consolidated into CapMan's consolidated financial statements in full. The purchase price was paid by executing a directed issue of 17,672,761 new CapMan shares to the owners of Dasos Capital Oy, representing approximately 10.0% ownership in CapMan, and by a cash consideration of EUR 3.0 million. Fair value of the issued shares amounted to EUR 34.4 million. In addition, CapMan has committed to paying an additional earn-out consideration of a maximum EUR 5 million based on management fee turnover incurred in 2025 and 2026, payable when the management fees of the funds managed by Dasos exceed certain limits. The additional consideration will be paid later in 2026 and 2027 in CapMan's shares.

Dasos Capital Oy is a leading timberland and natural capital investment asset manager in Europe and a significant player globally. Dasos focuses on managing sustainable timberland investments, natural sites and forest carbon sinks, as well as developing value in Europe and emerging markets. The investors in the funds managed by Dasos are domestic and foreign institutions, mainly pension and insurance companies. The acquisition supports CapMan's vision of becoming the most responsible private asset company in the Nordics and significantly promotes CapMan's strategic objective to increase assets under management to EUR 10 billion during the ongoing strategy period.

The goodwill arising from the acquisition was EUR 22.2 million and was mainly attributable to Dasos' professional workforce, future customers and products, CapMan's cross-selling opportunities, and synergies. Dasos Capital forms CapMan's new investment area Natural Capital.

Disposal of service business CaPS and discontinued operations

On October 31, 2024, CapMan Plc sold its ownership (92.7%) in subsidiary CapMan Procurement Services (CaPS) Ltd ("CaPS") to Proxer Bidco Oy together with subsidiary's non-controlling interest (7.3%). Debt free purchase price was EUR 70 million, of which CapMan's share is EUR 64.9 million, and in addition, CapMan is entitled to a maximum of EUR 4.6 million earn-out consideration, subject to CaPS reaching certain operating targets during 2025.

CapMan classified CaPS business as a discontinued operation in the income statement and restated the comparison periods' income statement accordingly.

Below table summarises the income statement by line item from discontinued operations for the reporting and comparison periods:

Discontinued operations Turnover, external - 2,815 9,533 Other operating income - 2 3 Operating expenses - -1,136 -4,388 Operating profit - 1,680 5,148 Financial income and expenses - -7 -7 Net gain on disposal* - 0 60,025 Profit before taxes - 1,673 65,166 Income taxes -346 -1,083 from ordinary activities - -346 -1,083 from disposal - 0 0 Profit after taxes - 1,326 64,083	1 000 EUR	1-3/2025	1-3/2024 restated	1-12/2024

*less advisory fees and success bonuses paid

Income taxes

The Group's income taxes in the Income Statements are calculated on the basis of current taxes on taxable income and deferred taxes. Deferred taxes are calculated on the basis of all temporary differences between book value and fiscal value.

Dividends and repayment of capital

The Annual General Meeting, held on 25 March 2025, decided that a dividend of EUR 0.07 per share, totalling EUR 12.4 million, will be paid for the financial year 2024. The dividend was paid on April 3, 2025. The Annual General Meeting also authorised the Board of Directors to decide on an additional dividend in the maximum of EUR 0.07 per share or EUR 12.4 million in total. The Board of Directors intends to resolve on the additional dividend in its meeting scheduled on September 15, 2025.

A dividend of EUR 0.10 per share, or EUR 17.7 million in total, was paid for the financial year 2023. The dividend was paid in two instalments, of which EUR 0.06 per share on April 9, 2024 and EUR 0.04 per share as an additional dividend on September 27, 2024.

Financial assets measured at fair value through profit and loss

Fair value hierarchy of financial assets measured at fair value at 31 March 2025

	Level 1	Level 2	Level 3	Total
Investments in funds
at Jan 1	4,318		162,902	167,221
Additions			17,277	17,277
Distributions	0		-1,752	-1,752
Disposals			-914	-914
Fair value gains/losses			5,873	5,873
Transfers*	-3,280			-3,280
at the end of period	1,039		183,387	184,425
Other investments
at Jan 1	545	0	25	570
at the end of period	545	0	25	570

Current financial assets at FVTPL 6,315 84 6,399 * Change of cash and cash equivalents of the subsidiary CapMan Fund Investments SICAV-SIF, classified as fund investments and transfer of fund investments consisting only of cash from Level 3 to Level 1.

The different levels have been defined as follows:

Level 1 - Quoted prices (unadjusted) in active markets for identical assets

Level 2 - Other than quoted prices included within Level 1 that are observable for the asset, either directly (that is, as price) or indirectly (that is, derived from prices).

Level 3 - The asset's value that is not based on observable market data

Investments in funds include the subsidiary, CapMan Fund Investments SICAV-SIF, with a fair value of EUR 129.4 million at the end of the reporting period. The fair value included EUR 0.8 million of cash.

Fair value hierarchy of financial assets measured at fair value at 31 December 2024

	Level 1	Level 2	Level 3	Total
Investments in funds
at Jan 1	980		157,927	158,907
Additions			19,017	19,017
Acquisition of a subsidiary			3,301	3,301
Distributions	-589		-9,466	-10,055
Disposals			-15,623	-15,623
Fair value gains/losses			7,746	7,746
Transfers*	3,928			3,928
at the end of period	4,318		162,902	167,221
Other investments
at Jan 1	482	0	25	508
Additions	42			42
Fair value gains/losses	21			21
at the end of period	545	0	25	570

Current financial assets at FVTPL 3,790 0 3,790

* Change of cash and cash equivalents of the subsidiary CapMan Fund Investments SICAV-SIF, classified as fund investments and transfer of fund investments consisting only of cash from Level 3 to Level 1.

The different levels have been defined as follows:

Level 1 - Quoted prices (unjusted) in active markets for identical assets

Level 2 - Other than quoted prices included within Level 1 that are observable for the asset, either directly (that is, as price) or indirectly (that is, derived from prices).

Level 3 - The asset that is not based on observable market data

Investments in funds include the subsidiary, CapMan Fund Investments SICAV-SIF, with a fair value of EUR 111.3 million at the end of the reporting period. The fair value included EUR 4.0 million of cash.

Sensitivity analysis of Level 3 investments at 31 March 2025

Investment area	Fair Value MEUR, 31 March 2025	Valuation methodology	Unobservable inputs	Used input value (weighted average)	Change in input value	Fair value sensitivity
Private Equity	53.4	Peer group	Peer group earnings multiples	EV/EBITDA 2024 9.6x	+/- 10%	+/- 5.9 MEUR
			Discount to peer group multiples	20 %	+/- 10%	-/+ 1.6 MEUR
			FX rate	EUR/SEK 10.8490	+/-1%	-/+ 0.3 MEUR
Real Estate	56.4	Valuation by an independent		EUR/DKK 7.4613	+/-1%	-/+ 0.3 MEUR
		valuer		EUR/NOK 11.4130	+/-1%	-/+ 0.1 MEUR
	18.0	Discounted cash flows	Terminal value	EV/EBITDA 14.6x	+/- 5%	+/- 1.4 MEUR
Infra			Discount rate; market rate and risk premium	13 %	+/- 100 bps	-/+ 1.9 MEUR
Credit	6.1	Discounted cash flows	Discount rate; market rate and risk premium	10 %	+/- 100 bps	-0.2 MEUR / value change based on a change in the discount rate is not booked
Natural Capital	1.9	Valuation by an independent valuer	Wood prices	na	+/- 2.5%	+/- 0.3 MEUR
			Discount rate	4 %	+-0.3%	-/+ 0.9 MEUR
Investments in funds-of-funds	7.9	Reports from PE fund management company	FX rate	EUR/USD 1.0815	+/-1%	-/+ 0.1 MEUR
Investments in external venture capital funds	39.6	Reports from PE fund management company

Sensitivity analysis of Level 3 investments at 31 December 2024

Investment area	Fair Value MEUR, 31 December 2024	Valuation methodology	Unobservable inputs	Used input value (weighted average)	Change in input value	Fair value sensitivity
	50.3	Peer group	Peer group earnings multiples	EV/EBITDA 2024 12.1x	+/- 10%	+/- 5.2 MEUR
Private Equity			Discount to peer group multiples	20 %	+/- 10%	-/+ 1.4 MEUR
Real Estate	39.3	Valuation by an independent valuer		EUR/SEK 11.4590	+/-1%	-/+ 0.1 MEUR
			FX rate	EUR/DKK 7.4578	+/-1%	-/+ 0.1 MEUR
				EUR/NOK 11.7950	+/-1%	-/+ 0.0 MEUR
Infra	17.7	Discounted cash flows	Terminal value	EV/EBITDA 14.6x	+/- 5%	+/- 1.2 MEUR
			Discount rate; market rate and risk premium	13 %	+/- 100 bps	-/+ 1.9 MEUR
Credit	5.9	Discounted cash flows	Discount rate; market rate and risk premium	10 %	+/- 100 bps	-0.2 MEUR / value change based on a change in the discount rate is not booked
Natural Capital	2.9	Valuation by an independent valuer	Wood prices	na	+/- 2.5%	+/- 0.3 MEUR
			Discount rate	4 %	+-0.3%	-/+ 0.9 MEUR
Investments in funds-of-funds	7.8	Reports from PE fund management company	FX rate	EUR/USD 1.0389	+/-1%	-/+ 0.2 MEUR
Investments in external venture capital funds	39.1	Reports from PE fund management company

CapMan has made some investments also in funds that are not managed by CapMan Group companies. The fair values of these investments in CapMan's balance sheet are primarily based on the valuations by the respective fund managers. No separate sensitivity analysis is prepared by CapMan for these investments. However, CapMan evaluates the significant investments individually and makes adjustments to them if necessary. Separate sensitivity analysis is prepared by CapMan for these adjustments.

The changes in the peer group earnings multiples and the peer group discounts are typically opposite to each other. Therefore, if the peer group multiples increase, a higher discount is typically applied. Because of this, a change in the peer group multiples may not in full be reflected in the fair values of the fund investments.

The valuations are based on euro. If portfolio company's reporting currency is other than euro, P&L items used in the basis of valuation are converted applying the average foreign exchange rate for corresponding year and the balance sheet items are converted applying the rate at the time of reporting. Changes in the foreign exchange rates, in CapMan's estimate, have no significant direct impact on the fair values calculated by peer group multiples during the reporting period.

The valuation of CapMan funds' investment is based on international valuation guidelines that are widely used and accepted within the industry and among investors. CapMan always aims at valuing funds' investments at their actual value. Fair value is the best estimate of the price that would be received by selling an asset in an orderly transaction between market participants on the measurement date.

Determining the fair value of fund investments for funds investing in portfolio companies is carried out using International Private Equity and Venture Capital Valuation Guidelines (IPEVG). In estimating fair value for an investment, CapMan applies a technique or techniques that is/are appropriate in light of the nature, facts, and circumstances of the investment in the context of the total investment portfolio. In doing this, current market data and several inputs, including the nature of the investment, local market conditions, trading values on public exchanges for comparable securities, current and projected operating performance, and the financial situation of the investment, are evaluated and combined with market participant assumptions. In selecting the appropriate valuation technique for each particular investment, consideration of those specific terms of the investment that may impact its fair value is required.

Different methodologies may be considered. The most applied methodologies at CapMan include available market price for actively traded (quoted) investments, earnings multiple valuation technique, whereby public peer group multiples are used to estimate the value of a particular investment, and the Discounted Cash Flows method, whereby estimated future cash flows and the terminal value are discounted to the present by applying the appropriate risk-adjusted rate. CapMan always applies a discount to peer group multiples, due to e.g. limited liquidity of the investments. Due to the qualitative nature of the valuation methodologies, the fair values are to a considerable degree based on CapMan's judgment.

The Group has a Risk and Valuation team, which monitors the performance and the price risk of the investment portfolio (financial assets entered at fair value through profit or loss) independently and objectively of the investment teams. The Risk and Valuation team is responsible for reviewing the monthly reporting and forecasts for portfolio companies. Valuation proposals are examined by the Risk and Valuation team and subsequently reviewed and decided by the Valuation Committee, which comprises at least Valuation Controller, Risk Manager and at least one CapMan AIF Manager's Board of

Investments in real estate are valued at fair value based on appraisals made by independent external experts, who follow International Valuation Standards (IVS). The method most appropriate to the use of the property is always applied, or a combination of such methods. For the most part, the valuation methodology applied is the discounted cash flow method, which is based on significant unobservable inputs. These inputs include the following:

Future rental cash inflows	Based on the actual location, type and quality of the properties and supported by the terms of any existing lease, other contracts or external evidence such as current market rents for similar properties;
Discount rates	Reflecting current market assessments of the uncertainty in the amount and timing of cash flows;
Estimated vacancy rates	Based on current and expected future market conditions after expiry of any current lease;
Property operating expenses	Including necessary investments to maintain functionality of the property for its expected useful life;
Capitalisation rates	Based on actual location size and quality of the properties and taking into account market data at the valuation date;
Terminal value	Taking into account assumptions regarding maintenance costs , vacancy rates and market rents.

The investments in natural capital funds that CapMan manages are valued based on appraisals made in cooperation with independent appraisers with specific experience in the valuation of investments in timberland assets. The main forest valuation approaches include income approach where the value is the net present value of expected cash flows discounted at a current market rate, cost approach where the value is based on historical investment cost of the forest asset (land cost, planting and management cost etc.) and market approach where the value is based on the transaction values of comparable forest assets.

Valuations based on appraisals by Independent external experts are updated annually for closed-end funds and quarterly for open-ended funds.

Seasonal nature of business

Carried inrerest income is accrued on an irregular schedule depending on the timing of exits. An exit may have an appreciable impact on the Group's result for the full financial year.

Average personnel

By country	31.3.25	31.12.24
Finland	146	149
Sweden	25	27
Denmark	13	12
Norway	2	2
Luxembourg	3	3
United Kingdom	9	7
In total	198	200

Contingent liabilities

€ ('000)	31.3.25	31.12.24
Securities and other contingent liabilities	61,177	61,132
Remaining commitments to funds	64,421	66,829
Remaining commitments by investment area
Buyout	14,855	14,886
Credit	2,408	2,527
Russia	1,066	1,066
Real Estate	6,352	6,432
Other	1,394	1,489
Funds of funds	245	245
Growth equity	10,561	10,569
Infra	8,246	8,230
Special Situations	2,783	3,462
Natural Capital	9	43
CapMan Wealth Services funds	14,895	16,031
External funds-of-funds	265	265
External venture capital funds	1,341	1,583
In total	64,421	66,829

Derivatives

€ ('000)	31.3.25	31.12.24
Fair value of derivatives
Foreign exchange forwards	84	-77
Nominal amounts of derivatives
Foreign exchange forwards	4,484	4,484

CapMan uses short-term derivatives to hedge against currency changes incurred to its foreign currency denominated trade receivables. Derivatives have been valued at market value on the reporting date and are reported in current assets or liabilities. CapMan does not apply hedge accounting.

Related parties

Transactions with related parties

There were no related party transactions during the reporting period. In the comparison period, CapMan granted a long-term loan of EUR 747 thousand and a short-term loan of EUR 170 thousand with a fixed interest rate to Noelia Invest AB, a controlled entity of Mika Koskinen, member of the Management Group. Noelia Invest AB used the loans to subscribe shares issued by CapMan Wealth Services Oy, a subsidiary of CapMan Plc. Furthermore, during the previous financial year 2024, CapMan sold a share of its interest in CWS Investment Partners Fund III to Noelia Invest AB. The purchase price was EUR 30 thousand and the transaction also included transferring a total of USD 300 thousand of investment commitments to the aforementioned fund from CapMan to Noelia Invest AB.

Loan and interest receivables from related parties

1 000 EUR	31.3.25	31.12.24
Non-current	830	817
Current	177	175

Commitments to related parties

€ ('000)	31.3.25	31.12.24
Loan commitments	67	73

Revenue and profit quarterly

Year 2025
MEUR	1-3/25
Revenue	13.0
Management fees	11.0
Sales of services	2.1
Carried interest	0.0
Material and services	0.0
Other operating income	0.0
Operating expenses	-11.9
Fair value changes of investments	5.7
Operating profit	6.9
Financial income and expenses	-1.4
Result before taxes	5.5
Result for the period	4.9

Year 2024

MEUR	1-3/24 restated	4-6/24 restated	7-9/24 restated	10-12/24	1-12/24
Continuing operations:
Revenue	15.6	15.4	12.8	13.9	57.6
Management fees	10.5	13.4	10.8	11.2	45.9
Sales of services	1.6	1.7	2.0	2.2	7.4
Carried interest	3.5	0.3	0.0	0.5	4.3
Other operating income	0.0	0.0	0.0	0.0	0.0
Operating expenses	-12.3	-12.8	-10.3	-13.4	-48.8
Fair value changes of investments	2.3	1.2	-0.8	5.1	7.8
Operating profit (loss)	5.6	3.8	1.7	5.6	16.7
Financial income and expenses	-0.9	-1.1	-1.3	-1.1	-4.3
Result before taxes	4.8	2.7	0.4	4.5	12.3
Result for the period (Continuing operations)	3.6	2.6	-0.4	3.6	9.4
Result from discontinued operations	1.3	1.3	0.8	60.7	64.1
Result for the period	4.9	3.9	0.3	64.3	73.5