CapMan Oyj — Earnings Release 2019

Aug 8, 2019

CapMan Plc Half-Year Report for the period 1 January – 30 June 2019

CapMan Plc Half-Year Report for the period 1 January – 30 June 2019

CapMan Plc Stock Exchange Release / Half-Year Financial Report
8 August 2019 at 8:30 a.m. EEST

CapMan Plc Half-Year Report for the period 1 January – 30 June 2019

Performance and main events:

· Group turnover was MEUR 22.6 1 Jan–30 Jun 2019 (MEUR 17.8 1 Jan–30 Jun
2018), growth was 27 per cent from the comparison period.
· Operating profit was MEUR 10.5 (MEUR 10.1). Operating profit excluding items
affecting comparability was MEUR 11.9 (MEUR 10.1), growth was 18 per cent from
the comparison period.
· Diluted earnings per share for the period were 4.3 cents (4.8 cents).
Diluted earnings per share excluding items affecting comparability were 5.2
cents (4.8 cents).
· Capital under management was EUR 3.3 bn (EUR 2.8 bn), growth was 18 per cent
from the comparison period.
· The first closing of CapMan Buyout XI fund was held at MEUR 160.

This stock exchange release is a summary of CapMan Plc’s Half-Year Report for
the period 1 January – 30 June 2019. The complete report is available in pdf
-format as an attachment to this release and on the company’s website at
https://www.capman.com/shareholders/financial-reports/.

Joakim Frimodig, CEO:

”CapMan’s strong growth continues as Group turnover grew by 27 per cent in the
first half of 2019. Correspondingly, comparable operating profit grew by 18 per
cent from the comparison period to MEUR 12. The improvement in results reflects
the positive development of our core business and especially growth in the
Management Company and Service businesses. Fee-based profitability doubled from
the comparison period.

The positive development of the Service business across the board has supported
growth and improved profitability during the first half of the year. Fundraising
projects completed by Scala in the beginning of the year generated success fees
and the strong development of CaPS continued. In addition, the acquisition of
JAM Advisors had a positive impact on Service business growth. Growth outlook
for all service areas remains good, although some periodic fluctuation is
expected in success fees due to the nature of the business.

We are building a stronger foundation for our Management Company business. Net
growth in our capital under management was 18 per cent, i.e. MEUR 500 from the
comparison period. One of the accomplishments for the review period was the
establishment of our eleventh Buyout fund, among others.

Fundraising remains active. We are currently raising capital for the newest
Buyout, Infra and Real Estate funds. In addition, we are planning new investment
products and plan to launch new fundraising projects this year. In the past two
years, we have strengthened and renewed our investment teams. Following already
completed measures, near term-growth of the Management Company business can be
achieved without significant additional expenses.

Our funds have actively invested and conducted exits in 2019. In the first half
of the year, our funds completed nine new investments and five exits. Value
creation work continues and returns of many of our own funds were good in the
first half of 2019.

We were able to successfully increase fee-based profitability in the first half
of the year as outlined in our core objectives. Many of our funds approach carry
and we are well-positioned to achieve strong returns on our own investments in
the future. Strong growth and improved profitability support the implementation
of our long-term dividend policy. Our objective is to distribute an annually
growing dividend to our shareholders.”

CapMan maintains financial objectives and outlook estimate for 2019 unchanged

CapMan’s objective is to pay an annually increasing dividend to its
shareholders.

The combined growth objective for Management Company and Service business is
more than 10 per cent p.a. on average. The objective for return on equity is
more than 20 per cent p.a. on average. CapMan’s equity ratio target is more than
60 per cent.

CapMan expects to achieve these financial objectives gradually and key figures
are expected to show fluctuation on an annual basis considering the nature of
the business. CapMan expects management fees and fees from services to continue
growing in aggregate in 2019. Our objective is to improve the aggregate
profitability of Management Company and Service businesses before carried
interest income and any possible items affecting comparability.

The return on CapMan’s investments have a substantial impact on CapMan’s overall
result. The development of industries and local economies, market instrument and
inflation development, valuation multiples of peer companies, exchange rates and
various other factors outside of CapMan’s control, as well as the combined
effect of the aforementioned factors, influence fair value development of
CapMan’s overall investments in addition to portfolio company and asset-specific
development.

CapMan’s objective is to improve results in the longer term, taking into account
annual fluctuations affecting the business. For these and other above-mentioned
reasons, CapMan does not provide numeric estimates for 2019.

Items affecting comparability are described in the Tables section of this
report.

Key figures

MEUR 1-6/19 1-6/18

Operating profit 10.5 10.1
Items affecting comparability
Acquisition related costs 1.1
Donations 0.3
Items affecting comparability, total 1.4
Adjusted operating profit 11.9 10.1

Profit for the period 8.2 7.6
Items affecting comparability
Acquisition related costs 1.0
Donations 0.3
Items affecting comparability, total 1.3
Adjusted profit for the period 9.5 7.6

Earnings per share, cents 4.4 4.8
Items affecting comparability, cents 0.8
Adjusted earnings per share, cents 5.2 4.8

Earnings per share, diluted, cents 4.3 4.8
Items affecting comparability, cents 0.9
Adjusted earnings per share, diluted, cents 5.2 4.8

% 30.6.2019 30.6.2018

Return on equity, %*  13.6  12.3
Return on equity, comparable, %*  15.8  12.3
Equity ratio, %  60.2  58.4

*CapMan has changed the calculation of Return on equity (ROE) as of Q2 2019.
Return on equity is calculated as annualised profit for the period divided by
average total equity (incl. non-controlling interests). Previously, ROE was
calculated as annualised profit attributable to equity holders of the parent
divided by average equity attributable to equity holders of the parent. The
figures for the comparison periods have been restated accordingly.

Press, analyst and institutional investor conference and webcast today at 10.00
a.m. EEST

CapMan’s management will present the result for the review period to press,
analysts and institutional investors in a press conference to be held at 10.00
a.m. EEST at CapMan’s head office in Helsinki, address Ludviginkatu 6. To join
the conference in person, please register with linda.tierala@capman.com. The
conference is also accessible over a live webcast at
https://capman.videosync.fi/2019-q2-results. The conference will be held in
English. A replay of the webcast will be available on the company’s website
after the event. Welcome!

Helsinki, 8 August 2019

CAPMAN PLC
Board of Directors

Further information:
Niko Haavisto, CFO, CapMan Plc, tel. +358 50 465 4125

Distribution:
Nasdaq Helsinki Ltd
Principal media
www.capman.com

Appendix: CapMan Plc 1-6 2019 Half-Year
Report (https://mb.cision.com/Public/17586/2875560/a0144481f3554304.pdf)

CapMan is a leading Nordic private asset expert with an active approach to value
creation. We offer a wide selection of investment products and services. As one
of the Nordic private equity pioneers, we have developed hundreds of companies
and real estate assets and created substantial value in these businesses and
assets over the past 30 years. With over €3 billion in assets under management,
our objective is to provide attractive returns and innovative solutions to
investors. We have a broad presence in the unlisted market through our local and
specialised teams. Our investment strategies cover Private Equity, Real Estate
and Infra. We also have a growing service business that includes procurement
services, fundraising advisory, and analysis, reporting and wealth management
services. Altogether, CapMan employs 140 people in Helsinki, Stockholm,
Copenhagen, London, Moscow and Luxembourg. www.capman.com

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