CapMan Oyj — Earnings Release 2022

Apr 28, 2022

CapMan Plc 1–3 2022 Interim Report

CapMan Plc 1–3 2022 Interim Report

CapMan Plc Stock Exchange Release / Interim Report
28 April 2022 at 8:00 a.m. EEST

CapMan Plc 1–3 2022 Interim Report

Results and significant events in 1–3 2022:

· Group turnover was MEUR 14.2 1 Jan–31 Mar 2022 (MEUR 11.3 1 Jan–31 Mar 2021)
and increased by 26 per cent.
· Operating profit was MEUR 18.9 (MEUR 10.1) and increased by 86 per cent.
· Management Company business turnover was MEUR 11.7 (MEUR 9.0). Operating
profit was MEUR 4.4 (MEUR 2.5).
· Service business turnover was MEUR 2.5 (MEUR 2.3). Operating profit was MEUR
1.4 (MEUR 1.2).
· Investment business operating profit was MEUR 14.5 (MEUR 7.9).
· Diluted earnings per share were 8.3 cents (4.7 cents).
· Capital under management was EUR 4.7 billion on 31 March 2022 and increased
by MEUR 851 from 31 March 2021.

This stock exchange release is a summary of CapMan Plc’s Interim Report for the
period 1 January–31 March 2022. 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/.

CEO comment:

“The year 2022 began on a strong note despite intensified global turbulence. The
turnover for the first quarter of 2022 was MEUR 14.2, growth of more than 25 per
cent from the first quarter last year and the operating profit was MEUR 18.9,
growth of more than 85 per cent. The profitability of all business segments
improved from last year. Key drivers behind the positive development are strong
international fundraising, steadily improving fee profitability, successful long
-term value creation work and well-executed recent exits. CapMan’s outlook
remains strong despite increased general market uncertainty.

Assets under management were EUR 4.7 billion at the end of the first quarter of
2022 and increased by 22 per cent over the last twelve months. We have raised
more than MEUR 300 in new capital during the first four months of 2022 and our
many ongoing fundraising projects are proceeding as planned. Investor demand has
remained strong, and we anticipate continued growth in assets under management
over the remainder of 2022.

Fee-based profitability is stable and predictable and has grown by approx. 50
per cent p.a. in the past four years to now reach a new record level. We expect
fee-based profitability to continue its strong growth during this and upcoming
years especially due to the expected continued growth in assets under management
and the positive development of the Service business.

The share of carried interest as part of our earnings mix is growing. The Nordic
Real Estate Fund started generating carry in the first quarter of the year and
the Growth Equity 2017 Fund is approaching carry during the second quarter of
the year. Both funds have several assets remaining that should generate carry
when exited. In addition to these, many other funds are close to carry and we
expect some of them to start generating carry in the next 12 months.

Long-term value creation work was very successful also in the beginning of the
year. The fair value changes of investments from our balance sheet were MEUR
+14.7 in the first quarter of 2022. The positive development was broad-based as
all our active strategies made a favourable contribution. External funds
contributed significantly to the positive development especially due to funding
rounds and partial exits in some venture capital funds.

The management company operations for the Russia funds were discontinued in
2019. At the end of the first quarter, we wrote down the remaining old CapMan
Russia fund investments on our balance sheet. Following the write-downs, CapMan
no-longer has direct Russian operations risk on its balance sheet. Our active
strategies and portfolio companies do not have significant exposure to Ukraine
or Russia.

Our balance sheet and liquidity are strong. At the end of the first quarter of
2022, our equity ratio was 48 per cent and liquid assets were MEUR 60. A total
of 15 cents per share is distributed to shareholders for 2021, which increases
distribution to shareholders for the ninth consecutive year. The first
instalment, 8 cents, was paid in March and the second instalment, 7 cents, is
paid in September.

Our strong financial position is further strengthened by a MEUR 40
sustainability-linked bond, which is the first of its kind in Finland.
Sustainability is a central part of CapMan’s strategy and the connection of
financing costs to sustainability targets is a natural next step.

CapMan’s value creation work and partnership with fund investors is long-term
and the prevailing geopolitical and general market uncertainty has so far not
had a significant impact on our business. The Russian invasion of Ukraine has
nevertheless shaken our Nordic values to the core. We stand with Ukraine in this
conflict and condemn Russian aggression. Although I am very satisfied with
CapMan’s recent development and the result for the beginning of the year, our
thoughts are now foremost with Ukrainian people. We hope for a swift conclusion
to this war that affects the whole of Europe.”

Sincerely,

Joakim Frimodig

CEO, CapMan Plc

Key figures

MEUR 1-3/22 1-3/21

Operating profit 18.9 10.1
Result for the period 13.4 7.8

Earnings per share, cents 8.5 4.8
Earnings per share, diluted, cents 8.3 4.7

% 31.3.22 31.3.21

Return on equity, % 44.0 29.2
Equity ratio, % 47.8 45.5

Financial objectives

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

The combined growth objective for the Management Company and Service businesses
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 maintains outlook estimate for 2022

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 estimates capital under management to continue growing in
2022. Our objective is to improve the aggregate profitability of Management
Company and Service businesses. These estimations do not include possible items
affecting comparability.

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
portfolio company and asset-specific development and exits from portfolio
companies and 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.

CapMan’s objective is to improve results in the longer term, taking into
consideration annual fluctuations related to the nature of the business. For
these and other above-mentioned reasons, CapMan does not provide numeric
estimates for 2022.

Result webcast today at 9.30 a.m. EEST

CapMan’s management will present the result for the review period in a webcast
to be held at 9.30 a.m. EEST. Please access the webcast at
https://capman.videosync.fi/2022-q1-results/. The conference will be held in
English. A replay of the webcast will be available on the company’s website
after the event.

Helsinki, 28 April 2022

CAPMAN PLC
Board of Directors

Further information:
Atte Rissanen, CFO, CapMan Plc, tel. +358 50 040 5732

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

Appendix: CapMan Plc 1–3 2022 Interim Report

About CapMan

CapMan is a leading Nordic private asset expert with an active approach to value
creation. As one of the private equity pioneers in the Nordics we have built
value in unlisted businesses, real estate, and infrastructure for over three
decades. With over to €4.7 billion in assets under management, our objective is
to provide attractive returns and innovative solutions to investors. We are
dedicated to set science-based targets to reduce our greenhouse gas emissions in
line with the Paris Agreement. We have a broad presence in the unlisted market
through our local and specialised teams. Our investment strategies cover
minority and majority investments in portfolio companies and real estate, and
infrastructure assets. We also provide wealth management solutions. Our service
business includes procurement and analysis, reporting and back office services.
Altogether, CapMan employs approximately 180 professionals in Helsinki,
Stockholm, Copenhagen, Oslo, London and Luxembourg. We are listed on Nasdaq
Helsinki since 2001. Read more at www.capman.com.

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