CapMan Oyj — Earnings Release 2021

Feb 3, 2022

CapMan Plc 2021 Financial Statements Bulletin

CapMan Plc 2021 Financial Statements Bulletin

CapMan Plc Stock Exchange Release / Financial Statements Bulletin
3 February 2022 at 8:00 a.m. EET

CapMan Plc 2021 Financial Statements Bulletin

Results and significant events in January–December 2021:

· Group turnover was MEUR 52.8 1 Jan–31 Dec 2021 (MEUR 43.0 1 Jan–31 Dec 2020)
and increased by 23 per cent.
· Operating profit was MEUR 44.6 (MEUR 12.3).
· Management Company business turnover was MEUR 43.6 (MEUR 33.7). Operating
profit was MEUR 13.2 (MEUR 9.5).*)
· Service business turnover was MEUR 8.6 (MEUR 8.6). Operating profit was MEUR
4.2 (MEUR 4.6).*)
· Investment business operating profit was MEUR 32.7 (MEUR 4.0).
· Diluted earnings per share were 21.4 cents (3.3 cents).
· Capital under management was EUR 4.5 billion on 31.12.2021 and increased by
EUR 690 million from 31.12.2020.
· Board of Directors proposes a total of 15 cents/share to be distributed for
2021, consisting of a dividend of 4 cents/share and equity repayment of 11
cents/share.

This stock exchange release is a summary of CapMan Plc’s Financial Statements
Bulletin for the period 1 January–31 December 2021. 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/.

*) The comparison period figures have been restated following changes to the
composition of reporting segments starting from 1 January 2021.

CEO comment:

”2021 was CapMan’s strongest year as a listed company, measured by turnover and
operating profit. Turnover for the year was MEUR 53, growth of 23 per cent from
2020 and operating profit was MEUR 45, growth of 262 per cent from 2020. Key
drivers behind the record result are strong international fundraising,
successful value creation work and well executed exits.

Our vision is to be a Nordic private assets powerhouse. Our strategy based on
this vision has progressed on many fronts during 2021. We have expanded our fund
investor base, diversified our product offering in the unlisted market and
focused on active and sustainable value creation.

Assets under management were EUR 4.5 billion at the end of 2021 and increased by
almost MEUR 700 during the year. We raised capital for our new Residential and
Credit funds as well as for CapMan Wealth Services’ new investment programme,
among others. Several fundraising projects, including raising the next Infra
fund as well as many new Real Estate funds, are ongoing. These projects proceed
as planned and we expect to see continued growth in assets under management in
2022.

Following successful value creation work and ongoing exit processes, many of our
funds hold significant carried interest potential. We received carried interest
from CapMan Mezzanine V fund in 2021 and expect CapMan Nordic Real Estate Fund
to start generating carry in the next few months. Several other funds have also
developed strongly and now approach carry.

Management Company turnover was MEUR 44 in 2021, growing 29 per cent from 2020.
Turnover grew due to new assets under management and carried interest income.
The operating profit of the Management Company business was MEUR 13, growing by
39 per cent from the comparison period. Operating profit grew due to significant
growth in proceeds in combination with controlled cost development.

Service business turnover was MEUR 9 and operating profit MEUR 4 in 2021. The
Service business includes CapMan’s procurement service CaPS and reporting and
analytics service JAY Solutions, which both demonstrated strong development.
CaPS’s turnover continued growing and the business was very profitable. JAY
Solutions’ business grew strongly especially due to new customer acquisition and
growth in the B2B business.

Management Company and Service business fee profitability has continued growing
and was at a record level in 2021. This fee-based profitability is stable and
predictable and has grown approx. 50 per cent p.a. in the past four years. We
expect fee-based profitability to continue its strong growth also during 2022
especially due to the expected growth in assets under management.

The year 2021 has been characterised by successful value creation. The fair
value changes of investments from our balance sheet were MEUR +34 in 2021. The
positive development was broad-based and included all our active strategies.
Successful value creation work was also reflected in exits. Net cash flows from
investments to CapMan was MEUR 18.

Our balance sheet and liquidity are strong. At the end of 2021, our equity ratio
was 53 per cent and liquid assets were MEUR 65. The Board of Directors proposes
for the 2022 Annual General Meeting that a total of 15 cents per share would be
distributed to shareholders. Earnings per share for 2021 was 21 cents. The
payment would increase distribution to shareholders for the ninth consecutive
year in line with our dividend policy.

CapMan’s societal impact is significant. We have the opportunity and a strong
drive to develop our portfolio companies in a more environmentally friendly, and
socially sustainable direction while adhering to good governance principles.
This is how we build a more sustainable society in the Nordics. We have
implemented our new ESG strategy, which integrates sustainability factors more
systematically into all our activities. As part of this work, we have
established clear sustainability commitments to CapMan as well as the funds that
we manage. We commit to actions that limit global warming in line with the
boundaries established by the Paris Agreement. We also commit to promoting
employee wellbeing and the establishment of diverse and inclusive work
communities as part of active value creation.

We have raised the bar for our business and results during 2021. In the coming
years, we will maintain our focus on growth and especially on the
internationalisation of our business. Active and sustainable value creation is
at the core of our activities. This combination of growth and value creation
improves our financial performance and helps us execute our vision to be a
Nordic private assets powerhouse.”

Sincerely,

Joakim Frimodig

CEO, CapMan Plc

Key figures

MEUR 1-12/21 1-12/20

Operating profit 44.6 12.3
Result for the period 35.4 6.3

Earnings per share, cents 21.9 3.3
Earnings per share, diluted, cents 21.4 3.3

% 31.12.21 31.12.20

Return on equity, % 29.4 5.2
Equity ratio, % 53.3 51.9

Proposal of the Board of Directors regarding distribution of funds

CapMan Plc’s objective is to distribute an annually growing dividend to
shareholders. CapMan Plc’s Board of Directors will propose to the Annual General
Meeting (AGM) to be held on 16 March 2022 that a total of EUR 0.15 per share
would be paid to shareholders, equivalent of a total of MEUR 23.5, from
distributable funds for 2021. The distribution of funds would be divided into a
dividend of EUR 0.04 per share, equivalent to a total of approx. MEUR 6.3 as
well as an equity repayment of EUR 0.11 per share to be returned from the
invested unrestricted equity fund, equivalent to a total of approx. MEUR 17.2.
CapMan’s distributable funds amounted to MEUR 56.9 on 31 December 2021. The
dividend would be paid in two instalments.

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.

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/2021-q4-results/. The conference will be held in
English. A replay of the webcast will be available on the company’s website
after the event. Due to the ongoing Covid-19 pandemic, CapMan will not arrange
an in-person conference.

Helsinki, 3 February 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 Financial Statements Bulletin 2021

About CapMan

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 more than €4.5 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, wealth management, and analysis, reporting and back office
services. Altogether, CapMan employs around 160 people in Helsinki, Stockholm,
Copenhagen, Oslo, London and Luxembourg. We are a public company listed on
Nasdaq Helsinki since 2001 and a signatory of the UN Principles for Responsible
Investment (PRI) since 2012. Read more at www.capman.com.

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