CapMan Oyj — Interim / Quarterly Report 2021

Oct 27, 2021

CapMan Plc 1–9 2021 Interim Report

CapMan Plc 1–9 2021 Interim Report

CapMan Plc Stock Exchange Release / 1–9 2021 Interim Report
27 October 2021 at 8:00 a.m. EEST

CapMan Plc 1–9 2021 Interim Report

Results and significant events in January–September 2021:

· Group turnover was MEUR 38.1 1 Jan–30 Sep 2021 (MEUR 29.6 1 Jan–30 Sep 2020)
and increased by 29 per cent.
· Operating profit was MEUR 32.4 (MEUR 2.6).
· Management Company business turnover was MEUR 31.9 (MEUR 22.6). Operating
profit was MEUR 10.0 (MEUR 5.6).*) Carried interest received for the first nine
months of 2021 was MEUR 2.5 (MEUR 0.6).
· Service business turnover was MEUR 6.2 (MEUR 6.8). Operating profit was MEUR
3.0 (MEUR 3.9).*)
· Investment business operating profit was MEUR 23.1 (MEUR -3.1).
· Diluted earnings per share were 15.8 cents (-1.1 cents).
· Capital under management EUR 4.3 billion on 30.9.2021 and increased by EUR
760 million, or 21 per cent from 30.9.2020.
· MEUR 250 new capital under management was raised after the review period in
October.

This stock exchange release is a summary of CapMan Plc’s 1 January–30 September
2021 Interim Report. 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:

”CapMan’s growth and strong result development continued during the third
quarter of the year. Turnover for January–September 2021 was MEUR 38, growth of
29 per cent from the same period last year. Operating profit exceeded MEUR 32
for the first nine months of the year compared to approx. MEUR 3 for the
comparison period last year. Fee profitability was at record levels, fair values
of investments continued to develop favourably and the significance of carried
interest for earnings generation is growing.

Assets under management were EUR 4.3 billion at the end of September 2021. The
increase was more than MEUR 760 million, or more than 21 per cent over the last
12 months. Fundraising for our newest funds proceeds well. After the review
period, we have raised approx. MEUR 250 for our new Residential and Credit funds
as well as CapMan Wealth Services’ new investment programme. We expect to see
continued strong growth in asset under management in the upcoming 12 months.

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 the third quarter of the year and expect
multiple funds to enter into carry during the next six months.

Management Company turnover was MEUR 32 in the first nine months of the year,
growing 41 per cent from the comparison period. Turnover grew due to new assets
under management and carried interest income. The operating profit of the
Management Company business was MEUR 10, growing by approx. 77 per cent from the
comparison period. Operating profit grew due to significant income growth in
combination with controlled cost development.

Service business turnover was MEUR 6 and operating profit MEUR 3 in the first
nine months of 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 increasingly
international business was very profitable. JAY Solutions’ business grew and
developed strongly especially due to the acquisition of new customers as well as
growth in the B2B business.

The fair value changes of our investments were MEUR +24 in the first nine months
of 2021. A significant portion of the fair value change is based on realised
transactions. The positive development is broad-based and includes all our
active strategies. In the comparison period, fair values decreased significantly
due to the market disruption brought on by the Covid-19 pandemic.

We have made additional commitments to sustainability during the year. CapMan
hired its first ESG Director in September in order to continue to develop
processes and set ESG objectives for CapMan Group. CapMan Buyout XI fund has
introduced a sustainability link to its Capital Call Bridge facility, the first
of its kind at CapMan.

Our balance sheet and liquidity were strong. At the end of September, our equity
ratio was over 50 per cent and liquid assets were nearly MEUR 60. The 2021
Annual General Meeting decided to distribute 14 cents/share to shareholders as
dividend and equity repayment. The distribution was implemented in two
instalments in March and September. CapMan’s objective is to pay an annually
increasing dividend to our shareholders. Recent result development and growth
expectations support this objective.”

Joakim Frimodig

CEO, CapMan Plc

Key figures

MEUR 1-9/21 1-9/20

Operating profit 32.4 2.6
Result for the period 26.0 -0.9

Earnings per share, cents 16.2 -1.1
Earnings per share, diluted, cents 15.8 -1.1

% 30.9.21 30.9.20

Return on equity, % 29.9 -1.1
Equity ratio, % 51.0 52.0

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 2021

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
2021. 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 2021.

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

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/2021-10-27-q3/register. 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, 27 October 2021

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 1–9 2021 Interim Report

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 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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