CapMan Plc Interim Report – 3 May 2013 at 8.30 a.m. EEST
CapMan Group’s Interim Report for 1 January-31 March 2013
Performance and main events for the review period:
· Group turnover totalled MEUR 6.8 (January – March 2012: MEUR 6.7).
· The Group’s operating profit was MEUR 2.0 (MEUR 2.7).
· The Management Company business recorded an operating profit/loss of MEUR 1.4 (loss of MEUR 0.6). The Fund Investment business recorded an operating profit of MEUR 3.5 (MEUR 3.4).
· Profit before taxes was MEUR 2.7 (MEUR 3.6) and profit after taxes was MEUR 2.6 (MEUR 3.1).
· Profit for the review period was MEUR 2.6 (MEUR 3.1). Earnings per share were 2.3 cents (2.9 cents).
· Capital under management as of 31 March 2013 totalled MEUR 3,250.1 (31 March 2012: MEUR 3,034.5).
· CapMan held first closings of MEUR 50.1 and MEUR 97.2 for the CapMan Nordic Real Estate and CapMan Russia II funds during the review period.
New disclosure method
CapMan Plc has started to follow the disclosure method by FIN-FSA’s Standard 5.2b and distributes its interim report for 1 January-31 March 2013 with this stock exchange release. CapMan Plc’s complete interim report for the period 1 January-31 March 2013 is available in pdf-format as an attachment to this release, in addition to on the company’s website at http://www.capman.com/capman-group/earnings-model-and-financials/result.
Key figures
| 1-3/13 | 1-3/12 | |
| Turnover, MEUR | 6.8 | 6.7 |
| Operating profit, MEUR | 2.0 | 2.7 |
| Profit before taxes, MEUR | 2.7 | 3.6 |
| Profit for the period, MEUR | 2.6 | 3.1 |
| Earnings / share, cents | 2.3 | 2.9 |
| Diluted earnings / share, cents | 2.3 | 2.9 |
| 31.3.13 | 31.3.12 | |
| Return on equity, % | 12.3 | 14.5 |
| Return on investment,% | 10.6 | 13.1 |
| Equity ratio, % | 64.2 | 61.4 |
| Net gearing, % | 25.5 | 22.8 |
*) In line with IFRS standards, the MEUR 29 hybrid bond has been included in equity, also when calculating equity per share. The interest on the hybrid bond (net of tax) for the review period has been included when calculating earnings per share.
Decisions taken by the Annual General Meeting
The Annual General Meeting (AGM) of CapMan Plc was held in Helsinki on 20 March 2013. The AGM approved the annual accounts for the 2012 financial year and discharged the company’s Board of Directors and Chief Executive Officer from liability. The AGM approved all the proposals presented by the Board of Directors to the AGM. The AGM decided, in accordance with the proposal of the Board of Directors, that no dividend will be distributed for the financial year 2012.
The AGM elected six members to the Board of Directors for a term of office expiring at the end of the next AGM. Koen Dejonckheere, Karri Kaitue, Nora Kerppola, Claes de Neergaard, and Heikki Westerlund were re-elected, and Ari Tolppanen was elected as a new member.
PricewaterhouseCoopers Oy, authorized public accountants, was re-elected auditor of the company, with Mikko Nieminen as responsible auditor.
More details on the decisions taken at the meeting can be found in the stock exchange release issued on 20 March 2013.
Niko Haavisto, CEO:
“We achieved important milestones in our business in the first months of 2013. In March, we established the CapMan Nordic Real Estate and CapMan Russia II funds, which provide a good foundation for the future development of our operations. The timing of the first closings coupled with certain one-time expenses impacted the profitability of the Management Company business during the quarter. Management fees are determined based on fund size, and fundraising for our new funds continues. As investors value established fund managers in an uncertain economy, we are confident that our more than 20 years of experience becomes a significant competitive advantage in this environment.
Our funds have been active on the exit front despite a weak M&A market in the beginning of the year. Our turnover increased from the comparable period last year as our funds made a complete exit from MQ Retail AB. In April, our funds agreed to exit Cardinal Foods completely with excellent returns, and the carried interest totalling MEUR 1.5 for CapMan is accounted for as the transaction closes. Our funds’ portfolio companies have continued to develop well and the fair value changes of our own fund investments were positive as a result.
As noted already in February, the ongoing structural changes in the financial markets present us with intriguing M&A opportunities. We are also aiming at lowering our total financing costs through the repayment of our hybrid bond.”
CapMan maintains outlook for 2013:
The development of management fees during 2013 depends on the timing of exits made from current funds and the size and timing of new funds under establishment. We are adjusting our operating costs to match the level of management fees and anticipate that our management fees will cover our expenses as of the second half of 2013.
Our current portfolio holds several investments, which we are ready to exit during 2013. The timing of such exits will impact the results of our Management Company business for 2013 through carried interest income from funds, in the event that the fund is in carry or about to enter carry as a result of the exit.
The result of our Fund Investment business will mainly depend on the value development of investments in those funds, in which CapMan is a substantial investor. We continue our value creation effort in our portfolio companies and believe that the fair values of our fund investments will develop positively during the current year.
We estimate our operating profit to increase from the level obtained in 2012.
Helsinki, 3 May 2013
CAPMAN PLC
Board of Directors
Further information:
Niko Haavisto, CEO and CFO, tel. +358 207 207 583 or +358 50 465 4125
Jerome Bouix, Head of Business Development and Investor Relations, tel. +358 20 720 7558 or +358 40 820 8541
Distribution:
NASDAQ OMX Helsinki
Principal media
www.capman.com
CapMan www.capman.comCapMan Group is one of the leading private equity firms in the Nordic countries and Russia, with assets under management of approximately 3.3 billion. CapMan has five investment partnerships – CapMan Buyout, CapMan Russia, CapMan Credit, CapMan Public Market, and CapMan Real Estate – each of which has its own dedicated investment team and funds. Altogether, CapMan employs 105 people in Helsinki, Stockholm, Oslo, Moscow and Luxembourg. CapMan was established in 1989 and has been listed on the Helsinki Stock Exchange since 2001.
