CapMan Plc 2024 Financial Statements Bulletin

CapMan Plc
Stock Exchange Release / Financial Statements Bulletin
13 February 2025 at 8:00 a.m. EET

CapMan Plc 2024 Financial Statements Bulletin

Results for continuing operations and significant events in 2024:

CapMan has classified CaPS business as a discontinued operation in the income statement and restated the comparison periods’ figures accordingly.

• Assets under management EUR 6.1 billion 31 December 2024 (EUR 5.0 billion 31 December 2023).
• Group turnover was MEUR 57.6 1 January–31 December 2024 (MEUR 49.3 1 January–31 December 2023).
• Fee income was MEUR 53.3 (MEUR 46.2).
• Carried interest was MEUR 4.3 (MEUR 3.1).
• Operating profit was MEUR 16.7 (MEUR –1.2). Comparable operating profit was MEUR 19.0 (MEUR 0.8).
• Fee profit was MEUR 6.9 (MEUR 3.8).
• Diluted earnings per share were 2.8 cents (–1.9 cents). Comparable diluted earnings per share were 4.0 cents (–0.8 cents).
• Diluted earnings per share including discontinued operations were 39.3 cents (0.8 cents).

• In March, CapMan Plc completed the acquisition of Dasos Capital Oy.
• In June, CapMan announced final tender offer results for its outstanding bond due 2025 and issued MEUR 60 sustainability-linked bond.
• In October, CapMan divested its service business CapMan Procurement Services (CaPS) Ltd for MEUR 75. CaPS business is classified as a discontinued operation in the income statement and the comparison periods’ figures are restated accordingly.
• The Board of Directors expects the dividend distribution for 2024 to be EUR 0.14 per share, of which EUR 0.07 cents per share is proposed to be paid on 3 April 2025 and 0.07 cents per share following a Board resolution in September.

This stock exchange release is a summary of CapMan Plc’s Financial Statements Bulletin for the period 1 January–31 December 2024. The complete report is available in pdf-format as an attachment to this release and on the company’s website at https://capman.com/shareholders/result-reports/.

CEO’s comment:

Year 2024 ended with a strong fourth quarter, and we recorded substantial growth in our key financial metrics for the full year. Assets under management continued to grow in the fourth quarter, reaching EUR 6.1 billion with a 22% increase during the year. Fee income for 2024 increased 15% and fee profit 81% of which organic growth 22%. The improvement in profitability demonstrates the scalability of our real assets focused business model.

Several strategic milestones achieved

In addition to solid results, we have completed several significant strategic milestones during the year. The acquisition of Dasos Capital and formation of CapMan Natural Capital in March was a key milestone in our growth strategy and broadens our real assets business.

The divestment of service business CaPS in October allows us to focus resources to accelerate the growth of our asset management business, which is at the core of our strategy and where we have several large growth initiatives ongoing. In connection with the divestment, it was announced that CapMan’s Board of Directors expects a total dividend of EUR 0.14 per share for year 2024, which is now being proposed to the Annual General Meeting to be held 25 March 2025.

High investment activity despite uncertainty in the market

The increased geopolitical uncertainty in several areas has been reflected in the operating environment in the past year. We have maintained a high activity level in our portfolio, driving performance improvements in our assets as well as capturing opportunities to deploy capital through thirteen new platform investments, and ensured liquidity to our fund investors through seven exits during the year. In the fourth quarter, CapMan Infra invested in district heating and electricity network infrastructure in Hamina, and in a heat-as-a-service operator and bioenergy producer ProPellet. CapMan Special Situations invested in Edita Prima, a leading provider of comprehensive customer communications services.

Despite the low activity in the Finnish real estate market, we benefit from having a Nordic portfolio and a mix of segments in our offering and have therefore continued to have good transaction activity and liquidity in our funds. Looking across the Nordic markets, we continue to see buyer interest for our assets, and interesting new investment opportunities.

During 2024 we raised EUR 570 million of new capital, with the largest contributions from the successful final closes in Nordic Infrastructure II and Growth III funds, as well as capital intake in Real Estate open-ended funds and mandates. We continue to drive the growth through all three levers: scaling existing products, introducing new products, as well as advancing selected acquisitions. During 2025 we expect to hold the first close for the real estate flagship fund Nordic Real Estate IV, with a target fund size of EUR 750 million, and start the fundraising for the next Natural Capital flagship fund.

I am excited to share more about our strategy at the Capital Markets Day, which will be held 11 March 2025.

Pia Kåll

CEO, CapMan Plc

Key figures

Long-term financial objectives

CapMan’s distribution policy is to pay sustainable distributions that grow over time. CapMan’s objective is to distribute at least 70% of the Group’s profit attributable to equity holders of the company excluding the impact of fair value changes, subject to the distributable funds of the parent company. In addition, CapMan may pay out distributions accrued from investment operations, taking into consideration foreseen cash requirements for future investments.

The combined growth objective for the Management Company and Service businesses is more than 15% p.a. on average. The objective for return on equity is more than 20% p.a. on average. CapMan’s equity ratio target is more than 50%.

CapMan expects to achieve these financial objectives gradually and key figures are expected to show fluctuations on an annual basis considering the nature of the business.

Outlook estimate for 2025

CapMan’s objective is to improve results in the long term, taking into consideration annual fluctuations related to the nature of the business. 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 asset-specific development and exits from 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. For these reasons, CapMan does not provide numeric estimates for 2025.

CapMan estimates assets under management to grow in 2025. The company estimates fee profit also to grow in 2025. These estimations do not include possible items affecting comparability.

Result webcast today at 9.00 a.m. EET

CapMan’s management will present the result for the review period in a webcast to be held at 9.00 a.m. EET. Please access the webcast at https://capman.videosync.fi/q4-2024. The conference will be held in English. A replay of the webcast will be available on the company’s website after the event.

CAPMAN PLC
Board of Directors

Contact details:
Atte Rissanen, CFO, CapMan Plc, tel. +358 50 040 5732

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

Appendix: CapMan Plc 2024 Financial Statements Bulletin

About CapMan

CapMan is a leading Nordic private asset expert with an active approach to value creation and €6.1 billion in assets under management. As one of the private equity pioneers in the Nordics we have developed hundreds of companies and assets creating significant value for over three decades. Our objective is to provide attractive returns and innovative solutions to investors by enabling change across our portfolio companies. An example of this is greenhouse gas reduction targets that we have set under the Science Based Targets initiative in line with the 1.5°C scenario and our commitment to net-zero GHG emissions by 2040. We have a broad presence in the unlisted market through our local and specialised teams. Our investment strategies cover real estate and infrastructure assets, natural capital and minority and majority investments in portfolio companies. We also provide wealth management solutions. Altogether, CapMan employs around 200 professionals in Helsinki, Jyväskylä, Stockholm, Copenhagen, Oslo, London and Luxembourg. We are listed on Nasdaq Helsinki since 2001. www.capman.com