CapMan Group's Interim Report for 1 January-30 June 2013

CapMan Plc Interim Report 8 August 2013 at 8.30 a.m. EEST

CapMan Group's Interim Report for 1 January-30 June 2013

Performance and main events for the review period:

  • Group turnover totalled MEUR 16.5 (January - June 2012: MEUR 13.2).
  • The Group's operating profit was MEUR 4.0 (MEUR 1.9).
  • Profit before taxes was MEUR 4.3 (MEUR 2.4) and profit after taxes was MEUR 4.3 (MEUR 2.0).
  • Earnings per share for the review period were 3.7 cents (1.0 cents).
  • The Management Company business recorded an operating profit of MEUR 0.3 (loss of MEUR 1.7).
  • The Fund Investment business recorded an operating profit of MEUR 3.7 (MEUR 3.6).
  • Capital under management as of 30 June 2013 totalled MEUR 3,270.2 (30 June 2012: MEUR 3,022.2).
  • CapMan held a second closing at MEUR 206 for the CapMan Buyout X fund in June 2013.
  • CapMan sold part of its Maneq investments for MEUR 14 as planned.
  • Heikki Westerlund has been appointed CEO of CapMan Plc as of 8 August 2013 and Karri Kaitue was elected Chairman of the Board.

This stock exchange release is a summary of CapMan Plc's interim report. The complete interim report for the period 1 January-30 June 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

1-6/13 1-6/12
Turnover, MEUR 16.5 13.2
Operating profit, MEUR 4.0 1.9
Profit before taxes, MEUR 4.3 2.4
Profit for the period, MEUR 4.3 2.0
Earnings / share, cents 3.7 1.0
Diluted earnings / share, cents 3.7 1.0
1-6/13 1-6/12
Return on equity, % p.a. 10.5 4.6
Return on investment,% p.a. 9.1 5.3
Equity ratio, % 67.5 61.2
Net gearing, % 9.4 37.9

Niko Haavisto, CEO and CFO:

"The return to profitability of our Management Company business was due to cost savings and the successful establishment of our new funds, as well as the ability of our investment teams to drive exits even in an uncertain market. Carried interest income impacts the profitability of our operations significantly and was the main reason that our profit for the review period more than doubled from last year.

We strengthened our balance sheet and the financial position of the Group by selling a portion of our Maneq investments. The transaction is part of our preparation to repay the hybrid loan, which is possible in December at the earliest.

The developments in the first six months of 2013 provide a foundation for the balance of management fees and expenses also during the second half of the year."

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, 8 August 2013
CAPMAN PLC
Board of Directors

Further information:
Heikki Westerlund, Chairman of the Board, tel. +358 207 207 504 or +358 50 559 6580
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.com CapMan 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.

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