CapMan Group's Interim Report for 1 January - 30 September 2014

CapMan Plc Interim Report - 6 November 2014 at 9:00 a.m. EET

CapMan Group's Interim Report for 1 January - 30 September 2014

Performance and main events during the review period:

  • Group turnover totalled MEUR 23.1 (January-September 2013: MEUR 23.2).
  • Operating profit was MEUR 2.2 (MEUR 4.2).
  • Profit before taxes was MEUR 1.1 (MEUR 3.8) and profit after taxes was MEUR 0.7 (MEUR 3.9).
  • Earnings per share for the review period were 0.0 cents (2.4 cents).
  • The Management Company business recorded an operating profit of MEUR 3.6 (profit of MEUR 0.7).
  • The Fund Investment business recorded an operating loss of MEUR 1.4 (profit of MEUR 3.5).
  • Capital under management as of 30 September 2014 totalled MEUR 3,161.9 (30 September 2013: MEUR 3,172.6).
  • Fundraising for the CapMan Buyout X and the CapMan Russia II funds was finalised and the funds reached final sizes of MEUR 245.0 and MEUR 99.1 respectively.
  • Markus Sjöholm was nominated as Head of CapMan Buyout and member of CapMan Plc's Management Group.
  • After the review period the size of the CapMan Nordic Real Estate fund increased by MEUR 24.6 after the review period, bringing the total fund size to MEUR 190.6.

This stock exchange release is a summary of CapMan Plc's January-September 2014 Interim Report. The complete interim report is available in pdf-format as an attachment to this release, and on the company's website at http://www.capman.com/capman-group/earnings-model-and-financials/result.

Key figures

1-9/14 1-9/13
Turnover, MEUR 23.1 23.2
Operating profit, MEUR 2.2 4.2
Profit before taxes, MEUR 1.1 3.8
Profit for the period, MEUR 0.7 3.9
Earnings / share, cents 0.0 2.4
Diluted earnings / share, cents 0.0 2.4
1-9/14 1-9/13
Return on equity, % p.a. 1.4 6.3
Return on investment,% p.a. 3.5 5.9
Equity ratio, % 56.7 70.3
Net gearing, % 17.6 2.5

Heikki Westerlund, CEO:

"We continued to advance our strategic projects. Our collaboration with Elite Asset Management will open up private equity to a wider customer base. Our long-term investment in international fundraising is also beginning to bear fruit. For example, our Nordic real estate fund has already secured a significant number of investments from investors outside of the Nordics.

The fundraising rounds of our Buyout and Russia funds have been finalised. Buyout focused their resources in Stockholm and Helsinki, and in the near future its operational focus will be on increasing the value of the portfolio. Despite the negative development of the Russian economy, the development of our Russian portfolio companies has remained at a good level on average.

Our fee income and expenses are in balance, and the total carried interest income can still reach a good level this year. The fair value development of our own fund investments has not met our expectations in 2014. During the third quarter, the change is in line with the general stock market development, but some of the portfolio companies are also falling short of their original goals for the year."

CapMan maintains its outlook estimate for 2014:

We estimate our earnings per share to improve significantly from the level achieved in 2013 primarily due to increasing operating profit.

Basis for outlook specified:

Our fees will cover our expenses before possible non-recurring expenses related to acquisitions or larger development projects.

CapMan receives carried interest income from funds as a result of a completed exit in the event that the fund already is in carry or will enter carry due to the exit. Our current portfolio holds several investments that are far in their exit process and we expect to finalise them during 2014. In case the exits will be completed at the end of the year, the carried interest income can be entered either in 2014 or 2015, which could impact our operating profit and outlook estimate for 2014.

The fair value development of our own fund investments will have a substantial impact on our overall result in 2014. We expect disparity in the development of individual portfolio companies and real estate also during 2014 depending on their industry and geographical location. In addition, our portfolio companies and real estate are also influenced by various other factors, among others the general development of industries and local economies, valuation multiples of peer companies, and exchange rates.

Helsinki, 6 November 2014

CAPMAN PLC

Board of Directors

Further information:

Niko Haavisto, CFO, tel. +358 50 465 4125

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 €3.2 billion. CapMan has five key investment partnerships - CapMan Buyout, CapMan Real Estate, CapMan Russia, CapMan Credit and CapMan Public Market - each of which has its own dedicated investment team and funds. Altogether, CapMan employs around 100 people in Helsinki, Stockholm, Moscow, Luxembourg and London. CapMan was established in 1989 and has been listed on the Helsinki Stock Exchange since 2001.

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