Changes in the composition of CapMan Group’s reportable segments

April 28, 2021

CapMan Plc Stock Exchange Release
28 April 2021 at 9.15 a.m. EEST

Changes in the composition of CapMan Group’s reportable segments

CapMan Plc (“CapMan”) will change the composition of its reportable segments to reflect the current structure of the Group business and its income streams. As of January 1, 2021, CapMan will report the CapMan Wealth Service business as part of the Management Company business segment. Prior, the business was reported as part of Service business. CapMan Group’s reportable segments are the Management Company business, Service business and Investment business.

In the updated reporting structure, income from the Management Company business is derived from fee income received from funds, fees from other services closely related to fund management, fees from wealth advisory service (CapMan Wealth Services) and carried interest received from funds. Following the update, turnover from the Management Company business is predominantly derived from services transferred over time and is as such recurring in nature. Turnover for the segment also includes income recognised at a certain point in time.

Following the update, Service business income is derived from fees from CapMan’s procurement service CaPS and fees from reporting, analytics and back-office services provided by JAY Solutions. Turnover from the Service business is predominantly derived from services transferred over time and is as such recurring in nature.

The update to the reporting structure is based on the equal reporting treatment of management fees as well as similarities between fund and asset management and wealth advisory service customers. In addition, both management fees obtained from funds and fees from wealth advisory services are income dependent on assets or capital under management.

Going forward, CapMan no-longer reports interest income and expenses, income taxes, profit for the period or non-current assets at segment level as CapMan’s Management Group does not monitor this information by segment. The information is provided on a Group level.

The composition of other reporting segments remains intact.  Through its Investment business, CapMan invests from its own balance sheet in the private equity asset class and mainly in its own funds. Income in this business segment is generated by realised returns following exits and periodic returns as well as changes in the fair value of unrealised investments.

Other activity includes the corporate functions not allocated to operating segments. These functions include part of the activities of group accounting, corporate communications, group management and costs related to share-based payment. Other also includes the eliminations of the intersegment transactions.

CapMan Group’s financial reporting will be changed accordingly as of the first-quarter interim report 2021. The segment information according to the new segment structure for the comparison year 2020 on a quarterly basis is disclosed in the attachment of this stock exchange release.

For additional information, please contact:

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

CAPMAN PLC

Distribution

Nasdaq Helsinki Ltd
Principal media
www.capman.com

Appendix

Restated comparable segment information for financial year 2020

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 close to €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 150 people in Helsinki, Stockholm, Copenhagen, 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.