CapMan - Interim report (Q1 and Q3)

CapMan Plc 1-3 2024 Interim Report

CapMan Plc
Stock Exchange Release / Q1 Interim Report
3 May 2024 at 8:00 a.m. EEST

CapMan Plc 1-3 2024 Interim Report

Results and significant events in 1-3 2024:

  · Assets under management EUR 5.7 billion 31.3.2024 (EUR 5.0 billion
31.12.2023).
  · Group turnover was MEUR 18.4 1 January-31 March 2024 (MEUR 15.1 1 January-31
March 2023).
  · Fee income was MEUR 14.9 (MEUR 15.1).
  · Carried interest was MEUR 3.5 (MEUR -0.0).
  · Operating profit was MEUR 7.3 (MEUR 0.5). Comparable operating profit was
MEUR 8.6 (MEUR 0.5).
  · Fee profit was MEUR 2.7 (MEUR 2.9).
  · Diluted earnings per share were 1.5 cents (0.2 cents). Comparable diluted
earnings per share were 2.2 cents (0.2 cents).
  · In March, CapMan Plc completed the acquisition of Dasos Capital Oy.

This stock exchange release is a summary of CapMan Plc's Interim Report for the
period 1 January-31 March 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:

Despite a continued challenging market environment, CapMan has had a strong
start to the year. At the end of the first quarter assets under management were
at EUR 5.7 billion, up 13% vs year end. In addition, we have during April
successfully completed two flagship fundraisings. Turnover and operating profit
grew, boosted by carried interest from our credit fund.

Turnover grew by 22% during reporting period

During the first quarter our turnover grew by 22% compared to the same period
last year. The growth was mainly driven by carried interest from our credit fund
which exited two of its investments during the review period. Fee profit was
slightly below last year's level, but the visibility for the development for the
remainder of the year has increased with the final closings of Nordic
Infrastructure II fund at target size and Growth Equity III fund above target
size. In addition to these, fee profit growth is supported by the acquisition of
Dasos Capital that was completed on March 1st. The profit impact of the
acquisition and the completed fundraisings will be fully visible in the result
from the second quarter onwards.

Our balance sheet investments also contributed to the strong result through a
+1.5% positive fair value change. The fair value development was primarily
driven by positive development in CapMan's private equity funds. While the
external fund investments also had a positive development during the first
quarter, the current market environment still gives reason to prepare for
volatility going forward especially in the venture capital funds.

Successful fundraisings and strong growth in assets under management

Assets under management grew by 13% to EUR 5.7 billion in the first quarter of
the year. In addition, we have during April raised over 110 million euros of new
capital to our Infrastructure and Growth funds.

In beginning of March, we closed the acquisition of Dasos Capital and
established Natural Capital as a new investment area for CapMan. Dasos Capital
has continued fundraising to their open-ended fund Dasos Sustainable Forest and
Wood III. At the end of March CapMan Natural Capital had a total of EUR 714
million assets under management.

The CapMan Nordic Infrastructure II fund held its final close in late April
reaching EUR 375 million, which is a doubling in size compared to the
Infrastructure I fund. The investment strategy is attractive especially for
international institutional investors, and around 70% of the capital in the fund
comes from outside the Nordics.

The CapMan Growth Equity III fund held a first close above target size in
February, and a final close at hard cap of EUR 130 million in April. The fast
fundraising and the high quality of the investor base is a testament to the
stellar performance of the strategy. In April, the fund also announced its first
investment into environmental technology company Tana.

At the end of 2023 we established the Social Real Estate fund, which has already
completed two investments in Finland and Denmark. Fundraising for the fund
continues, with the target to reach 500 million euros over the coming years. The
fundraising for real estate's flagship fund Nordic Real Estate IV has started,
and we target a first close during 2024 and a target size of 750 million euros
at the final close of the fund.

Being part of the transition towards a more sustainable society

We continue to participate in the transition towards a sustainable society
through active ownership in our investments, where we systematically integrate
the sustainability and financial value creation plans. We have published our
Investments Sustainability Report for 2023. The report is prepared in accordance
with GRI and gives information about the sustainability work done in our
holdings across real estate, infrastructure, private equity and credit funds.

Sincerely,

Pia Kåll

CEO, CapMan Plc

Key figures

MEUR                                           1-3/24  1-3/23

Operating profit                                  7.3     0.5
Items impacting comparability, total              1.3       -
Comparable operating profit                       8.6     0.5

Result for the period                             4.9     0.8
Items impacting comparability, total              1.2       -
Comparable result for the period                  6.2     0.8

Earnings per share, cents                         1.5     0.2
Items impacting comparability, cents              0.8       -
Comparable earnings per share, cents              2.3     0.2

Earnings per share, diluted, cents                1.5     0.2
Items impacting comparability, cents              0.7       -
Comparable earnings per share, diluted, cents     2.2     0.2

%                                    31.3.24  31.3.23

Return on equity, % p.a.                15.3      2.4
Comparable return on equity, % p.a.     19.1      2.4
Equity ratio, %                         50.1     44.1

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 per cent 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 per cent p.a. on average. The objective for return on equity is
more than 20 per cent p.a. on average. CapMan's equity ratio target is more than
50 per cent.

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 2024

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 2024.

CapMan estimates assets under management to grow in 2024. The company estimates
fee profit also to grow in 2024. These estimations do not include possible items
affecting comparability.

Result webcast today at 9.30 a.m. EEST

CapMan's management will present the result for the review period in a webcast
to be held at 9.30 a.m. EEST. Please access the webcast at
https://capman.videosync.fi/q1-2024. The conference will be held in English. A
replay of the webcast will be available on the company's website after the
event.

Helsinki, 3 May 2024

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 1-3 2024 Interim Report

About CapMan

CapMan is a leading Nordic private asset expert with an active approach to value
creation and over €5.7 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. Our service
business includes procurement services. 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

Attachments:

CapMan_1-3 2024_Interim_Report.pdf

04299912.pdf