CapMan - Financial Statement Release

CapMan Plc's 2016 results improved significantly

CapMan Plc  Financial Statements Bulletin                            2 February
2017 at 8.30 a.m. EET

CapMan Plc's 2016 results improved significantly

Performance and main events for the financial year 1 January - 31 December 2016:

  * Group turnover totalled MEUR 26.7 (1 January - 31 December 2015: MEUR
    31.8). Comparable adjusted turnover was MEUR 29.0 (MEUR 31.8)
  * Operating profit was MEUR 18.7 (MEUR 9.3). Comparable adjusted operating
    profit was MEUR 14.5 (MEUR 10.1).
  * Profit before taxes was MEUR 15.5 (MEUR 6.4).
  * Profit after taxes was MEUR 15.3 (MEUR 6.1). Comparable adjusted profit
    after taxes was MEUR 10.9 (MEUR 6.7).
  * Diluted earnings per share for the year were 16.1 cents (5.8 cents).
    Comparable adjusted diluted earnings per share were 11.2 cents (6.5 cents).
  * CapMan's Board of Directors proposes a dividend of 9 cents per share to be
    paid for 2016.
  * CapMan establishes a new investment area: CapMan Infra
  * Juha Mikkola, responsible for Growth Equity, to join CapMan's Management
    Group



This stock exchange release is a summary of CapMan Plc's 2016 Financial
Statements Bulletin. The complete report is available in pdf-format as an
attachment to this release and on the company's website at
www.capman.com/newsroom/financial-reports/ .



Key figures

                                                        1-12/16    1-12/15
--------------------------------------------------------------------------
 Turnover, MEUR                                            26.7       31.8

 Comparable adjusted turnover, MEUR                        29.0       31.8

 Operating profit, MEUR                                    18.7        9.3

 Comparable adjusted operating profit, MEUR                14.5       10.1

 Profit for the period, MEUR                               15.3        6.1

 Comparable adjusted profit for the period, MEUR           10.9        6.7

 Diluted earnings / share, cents                           16.1        5.8

 Comparable adjusted diluted earnings / share, cents       11.2        6.5



                                                     31.12.2016 31.12.2015
--------------------------------------------------------------------------
 Return on equity, % p.a.                                  14.7        9.3

 Return on investment, % p.a.                              10.9        8.0

 Equity ratio, %                                           56.6       43.7

 Net gearing, %                                            14.5       72.9




Heikki Westerlund, CEO:

"We accomplished a significant strategic goal at the end of 2016 as the
acquisition of Norvestia was completed according to plan and schedule.

Our result development has been good during the year. Our comparable earnings
per share were 11 cents and increased by approx. 70 per cent year-over-year. The
turnover from services has grown approx. 80 per cent in line with expectations
and we expect strong revenue growth from services also in the future. Upcoming
real estate funds and the new investment area investing in infrastructure assets
support our growth objectives. Our balance sheet strengthened by Norvestia is
part of our broader growth strategy.

We are currently realising synergies from the combination with Norvestia. We
have commenced procedures to redeem the hybrid bond issued in 2013. When
redeemed, our financial expenses will be reduced. Growth equity investment is
now one of CapMan's core investment strategies and we will continue the activity
while strengthening Norvestia's growth equity team. We are also investigating
options to commercialise Norvestia's strong market portfolio know-how. We expect
to realise the synergies fully starting from 2018.

CapMan transferred to the Mid-Cap category on Nasdaq Helsinki in the beginning
of the year. The total return of the stock has been approx. 15 per cent p.a. for
the past four years and trading volume has picked up significantly during the
last year. I want to warmly welcome Norvestia's former shareholders as part of
CapMan's more than 11,000-strong shareholder base."



Financial objectives and outlook estimate for 2017

CapMan renewed its financial objectives at the end of 2016. The growth objective
for Management Company and Services business is more than 10 per cent p.a. on
average. The objective for return on equity is more than 20 per cent p.a. on
average. The objective for net gearing, that is ratio of net interest bearing
debt to equity, is a maximum of 40 per cent on average. CapMan's objective is to
pay at least 75 per cent of earnings per share as dividend.

CapMan expects to achieve these financial objectives gradually and key figures
are expected to show seasonality. CapMan expects fees from services to have a
larger impact on results from the Management Company and Services business in
2017. The Management Company and Services business is profitable before carried
interest income and any possible items affecting comparability. The integration
of Norvestia and other growth initiatives will generate expenses in 2017.

The return on CapMan's investments have a substantial impact on CapMan's overall
result. The development of industries and local economies, inflation
development, valuation multiples of peer companies, exchange rates and various
other factors outside of CapMan's control influence fair value development of
CapMan's overall investments in addition to company and real estate specific
development.

CapMan's objective is to improve results longer term, taking into account the
seasonality affecting services and the Investment business. For these and other
above mentioned reasons, CapMan does not provide numeric estimates for 2017.



Items affecting comparability and alternative performance measures

CapMan uses alternative performance measures to denote the financial performance
of its business and to improve the comparability between different periods.
Alternative performance measures do not replace performance measures in
accordance with the IFRS and are reported in addition to such measures.
Alternative performance measures, as such are presented, are derived from
performance measures as reported in accordance with the IFRS by adding or
deducting the items affecting comparability and they will be nominated as
adjusted.

Items affecting comparability are, among others, material items related to
mergers and acquisitions or major development projects, material gains or losses
related to the acquisition or disposals of business units, material gains or
losses related to the acquisition or disposal of intangible assets, material
expenses related to decisions by authorities and material gains or losses
related to reassessment of potential repayment risk to the funds.

 MEUR                                                           1-12/16 1-12/15
-------------------------------------------------------------------------------


 Turnover                                                          26.7    31.8

 Items affecting comparability

 Reassessment of potential repayment risk to the funds              2.3

 Items affecting comparability, total                               2.3       0

 Adjusted turnover                                                 29.0    31.8



 Operating profit                                                  18.7     9.3

 Items affecting comparability

 Items related to the acquisition of Norvestia, of which:          -7.1     0.8

 gain from a bargain purchase                                     -13.9

 loss from the remeasurement of previous ownership at fair          4.0
 value

 transaction costs                                                  2.8     0.8

 Reassessment of potential repayment risk to the funds              2.3

 Write-down of a value-added tax receivable                         1.0

 Insurance compensations                                           -0.3

 Items affecting comparability, total                              -4.2     0.8

 Adjusted operating profit                                         14.5    10.1



 Profit for the period                                             15.3     6.1

 Items affecting comparability

 Items related to the acquisition of Norvestia                     -7.2     0.6

 Reassessment of potential repayment risk to the funds              1.8

 Write-down of a value-added tax receivable                         1.3

 Insurance compensations                                           -0.2

 Items affecting comparability, total                              -4.4     0.6

 Adjusted profit for the period                                    10.9     6.7



 Earnings per share, cents                                         16.2     5.9

 Items affecting comparability, cents                              -5.0     0.7

 Adjusted earnings per share, cents                                11.2     6.6



 Earnings per share, diluted, cents                                16.1     5.8

 Items affecting comparability, cents                              -4.9     0.7

 Adjusted earnings per share, diluted, cents                       11.2     6.5






Press, analyst and investor conference today at 12.00 p.m. EET

CapMan will hold a press, analyst and investor conference today, on2 February
2017, at 12.00 p.m. at CapMan's new head office in Helsinki, address
Ludviginkatu 6, 4 fl. CapMan's CEO Heikki Westerlund and CFO Niko Haavisto will
present at the conference. The presentation material is available at CapMan's
website at the beginning of the event. The conference will be held in Finnish.
Welcome!



Helsinki, 2 February 2017
CAPMAN PLC
Board of Directors



Further information:
Niko Haavisto, CFO, tel. +358 50 465 4125



Distribution:
NASDAQ Helsinki
Principal media
www.capman.com



Appendix: CapMan Plc Financial Statements Bulletin 2016



CapMan www.capman.com


CapMan is a leading Nordic investment and specialised asset management company.
As one of the Nordic private equity pioneers we have actively developed hundreds
of companies and real estate and thereby created substantial value in these
businesses and assets over the last 25 years. CapMan has today 100 private
equity professionals and manages €2.7 billion in assets. We mainly manage the
assets of our customers, the investors. We also make direct investments from our
own balance sheet in areas without an active fund. Our objective is to provide
attractive returns and innovative solutions to investors and value adding
services to professional investment partnerships, growth-oriented companies and
tenants. Our current investment strategies cover Buyout, Growth Equity, Real
Estate, Russia, Credit and Infrastructure. We also have a growing service
business that currently includes fundraising advisory, procurement activities
and fund management.


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Attachments:

CapMan_Financial_Statements_Bulletin_2016_ENG_020217_Final.pdf