Interim Financial Report
Q3 2007
Translation
Q3 2007
Contents
1. Summary ... 2
2. Capinordic Group key figures and ratios ... 3
3. Developments in Q3 2007 ... 5
Results of the Capinordic Group... 5
Capinordic in Denmark ... 5
Banking ... 5
Other activities – Capinordic Property Management A/S... 6
Capinordic in Sweden... 7
Investment Services ... 7
Asset Management ... 7
Focal points as a consequence of growth strategy ... 8
Latest acquisitions and their integration ... 8
Bank branch in Sweden ... 9
Investment management company in Denmark ... 9
4. Prospects... 9
5. Events after the end of Q3 2007 ... 10
Final acquisition of Steffen Rønn Fondsmæglerselskab A/S ... 10
Final acquisition of Dansk O.T.C. and Dansk AMP... 10
Conditional acquisition of BioFund Management OY... 10
Implementation of a share option programme ... 10
6. Major decisions by the Supervisory Board ... 11
Capital increases in Capinordic A/S... 11
7. Company information... 12
8. The Capinordic share... 13
9. Management statement ... 14
10. Financial statements of the Capinordic Group ... 15
Accounting policies... 15
Income statement for the period ended 30 September 2007 ... 16
Balance sheet at 30 September 2007... 17
Statement of changes in equity at 30 September 2007 (Group) ... 19
Statement of changes in equity at 30 September 2007 (Parent Company) ... 20
Q3 2007
Capinordic A/S
1. Summary
References to ‘the Company’ are references to Capinordic A/S. References to ‘the Group’ are
references to the Capinordic Group. The Interim Financial Report has not been audited.
For Q3 2007, Capinordic A/S reports:
that the Group has realised its expectations for the period under review;
that the Group maintains its expectation of achieving a profit before amortisation, depreciation,
impairment and tax at a level of DKK 150m;
that the Group profit before amortisation, depreciation, impairment and tax for Q1-Q3 2007
amounts to DKK 101m and the profit after tax amounts to DKK 59m;
that the Group profit before amortisation, depreciation, impairment and tax for Q3 2007
amounts to DKK 45m and the profit after tax amounts to DKK 23m;
that the acquisition of Nordisk Fondservice AB became final on 7 August 2007. Nordisk
Fondservice AB has been included in the consolidated financial statements as from that date.
The purchase price was DKK 276m;
that the merger between Capinordic Bank A/S and Proviso Fondsmæglerselskab A/S became
final on 28 August 2007. The merger strengthens the Private Banking business area;
that Keops A/S has reduced its ownership interest in Capinordic A/S as an element of a
structured sale. At 20 November 2007, Keops A/S holds a total of 12.44% of the share capital;
that the acquisition of Steffen Rønn Fondsmæglerselskab A/S became final on 11 October
2007, and that the company will be included in the consolidated financial statements as from
that date. The purchase price was DKK 138m;
that the acquisition of Dansk O.T.C. Fondsmæglerselskab A/S became final on 12 October
2007, and that the company will be included in the consolidated financial statements as from
that date. The purchase price was DKK 95m;
that on 25 October 2007 Capinordic A/S sold its shareholding in ITH Industri Invest A/S as
part of the Group’s corporate finance activities;
that a conditional agreement was concluded on 12 November 2007 on the acquisition of
BioFund Management OY. The purchase price has been fixed at DKK 67m. The acquisition is
expected to become final before 21 December 2007;
that the Supervisory Board decided on 20 November 2007 to implement a share option
programme.
Comment by Lasse Lindblad, CEO:
“The Capinordic Group focuses on high-margin business areas
and profitable customer segments. Over the past two years we
have made a number of strategic acquisitions. We now focus on
strengthening the basis which is to generate our organic growth.
At the same time, we concluded various extensive corporate
finance assignments in Q3.
In Q3 2007 alone, we have earned DKK 45m, and we have a
strong pipeline for Q4 2007. Historically, Capinordic has also had
good earnings in the fourth quarter of the year.”
Additional information:
Lasse Lindblad
CEO
Mobile: +45 4094 0708
Telephone: +45 8816 3000
Fax: +45 8816 3003
E-mail:
[email protected]
Q3 2007
2. Capinordic Group key figures and ratios
Key figures, income statement
Q3
Q3
Year to date
Year to date
Year
DKK '000
2007
2006
2007
2006
2006
Interest income ...
23,692
6,696
57,327
8,039
20,987
Interest expenses ...
-6,658
-757
-16,356
-1,066
-2,785
Fee and commission income ...
40,404
39,101
108,996
59,852
147,609
Net interest and fee income ...
49,396
43,628
137,603
61,840
155,720
Other operating income ...
12,512
2,876
49,365
7,644
8,529
Staff costs and administrative expenses ...
-51,115
-17,975
-141,258
-32,753
-81,204
Profit before amortisation, depreciation, impairment and tax ...
44,562
29,165
100,605
36,954
83,155
Profit before tax ...
32,395
22,713
68,671
28,564
60,813
Net profit for the period ...
22,798
16,430
59,126
20,632
46,885
Key figures, balance sheet
DKK '000
30.09.2007
30.09.2006
30.09.2007
30.09.2006
31.12.2006
Cash and demand deposits
with central banks ...
30,155
73
30,155
73
22,099
Receivables from credit institutions and central banks ...
320,325
660,103
320,325
660,103
566,844
Loans, advances and other receivables at amortised cost ...
827,262
219,893
827,262
219,893
440,289
Intangible assets ...
1,120,619
453,794
1,120,619
453,794
541,897
Total assets ...
3,166,613
1,451,634
3,166,613
1,451,634
1,792,032
Payables to credit institutions and central banks ...
253,561
0
253,561
0
46,663
Deposits and other payables ...
510,479
66,406
510,479
66,406
203,382
Share capital ...
56,013
42,467
56,013
42,467
42,467
Total equity ...
2,143,657
1,300,126
2,143,657
1,300,126
1,399,561
Total liabilities and equity ...
3,166,613
1,451,634
3,166,613
1,451,634
1,792,032
Key figures, cash flow statement
Q3
Q3
Year to date
Year to date
Year
DKK '000
2007
2006
2007
2006
2006
Cash flow from operating activities ...
-86,088
285,309
17,572
-100,519
-180,375
Cash flow from investing activities ...
-439,062
-33,842
-1,160,262
-484,114
-590,514
Cash flow from financing activities ...
88,040
-5,495
697,329
1,231,188
1,304,043
Q3 2007
Capinordic A/S
Capinordic Group key figures and ratios (continued)
Ratios
Q3
Q3
Year to date
Year to date
Year
2007
2006
2007
2006
2006
Equity ratio ...
67.70%
89.56%
67.70%
89.56%
78.10%
Return on equity ...
4.33%
5.03%
4.46%
4.09%
6.48%
Capital base ...
999,640
830,539
999,640
830,539
856,672
Capital adequacy ratio ...
58.74
183.04
58.74
183.04
114.07
Average number of employees ...
195
48
195
21
44
Per share ratios
Q3
Q3
Year to date
Year to date
Year
2007
2006
2007
2006
2006
Average number of shares ('000) ...
109,934
84,935
100,140
59,630
61,299
Share options issued ('000) ...
1,992
793
1,992
793
1,992
Earnings per share basic (EPS-B) ...
0.21
0.19
0.60
0.35
0.77
Diluted earnings per share (EPS-D) ...
0.21
0.19
0.59
0.34
0.77
Cash flow per share (CFPS) ...
-0.78
3.36
0.18
-1.69
-2.94
Dividends per share ...
0.00
0.00
0.00
0.00
0.00
Book value per share, end of period, DKK ...
19.14
15.31
19.14
15.31
15.63
Share price, year-end, DKK, cf. OMX Nordic Exchange Copenhagen ..
23.50
23.00
23.50
23.00
30.10
Q3 2007
3. Developments in Q3 2007
The following paragraphs review significant events and developments recorded in Q3 2007.
Results of the Capinordic Group
The Group profit before amortisation, depreciation, impairment and tax for Q1-Q3 2007 amounted to
DKK 101m, of which the profit for Q3 amounted to DKK 45m. By comparison, Group profit before
amortisation, depreciation, impairment and tax for Q1-Q3 2006 amounted to DKK 37m, of which the
profit for Q3 amounted to DKK 29m.
The Group thus maintained a high earnings level despite its strong expansion in 2007. The Group’s
gross income rose from DKK 75m to DKK 284m as compared with 2006, or almost a quadrupling of
the gross income.
After tax, the Group profit for Q1-Q3 2007 was DKK 59m as compared with DKK 21m for the same
period of 2006.
In Q3, the Group’s corporate finance assignments have made a particularly positive contribution to
Group earnings.
Capital structure and capital adequacy
The Group’s equity for the period ended 30 September 2007 was DKK 2,144m. The Group’s capital
base less deductions for the period ended 30 September 2007 was DKK 1,000m and the capital
adequacy ratio was 58.74.
Capinordic in Denmark
The development in Group activities in Denmark was satisfactory.
DKK ‘000
Year to date 2007
Year to date
2006*
Year
2006*
Net interest and fee income
98,833
49,313 139,123
Profit before amortisation, depreciation,
impairment and tax
89,042
30,841
86,084
Profit after tax for the period
55,027
19,647
50,370
* All Danish activities of the Group commenced in 2006.
The Group’s net interest and fee income in Denmark rose notably compared with the same period last
year. The increase in the Group’s Danish activities is mainly attributable to the setting up of Capinordic
Bank A/S in H2 2006 and the Group’s acquisition of Proviso Fondsmæglerselskab A/S in Q2 2006.
In Q3 2007, particularly the Group’s activities within corporate finance have made a positive
contribution to Group earnings in Denmark.
Banking
The Group’s banking activities in Q3 2007 were satisfactory. The return for Private Banking customers
with portfolio management agreements was higher than the development in comparable indices.
Likewise, Markets saw a positive development and thus also in Q3 experienced both an increase in
turnover and an increasing interest in the bank’s analyses. The expansion of the product range by
interest and currency products in Markets also contributed to an improved position for Capinordic Bank
in the securities trading field.
Q3 2007
Capinordic A/S
In Q3, the Capinordic Group had substantial income in connection with the completion of a number of
major corporate finance assignments. The scope of the corporate finance assignments varies
substantially, particularly in terms of earnings, duration and use of resources.
The listing of Ikast/Bording Elite Håndbold A/S was effected in Q3 2007, and direct placements of new
shares were also made for companies already listed. Moreover, various facilitation assignments were
completed as well as structured funding projects, which are also offered to the Group’s Private
Banking customers.
The Capinordic Group carries out portfolio investments as part of its corporate finance activities.
Examples of this type of investments are ITH Industri Invest A/S, Euroinvestor.com A/S and Aktiebog
Danmark A/S.
Portfolio investments are an integral part of the aggregate activities of Capinordic. For the purpose of
the Group’s own value generation, Capinordic thus makes targeted investments through limited
ownership. In that connection, Capinordic is a business partner and takes an active part by supplying
management expertise, procuring capital or assisting in IPOs.
The income from these assignments is not accrued as it is in fact only realised at the completion of the
corporate finance assignment. Similarly, the type of income realised by corporate finance activities
varies. Accordingly, the Group has had income in Q3 from corporate finance assignments both in the
form of ‘fee and commission income’ and ‘capital gains on securities’.
On 25 October 2007, Capinordic A/S sold its shareholding in ITH Industri Invest A/S as part of these
activities. At 30 June 2007, the portfolio investments came to DKK 181m, or 18% of the Group’s base
capital.
Moreover, the merger between Capinordic Bank A/S and Proviso Fondsmæglerselskab A/S became
final on 28 August 2007. The merger strengthens the Private Banking business area. The actual
merger has no effect on the Group’s revenue, results, equity or number of employees.
Other activities – Capinordic Property Management A/S
Capinordic Property Management A/S manages the association Capee fmba., which has acquired an
attractive portfolio of 70 Italian properties. The acquisition became final after completion of a
satisfactory due diligence review. With this investment, the value of the association’s property portfolio
is DKK 2,147m.
At the OMX Nordic Exchange Copenhagen, Capee fmba. will thus be the largest independent
association to invest in real property.
All the properties of the portfolio are let to Telecom Italia. The leases cannot be terminated by either
party until the end of 2021, when Telecom Italia has an option to extend the leases by six years more.
The rent is adjusted every year by 1.43%, and Telecom Italia has a duty to take care of both internal
and external maintenance and to pay other operating expenses.
Q3 2007
Capinordic in Sweden
The development in Group activities in Sweden was satisfactory. Results are affected by costs for
setting up a bank branch, implementation of acquisitions and their integration. The increase in the
Group’s net interest and fee income in Sweden compared with the same period in 2006 is mainly due
to the acquisition and consolidation of Monetar Pensionsförvaltning AB and Nordisk Fondservice AB.
In connection with the acquisition of Nordisk Fondservice AB, and to ensure exploitation of the positive
synergies, efficient decision-making processes and an anchoring of Group interests in the Swedish
subsidiaries, the companies Nordisk Fondservice AB, Monetar Pensionsförvaltning AB and Unitfond
AB have elected the same supervisory board.
The Group has a satisfactory inflow of both the number of customers and assets under management.
The effect of this growth is expected to impact on the consolidated results as from 2008.
DKK ‘000
Year to date 2007
Year to date 2006
Year
2006
Net interest and fee income
38,770
12,527
16,597
Profit before amortisation, depreciation,
impairment and tax
1,751
1,470
1,503
Profit after tax for the period
(3,765)
985
948
Investment Services
Capinordic A/S acquired Monetar Pensionsförvaltning AB finally on 18 January 2007 and Nordisk
Fondservice AB finally on 7 August 2007.
Monetar Pensionsförvaltning AB manages premium pension products (PPM), and Nordisk
Fondservice AB mainly manages unit-linked insurance products.
Nordisk Fondservice AB and Unitfond AB have identical business models and have therefore started
collaborating closely under a joint management with positive results. Nordisk Fondservice AB and
Monetar Pensionsförvaltning AB have started collaborating on product development and optimisation
of synergies. In 2008, Monetar Pensionsförvaltning AB thus expects to launch unit-linked insurance
policies as part of its product range.
The highly positive growth of both Nordisk Fondservice AB and Monetar Pensionsförvaltning has been
maintained since the acquisition. Returns on the companies’ portfolios have been satisfactory relative
to comparable indices.
Asset Management
Capinordic Fonder AB offers management in seven investment funds of the ‘fund-of-funds’ type,
interest rate funds and equity funds. Capinordic Fonder AB caters for private, corporate as well as
institutional investors. Capinordic Fonder AB has seen a positive development and now also offers a
number of its funds through the PPM system.
The development in Capinordic Fonder AB has been satisfactory. The return has been satisfactory
compared with the development in relevant indices. Moreover, the inflow of new customers has also
been satisfactory. Capinordic Fonder AB has concluded a number of agreements with Nordnet,
Avanza and others on collaboration and distribution of the company’s funds.
The collaboration with the Group’s other Swedish subsidiaries on the amalgamation and optimisation
of the Group’s asset management progresses in a very satisfactory way. The centralisation has thus
been implemented, and a change of management has taken place in Capinordic Fonder as an
element of this process.
Q3 2007
Capinordic A/S
Focal points as a consequence of growth strategy
The Group’s growth strategy is based on a combination of acquisitions, organic growth and strategic
alliances. Based on the Group’s growth strategy, the Group focal points were:
Acquisitions and their integration
Setting up a bank branch in Sweden
Launch of investment management company in Denmark
Latest acquisitions and their integration
In Q3, Capinordic A/S particularly focused on:
1. Nordisk
Fondservice
AB
2. Steffen Rønn Fondsmæglerselskab A/S
3. Dansk O.T.C. Fondsmæglerselskab A/S (Dansk O.T.C.)
The Capinordic Group after completion of these acquisitions
1
:
Nordisk Fondservice AB
Nordisk Fondservice AB was founded in 1999 and manages unit-linked insurance policies in Sweden.
Particularly since 2005, the company has realised significant growth. Nordisk Fondservice AB sells its
services through a distribution network consisting of more than 1,000 independent financial advisors
(insurance brokers). Nordisk Fondservice AB uses a specially developed and strong innovative IT
platform to manage its relations with customers, insurance brokers and alliance partners. In
combination with Unitfond AB and Monetar Pensionsförvaltning AB, Nordisk Fondservice AB
represents a major market share in the Swedish market for investment and savings products, both in
terms of their number of customers, assets under management and the size of their distribution
network. This is expected to expand the growth and the earnings basis of the Group in the form of
exploitation of positive synergies. The synergies particularly relate to:
a notable increase in the Group’s distribution network in the form of independent financial
advisors and a notable increase in the number of insurance companies which have concluded
cooperation agreements with the Group
cost cuts through administrative combination
enhancement within management, product development, etc.
Steffen Rønn Fondsmæglerselskab A/S
Steffen Rønn Fondsmæglerselskab A/S manages assets for Danish investors with cash assets exceeding
DKK 25m. Steffen Rønn Fondsmæglerselskab A/S focuses on equity investments and today has an
attractive customer portfolio. Steffen Rønn Fondsmæglerselskab A/S provides:
1
In addition, the Capinordic Group wholly owns the following companies:
¾ CSV
Invest
ApS,
Denmark
¾
Aktie- & Valutainvest ApS, Denmark
¾
Dansk Autoriseret Markedsplads A/S, Denmark
Q3 2007
a number of attractive asset management products focused on equity investments and savings for
affluent customers
substantial knowledge capital within equity investments and analyses as well as the sale of savings
and asset management products
a customer portfolio comprising affluent persons, who are also the target group of Capinordic Bank
A/S
Corporate
finance
activities
Steffen Rønn Fondsmæglerselskab A/S is expected to apply for and receive a licence to operate an
investment management company in early 2008.
Dansk O.T.C.
Dansk O.T.C. Fondsmæglerselskab A/S is an investment service company with its registered office in
Horsens, Denmark. The target group of the company comprises affluent private customers as well as
small and medium-sized enterprises. Capinordic A/S finds it to be a natural strategy for the Capinordic
Group to be represented in Jutland. The activities of Dansk O.T.C. are within the Capinordic Group’s
competence areas related to Corporate Banking, Markets, Private Financial Services and Asset
Management. The integration of Dansk O.T.C. into the Capinordic Group is therefore estimated to
present potential synergies in relation to the Group’s other business activities, particularly the activities
within asset portfolio management for affluent private individuals and Corporate Finance.
Bank branch in Sweden
The branch of Capinordic Bank is expected to be launched in H1 2008.
The branch will have its office
in Stockholm and will probably be launched through profile campaigns, and the Group’s existing
companies in Sweden will also participate in the sales work and marketing of the bank. The branch will
offer products within the four competence areas of the Group. In the starting-up period, the primary
focus will be on very competitive savings products. Project manager Ulrika Nathhorst Jener replaces
the former project manager Henrik Werner, whose employment has ended.
Investment management company in Denmark
The Capinordic Group continued its work in Q3 2007 of setting up an investment management
company. The Capinordic Group expects to launch an investment management company on the basis
of Steffen Rønn Fondsmæglerselskab A/S as the legal entity.
The Capinordic Group expects to apply for
and receive a licence to operate an investment management company in early 2008.
The investment
management company is to cooperate with various financial players and in this connection to offer
individual portfolio consultancy and specific asset management products to the customers of
Capinordic Bank A/S.
4. Prospects
In 2007, the Capinordic Group expects:
Continued growth based on a combination of acquisitions, alliances and organic growth
o Focus on integration of acquired companies into the Group
o Optimisation of investments in subsidiaries
o Exploitation of positive synergies
Launch of investment management company in Denmark in early 2008
That the Group maintains its expectation of achieving a profit before amortisation,
depreciation, impairment and tax at a level of DKK 150m
The Capinordic Group expects to launch a branch of Capinordic Bank A/S in Sweden in H1 2008.
The budgets and forecasts prepared are based on historical data and assumptions which are deemed
by Management to be acceptable; however, in the nature of things, such assumptions are uncertain
and unpredictable. For a detailed review of such uncertain factors and the Group’s risk management,
please see the Company’s 2006 Annual Report.
Q3 2007
Capinordic A/S
5. Events after the end of Q3 2007
After the end of the period under review, the Capinordic Group has:
completed the final acquisition of Steffen Rønn Fondsmæglerselskab A/S
completed the final acquisition of Dansk O.T.C. and Dansk AMP
made a conditional acquisition of BioFund Management OY
implemented a share option programme
Final acquisition of Steffen Rønn Fondsmæglerselskab A/S
The acquisition of Steffen Rønn Fondsmæglerselskab A/S is now final. Steffen Rønn Fondsmæglerselskab
A/S will be included in the consolidated financial statements of the Capinordic Group as from 11 October
2007.
Steffen Rønn Fondsmæglerselskab A/S focuses on asset management for affluent Danes with cash assets
exceeding DKK 25m.
The total purchase price at the acquisition date was fixed at DKK 138m, of which DKK 97m was payable in
shares, corresponding to 4,162,486 shares of a nominal value of DKK 0.50 each. The subscription price
was fixed at DKK 23.30 and was calculated as a weighted average of the market price from 27 September
until 10 October 2007.
For further information on the acquisition and integration into the Capinordic Group, please see Stock
Exchange Announcement of 25 June 2007, Company announcement of 11 October 2007 and page 8
of this announcement.
Final acquisition of Dansk O.T.C. and Dansk AMP
The acquisition by Capinordic A/S of Dansk O.T.C. and Dansk AMP is final. The total purchase price
was fixed at DKK 105m, of which DKK 75m was payable in shares, corresponding to 2,702,702 shares
of a nominal value of DKK 0.50 each. The subscription price was fixed at DKK 27.75 per share. The
subscription price was fixed as a weighted average over ten trading days of the market price up to and
including 21 March 2007, the day before conclusion of the conditional agreement.
Dansk O.T.C. will be included in the consolidated financial statements of Capinordic A/S as from 12
October 2007. Dansk AMP will be included under the item ‘Assets held temporarily’.
For further information on the acquisition and integration into the Capinordic Group, please see Stock
Exchange Announcement of 22 March 2007, Company Announcement of 12 October 2007 and page
8 of this announcement.
Conditional acquisition of BioFund Management OY
On 12 November 2007, Capinordic A/S acquired BioFund Management Oy (BioFund) – one of the leading
Nordic managers of life sciences investments. The acquisition is subject to the completion of a satisfactory
due diligence review.
The acquisition of BioFund will make Capinordic A/S a notable provider of life science investment products.
Future collaboration with the other Group subsidiaries will enable BioFund to expand its existing business
substantially, and the existing subsidiaries of the Group will be able to offer investments in the very
attractive life sciences market.
The purchase price has been fixed at DKK 67m, of which about DKK 23m is payable in cash. The
remainder is payable in 1,918,636 shares of a nominal value of DKK 0.50 each. The subscription price has
been fixed at DKK 22.73 per share of DKK 0.50 each.
For further information, please see Company Announcement of 12 November 2007.
Implementation of a share option programme
The Supervisory Board of Capinordic A/S decided on 20 November 2007 to make partial use of its
authority in Article 9 of the Company’s Articles of Association to implement a share option programme.
Q3 2007
The programme comprises 2,960,000 share options, each entitling its holder to subscribe for 1 share
of a nominal value of DKK 0.50 in Capinordic A/S. On exercise of the share options, the shares will be
subscribed at a strike price of DKK 22.14.
The share options will be granted to employees of the Capinordic Group. No share options will be
granted to members of the Supervisory and Executive Boards of Capinordic A/S.
6. Major decisions by the Supervisory Board
Major decisions made by the Supervisory Board of Capinordic A/S in Q3 2007 are listed below.
Capital increases in Capinordic A/S
As part of the Group’s corporate growth strategy, Capinordic A/S has made a number of acquisitions.
Parts of the purchase prices are payable in shares. The list below shows the current direct placements
of shares:
Nominal
share capital
No. of shares of a
nom. value of DKK
0.50 each
Status
Further information
Direct placement of shares
(non-cash contribution),
sellers of Nordisk
Fondservice AB
2,465,970
4,931,940
Admitted to trading on 16 August 2007
Company Announcement of
9 August 2007
Direct placement of shares
(non-cash contribution),
acquisition of Steffen Rønn
Fondsmæglerselskab A/S
2,081,243
4,162,486
Registered with the Danish Commerce
and Companies Agency on 24 October
2007, awaiting admission to trading
Company Announcement of
25 October 2007
Direct placement of shares
(non-cash contribution),
acquisition of Dansk O.T.C.
1,351,351
2,702,702 Registered with the Danish Commerce
and Companies Agency on 24 October
2007, awaiting admission to trading
Company Announcement of
25 October 2007
Direct placement of shares
(non-cash contribution),
acquisition of BioFund OY
959,318
1,918,636
Awaiting final acquisition
Company Announcement of
12 November 2007
Upon registration of the above capital increases, the total share capital is DKK 60,404,448,
corresponding to 120,808,896 shares of a nominal value of DK 0.50 each. One share entitles its
holder to one vote. The capital increase is effected through the partial exercise by the Supervisory
Board of the authority granted by the Annual General Meeting of the Company on 20 April 2007,
according to which the Supervisory Board is authorised, until 20 April 2012, to carry out one or more
increases of the share capital by subscription for new shares of up to a nominal amount of DKK
25,000,000, or 50,000,000 shares of DKK 0.50 each. After the capital increases listed in the table
above, the Supervisory Board is thus authorised to increase the share capital by up to a nominal
amount of DKK 9,377,953.
The new shares have the same rights as the other shares and accordingly entitle their holders to
dividends and other rights in the company (cf. Article 8 of the Articles of Association) from the date of
registration of the share capital increase with the Danish Commerce and Companies Agency.
Q3 2007
Capinordic A/S
7. Company information
Company
Name: Capinordic A/S
Address: Strandvejen 58
Postal code, city, country: 2900 Hellerup,
Denmark
Telephone: +45 8816 3000
Fax: +45 8816 3003
Website:
www.capinordic.com
E-mail:
[email protected]
Central Business Register No.: 13 25 53 42
Date of foundation: 1 July 1989
Registered office: Gentofte
Supervisory Board
Executive Board
Claus Ørskov, Chairman
Lars Öijer, Deputy Chairman
Erik Damgaard Nielsen
Ole Vagner
Eiríkur S. Jóhannsson
Lasse Lindblad, CEO
Steen Bryde, Executive Manager
Auditors
PricewaterhouseCoopers
Statsautoriseret revisionsaktieselskab
Strandvejen 44
2900 Hellerup, Denmark
Financial calendar 2007
Preliminary announcement of financial statements
20 March 2007
- published
2006 Annual Report
12 April 2007
- published
Annual General Meeting
20 April 2007
- held
Interim financial report 1 Jan.-31 March 2007
22 May 2007
- published
Interim financial report 1 Jan.-30 June 2007
28 August 2007
- published
Q3 2007
8. The Capinordic share
At 20 November 2007, the nominal share capital of Capinordic A/S amounted to DKK 59,445,130,
corresponding to 118,890,260 shares of DKK 0.50 each. The trading windows for registered insiders
are four weeks after publication of financial reports. The remaining trading window is thus 20
November-17 December 2007.
As an element of a structured sale, Keops A/S has reduced its ownership interest in Capinordic A/S.
The Management of Capinordic A/S finds that the reduction of the ownership interest of Keops A/S
strengthens the Company as it provides for a broader range of owners. Capinordic Bank A/S facilitated
the sale of the shares on the basis of a mandate signed by Keops A/S authorising the share sale. In
connection with the sale, Claus Ørskov, Chairman, granted an exemption for trading outside the open
window to Lasse Lindblad, CEO, and Erik Damgaard Nielsen and Ole Vagner, members of the
Supervisory Board. In addition, Erik Damgaard Nielsen was granted an exemption for the acquisition
of 281,974 shares in Capinordic A/S in connection with a non-cash contribution related to the
acquisition of Steffen Rønn Fondsmæglerselskab A/S. The owners of Capinordic A/S are listed below.
Current shareholders
Quantity
%
Keops A/S*
14,794,018
12.44%
SL Nordic Holding ApS*
8,728,366
7.34%
Erik Damgaard Port. A/S
a.o.**
8,126,924 6.84%
Synerco ApS*
7,737,598
6.51%
Bryde Gruppen ApS***
7,739,540
6.51%
NCap ApS****
7,230,700
6.08%
DKA Consult ApS a.o.*****
6,611,787
5.56%
Others******
57,921,327 48.72%
Total
118,890,260
100.00%
*According to the most recent notice concerning major
shareholders.
** Erik Damgaard Nielsen of the Supervisory Board is a
shareholder and the CEO of the company. A.o. comprises related
persons.
***The company is owned by Steen Bryde, Executive Manager.
****The company is owned by Ole Vagner, member of the
Supervisory Board.
*****The company is owned by Lasse Lindblad, CEO. A.o.
comprises DKA Invest ApS, which is part of the DKA Group. The
DKA Group is owned by Lasse Lindblad, CEO.
****** Shareholders owning less than 5% of the share capital of the
Company.
Share information (DKK)
Market value, 30 Sept. 2007 (DKKbn)*
2,79
Share price, 30 Sept. 2007
23,50
Share price, 31 December 2006
30,10
Year’s high
30,70
Year’s low
21,80
All time high (16/05/00)
75,00
*Based on the registered capital
Listed on OMX Nordic Exchange Copenhagen
Indices: OMX Copenhagen MidCap Plus, OMX
Copenhagen Financials
ISIN code: DK0010212570
Shortname: CAPI DKK
Development in share capital
Nominal
value of
DKK 0.50
No. of
shares
31 December 2006
42,467,383 84,934,766
Increases Q1-Q3 2007
13,545,153 27,090,306
Post-period increases
3,432,594 6,865,188
Total 59,445,130
118,890,260
Price development up to and including Q3 2007
-200.00%
0.00%
200.00%
400.00%
600.00%
800.00%
1000.00%
1200.00%
Jan-05
Jul-05
Jan-06
Jul-06
Jan-07
Jul-07
Q3 2007
Capinordic A/S
9. Management statement
The Supervisory and Executive Boards have today reviewed and approved the Q3 2007 Interim
Financial Report of Capinordic A/S. The Interim Financial Report has been prepared in accordance
with the International Financial Reporting Standards (IFRS) as approved by the European Union and
additional Danish disclosure requirements for interim financial reports of listed financial companies.
We consider the accounting policies appropriate and the accounting estimates acceptable so that the
Interim Financial Report gives a true and fair view of the Group’s and the Parent Company’s assets,
liabilities, equity and financial position at 30 September 2007 and of the results of the Group’s and the
Parent Company’s activities and cash flows for the accounting period ended 30 September 2007.
Copenhagen, 20 November 2007
Executive Board:
_______________
Lasse Lindblad
CEO
_______________
Steen Bryde
Executive Manager
Supervisory Board:
____________________
____________________
Claus
Ørskov
Lars
Öijer
Chairman
Deputy
Chairman
____________________
____________________
Erik Damgaard Nielsen
Eiríkur S. Jóhannsson
____________________
Ole Vagner
Q3 2007
10. Financial statements of the Capinordic Group
Accounting policies
The Q3 2007 Interim Financial Report for the Parent Company and the Group has been prepared as a
summary and in accordance with IAS 34 Interim Financial Reporting, the interim financial reporting
requirements laid down by OMX Nordic Exchange Copenhagen, and the Executive Order on the
Application of International Financial Reporting Standards for Enterprises Falling within the Financial
Business Act (the IFRS Executive Order for financial enterprises). The application of IAS 34 means
that this presentation is more limited than the presentation of a full annual report, and that the
valuation principles of the International Financial Reporting Standards have been observed.
The accounting policies are unchanged as compared with the 2006 Annual Report. The 2006 Annual
Report provides a full description of the accounting policies applied.
The Group has chosen to change its presentation of portfolio enterprises so that they are presented as
a separate item in the balance sheet in future. The presentation (format) of the balance sheet has
been adapted accordingly. This change does not affect the Group’s accounting policies for recognition
and measurement of assets and liabilities. Comparative figures have been restated in accordance with
the change in format.
The Interim Financial Report has not been audited.
Accounting estimates and assessments
The calculation of the carrying amounts of certain assets and liabilities requires estimates of the
impact of future events on the value of such assets and liabilities at the balance-sheet date. Estimates
material to reporting are made in connection with the measurement of the Group’s loans, advances
and other receivables, the calculation of amortisation, depreciation and impairment, pensions and
similar obligations, provisions and contingent liabilities and assets.
The estimates made are based on historical data and assumptions which are deemed by Management
to be acceptable; however, in the nature of things, such assumptions are uncertain and unpredictable.
The assumptions may be incomplete or inaccurate, and unexpected events or circumstances may
occur. The enterprise is also subject to risks and uncertainties that may result in deviations between
actual results and estimates. Special risks applicable to the Group are discussed in the 2006 Annual
Report.
Q3 2007
Capinordic A/S
Income statement for the period ended 30 September 2007
Note Year 2007 2006 2007 2006 2006 2007 2006 DKK '000 DKK '000 DKK '000 DKK '000 DKK '000 DKK '000 DKK '000 1 23,692 6,696 57,327 8,039 20,987 14,217 12,599 2 -6,658 -757 -16,356 -1,066 -2,785 -6,053 -2,849 17,034 5,939 40,971 6,973 18,202 8,164 9,750 9 191 160 222 44 0 0 3 40,404 39,101 108,996 59,852 147,609 4,889 35,811 -8,051 -1,603 -12,524 -5,207 -10,135 -800 -1,894 49,396 43,628 137,603 61,840 155,720 12,253 43,667 4 33,769 636 54,895 223 110 1,823 -3,004 12,512 2,876 49,365 7,644 8,529 42,727 1,589 95,677 47,140 241,863 69,707 164,359 56,803 42,252 5 -51,115 -17,975 -141,258 -32,753 -81,204 -14,267 -15,396 44,562 29,165 100,605 36,954 83,155 42,536 26,856 -12,006 -4,949 -32,879 -5,312 -16,013 -320 -187 0 0 -15 0 0 0 0 0 -1,503 0 -3,078 -8,407 0 0 -161 0 960 0 2,078 0 0 32,395 22,713 68,671 28,564 60,813 42,216 26,669 -9,597 -6,283 -9,545 -7,932 -13,928 -10,530 -4,277 22,798 16,430 59,126 20,632 46,885 31,686 22,392 DKK DKK DKK DKK DKK
Earnings per share basic (EPS Basic) ... 0.21 0.19 0.60 0.35 0.77
Diluted earnings per share (EPS-D) ... 0.21 0.19 0.59 0.34 0.77 Net financials ...
Profit before amortisation, depreciation, impairment and tax ...
Profit before tax ...
NET PROFIT FOR THE PERIOD ... Staff costs and administrative expenses ...
Amortisation and depreciation of intangible assets, property, plant and equipment ...
Other operating expenses ...
Tax on profit for the period ... Impairment of loans, advances and receivables ...
Profit from investments in associates ... Fee and commission income ... Fee and commission expenses ...
Market value and translation adjustments ... Other operating income ...
Net interest and fee income ...
Interest income ... Interest expenses ...
Share dividends, etc. ...
Net interest income ...
Parent Company Group
Q3 Year to date Year to date
Q3 2007
Balance sheet at 30 September 2007
Note 30.09.2007 30.09.2006 31.12.2006 30.09.2007 31.12.2006 ASSETS DKK '000 DKK '000 DKK '000 DKK '000 DKK '000 30,155 73 22,099 0 0 320,325 660,103 566,844 11,434 1,159 827,262 219,893 440,289 125,801 83,763 49,822 15,872 25,041 0 0 480,937 11,741 19,935 6,393 2,633 180,566 43,826 67,438 159,145 55,007 0 0 0 0 0 0 0 0 1,869,069 1,301,343 Intangible assets ... 1,120,619 453,794 541,897 0 0
Other property, plant and equipment ... 9,964 4,677 14,466 1,073 1,308
6,211 63 584 0 0 1,783 7 408 452 408 35,031 0 0 0 0 72,612 22,871 74,588 91,417 88,248 31,326 18,714 18,443 641 0 3,166,613 1,451,634 1,792,032 2,265,425 1,533,869 Prepayments ... Other assets ... Investments in associates ... Shares, etc. ...
Deferred tax assets ...
Assets held temporarily ... Current tax assets ... Investments in Group enterprises ...
Parent Company Group
Receivables from credit institutions and central banks ... Cash and demand deposits with central banks ...
Bonds at fair value ...
Total assets ...
Loans, advances and other receivables at amortised cost ...
Investments in portfolio enterprises ...
Q3 2007
Capinordic A/S
Balance sheet at 30 September 2007 (continued)
Note 30.09.2007 30.09.2006 31.12.2006 30.09.2007 31.12.2006 LIABILITIES AND EQUITY DKK '000 DKK '000 DKK '000 DKK '000 DKK '000
253,561 0 46,663 48,929 29,362 510,479 66,406 203,382 50,914 50,614 46,145 22,874 17,376 15,507 4,933 41,767 11,147 40,115 4,245 61,322 31,843 3,840 4,509 1,230 1,835 Total payables ... 883,795 104,267 312,045 120,825 148,066 138,210 46,290 75,086 0 0 0 0 4,389 0 4,389 951 951 951 951 951 Total provisions ... 139,161 47,241 80,426 951 5,340 Total liabilities ... 1,022,956 151,508 392,471 121,776 153,406 56,013 42,467 42,467 56,013 42,467 2,024,728 1,240,374 1,307,369 2,024,478 1,307,368 -2,406 -540 -193 75,543 30,163 65,322 17,825 49,918 -12,385 465 2,143,657 1,300,126 1,399,561 2,143,649 1,380,463 3,166,613 1,451,634 1,792,032 2,265,425 1,533,869 6 7 8 Parent Company Group
Total liabilities and equity ... Total equity ... Share capital ... Retained earnings ... Other reserves ... Share premium ... Deferred income ...
Provisions relating to guarantees ... Provision for deferred tax ... Payables to credit institutions and central banks ...
Deposits and other payables ...
Other liabilities ... Current tax liabilities ...
Charges and securities ... Contingent liabilities ... Guarantees ...
Q3 2007
Statement of changes in equity at 30 September 2007 (Group)
Statement of changes in equity, 30 September 2007
Other Retained Share capital Share premium reserves earnings Total
DKK '000 DKK '000 DKK '000 DKK '000 DKK '000
42,467 1,307,369 -193 49,918 1,399,561 Changes in equity
Translation adjustments relating to
0 0 -2,213 0 -2,213 0 0 0 -10,146 -10,146 0 0 0 59,126 59,126 0 0 -2,213 48,980 46,767 7,222 382,402 0 0 389,624 6,324 344,097 0 0 350,421 0 -9,140 0 0 -9,140 0 0 0 2,334 2,334 0 0 0 -35,910 -35,910 13,546 717,359 -2,213 15,404 744,096 56,013 2,024,728 -2,406 65,322 2,143,657
Statement of changes in equity, 30 September 2006
Other Retained Share capital Share premium reserves earnings Total
DKK '000 DKK '000 DKK '000 DKK '000 DKK '000
14,297 32,445 -876 2,102 47,968
Changes in equity
Translation adjustments relating to
0 0 336 0 336 0 0 0 20,632 20,632 0 0 336 20,632 20,968 19,247 797,696 0 0 816,943 8,923 413,037 0 0 421,960 0 -2,804 0 0 -2,804 0 0 0 914 914 0 0 0 -5,823 -5,823 28,170 1,207,929 336 15,723 1,252,158 42,467 1,240,374 -540 17,825 1,300,126 Own shares ...
Total changes in equity ... Equity, 30 September 2006 ...
independent foreign entities ...
Net profit for the period ...
Total comprehensive income ...
Issues against cash payment ... independent foreign entities ...
Market value adjustments, securities available for sale ...
Net profit for the period ...
Total comprehensive income ...
Group Group
Equity, 1 January 2007 ...
Issues against cash payment ...
Non-cash contributions ...
Issue costs ...
Share-based payments ...
Own shares ...
Total changes in equity ... Equity, 30 September 2007 ...
Equity, 1 January 2006 ...
Non-cash contributions ...
Issue costs ...
Q3 2007
Capinordic A/S
Statement of changes in equity at 30 September 2007 (Parent
Company)
Statement of changes in equity, 30 September 2007
Other Retained Share capital Share premium reserves earnings Total
DKK '000 DKK '000 DKK '000 DKK '000 DKK '000 42,467 1,307,368 30,163 465 1,380,463 Changes in equity 0 0 0 31,686 31,686 0 0 0 31,686 31,686 7,222 382,402 0 0 389,624 6,324 344,097 0 0 350,421 0 -9,389 0 0 -9,389 0 0 45,380 -45,380 0 0 0 0 844 844 13,546 717,110 45,380 -12,850 763,186 56,013 2,024,478 75,543 -12,385 2,143,649
Statement of changes in equity, 31 December 2006
Andre Overført Aktiekapital Overkurs reserver resultat I alt
DKK '000 DKK '000 DKK '000 DKK '000 DKK '000 14,297 32,445 0 7,672 54,414 Changes in equity 0 0 0 22,392 22,392 0 0 0 22,392 22,392 19,247 797,677 0 0 816,924 8,923 480,154 0 0 489,077 0 -2,908 0 0 -2,908 0 0 30,163 -30,163 0 0 0 0 564 564 0 0 0 0 0 28,170 1,274,923 30,163 -7,207 1,326,049 42,467 1,307,368 30,163 465 1,380,463 Conversion of bonds ...
Total changes in equity ...
Equity, 31 December 2006 ...
Issue costs ...
Reserve relating to subsidiaries ...
Share-based payments ...
Own shares ... Equity, 1 January 2006 ...
Net profit for the period ...
Total comprehensive income ...
Capital increases ... Capital increase ...
Share-based payments ...
Total changes in equity ...
Equity, 30 September 2007 ...
Parent Company
Equity, 1 January 2007 ...
Net profit for the period ...
Total comprehensive income ...
Moderselskab
Non-cash contributions ...
Issue costs ...
Q3 2007
Notes
Year 2007 2006 2007 2006 2006 2007 2006 DKK '000 DKK '000 DKK '000 DKK '000 DKK '000 DKK '000 DKK '000 1 Interest incomeInterest on receivables from credit institutions... 4,788 5,055 16,809 6,234 12,612 2,067 6,184 Interest on loans, advances and other receivables... 15,190 1,331 35,594 1,331 7,954 9,728 6,004 Bond interest... 865 156 1,389 231 414 0 0 Other interest income... 2,849 154 3,535 243 7 2,422 411
Interest income... 23,692 6,696 57,327 8,039 20,987 14,217 12,599
2 Interest expenses
Interest payable to credit institutions ... 184 394 3,006 588 1,890 4,091 1,889 Interest on deposits and other payables... 6,466 0 13,286 0 223 1,962 630 Other interest expenses... 8 363 64 478 672 0 330
Interest expenses... 6,658 757 16,356 1,066 2,785 6,053 2,849
3 Fee and commission income
Guarantee commission... 70 3,284 4,459 3,284 11,346 4,439 11,346 Securities trading and custody accounts... 1,744 2,372 5,100 10,223 10,708 0 0 Transfer of funds... 0 0 0 0 0 0 0 Loan fees... 778 4,715 2,445 4,715 723 0 550 Other fee and commission income... 37,812 28,730 96,992 41,630 124,832 450 23,915
Fee and commission income... 40,404 39,101 108,996 59,852 147,609 4,889 35,811
4 Market value and translation adjustments
Bonds ... 52 5 133 5 -2,856 0 -2,847 Shares, etc... 33,570 632 54,764 361 2,829 1,848 -147 Foreign exchange... 147 -1 -2 -143 137 -25 -10
Market value and translation adjustments... 33,769 636 54,895 223 110 1,823 -3,004
5 Staff costs and administrative expenses
Number of employees
Average number of employees... 195 48 195 21 44 5 3
Salaries and remuneration of Executive and Supervisory Boards
Executive Board... 4,213 819 7,713 1,950 7,470 5,250 6,564 Share-based payments, Executive Board... 149 27 447 85 185 447 185 Supervisory Board... 716 163 1,831 438 1,382 600 640 Share-based payments, Supervisory Board... 118 93 354 283 379 354 379 Salaries and remuneration of Executive and Supervisory Boards... 5,196 1,102 10,345 2,756 9,416 6,651 7,768
Staff costs
Salaries... 27,442 9,827 77,929 16,450 46,581 9,549 7,866 Total share-based payments... 779 253 2,334 749 1,286 844 564 Pensions... 1,363 109 2,487 334 432 0 0 Social security costs... 2,887 1,179 10,634 2,090 6,100 1,051 385
Staff costs... 32,471 11,368 93,384 19,623 54,399 11,444 8,815
Other administrative expenses... 18,644 6,607 47,874 13,130 26,805 2,823 6,581
Staff costs and administrative expenses... 51,115 17,975 141,258 32,753 81,204 14,267 15,396 Year to date Parent Company Group
Q3 2007
Capinordic A/S
Notes (continued)
30.09.2007 30.09.2006 31.12.2006 30.09.2007 31.12.2006 DKK '000 DKK '000 DKK '000 DKK '000 DKK '000 6 Charges and securities
7 Leases
Rental obligations... 34,687 30,000 37,630 0 30,000 Lease obligations... 1,860 153 0 0 0
Total... 36,547 30,153 37,630 0 30,000
Rental obligations relating to leased premises run for 10 years.
8 Guarantees
Irrevocable credit commitments... 105,092 99,925 0 0 Issue guarantees... 24,616 100,000 100,000 0 100,000
Total... 129,708 100,000 199,925 0 100,000
Parent Company Group
Shares, etc. at a carrying amount of DKK 325m have been provided as security for payables to credit institutions of DKK 205m.
Q3 2007
Notes (continued)
9 Information on business combinations
Percentage of Consolidated Acquisition voting rights Cost profit *
Enterprises acquired: Reg. office date acquired DKK '000 DKK '000
Monetar Pensionsförvaltning AB Stockholm 18-01-2007 100.00% 197,350 228
Aktie- & Valutainvest ApS Copenhagen 24-05-2007 100.00% 86,578 14,999
Nordisk Fondservice AB Umeå 07-08-2007 100.00% 276,970 2,580
Steffen Rønn Fondsmæglerselskab A/S ** Copenhagen 11-10-2007 100.00% 139,684
Dansk O.T.C. Fondsmæglerselskab A/S *** Horsens 12-10-2007 100.00% 86,929
For a detailed description of the activities, etc., of the enterprises acquired, please see the Stock Exchange and Company Announcements previously published.
Cost of enterprises acquired (DKK ‘000): Equity Total cost
Number of instruments Cash Other of business
shares issued payment costs, etc. combination
DKK '000 DKK '000 DKK '000 DKK '000
Monetar Pensionsförvaltning AB 4,630,000 133,344 62,270 1,736 197,350
Aktie- & Valutainvest ApS 3,085,026 86,381 0 197 86,578
Nordisk Fondservice AB 4,931,940 131,190 145,055 725 276,970
Steffen Rønn Fondsmæglerselskab A/S 4,162,486 99,067 40,586 31 139,684
Dansk O.T.C. Fondsmæglerselskab A/S 2,702,702 64,595 20,000 2,334 86,929
** Steffen Rønn Fondsmæglerselskab A/S was acquired with effect from 11 October 2007. Therefore, it has not been possible to obtain and process data for cost allocation, etc., for the enterprise acquired, nor has it been possible to comply with the disclosure requirements of IFRS3.
*** Dansk O.T.C. Fondsmæglerselskab A/S was acquired with effect from 12 October 2007. Therefore, it has not been possible to obtain and process data for cost allocation, etc., for the enterprise acquired, nor has it been possible to comply with the disclosure requirements of IFRS3.
Capinordic A/S acquired a number of companies in 2007. The table below discloses information concerning the acquired companies pursuant to the International Financial Reporting Standards (IFRS 3).
* Consolidated profit from the acquisition date to the balance-sheet date. If the enterprises acquired had been consolidated for the entire financial period, the Group’s total net interest and fee income would have amounted to DKK 151,658 thousand, and the profit after tax would have been DKK 89,605 thousand.
The various agreements on acquisition of the individual companies determined both the subscription prices for and the number of shares in Capinordic A/S paid as consideration to the respective sellers.
In terms of company law, the new shares in Capinordic A/S were subscribed for at a price corresponding to the market price for shares in Capinordic A/S at the effective date of the individual agreements in accordance with the subscription price rules of the Danish Public Companies Act and in accordance with the authority of the Supervisory Board.
For accounting purposes, the cost of the respective business combinations is calculated at the acquisition date, and the value of equity instruments issued is calculated at the market price on the acquisition date. Therefore, the value calculated at the date of the agreement and the carrying amount at the acquisition date may differ.
Q3 2007
Capinordic A/S
Notes (continued)
9 Information on business combinations (continued)
Amounts recognised at acquisition date (DKK ‘000)
Value before Value at Value before Value at Value before Value at combination acquisition combination acquisition combination acquisition
date date date
Cash and demand deposits with central banks ... 0 0 0 0 2 2 Receivables from credit institutions ... 17,110 17,110 6,829 6,829 677 677 Loans, advances and other receivables at amortised cost ... 0 0 0 0 0 0 Bonds at fair value ... 0 0 0 0 0 0
Shares, etc. ... 113 113 311,632 311,632 0 0 Goodwill ... 0 127,005 0 25,976 0 142,210 Other intangible assets ... 423 192,461 0 41,407 2,775 95,212 Property, plant and equipment ... 296 296 0 0 874 874 Other assets ... 2,415 2,415 347 347 7,721 6,671 Prepayments ... 5,709 5,709 0 0 604 604 Payables to credit institutions and central banks ... 0 0 274,660 274,660 758 758 Deposits and other payables ... 0 0 0 0 0 0
Current tax liabilities ... 2,820 2,820 3,207 3,207 0 0 Other liabilities ... 3,175 3,175 11,394 11,394 4,885 4,885 Deferred income ... 8,373 8,373 0 0 1,477 17,375 Provisions ... 126 53,771 0 10,352 0 25,882
Total purchase price ... 276,970 86,578 197,350
The allocation gives rise to the following comments: Monetar Pensionsförvaltning AB
Aktie- og Valutainvest ApS
Nordisk Fondservice AB
Steffen Rønn Fondsmæglerselskab A/S
Dansk O.T.C. Fondsmæglerselskab A/S
Steffen Rønn Fondsmæglerselskab A/S manages assets for Danish investors with cash assets exceeding DKK 25m. Steffen Rønn Fondsmæglerselskab A/S focuses on equity investments. Steffen Rønn Fondsmæglerselskab A/S has an attractive customer portfolio. Steffen Rønn Fondsmæglerselskab A/S disposes of a number of distinctive profiles within asset management who specialise in equity investments.
Dansk O.T.C. carries out both asset consultancy activities and discretionary asset management activities for its customers. The integration of Dansk O.T.C. into the Capinordic Group is therefore estimated to provide great potential for synergies with the Group’s other business activities. Particularly the activities within asset portfolio management for affluent private individuals and corporate finance activities related to companies traded on the OTC list are estimated to provide a substantial synergy potential.
Aktie- & Valutainvest ApS Nordisk Fondservice AB
Through the acquisition of Aktie- & Valutainvest ApS, the Capinordic Group acquires knowledge capital particularly within investments in currencies and derivative financial instruments, and the ownership interests in various Danish banks held by the company provide for strategic alliances in distribution, etc. A put option is linked to the securities portfolio, and for a two-year period SL Nordic Holding ApS is obliged, under certain conditions, to buy back the securities so that Capinordic A/S does not assume the market risk for any drops in the development in these shares.
Nordisk Fondservice AB sells its services through a distribution network consisting of independent financial advisors (insurance brokers). Nordisk Fondservice AB has concluded cooperation agreements with about 800 insurance brokers across all of Sweden on the distribution of its products. Today, Sweden has about 1,200 insurance brokers. Nordisk Fondservice AB uses a specially developed and innovative IT platform to manage its relations with customers, insurance brokers and alliance partners. The IT platform materially supports the growth scenario of the company.
In connection with the acquisition of Monetar Pensionsförvaltning AB it was estimated that the company’s ability to attract customers and its expectations of future earnings represent a significant value. Monetar Pensionsförvaltning AB is based on an advanced IT platform which streamlines work processes within sales, administration and management. At the same time the company is estimated to possess great knowledge about its business areas, customer servicing and asset portfolio management as well as standardisation of decision processes concerning asset management.
Q3 2007
Notes (continued)
10 Business segments Primary business segments 2007
Denmark Sweden Non- Elimination Group,
Income statement allocated total
Net interest and fee income ... 98,833 38,770 0 0 137,603
Profit before amortisation, depreciation, impairment and tax ... 89,042 1,751 9,812 0 100,605
Net profit for the period after tax ... 55,027 -3,765 7,864 0 59,126
11 Financial key figures and ratios (according to the guidelines of the Danish Financial Supervisory Authority)
Year 2007 2006 2007 2006 2006 DKK '000 DKK '000 DKK '000 DKK '000 DKK '000 KEY FIGURES
Net interest and fee income ... 49,396 43,628 137,603 61,840 155,720 Market value and translation adjustments ... 33,769 636 54,895 223 110 Staff costs and administrative expenses ... 51,115 17,975 141,258 32,753 81,204 Impairment losses on loans and receivables ... 0 0 15 0 0 Profit from investments in associates ... -161 0 960 0 2,078 Net profit for the period ... 22,798 16,430 59,126 20,632 46,885 Loans and advances ... 827,262 219,893 827,262 219,893 440,289 Equity ... 2,143,657 1,300,126 2,143,657 1,300,126 1,399,561 Total assets ... 3,166,613 1,451,634 3,166,613 1,451,634 1,792,032 Total risk-weighted assets ... 1,701,763 453,743 1,701,763 453,743 751,032
RATIOS
Capital base relative to minimum capital requirement ... 26.82 22.27 26.82 22.27 14.26 Capital adequacy ratio ... 58.74 183.04 58.74 183.04 114.07 Core capital ratio ... 58.74 183.04 58.74 183.04 114.07 Return on equity before tax ... 6.15 6.96 5.18 5.67 8.40 Return on equity after tax ... 4.33 5.03 4.46 4.09 6.48 Income/cost ratio ... 1.52 1.93 1.39 1.69 1.56 Interest rate risk (%) ... 0.04 0.00 0.04 0.00 0.04 Foreign exchange position (DKK '000) ... 21,443 0 21,443 0 2,742 Foreign exchange risk (%) ... 2.15 0.00 2.15 0.00 0.32 Loans and impairment losses over deposits ... 1.62 3.31 1.62 3.31 2.16 Gearing ... 0.39 0.00 0.39 0.00 0.31 Growth in loans for the period ... 28.13 0.00 87.89 0.00 100.00 Excess coverage as a percentage of liquidity requirement ... 1,680.27 6,331.59 1,680.27 6,331.59 1,939.40 Sum of major exposures ... 1.02 1.01 1.02 1.01 0.70 Impairment rate for the period ... 0.00 0.00 0.00 0.00 0.00
RATIOS FOR LISTED COMPANIES
Earnings per share ... 0.21 0.19 0.60 0.35 0.77 Book value per share ... 19.14 15.31 19.14 15.31 15.63 Dividend per share ... 0.00 0.00 0.00 0.00 0.00 Price/earnings per share ... 111.79 118.90 39.21 66.47 39.35 Price/book value per share ... 1.23 1.50 1.23 1.50 1.93
Q3
Group Year to date
