spor 3 bærekraftige porteføljer
TRANSCRIPT
www.steria.no
© Steria
Power of sharing
Intern
www.steria.no
Hva er CSR/Forretningsmessig samfunnsansvar
?
Sponsing?
Nødhjelp?
Governance
Global Compact? Etisk handel?
Revisjoner?
Anti korrupsjon?
Sosial dumping?
HMS?
?
Etikk?
Miljø
www.steria.no
CSR handler om å walk the walk
Result:
• Enhanced relations
• Reduced risk
• Better reputation
• Lower costs?
Result:
• Increases satisfaction and loyalty
• Confirmation of identity
• Increased motivation
• Reduces absence and turnover
• Increased empolyee attractivity
• Enhanced reputation
Result:
• Confirmation of customer identity
• Increased customer satisfaction
• Stronger brand value
• Enhanced customer loyality
Suppliers Employees Customers
Focus:
• Standards for HSE, Environment, Work relations aso.
• Revision and control
• Implementation in supply chain
• Communication
Focus:
• HSE, empowerment, corporate values, education and personal development
• Key drivers, incentives
• Feedback and measurment
• Communication
Focus:
• Customer satisfaction
• Make it easy to be good
• Dialogue / feedbacksystems
• Communication
Dialog ue with stakeholders
Values + Corporate culture + Ethical codes
www.steria.no
Ansattes førstevalg • ”72% of Americans want their
employers to do more to support
a cause or social issue, up from
52% in 2004”
• ”93% say it is important for their
companies to provide them with
opertunities to become involved in
social issues”
Kundenes førstevalg • ”87% are likely to switch from
one product to another (price
and quality beeing equal) if the
other product is associated
with a good cause”
• ”75% of men say they consider
a company’s commitment to
social issues when deciding
what to buy or where to shop,
compared to 58% in 2004.”
Eieres førstevalg • ”70% of global investment managers surveyed
believe that integrating environmental, social and
governance issues into analysis will become
mainstream in 3-10 years”
• ”66% of investors state that a company’s
commitment to a social issue is important when
deciding which stocks or mutual fonds to invest
in.”
Bedriften som
foretrukket
selskap
Ansatte
Kunder Eiere
CSR kan handle om å skape (et nødvendig)
konkurransefortrinn
www.steria.no
Økonomi; gjennom gode
prosesser knyttet til korrupsjon,
økonomistyring og governance
reduseres risiko knyttet til
underslag og økonomisk
kriminalitet – med betydelige
følger
Interesseorganisasjoner: Ved
å gjøre ”de riktige tingene”
knyttet til miljø og HMS vil
risiko for aksjoner fra aktivister,
fagforeninger og andre
reduseres betydelig
Politiske rammefaktorer:
Gjennom gode rutiner for
avfallshåndtering,
arbeidsmiljø,
produktutvikling etc
reduseres risiko for endring
av rammebetingelser og
pålegg som kan ramme
bedriften i særlig grad
Antipati: Gjennom et
substansielt godt omdømme
reduserer man risiko for
generell antipati som på et
tidspunkt vil ramme ens
evne til å rekruttere og
beholde de riktige ansatte –
og kunder
Leverandører: Gjennom gode
revisjonsrutiner og egne regler reduseres
risiko for uegnede leverandører og
underleverandører
Og om å redusere risiko
Ansatte
Eiere Leverandører
Omverdenen
Bedriften som
trygt
selskap
Investorer: Investorer søker sikre
investeringer – der alt det ovenstående
er sikret – basert på gode og trygge
rutiner
www.steria.no
Power of Sharing - Steria
Trend shift through transformation
12th June 2012
www.steria.no
Trend shift through transformation
19 investments to date
Independent team of 18 Scandinavian professionals with offices in Oslo, Stockholm and Copenhagen
€ 525 million long term equity capital under management
Investor base includes: Nordic and international leading private and public pension plans,
endowments and foundations, funds of funds, banks and insurance companies
Investor returns generated through transforming companies into significantly more competitive, international and
profitable entities
Main investment focus on Nordic mid cap growth companies with international potential
Implementation of aggressive organic expansion and globalisation initiatives
Buy and build strategies
Three funds under management
Overall realised return: IRR 35%, ROI 3,1x.
Total NAV: IRR 25%, ROI 2,0x
2001 FSN Capital I € 54 million; fully realised; ROI 3.2x
2005 FSN Capital II € 151 million; fully invested; NAV 2.7x
2008 FSN Capital III € 375 million; eight platform investments made to date; NAV 1.3x
www.steria.no
FSN Capital Partners’ Ethos
“We are decent people making a decent return in a decent way”
By decent people we mean that we are trustworthy individuals that behave with integrity
Making a decent return means generating alpha return, i.e. a risk adjusted return which is significantly
higher than what our investors can achieve by investing in public market index funds
Generating this return in a decent way means that we operate according to the Internal Ethical
Guidelines we have developed, that we implement similar ethical guidelines in our portfolio companies
and that we adhere to the UN Global Compact, the UN Convention Against Corruption and the OECD
Guidelines for Corporate Governance for Multinational Enterprises
We believe there is plenty of money at the centre of the court
We see no need to play around the edges
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2.0x
0.5x
-0.5x
0.0x
0.5x
1.0x
1.5x
2.0x
2.5x
ROI FSN II ROI OMX Small Cap
Creating Alpha return on a P.E setting
FSN Capital Fund II benched to 2.0x leveraged OMX Small Cap investment
Alpha 22,8 %
Note: OMX adjusted for mgmt fee of 0.5% + dividend yield of 1.0%
Index rebased to match FSN II draw downs
Risk management Active ownership
ROI (x)
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Example: UK Equities 1693 - 2009
Extreme Observations in 08 and 09
Source: Bank of England
08 09
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Complacently Low Implied Volatilities Preceded the Crisis
10
20
30
40
50
60
70
Jan-8
5
Jan-8
7
Jan-8
9
Jan-9
1
Jan-9
3
Jan-9
5
Jan-9
7
Jan-9
9
Jan-0
1
Jan-0
3
Jan-0
5
Jan-0
7
Jan-0
9
50
80
110
140
170
200
230Market-Implied Equity Volatility (VXO,VIX) (lhs)
Market-Implied Tsy Yield Volatility (MOVE) (rhs)
0
3
6
9
12
15
18
Jan-8
7
Jan-8
9
Jan-9
1
Jan-9
3
Jan-9
5
Jan-9
7
Jan-9
9
Jan-0
1
Jan-0
3
Jan-0
5
Jan-0
7
Jan-0
9
Emerging Market Debt Spread
U.S. High-Yield Bond Spread
Low
volatility
Low risk
premiums
Low Volatility. Low Risk Premiums. High Risk
Example: Emerging market and US high yield debt spread
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FSN Capital actively seeks to categorise, control and
manage risk
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FSN Capital has a framework for categorising and managing
risk exposure (on the fund and company level)
FSN Capital believes risk management is about avoiding the biggest
mistakes through disciplined decision making structures and by
creating robust portfolios of companies
Beta risk
Exogenously determined (cyclicality, FX exposure,
commodity, etc)
Alpha risk
FSN Capital controlled (operational, integration,
technology, corporate governance, etc)
www.steria.no
We break the risk factors into categories and split between
Alpha and Beta
Macro ▬ Cyclicality
▬ FX
▬ Commodity
Industry ▬ Political
▬ Competitiveness
▬ Substitution
Commercial ▬ Operating leverage
▬ Concentration
▬ Visibility
Operational Management risk
Integration risk
Internal / External
Financial Liquidity
Leverage
Covenants
Exit Multiple sustainability
Marketability
Dependency on trend shift
Active ownership Majority shareholder
Ultimate control
FSN risk categories
β
www.steria.no
EBITDA at Risk – quarterly loss potential at the fund level
Analysis based on historical changes in
quarterly portfolio company EBITDA
Definitions
Standard deviation: Std dev of portfolio including 8 assets
VaR 99%: Minimum quarterly loss in worst 1% of cases
VaR 95%: Minimum quarterly loss in worst 5% of cases
FUND II
Standard deviation 10.0%
Assets 7
VaR (99% level) -20,6%
VaR (95% level) -13,8 %
Q4 2011
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CONFIDENTIAL
VaR (99% level) -20.6 %
Adjusted EBITDA 54.5
Blended multiple 7.2x
EV 393.3
Net debt -123.6
Fund value 269.7
Reduction in value -27%
VaR (95% level) -13.8 %
LTM EBITDA 59.1
Blended multiple 7.2x
EV 426.9
Net debt -123.6
Fund value 303.3
Reduction in value -18%
FSN II would still generate value to investors in a tail end event
ROI 2.4x ROI 1.7x ROI 2.0x
Note:
ROI for All shareholders
Figures excludes CTEK and Norlandia
Value at Risk (€ million) Fund II
LTM EBITDA 68.6
Blended multiple 7.2x
EV 495.5
Net debt -123.6
Fund value 371.9
| 17
CONFIDENTIAL
Labor market in Nordics allow restructuring with
relatively swift P&L and cash flow effects
ASAB - LTM EBITDA Via - LTM EBITDA
LTM recurring
LTM no action
LTM recurring
LTM no action
Cost reduction: SEK 63 mill (20%) Cost reduction: NOK 112 mill (25% - 250 FTEs)
-60
-40
-20
0
20
40
60
80
Q1-08 Q3-08 Q1-09 Q3-09 Q1-10 Q3-10 Q1-11 Q3-11
-20
0
20
40
60
80
100
120
140
160
180
200
08Q1
08Q2
08Q3
08Q4
09Q1
09Q2
09Q3
09Q4
10Q1
10Q2
10Q3
10Q4
11Q1
11Q2
11Q3
11Q4