AB January 2018 www.naxs.se. Grev Turegatan 10, 1tr, SE-114 46 Stockholm, Sweden. Phone: +46 (0) 8 611 33 25
Permanent capital focusing on the Nordic market NAXS is an investment company listed on NASDAQ Stockholm. NAXS primarily invests in private equity funds with a Nordic focus, but may also make direct investments or co-investments alongside private equity or other alternative assets funds. In addition, NAXS may, to a limited extent, make other types of investments. Listed in 2007, the company currently offers an attractive exposure to the private equity segment: 9 private equity funds (8 buyout funds and 1 special situations fund) 7 managers 59 underlying portfolio companies (remaining after 57 exits) 4 vintage years (2007, 2008, 2011 and 2017) and exposure to large, mid and small cap segments In addition, NAXS offers an exposure to 1 listed company, Scout Gaming Group, in the IPO of which NAXS was a cornerstone investor Buyout funds Commitment Fund Size Apax Europe VII EUR 15m EUR 11bn FSN Capital III EUR 10m EUR 375m Herkules Private Equity Fund III NOK 40m NOK 6bn Intera Fund I EUR 7m EUR 125m Intera Fund II EUR 7,25m EUR 200m Nordic Capital Fund VII EUR 20m EUR 4.3bn Valedo Fund I SEK 60m SEK 1bn Valedo Fund II SEK 65m SEK 2bn Special situation fund Commitment Fund Size Mimir Invest AB SEK 50m < SEK 500m As per Q4 2017, 57 full exits and more than 20 recapitalisations. The 57 exits have generated an average gross IRR of 23% NAXS has a distribution policy aiming at returning to shareholders, in the long-term, 50% to 75% of profit after tax. For FY 2017, the board of directors proposes a dividend of maximum SEK 2.75/share, minus the amount that may have been distributed through share repurchases during Q1 2018. Direct investment Scout Gaming Group Fee structure Management fee 1% p.a. up to NAV of SEK 1 billion 0.5% p.a. on NAV over SEK 1 billion Carried interest 5% over a preferred return of 5% to investors Size of initial investment SEK 8m N.B. This presentation should be read along with all comments and definitions given in the OMX prospectus and the financial reports available at www.naxs.se 2
Snapshot IPO in May 2007 At Q4 2017, 9 private equity funds, 59 portfolio companies, 57 exits and 1 direct investment in a listed company Summary Financial Information (Q4 2017) Equity/share: SEK 60.17 Private equity fund investments: 44% of equity NAXS AB Total equity MSEK 821 SEK 60.17 per share NAXS A/S Naccess Partners Direct investments Small cap buyout Fund size less than MEUR 300 Mid cap buyout Fund size MEUR 300 2,000 Large cap buyout Fund size above MEUR 2,000 Small cap special situations Valedo I & II Intera I & II FSN III Herkules III Nordic Capital VII Apax VII Mimir Invest AB IPO IPO EXITED EXITED Sweden Finland Norway/Nordic EXITED IPO EXITED Norway/Nordic EXITED EXITED EXITED Nordic/Europe IPO IPO Europe/Global EXITED IPO EXITED Primarily Nordic IPO 3
NAV evolution The NAV per share increased by 6.2% during 2017 75 70 65 60 55 50 45 40 2 43,92 46,09 44,86 2 2 2 2 2 2 48,85 50,53 51,94 52,06 54,16 52,76 2 54,52 2,5 2,5 2 2 53,3 54,19 2,5 2,5 2 2 56,69 57,68 2,5 2,5 2,5 2 2 2 0,4 0,5 61,73 60,41 60.17 35 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q32017 Q4 2017 NAV Dividend paid 2012 Dividend paid 2013 Dividend paid 2014 Dividend paid 2015 Dividend paid 2016 4
57 exits (Q4 2017) 116 portfolio companies have been acquired since inception in 2007, 57 of which have been fully exited 20 15 10 13 8 9 5 The 57 exits have generated an average gross IRR of 23% 9 9 3 5 0 10 10 7 6 7 1 3 3 3 3 3 4 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Remaining companies Exited 5
Examples of recent exits in the press
NAXS On a street near you!
Summary 9 private equity funds 7 managers 57 underlying portfolio companies 1 direct investment in a listed company High degree of diversification with attractive Nordic-based companies No of companies acquired per year 116 companies acquired by underlying funds over a 10- year period 57 exits and more than 20 recapitalizations as of Q4 2017 20 15 10 5 0 8 5 9 13 9 9 3 10 10 7 6 7 1 3 3 3 3 3 4 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Average holding period of current portfolio companies is approx. 5.5 years Remaining companies Exited For FY 2017, the board of directors intends to propose a dividend of maximum SEK 2.75/share, minus the amount that may have been distributed through share repurchases during Q1 2018. Value transfer to shareholders via dividends and/or share repurchases 8
AB Appendix
Current portfolio 9 private equity funds: 8 buyout funds and 1 special situations fund Buyout Funds Fund size Segment Vintage Geographic focus # of current portfolio companies # of exited portfolio companies Website NAXS original Commitment Valedo Partners Fund I AB MSEK 1,000 Small cap 2007 Sweden 1 8 www.valedopartners.se MSEK 60 Intera Fund I KY MEUR 125 Small cap 2007 Finland 3 4 wwww.interapartners.fi MEUR 7 Apax Europe VII LP MEUR 11,000 Large cap 2008 Europe/Global 13 22 www.apax.com MEUR 15 FSN Capital III LP MEUR 375 Mid cap 2008 Norway/Nordic 3 7 www.fsncapital.no MEUR 10 Herkules Private Equity Fund III LP MNOK 6,000 Mid cap 2008 Norway/Nordic 4 7 www.herkulescapital.no MNOK 40 Nordic Capital Fund VII LP MEUR 4,300 Large/mid cap 2008 Primarily Nordic 13 5 MEUR 20 Intera Fund II KY MEUR 200 Small cap 2011 Finland 9 3 wwww.interapartners.fi MEUR 7.25 Valedo Partners Fund II AB MSEK 2,000 Small cap 2011 Sweden 10 1 www.valedopartners. MSEK 65 Special Situations Fund Fund size Segment Vintage Geographic focus # of current portfolio companies # of exited portfolio companies Website NAXS original Commitment Mimir Invest AB < MSEK 500m Small cap 2017 Primarily Nordic 3 0 www.mimirinvest.com MSEK 50 10
AB Board of Directors & Executives NAXS AB (publ) Board of Directors John Chapman (1956) Chairman Tony Gardner-Hillman (1956) Board Member Andrew Wignall (1964) Board Member Damhnait Ni Chinneide (1974) Board Member Lawyer and Chartered Financial Analyst (CFA) specializing in representing shareholder interests in connection with the operation and management of investment funds Example of board positions: ACP Capital Limited, Central Asia Regional Growth Fund, Black Sea Property Fund, Trinity Capital Plc Lawyer with over 30 years of extensive experience in investment funds, corporate and trust company law, regulation and practice. Example of board positions: Bellzone Mining Plc, The Ottoman Fund Limited, Black See Property Fund Limited, ACP Capital Limited Fellow of the Institute of Chartered Accountants in England and Wales Independent non-executive director of a number of private equity, real estate and other alternative fund structures Example of board positions: Alden Global Capital, DN Capital, Capvis Equity Partners Priveq Investments 16 year career in global financial markets in both banking and asset management, with various positions at Pioneer Investments, Lee Overlay Partners and JPMorgan BA in Finance from National University of Ireland and Masters in Financial Services from University College Dublin NAXS AB (publ) Executives Lennart Svantesson (1953) CEO Gösta Lundgren (1955) CFO Former CEO of Bure Equity AB, Scribona AB, Arthur D. Little Scandinavia Example of board positions: Vehco AB, Icomera AB, Chalmers Innovation AB Former CFO of Varyag Resources and auditor at Osborne Johnson Revisionsbyrås AB
A/S Board of Directors NAXS Nordic Access Buyout A/S is the holding company for NAXS fund investments Grace Reksten Skaugen (1953) Chairperson Robin Ahlström (1946) Board Member John Chapman (1956) Board Member Lennart Svantesson (1953) Board Member Former Director Corporate Finance, Orkla Enskilda Securities Example of board positions: Investor AB, Orkla ASA, Lundin Petroleum AB Former CEO of Alfred Berg and former Head of Nordic Region, Goldman Sachs Example of current board positions: Stronghold AB, Niam AB, Ahlström Oy Other positions: industrial advisor to Altor Equity Partners Lawyer and Chartered Financial Analyst (CFA) specializing in representing shareholder interests in connection with the operation and management of investment funds Example of board positions: ACP Capital Limited, Central Asia Regional Growth Fund, Black Sea Property Fund, Trinity Capital Plc CEO of NAXS AB Former CEO of Bure Equity AB, Scribona AB, Arthur D. Little Scandinavia Example of board positions: Vehco AB, Icomera AB, Chalmers Innovation AB
Naccess Partners AB Investment advisor Thomas Åkerman (1955) Managing Partner Amaury de Poret (1971) Managing Partner Co-founder of the NAXS Group Over 20 years of experience in investment banking and private equity Former head of Corporate Finance for Sweden at Alfred Berg ABN Amro Former head of Merger & Acquisition for Sweden at Enskilda Securities Former president of Novestra, a venture capital fund listed on the Stockholm exchange B.Sc. (Economics and Mathematics) from the Stockholm and Lund Universities. Co-founder of the NAXS Group Over 15 years of private equity and alternative assets experience Associate in private equity and merger & acquisition practices of leading international law firms (lastly at the Stockholm office of White & Case) Part of the management team of a private equity fund managed out of São Paulo, Brazil and Washington DC Swiss-qualified attorney and LL.B. from the University of Fribourg, Switzerland. 13
Investment characteristics and Company Facts* Investment criteria Investments in private equity funds, which have one or more of the Nordic countries (Denmark, Finland, Norway and Sweden) as their investment focus Legal form A public limited liability company incorporated under Swedish law Investment alongside private equity funds and other alternative assets funds in the Nordic countries Investable assets Up to SEK 1,000 million Up to 25% of NAV may be invested in any securities or assets in any jurisdiction. Number of shares 15 000 000 shares (excl. share repurchase)/ single share class Investment size and diversification NAXS intends to hold a diversified portfolio of investments However, based on market conditions, up to 40% of NAV may be placed in a single investment Advisory service fee 1% of reported NAV up to SEK 1.0bn, and 0.5% over SEK 1.0bn Carried interest Investors 95.0% and the Manager 5.0%, after a 5.0% preferred return for the benefit of investors Listing NASDAQ OMX Stockholm Dividend policy 50 75% of profit after tax, excluding unrealized income and costs Ticker NAXS SS in Bloomberg NAXS.ST in Reuters Financing & management of net cash Fund investments are financed through equity Liquid assets/net cash invested in secure short interestbearing instruments only Auditor Reporting Ernst & Young Aggregate NAV reported on a quarterly basis * Please refer to www.naxs.se and the OMX listing prospectus for exhaustive information 14
Selected definitions / Contact information Selected definitions* Buyout fund A private equity fund, whose strategy is to acquire a controlling interest in the targeted companies Commitment The maximum amount that a limited partner agrees to invest in a fund Current commitments Acquisition cost for private equity fund investments, plus remaining commitments to private equity funds Gross IRR The internal rate of return generated annually at the underlying private equity funds level, before the deduction of the management fees and carried interest Net asset value The fair value of total assets, less net debt (corresponds to equity) Net debt/net cash Cash and cash equivalents, short-term investments and interest-bearing current and long-term receivables, less interest-bearing current and longterm liabilities Private equity fund investments Fair value of investments in private equity funds Special situations fund A private equity fund, whose strategy is to acquire companies, where an active ownership is required, such as under-performing companies, and/or imply complex transactions, such as carve-outs from larger conglomerates Total exposure to private equity fund investments Private equity funds investments and remaining commitments to private equity funds Contact information NAXS AB Lennart Svantesson, CEO Grev Turegatan 10 114 46 Stockholm Email: lennart.svantesson@naxs.se Tel: +46 733 110 011 Naccess Partners AB Thomas Åkerman Email: thomas@naccess.se Amaury de Poret Email: adp@naccess.se Pareto Securities AB (share and trading information) Joakim Appeltofft Email: Joakim.appeltofft@paretosec.com Tel: +46 40 75022 * For a full set of definitions please refer to the last page of the Company s financial reports or www.naxs.se 15