naxs ab january2020...naxs 4 navevolution the nav per share decreased by 0.8% during q4 2019 and...
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www.naxs.se. Grev Turegatan 10, 1tr, SE-114 46 Stockholm, Sweden. Phone: +46 (0) 8 611 33 25
January 2020NAXS AB
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
NAXS
• NAXS is a company listed on NASDAQ Stockholm and investing primarily in private equity funds with a Nordic focus. NAXS 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:
• 11 private equity funds from 8 managers
• 44 underlying portfolio companies (remaining after 90 exits)• 6 vintage years (2007, 2008, 2011, 2017, 2018 and 2020) and exposure to large, mid and small cap segments
• NAXS also offers an exposure to 2 listed companies:
• Scout Gaming Group, a provider of Daily Fantasy Sports listed on NASDAQ First North
• Awilco Drilling, a drilling operator listed on the Oslo exchange
• In addition, NAXS holds a senior secured bond issued in 2018 by Jacktel AS, a wholly-owned subsidiary of Master Marine AS. The Bond has a tenor of 5 years and a coupon of 10% p.a., with quarterly interest payments.
• As per Q4 2019, 90 full exits and more than 30 recapitalisations. The 90 exits have generated an average gross IRR of 19%.
• NAXS has a distribution policy aiming at returning to shareholders, in the long-term, 50% to 75% of profits after tax. For FY 2019, the Board of Directors of NAXS proposes a dividend of SEK 3.00/share, representing a dividend yield of 6.1% (share price at 31/12, 2019)
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Permanent capital focusing on the Nordic market
Fee structure
Management fee Carried interest
1% p.a. up to NAV of SEK 1 billion
5% over a preferred returnof 5% to investors
0.5% p.a. on NAV over SEK 1 billion
–
Buyout funds Commitment Fund Size
Apax Europe VII EUR 15m EUR 11bn
FSN Capital III EUR 10m EUR 375m
Herkules Private Equity III NOK 40m NOK 6bn
Intera Fund I EUR 7m EUR 125mIntera Fund II EUR 7,25m EUR 200m
JAB Consumer Fund – GCB II USD 5bn
JAB Consumer Fund – GCB III
Nordic Capital Fund VII EUR 20m EUR 4.3bn
Nordic Capital CV1 EUR 4m EUR 2.5bn
Valedo Fund II SEK 65m SEK 2bn
Special situations fund Commitment Fund Size
Mimir Invest AB SEK 50m < SEK 500m
Direct investments Size of initial investment
Scout Gaming Group SEK 9.5m
Awilco Drilling Plc SEK 30.7m
Jacktel A/S SEK 28.3m
NAXS Snapshot Q4 2019
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Sweden Finland Norway/Nordic
NAXS AB
Total equity MSEK 710SEK 63.63 per share
Europe/Global
NAXS A/S Naccess Partners
Valedo I & II Intera I & II FSN III Herkules III Nordic Capital VIIApax VII
Mid cap buyoutFund size MEUR 300–2,000
Large cap buyoutFund size above MEUR 2,000
Nordic/EuropeNorway/Nordic
Small cap buyoutFund size less than MEUR 300
EXITEDEXITED
EXITED
EXITEDIPO
IPOEXITEDIPO
IPO
IPO EXITED
Mimir Invest AB
Small cap special situations
EXITED
IPO in May 2007 – As of Q4 2019, 11 private equity funds, 44 portfolio companies, 90 exits, direct investments in 2 listed companies and 1 bond
Primarily Nordic
IPO
IPO
Direct investments
Nordic Capital CV1
JAB Consumer FundGCB II
Global
EXITED
JAB Consumer FundGCB III
EXITED
NAXS
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NAV evolutionThe NAV per share decreased by 0.8% during Q4 2019 and increased by 7.5% over 12 months (including the dividend paid)
52,78
54,52
53,3 54,1956,69 57,68
61,55 60,41 60,1762,32 60,73 62,31 61,81
63,75 62,264,16 63,63
0,4
0,40,4
0,4
0,40,4
0,40,4 0,4
0,40,4
0,4 0,4
0,40,4
0,4 0,4
0,5
0,50,5
0,5
0,50,5
0,50,5 0,5
0,50,5
0,5 0,5
0,50,5
0,5 0,5
2
22
2
22
22 2
22
2 2
22
2 2
2,32,3
2,32,3
2,32,3
2,32,3 2,3
2,32,3
2,3 2,32,3
2,32,3 2,3
2,52,5
2,52,5
2,52,5 2,5
2,52,5
2,5 2,52,5
2,52,5 2,52,53
2,53 2,532,53
2,532,53 2,53
2,782,78 2,78
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40
45
50
55
60
65
70
75
80
Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019
NAV Dividend paid 2012 Dividend paid 2013 Dividend paid 2014
Dividend paid 2015 Dividend paid 2016 Dividend paid 2018 Dividend paid 2019
0 0 1
53 3 2
53
5
1
12
4
11
16
11
13
1412
6
3
2
11
0
2
4
6
8
10
12
14
16
18
20
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Remaining companies Exited
NAXS
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90 exits (Q4 2019)
The 90 exits have generated an average gross IRR of 19%
134 portfolio companies have been acquired since inception in 2007, 90 of which have been fully exited
NAXSExamples of exits in the press
NAXSOn a street near you!
NAXS
134 companies acquired by underlying funds over a 13-year period
90 exits and more than 30 recapitalizations as of Q4 2019
Average holding period of current portfolio companies is approx. 4.5 years
No of companies acquired per year
• 11 private equity funds• 8 managers• 44 underlying portfolio companies
• direct investments in 2 listed companies and 1 bond
High degree of diversification with attractive Nordic-based companies
Value transfer to shareholders via dividends and/or share repurchases
Summary
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For FY 2019, NAXS BoD proposes a dividend of SEK 3.00/share, representing a dividend yield of 6.1% (share price 31/12 2019)In addition, NAXS repurchased >6% of its own shares during ́2019
0 0 1
53 3 2
53
5
1
12
4
11
1611
1314
12
63
21
1
0
2
4
6
8
10
12
14
16
18
20
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Remaining companies Exited
AppendixNAXS AB
NAXS portfolio
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11 private equity funds and direct investments in 2 listed companiesand 1 bond
Buyout Funds Fund size Segment VintageGeographic focus
# of current portfolio companies
# of exitedportfolio companies Website
NAXSoriginal Commitment
Intera Fund I KY MEUR 125 Small cap 2007 Finland 1 6 wwww.interapartners.fi MEUR 7
Apax Europe VII LP MEUR 11,000 Large cap 2008 Europe/Global 10 26 www.apax.com MEUR 15
FSN Capital III LP MEUR 375 Mid cap 2008 Norway/Nordic 1 9 www.fsncapital.no MEUR 10
Herkules Private Equity Fund III LP MNOK 6,000 Mid cap 2008 Norway/Nordic 1 10 www.herkulescapital.no MNOK 40
Nordic Capital Fund VII LP MEUR 4,300 Large/mid cap 2008 Primarily Nordic 2 17 www.nordiccapital.com MEUR 20
Intera Fund II KY MEUR 200 Small cap 2011 Finland 7 4 wwww.interapartners.fi MEUR 7.25
Valedo Partners Fund II AB MSEK 2,000 Small cap 2011 Sweden 8 3 www.valedopartners. MSEK 65
Mimir Invest AB <MSEK 500m Small cap 2017 Primarily Nordic 7 0 www.mimirinvest.com MSEK 50
Nordic Capital CV1 MEUR 2,500 Large/mid cap 2018 Primarily Nordic 8 1 www.nordiccapital.com MEUR 4
JAB Consumer Fund GCB II USD 5,000 Large Cap 2018 Global 4 0 www.jabholdco.com MUSD 5
JAB Consumer Fund GCB III n/a Large cap 2020 Global 0 0 www.jabholdco.com
Direct Investments Sector Type of instrumentTiming of original investment Website
Size ofinitial investment
Scout Gaming Group AB iGaming listed share (Nasdaq First North) Q4 2017 www.scoutgaminggroup.com MSEK 9.5
Awilco Drilling PLC Oil & Gas listed share (Oslo Exchange) Q1 2018 www.awilcodrilling.com MSEK 30.7
Jacktel AS Oil & Gas bond Q4 2018 www.master-marine.no MSEK 28.3
NAXS AB
Tony Gardner-Hillman(1956)Board Member
Board of Directors & Executives
• 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: BellzoneMining Plc, The Ottoman Fund Limited, Black See Property Fund Limited, ACP Capital Limited
John Chapman(1956)Chairman
Andrew Wignall(1964)Board Member
• 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
NAXS AB (publ) – Board of Directors
• Former CEO of Bure Equity AB, ScribonaAB, Arthur D. Little Scandinavia
• Example of board positions: Vehco AB, Icomera AB, Chalmers Innovation AB
Lennart Svantesson(1953)CEO
Gösta Lundgren(1955)CFO
• Former CFO of Varyag Resources and auditor at Osborne Johnson Revisionsbyrås AB
NAXS AB (publ) – Executives
Damhnait Ni Chinneide(1974)Board Member
• 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 A/SBoard of Directors
• 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
John Chapman(1956)Board Member
NAXS Nordic Access Buyout A/S is the holding company for NAXS’s investments
• CEO of NAXS AB
• Former CEO of Bure Equity AB, ScribonaAB, Arthur D. Little Scandinavia
• Example of board positions: Vehco AB, Icomera AB, Chalmers Innovation AB
Lennart Svantesson(1953)Board Member
Robin Ahlström(1946)Chairman
• 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
Naccess Partners AB
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Investment advisor
Amaury de Poret(1971)Managing Partner
• 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.
Thomas Åkerman(1955)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.
NAXS
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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
• Investment alongside private equity funds and other alternative assets funds
• Up to 40% of NAV may be invested in any securities or assets in any jurisdiction.
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
Dividend policy • 50–75% of profit after tax, excluding unrealized income and costs
Financing & management of net cash
• Fund investments are financed through equity
• Liquid assets/net cash invested in secure short interest-bearing instruments only
* Please refer to www.naxs.se and the OMX listing prospectus for exhaustive information
Legal form A public limited liability company incorporated under Swedish law
Investable assets Up to SEK 1,000 million
Number of shares 11,910,061 shares / single share class
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 to investors
Listing NASDAQ OMX Stockholm
Ticker • NAXS SS in Bloomberg
• NAXS.ST in Reuters
Auditor Ernst & Young
Reporting Aggregate NAV reported on a quarterly basis
NAXS
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Selected definitions / Contact informationSelected definitions*
Buyout fundA private equity fund, whose strategy is to acquire a controlling interest in the targeted companies
CommitmentThe maximum amount that a limited partner agrees to invest in a fund
Current commitmentsAcquisition cost for private equity fund investments, plus remaining commitments to private equity funds
Gross IRRThe 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 valueThe fair value of total assets, less net debt (corresponds to equity)
Net debt/Net cashCash and cash equivalents, short-term investments and interest-bearing current and long-term receivables, less interest-bearing current and long-term liabilities
Other investmentsInvestments in financial instruments other than private equity fundsPrivate equity fund investmentsFair value of investments in private equity funds
Special situations fundA 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 and other investmentsPrivate equity funds investments and remaining commitments to private equity funds, as well as other investments
* For a full set of definitions please refer to the last page of the Company’s financial reports or www.naxs.se
Contact information
NAXS AB
Lennart Svantesson, CEOGrev Turegatan 10114 46 StockholmEmail: [email protected]: +46 733 110 011
Naccess Partners AB
Thomas ÅkermanEmail: [email protected] de PoretEmail: [email protected]
Pareto Securities AB (share and trading information)
Joakim AppeltofftEmail: [email protected]
Tel: +46 40 75022