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TIN FUNDSTechnology, Innovation & Novel thinking March 2019

TIN FONDER

Why TIN Funds?

• We want to retain the leadership

position in investing in innovative

companies

• Transparency: creating an asset

manager that is engaging

• We want to continue building the

Nordic Tech and Innovation eco system

• Independent asset managers with

principal owners generate better

returns

© Atle Investment Services 2

TIN FONDER

Fund managersErik Sprinchorn Carl Armfelt

1995-2000 Swedbank Robur

2000-2004 SEB Enskilda

2004-2007 Alecta

2007-2011 Brummer & Partners


2007-2011 Brummer & Partners

2011-2013 CA Cheuvreux

2013-2014 Nordea


Historic Performance

• Best return of ALL funds on morningstar.se in last 5 and 10 years

• Total return 224% last 5 years and 945% last 10 years

• Average annual return18% per year over 5 years and 25% per year over 10 years


TIN FONDER

• Technology and innovation

– Faster growth than general economy

• The Nordics

– Great region to invest in long term

• Small caps

– Small to medium companies generate better

returns over time

• Profitable growth

– Profitable growth compounds value over time

– Focus on strong cash flows

– Avoid speculative ”stories”, unprofitable

companies

A fund for you if you believe in:

Core Ny Teknik

Nordics

InnovationSmall Caps

Software

Med Tech

Digital Brands

Attractive region

Durable value creation

We have a strong network

Quality companies

Profitable growth

Time value


TIN FONDER

Good business climate and stable politics

Blessed with no home markets

World class governance

At the forefront of digital transformation

Investing in the Nordics


TIN FONDER

Entrepreneurship

• Owner operators of flesh and blood

• Founders and managers often significant owners

Growth

• Focus, dedication, often niche dominance

• Easier to grow from small base

Under analyzed

• Few if any analysts following the company

• Often we have been the first institution to invest

Corporate deals

• Smaller companies can make transformative acquisitions

• Higher buyout probability

Why small caps?


TIN FONDER

Investment Process

Long term

horizon

Structural

growth

Sustainable

profitability

Active

management

Company meetings

per year


TIN FONDER

Preserve our digital gems


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Transformative deals

• THQ: acquisitions making a difference Other good acquisitive companies

• Kindred

• MTG

• Storytel

• Stillfront

• CLX

• Probi

• SOBI

• Biogaia


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100 years: from ironware, to hardware, to software


TIN FONDER

The digital transfer of wealth as already started… …… and it will continue!

There is no room for

complacency in the

fast-moving digital

world.”— Marc Benioff, Salesforce.com

“


TIN FONDER

Our first fund: Core Ny Teknik

• Equity fund investing in technology and healthcare

• Primary investment focus small to medium sized innovative companies

• Focus on the Nordics; up to 30% in global companies

• Long term perspective and concentrated portfolio with 40 – 60 holdings

Software Med Tech Digital Brands


TIN FONDER

• Increasing importance of Technology, Healthcare and Digital Brands

• Current trends set to continue into the future

• Long term: global value transfer from old to new technology

Our Vision


TIN FONDER

Integrated publisher and

developer of computer

games. A number of

interesting titles on the way.

Acquisition-oriented.

Entrepreneurally driven with

strong main owner.

Chinese internet

conglomerate, and the

world's largest computer

games company. Owns 40%

of Epic Games with the title

Fortnite among other assets.

Computer game developer

with a broad portfolio of

brands in niche "grand

strategy games".

Entrepreneurally driven with

strong main owner.

By far the market-leading

supplier in the niche live

casino for online. Strong

corporate culture with a

desire to constantly improve.

Norwegian game developer

and publisher with titles such

as Age of Conan, Conan

Exiles and Mutant Year Zero.

Focus on smaller game titles

with short development

cycles.

American game developer

and publisher with titles such

as GTA IV, Civilization, NBA2K

and Red Dead Redemption.

Increasing its share of digital

sales.

Investment company

focusing on innovative

companies with network

effects. The largest holdings

are BlaBlaCar, Gett, Property

Finder and Babylon.

The company makes

software for architects,

engineers and the

construction industry. High

percentage of recurring

revenue and growth of

around 20 per cent.

Largest Holdings(as of 2019-03-01)


TIN FONDER

• Software eats the world

• High growth and profitability

• Trying to find ”hard to replace” software

• Small category winners vs global champions?

Software


TIN FONDER

• Companies with high growth and profitability in focus

• Some companies niche/dependent on one business area – portfolio approach

• Large surface under the curve – regulation makes harder to replace than tech

Med Tech


TIN FONDER

Digital Brands

• Technology changes but brands last

• Digital entertainment is a growth

business

Possessing a powerful

world wide brand is essential

for sustained success.”— Warren Buffett

“


TIN FONDER

• Tech and innovation by nature more global than many other industries

• In the last five years strong contribution from our international investments

• At least 70% Nordics provides focus, up to 30% global provides flexibility

• Global holdings

– Similar to our Nordic champions

– Sometimes at lower valuation

• Outside the Nordics we tend to invest in mid caps rather than small caps

Why up to 30% of the fund global?


TIN FONDER

Growth in EBIT, small companies vs large

0

20

40

60

80

100

120

140

160

180

200

2Q-12 3Q-12 4Q-12 1Q-13 2Q-13 3Q-13 4Q-13 1Q-14 2Q-14 3Q-14 4Q-14 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16 3Q-16 4Q-16 1Q-17 2Q-17 3Q-17 4Q-17 1Q-18 2Q-18 3Q-18

Små bolag Stora bolag ex Equinor


TIN FONDER

• Innovation happens in clusters and we want to support keeping the best

entrepreneurs and companies in the Nordics

• Actively strive for more successful companies coming to the stock market

• We deplore letting our digital gems go to the first best bidder

• Examples of corporate clusters:

– Sweden: IT, Software, Games developers,

– Denmark: Med Tech, Pharma, ”Silicon Valley of Sound”

Corporate Clusters


TIN FONDER

• Dialogue

– We believe a good dialogue between companies and owners enhances responsible

acting

• Influence

– By exclusion we would evade responsibility. Through influence we can help move

companies in the right direction

• Technical innovation

– Technology + innovation = sustainability

Continued innovation is the most important driving force for a sustainable society.

Responsible investing


TIN FONDER

• Policy for responsible investments

– The fund’s overall philosophy for responsible investment is that companies quoted on

Nordic stock markets with long term owners who engage in dialogue are well placed to

act responsibly

– The fund aims to contribute to productive dialogue between companies and owners with

the purpose to establish or strengthen an existing process of continuing improvement in

the area of sustainability

• FN Global Impact

– Companies in which the fund does not see any willingness to change or where the fund

believes the company will not correct its problems within a reasonable time frame will not

be eligble for investment

ESG policy


TIN FONDER

Software

29%

Digital brands

27%

Health

23%

Niche Winners

16%

Cash

5%

Sector Distribution


TIN FONDER

Nemetschek Recurring Revenue


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Tencent an unique ecosystem


TIN FONDER

Funcom pipeline


TIN FONDER

The most popular PC games in the world


TIN FONDER

Our Key Themes

Technology & InnovationCompanies with ”Ny Teknik” are better placed to create shareholder value over time and grow their earnings faster than the general economy

Novel ThinkingThe long term potential in digital assets is underestimated. In the coming 15+ years we see significant wealth transfer from those owning old technology to those owning new technology

Long Term Value CreationTechnology + innovation = sustainability. Innovation is critical for creating a sustainable society. Responsible dialogue between companies and owners yield greater opportunity to act responsibly.

TransparencyOpen dialogue with unit holders creates engagement and interest in holdings as well as investment process


TIN FONDER

Core Ny Teknik

Nordics

InnovationSmall Caps

“Sweet spot”

Software

Med Tech

Digital Brands

Attractive region

Durable value creation

We have a strong network

Quality companies

Profitable growth

Time value


Disclaimer: Historic returns are no guarantee for future returns. Money placed in the fund may decrease in value and there is no guarantee caöpital will be preserved. A fund with risk class 6-7 may see significant chasnges in value up or down, due to its composition and the investment procesws used. KIID, investment memorandum and fund rules and legal information regarding Atle Investment Services are easiest found on our website WWW.TINFONDER.SE

Innovation & Novel Thinking

TIN FONDERc/o Atle Investment Services AB

Grev Turegatan 12A114 46 Stockholm+46 8 520 277 44

[email protected]

© Atle Investment Services

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