EQT

Investor Presentation • Apr 26, 2022

EQT AB Q1 Announcement 2022

EQT AB

2021

Q3 Announcement

Building a world leader in active ownership strategies

Throughout the first quarter, we have continued to execute on our strategic agenda, further strengthening EQT's ability to generate returns for our clients and make a positive impact at scale. By joining forces with Baring Private Equity Asia (BPEA), we are building a true global leader in active ownership strategies. Moreover, the first three months of the year have also been characterized by active fundraising, continued investment and exit activity and resilient fund valuations. Nevertheless, the quarter is overshadowed by Russia's invasion of Ukraine and the human tragedy taking place. Whilst our portfolio companies had very little activity in the region, EQT is supporting any portfolio companies and the people affected, and all portfolio companies have been urged to wind down any operations in Russia.

Despite the increased market volatility and geopolitical unrest, deal activity continued both on the investment and exit side. Execution has been somewhat slower over the past quarter, but we continue to see a strong pipeline of thematic investment opportunities. Fundraising progressed well in a very active market. We recently set the hard cap for EQT X, and our newest fund, EQT Active Core Infrastructure, was launched in early March. As a result of our thematic investment strategy, value creation developed well across the portfolio, maintaining robust underlying performance and resilient valuations.

Perhaps most notably for this quarter, we announced our combination with BPEA. The combination marks a significant step on EQT's strategic journey, expanding our active ownership strategies across a broad set of international markets. The announcement has been well received among clients and integration planning is progressing successfully. Two previously announced additions to EQT, Life Sciences Partners (LSP) and Bear Logi, closed during the first quarter and have integrated

well. Altogether, EQT will be local-with-locals in 25 countries, covering around 80 percent of global GDP. The combined platform provides an opportunity to broaden investment strategies on a global scale, while allowing us to drive more innovation, share capabilities across strategies, to make us a smarter investor and owner.

To further strengthen EQT's strategic and operational capabilities, two new members to the Executive Committee were announced during the quarter, Christina Drews as new COO and Bahare Haghshenas as Global Head of Sustainable Transformation. Along with a number of other colleagues who recently joined EQT, we are continuously building for scalable growth across regions and investment strategies.

To further elevate our ability to make a positive impact at scale, the EQT AB board has established a Sustainability Committee, the first of its kind in the private capital space dedicated to sustainability at the Board level. The Committee will provide a platform for debate on EQT's sustainability agenda between the Board and Management - as well as with global leaders in sustainability. Recently we also committed EQT's portfolio companies to achieving net zero by 2040, ten years faster than required by climate science.

Global challenges remain and uncertainty is set to continue. However, our active ownership strategies are designed to look beyond market cycles, backing companies that can make a positive impact and accelerate long-term secular trends. By building a true global leader in active ownership strategies, we build a firm which is set to manage uncertainty and create returns for our clients in the most responsible way.

Christian Sinding, CEO and Managing Partner

Building a world leader in active ownership strategies

Highlights for the period Jan-Mar 2022 (Jan-Mar 2021)

Strategic

• EQT announced the combination with Baring Private Equity Asia (BPEA), creating a scaled platform in Asia. The transaction is expected to close in Q4 2022
• Launch of EQT Active Core Infrastructure a longer-hold fund targeting core infrastructure companies that provide essential services to society
• The acquisition of Life Sciences Partners (LSP) closed on 28 February 2022, creating a new business line, EQT Life Sciences
• Bear Logi, a value-add logistics team focused on the Japanese and Korean markets, joined EQT Exeter to further strengthen EQT's footprint in Asia. The transaction closed on 27 January 2022

Fundraising

• AUM increased to EUR 77bn, of which EUR 2.4bn relates to LSP's AUM per 31 March 2022
• Fundraising continued for EQT Growth, EQT Future and various funds within the business line EQT Exeter, including EQT Exeter US Industrial Core-Plus IV
• Fundraising was initiated for EQT X, EQT Ventures III, EQT Active Core Infrastructure and EQT Exeter US Industrial Value VI

Investment activity

• Total investments by the EQT funds in the quarter amounted to EUR 3bn
• Investments during the quarter include Recipharm add-ons Arranta Bio and Vibalogics (EQT IX), InstaVolt and Stockland Retirement Living (EQT Infrastructure V), SNFL and IFG (EQT Future) and Ardoq (EQT Growth)
• Investment level in key funds as of 31 March 2022, excluding events after the reporting period:
• EQT IX: 75-80%
• EQT Infrastructure V: 70-75%

Exit activity

• Total gross fund exits announced in the quarter amounted to EUR 2bn
• Signed exits include Forsta (EQT Mid Market US), Elevate (EQT Mid Market), Touhula (EQT Mid Market) and IFS and WorkWave (EQT VIII)

Highlights for the period Jan-Mar 2022 (Jan-Mar 2021)

Value creation

• EQT Infrastructure III, EQT VII and EQT VIII continued to develop "Above plan"
• EQT Infrastructure II, EQT Infrastructure IV, EQT Infrastructure V and EQT IX continued "On plan"

People & Sustainability

• The number of full-time equivalent employees and on-site consultants (FTE+) increased by 159 during the quarter and amounted to 1,319 (752), of which 1,223 (692) were FTEs. LSP and Bear Logi accounted for 56 FTE+ as of 31 March 2022
• Bahare Haghshenas, Global Head of Sustainable Transformation, joined the Executive Committee
• EQT Future announced three new Mission Board members: Ho Ching, recently retired CEO of Temasek; Naina Lal Kidwai, former Country Head of HSBC India; and Svein Tore Holsether, President and CEO of Yara International; and an Impact Director, Hedda Pahlson-Moller, Co-founder and CEO of TIIME.org
• EQT hired Christina Drews as new COO, to strengthen the strategic development of EQT's operating platform. Christina Drews will join EQT and the Executive Committee in June
• EQT AB established a Sustainability Committee, marking the first Board-level commitment to sustainability in the private markets industry

Other

• EQT priced a total of EUR 1.5bn in sustainability-linked bonds; a EUR 750m sustainability-linked bond maturing in 2028 and a EUR 750m sustainability-linked bond maturing in 2032. EQT intends to use the net proceeds of the bonds, together with the issue of ordinary shares, to fund the consideration and transaction expenses in connection with the combination with BPEA
• EQT AB's long-term issuer credit rating has been confirmed by Fitch Ratings Ltd. to be A- with a negative outlook as of 21 March 2022

Value creation
	On plan	Above plan
Private Capital	EQT IX	EQT VII EQT VIII
Real Assets	EQT Infrastructure II EQT Infrastructure IV EQT Infrastructure V	EQT Infrastructure III

Events after the reporting period

• Investment level in key funds as of 26 April 2022, were 75-80% in EQT IX and 70-75% in EQT Infrastructure V
• EQT set the hard cap for EQT X at EUR 21.5bn
• EQT has agreed with its RCF lenders to increase the size of its existing RCF by EUR 500m to EUR 1,500m
• EQT committed EQT's portfolio companies to achieving net zero by 2040, ten years faster than required by climate science

Assets under management (AUM)

AUM by segment (EURbn)	Private Capital	Real Assets	Total
At 31 December 2021	33.9	39.5	73.4
Gross inflows*	2.8	1.3	4.1
Step-downs	-	-	-
Exits	(0.4)	(0.4)	(0.8)
FX and other	(0.1)	0.5	0.4
At 31 March 2022	36.2	40.9	77.2
Since 31 December 2021	7%	4%	5%

Development in the first quarter 2022 Development during the last twelve months

AUM by segment (EURbn)	Private Capital	Real Assets	Total 58.7
At 31 March 2021	34.4	24.3
Gross inflows*	7.4	19.5	26.9
Step-downs	(0.9)	(0.2)	(1.1)
Exits	(4.8)	(4.0)	(8.7)
FX and other	0.1	1.3	1.4
At 31 March 2022	36.2	40.9	77.2
Since 31 March 2021	5%	69%	31%

Note: Any investment activity in above tables (part of gross inflows and/or exits) is included based on its impact on fee-generating AUM. Individual deals in a period are therefore included based on remaining or realized cost, timing of transaction closing and only in funds which are changing fees based on net invested capital. *Gross Inflow of EUR 9.0bn of Exeter's AUM as of 1 April 2021, and EUR 2.4bn of LSP's AUM as of 28 February 2022.

Gross investment performance of key EQT funds

As of 31 March 2022

Start			Committed		Invested capital		Value of investments			Gross
(EURbn)	date	AUM	Capital	Total		Realized Remaining Total			Realized Remaining MOIC
Private Capital
EQT VII	Jul-15	3.1	6.9	5.9	2.8	3.1	16.5	9.2	7.3	2.8x
EQT VIII	May-18	7.7	10.9	8.8	1.2	7.5	22.4	3.8	18.6	2.6x
EQT IX	Jul-20	15.8	15.7	12.1	-	12.1	17.3	-	17.3	1.4x
Real Assets
EQT Infrastructure II	Oct-12	0.3	1.9	1.7	1.4	0.3	3.7	3.2	0.5	2.2x
EQT Infrastructure III	Nov-16	2.7	4.0	3.5	0.8	2.7	9.4	2.2	7.2	2.7x
EQT Infrastructure IV	Nov-18	6.7	9.1	6.8	0.3	6.6	10.3	0.5	9.9	1.5x
EQT Infrastructure V	Aug-20	16.1	16.0	9.2	-	9.2	9.7	-	9.7	1.1x
Other		24.6		26.6			59.9
Total		77.2		74.5			149.3
Note: Invested capital and value of investments reflect only closed transactions as per the reporting date.

(EURbn)	Gross MOIC 30 Jun 2021	Gross MOIC 30 Sep 2021	Gross MOIC 31 Dec 2021	Gross MOIC 31 Mar 2022	Expected Gross MOIC 31 Mar 2022
Private Capital
EQT VII	2.6x	2.7x	2.8x	2.8x	Above plan
EQT VIII	2.1x	2.6x	2.6x	2.6x	Above plan
EQT IX	1.1x	1.3x	1.4x	1.4x	On plan

Real Assets
EQT Infrastructure II	2.1x	2.1x	2.2x	2.2x	On plan
EQT Infrastructure III	2.0x	2.1x	2.6x	2.7x	Above plan
EQT Infrastructure IV	1.2x	1.3x	1.4x	1.5x	On plan
EQT Infrastructure V	1.0x	1.0x	1.0x	1.1x	On plan

Note: Data for current Gross MOIC reflect only closed investments and realizations. For Private Equity funds (part of segment Private Capital), "On Plan" refers to expected Gross MOIC between 2.0-2.5x. For Infrastructure funds (part of segment Real Assets), "On Plan" refers to expected Gross MOIC between 1.7-2.2x.

Definitions

Active funds

Funds currently investing or with not yet realized investments

AUM

Assets Under Management ("AUM") represents the total committed capital from fund investors and net invested capital to which the EQT AB Group is entitled to receive management fees. All of the Group's AUM is fee-generating

Committed capital

The total amounts that fund investors agree to make available to a fund during a specified time period

Commitment period / Investment period

First phase of a fund lifecycle after fundraising, in which most of a fund's committed capital is invested into portfolio companies. Management fees are normally based on committed capital during this period Current Gross MOIC (Multiple of Invested Capital)

A fund's Gross MOIC based on the current total value and invested capital

EQT

Where used on its own, is an umbrella term and may refer interchangeably to EQT AB, the EQT AB Group, SEP Holding Group and/or EQT funds, as the context requires

EQT AB Group or the Group

EQT AB and its direct or indirect subsidiaries (for the avoidance of doubt excluding the EQT funds and their portfolio companies) Exits

Cost amount of realized investments (realized cost) from an EQT fund Expected Gross MOIC

A fund's expected Gross MOIC at termination, when a fund is fully realized, based on the estimated total value and invested capital upon realization

Final close

The date determined for each fund upon which admissions to the fund by investors are last accepted by the fund manager

Final close

The date determined for each fund upon which admissions to the fund by investors are last accepted by the fund manager

FTE

The number of full-time equivalent personnel on EQT AB Group's payroll FTE+

The number of full-time equivalent personnel and contracted personnel working for EQT AB Group

Fund size

Total committed capital for a specific fund

Gross inflows

New commitments through fundraising activities or increased investments in funds charging fees on net invested capital

Gross fund exits

Value of realized investments (realized value) from an EQT fund. Refers to signed realizations in a given period

Gross MOIC

Total value of investments divided by total invested capital Invested capital

Committed capital that fund investors have invested in a fund Investment level / % Invested

Measures the share of a fund's total commitments that has been utilized. Calculated as the sum of (i) closed and/or signed investments, including announced public offers, (ii) any earn-outs and/or purchase price adjustments and (iii) less any expected syndication, as a % of a fund's committed capital

Investments

Signed investments by an EQT fund

Key funds

Funds with commitments that represent more than 5% of total commitments in active funds, respectively, as well as EQT Infrastructure II

Net invested capital

Total cost of investments not yet realized (remaining cost). Management fees are generally based on net invested capital after the commitment period / investment period

Post-commitment period / Divestment period

Phase of a fund lifecycle after the commitment period, in which most of a fund's investments are realized. Management fees are normally based on the net invested capital during the period Private Capital

Business segment comprised of business lines EQT Private Equity, EQT Ventures, EQT Life Sciences, EQT Growth, EQT Public Value and EQT Future

Real Assets

Business segment comprised of business lines EQT Infrastructure, EQT Active Core Infrastructure and EQT Exeter

Realized value / (Realized cost)

Value (cost) of an investment, or parts of an investment, that at the time has been realized

Remaining value / (Remaining cost)

Value (cost) of an investment, or parts of an investment, currently owned by the EQT funds

Start date

A fund's start date is the earlier of the first investment or the date when management fees are charged from fund investors

Step-down

Step-downs in AUM generally resulting from the end of the investment period in an existing fund or when a subsequent fund starts to invest. Fees in a specific fund will normally be charged on net invested capital post step-down

Target Gross MOIC

Measure used in fundraising of an EQT fund as a fund's target level of investment return based on Gross MOIC

Financial calendar

Annual shareholders' meeting 2022, Stockholm 1 June 2022

Half-year Report 2022 January–June 2022 14 July 2022

Quarterly announcement July–September 2022 18 October 2022

Contacts

Kim Henriksson CFO +46 8 506 55 300 kim.henriksson@eqtpartners.com

Olof Svensson Head of Shareholder Relations +46 72 989 09 15 olof.svensson@eqtpartners.com

Richard Buch Managing Director, Communications +46 72 989 09 11 richard.buch@eqtpartners.com

Auditor's review

This quarterly announcement has not been reviewed by EQT AB's auditors.

This is information that EQT AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons, at 07:30 CEST on 26 April 2022.

About EQT

EQT is a purpose-driven global investment organization focused on active ownership strategies. With a Nordic heritage and a global mindset, EQT has a track record of almost three decades of delivering consistent and attractive returns across multiple geographies, sectors and strategies. EQT has investment strategies covering all phases of a business' development, from start-up to maturity. EQT today has EUR 77 billion in assets under management across 36 active funds within two business segments – Private Capital and Real Assets.

With its roots in the Wallenberg family's entrepreneurial mindset and philosophy of long-term ownership, EQT is guided by a set of strong values and a distinct corporate culture. EQT manages and advises funds and vehicles that invest across the world with the mission to future-proof companies, generate attractive returns and make a positive impact with everything EQT does.

The EQT AB Group comprises EQT AB (publ) and its direct and indirect subsidiaries, which include general partners and fund managers of EQT funds as well as entities advising EQT funds. EQT has offices in 23 countries across Europe, Asia-Pacific and the Americas and more than 1,300 employees.

More info: www.eqtgroup.com

Follow EQT on LinkedIn, Twitter, YouTube and Instagram

Our values What we stand for

High performing Respectful Entrepreneurial Informal Transparent

Purpose Why we exist

To future-proof companies and make a positive impact.

Vision What we strive for

To be the most reputable investor and owner.

Mission

What we do and how

With the best talent and network around the world, EQT uses a thematic investment strategy and distinctive value creation approach to future-proof companies, creating superior returns to EQT's investors and making a positive impact with everything we do.