NAXS — Interim / Quarterly Report 2012

Jul 18, 2012

NAXS Nordic Access Buyout Fund AB (publ) Interim report January–June 2012

First half-year 2012

• Net profit/loss for the period amounted to KSEK 32,8 (9,5).
• Earnings per share amounted to SEK 2,19 (0.63).
• Net asset value amounted to KSEK 588 (SEK 39.33 per share) at June 30, 2012, compared to KSEK 572 (SEK 37,51 per share) at year-end 2011.
• Net cash amounted to KSEK 148 (SEK 9.90 per share) at June 30, 2012, compared to KSEK 270 (SEK 13,48 per share) at year-end 2011.

Second quarter 2012

• Net profit/loss for the period amounted to KSEK 23,5 (-6,1).
• Earnings per share amounted to SEK 1.57 (-0.41).
• NAXS paid for the first time a dividend, amounting to SEK 0.40 per share for the fiscal year 2011.

Financial summary

	2012	2011	2012	2011
	1/1–6/30	1/1–6/30	4/1–6/30	4/1–6/30
Net profit/loss for the period, KSEK	32 774	9 510	23 540	-6 137

	2012 6/30	2011 12/31
Private equity fund investments, KSEK	437 906	359 840
Private equity fund investments in % of equity	75	64
Outstanding investment commitments, KSEK	253 816	301 642
Total exposure to private equity funds, KSEK	691 722	661 482
Net cash, KSEK	147 901	202 028
Private equity fund investments per share, SEK	29,30	24,01
Net cash per share, SEK	9,90	13,48
Net asset value per share, SEK	39,33	37,51
Share price, SEK	31,00	23,80

Operations

NAXS Nordic Access Buyout Fund AB (publ) ("NAXS" or the "Company") operates as a fund of funds with investments in Nordic buyout funds. The objective is to make the Nordic private equity market accessible for a broader range of investors, while offering liquidity through the Company's publicly traded shares. The investment strategy is oriented towards a selective but diversified fund portfolio.

Operations commenced on April 17, 2007, and the Company was listed on First North on May 14, 2007. Since June 8, 2010, the Company is listed on the NASDAQ OMX Stockholm.

NAXS is the Group's parent company and is headquartered in Stockholm. In addition to the parent company, the Group consists of an operational Norwegian subsidiary, NAXS Nordic Access Buyout AS, headquartered in Oslo ("NAXS AS"). The subsidiary operates as a holding company for the Group's fund investments.

Naccess Partners AB has been contracted as the investment advisor to NAXS AS.

Market review

Recurring sovereign debt concerns in the Eurozone periphery and a substantial fall in public markets indexes marked the second quarter of 2012. Despite this negative macroeconomic background, buyout activity in the Nordic region continued to experience a relatively healthy level of activity across all segments, both on the new acquisitions and on the exit sides. This was to a large extent reflected in NAXS' portfolio.

Fund portfolio

As of June 30, 2012, NAXS had commitments to 8 underlying funds. At the End of the reporting period:

• Private equity fund investments amounted to KSEK 438, which corresponds to 75 percent of the Company's total equity;
• Outstanding investment commitments amounted to KSEK 254, which can be used by the underlying funds for new investments;
• Total exposure to private equity fund investments amounted to KSEK 692, which corresponds to 118 percent of the Company's total equity.

Acquisitions and divestments

During the second quarter of 2012, NAXS underlying funds signed or closed a total of 5 new investments. In addition, a number of add-on investments were made.

Company	Sector	Geography	Fund
Paradigm	Oil & gas industry software	Global	Apax Europe VII
Sport-Master	Sporting goods retail	Denmark	Nordic Capital Fund VII
Tokmanni	Discount retail	Finland	Nordic Capital Fund VII
Cambio Healthcare Systems	Healthcare industry software	Sweden	Valedo Partner Fund II
Aditro Logistics	Third-party logistics	Sweden	Valedo Partners Fund II

One exit occurred during the second quarter of 2012, with Intera Fund I divesting Finnish care services provider Mikeva in June.

As of June 30, 2012, NAXS' underlying funds had acquired a total of 82 companies, 5 of which had been fully divested. The 5 exits have on average generated returns in excess of 25% per year.

No. of portfolio companies acquired per year

June 30, 2012

• Total exposure to private equity fund investments: 118% of total equity
• Private equity fund investments: 75% of total equity

	Commitment	Commitment	Initial Commitment Amount
Fund	Year	Currency	(in thousands)
Apax Europe VII LP	2007	EUR	15,000
FSN Capital III LP	2008	EUR	10,000
Herkules Private Equity Fund III LP	2008	NOK	40,000
Intera Fund I KY	2007	EUR	7,000
Intera Fund IIKY	2011	EUR	7,250
Nordic Capital Fund VII LP	2008	EUR	20,000
Valedo Partners Fund I AB	2007	SEK	60,000
Valedo Partners Fund II AB	2011	SEK	65,000

The table below summarizes NAXS' current commitments:

At the end of the period, NAXS' total exposure to private equity fund investments amounts to KSEK 692, of which private equity fund investments amount to KSEK 438 and outstanding investment commitments to KSEK 254.

Underlying funds

Summary information regarding NAXS' underlying funds is provided below:

Apax Europe VII LP

• Fund size: MEUR 11,000
• Segment: large cap
• Geographic focus: primarily Europe
• Vintage: 2008
• Website: www.apax.com
• Description: Apax Europe VII is the latest pan-European fund raised by Apax Partners, one of the largest private equity organizations in the world, operating out of ten offices on three continents. Funds advised by Apax Partners invest in five sectors: tech & telecom, retail & consumer, media, healthcare and financial & business services.
• No. of portfolio companies at June 30, 2012: 26
• No. of fully divested portfolio companies at June 30, 2012: 2

FSN Capital III LP

• Fund size: MEUR 375
• Segment: mid cap
• Geographic focus: Norway and the Nordic region
• Vintage: 2008
• Website: www.fsncapital.no
• Description: FSN Capital III is the third fund raised by FSN Capital Partners. The fund targets the Nordic mid-size market and operates out of offices in of Oslo, Stockholm and Copenhagen
• No. of portfolio companies at June 30, 2012: 8

Herkules Private Equity Fund III LP

• Fund size: MNOK 6,000
• Segment: mid cap

• Geographic focus: Norway and the Nordic region

• Vintage: 2008

• Website: www.herkulescapital.no
• Description: Herkules Private Equity III is the third fund raised by Oslo-based Herkules Capital (formerly Ferd Equity Partners). The fund focuses on the oil services, retail, services, telecom and healthcare industries.
• No. of portfolio companies at June 30, 2012: 9

Intera Fund I KY

• Fund size: MEUR 125
• Segment: small cap
• Geographic focus: Finland
• Vintage: 2007
• Website: www.interapartners.fi
• Description: Intera Fund I the first fund raised by Intera Partners, a Finnish private equity firm focusing on the small cap segment in Finland. Intera's management team has an established track record from Capman, IK Investment Partners, CVC and Altor Equity Partners.
• No. of portfolio companies at June 30, 2012: 6
• No. of fully divested portfolio companies at June 30, 2012: 1

Intera Fund II KY

• Fund size: MEUR 200
• Segment: small cap
• Geographic focus: Finland
• Vintage: 2011
• Website: www.interapartners.fi
• Description: Intera Fund II is the second fund raised by Intera Partners (see Intera Fund I KY above).
• No. of portfolio companies at June 30, 2012: 3

Nordic Capital Fund VII LP

• Fund size: MEUR 4,300
• Segment: mid and large cap
• Geographic focus: primarily the Nordic region
• Vintage: 2008
• Description: Nordic Capital Fund VII is the latest fund being established by Nordic Capital and has a primary focus on medium and large transactions in the Nordic countries.
• No. of portfolio companies at June 30, 2012: 15

Valedo Partners Fund I AB

• Fund size: KSEK 1,000
• Segment: small cap
• Geographic focus: Sweden
• Vintage: 2007
• Website: www.valedopartners.com
• Description: Valedo Fund I the first fund raised by Valedo, a Swedish small cap manager with an industrial focus started in 2006 by a spin-off team from EQT, one of the largest private equity houses in the Nordic region. Valedo invests in small companies, where long-term value creation is primarily driven by growth.
• No. of portfolio companies at June 30 2012: 7
• No. of fully divested portfolio companies at June 30, 2012: 2

Valedo Partners Fund II AB

• Fund size: KSEK 2,000
• Segment: small cap
• Geographic focus: Sweden
• Vintage: 2011
• Website: www.valedopartners.com
• Description: Valedo Fund II is the second fund raised by Valedo (see Valedo Partners Fund I AB above)
• No. of portfolio companies at June 30 2012: 3

Evolution of the investment level since inception

Cash & cash equivalents (% of total equity)

Private equity fund investments (% of total equity)

Group

Financial performance, Second quarter 2012

Operating profit/loss

The operating profit/loss amounted to KSEK 22,890 (-7,491) for the interim period. The profit/loss includes a valuation adjustment of KSEK 25,594 (-5,182). Operating expenses were according to plan and amounted to KSEK 2,704 (2,310).

Financial performance, First half-year 2012

The operating profit/loss amounted to KSEK 31,275 (7,210) for the interim period. The profit/loss includes a valuation adjustment of KSEK 36,437 (11,923). Operating expenses were according to plan and amounted to KSEK 5,162 (4,713).

January 1–June 30, 2012

Valuation adjustments to private equity fund investments: KSEK 36,437, whereof currency effects on private equity fund investments amount to KSEK -6,127.

Financial items

Financial items net totaled KSEK 1,872 (2,979) for the interim period. The interest income amounted to KSEK 1,872 (2,198). Exchange rate profit/loss amounted to KSEK 0 (781).

Tax and net profit/loss

The Group's profit/loss after financial items for the interim period amounted to KSEK 33,147 (10,189). Income taxes amounted to KSEK -373 (-680). Net profit/loss after tax amounted to KSEK 32,774 (9,510). Earnings per share were SEK 2.19 (0.63).

Investments, financing and liquidity

Private Equity Fund Investments

During the interim period, KSEK 43,056 (52,034) was invested in private equity funds. As of June 30, 2012, private equity fund investments amounted to KSEK 437,906 (360,815). Private equity fund investments were adjusted with KSEK 36,437 (11,923) as a result of valuation adjustments to the fund portfolio.

June 30, 2012

Private equity fund investments per share: SEK 29.30

Financing

The Group is financed with shareholders' equity. Shareholders' equity amounted to KSEK 587,914 (562,156) at the end of the interim period, corresponding to SEK 39.33 (37.51) per share and an equity/asset ratio of 100 (100) percent. During the interim period 40 516 shares were repurchased amounting to KSEK 1 037. In the second quarter a dividend amounting to KSEK 5,979 was paid to the shareholders, corresponding to SEK 0.40 per share.

June 30, 2012

Equity per share: SEK 39.33

Net cash

At the end of the interim period, net cash amounted to KSEK 147,901 (202,028), which corresponds to SEK 9.90 (13.48) per share. During the period, cash and cash equivalents were invested in interestbearing instruments or held on interest-bearing bank accounts, in accordance with the Company's policy.

June 30, 2012

Net cash per share: SEK 9.90

Significant risks and uncertainty factors

Significant risks and uncertainty factors are described in the Annual Report 2011.

There has been no significant change in relation to risk and uncertainty factors since the publication of the Annual Report, except for the risks related to the macroeconomic environment described herein under "Future Prospects" below.

NAXS follows closely the development of the macroeconomic environment and its effects on the valuation of the fund investments.

Future prospects

The remaining of 2012 is likely to be affected by an uncertain macroeconomic environment and volatile financial markets, especially in Europe.

The ultimate effect of this environment on private equity activity is difficult to assess, although the Nordic region is likely to remain better insulated from the financial turbulences than the rest of Europe.

Barring significant new negative developments in the Eurozone, NAXS' portfolio can thus reasonably be expected to continue to experience a healthy level of activity.

Parent company

The parent company has not had any sales during the interim period. The profit/loss after financial items amounted to KSEK 1,417 (2,582). Net interest income amounted to KSEK 2,845 (2,582). Income tax amounted to KSEK -373 (-680). The net profit/loss amounted to KSEK 1,044 (1,902).

Organization

The Company's CEO is Lennart Svantesson. The Board of Directors consists of Björn C. Andersson (chairman), Robin Ahlström, Frans Boch and Ramanan Raghavendran.

The share

The NAXS share was initially listed on First North on May 14, 2007. Since June 8, 2010, the share is traded on the NASDAQ OMX Stockholm. The share trades under the designation "NAXS".

The number of outstanding shares in the Company at the beginning of the interim period was 14,988,546. During the interim period 40 516 shares were repurchased. Outstanding shares at the end of period were 14 948 030.

At the end of the period, the NAXS share price was SEK 31.00 and the total shareholders' equity per share was SEK 39.33. The Company's market capitalization was KSEK 463 and the number of shareholders was 484.

Evolution of the share price since January 1, 2012

Accounting principles

The Interim condensed consolidated financial statements have been established in accordance with the International Financial Reporting Standards (IFRS), as recognized by the EU. This report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Reporting legislation.

The accounting principles applied in this interim report are described in the Annual report 2012. The Parent Company follows the Swedish Annual Reporting legislation and the Swedish Financial

Reporting Board RFR 2 for legal entities, which provides that the IFRS principles shall apply.

Certain comparative figures have been reclassified in order to conform to the presentation of the reports for the current period.

Financial information Contact persons

Interim Report (9 months): October 23, 2012 Lennart Svantesson, CEO

Year-end Report 2012: January 24, 2013 +46 73 311 00 11

lennart.svantesson@naxs.se

Gösta Lundgren, CFO

+46 70 710 47 88 gosta.lundgren@naxs.se

Ticker codes

NAXS SS in Bloomberg NAXS.ST in Reuters

NAXS Nordic Access Buyout Fund AB discloses the information provided herein pursuant to the Swedish Securities Markets Act. The report was submitted for publication at 8:30 CET on July 18, 2012.

This interim report is an in-house translation of the original report in Swedish.

Interim report January–June 2012 Page 10 of 15

The undersigned declares that the half-year report provides a true and fair overview of the Parent Company's and the Group's operations, their financial position and performance, and describes material risks and uncertainties facing the Parent Company and other companies in the Group.

Stockholm, July 18, 2012

Björn C Andersson Robin Ahlström Frans Boch Chairman Director Director

Ramanan Raghavendran Lennart Svantesson

Director Chief Executive Officer

This interim report has not been subject to review by the Company's auditors. This interim report and other information are available on www.naxs.se

NAXS Nordic Access Buyout Fund AB (publ), Corp. Reg. No. 556712-2972 Grev Turegatan 10, 114 46 Stockholm, Sweden. Tel: +46 8 611 33 25, E-mail: info@naxs.se

Consolidated Income Statement Amounts in SEK 000s

	2012	2011	2012	2011
	1/1-6/30	1/1-6/30	4/1-6/30	4/1-6/30
Change in value	36 437	11 923	25 594	-5 182
Operating costs Note 1	-5 162	-4 713	-2 704	-2 310
Operating profit/loss	31 275	7 210	22 890	-7 491
Net financial items	1 872	2 979	819	1 957
Profit/loss after financial items	33 147	10 189	23 709	-5 535
Income taxes	-373	-680	-169	-603
Net profit/loss for the period	32 774	9 510	23 540	-6 137
Earnings per share, SEK*	2,19	0,63	1,57	-0,41
Average number of shares, 000s*	14 959	15 000	14 949	15 000
* Basic and diluted

Consolidated Statement of Comprehensive Income Amounts in SEK 000s

	2012	2011	2012	2011
	1/1-6/30	1/1-6/30	4/1-6/30	4/1-6/30
Net profit/loss for the period	32 774	9 510	23 540	-6 137
Total comprehensive				-6 137
income for the period	32 774	9 510	23 540

Consolidated Balance Sheet Amounts in SEK 000s

	2012	2011
	6/30	12/31
Assets
Private equity fund investments	437 906	359 840
Deferred tax asset	626	999
Total non-current assets	438 532	360 839
Other receivables	2 045	303
Cash and cash equivalents	147 901	202 028
Total current assets	149 946	202 331
Total assets	588 478	563 170
Equity	587 914	562 156
Current liabilities	564	1 014
Total equity and liabilities	588 478	563 170

Total net cash	147 901	202 028
Cash, bank and short-term investments	147 901	202 028
	6/30	12/31
Consolidated Net cash Amounts in SEK 000s	2012	2011

Consolidated Statement of Changes in Equity Amounts in SEK 000s

	2012	2011	2011
	1/1-6/30	1/1-31/12	1/1-6/30
Equity at the beginning or the period	562 156	571 977	571 977
Repurchase of own shares	-1 037	-281	-
Dividend	-5 979	-	-
Total comprehensive income for the period	32 774	-9 539	9 510
Shareholder's equity at the end of the
period	587 914	562 156	581 486

Consolidated Statement of cash flows analysis Amounts in SEK 000s

	2012	2011
	6/30	12/31
Profit/loss after financial items	33 147	10 189
Adjustment for non-cash items, etc.	-35 010	-8 378
Income tax paid	-	-
Cash flow from operating activities before changes in working
capital	-1 863	1 811
Cash flow changes in working capital	-2 192	-1 263
Cash flow from operating activities	-4 055	548
Acquisitions of private equity fund investments	-43 056	-52 034
Cash flow from investing activities	-43 056	-52 034
Repurchase of own shares	-1 037	-
Dividend	-5 979	-
Cash flow from financing activities	-7 016	-
Cash flow during the period	-54 127	-51 486
Cash and cash equivalents, beginning of period *	202 028	270 314
Cash and cash equivalents at the end of the period	147 901	218 829

* Including short-term investments

Parent Company Income Statement Amounts in SEK 000s

	2012	2011	2012	2011
	1/1-6/30	1/1-6/30	4/1-6/30	4/1-6/30
Operating costs	-1 597	-1 579	-773	-727
Operating profit/loss	-1 597	-1 579	-773	-727
Net financial items	3 014	4 161	1 415	3 015
Profit /loss after financial items	1 417	2 582	641	2 288
Income taxes	-373	-680	-169	-603
Net profit /loss for the period	1 044	1 902	472	1 685

Parent Company Statement of Comprehensive Income Amounts in SEK 000s

	2012	2011	2012	2011
	1/1-6/30	1/1-6/30	4/1-6/30	4/1-6/30
Net profit/loss for the period	1 044	1 902	472	1 685
Total comprehensive income for the period	1 044	1 902	472	1 685

Parent Company Balance Sheet Amounts in SEK 000s

	2012	2011
	6/30	12/31
Assets
Shares in subsidiaries	346 013	346 013
Receivables on group companies	71 668	21 398
Deferred tax asset	626	999
Total non-current assets	418 307	368 410
Other receivables	1 979	302
Cash and cash equivalents	140 819	198 719
Total current assets	142 798	199 021
Total assets	561 105	567 431
Equity	560 798	566 770
Current liabilities	307	661
Total equity and liabilities	561 105	567 431

Parent Company Statement of Changes in equity Amounts in SEK 000s

	2012	2011	2011
	1/1-6/30	1/1-31/12	1/1-6/30
Equity at the beginning of the period	566 770	595 133	595 133
Repurchase of own shares	-1 037	-281	-
Dividend	-5 979	-	-
Total comprehensive income for the period	1 044	-28 082	1 902
Shareholder's equity at the end of the
period	560 798	566 770	597 036

Note 1

Operating costs Amounts in SEK 000s

	2012	2011	2012	2011
	1/1-6/30	1/1-6/30	4/1-6/30	4/1-6/30
Fee to the investment advisor	-2 963	-2 850	-1 512	-1 407
Personnel expenses	-806	-800	-401	-354
Other operating costs	-1 393	-1 064	-791	-549
	-5 162	-4 713	-2 704	-2 310

No related party transactions occurred during the interim period except for remunerations to the board members and the managing director.

Definitions

Cash per share Cash & cash equivalents in relation to the number of shares.

Cash & cash equivalents Cash, bank and short-term investments.

Equity per share

Equity in the relation to the weighted number of shares.

Investment level

Private equity fund investments in relation to net asset value.

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 long-term liabilities.

Outstanding fund commitments

Remaining commitment to private equity funds.

Private equity fund investments

Fair value of investments in private equity funds.

Total assets

All assets and liabilities not included in net debt or net cash, which is the same as the Balance Sheet total, less asset items included in net debt or net cash and less non-interest-bearing liabilities.

Total exposure to private equity fund investments

Fair value of investments in private equity funds and outstanding investment commitments.