AI Terminal
NAXS
Quarterly Report • Apr 26, 2022
3178_10-q_2022-04-26_cbeb2228-f813-4f4e-9c23-fde834fd726b.pdf
Quarterly Report
Open in ViewerOpens in native device viewer
NAXS AB (publ) Interim Report January-March 2022
First quarter 2022
- Net profit for the first quarter amounted to MSEK 40.1 (44.6).
- Earnings per share amounted to SEK 3.60 (4.00).
- Net asset value amounted to MSEK 871 (SEK 78.12 per share) at March 31, 2022, compared to MSEK 823 (SEK 73.78 per share) at December 31, 2021.
- Net cash amounted to MSEK 332 (SEK 29.75 per share) at March 31, 2022, compared to MSEK 266 (SEK 23.81 per share) at December 31, 2021.
- The 2022 Annual General Meeting resolved to pay a dividend of 3.50 SEK per share for FY 2021.
Comments by the CEO
The strong development experienced during 2021 continued during the first quarter of 2022, with the NAV/share increasing by 5.9%. Over 12 months, the NAV/share has increased by 24%.
During the first quarter, NAXS made 1 new private equity commitment to Mimir Industries AB, the successor investment vehicle to Mimir Invest AB where NAXS is an investor. After the end of the quarter NAXS announced a new commitment to JAB Investment Partners – JCP V, which will focus on
amongst others on the pet care sector. NAXS is an investor in JCP V's two predecessor funds.
As to NAXS's underlying funds, they signed or closed investment in 7 new portfolio companies during the quarter.
On March 30, the AGM approved the payment of the dividend of SEK 3.50/share for FY 2021. Following this dividend payment, the Company will have distributed a cumulative SEK 25.17 per share over the last 5 years to its shareholders through dividends and share repurchases.
This will be my last financial report as CEO of the Company and again I would like to take the opportunity to thank NAXS's shareholders for their trust and to wish the company all the best in the future.
Lennart Svantesson
Financial summary
| 2022 | 2021 | |
|---|---|---|
| 1/1–03/31 | 1/1–03/31 | |
| Net profit/loss for the period, KSEK | 40 117 | 44 621 |
| 2022 | 2021 | |
| 03/31 | 12/31 | |
| Private equity fund investments, KSEK | 495 771 | 513 925 |
| Private equity fund investments in % of equity | 57 | 63 |
| Remaining commitments, KSEK | 120 675 | 86 012 |
| Total exposure to private equity fund investments, KSEK | 616 446 | 599 937 |
| Other investments, KSEK | 44 463 | 44 693 |
| Net cash, KSEK | 331 793 | 265 523 |
| Private equity fund investments per share, SEK | 44.45 | 46.08 |
| Other investments per share, SEK | 3.99 | 4.01 |
| Net cash per share, SEK | 29.75 | 23.81 |
| Net asset value per share, SEK | 78.12 | 73.78 |
| Share price, SEK | 65.00 | 64.80 |
Operations
NAXS AB (publ) ("NAXS" or the "Company") 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 and may invest up to forty percent of its net asset value in any securities or assets in any jurisdiction.
Operations commenced on April 17, 2007, and the Company was listed on First North on May 14, 2007, where it traded until its change of listing to NASDAQ Stockholm on June 8, 2010.
NAXS is the Group's parent company and is headquartered in Stockholm. In addition to the parent company, the group consists of the subsidiaries NAXS A/S, registered in
Copenhagen, NAXS Nordic Access Buyout AB, registered in Stockholm and NAXS Nordic Access Buyout AS, registered in Oslo. The Danish and Swedish subsidiaries operate as holding companies for the Group's investments.
Naccess Partners AB has been contracted as the investment advisor to the Danish subsidiary.
Market review
The first quarter of 2022 saw substantially increased market volatility on the back of sustained inflation concerns and the war in Ukraine.
Private equity activity has so far only been marginally affected by the more adverse market conditions, although some private equity-backed IPOs have been postponed.
Investments
Private equity fund investments
At March 31, 2022, NAXS had commitments to 14 private equity funds (12 buyout funds and 2 special situations vehicles):
- private equity fund investments amounted to MSEK 496, which corresponds to 56,9 percent of the Company's equity;
- remaining commitments amounted to MSEK 121.
Other investments
At March 31, 2022, NAXS held 6 direct equity investments, 3 of which were listed and 3 unlisted:
- 120 437 shares in Scout Gaming Group AB (publ). Scout is a provider of Fantasy Sport and Daily Fantasy Sports solutions to online gaming operators. As of March 31, 2022, the holding of NAXS in Scout Gaming Group was valued at MSEK 0.9 (1.9).
- 828,319 shares in Awilco Drilling Plc, a UK-based drilling contractor. The shares are listed on the Oslo Stock Exchange. As of March 31, 2022, the holding of NAXS in Awilco Drilling was valued at MSEK 2.8 (2.7).
- 65 572 shares in Keurig Dr Pepper, a leading producer and distributor of hot and cold beverages. The shares are listed on Nasdaq. As of March 31, 2022, the holding of NAXS in Keurig Dr Pepper was valued at MSEK 23.2 (21.9).
- An investment in Krispy Kreme Doughnuts, the leading doughnut and coffee chain. The shares are listed on Nasdaq. As of March 31, 2022, the holding of NAXS in Krispy Kreme Doughnuts was valued at MSEK 7.1 (8.4).
- 4 643 500 shares in Jacktel AS, a Norwegian company owning an offshore accommodation rig. The shares are registered on the Euronext NOTC market.
• An investment in Pret Panera Company, which as of March 31, 2022, was valued at MSEK 0.7 (1.7) after a divestment of shares corresponding to SEK 1.0 million during the first quarter. Pret Panera is a global business in the casual fast food dining segment and include amongst others Panera, Pret-a-Manger and Espresso House.
In addition, NAXS held at March 31, 2022, 2 bonds issued by Jacktel AS:
- 1 senior secured bond issued in 2018 with a tenor of 5 years and a coupon of 10% p.a. During the quarter, approx. 60% of the bond was converted into equity in Jacktel AS. As of March 31, 2022, NAXS's combined holdings of bond and shares was valued at MSEK 7.9 (6.4).
- 1 super senior bond issued in 2021, maturing in December 2023 and with a coupon of 10% p.a. At March 31 2022, the holding of NAXS was valued at MSEK 1.9 (1.7).
Exposure to private equity fund investments and other investments
At March 31, 2022, the total exposure to private equity fund investments and other investments amounted to MSEK 661, which corresponds to 75.9 percent of the Company's equity.
Private equity fund investments and other investments, and total exposure to private equity fund investments and other investments (in % of equity)
Evolution of private equity fund investments and other investments (in % of equity)
The net asset value (NAV) per share increased by 5.9% during the first quarter of 2022
NAV per share in SEK
and by 24% over 12 months.
New investments, acquisitions and liquidity events
Commitments to private equity funds
NAXS made 1 new fund commitment during the quarter, with a 36 MSEK investment commitment to Mimir Industries AB, the successor investment vehicle to Mimir Invest AB, both focusing on special situations.
Other Investments
During the quarter, 60.4% of the 2018 Jacktel AS senior secured bond held by NAXS was converted into equity in Jacktel AS. As result, the previous holding of NAXS in the 2018 Jacktel AS bond is now split into shares in Jacktel AS and a holding of in the 2018 Jacktel AS bond.
Acquisitions by underlying funds
7 new portfolio companies were acquired by underlying funds during the first quarter as summarized below:
| Portfolio Company | Sector | Geography | Fund |
|---|---|---|---|
| Cautus Geo | Financial & Business Services | Norway | Equip I |
| Euroatlas | Engineering | Europe | Mimir Industries |
| Lindemann | Engineering | Europe | Mimir Industries |
| Modus | Building & Construction | Sweden | Mimir Industries |
| Thermion | Building & Construction | Sweden | Mimir Industries |
| RLDatix | Healthcare | Europe | Nordic Capital X |
| CARE Fertility | Healthcare | Europe | Nordic Capital Evo |
Liquidity events in underlying funds
No liquidity events took place during the first quarter.
At March 31, 2022, NAXS underlying funds had acquired a total of 171 companies, 109 of which had been fully divested. These 109 exits have generated an average IRR of 18%.
March 31, 2022
- Total exposure to private equity fund investments: 70,8% of total equity
- Private equity fund investments: 56,9% of total equity
- Number of full exits since inception: 109
- Average IRR since inception generated by the 109 exits: 18%
Portfolio composition/diversification
At March 31, 2022, NAXS provided the following exposure:
- 14 private equity funds (12 buyout funds and 2 special situations vehicles) from 9 managers
- 8 different fund vintages as illustrated below (based on current commitments):
• 61 portfolio companies (remaining after 109 exits) acquired by underlying funds over a period of approximately 12 years, with the 10 largest portfolio companies accounting for
about 52% of the total equity and no single portfolio company accounting for more than 13% of the total equity.
• a diversification in terms of size segments small-, mid- and large cap and geographies (based on the fair value of the current portfolio companies):
• direct investments in 4 listed companies, 2 unlisted companies and 2 bonds as per table below:
| Company | Sector | Type of instrument | Timing of initial investment |
Reported value, MSEK |
|---|---|---|---|---|
| Scout Gaming Group | iGaming | listed share (NASDAQ First North) | Q4 2017 | 0.9 |
| Awilco Drilling | Energy | listed share (Oslo Exchange) super senior secured bond/Euronext |
Q1 2018 | 2.8 |
| Jacktel | Energy Consumer goods & |
NOTC registered shares | Q4 2018 | 7.9 |
| Keurig Dr Pepper | services | listed share Nasdaq (NY) | Q3 2020 | 23.2 |
| Pret Panera | Fast food casual | unlisted shares | Q1 2021 | 0.7 |
| Krispy Kreme Doughnuts | Fast food casual | listed share (NASDAQ NY) | Q1 2021 | 7.1 |
| Jacktel | Energy | super senior secured bond | Q2 2021 | 1.9 |
Underlying funds
Summary information regarding NAXS' underlying funds is provided below:
| Main geographic | NAXS | # of portfolio | ||||
|---|---|---|---|---|---|---|
| Fund | Vintage | Fund size | Segment | focus | commitment | companies/exits |
| Apax Europe VII | 2008 | MEUR 11,000 | large cap | Europe/Global | MEUR 15 | 4/32 |
| Equip Capital I | 2020 | MNOK 1,900 | small/mid cap |
Nordics | MNOK 20 | 12/0 |
| FSN Capital III | 2008 | MEUR 375 | mid cap | Nordics | MEUR10 | 1/9 |
| Herkules PE III* | 2008 | MNOK 6,000 | mid cap | Nordics | MNOK 40 | 0/11 |
| Intera Partners II | 2011 | MEUR 200 | small cap | Finland | MEUR 7 | 2/10 |
| JAB Consumer Fund II | 2018 | MUSD 5,000 | large cap | Global | MUSD 5 | 4/0 |
| JAB Consumer Fund III | 2020 | N/A | large cap | Global | MEUR 5 | 1/0 |
| Mimir Invest | 2017 | <MSEK 500 | small cap | Nordics | MSEK 50 | 6 |
| Mimir Industries | 2022 | < MSEK 500 | small cap | Nordics | MSEK 36 | 4/0 |
| Nordic Capital VII | 2008 | MEUR 4,310 | mid/large cap | Nordics/DACH | MEUR 20 | 0/19 |
| Nordic Capital CV1 | 2018 | MEUR 2,500 | mid/large cap | Nordics/DACH | MEUR 14,65 | 4/5 |
| Nordic Capital X | 2020 | MEUR 6,100 | large/mid cap | Nordics/DACH | MEUR 20 | 13/0 |
| Nordic Capital Evolution | 2021 | MEUR | midcap | Nordics/DACH | MEUR 1 | 4/0 |
| Valedo Partners II | 2011 | MSEK 2,000 | small cap | Sweden | MSEK 65 | 6/5 |
Group
Financial performance, January-March 2022
Operating profit/loss
The operating profit/loss amounted to KSEK 42,416 (47,864) for the first quarter. The operating profit/loss includes a change in value of KSEK 46,550 (51,539), whereof KSEK 46,831 (49,143) is a change in value of private equity fund investments and KSEK -281 (2,396) is a change of value of other financial investments. The currency effects are included in the changes in value and amounted to KSEK 9,995 (-4,272) for the first quarter. Operating expenses amounted to KSEK 4,134 (3,675).
January 1– March 31, 2022
- Changes in value of private equity fund investments: KSEK 46,831, whereof currency effects on private equity fund investments KSEK 9,995
- Changes in value of other investments: KSEK -281
Financial items
Financial items net totaled KSEK -2,299 (-3,243) for the first quarter. Interest expenses on cash in banks amounted to -164 (-103). Exchange rate profit/loss amounted to KSEK -2,135 (-3,140).
Tax and net profit
The Group's profit/loss after financial items for the first quarter amounted to KSEK 40,117 (44,621). Income taxes amounted to KSEK 0 (0). Net profit/loss after tax amounted to KSEK 40,117 (44,621). Earnings per share were SEK 3.60 (4.00).
Investments, financing and liquidity
Private equity fund investments
During the first quarter, net investments (-)/repayments (+) from private equity funds amounted to KSEK 70,797 (3,153). As of March 31, 2022, private equity fund investments amounted to KSEK 495,771 (481,449).
March 31, 2022
• Private equity fund investments per share: SEK 495,771
Other investments
As of March 31, 2021, Other Investments amounted to KSEK 44,463 (44,693). During the interim period KSEK 0 (7,487) was invested in other investments.
Financing
The Group is financed with shareholders' equity. Shareholders' equity amounted to KSEK 871,257 (822,855) at the end of the first quarter, corresponding to SEK 78.12 (73.78) per share and an equity/asset ratio of 100 (100) percent.
March 31, 2022
• Equity per share: SEK 78.12
Net cash
At the end of the first quarter, net cash amounted to KSEK 331,793 (265,523), which corresponds to SEK 29.75 (23.81) per share. During the quarter, cash and cash equivalents were invested in interest-bearing instruments or held on interest-bearing bank accounts, in accordance with the Company's policy.
March 31, 2022 • Net cash per share: SEK 29.75
Significant risks and uncertainty factors
Significant risks and uncertainty factors are described in the Annual Report 2021.
Events after the interim period
In April, NAXS announced a new commitment of 5 MEUR to JAB Investment Partners – JCP V, which will focus amongst others on the pet care sector. NAXS is an investor in JCP V's two predecessor funds.
Future prospects
Our expectations for market conditions and private equity buyout activity remain consistent with those upon which our investment mandate is predicated.
Parent company
The parent company's net income during the first quarter amounted to 234 (-) TSEK. The profit/loss after financial items amounted to KSEK -824 (-966). The net interest income amounted to KSEK 0 (35) and exchange rate profit/loss amounted to KSEK 0 (523). Income tax amounted to KSEK 0 (0). The net profit/loss amounted to KSEK -824 (-966).
Organization
The Company's CEO is Lennart Svantesson. The Board of Directors consists of Daniel Gold (chairman), Meg Eisner, Nikolai Jebsen, Børge Johansen and Synne Syrrist, who were reelected at the 2022 Annual General Meeting.
The share
The NAXS share was initially listed on First North on May 14, 2007. Since June 8, 2010, the share is traded on NASDAQ Stockholm. The share trades under the designation "NAXS".
The number of outstanding shares in the Company at the beginning and the end of the interim period was 11,152,585.
At March 31, 2022, the NAXS share price was SEK 65 and the total shareholders' equity per share was SEK 78.12. The Company's market capitalization was MSEK 725 and the number of shareholders was 5,033.
Evolution of the share price during Q1 2022
Accounting principles
The 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 report are described in the Annual Report 2021. 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.
Financial information Contact
Interim Report (6 months): July 21, 2022 Lennart Svantesson, VD Interim Report (9 months): October 25, 2022 +46 73 311 00 11 Year-End Report 2022: January 31, 2023 [email protected]
Gösta Lundgren, CFO +46 70 710 47 88 [email protected]
Ticker codes
NAXS.SS in Bloomberg NAXS.ST in Reuters
This information is information that NAXS 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 set out above, at 18.30 CET on April 26, 2022.
This report is an in-house translation of the original report in Swedish
Stockholm, April 26, 2022
Daniel Gold Margaret (Meg) Eisner Nikolai Jebsen Chairman Director Director
Børge Johansen Synne Syrrist Lennart Svantesson Director Director Chief Executive Officer
This report has not been subject to review by the Company's auditors.
This report and other information are available on www.naxs.se
NAXS AB (publ) Corp. Reg. No. 556712-2972 Alma, Nybrogatan 8 114 34 Stockholm, Sweden Tel: +46 (0)766 40 00 40 E-mail: [email protected]
Financial reports summary
Consolidated Income Statement Amounts in SEK 000s
| 2022 | 2021 | |
|---|---|---|
| 1/1-03/31 | 1/1-03/31 | |
| Change in value | 46 550 | 51 539 |
| Operating costs Note 1 |
-4 134 | -3 675 |
| Operating profit/loss | 42 416 | 47 864 |
| Net financial items | -2 299 | -3 243 |
| Profit/loss after financial items | 40 117 | 44 621 |
| Income taxes | - | - |
| Net profit/loss | 40 117 | 44 621 |
| Attributable to: | ||
| Parent company shareholders | 40 117 | 44 621 |
| Earnings per share, SEK* | 3,60 | 4,00 |
| Average number of shares, 000s* | 11 153 | 11 153 |
| * Basic and diluted |
Consolidated Statement of Comprehensive Income Amounts in SEK 000s
| 2022 | 2021 | |
|---|---|---|
| 1/1-03/31 | 1/1-03/31 | |
| Net income | 40 117 | 44 621 |
| Other comprehensive income | ||
| Items which will be reversed to the income statement |
||
| Exchange differences | 8 285 | 12 941 |
| Total comprehensive income | 48 402 | 57 562 |
| Attributable to: | ||
| Parent company shareholders | 48 402 | 57 562 |
| Total comprehensive income | 48 402 | 57 562 |
Consolidated Balance Sheet Amounts in SEK 000s
| 2022 | 2021 | |
|---|---|---|
| 03/31 | 12/31 | |
| Assets | ||
| Private equity fund investments | 495 771 | 513 925 |
| Other long-term holdings of securities | 44 463 | 44 693 |
| Total non-current assets | 540 234 | 558 618 |
| Other receivables | 505 | 272 |
| Cash and cash equivalents | 331 793 | 265 523 |
| Total current assets | 332 298 | 265 795 |
| Total assets | 872 532 | 824 413 |
| Equity | 871 257 | 822 855 |
| Current liabilities | 1 275 | 1 558 |
| Total equity and liabilities | 872 532 | 824 413 |
Consolidated Net cash Amounts in SEK 000s
| 2022 | 2021 | |
|---|---|---|
| 03/31 | 12/31 | |
| Cash, bank and short-term investments | 331 793 | 265 523 |
| Total net cash | 331 793 | 265 523 |
Consolidated Statement of Changes in Equity Amounts in SEK 000s
| 2022 | 2021 | 2021 | |
|---|---|---|---|
| 1/1-03/31 | 1/1-12/31 | 1/1-03/31 | |
| Equity at the beginning or the year | 822 855 | 678 900 | 678 900 |
| Dividend | - | -33 458 | -33 458 |
| Total comprehensive income for the period | 48 402 | 177 413 | 57 562 |
| Shareholder's equity at the end of the period | 871 257 | 822 855 | 703 004 |
Consolidated Statement of cash flows analysis Amounts in SEK 000s
| 2022 | 2021 | |
|---|---|---|
| 1/1-03/31 | 1/1-03/31 | |
| Profit/loss after financial items | 40 117 | 44 621 |
| Adjustment for non-cash items, etc. | -14 490 | -43 011 |
| Income tax paid | - | - |
| Cash flow from operating activities before changes in working capital |
25 627 | 1 610 |
| Cash flow changes in working capital | -518 | 266 |
| Cash flow from operating activities | 25 109 | 1 876 |
| Acquisitions of private equity fund investments | -2 163 | -3 199 |
| Disposals of private equity fund investments Acquisitions/disposals of other long-term holdings |
42 659 | 3 134 |
| of securities | 811 | -7 487 |
| Cash flow from investing activities | 41 307 | -7 552 |
| Dividend | - | -33 458 |
| Cash flow from financing activities | - | -33 458 |
| Cash flow during the period | 66 416 | -39 134 |
| Cash and cash equivalents, beginning of the year * | 265 523 | 219 127 |
| Exchange-rate differences in cash and cash equivalents |
-146 | 183 |
| Cash and cash equivalents at the end of the period |
331 793 | 180 176 |
* Including short-term investments
Parent Company Income Statement
Amounts in SEK 000s
| 2022 | 2021 | |
|---|---|---|
| 1/1-03/31 | 1/1-03/31 | |
| Net income | 234 | - |
| Operating costs | -1 058 | -1 524 |
| Operating profit/loss | -824 | -1 524 |
| Net financial items | - | 558 |
| Profit /loss after financial items | -824 | -966 |
| Income taxes | - | - |
| Net profit/loss for the period | -824 | -966 |
Parent Company Statement of Comprehensive Income Amounts in SEK 000s
| 2022 | 2021 | |
|---|---|---|
| 1/1-03/31 | 1/1-03/31 | |
| Net profit/loss for the period | -824 | -966 |
| Total comprehensive income for the period |
-824 | -966 |
Parent Company Balance Sheet Amounts in SEK 000s
| 2022 | 2021 | |
|---|---|---|
| 03/31 | 12/31 | |
| Assets | ||
| Shares in subsidiaries | 481 802 | 481 802 |
| Total non-current assets | 481 802 | 481 802 |
| Other receivables | 505 | 259 |
| Cash and cash equivalents | 56 523 | 58 055 |
| Total current assets | 57 028 | 58 314 |
| Total assets | 538 830 | 540 116 |
| Equity | 537 527 | 538 351 |
| Current liabilities | 1 303 | 1 765 |
| Total equity and liabilities | 538 830 | 540 116 |
Parent Company Statement of Changes in equity Amounts in SEK 000s
| 2022 | 2021 | 2021 | |
|---|---|---|---|
| 1/1-03/31 | 1/1-12/31 | 1/1-03/31 | |
| Equity at the beginning of the year | 538 351 | 575 674 | 575 674 |
| Dividend | - | -33 458 | -33 458 |
| Total comprehensive income for the period | -824 | -3 865 | -966 |
| Shareholder's equity at the end of the period | 537 527 | 538 351 | 541 250 |
Note 1
Operating costs Amounts in SEK 000s
| 2022 | 2021 | |
|---|---|---|
| 1/1-03/31 | 1/1-03/31 | |
| Fee to the investment advisor | -1 932 | -1 575 |
| Carried interest to the investment advisor | -1 105 | -434 |
| Personnel expenses | -377 | -378 |
| Other operating costs | -720 | -1 287 |
| -4 134 | -3 674 |
No related party transaction occurred during the period, except for remunerations to the board members and the managing director.
Note 2
Financial assets and liabilities
NAXS's financial instruments consist of fund investments, cash and cash equivalents and accounts payable. Level 3 investments includes only the Company's publicly traded share of the fund holdings / securities of unlisted companies (in some cases, also listed companies). When observable prices are not available for these securities, the fund manager uses one or more valuation techniques (e.g. yield methods or income-based methods), or a combination of techniques, for which sufficient and reliable data are available. Within Level 3, the market approach generally uses earnings multiples of comparable companies, while the income-based approach generally uses the present value of estimated future cash flows, adjusted for liquidity, credit, market and/or other risk factors.
For NAXS, the book value of all financial assets and liabilities corresponds to fair value. All amounts are shown in the reported balance sheets.
Definitions and Alternative performance measures
NAXS applies the guidelines issued by the European Securities and Markets Authority (ESMA) for alternative key ratios. Alternative key figures are financial measures of historical or future earnings trend, financial position, financial results or cash flows that are not defined or specified in the applicable rules for financial reporting Alternative key ratios are stated when, in their context, they provide clearer or more indepth information than the measures defined in applicable financial reporting rules. The alternative key figures are derived from the consolidated financial statements. Alternative key ratios are stated when, in their context, they supplement the measures defined in IFRS. The starting point for the provided alternative key figures is that they are used by management to assess the financial development and are thus considered to provide valuable information to analysts and other stakeholders. NAXS regularly uses alternative key ratios as a complement to those key ratios that generally constitute good accounting practice.
Below are definitions and all the alternative key figures used.
Buyout fund
A private equity fund, whose strategy is to acquire a controlling interest in the targeted companies
Cash & cash equivalents Cash, bank and short-term investments
Cash per share*
Cash & cash equivalents in relation to the number of outstanding shares at the end of the period
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
Equity ratio*
Equity in relation to total assets.
IRR
The internal rate of return generated annually from cash flows between NAXS and the underlying private equity funds relating directly to investments in portfolio companies after deduction of the funds' carried interest but without deduction of the funds' management fees
Net asset value (NAV)* The fair value of total assets, less net debt (corresponds to equity)
Net asset value (NAV) per share*
The fair value of total assets, less net debt (corresponds to shareholders' equity attributable to the Parent Company's shareholders) in relation to the number of outstanding shares at the end of the period
Net cash*
Cash and cash equivalents, short-term investments and interest-bearing current and longterm receivables, less interest-bearing current and long-term liabilities
Other long-term holdings of securities/ Other investments Investments in financial instruments other than private equity funds
Private equity fund investments Fair value of investments in private equity funds
Profit per share
Profit for the year attributable to the Parent Company's shareholders divided by the average number of shares.
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 assets*
All assets and liabilities not included in net cash.
Total exposure to private equity fund investments Private equity funds investments and remaining commitments to private equity funds.
Total exposure to private equity fund investments and other investments Total exposure to private equity funds increased with other investments.
* Refers to alternative key figures according to the European Securities and Markets Authority (ESMA).
Reconciliations of significant alternative key ratios
Below are reconciliations of significant alternative key figures against the most directly reconcilable item, sub-sum or total sum stated in the financial statements for the corresponding period.
Net cash
Net cash or cash available at short notice, are defined as cash and cash equivalents, current investments, financial investments and interest-bearing current and short-term receivables. Deductions are made for interest bearing short- and long-term liabilities.
| Group, KSEK | 2022-03-31 | 2021-12-31 |
|---|---|---|
| Cash and cash equivalents | 331 793 | 265 523 |
| Net cash | 331 793 | 265 523 |
Total assets
The net of all assets and liabilities that are not included in the net cash.
| Group, KSEK | 2022-03-31 | 2021-12-31 |
|---|---|---|
| Equity | 871 257 | 822 855 |
| Net cash | -331 793 | -265 523 |
| Total assets | 539 464 | 557 332 |
Net asset value, SEK per share
Equity attributable to the Parent Company's shareholders in relation to the number of shares outstanding on the balance sheet date.
| Group 2022-03-31, TSEK | Net asset value, SEK per share |
||
|---|---|---|---|
| Net asset value | 871 257 | = | 78,12 |
| Number of shares outstanding | 11 152 585 | ||
| Net asset value, | |||
| Group 2021-12-31, TSEK | SEK per share | ||
| Net asset value | 822 855 | = | 73,78 |
| Number of shares outstanding | 11 152 585 |