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NAXS
Quarterly Report • Oct 26, 2023
3178_10-q_2023-10-26_7b66770f-5669-4e0e-9e8a-7b73b90d175f.pdf
Quarterly Report
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9-month financial report
January – September 2023
NAXS AB (publ)
9-month financial report January – September 2023
9-month 2023
- Net profit amounted to MSEK 18.5 (144.5).
- Earnings per share amounted to SEK 1.67 (13.00).
- Net asset value amounted to MSEK 936 (SEK 84.52 per share) at September 30, 2023, compared to MSEK 959 (SEK 86.59 per share) at December 31, 2022.
- Net cash amounted to MSEK 226 (SEK 19.91 per share) at September 30, 2023, compared to MSEK 212 (SEK 19.11 per share) at December 31, 2022.
- The 2023 Annual General Meeting resolved to pay a dividend of 3.75 SEK per share for FY 2022.
Third quarter 2023
- Net profit/loss amounted to MSEK 11.3 (51.7).
- Earnings per share amounted to SEK 1.02 (4.67).
In the fourth quarter of 2022, the functional currency of the Danish and Norwegian subsidiaries was changed to be the same as that of the parent company and is reported in the income statement in the item Change in value instead of as before when the foreign subsidiaries financial statements have been translated to SEK and the translation difference has been reported in other comprehensive income. The comparison period January – September 2022 has been adjusted accordingly and the translation difference that is now included in last year's profit amounted to MSEK 51.1, corresponding to SEK 4.61 per share.
84.52 SEK NAV per share
Financial summary
| 2023 | 2022 | |
|---|---|---|
| 30 Sep | 31 Dec | |
| Net asset value (NAV), KSEK | 936,226 | 959,252 |
| Private equity fund investments, KSEK | 641,369 | 687,989 |
| Private equity fund investments in % of equity | 69 | 72 |
| Remaining commitments, KSEK | 123,602 | 157,582 |
| Total exposure to Private equity fund investments, KSEK | 764,971 | 845,571 |
| Other investments, KSEK | 65,488 | 60,801 |
| Net cash, KSEK | 226,387 | 211,668 |
| Private equity fund investments per share, SEK | 57.90 | 62.11 |
| Other investments per share, SEK | 5.91 | 5.49 |
| Net cash per share, SEK | 20.44 | 19.11 |
| Net asset value per share, SEK | 84.52 | 86.59 |
| Share price, SEK | 68.40 | 59.80 |
Comments by the CEO
The third quarter saw the NAV/share edge up by 1.2%. Over 12 months, the NAV/share has increased by 5.9%, including the FY 2022 dividend paid during the previous quarter.
Just as during the first half of 2023, the macro-economic backdrop remained challenging during the third quarter, affecting both general investor sentiment and private equity market activity. In the Nordics, private equity deal volume continued to be lower than during preceding years, notably due to tighter financing conditions.
NAXS's portfolio nevertheless saw 3 new acquisitions and 1 exit by underlying funds during the third quarter.
Finally, you will have noticed the new reporting format implemented in this interim report, whereby we aim to make our reporting both more informative and easier to read.
Gösta Lundgren
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 coinvestments alongside private equity or other alternative as-sets 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.
Investments
Private equity fund investments
At September 30, 2023, NAXS had commitments to 12 active private equity funds (10 buyout funds and 2 special situations funds) which are listed below:
Apax Europe VII is the seventh pan-European fund raised by Apax Partners, a global private equity firm headquartered in London and operating out of six offices on four continents. Apax Partners invests globally across four sectors: consumer, healthcare, services and tech & telecom.
Fund size: MEUR 11,000 Segment: large cap Geographic focus: primarily Europe Vintage: 2008 Website: www.apax.com NAXS initial commitment: MEUR 15 No. of portfolio companies/exits: 3/33
Apax Europa VII Celero Capital Fund (E) AB
Celero Capital Fund (E) AB is the first fund raised by Celero Capital, a Nordic lower mid- market private equity firm that is focused on the services, consumer goods and niche industrials sectors.
Fund size: n/a Segment: lower mid cap Geographic focus: Nordics Vintage: 2023 Website:https://celerocapital.com/ NAXS initial commitment: MEUR 1.5 No. of portfolio companies/exits: 2/0
Equip Capital I is the first fund raised by Equip Capital, an Oslo-based private equity firm focusing on investments in small and mid-sized companies in the Nordic region. The Equip Capital team has extensive investment experience across the consumer, industrials and business services sectors.
Fund size: MNOK 1,900 Segment: small/mid cap Geographic focus: Norway and Nordics Vintage: 2020 Website: www.equip.no NAXS initial commitment: MNOK 20 No. of portfolio companies/exits: 12/0
Equip Capital I JAB Consumer Fund – Global Consumer Brands II
JAB Consumer Fund – Global Consumer Brands II is a private equity fund co-investing along JAB Holding, a privately held group focused on consumer goods and retail companies with premium brands, as well as pet care and services. The fund focuses on the fast casual dining sector, as well as pet care.
Fund size: MUSD 5,000 Segment: large cap Geographic focus: global Vintage: 2018 Website: https://www.jabholco.com NAXS initial commitment: MUSD 5 No. of portfolio companies/exits: 4/0
JAB Consumer Fund – Global Consumer Brands III JAB Consumer Partners – JCP V
JAB Consumer Fund – Global Consumer Brands III is a private equity fund co-investing along JAB Holding, a privately held group focused on consumer goods and retail companies with premium brands, as well as pet care and services. The fund focuses on pet care.
Fund size: MUSD 3,800 Segment: large cap Geographic focus: global Vintage: 2020 Website: https://www.jabholco.com NAXS initial commitment: MEUR 5 No. of portfolio companies/exits: 1/0
JAB Consumer Fund – Global Consumer Brands III is a private equity fund co-investing along JAB Holding, a privately held group focused on consumer goods and retail companies with premium brands, as well as pet care and services. The fund focuses on pet care and pet services.
Fund size: MUSD 5,000 Segment: large cap Geographic focus: global Vintage: 2022 Website: https://www.jabholco.com NAXS initial commitment: MEUR 5 No. of portfolio companies/exits: 1/0
Mimir Industries AB Mimir Invest AB
Mimir Industries AB is the second investment vehicle raised by Mimir, private equity special situations manager focusing on mid-sized companies in all sectors, except real estate.
Fund size: >MSEK 500 Segment: mid cap Geographic focus: global, with a focus on the Nordics Vintage: 2022 Website: www.mimirinvest.com NAXS initial commitment: MSEK 75 No. of portfolio companies/exits: 6/0
Nordic Capital Fund CV1 is a continuation vehicle holding certain assets from Nordic Capital Fund VII. Established in 1989, Nordic Capital is one of the largest buyout managers in Northern Europe. The firm focuses on selected sectors where it has deep experience and a proven track record. Core sectors are Healthcare, Technology & Payments, Financial Services and selectively, Industrial Goods & Services.
Fund size: MEUR 2,500 Segment: large cap Geographic focus: primarily the Nordics Vintage: 2008 Webbplats:https://www.nordiccapital.com/ NAXS initial commitment: MEUR 14.65 No. of portfolio companies/exits: 3/7
Mimir Invest AB is the first investment vehicle raised by Mimir, private equity special situations manager focusing on mid-sized companies in all sectors, except real estate.
Fund size: >MSEK 500 Segment: small cap Geographic focus: global, with a focus on the Nordics Vintage: 2017 Website: www.mimirinvest.com NAXS initial commitment: MSEK 50 No. of portfolio companies/exits: 6/2
Nordic Capital CV1 LP Nordic Capital Evolution
Nordic Capital Evolution has been raised by Nordic Capital to replicate in the mid-market the firm's established investment strategy. Established in 1989, Nordic Capital is one of the largest buyout managers in Northern Europe. The firm focuses on selected sectors where it has deep experience and a proven track record. Core sectors are Healthcare, Technology & Payments, Financial Services and selectively, Industrial Goods & Services.
Fund size: MEUR 1,200 Segment: mid cap Geographic focus: Northern Europe Vintage: 2021 Webbplats:https://www.nordiccapital.com/ NAXS initial commitment: MEUR 1 No. of portfolio companies/exits: 7/0
Nordic Capital Fund X LP Valedo Partners Fund II
Nordic Capital Fund X is the tenth fund raised by Nordic Capital. Established in 1989, Nordic Capital is one of the largest buyout managers in Northern Europe. The firm focuses on selected sectors where it has deep experience and a proven track record. Core sectors are Healthcare, Technology & Payments, Financial Services and selectively, Industrial Goods & Services.
Fund size: MEUR 6,100 Segment: large cap Geographic focus: Europe and selected global healthcare and technology & payments investments Vintage 2020 Website:https://www.nordiccapital.com/ NAXS initial commitment: MEUR 2 No. of portfolio companies/exits: 16/0
Valedo Fund II is the second fund of Valedo, a growth oriented Swedish small cap manager established in 2006 by a spin-off team from EQT. The fund focuses on the Swedish small cap segment.
Fund size: MSEK 2,000 Segment: small cap Geographic focus: Sweden and the Nordics Vintage: 2011 Website:https://www.valedopartners.com/ NAXS initial commitment: MSEK 65 No. of portfolio companies/exits: 5/6
In addition, NAXS has commitments to 3 private equity funds that are either in dissolution process or have exited all their portfolio companies (FSN Capital III, Herkules Private Equity III and Nordic Capital VII).
Other investments
As of September 30, 2023, there were 9 holdings in Other investments. The Jacktel bond holding was redeemed during the third quarter.
| Company | Sector | Type of instrument | Date of initial investment |
Reported value, 2023.09.30 MSEK |
Reported value, 2022.12.31 MSEK |
|---|---|---|---|---|---|
| Scout Gaming Group |
iGaming | listed share (Nasdaq First North) |
Q4 2017 | 0.1 | 0.1 |
| Awilco Drilling |
Energy | listed share (Euronext Growth Oslo) |
Q1 2018 | 4.9 | 7.7 |
| Jacktel | Energy | senior secured bond | Q4 2018 | - | 12.9 |
| Keurig Dr Pepper |
Consumer goods & services |
listed share Nasdaq (NY) | Q3 2020 | 22.4 | 24.4 |
| Pret Panera | Fast food casual | unlisted share | Q4 2020 | 2.8 | 2.3 |
| Krispy Kreme Doughnuts |
Fast food casual | listed share (Nasdaq NY) | Q1 2021 | 5.8 | 4.6 |
| Jacktel | Energy | unlisted share (registered on Euronext NOTC) |
Q1 2022 | 10.7 | 6.4 |
| Chr. Hansen Holding A/S |
Bioscience | listed share (Nasdaq Copenhagen) |
Q4 2022 | 2.2 | 2.5 |
| Reledo | Business Services |
unlisted share | Q2 2023 | 5.7 | - |
| Panera Brands |
Fast food casual | Unlisted share | Q2 2023 | 11.0 | - |
| Total | 65.5 | 60.8 |
Exposure to Private equity fund investments and Other investments
At September 30, 2023, the total exposure to Private equity fund investments and Other investments amounted to MSEK 830, which corresponds to 89% of the Company's equity. In the table below, the total exposure is compared to the net cash plus Private equity fund investments and Other investments.
NAV per share in SEK
The net asset value (NAV) per share increased by 1.2% during the third quarter of 2023 and by 5.9% over 12 months (including the dividend paid).
New investments, acquisitions and liquidity events during the third quarter
Commitments to Private equity funds
NAXS did not make any new Commitment during the third quarter.
Other Investments
NAXS did not make any new Other investment during the third quarter.
The Jacktel bond holding was redeemed during the quarter.
Acquisitions by underlying funds
3 new portfolio companies were added during the third quarter, as summarized below:
| Portfolio Company |
Sector | Geography | Fund |
|---|---|---|---|
| Hjo Installation |
Installation services |
Sweden | Nordic Capital Evo |
| Billerud Managed Packaging |
Industry | Sweden | Mimir Industries |
| Helmsauer Group |
Insurance services |
Tyskland | Nordic Capital Evo |
Liquidity events in underlying funds
1 exit by underlying fund was signed during the third quarter.
| Portfolio Company |
Sector | Geography | Fund |
|---|---|---|---|
| Bladt Industries |
Industry | 2018 | Nordic Capital CV1 |
At September 30, 2023, NAXS underlying funds had acquired a total of 182 companies, 116 of which had been fully divested. These 116 exits have generated an average IRR of 18%.
Portfolio composition/diversification
At September 30, 2023, NAXS provided the following exposure:
Fund segment allocation (% of Private equity fund investments)
Sector allocation (% of investments in Private equity funds and Other investments)
- Building & construction 18,0%
- Business services 5,0%
- Consumer goods & services 5,0%
- Food & beverage 13,0%
- Healthcare 8,0%
- Industry 32,0%
- Pet care & services 17,0%
- Tech & software 2,0%
The 10 largest underlying portfolio companies represent approximately 56% of the total equity, with the largest underlying portfolio company accounting for approximately 18% of equity.
Group
Net asset value (NAV)
| 30 Sep | 31 Dec | ||
|---|---|---|---|
| KSEK | 2023 | 2022 | 2022 |
| Private equity fund investments | 641,369 | 632,214 | 687,989 |
| Other investments | 65,488 | 48,231 | 60,801 |
| Other assets and liabilities | 2,982 | -580 | -1,206 |
| Net cash | 226,387 | 243,806 | 211,668 |
| Net asset value (NAV) | 936,226 | 923,671 | 959,252 |
| Net asset value per share | 84.52 | 83.38 | 86.59 |
Changes in Net asset value (NAV)
| Q3 | Jan-Sep | Jan-Dec | |
|---|---|---|---|
| KSEK | 2023 | 2023 | 2022 |
| Net asset value (NAV) at the beginning of the period | 924,923 | 959,252 | 822,855 |
| Value changes on Private eguity fund investments | 12,768 | 25,043 | 182,379 |
| Value changes Other investments | -88 | 1,026 | 11,938 |
| Operating costs | -3,522 | -13,149 | -15,323 |
| Net financial items | 2,145 | 5,595 | 1,094 |
| Income tax | - | - | -7 |
| Dividend to shareholders | - | -41,541 | -39,034 |
| Repurchase of own shares | - | - | -4,650 |
| Net asset value (NAV) at the end of the period | 936,226 | 936,226 | 959,252 |
Changes in Private equity fund investments and Other investments
| Q3 | Jan-Sep | Jan-Dec | Q3 | Jan-Sep | Jan-Dec | |
|---|---|---|---|---|---|---|
| KSEK | 2023 | 2023 | 2022 | 2023 | 2023 | 2022 |
| At the beginning of the period | 626,540 | 687,989 | 513,925 | 81,583 | 60,801 | 44,693 |
| Investments | 4,328 | 44,875 | 65,979 | - | 21,158 | 6,563 |
| Repayments | -2,267 | -116,538 | -74,294 | -16,006 | -17,497 | -2,393 |
| Net investments | 2,061 | -71,663 | -8,315 | -16,006 | 3,661 | 4,170 |
| Changes in value | 17,391 | 22,032 | 163,075 | -405 | -1,410 | 5,249 |
| Dividends and interest income | - | - | - | 413 | 1,081 | 676 |
| Unrealized exchange rate changes | -4,623 | 3,011 | 19,304 | -97 | 1,355 | 6,013 |
| Reported through the income statement | 12,768 | 25,043 | 182,379 | -89 | 1,026 | 11,938 |
| Reported value at the end of the period | 641,369 | 641,369 | 687,989 | 65,488 | 65,488 | 60,801 |
Net cash
| 30 Sep | 31 Dec | ||
|---|---|---|---|
| KSEK | 2023 | 2022 | 2022 |
| Cash, bank and short-term investments | 226,387 | 243,806 | 211,668 |
| 226,387 | 243,806 | 211,668 | |
| Net cash per share, Tkr | 20.44 | 22.01 | 19.11 |
20.44 SEK Net cash per share
57.90 SEK Private equity fund investments per share
During the year, cash and cash equivalents were invested in interest-bearing instruments or held on interest-bearing bank accounts, in accordance with the Company's policy.
Changes in net cash
| Q3 | Jan-Sep | Jan-Dec | |
|---|---|---|---|
| KSEK | 2023 | 2023 | 2022 |
| Net cash at the beginning of the period | 220,547 | 211,668 | 265,523 |
| Investments in Private equity funds | -4,328 | -44,875 | -65,979 |
| Distributions from Private equity funds | 2,267 | 116,538 | 74,294 |
| Investments in Other longterm holdings of securteties | 66 | -21,158 | -6,563 |
| Distributions from Other longterm holdings of securteties | 15,940 | 17,497 | 2,393 |
| Cash flow from operating activeties | -1,385 | -7,580 | -14,218 |
| Cash flow from changes in working capital* | -6,720 | -4,162 | -98 |
| Dividend to shareholders | - | -41,541 | -39,034 |
| Repurchase of own shares | - | - | -4,650 |
| Net cash at the end of the period | 226,387 | 226,387 | 211,668 |
*Including exchange rate difference in cash and cash equivalents.
Net financial items
| 30 Sep | ||
|---|---|---|
| KSEK | 2023 | 2022 |
| Interest income | 5,573 | 362 |
| Interest expenses | -3 | -238 |
| Currency effects | 26 | 53 |
| Net financial items | 5,595 | 177 |
Financing
The Group is financed with shareholders' equity. Shareholders' equity amounted to KSEK 936,226 (959,252) at the end of the 9-month period, corresponding to SEK 84.52 (86.59) per share and an equity/asset ratio of 99.9 (99.9) percent. Dividend to share-holders for FY 2022 amounted to KSEK 41,541 (39,034) corresponding to SEK 3.75 (3.50) per share.
84.52 SEK Equity per share
Results and investments
Third quarter 2023
Profit after financial items amounted to KSEK 11,303 (51,715). The profit is mainly attributable to changes in the value of Private equity fund investments of KSEK 12,768 (25,043).
During the quarter, NAXS invested KSEK 4,328 (15,192) in Private equity funds. Repayments from the funds amounted to KSEK 2,267 (3,367). Repayments from Other investments amounted to KSEK 16,006 (17,497), which mainly consists of redemption of a bond.
9-month 2023
Profit after financial items amounted to KSEK 18,515 (144,498). The profit is mainly attributable to changes in the value of Private equity fund investments of KSEK 25,043 (140,150).
During the 9-month period, NAXS invested KSEK 44,875 (42,328) in private equity funds. Repayments from the funds amounted to KSEK 116,538 (75,695). KSEK 21,158 (-) was invested in Other investments
and repayments from Other investments amounted to KSEK 17,497 (1,262).
Significant risks and uncertainty factors
Significant risks and uncertainty factors are described in the Annual Report 2022. The significant macro and geopolitical risks that arose in 2022 and in 2023 may affect the valuation of NAX's investments. However, it should be noted that NAXS's current portfolio has no material exposure to Russia or Ukraine, nor to Israel or the Palestinian territories.
Parent company
The parent company's revenues for the 9-month period amounted to KSEK 513 (464). The profit/loss before and after tax amounted to KSEK 226 (-3,073). Net interest income amounted to KSEK 3,126 (-22) and exchange rate profit/loss amounted to KSEK 0 (-121).
Organization
Gösta Lundgren is the interim CEO. The Board of Directors consists of Daniel Gold (chairman), Meg Eisner, Nikolai Jebsen, Børge Johansen and Synne Syrrist, who were re-elected at the 2023 Annual General Meeting.
Nomination committee
The 2023 Annual General Meeting appointed a nomination committee consisting of Meg Eisner (representing QVT Financial LP), Amaury de Poret (representing himself) and Didrik Hamilton (representing himself). Amaury de Poret was elected chairman of the nomination committee. The nomination committee can be contacted via e-mail to [email protected].
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 11,077,585.
In April, the company made a share cancellation of 75,000 repurchased shares. Prior to the cancellation of the repurchased shares, the total number of shares and voting rights in NAXS was 11,152,585. The
number of shares and voting rights decreased by 75,000 through the share cancellation. Following completion of the share cancellation, the total number of shares and voting rights in NAXS is 11,077,585.
At September 30, 2023, the NAXS share price was SEK 68.40 and the total shareholders' equity per share was SEK 84.52. The Company's market capitalization was MSEK 758, and the number of shareholders was 5,211.
Financial information
Year-end report: 31 January 2024 Annual report 2023: week 7 2024 Annual General Meeting: 4 April 2024 Interim report (3 months): 25 April 2024 Interim report (6 months): 18 July 2024 Interim report (9 months): 29 October 2024 Year-end report 2024: 30 January 2025
Ticker codes NAXS.SS in Bloomberg NAXS.ST in Reuters
Contact
Gösta Lundgren, Interim CEO +46 70 710 47 88 [email protected]
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 19.00 CET on October 26, 2023
This report is an in-house translation of the original report in Swedish.
Stockholm, October 26, 2023
Daniel Gold Margaret (Meg) Eisner Nikolai Jebsen Chairman Director Director
Børge Johansen Synne Syrrist Gösta Lundgren Director Director Interim Chief Executive Officer
This report and other information are available on www.naxs.se.
NAXS AB (publ) Corp. Reg. No. 556712-2972 Nybrogatan 8 114 34 Stockholm, Sweden Tel: +46 (0)766 40 00 40 E-mail: [email protected]
Financial reports summary
Consolidated Income Statement
| Q3 | Jan-Sep | |||
|---|---|---|---|---|
| KSEK Note |
2023 | 2022 | 2023 | 2022 |
| Change in value | 12,680 | 54,788 | 26,069 | 155,693 |
| Operating costs note 2 |
-3,522 | -3,131 | -13,149 | -11,372 |
| Operating profit (loss) | 9,158 | 51,657 | 12,920 | 144,321 |
| Net financial items | 2,145 | 58 | 5,595 | 177 |
| Profit/loss after financial items | 11,303 | 51,715 | 18,515 | 144,498 |
| Income taxes | - | - | - | - |
| Net profit/loss | 11,303 | 51,715 | 18,515 | 144,498 |
| Attributable to: | ||||
| Parent company shareholders | 11,303 | 51,715 | 18,515 | 144,498 |
| Earnings per share, SEK* | 1.02 | 4.67 | 1.67 | 13.00 |
| Average number of shares, 000s* | 11,078 | 11,078 | 11,078 | 11,115 |
*Before and after dilution.
The groups comprehensive income is consistent with the net profit for the half-year.
Consolidated Balance Sheet
| 30 Sep | 31 Dec | ||
|---|---|---|---|
| KSEK Note |
2023 | 2022 | 2022 |
| Assets | |||
| Private equity fund investments | 641,369 | 632,214 | 687,989 |
| Other long-term holdings of securities | 65,488 | 48,231 | 60,801 |
| Total non-current assets | 706,857 | 680,445 | 748,790 |
| Other receivables | 4,161 | 236 | 214 |
| Cash and cash equivalents | 226,387 | 243,806 | 211,668 |
| Total current assets | 230,548 | 244,042 | 211,882 |
| Total assets | 937,405 | 924,487 | 960,672 |
| Equity | 936,226 | 923,671 | 959,252 |
| Current liabilities | 1,179 | 817 | 1,420 |
| Total equity and liabilities | 937,405 | 924,487 | 960,672 |
Consolidated Statement of Changes in Equity
| 30 Sep | 31 Dec | ||
|---|---|---|---|
| KSEK | 2023 | 2022 | 2022 |
| Equity at the beginning or the year | 959,252 | 822,855 | 822,855 |
| Repurchase of own shares | - | -4,648 | -4,650 |
| Dividend | -41,541 | -39,034 | -39,034 |
| Total comprehensive income for the period | 18,515 | 144,498 | 180,081 |
| Shareholder's equity at the end of the period | 936,226 | 923,671 | 959,252 |
Consolidated Statement of cash flows analysis
| Q3 | Jan-Sep | |||
|---|---|---|---|---|
| KSEK | 2023 | 2022 | 2023 | 2022 |
| Profit/loss after financial items | 11,303 | 51,715 | 18,515 | 144,498 |
| Adjustment for non-cash items, etc. | -12,688 | -53,838 | -26,095 | -155,951 |
| Income tax paid | - | - | - | - |
| Cash flow from operating activities before changes in working capital | -1,385 | -2,123 | -7,580 | -11,453 |
| Cash flow changes in working capital | -6,728 | -417 | -4,188 | -1,264 |
| Cash flow from operating activities | -8,113 | -2,540 | -11,768 | -12,717 |
| Private equity fund investments | -4,328 | -15,192 | -44,875 | -42,328 |
| Distributions fromf Private equity fund investments | 2,267 | 3,367 | 116,538 | 75,695 |
| Investments in Other long-term holdings of securities | - | - | -21,158 | - |
| Distributions from Other long-term holdings of securities | 16,006 | 262 | 17,497 | 1,262 |
| Cash flow from investment activities | 13,945 | -11,563 | 68,002 | 34,629 |
| Repurchase of own shares | - | - | - | -4,648 |
| Dividend | - | - | -41,541 | -39,034 |
| Cash flow from financing activities | - | - | -41,541 | -43,682 |
| Cash flow during the period | 5,832 | -14,103 | 14,693 | -21,770 |
| Cash and cash equivalents, beginning of the period * | 220,547 | 257,973 | 211,668 | 265,523 |
| Exchange-rate differences in cash and cash equivalents | 8 | -64 | 26 | 53 |
| Cash and cash equivalents at the end of the period | 226,387 | 243,806 | 226,387 | 243,806 |
* Including short-term investments
Parent Company Income Statement
| Q3 | Jan-Sep | |||
|---|---|---|---|---|
| KSEK | 2023 | 2022 | 2023 | 2022 |
| Net income | 79 | 210 | 513 | 674 |
| Operating costs | -1,130 | -867 | -3,413 | -3,604 |
| Operating profit/loss | -1,051 | -657 | -2,900 | -2,930 |
| Profit from shares in group companies | - | - | - | - |
| Net financial items | 943 | -130 | 3,126 | -143 |
| Profit /loss after financial items | -108 | -787 | 226 | -3,073 |
| Income taxes | - | - | - | - |
| Net profit/loss for the period | -108 | -787 | 226 | -3,073 |
Parent Company Statement of Comprehensive Income
| Q3 | Jan-Sep | |||
|---|---|---|---|---|
| KSEK | 2023 | 2022 | 2023 | 2022 |
| Net profit/loss for the period | -108 | -787 | 226 | -3,073 |
| Other comprehensive income | - | - | - | - |
| Total comprehensive income for the period | -108 | -787 | 226 | -3,073 |
Parent Company Balance Sheet
| 30 Sep | 31 Dec | ||
|---|---|---|---|
| KSEK | 2023 | 2022 | 2022 |
| Assets | |||
| Shares in subsidiaries | 422,008 | 481,802 | 382,008 |
| Receivables on group companies | - | 16,450 | - |
| Total non-current assets | 422,008 | 498,252 | 382,008 |
| Other receivables | 3,378 | 235 | 215 |
| Cash and cash equivalents | 105,799 | 948 | 190,507 |
| Total current assets | 109,177 | 1,183 | 190,722 |
| Total assets | 531,185 | 499,435 | 572,730 |
| Equity | 530,120 | 491,596 | 571,435 |
| Current liabilities | 1,065 | 7,839 | 1,295 |
| Total equity and liabilities | 531,185 | 499,435 | 572,730 |
Parent Company Statement of Changes in equity
| 30 Sep | 31 Dec | ||
|---|---|---|---|
| KSEK | 2023 | 2022 | 2022 |
| Equity at the beginning of the year | 571,435 | 538,351 | 538,351 |
| Repurchase of own shares | - | -4,648 | -4,650 |
| Dividend | -41,541 | -39,034 | -39,034 |
| Total comprehensive income for the period | 226 | -3,073 | 76,768 |
| Shareholder's equity at the end of the period | 530,120 | 491,596 | 571,435 |
Notes
Note 1. 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 2022 under notes to the financial reports.
The company has reassessed whether the functional currency of the Danish and Norwegian subsidiary should be DKK and NOK or SEK, respectively, i.e. the same as that of the parent company. Previously, the financial statements of the foreign subsidiaries were recalculated to SEK and the translation difference was reported in other comprehensive income. As of
December 31, 2022, the assessment has been modified in accordance with IAS 21.11(a). This means that the functional currency of the subsidiaries is now considered to be the same as that of the parent company and is reported in the income statement in the item changes in value. Earned translation difference has been transferred to retained earnings. The comparison year has been adjusted accordingly.
The new and amended IFRS standards and interpretations applied from 2023 have not and are not expected to have any significant effect on the Group's financial results and position.
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.
Note 2. Operating costs
| Q3 | Jan-Sep | |||
|---|---|---|---|---|
| KSEK | 2023 | 2022 | 2023 | 2022 |
| Fee to the investment advisor | -2,233 | -2,105 | -6,852 | -6,136 |
| Carried interest to the investment advisor | -31 | -5 | -2,439 | -1,109 |
| Personnel expenses | -231 | -232 | -687 | -917 |
| Other operating costs | -1,027 | -789 | -3,171 | -3,210 |
| Total operating costs | -3,522 | -3,131 | -13,149 | -11,372 |
No related party transaction occurred during the interim period, except for remunerations to the board members and the CEO.
Note 3. Financial assets and liabilities
The figures below are based on the same accounting and valuation principles that were used in the preparation of the most recent annual report. For more information on financial instruments in levels 2 and 3, see Note 23, Financial assets and liabilities, in NAXS Annual Report 2022.
| Group 2023-09-30 | |||||
|---|---|---|---|---|---|
| Fair value via | |||||
| the profit and | Total carrying | ||||
| Category, KSEK | Amortized cost | loss account | amount | ||
| Financial assets | |||||
| Private equity fund investments | 641,369 | 641,369 | |||
| Other long-term holdings of securities | 65,488 | 65,488 | |||
| Other receivables | 4,161 | 4,161 | |||
| Cash and cash equivalents | 226,387 | 226,387 | |||
| Total financial assets | 230,548 | 706,857 | 937,405 | ||
| Financial liabilities | 1,179 | - | 1,179 | ||
| Total financial liabilities | 1,179 | - | 1,179 | ||
Consolidated assets and liabilities measured at fair value 2023-06-30
| Assets, KSEK | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| Financial assets measured at fair value via the income statement | ||||
| Private equity fund investments | - | - | 641,369 | 641,369 |
| Other long-term holdings of securities | 46,056 | - | 19,432 | 65,488 |
| 46,056 | - | 660,801 | 706,857 |
Disclosure of fair value measurement by level in the following fair value hierarchy:
Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2 – Observable data for the asset or liabilities other than quoted prices included in tier 1, either directly (i.e. as price quotations) or indirectly (i.e. derived from price quotations).
Level 3 – Data for the asset or liability that is not based on observable market data (i.e. unobservable data).
NAXS's private equity fund investments are classified in Level 3. The Company's specific valuation techniques and critical estimates are reported under accounting policies. In level 3, unlisted units in investment funds are reported. The company's holdings in unlisted investment funds (so-called Private equity funds). The funds are valued using an
alternative valuation method for which observable input data is not available. For private equity funds, valuation is based on rates and unit values received from the fund manager. The valuation follows accepted valuation principles for calculating fair values. The fair value is calculated by the underlying assets being market-valued and priced by the fund administrator. If NAXS assesses that the fund administrator's valuation has not sufficiently taken into account factors that affect the value of the underlying holdings or if the valuation made is deemed to deviate significantly from the accounting principles for valuation at fair value, an adjustment is made to the value.
For those instruments in the balance sheet that are not measured at fair value, NAXS believe that the carrying amount is a reasonable approximation to fair value for these instruments.
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 in-depth 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 de-fined 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.
| Definitions | |
|---|---|
| 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 long-term receivables, less interest-bearing current and long term liabilities. |
| Other Investments / Other long term holdings of securities |
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, subsum 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.
| 30 Sep | 31 Dec | ||
|---|---|---|---|
| Group, KSEK | 2023 | 2022 | 2022 |
| Cash and cash equivalents | 226,387 | 243,806 | 211,668 |
| Net cash | 226,387 | 243,806 | 211,668 |
Total assets
The net of all assets and liabilities that are not included in the net cash.
| 30 Sep | 31 Dec | ||
|---|---|---|---|
| Group, KSEK | 2023 | 2022 | 2022 |
| Equity | 936,226 | 923,671 | 959,252 |
| Net cash | -226,387 | -243,806 | -211,668 |
| Total assets | 709,839 | 679,865 | 747,584 |
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 2023-09-30 | Net asset value, SEK per share |
||
|---|---|---|---|
| Net asset value, KSEK Number of shares outstanding |
936,226 11,077,585 |
= | 84.52 |
| Net asset value, | |||
| Group 2022-09-30 | SEK per share | ||
| Net asset value, KSEK | 923,671 | ||
| Number of shares outstanding | 11,077,585 | 83.38 | |
| Net asset value, | |||
| Group 2022-12-31 | SEK per share | ||
| Net asset value, KSEK | 959,252 | = | 86.59 |
| Number of shares outstanding | 11,077,585 |
THIS IS A TRANSLATION FROM THE SWEDISH ORIGINAL
Review report
NAXS AB (publ), corporate identity number 556712-2972
Introduction
We have reviewed the condensed interim report for NAXS AB (publ) as at September 30, 2023 and for the nine months period then ended. The Board of Directors and the Managing Director are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.
Scope of review
We conducted our review in accordance with the International Standard on Review Engagements, ISRE 2410 Review of Interim Financial Statements Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act regarding the Group, and in accordance with the Swedish Annual Accounts Act regarding the Parent Company.
Stockholm the day indicated by our electronic signature
Ernst & Young AB
Mona Alfredsson Authorized Public Accountant