AI Terminal
NAXS
Quarterly Report • Oct 29, 2024
3178_10-q_2024-10-29_2c00af8e-c854-429d-8a31-09f5dca5cb2a.pdf
Quarterly Report
Open in ViewerOpens in native device viewer
Interim financial report
January – September 2024
NAXS AB (publ)
Interim financial report January – September 2024
9-month 2024
- Ͷ Net profit amounted to MSEK -72.3 (18.5).
- Ͷ Earnings per share amounted to SEK -6.53 (1.67).
- Ͷ Net asset value amounted to MSEK 803 (SEK 72.46 per share) at September 30, 2024, compared to MSEK 922 (SEK 83.24 per share) at December 31, 2023.
- Ͷ Net cash amounted to MSEK 222 (SEK 20.02 per share) at September 30, 2024, compared to MSEK 209 (SEK 18.89 per share) at December 31, 2023.
- Ͷ The 2024 Annual General Meeting resolved to pay a dividend of 4.25 SEK per share for FY 2023 and voted for a continued share repurchase mandate.
SEK NAV per share
803 MSEK Net Asset Value
Third quarter 2024
- Ͷ Net profit amounted to MSEK -41.5 (11.3).
- Ͷ Earnings per share amounted to SEK -3.74 (1.02).
Financial summary
| 2024 | 2023 | |
|---|---|---|
| 30 Sep | 31 Dec | |
| Net asset value (NAV), KSEK | 802 666 | 922 065 |
| Private equity fund investments, KSEK | 494 414 | 639 030 |
| Private equity fund investments in % of equity | 62 | 69 |
| Remaining commitments, KSEK | 83 793 | 96 622 |
| Total exposure to Private equity fund investments, KSEK | 578 207 | 735 652 |
| Other Investments, KSEK | 85 355 | 75 001 |
| Net cash, KSEK | 221 718 | 209 226 |
| Private equity fund investments per share, SEK | 44,63 | 57,69 |
| Other Investments per share, SEK | 7,71 | 6,77 |
| Net cash per share, SEK | 20,02 | 18,89 |
| Net asset value per share, SEK | 72,46 | 83,24 |
| Share price, SEK | 58,80 | 71,40 |
Comments by the CEO
NAXS net asset value per share decreased by 4.9% to SEK 72.46 during Q3 2024. The company reported a net loss of MSEK 41.5 for the quarter, mainly due to a decline in the value of private equity fund investments. Net cash stood at MSEK 222, following repayments from private equity funds.
During the quarter, NAXS made a MEUR 1.3 investment in Equip Capital SPV SCSp ("Equip SPV"). Equip SPV is a continuation vehicle established to acquire 2 portfolio companies, Rush and iteam, from Equip Capital Fund I with the aim to build on their successful platforms and support a new phase of growth.
After the end of the Interim period, NAXS increased its commitment to Celero Fund (E) AB by MEUR 1.7, bringing its total commitment to the fund to MEUR 3.2. Celero focuses on the services, consumer goods and niche industrials sectors.
Nikolai Jebsen
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, 2024, NAXS had commitments to 13 active private equity funds (11 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 Fund size: n/a Segment: large cap Segment: lower mid cap Geographic focus: primarily Europe Geographic focus: Nordics Vintage: 2007 Vintage: 2023 Website: www.apax.com Website: https://celerocapital.com/ NAXS initial commitment: MEUR 15 NAXS initial commitment: MEUR 1.5
Apax Europe 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.
No. of portfolio companies/exits: 3/33 No. of portfolio companies/exits: 3/0
Equip Capital I is the first fund raised by Equip Capital, an Oslo-based private equity firm focusing on investments in small and midsized companies in the Nordic region. The Equip Capital team has extensive investment experience across the consumer, industrial and business services sectors.
Fund size: MNOK 1,900 Fund size: MEUR 310 Segment: small/mid cap Segment: small/mid cap Geographic focus: Norway and Nordics Geographic focus: Norway/Nordics Vintage: 2020 Vintage: 2024 Website: www.equip.no Website: www.equip.no NAXS initial commitment: MNOK 20 NAXS initial commitment: MEUR 1.3 No. of portfolio companies/exits: 10/2 No. of portfolio companies /exits: 2/0
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 Fund size: MUSD 3,800 Segment: large cap Segment: large cap Geographic focus: global Geographic focus: global Vintage: 2018 Vintage: 2020 Website: https://www.jabholco.com Website: https://www.jabholco.com NAXS initial commitment: MUSD 5 NAXS initial commitment: MEUR 5
JAB Consumer Partners – JCP V Mimir Industries AB
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 Fund size: >MSEK 500 Segment: large cap Segment: mid cap
Vintage: 2022 Vintage: 2022 Website: https://www.jabholco.com Website: www.mimirinvest.com NAXS initial commitment: MEUR 5 NAXS initial commitment: MSEK 75 No. of platform investments/exits: 1/0 No. of portfolio companies/exits: 6/0
Equip Capital I Equip Capital SPV SCSp
Equip Capital SPV is a continuation vehicle established to acquire 2 portfolio companies, Rush and iteam, from Equip Capital Fund I ("Equip Fund I") with the aim to build on their successful platforms and support a new phase of growth. Rush is one of the largest indoor trampoline park operators in Europe, while iteam is a leading IT services provider to the Norwegian SME market.
JAB Consumer Fund – Global Consumer Brands III
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.
No. of platform investments/exits: 3/1 No. of platform investments/exits: 2/0
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.
Geographic focus: global Geographic focus: global, with a focus on the Nordics
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 Fund size: MEUR 2,500 Segment: small cap Segment: large cap Geographic focus: global, with a focus on the Nordics Vintage: 2017 Vintage: 2018 Website: www.mimirinvest.com Website: https://www.nordiccapital.com/ NAXS initial commitment: MSEK 50 NAXS initial commitment: MEUR 14.65 No. of portfolio companies/exits: 6/3 No. of portfolio companies/exits: 0/10
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 Fund size: MEUR 6,100 Segment: mid cap Segment: large cap
Vintage: 2021 Vintage: 2020 NAXS initial commitment: MEUR 1 NAXS initial commitment: MEUR 2 No. of portfolio companies/exits: 9/0 No. of portfolio companies/exits: 16/0
Mimir Invest AB Nordic Capital CV1 LP
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.
Geographic focus: primarily the Nordics
Nordic Capital Evolution Nordic Capital Fund X LP
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.
Geographic focus: Northern Europe Geographic focus: Europe and selected global healthcare and technology & payments investments Website: https://www.nordiccapital.com/ Website: https://www.nordiccapital.com/
Valedo Partners Fund II
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: 4/7
In addition, NAXS had at September 30, 2024, a commitment to 1 private equity fund that had exited all its portfolio companies and was in a dissolution process (Nordic Capital VII).
Other Investments
As of September 30, 2024, Other Investments encompassed 9 holdings.
| Company | Sector | Type of instrument | Date of initial investment |
Reported value, 2024.09.30 MSEK |
Reported value, 2023.12.31 MSEK |
|---|---|---|---|---|---|
| Scout Gaming Group |
iGaming | listed share (Nasdaq First North) |
Q4 2017 | 0.0 | 0.1 |
| Awilco Drilling Energy | listed share (Euronext Growth Oslo) |
Q1 2018 | 17.1 | 13.4 | |
| Keurig Dr Pepper |
Consumer goods & services |
listed share Nasdaq (NY) | Q3 2020 | 24.6 | 21.9 |
| Pret Panera | Food & beverage unlisted share | Q4 2020 | 2.0 | 2.6 | |
| Krispy Kreme | Food & beverage listed share (Nasdaq NY) | Q1 2021 | 4.6 | 6.5 | |
| Jacktel | Energy | unlisted share (registered on Euronext NOTC) |
Q1 2022 | 12.5 | 11.9 |
| Novonesis A/S Biotechnology | listed share (Nasdaq Copenhagen) |
Q4 2022 | 3.7 | 2.8 | |
| Reledo | Business Services unlisted share | Q2 2023 | 9.5 | 5.7 | |
| Panera Brands Food & beverage unlisted share | Q2 2023 | 11.3 | 10.2 | ||
| Total | 85.4 | 75.0 |
Exposure to Private equity fund investments and Other Investments
At September 30, 2024, the total exposure to Private equity fund investments and Other Investments amounted to MSEK 664, which corresponds to 83% 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 NAV/share contracted by 4.9% during the third quarter and by 9.2% over 12 months (including the dividend paid).
New investments, acquisitions and liquidity events during the third quarter
Commitments to Private equity funds
During the quarter, NAXS made a MEUR 1.3 investment in Equip Capital SPV SCSp ("Equip SPV"). Equip SPV is a continuation vehicle established to acquire 2 portfolio companies, Rush and iteam, from Equip Capital Fund I ("Equip Fund I") with the aim to build on their successful platforms and support a new phase of growth. Rush is one of the largest indoor trampoline park operators in Europe, while iteam is a leading IT services provider to the Norwegian SME market. NAXS is an existing investor in Equip Fund I, where it made a NOK 20 million commitment in 2020. NAXS's investment in Equip SPV corresponds to the rollover of its part of the proceeds generated to Equip Fund I by the divestment of Rush and iteam to Equip SPV.
Other Investments
At the end of the third quarter, NAXS subscribed for 577,636 shares in Awilco Drilling through the exercise of warrants issued as part of the June 2023 new share offering in the company. The settlement is to take place at the beginning of the fourth quarter.
Acquisitions by underlying funds
4 new portfolio companies were acquired by underlying funds during the third quarter.
| Portfolio Company |
Sector | Geography | Fund |
|---|---|---|---|
| Opima | Industrials | Sweden | Celero Fund E AB |
| iteam | Business services |
Norway | Equip SPV |
| Rush | Consumer | Europe | Equip SPV |
| Sensio | Healthcare | Nordics | Nordic Capital Evolution |
Liquidity events in underlying funds
Underlying funds made 3 exits during the third quarter.
| Portfolio Company |
Sector | Year of acquisition |
Fund |
|---|---|---|---|
| iteam | Business services |
2020 | Equip Fund I |
| Rush | Consumer | 2019 | Equip Fund I |
| Ellos | Consumer | 2018 | Nordic Capital CV1 |
At September 30, 2024, NAXS's underlying funds had acquired a total of 191 companies, 123 of which had been fully divested. These 123 exits have generated an average IRR of 17.7%.
Portfolio composition/diversification
At September 30, 2024, 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 14,0% Business services 7,5% Consumer goods & services 7,8% Food & beverage 9,3% Healthcare 2,3% Industry 32,1% Pet care & services 24,3%
- Tech & software 2,7%
The 10 largest underlying portfolio companies represent approximately 49% of the total equity, with the largest underlying portfolio company accounting for approximately 14% of equity.
Group
Net asset value (NAV)
| 30 Sep | 31 Dec | ||
|---|---|---|---|
| KSEK | 2024 | 2023 | 2023 |
| Private equity fund investments | 494 414 | 641 369 | 639 030 |
| Other Investments | 85 355 | 65 488 | 75 001 |
| Other assets and liabilities | 1 179 | 2 982 | -1 192 |
| Net cash | 221 718 | 226 387 | 209 226 |
| Net asset value (NAV) | 802 666 | 936 226 | 922 065 |
| Net asset value per share, SEK | 72,46 | 84,52 | 83,24 |
Changes in Net asset value (NAV)
| Q3 | Jan-Sep | Jan-Dec | |
|---|---|---|---|
| KSEK | 2024 | 2024 | 2023 |
| Net asset value (NAV) at the beginning of the period | 844 132 | 922 065 | 959 252 |
| Value changes on Private eguity fund investments | -45 045 | -75 270 | 3 107 |
| Value changes Other Investments | 4 444 | 10 800 | 10 734 |
| Operating costs | -2 163 | -12 634 | -16 811 |
| Net financial items | 1 301 | 4 790 | 7 333 |
| Income tax | -3 | -5 | -9 |
| Dividend to shareholders | - | -47 080 | -41 541 |
| Net asset value (NAV) at the end of the period | 802 666 | 802 666 | 922 065 |
Changes in Private equity fund investments and Other Investments
| Fund investments | Other investments | |||||
|---|---|---|---|---|---|---|
| Q3 | Jan-Sep | Jan-Dec | Q3 | Jan-Sep | Jan-Dec | |
| KSEK | 2024 | 2024 | 2023 | 2024 | 2024 | 2023 |
| At the beginning of the period | 576 391 | 639 030 | 687 989 | 81 200 | 75 001 | 60 801 |
| Investments | 27 795 | 33 572 | 65 953 | - | - | 21 158 |
| Repayments | -64 727 | -102 919 | -118 019 | -289 | -446 | -17 692 |
| Net investments | -36 932 | -69 346 | -52 066 | -289 | -446 | 3 466 |
| Changes in value | -38 788 | -75 969 | 10 407 | 7 225 | 10 776 | 11 595 |
| Dividends and interest income | - | - | - | 289 | 446 | 1 277 |
| Unrealized exchange rate changes | -6 257 | 699 | -7 300 | -3 070 | -422 | -2 138 |
| Reported through the income statement | -45 045 | -75 270 | 3 107 | 4 444 | 10 800 | 10 734 |
| Reported value at the end of the period | 494 414 | 494 414 | 639 030 | 85 355 | 85 355 | 75 001 |
The total change in value reported through the income statement in Q3 for Private equity fund investments and Other Investments amounts to KSEK -40,600 (12,680) and the total change in value for the 9-month period amounts to KSEK -64,469 (26,029). Unrealized exchange rate changes are the period's change in the value of the holdings when translated from the fund's reported currency to SEK.
Net cash
| 30 Sep | 31 Dec | ||
|---|---|---|---|
| KSEK | 2024 | 2023 | 2023 |
| Cash, bank and short-term investments | 221 718 | 226 387 | 209 226 |
| 221 718 | 226 387 | 209 226 | |
| Net cash per share, SEK | 20,02 | 20,44 | 18,89 |
44.63 SEK Private equity fund investments per share
During the interim period, 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 | 2024 | 2024 | 2023 |
| Net cash at the beginning of the period | 186 946 | 209 226 | 211 668 |
| Investments in Private equity funds | -27 795 | -33 572 | -65 953 |
| Distributions from Private equity funds | 64 728 | 102 919 | 118 019 |
| Investments in Other long-term holdings of securities | - | - | -21 158 |
| Distributions from Other long-term holdings of securities | 289 | 446 | 17 692 |
| Cash flow from operating activeties | -1 421 | -10 504 | -9 501 |
| Cash flow from changes in working capital* | -1 029 | 283 | - |
| Dividend to shareholders | - | -47 080 | -41 541 |
| Net cash at the end of the period | 221 718 | 221 718 | 209 226 |
*Including exchange rate difference in cash and cash equivalents.
Net financial items
| Q3 | Jan-Sep | Jan-Dec | |
|---|---|---|---|
| KSEK | 2024 | 2024 | 2023 |
| Interest income | 1 418 | 4 899 | 7 323 |
| Interest expenses | - | -1 | -3 |
| Currency effects | -117 | -108 | 13 |
| Net financial items | 1 301 | 4 790 | 7 333 |
Financing
The Group is financed with shareholders' equity. Shareholders' equity amounted to KSEK 802,666 (922,065) at the end of the 9-month period, corresponding to SEK 72.46 (83.24) per share and an equity/asset ratio of 99.7 (99.9) percent. Dividend to shareholders for FY 2023 amounted to KSEK 47,080 (41,541) corresponding to SEK 4.25 (3.75) per share.
72.46 SEK Equity per share
Results and investments
Second quarter 2024
Profit/loss after financial items amounted to KSEK -41,466 (11,303). The result is mainly attributable to changes in the value in Private equity funds KSEK -45,045 (12,768) and Other Investments KSEK 4,444 (-89).
During the quarter, NAXS invested KSEK 27,795 (4,328) in Private equity funds and repayments from the funds amounted to KSEK 64,727 (2,267). Investments in Other Investments amounted to KSEK 0 (0) and repayments amounted to KSEK 289 (16,006).
9-month 2024
Profit after financial items amounted to KSEK -72,319 (18,515). The result is mainly attributable to changes in the value in Private equity funds of KSEK -75,270 (25,043) and in Other Investments KSEK 10,800 (1,026).
During the interim period, NAXS invested KSEK 33,572 (44,875) in Private equity funds. Repayments from the funds amounted to KSEK 102,919 (116,538). KSEK 0 (21,158) was invested in Other Investments and repayments from Other Investments amounted to KSEK 446 (17,497).
Events after the end of the Interim period
After the end of the Interim period, NAXS increased its commitment to Celero Fund (E) AB by MEUR 1.7, bringing its total commitment to the fund to MEUR 3.2 (NAXS had made a MEUR 1.5 commitment at the first close of the fund in 2023). The fund, which focuses on the services, consumer goods and niche industrials sectors, currently holds 3 portfolio companies.
On October 7, Nikolai Jebsen succeeded Gösta Lundgren as interim CEO. Nikolai Jebsen has been a director of the Company since 2021.
Significant risks and uncertainty factors
Significant risks and uncertainty factors are described in the Annual Report 2023. The significant macro and geopolitical risks that arose since 2022 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 financial year amounted to KSEK 501 (513). Net interest amounted to SEK 2,045 (3,126). The profit/loss before and after tax amounted to KSEK -793 (226).
Organization
Nikolai Jebsen succeeded Gösta Lundgren as interim CEO on October 7, 2024. The Board of Directors consists of Daniel Gold (chairman), Meg Eisner, Nikolai Jebsen, Børge Johansen and Synne Syrrist, who were re-elected at the 2024 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 11,077,585.
At September 30, 2024, the NAXS share price was SEK 58.80 and the total shareholders' equity per share was SEK 72.46. The Company's market capitalization was MSEK 651, and the number of shareholders was 4,756.
Financial information
Year-end report: 30 January 2025 Annual report 2024: week 8 2025 Annual General Meeting: 3 April 2025 Interim report (3 months): 29 April 2025 Interim report (6 months): 5 August 2025 Interim report (9 months): 23 October 2025 Year-end report 2024: 29 January 2026
Ticker codes NAXS.SS in Bloomberg NAXS.ST in Reuters
Contact
Nikolai Jebsen, Interim CEO +47 462 82 222 [email protected]
Gösta Lundgren, CFO +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 29, 2024
This report is an in-house translation of the original report in Swedish.
Stockholm, October 29, 2024
Daniel Gold Margaret (Meg) Eisner Børge Johansen Chairman Director Director
Synne Syrrist Nikolai Jebsen Director Director and Interim CEO
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 |
2024 | 2023 | 2024 | 2023 |
| Change in value | -40 600 | 12 680 | -64 469 | 26 069 |
| Operating costs note 2 |
-2 164 | -3 522 | -12 635 | -13 149 |
| Operating profit (loss) | -42 764 | 9 158 | -77 104 | 12 920 |
| Net financial items | 1 301 | 2 145 | 4 790 | 5 595 |
| Profit/loss after financial items | -41 463 | 11 303 | -72 314 | 18 515 |
| Income taxes | -3 | - | -5 | - |
| Net profit/loss | -41 466 | 11 303 | -72 319 | 18 515 |
| Attributable to: | ||||
| Parent company shareholders | -41 466 | 11 303 | -72 319 | 18 515 |
| Earnings per share, SEK* | -3,74 | 1,02 | -6,53 | 1,67 |
| Average number of shares, 000s* | 11 078 | 11 078 | 11 078 | 11 078 |
*Before and after dilution.
The groups comprehensive income is consistent with the net profit for the interim period.
Consolidated Balance Sheet
| 30 Sep | 31 Dec | ||
|---|---|---|---|
| KSEK Note |
2024 | 2023 | 2023 |
| Assets | |||
| Private equity fund investments | 494 414 | 641 369 | 639 030 |
| Other long-term holdings of securities | 85 355 | 65 488 | 75 001 |
| Total non-current assets | 579 769 | 706 857 | 714 031 |
| Other receivables | 3 593 | 4 161 | 503 |
| Cash and cash equivalents | 221 718 | 226 387 | 209 226 |
| Total current assets | 225 311 | 230 548 | 209 729 |
| Total assets | 805 080 | 937 405 | 923 760 |
| Equity | 802 666 | 936 226 | 922 065 |
| Current liabilities | 2 414 | 1 179 | 1 695 |
| Total equity and liabilities | 805 080 | 937 405 | 923 760 |
Consolidated Statement of Changes in Equity
| 30 Sep | 31 Dec | ||
|---|---|---|---|
| KSEK | 2024 | 2023 | 2023 |
| Equity at the beginning or the year | 922 065 | 959 252 | 959 252 |
| Dividend | -47 080 | -41 541 | -41 541 |
| Total comprehensive income for the period | -72 319 | 18 515 | 4 354 |
| Shareholder's equity at the end of the period | 802 666 | 936 226 | 922 065 |
Consolidated Statement of cash flows analysis
| Q3 | Jan-Sep | |||
|---|---|---|---|---|
| KSEK | 2024 | 2023 | 2024 | 2023 |
| Profit/loss after financial items | -41 463 | 11 303 | -72 314 | 18 515 |
| Adjustment for non-cash items, etc. | 40 044 | -12 688 | 61 814 | -26 095 |
| Income tax paid | -3 | - | -5 | - |
| Cash flow from operating activities before changes in working capital | -1 422 | -1 385 | -10 505 | -7 580 |
| Cash flow changes in working capital | -910 | -6 728 | 392 | -4 188 |
| Cash flow from operating activities | -2 332 | -8 113 | -10 113 | -11 768 |
| Private equity fund investments | -27 795 | -4 328 | -33 572 | -44 875 |
| Distributions fromf Private equity fund investments | 64 728 | 2 267 | 102 919 | 116 538 |
| Investments in Other long-term holdings of securities | - | - | - | -21 158 |
| Distributions from Other long-term holdings of securities | 289 | 16 006 | 446 | 17 497 |
| Cash flow from investment activities | 37 222 | 13 945 | 69 793 | 68 002 |
| Dividend | - | - | -47 080 | -41 541 |
| Cash flow from financing activities | - | - | -47 080 | -41 541 |
| Cash flow during the period | 34 890 | 5 832 | 12 600 | 14 693 |
| Cash and cash equivalents, beginning of the period | 186 946 | 220 547 | 209 226 | 211 668 |
| Exchange-rate differences in cash and cash equivalents | -118 | 8 | -108 | 26 |
| Cash and cash equivalents at the end of the period | 221 718 | 226 387 | 221 718 | 226 387 |
Parent Company Income Statement
| Q3 | Jan-Sep | |||
|---|---|---|---|---|
| KSEK | 2024 | 2023 | 2024 | 2023 |
| Net income | 105 | 79 | 501 | 513 |
| Operating costs | -972 | -1 130 | -3 339 | -3 413 |
| Operating profit/loss | -867 | -1 051 | -2 838 | -2 900 |
| Net financial items | 493 | 943 | 2 045 | 3 126 |
| Profit /loss after financial items | -374 | -108 | -793 | 226 |
| Income taxes | - | - | - | - |
| Net profit/loss for the period | -374 | -108 | -793 | 226 |
Parent Company Statement of Comprehensive Income
| Q3 | Jan-Sep | ||||
|---|---|---|---|---|---|
| KSEK | 2024 | 2023 | 2024 | 2023 | |
| Net profit/loss for the period | -374 | -108 | -793 | 226 | |
| Other comprehensive income | - | - | - | - | |
| Total comprehensive income for the period | -374 | -108 | -793 | 226 |
Parent Company Balance Sheet
| 30 Sep | 31 Dec | ||
|---|---|---|---|
| KSEK | 2024 | 2023 | 2023 |
| Assets | |||
| Shares in subsidiaries | 422 008 | 422 008 | 422 008 |
| Total non-current assets | 422 008 | 422 008 | 422 008 |
| Other receivables | 2 822 | 3 378 | 724 |
| Cash and cash equivalents | 58 743 | 105 799 | 108 916 |
| Total current assets | 61 565 | 109 177 | 109 640 |
| Total assets | 483 573 | 531 185 | 531 648 |
| Equity | 482 248 | 530 120 | 530 121 |
| Current liabilities | 1 325 | 1 065 | 1 527 |
| Total equity and liabilities | 483 573 | 531 185 | 531 648 |
Parent Company Statement of Changes in equity
| 30 Sep | 31 Dec | ||
|---|---|---|---|
| KSEK | 2024 | 2023 | 2023 |
| Equity at the beginning of the year | 530 121 | 571 435 | 571 435 |
| Dividend | -47 080 | -41 541 | -41 541 |
| Total comprehensive income for the period | -793 | 226 | 227 |
| Shareholder's equity at the end of the period | 482 248 | 530 120 | 530 121 |
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 2023 under notes to the financial reports.
The new and amended IFRS standards and interpretations applied from 2024 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.
Note 2. Operating costs
| Q3 | Jan-Sep | |||
|---|---|---|---|---|
| KSEK | 2024 | 2023 | 2024 | 2023 |
| Fee to the investment advisor | -1 976 | -2 233 | -6 287 | -6 852 |
| Carried interest to the investment advisor | 833 | -31 | -2 658 | -2 439 |
| Personnel expenses | -231 | -231 | -687 | -687 |
| Other operating costs | -790 | -1 027 | -3 003 | -3 171 |
| Total operating costs | -2 164 | -3 522 | -12 635 | -13 149 |
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 table below provides information on how fair value is determined for the financial instruments measured at fair value on the balance sheet.
| Group 2024-09-30 | |||
|---|---|---|---|
| Fair value via | |||
| the profit and | Total carrying | ||
| Category, KSEK | Amortized cost | loss account | amount |
| Financial assets | |||
| Private equity fund investments | - | 494 414 | 494 414 |
| Other long-term holdings of securities | - | 85 355 | 85 355 |
| Other receivables | 3 330 | - | 3 330 |
| Cash and cash equivalents | 221 718 | - | 221 718 |
| Total financial assets | 225 048 | 579 769 | 804 817 |
| Financial liabilities | 2 414 | - | 2 414 |
| Total financial liabilities | 2 414 | - | 2 414 |
| Group 2023-12-31 | ||||
|---|---|---|---|---|
| Fair value via | ||||
| the profit and | Total carrying | |||
| Category, KSEK | Amortized cost | loss account | amount | |
| Financial assets | ||||
| Private equity fund investments | - | 639 030 | 639 030 | |
| Other long-term holdings of securities | - | 75 001 | 75 001 | |
| Other receivables | 333 | - | 333 | |
| Cash and cash equivalents | 209 226 | - | 209 226 | |
| Total financial assets | 209 559 | 714 031 | 923 590 | |
| Financial liabilities | 1 695 | - | 1 695 | |
| Total financial liabilities | 1 695 | - | 1 695 |
Consolidated assets and liabilities measured at fair value 2024-09-30.
| Assets, KSEK | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| Financial assets measured at fair value via the income statement | ||||
| Private equity fund investments | - | - | 494 414 | 494 414 |
| Other long-term holdings of securities | 62 580 | - | 22 775 | 85 355 |
| 62 580 | - | 517 189 | 579 769 |
Consolidated assets and liabilities measured at fair value 2023-12-31.
| Assets, KSEK | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| Financial assets measured at fair value via the income statement | ||||
| Private equity fund investments | - | - | 639 030 | 639 030 |
| Other long-term holdings of securities | 56 533 | - | 18 468 | 75 001 |
| 56 533 | - | 657 498 | 714 031 |
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).
The book value for all of NAXS's financial assets and liabilities is consistent with or is a reasonable estimate of fair value. All amounts are shown in the reported balance sheets. 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 (socalled Private equity 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. The funds follow the IPEV Valuation Guidelines when valuing their holdings. The International Private Equity and Venture Capital Valuation (IPEV) Guidelines set out recommendations, intended to represent current best practice, on the valuation of Private Capital Investments. 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. Listed holdings held by the funds are valued based on the share price of the respective holdings on the balance sheet date. At the end of the interim period, the company has not adjusted the fund managers' valuations to any material extent.
Based on the controls applied, NAXS considers that the fair values recognised in the balance sheet and changes in fair value recognised in the income statement are well prepared and balanced and reflect the underlying economic values
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. |
| Definitions | |
|---|---|
| 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 fund investments combined 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 | 2024 | 2023 | 2023 |
| Cash and cash equivalents | 221 718 | 226 387 | 209 226 |
| Net cash | 221 718 | 226 387 | 209 226 |
Total assets
The net of all assets and liabilities that are not included in the net cash.
| 30 Sep | 31 Dec | ||
|---|---|---|---|
| Group, KSEK | 2024 | 2023 | 2023 |
| Equity | 802 666 | 936 226 | 922 065 |
| Net cash | -221 718 | -226 387 | -209 226 |
| Total assets | 580 948 | 709 839 | 712 839 |
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 2024-09-30 | Net asset value, SEK per share |
||
|---|---|---|---|
| Net asset value, KSEK Number of shares outstanding |
802 666 = 11 077 585 |
72,46 | |
| Group 2023-09-30 | Net asset value, SEK per share |
||
| Net asset value, KSEK | 936 226 | ||
| Number of shares outstanding | 11 077 585 | 84,52 | |
| Net asset value, | |||
| Group 2023-12-31 | SEK per share | ||
| Net asset value, KSEK | 922 065 | 83,24 | |
| 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, 2024 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