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NAXS
Quarterly Report • Apr 25, 2024
3178_10-q_2024-04-25_a6bc549a-b369-4d27-a5b1-40fb3938ae06.pdf
Quarterly Report
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3-month financial report
January – March 2024
NAXS AB (publ)
3-month financial report January – March 2024
First quarter 2024
- Net profit amounted to MSEK 1.1 (3.9).
- Earnings per share amounted to SEK 0.10 (0.36).
- Net asset value amounted to MSEK 923 (SEK 83.33 per share) at March 31, 2024, compared to MSEK 922 (SEK 83.24 per share) at December 31, 2023.
- Net cash amounted to MSEK 235 (SEK 21.25 per share) at March 31, 2024, compared to MSEK 209 (SEK 18.89 per share) at December 31, 2023.
Events after the end of the First quarter
— 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.
Financial summary
| 2024 | 2023 | |
|---|---|---|
| 31 Mar | 31 Dec | |
| Net asset value (NAV), KSEK | 923 149 | 922 065 |
| Private equity fund investments, KSEK | 611 112 | 639 030 |
| Private equity fund investments in % of equity | 66 | 69 |
| Remaining commitments, KSEK | 98 254 | 96 622 |
| Total exposure to Private equity fund investments, KSEK | 709 366 | 735 652 |
| Other Investments, KSEK | 77 855 | 75 001 |
| Net cash, KSEK | 235 395 | 209 226 |
| Private equity fund investments per share, SEK | 55,17 | 57,69 |
| Other Investments per share, SEK | 7,03 | 6,77 |
| Net cash per share, SEK | 21,25 | 18,89 |
| Net asset value per share, SEK | 83,33 | 83,24 |
| Share price, SEK | 70,00 | 71,40 |
Comments by the CEO
NAXS experience a flat NAV development during the first quarter with the NAV/share increasing by 0.1%. Over 12 months, the NAV/share has increased by 0,1%, including the FY 2022 dividend paid in April 2023.
Rising stock indices and the prospect of interest rate cuts have provided a supportive macroeconomic background during the first quarter, although this has yet to translate into a material increase in private equity activity.
During the quarter, NAXS's underlying funds signed 1 new acquisition and 1 exit, while the co-investment in Reledo continued to grow through add-on acquisitions.
After the end of the quarter, the Company's 2024 AGM approved on April 4 the payment of the dividend of SEK 4.25/share for FY 2023.
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 March 31, 2024, 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: 2007 Website: www.apax.com NAXS initial commitment: MEUR 15 No. of portfolio companies/exits: 3/33
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.
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 platform investments/exits: 3/1
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 platform investments/exits: 2/0
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 platform investments/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: 2018 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: 6/3
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: 8/0
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: 15/1
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: 5/7
In addition, NAXS has commitments to 4 private equity funds that are either in dissolution process or have exited all their portfolio companies (FSN Capital III, Herkules Private Equity III, Intera II and Nordic Capital VII).
Other Investments
As of March 31, 2024, there were 9 holdings in Other Investments.
| Company | Sector | Type of instrument | Date of initial investment |
Reported value, 2024.03.31 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 | 10.4 | 13.4 |
| Keurig Dr Pepper |
Consumer goods & services |
listed share Nasdaq (NY) | Q3 2020 | 21.8 | 21.9 |
| Pret Panera | Fast food casual | unlisted share | Q4 2020 | 2.9 | 2.6 |
| Krispy Kreme Doughnuts |
Fast food casual | listed share (Nasdaq NY) | Q1 2021 | 6.9 | 6.5 |
| Jacktel | Energy | unlisted share (registered on Euronext NOTC) |
Q1 2022 | 11.9 | 11.9 |
| Chr. Hansen Holding A/S |
Bioscience | listed share (Nasdaq Copenhagen) |
Q4 2022 | 3.2 | 2.8 |
| Reledo | Business Services | unlisted share | Q2 2023 | 9.2 | 5.7 |
| Panera Brands | Fast food casual | unlisted share | Q2 2023 | 11.5 | 10.2 |
| Total | 77.9 | 75.0 |
Exposure to Private equity fund investments and Other Investments
At March 31, 2024, the total exposure to Private equity fund investments and Other Investments amounted to MSEK 787, which corresponds to 85% 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 decreased by 0.1% during the First quarter of 2024 (including the dividend paid).
New investments, acquisitions and liquidity events during the First quarter
Commitments to Private equity funds NAXS did not make any new Commitment during the First quarter.
Other Investments
NAXS did not make any new Other Investment during the First quarter.
Acquisitions by underlying funds
1 new portfolio company was added during the First quarter.
| Portfolio Company |
Sector | Geography | Fund |
|---|---|---|---|
| Best Insurance Services |
Pet services | global | JAB-JCP V |
Liquidity events in underlying funds
1 exit by underlying fund took place during the First quarter.
| Portfolio Company |
Sector | Year of acquisition |
Fund |
|---|---|---|---|
| Advanz Pharma |
Healthcare | 2021 | Nordic Capital Fund X |
At March 31, 2024, NAXS underlying funds had acquired a total of 185 companies, 119 of which had been fully divested. These 119 exits have generated an average IRR of 17.9%.
Portfolio composition/diversification
At March 31, 2024, NAXS provided the following exposure:
Fund segment allocation (% of Private equity fund investments)
| Nordic small cap 58,9% |
|---|
| Nordic mid cap 3,2% |
| Nordic large cap 12,3% |
| European mid cap 0,0% |
| European large cap 0,7% |
| Global large cap 25,0% |
Sector allocation (% of investments in Private equity funds and Other Investments)
- Building & construction 8,5%
- Business services 19,8%
- Consumer goods & services 6,7%
- Food & beverage 7,2%
- Healthcare 9,1%
- Industry 34,4%
- Pet care & services 11,9%
- Tech & software 2,3%
The 10 largest underlying portfolio companies represent approximately 52% of the total equity, with the largest underlying portfolio company accounting for approximately 19% of equity.
Group
Net asset value (NAV)
| 31 Mar | 31 Dec | ||
|---|---|---|---|
| KSEK | 2024 | 2023 | 2023 |
| Private equity fund investments | 611 112 | 606 671 | 639 030 |
| Other Investments | 77 855 | 67 297 | 75 001 |
| Other assets and liabilities | -1 213 | 201 | -1 192 |
| Net cash | 235 395 | 289 026 | 209 226 |
| Net asset value (NAV) | 923 149 | 963 195 | 922 065 |
| Net asset value per share | 83,33 | 86,95 | 83,24 |
Changes in Net asset value (NAV)
| Q1 | Jan-Dec | |
|---|---|---|
| KSEK | 2024 | 2023 |
| Net asset value (NAV) at the beginning of the period | 922 065 | 959 252 |
| Value changes on Private eguity fund investments | 1 352 | 3 107 |
| Value changes Other Investments | 2 992 | 10 734 |
| Operating costs | -5 106 | -16 811 |
| Net financial items | 1 846 | 7 333 |
| Income tax | - | -9 |
| Dividend to shareholders | - | -41 541 |
| Net asset value (NAV) at the end of the period | 923 149 | 922 065 |
Changes in Private equity fund investments and Other Investments
| Fund investments | Other investments | ||||
|---|---|---|---|---|---|
| Q1 | Jan-Dec | Q1 | Jan-Dec | ||
| KSEK | 2024 | 2023 | 2024 | 2023 | |
| At the beginning of the period | 639 030 | 687 989 | 75 001 | 60 801 | |
| Investments | 1 066 | 65 953 | - | 21 158 | |
| Repayments | -30 336 | -118 019 | -138 | -17 692 | |
| Net investments | -29 270 | -52 066 | -138 | 3 466 | |
| Changes in value | -9 092 | 10 407 | 263 | 11 595 | |
| Dividends and interest income | - | - | 138 | 1 277 | |
| Unrealized exchange rate changes | 10 444 | -7 300 | 2 591 | -2 138 | |
| Reported through the income statement | 1 352 | 3 107 | 2 992 | 10 734 | |
| Reported value at the end of the period | 611 112 | 639 030 | 77 855 | 75 001 |
The total change in value reported through the income statement in Q1 for Fund units and Other investments amounts to KSEK 4,334.
Net cash
| 31 Mar | 31 Dec | ||
|---|---|---|---|
| KSEK | 2024 | 2023 | 2023 |
| Cash, bank and short-term investments | 235 395 | 289 026 | 209 226 |
| 235 395 | 289 026 | 209 226 | |
| Net cash per share, Tkr | 21,25 | 26,09 | 18,89 |
21.25 SEK Net cash per share
55.17 SEK Private equity fund investments per share
During the 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
| Q1 | Jan-Dec |
|---|---|
| 2024 | 2023 |
| 209 226 | 211 668 |
| -1 066 | -65 953 |
| 30 336 | 118 019 |
| - | -21 158 |
| 138 | 17 692 |
| -4 507 | -9 501 |
| 1 269 | - |
| - | -41 541 |
| 235 396 | 209 226 |
*Including exchange rate difference in cash and cash equivalents.
Net financial items
| Q1 | Jan-Dec | |
|---|---|---|
| KSEK | 2024 | 2023 |
| Interest income | 1 838 | 7 323 |
| Interest expenses | - | -3 |
| Currency effects | 7 | 13 |
| Net financial items | 1 845 | 7 333 |
Financing
The Group is financed with shareholders' equity. Shareholders' equity amounted to KSEK 923,149 (922,065) at the end of the 12-month period, corresponding to SEK 83.33 (83.24) per share and an equity/asset ratio of 99.7 (99.9) percent.
Results and investments
First quarter 2024
Profit/loss after financial items amounted to KSEK 1,084 (2,259). The result is mainly attributable to changes in the value in Private equity funds KSEK 1,352 (507) and Other Investments KSEK 2,992 (7,458). The changes in value include a currency effect of KSEK 13,035 (7,965) that the stronger SEK exchange rate during the quarter entailed.
During the quarter, NAXS invested KSEK 1,066 (6,944) in Private equity funds and repayments from the funds amounted to KSEK 30,336 (88,769). Investments in Other Investments amounted to KSEK 0 (0) and repayments amounted to KSEK 138 (962).
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 172 (184). The profit/loss before and after tax amounted to KSEK -209 (-22).
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 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 March 31, 2024, the NAXS share price was SEK 70.00 and the total shareholders' equity per share was SEK 83.33. The Company's market capitalization was MSEK 775, and the number of shareholders was 5,139.
Financial information
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 19.30 CET on April 25, 2024
This report is an in-house translation of the original report in Swedish.
Stockholm, April 25, 2024
Daniel Gold Margaret (Meg) Eisner Nikolai Jebsen Chairman Director Director
Børge Johansen Synne Syrrist Gösta Lundgren
Director Director Interim 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 Nybrogatan 8 114 34 Stockholm, Sweden Tel: +46 (0)766 40 00 40 E-mail: [email protected]
Financial reports summary
Consolidated Income Statement
| Q1 | ||
|---|---|---|
| Note | 2024 | 2023 |
| 4 344 | 7 966 | |
| -5 106 | -5 707 | |
| -762 | 2 259 | |
| 1 846 | 1 684 | |
| 1 084 | 3 943 | |
| - | - | |
| 1 084 | 3 943 | |
| 1 084 | 3 943 | |
| 0,10 | 0,36 | |
| 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
| 31 Mar | 31 Dec | ||
|---|---|---|---|
| KSEK Note |
2024 | 2023 | 2023 |
| Assets | |||
| Private equity fund investments | 611 112 | 606 671 | 639 030 |
| Other long-term holdings of securities | 77 855 | 67 297 | 75 001 |
| Total non-current assets | 688 967 | 673 968 | 714 031 |
| Other receivables | 2 002 | 1 807 | 503 |
| Cash and cash equivalents | 235 395 | 289 026 | 209 226 |
| Total current assets | 237 397 | 290 833 | 209 729 |
| Total assets | 926 364 | 964 801 | 923 760 |
| 923 149 | 963 195 | 922 065 | |
| Equity Current liabilities |
3 215 | 1 606 | 1 695 |
| Total equity and liabilities | 926 364 | 964 801 | 923 760 |
Consolidated Statement of Changes in Equity
| 31 Mar | 31 Dec | ||
|---|---|---|---|
| KSEK | 2024 | 2023 | 2023 |
| Equity at the beginning or the year | 922 065 | 959 252 | 959 252 |
| Dividend | - | - | -41 541 |
| Total comprehensive income for the period | 1 084 | 3 943 | 4 354 |
| Shareholder's equity at the end of the period | 923 149 | 963 195 | 922 065 |
Consolidated Statement of cash flows analysis
| Q1 | ||
|---|---|---|
| KSEK | 2024 | 2023 |
| Profit/loss after financial items | 1 084 | 3 943 |
| Adjustment for non-cash items, etc. | -5 592 | -9 218 |
| Income tax paid | - | - |
| Cash flow from operating activities before changes in working capital | -4 508 | -5 275 |
| Cash flow changes in working capital | 1 262 | -152 |
| Cash flow from operating activities | -3 246 | -5 427 |
| Private equity fund investments | -1 066 | -6 944 |
| Distributions fromf Private equity fund investments | 30 336 | 88 769 |
| Distributions from Other long-term holdings of securities | 138 | 962 |
| Cash flow from investment activities | 29 408 | 82 787 |
| Cash flow during the period | 26 162 | 77 360 |
| Cash and cash equivalents, beginning of the period * | 209 226 | 211 668 |
| Exchange-rate differences in cash and cash equivalents | 7 | -2 |
| Cash and cash equivalents at the end of the period | 235 395 | 289 026 |
* Including short-term investments
Parent Company Income Statement
| Q1 | |||
|---|---|---|---|
| KSEK | 2024 | 2023 | |
| Net income | 172 | 184 | |
| Operating costs | -1 367 | -1 384 | |
| Operating profit/loss | -1 195 | -1 200 | |
| Net financial items | 986 | 1 178 | |
| Profit /loss after financial items | -209 | -22 | |
| Income taxes | - | - | |
| Net profit/loss for the period | -209 | -22 | |
Parent Company Statement of Comprehensive Income
| Q1 | ||
|---|---|---|
| KSEK | 2024 | 2023 |
| Net profit/loss for the period | -209 | -22 |
| Other comprehensive income | - | - |
| Total comprehensive income for the period | -209 | -22 |
Parent Company Balance Sheet
| 31 Mar | 31 Dec | ||
|---|---|---|---|
| KSEK | 2024 | 2023 | 2023 |
| Assets | |||
| Shares in subsidiaries | 422 008 | 382 008 | 422 008 |
| Total non-current assets | 422 008 | 382 008 | 422 008 |
| Other receivables | 1 961 | 1 924 | 724 |
| Cash and cash equivalents | 107 511 | 189 001 | 108 916 |
| Total current assets | 109 472 | 190 925 | 109 640 |
| Total assets | 531 480 | 572 933 | 531 648 |
| Equity | 529 912 | 571 413 | 530 121 |
| Current liabilities | 1 568 | 1 520 | 1 527 |
| Total equity and liabilities | 531 480 | 572 933 | 531 648 |
Parent Company Statement of Changes in equity
| 31 Mar | 31 Dec | ||
|---|---|---|---|
| KSEK | 2024 | 2023 | 2023 |
| Equity at the beginning of the year | 530 121 | 571 435 | 571 435 |
| Dividend | - | - | -41 541 |
| Total comprehensive income for the period | -209 | -22 | 227 |
| Shareholder's equity at the end of the period | 529 912 | 571 413 | 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 2022 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, which provides that the IFRS principles shall apply.
Note 2. Operating costs
| Q1 | ||
|---|---|---|
| KSEK | 2024 | 2023 |
| Fee to the investment advisor | -2 162 | -2 311 |
| Carried interest to the investment advisor | -1 460 | -1 953 |
| Personnel expenses | -227 | -224 |
| Other operating costs | -1 257 | -1 219 |
| Total operating costs | -5 106 | -5 707 |
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 2023.
| Group 2024-03-31 | ||||||
|---|---|---|---|---|---|---|
| Fair value via | ||||||
| the profit and | Total carrying | |||||
| Category, KSEK | Amortized cost | loss account | amount | |||
| Financial assets | ||||||
| Private equity fund investments | - | 611 112 | 611 112 | |||
| Other long-term holdings of securities | - | 77 855 | 77 855 | |||
| Other receivables | 1 586 | - | 1 586 | |||
| Cash and cash equivalents | 235 395 | - | 235 395 | |||
| Total financial assets | 236 981 | 688 967 | 925 948 | |||
| Financial liabilities | 3 215 | - | 3 215 | |||
| Total financial liabilities | 3 215 | - | 3 215 |
| Assets, KSEK | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| Financial assets measured at fair value via the income statement | ||||
| Private equity fund investments | - | - | 611 112 | 611 112 |
| Other long-term holdings of securities | 54 258 | - | 23 597 | 77 855 |
| 54 258 | - | 634 709 | 688 967 |
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. 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.
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.
| 31 Mar | 31 Dec | ||
|---|---|---|---|
| Group, KSEK | 2024 | 2023 | 2023 |
| Cash and cash equivalents | 235 395 | 289 026 | 209 226 |
| Net cash | 235 395 | 289 026 | 209 226 |
Total assets
The net of all assets and liabilities that are not included in the net cash.
| 31 Mar | 31 Dec | ||
|---|---|---|---|
| Group, KSEK | 2024 | 2023 | 2023 |
| Equity | 923 149 | 963 195 | 922 065 |
| Net cash | -235 395 | -289 026 | -209 226 |
| Total assets | 687 754 | 674 169 | 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 2024-03-31 | Net asset value, SEK per share |
||
|---|---|---|---|
| Net asset value, KSEK | 923 149 = |
83,33 | |
| Number of shares outstanding | 11 077 585 | ||
| Net asset value, | |||
| Group 2023-03-31 | SEK per share | ||
| Net asset value, KSEK | 963 195 | ||
| Number of shares outstanding | 11 077 585 | 86,95 | |
| 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 |