EQT AB (publ) Quarterly Announcement Q1 2020
”The pandemic is impacting every society and every business across the globe, and this calls for responsible and active ownership. EQT’s portfolio companies are also affected, one way or the other, but given our thematic approach, the portfolio remains relatively robust. Furthermore, based on our experience from previous crises, the portfolio companies have prepared for a potential downturn and even though the magnitude of COVID-19 was unpredictable, having contingency plans in place is helping the companies respond faster.
The situation also impacts EQT AB - to which extent depends on timing, scope and when the markets stabilize. Given today’s environment, fundraisings can take longer, exits are less likely and the overall investment activity is currently lower. Revenues are expected to be impacted as carry is dependent on exits and increases in unrealized values.”
Christian Sinding, CEO
Volatile market environment - thematic portfolio relatively stable in Q1
HIGHLIGHTS DURING THE FIRST QUARTER 2020
Total investments by the EQT funds in the quarter amounting to EUR 1.8bn, of which EUR 0.6bn within Credit
- A few thematic investments made in early 2020 including Deutsche Glasfaser in Germany and O2 Power in India by EQT Infrastructure IV
- Total gross fund exits in the quarter amounted to EUR 0.4bn, of which EUR 0.2bn within Credit
- Current focus on developing existing portfolio companies further until market recovery
- EQT IX hard cap set at EUR 15.0bn, fundraising ongoing but expected to take longer due to COVID-19
- Expected value creation (Gross MOIC) remains ”On plan” in key funds in Private Capital and Real Assets, while EQT Infrastructure III, as of March 31, 2020, continued to develop ”Above plan”
- Fund performance in key funds supported by thematic investment strategy - average like-for-like value decrease during the quarter of approximately 5 percent
- VAT ruling announced by the Supreme Administrative Court of Sweden on January 27, 2020. Not expected to have material impact on EQT AB Group’s future results or its financial position
- EQT Infrastructure is exploring alternatives to raise additional capital, including preparations for EQT Infrastructure V
- We opened an office in Sydney to further strengthen the Asia-Pacific footprint
- We initiated a strategic review of business segment Credit, which is ongoing
HIGHLIGHTS DURING THE LAST TWELVE MONTHS (COMPARED TO LTM ENDING MARCH 2019)
Total fund investments of EUR 13.3bn (EUR 8.5bn), of which EUR 2.5bn (EUR 1.2bn) within Credit
- Investment level in key funds as of March 31, 2020: 70-75% in EQT VIII (35-40% as of March 31, 2019) and 70- 75% in EQT Infrastructure IV (5-10% as of March 31, 2019)
- Total gross fund exits of EUR 7.8bn (EUR 5.0bn), of which EUR 1.1bn (EUR 1.0bn) within Credit
- Fee-generating AUM of EUR 40.0bn as of March 31, 2020 (EUR 40.8bn)
- Number of full-time equivalent employees and on-site consultants (FTE plus) amounted to 731 (611) at the end of the period, of which FTEs amounted to 675 (559)
EVENTS AFTER THE REPORTING PERIOD
EQT VIII entered into exclusive negotiations to acquire Schülke, a leading provider of infection prevention solutions. Supporting UN’s SDG #3 Good Health and Well-being
- EQT Infrastructure IV, through a controlled entity, issued a notice with the intention to terminate the acquisition of Metlifecare due to adverse impact on the business from COVID-19
- Per Franzén, Co-Head Private Equity, was elected to the Executive Committee as of April 2020
Presentation of EQT AB’s Q1 2020 announcement
EQT AB’s Q1 2020 announcement will be published on Friday 24 April 2020 at approximately 07:30 CEST.
A telephone conference will be held at 08:30 CEST. The presentation for the telephone conference will be available on www.eqtgroup.com/shareholders/financial-reporting.
At the telephone conference, Christian Sinding, CEO and Managing Partner, Caspar Callerström, COO, and Kim Henriksson, CFO, will present EQT AB’s Q1 announcement, followed by a Q&A session.
To participate, please use the following dial-in details below, at least 10 minutes in advance.
Sweden: +46 856 642 651
UK: +44 3333000804
USA: +1 6319131422
Confirmation Code: 99578002
The telephone conference can be followed live on www.eqtgroup.com/shareholders/financial-reporting and a recording will also be available afterwards.
Information on EQT AB’s financial reporting
The EQT AB Group has a long-term business model founded on a promise to its fund investors to invest capital, drive value creation and create consistent attractive returns over a 5 to 10-year horizon. The Group’s financial model is primarily affected by the size of its fee-generating assets under management, the performance of the EQT funds and its ability to recruit and retain top talent.
The Group operates in a market driven by long-term trends and thus believes quarterly financial statements are less relevant for investors. However, in order to provide the market with relevant and suitable information about the Group's development, EQT will publish quarterly announcements with key operating numbers that are relevant for the business performance (taking Nasdaq's guidance note for preparing interim management statements into consideration). In addition, a half-year report and a year-end report including financial statements and further information relevant for investors will be published. Finally, EQT will also publish an annual report including sustainability reporting.
Nina Nornholm, Head of Communications, +46 70 855 03 56
Pawel Wyszynski, Shareholder Relations Director, +46 72 987 36 44
EQT Press Office, firstname.lastname@example.org, +46 8 506 55 334
EQT Shareholder Relations, email@example.com
This is information that EQT 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 person set out above, at 07:30 CEST on April 24, 2020
EQT is a differentiated global investment organization with a 25-year track-record of consistent investment performance across multiple geographies, sectors and strategies. With strong values and a distinct corporate culture, EQT manages and advises funds and vehicles that invest across the world with the mission to generate attractive returns to the fund investors.
EQT’s talent base and network allow it to pursue a thematic investment strategy and distinctive value creation approach, with the aim of future-proofing the companies which EQT invests in, creating superior returns to EQT’s investors and making a positive impact with everything EQT does.EQT has more than EUR 62 billion in raised capital since inception, currently around EUR 40 billion in assets under management across 19 active funds within three business segments – Private Capital, Real Assets and Credit. EQT is a thought leader within the private markets industry with deep expertise in responsible and long-term ownership, corporate governance, operational excellence, digitalization and sustainability. EQT has offices in 16 countries across Europe, Asia Pacific and North America with more than 700 employees.The EQT AB group comprises EQT AB (publ) and its direct and indirect subsidiaries, which includes general partners and fund managers of EQT funds as well as entities advising EQT funds.
More info: www.eqtgroup.com
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