Slide 1: Half-year Report 2024
Half-year Report 2024 Webcast presentation 18 July 2024
Slide 2: Well positioned as markets improve
Well positioned as markets improve The webcast will begin shortly
Slide 3: Well positioned as markets improve
Well positioned as markets improve
Slide 4: H1 2024 in brief
H1 2024 in brief Strategic Fundraising Deal activity1 FAUM (EURbn) Investments (EURbn) Exits (EURbn) Final close of EQT X, EQT Future H1 and BPEA EQT Mid-Market Growth 133 126 Total 4 Reconfirmed and refined financial 12 AUM 9 targets at the Capital Markets Day 246bn 4 Preparations for new s
Slide 5: Well positioned as markets improve
Well positioned as markets improve Performance Liquidity Share of current portfolio held for longer than 5 years All key funds performing On ~25% or Above plan 4/4 Key funds that are in 11% realization mode ≥2x returns have top quartile DPI4 across all Exit and liquidity flagship funds1 committee EQ
Slide 6: A scalable and client focused platform
A scalable and client focused platform Client focus Private wealth New strategies EQT platform # fund reporting days 57 days 25 days Q1’22 Target Liquidity forecasting AI-powered DD assistant Warsaw, Poland Tech development hub New products Complementary across strategies strategies building and geo
Slide 7: Everything can always be improved, everywhere, at all times
Everything can always be improved, everywhere, at all times 7
Slide 8: Sharpening our approach to create 'the PE model of the future'
Sharpening our approach to create ‘the PE model of the future’ Stay at the forefront Deep sector Double-down of future-proofing competence and on our main value creation playbook competitive per sector advantage, talent Mobilized within the EQT Governance model Enabling world-class Boards and Manage
Slide 9: Private Wealth – a long-term game
Private Wealth – a long-term game Strengthening the platform … … for existing and future products Build and scale the EQT Nexus New products organization Scale up distributors in existing regions EQRT (Real Estate) Increase brand awareness ~15 ~30-40 Today +1yr Future products Continued education Ex
Slide 10: Successful final close of EQT X, EQT Future and BPEA EQT Mid-Market Growth
Successful final close of EQT X, EQT Future and BPEA EQT Mid-Market Growth Dry powder Key funds EUR ~50bn Other funds Gross EUR 6bn EUR 12bn EUR 1bn EUR 2bn inflows H1’24 H1’24 LTM H1’24 H1’24 LTM Closed out commitments of EUR 16.2bn BPEA EQT EQT EQT X EQT Infra- Highlights BPEA IX EQT Future Mid-Ma
Slide 11: Investment activity continued at a strong pace
Investment activity continued at a strong pace Realization volumes expected to pick up as markets continue to improve Investments1 Exits1 LTM (EURbn) H1/H2 (EURbn) LTM (EURbn) H1/H2 (EURbn) 35 30 22 22 No material fund 20 17 16 18 24 proceeds in recent IPOs 15 14 14 12 6 6 14 12 12 8 8 9 8 7 7 7 4 4
Slide 12: Proactive debt actions in a strong credit market
Proactive debt actions in a strong credit market Debt maturity profiles of European bonds and loans1 Debt actions High yield bonds Leveraged loans 31% of total debt volume Maturity extensions 2024 2025 2026 Beyond 2026 Covenant amendments Global debt maturity profile2 Of which 2027 7% of total debt
Slide 13: Positive, stable fund valuation developments in H1 2024
Positive, stable fund valuation developments in H1 2024 Key funds remain On plan or Above plan New deals enter at 1.0x. Underlying value creation ~5% EQT VII EQT VIII EQT IX EQT X – Above plan – Above plan – On plan – On plan 2.7x 2.6x Private 2.6x 2.5x 2.5x 2.2x 2.3x 2.2x 2.2x 2.2x Capital 1.4x 1.4
Slide 14: Increased fee-related EBITDA margin driven by FAUM, operational efficiency and scaling
Increased fee-related EBITDA margin driven by FAUM, operational efficiency and scaling effects Key financials1 (2019 – LTM H1 2024) Key financials1 (H1 2024 vs. H1 2023) Revenue Revenue (EURm) Infra VI 2,200 (EURm) 2,131 EQT X 1,623 1,536 Infra V 1,019 1,088 EQT IX 762 570 2019 2020 2021 2022 2023 L
Slide 15: Carried interest recognition methods
Carried interest recognition methods Illustrative example Carried interest recognition for a 10-year fund (cumulative) Carried interest based on undiscounted fund valuations (mark-to-market) Same amount of carried 1 Carried interest post valuation buffer (as reported) interest recognized over Cash c
Slide 16: Carried interest is a function of valuations and exits
Carried interest is a function of valuations and exits Carried interest and investment income development 2019 – LTM H1 2024 (EURm) 8 11 156 190 115 50 537 208 152 165 117 32 2019 2020 2021 2022 2023 LTM H1 2024 Carried interest2 Investment income2 Cash carried interest 16 1) Illustrative carried in
Slide 17: Slight increase in FTE+ during H1 2024
Slight increase in FTE+ during H1 2024 Hiring set to continue in strategic growth areas Number of FTE+ Prioritizations Of which BPEA and • Selective hiring within Investment other M&A ~3101 strategic areas, such as the advisory 1,838 1,861 US, APAC, and new 1,790 teams strategies Of which Exeter ~30
Slide 18: Balance sheet, liquidity and credit ratings
Balance sheet, liquidity and credit ratings Net Debt / LTM EBITDA1 0.9x A- (Stable)2 Net Debt / LTM Fee-related EBITDA1 1.0x EUR Cash and cash equivalents 0.8bn A- (Stable)2 EUR Revolving credit facility 1.5bn 18 1) Adjusted figures 2) Long-term issuer rating
Slide 19: Key takeaways
Key takeaways Fundraising market expected to remain challenging until substantial liquidity is returned to clients Fundraisings of EUR +26bn concluded across EQT Private Capital in 2024 Repeatable model for value creation, systematic approach to realizations and best in class client platform EUR ~50
Slide 20: Questions?
~ Questions?
Slide 21: Appendix
Appendix
Slide 22: Increase in FAUM mainly driven by gross inflows in EQT X and EQT Infrastructure VI
Increase in FAUM mainly driven by gross inflows in EQT X and EQT Infrastructure VI 126 133 15 (2) (5) (1) FAUM development H1 2024 LTM Jun-2023 Gross inflows Step-down Exits FX and other Jun-2024 126 133 7 (1) (2) 0 FAUM development H1 2024 Dec-2023 Gross inflows Step-down Exits FX and other Jun-202
Slide 23: Performance is the foundation for future success, and is expected to drive material carried interest
Performance is the foundation for future success, and is expected to drive material carried interest Gross # of Fund 2015 2016 2017 2018 2019 2020 2021 2022 2023 H1’24 MOIC exits1 EQT VII 2.5x 12 ~5 years EQT Infra III 2.7x 8 ~4 years ~3 years EUR ~8.5bn future EQT VIII 2.2x 7 BPEA VII 2.4x
Slide 24: Key financials
Key financials H1 2023-2024 H1 2024 H1 2023 Investments by the EQT funds (EURbn) 11.7 9.4 Gross fund exits (EURbn) 4.1 4.4 Management fees (EURm) 1,047 930 Adjusted carried interest and investment income (EURm) 41 89 Adjusted total revenue (EURm) 1,088 1,019 Adjusted EBITDA (EURm) 609 555 Adjusted E
Slide 25: Income statement
Income statement H1 2024 H1 2023 Total IFRS Total IFRS EURm Adj. items EURm Adj. items adjusted reported adjusted reported1 Management fee 1,047 1,047 Management fee 930 930 Carried interest and investment income 41 143 184 Carried interest and investment income 89 96 185 Total revenue 1,088 143 1,2
Slide 26: Key cash flow and balance sheet items
Key cash flow and balance sheet items Key cash flow items Key balance sheet items EURm H1 2024 H1 20231 EURm H1 2024 H1 20231 Cash and cash equivalents at the start of period 1,114 645 Assets Net cash from / (used in) operating activities -25 100 Total non-current assets 5,624 5,578 Net cash from /