Slide 1: Half-year Report 2023 Webcast presentation
Half-year Report 2023 Webcast presentation 14 July 2023
Slide 2: Executing on fundraising, investments and performance in a challenging environment
Executing on fundraising, investments and performance in a challenging environment The webcast will begin shortly
Slide 3: Executing on fundraising, investments and performance in a challenging environment
Executing on fundraising, investments and performance in a challenging environment
Slide 4: The first half of 2023 in brief
The first half of 2023 in brief Executing on fundraising, investments and performance in a challenging environment Strategic Fundraising Deal activity (EURbn) FAUM (EURbn) Total AUM1 Investments2 Exits2 H1 €224bn Launch of 126 Of which EUR 1bn 4 in BPEA for H1’23 Of which EUR 2bn Integration of in B
Slide 5: Since IPO, EQT has risen to #3 in private equity globally
Since IPO, EQT has risen to #3 in private equity globally … USD 102bn raised for EQT in private equity over the past 5 years PEI PEI USDbn USDbn Ranking Ranking Infra- raised raised 2019 2023 structure 2019 2023 1 83 1 126 6 5 2 64 2 104 $17bn $43bn 3 48 3 102 2.5x 4 47 4 74 Real 3.4x Estate 2019 20
Slide 6: Scaled strategies based on strong returns and distributions
… and scaled strategies based on strong returns and distributions Private Equity Private Equity Infrastructure Real Estate Europe & North America Asia (BPEA) EQT Exeter3 +28% +62% +27% +145% (EUR bn) (USD bn) (EUR bn) (USD bn) 20.0 10.5 20.0 4.9 18.0 4/4 15.6 15.7 6.5 key funds in 10.9 11.2 realizat
Slide 7: Private markets are set for long-term growth
Private markets are set for long-term growth … Private markets expected to quadruple in size by 2040 Public vs. PE-backed companies Actively managed alternative AUM1 # of 2 US PE-backed companies (USDtn) ~2x ~30 10,000 US public companies 8,000 ~2x 6,000 ~15 4,000 ~7 2,000 0 Today 2030 2040 2000 200
Slide 8: But deal activity is cyclical
… but deal activity is cyclical EQT’s investment activity increased to seize opportunities in the current market Global buy-out deal value (USDbn) EQT investment activity (EURbn) EQT standalone 1,250 Tech bubble GFC BPEA standalone -35% 23 22 1,000 17 17 750 16 15 500 250 0 ’95 ’98 ’01 ’04 ’07 ’10 ’
Slide 9: We aim to outgrow the private markets
We aim to outgrow the private markets Long-term growth underpinned by contractually recurring revenues We operate in a growth market Management Diversified Balance sheet Significant With multiple and aim to fees are across regions light and carried interest avenues for exceed this contractually and
Slide 10: What does it take to win?
What does it take to win? Thematic Value creation People Scale Distribution investments toolbox Client relationships Talent Secular growth Digitalization Knowledge trends Distribution Culture Artificial Intelligence Diversification channels Aligned incentives Societal needs Sustainability Resources
Slide 11: The private wealth opportunity
The private wealth opportunity … and strengthening our There is a big market opportunity … … EQT is working on multiple inroads … strategic capabilities Increase share of 2021 Today private wealth in close-ended strategies 1 FTE >50 FTEs 2% Capital Raising Broader semi-liquid strategies Allocation t
Slide 12: Launching EQT Nexus as part of our Private Wealth strategy
Launching EQT Nexus as part of our Private Wealth strategy Enabling easy access to the world of EQT Impact on EQT AB’s financial reporting › EQT Nexus offers access to a range of EQT strategies through › Certain EQT AB balance sheet investments transferred to EQT one single investment Nexus › EQT Ne
Slide 13: The fundraising market continues to be challenging
The fundraising market continues to be challenging On track towards flagship fundraising targets Ongoing fundraises Recent fundraising progress FAUM ✓ More than EUR 10bn of EUR 71bn Private Capital EQT Future EQT X closed out commitments in H1 Private Capital ✓ EQT Exeter Industrial Value Fund VI he
Slide 14: Increased investment activity in H1
Increased investment activity in H1 Investments1 Exits1 (EURbn) (EURbn) H1 H1 24 4 Of which EUR 1bn 19 attributable to BPEA Of which EUR 2bn 17 for H1’23 attributable to BPEA 5 11 for H1’23 11 4 LTM H1 2022 LTM H1 2023 LTM H1 2022 LTM H1 2023 Selected transactions in the past 12 months Selected tran
Slide 15: FAUM in H1 primarily driven by EQT Infrastructure VI and EQT X
FAUM in H1 primarily driven by EQT Infrastructure VI and EQT X Incl. BPEA FAUM EUR 22bn1 (10) 126 (5) (2) FAUM 65 development 77 H1 2023 LTM Jun-22 Gross inflows Step-downs Exits FX and other Jun-23 126 0 (3) 1 113 16 FAUM development H1 2023 Dec-22 Gross inflows Step-downs Exits FX and other Jun-23
Slide 16: Long-term development of EQT's shareholder base
Long-term development of EQT’s shareholder base EQT’s shareholder structure EQT lock-up schedule (shares, million) Post 2021 lock-up revision 150 EQT employees and Partners >95% 2x 56% of fund re-investment increase in EQT AB commitments stock liquidity² completed¹ Free float 26% 100 Sustainability
Slide 17: Fund valuations flat with robust portfolio company performance
Fund valuations flat with robust portfolio company performance EQT VII EQT VIII EQT IX EQT X – Above plan – Above plan – On plan – On plan 2.7x 2.7x 2.6x 2.7x 2.7x Private 2.4x 2.3x 2.3x 2.3x 2.2x Capital EU & NA 1.4x 1.4x 1.3x 1.4x 1.4x 1.0x 1.0x 1.0x 1.1x Private Jun-22 Sep-22 Dec-22 Mar-23 Jun-23
Slide 18: Strong fundraising, business combinations and scaling driving growth and profitability in 2023
Strong fundraising, business combinations and scaling of our platform driving growth and profitability in 2023 Key financials1 2019-2022 H1 financials1 (H1 2023 vs. H1 2022) Revenue Revenue EBITDA (EURm) (EURm) 46% 51% 68% 54% Infra VI EQT X 1,623 56% 54% 1,536 Infra V 208 537 1,019 44% 50% EQT IX 8
Slide 19: Headcount actively managed, yet with selective hiring in strategic growth areas
Headcount actively managed, yet with selective hiring in strategic growth areas Key metrics Number of FTE+ (EURm, Adjusted) H1 2023 H1 2022 Δ Majority of increase in Personnel expenses 338 220 117 Private Wealth 1,790 1,814 Other operating expenses 126 99 27 Of which BPEA and other M&A ~3101 Total o
Slide 20: Key takeaways
Key takeaways Our industry is set to double by 2030, and then double again by 2040 – we aim to outgrow the private markets industry We have risen to top 3 in Private Equity, top 5 in Infrastructure and top 10 in Real Estate We grow with our clients, based on top quartile returns and DPI across funds
Slide 21: Questions?
\\S) Questions?
Slide 22: Appendix
Appendix
Slide 23: Like-for-like comparison of H1'22 and H1'23 figures
Like-for-like comparison of H1’22 and H1’23 figures Illustrative financials EQT H1’22 BPEA H1’22 H1’22 H1’23 (standalone) (standalone) (combined)1 (actual) Management fees 570 190 760 930 (EURm) Carried interest and investment income 163 0 163 89 (EURm) Total revenue 733 191 923 1,019 (EURm) FTE+ 1,
Slide 24: Key financials
Key financials H1 financials (EURm) H1 2023 H1 2022 Investments by the EQT funds (EURbn) 10.6 5.5 Gross fund exits (EURbn) 4.3 4.4 Management fees (EURm) 930 570 Adjusted carried interest and investment income (EURm) 89 163 Adjusted revenue (EURm) 1,019 733 Adjusted EBITDA (EURm) 555 413 Adjusted EB
Slide 25: Income statement
Income statement H1 2023 H1 2022 Total IFRS Total IFRS (EURm) Adj. items (EURm) Adj. items adjusted reported adjusted reported Management fee 930 930 Management fee 570 570 Carried interest and investment income 89 -13 76 Carried interest and investment income 163 163 Total revenue 1,019 -13 1,006 T
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 2023 H1 2022 (EURm) H1 2023 H1 2022 Cash and cash equivalents at the start of period 645 588 Assets Net cash from / (used in) operating activities 256 275 Total non-current assets 6,693 2,891 Net cash from /
Slide 27: EQT's key funds perform on plan
EUR 8.5bn of carried interest to be recognized over time if EQT’s key funds (incl. BPEA) perform “on plan” (EURbn) ✓ EUR 9.4bn of carried interest if current key funds perform “on plan”1 ✓ All current key funds are developing ”above plan” or ”on plan” ✓ EUR 0.9bn of carried interest has been recogni
Slide 28: Significant potential for carried interest
Significant potential for carried interest EQT AB % Implied carried Generated Commitments Current Gross Target Gross Expected Start year of carried interest with target carried interest (€bn) MOIC MOIC Gross MOIC interest MOIC (€bn) yet? EQT VII 2015 6.9 25% 2.7x 2.3x Above plan 0.4 ✓ EQT VIII 2018
Slide 29: EQT Exeter is growing as part of the EQT platform
EQT Exeter is growing as part of the EQT platform Ranking1 (USDbn) Fund size development Dec 2020 H1 2023 Real EQT Exeter US EQT Exeter US Estate 2019 2023 Industrial Value2 Industrial Core-Plus FAUM3 4.9 (EUR) 8bn 22bn 3.0 40 10 2.0 1.3 $3bn $15bn (EUR) Since combination4 Fund V Fund VI Fund III Fu