EQT AB (publ) Year-End Report 2020

Delivering on our strategy in a year of uncertainty

Please note that all figures refer to continued operations, excluding Credit, unless stated otherwise

HIGHLIGHTS FOR JAN-DEC 2020 (JAN-DEC 2019)

• With a resilient portfolio, EQT’s focus on new thematic investment opportunities accelerated as market conditions improved. Total investments by the EQT funds in the period amounted to EUR 12.9bn (EUR 9.8bn) and total gross fund exits amounted to EUR 3.4bn (EUR 7.2bn)
• AUM increased to EUR 52.5bn (EUR 36.0bn), primarily driven by the activation of EQT IX and EQT Infrastructure V with closed out commitments of EUR 14.6bn and EUR 7.6bn, respectively, as of December 31, 2020
• Fundraising for EQT IX and EQT Infrastructure V during H2 2020 progressed well in line with plan
• Number of full-time equivalent employees and on-site consultants (FTE plus) amounted to 710 (665) at the end of the period, of which FTEs were 653 (606)
• Adjusted total revenue amounted to EUR 762m (EUR 570m), corresponding to an increase of 34% compared to 2019. Total revenue (according to IFRS) was EUR 709m (EUR 564m). The increase in revenue was primarily driven by management fees generated from the closed out commitments in EQT IX as well as carried interest generated in EQT VII following strong value creation with Gross MOIC increasing to 2.3x as of December 31, 2020 (1.8x) and exits during H2
• Adjusted EBITDA amounted to EUR 385m (EUR 262m), corresponding to a margin of 51% (46%). EBITDA (according to IFRS) was EUR 340m (EUR 197m), corresponding to a margin of 48% (35%)
• Adjusted net income amounted to EUR 330m (EUR 202m). Net income (according to IFRS) was EUR 283m (EUR 149m)
• Reported basic earnings per share amounted to EUR 0.297 (EUR 0.176). Diluted earnings per share was EUR 0.297 (EUR 0.175)
• The divestment of business segment Credit closed during the fourth quarter. Net income from discontinued operations was EUR 96m (EUR 10m)
• The EQT Growth strategy was announced on October 19 with Microsoft Corporate Vice President Marc Brown joining as Partner and Head. With EQT Growth, EQT will be among the very few private markets firms in the world with investment strategies that address the needs of companies throughout their lifecycle
• In order to increase its financial flexibility, EQT signed a five-year EUR 1.0bn revolving credit facility (RCF). The RCF will incorporate a pricing mechanism linked to ESG-related objectives 

EVENTS AFTER THE REPORTING PERIOD

• Investment level in key funds as of January 26, 2021 were 30-35% in EQT IX and 20-25% in EQT Infrastructure V based on target fund size
• EQT signed an agreement to acquire Exeter Property Group (”Exeter”), executing on EQT’s strategic ambition to grow in Real Estate and specifically in North America

DIVIDEND PROPOSAL

• The Board of Directors proposes a dividend per share of SEK 2.40 (SEK 2.20), to be paid in two installments, SEK 1.20 (SEK 1.10) in June, 2021 and SEK 1.20 (SEK 1.10) in December, 2021

Presentation of EQT AB’s Year-End Report 2020
Financial analysts and media are invited to participate in a conference call, including a presentation at 08:30 CET. The presentation and a video link to follow the conference call live can be found here and a recording will be available afterwards.

To participate by phone, 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: 57773166

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 publishes 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 is published. Finally, EQT also publishes an annual report including sustainability reporting.

Contact
Kim Henriksson, CFO, +46 705 98 96 15
Olof Svensson, Head of Shareholder Relations, +46 72 989 09 15
Nina Nornholm, Head of Communications, +46 70 855 03 56
EQT Shareholder Relations, shareholderrelations@eqtpartners.com
EQT Press Office, press@eqtpartners.com, +46 8 506 55 334

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 07:00 CET on 26 January 2021.                     

About EQT
EQT is a purpose-driven global investment organization with close to three decades of consistent investment performance across multiple geographies, sectors, and strategies. EQT has raised more than EUR 84 billion since inception and had as of December 31, 2020 more than EUR 52 billion in assets under management across 17 active funds within two business segments – Private Capital and Real Assets.

With its roots in the Wallenberg family's entrepreneurial mindset and philosophy of long-term ownership, EQT is guided by a set of strong values and a distinct corporate culture. EQT manages and advises funds and vehicles that invest across the world with the mission to future-proof companies, generate attractive returns and make a positive impact with everything EQT does.

The EQT AB Group comprises EQT AB (publ) and its direct and indirect subsidiaries, which include general partners and fund managers of EQT funds as well as entities advising EQT funds. EQT has offices in 16 countries across Europe, Asia-Pacific and North America with more than 700 employees.

More info: www.eqtgroup.com

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