EQT AB (publ) Q1 announcement 2021

STOCKHOLM, April 22, 2021 /PRNewswire/ --

CEO COMMENT - FIRST QUARTER 2021

It was a busy first quarter - EQT teamed up with Exeter, creating a leader in thematic value-add real estate investments, fundraising for EQT IX was materially concluded, EQT Infrastructure V had its first close and we set the target size for the EQT Growth fund. In addition, preparations continued for EQT's potential new strategies and initiatives.

Christian Sinding,
CEO and Managing Partner

HIGHLIGHTS DURING THE FIRST QUARTER 2021

• EQT signed an agreement to acquire Exeter Property Group and the combination was completed, as announced after the reporting period (1 April 2021)
• AUM increased to EUR 58.7bn as of 31 March 2021 (EUR 67.7bn combined with Exeter)
• EQT held its first closing for the EQT Infrastructure V fund and expects to conclude active fundraising e- orts during H1 2021 and the fund to reach its hard cap of EUR 15bn during 2021
• The target size for the EQT Growth fund was set at EUR 2bn, no hard cap has been set to date
• Total investments by the EQT funds in the quarter amounted to EUR 2.8bn
• Investments announced during the quarter include Cerba HealthCare in France (EQT IX), IVC Evidensia in the UK (EQT IX), Epidemic Sound in Sweden (EQT Growth), CYE in Israel (EQT Mid Market Europe) and the launch of a joint venture to deliver grade-A senior care home facilities in Northern Italy (EQT Real Estate II)
• Investment level in key funds as of 31 March 2021, excluding events after the reporting period:
• EQT IX: 40-45% based on EUR 15bn
• EQT Infrastructure V: 20-25% based on EUR 15bn
• Total gross fund exits in the quarter amounted to EUR 3.9bn
• Exits include IVC Evidensia (EQT VII), Desotec (EQT VII), Innovyze (EQT Mid Market US) and Dorner (EQT Mid Market US)
• EQT VII Gross MOIC increased from 2.3x to 2.5x during the quarter, following strong value creation and a series of announced exits. The expected value creation (Gross MOIC) for EQT VII is now characterized as "Above plan"
• EQT Infrastructure III continued to develop "Above plan", and all other key funds in Private Capital and Real Assets remain "On plan", as of 31 March 2021
• EQT announced its membership with FCLTGlobal
• EQT announced the promotions of 12 exceptional individuals to partners and the number of partners who are women now comprises around 10% of the total partner group
• The number of full-time equivalent employees and onsite consultants (FTE+) increased during the period and amounted to 752 on 31 March 2021, of which 692 were FTEs
• Preparations for potential long-hold investment strategies continued during the quarter and EQT has decided that it will seek to receive management fees on net invested capital during the full term of any future funds within these strategies
• EQT AB has granted additional waivers from lock up agreements on EQT AB shares for a limited number of individuals. The additional waived shares represent less than 0.1% of EQT's share capital
• No active partner will receive any net proceeds from any sale of waived shares and any sale process related to waived shares will be coordinated by EQT AB
• In order to further increase its financial flexibility, EQT AB may during 2021 evaluate other long-term financing options alongside the revolving credit facility (RCF) signed in December 2020
• Exeter's 2020 revenue was EUR 112m and EBITDA was EUR 65m. At 31 March 2021 Exeter had EUR 9.0bn in AUM and 233 FTE+

HIGHLIGHTS DURING THE LAST TWELVE MONTHS (COMPARED TO LTM ENDING MARCH 2020)

• Total fund investments of EUR 13.8bn (EUR 10.5bn)
• Total gross fund exits of EUR 7.1bn (EUR 6.7bn)
• Fee-generating AUM of EUR 58.7bn as of 31 March 2021 (EUR 35.9bn) primarily driven by the activation of EQT IX and EQT Infrastructure V
• Number of FTE+ amounted to 752 (688) at the end of the period, of which FTEs amounted to 692 (637)

EVENTS AFTER THE REPORTING PERIOD

• On 1 April 2021, EQT AB Group announced the completion of the combination with Exeter Property Group
• Investment and exit activity after the reporting period includes the partial sale of EQT VII's remaining stake in AutoStore
• Investment level in key funds as of 22 April 2021, were 40-45% in EQT IX and 20-25% in EQT Infrastructure V based on AUM and hard cap, respectively
• EQT IX held final close at its hard cap with EUR 15.6bn of fee-generating AUM

Presentation of EQT AB's Q1 2021 announcement
Financial analysts and media are invited to participate in a conference call, including a presentation at 08:30 CEST.

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: [phone]
UK: [phone]
USA: [phone]

Confirmation Code: 84186112

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, [phone]
Olof Svensson, Head of Shareholder Relations, [phone]
Nina Nornholm, Head of Communications, [phone]
EQT Shareholder Relations, [e-mail]
EQT Press Office, [e-mail], [phone]

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 22 April 2021.

About EQT
EQT is a purpose-driven global investment organization focused on active ownership strategies. With a Nordic heritage and a global mindset, EQT has a track record of almost three decades of delivering consistent and attractive returns across multiple geographies, sectors and strategies. Uniquely, EQT is the only large private markets fi rm in the world with investment strategies covering all phases of a business' development, from start-up to maturity. Including Exeter, EQT today has more than EUR 67 billion in assets under management across 26 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 across Europe, Asia-Pacific and the Americas with more than 975 employees.

More info: www.eqtgroup.com

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EQT AB (publ) Q1 announcement 2021