NAXS (NAXS) Q2 2024 earnings summary

Executive summary

• NAXS is a listed investment company focused on Nordic private equity funds, with additional direct and co-investments, offering diversified exposure across large, mid, and small cap segments.

• As of Q2 2024, the portfolio includes 12 active private equity funds managed by 7 managers, covering 66 portfolio companies.

• Net profit for H1 2024 was MSEK -30.9, down from MSEK 7.2 year-over-year; Q2 net profit was MSEK -31.9 compared to MSEK 3.3 in Q2 2023.

• Since inception, underlying funds have acquired 187 companies, with 121 fully exited, generating an average IRR of 18%.

• Private equity activity remained subdued, but two portfolio divestments were signed in Q2.

Financial highlights

• Net asset value (NAV) at Q2 2024 was SEK 844 million, or SEK 76.20 per share, down from SEK 83.24 at year-end 2023.

• NAV per share contracted by 8.6% during Q2 2024; including the FY 2023 dividend, NAV per share decreased by 3.5% in the quarter and 3.6% over 12 months.

• Private equity fund investments and other investments represent 78% of equity (SEK 658 million); net cash is SEK 187 million (22% of equity).

• Share price at quarter-end was SEK 62.0, reflecting a 19% discount to NAV.

• Dividend of SEK 4.25 per share for FY 2023 was paid in April 2024.

Outlook and guidance

• NAXS maintains a policy of distributing 50-75% of profit after tax (excluding unrealized income and costs) as dividends.

• The company continues to focus on diversified exposure to Nordic private equity and selected direct investments.

• Private equity exit market showed some improvement with two exits signed in Q2.