Conference Call Q2 2020 Announcement 1 6 J ULY 20 20 1
Executing on our strategy 2
Q2 2020 in short • Investments made during the quarter include Schülke in Germany (EQT VIII) and Freepik in Spain (EQT Mid Market Europe). On J uly 8, 2020, EQT VIII portfolio company SUSE acquired Rancher labs • Investment level in key funds as of J Investments uly 1 6, 2020 were 80 - 85% in EQT VIII, 80 - 85% in EQT Infrastructure Capital Exits and exits IV and 5 1 0% in EQT IX invested (Q2 2020) (Q2 2020) • Events after the period end: With the acquisition of IFS, EQT IX was activated and consequently started charging management fees On plan • Resilient valuations during Q2 with partial increase in several key funds Value EQT Infra II & IV On plan creation EQT VI- VIII Above plan • Expectations for long- term value creation remain but will take longer EQT Infra III • EQT IX the fundraising runs according to plan (target fund size of EUR 1 4.75bn and hard cap of EUR 1 5bn), anticipated to be materially concluded during the third quarter Fundraisings, 742 AUM and • EQT Infrastructure V launched and target size announced at EUR 1 2.5bn AUM FTE+ FTE+ • EQT Real Estate II fundraising was materially concluded as of Q2 • An agreement to sell the business segment Credit to Bridgepoint has been signed, as announced on 8, 2020 1 . The transaction is expected to close in the fourth quarter of 2020 J une 1 Paris • - linked fund level bridge Office Other opened in facility for EQT IX of EUR 2.3bn first of this size in the global fund financing markets J une • Successful execution of both the Annual General Meeting and the Annual Investor Meeting through a fully digital solution, leading the way in digitalisation and sustainability Note: 1 ) The Transaction is subject to customary closing conditions, including regulatory, anti- trust and certain fund investor clearances 3
25+ years of track- record and experience over cycles > 740 FTE+ > AUM Dec- 94 Dec- 95 Dec- 96 Dec- 97 Dec- 98 Dec- 99 Dec- 00 Dec- 01 Dec- 02 Dec- 03 Dec- 04 Dec- 05 Dec- 06 Dec- 07 Dec- 08 Dec- 09 Dec- 1 0 Dec- 1 1 Dec- 1 2 Dec- 1 3 Dec- 1 4 Dec- 1 5 Dec- 1 6 Dec- 1 7 Dec- 1 8 Dec- 1 9 J un- 20 Real Assets FTE+ Private Capital Credit 4
COVID- 1 9 update: Impacted but well- positioned Future- proofing - Maximizing a company's relevance for the long term Portfolio Companies → → No change in estimated capital need 1 for portfolio We remain active on the transaction side but overall investment and exit activity is lower companies in key funds → Timing of carry recognition still delayed as it is → Expectations for value creation remain but will likely dependent on exits and/ or increases in unrealized take longer (unchanged vs Q1 ) values → Fundraisings are going according to plan but will → Carefully optimistic of current portfolio performance generally take longer in the current market due to downturn preparations and thematic environment investment strategy Note: 1 ) The expected capital need due to COVID- 1 9, as reported in Q1 2020, was less than 5% of committed capital 5
We are executing on our strategy Expand in APAC Real Estate M&A EQT Growth • • Preparations for growing • A growth area for Private • Selective M&A focus on The strategy is positioned in Real Estate, including: Equity and Infrastructure areas where we can scale between V entures and further Private Equity • Managed to Prime Preparations for EQT APAC • strategy is ongoing • Over time, increased Preparations for EQT New geographies opportunities can arise Growth strategy is ongoing ✓ Credit • Strategic review concluded • An agreement to sell the Credit business segment to Bridgepoint 1 Note: 1 ) The Transaction is subject to customary closing conditions, including regulatory, anti- trust and certain fund investor clearances 6
Key data per Q2 2020 7
Our business model is long- term, simple and scalable predictable cost base Ma Manage nageme ment nt fees fees Carried Carr ied interest interest & & investme investment nt income income 8
Resilient valuations On plan On plan On plan 2.4x 2.3x 2.3x 1 .8x 1 .7x Private 1 .6x 1 .2x Capital 1 .1 x 1 .1 x EQT VI EQT VII EQT VIII On plan Above plan On plan 2.1 x 2.1 x 2.0x 1 .6x 1 .5x 1 .5x Real 1 .1 x 1 .1 x 1 .0x Assets EQT Infrastructure II EQT Infrastructure III EQT Infrastructure IV Gross MOIC Dec- 1 9 Gross MOIC Mar- 20 Gross MOIC J un- 20 Expected Gross MOIC Note: Data for current Gross MOIC reflects only closed investments and realizations. For Private Equity funds (part of segment P - 2.5x. For Infrastructure funds 9 - 2.2x.
Fee generating AUM remained stable (0.1 ) 2.8 (2.7) 40.1 40.1 0.1 AUM +0.1 % development J un 201 9 LTM - J un 2020 J un- 1 9 Gross inflows Step- downs Exits FX and other J un- 20 (0.1 ) 40.1 (0.3) 0.6 40.0 (0.0) AUM development +0.4% Q2 2020 Q2 2020 Mar- 20 Gross inflows Step- downs Exits FX and other J un- 20 1 1 0 0
Carried interest recognition update Timing of carried interest recognition 1 is driven by Status of carried interest recognition • EQT VI and EQT Infrastructure II have recognized revenue from carried interest to date Increases • Status for EQT VII and EQT Infrastructure III as below: Exits in unrealized and/ or values Metrics EQT VII EQT Infrastructure III 1 .7x 1 .6x Gross MOIC (Current) 3 2 0 Number of exits ~ 4.5 ~ 3.5 Years since first investment ~ 1 .7- 1 .8x Usually Gross MOIC a few exits reached years after first investment ~ 4- 6 6 years Note: 1 ) For IFRS purposes; 2) 4 exits including IFS which was announced on J uly 1 4, 2020 1 1 1 1
Number of employees 1 +36 YTD +1 05 742 731 731 706 706 +90 601 51 51 1 1 688 675 645 527 455 Dec- 1 7 Dec- 1 8 Dec- 1 9 Mar- 20 J un- 20 FTE On- site consultants Note: 1 ) FTE+ 1 1 2 2
Credit business segment exit signed • EQT concludes strategic review of Credit business segment with sale to Ability to Bridgepoint leverage EQT USPs Private Equity • The Credit business segment will be reported as discontinued Ventures Infrastructure operations in the half year report due August 20, 2020 Public Value Public Value • The transaction is expected to close in Q4 2020 1 • 43 FTEs transferring as a part of Credit and another 4 FTEs is expected Real Estate Real Estate to transfer from central functions • defined growth strategy Credit Ability to impact Note: 1 ) The Transaction is subject to customary closing conditions, including regulatory, anti- trust and certain fund investor clearances 1 1 3 3
Credit business segment's contribution to EQT financials 201 9 Q2 2020 Adj. EBITDA 1 FTE+ 2 FTE+ 2 AUM Revenue Adj. EBITDA AUM EURbn EURbn EURm margin # of people EURbn # of people EQT AB AB 39.9 606 275 45% 706 40.1 742 Cr Credit edit 3.9 36 1 2 34% 41 3.7 43 (Report (R eported) ed) EQT AB AB 36.0 570 570 263 46% 665 665 36.5 699 (Excl. (Ex cl. Cr Credit edit) Cr Credit edit % % of 1 0% 6% 4% n.a. 6% 9% 6% EQT AB AB Note: 1 ) Adjustments mainly related to the IPO and restructuring included in the 201 9 Group accounts. Not adjusted for Credit specific items such as CLO start- up costs; 2) FTE+ defined as full time employees plus on- site consultants 1 1 4 4
Educational: fundraising key milestones and management fees Simplified and for illustrative purposes only Year 1 Year 2 1 Last new investment made in existing fund 1 Mid J anuary Spring 31 - Dec Spring J uly Investment period closed and fees based on net Trigger: Last 1 2 invested capital of closed unrealized investment 2 New investments are ongoing Step down in AUM to 2 net invested capital Successor fund activated (fees based on 3 commitments to date) Existing fund Closed out commitments by year- end the driver Fund activated (based 3 of intra- year revenues (new commitments pay on committed capital) 4 Fundraising Initial close First fee date fees as if committed from first fee date resulting for new fund (no fees) initiated - 4 5 Closings Closings Final close Final close of fund and final catch- up fees from 5 new investors in the fund (from first fee date) New fund Note: 1 ) Remaining commitments to be used primarily for add- on acquisitions and strategic capital injections as well as ongoing expenses; 2) Normally 80- 90% invested 1 1 1 1 5 5 5 5
Financial targets and dividend policy Growth - term growth rate Profitability Adjusted EBITDA margin of 55- 65% Dividend Dividend To generate a steadily increasing annual dividend in absolute euro- denominated terms policy policy Targets should be considered over a fund cycle 1 1 1 1 6 6 6 6
Questions? 1 1 7 7
Thank you 1 1 8 8
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