Annual Report 2019

Throughout 2018, Summa Equity has focused on building the organization, while inducting four new companies into our portfolio and raising our second fund. Fund II closed February 2019 oversubscribed at SEK 6.5bn. This brings our aggregated total to above SEK 14bn. 2018 also saw our first portfolio-wide Environmental, Social, and Governance (ESG) assessment. We subsequently released our first portfolio report, presenting the first iteration of our Sustainable Development Goals (SDG) reporting framework.

report-2018

Annual Report 2019

Throughout 2018, Summa Equity has focused on building the organization, while inducting four new companies into our portfolio and raising our second fund. Fund II closed February 2019 oversubscribed at SEK 6.5bn. This brings our aggregated total to above SEK 14bn. 2018 also saw our first portfolio-wide Environmental, Social, and Governance (ESG) assessment. We subsequently released our first portfolio report, presenting the first iteration of our Sustainable Development Goals (SDG) reporting framework.

Letter from the Managing Partner

Summa Equity is developing fast, and it is encouraging to see  increased momentum among companies and investors to  join us in solving the challenges that the world is facing. We  just closed our Fund II with SEK 6.5 billion (c. EUR 610 million)  to invest to solve global challenges. Although it has only been  three years after the inception of the firm, and two years  since we closed Fund I with commitments of SEK 4.7 billion (c. EUR 440 million), there has been a significant development  in the investment community. It recognizes that companies  that incorporate solutions to ESG challenges, is no longer just a way to minimize risk, but is increasingly seen as a tool  to create value. Companies will show stronger growth and  returns. In short, these companies will be more future-proof.

In today’s business environment there is an increasing  correlation between positive outcomes for society and  business success, and a higher awareness of the correlation  between negative outcomes for society and the lack of business resilience.

This is changing the fundamentals of Private Equity.  Purpose, stakeholders and creating positive externalities  are increasingly fundamental to value creation and future-  proofing our companies, and are key to Summa’s approach  as owners. We have termed our approach Private Equity 4.0 (as described in the Spring 2019 Issue on Sustainable Finance in the Journal of Applied Corporate Finance). Private Equity 4.0 will improve returns and lower risks. We have seen first-  hand over the last year that this approach has given Summa  an advantage in attracting capital, talent, and unique and  proprietary deal flow.

Amazing business opportunities lie in solving the challenges  we face as a global community. The Business and Sustainable  Development Commission estimates that sustainable  business models could open economic opportunities worth  up to USD 12 trillion. We are proud of the Summa portfolio  companies that are all contributing to achieving the SDGs  and thereby creating long-term sustainable businesses.

 

 

 

Reynir

Portfolio Contribution

The Summa companies have jointly contributed to reducing greenhouse gas emission of over 549 kT, largely driven by  Sortera’s and Norsk Gjenvinning’s waste recycling. Alongside  Egain’s energy reduction, this corresponds to a net of more than 225,000 barrels of oil saved, when adjusted  for our portfolio emissions. From 2019, our contribution  to Basecamp Explorer in Kenya will serve to offset further emissions through reforestation. Using EcoOnline’s product, more than 270,000 people working with chemicals have a safer work environment and over 290 million people have been tested for severe conditions with high-precision  Antibodies from HyTest. These are just a few examples of all  the companies within the Summa portfolio that contribute to 13 of the 17 SGDs.

kT
Amount of reduced greenhouse gas emission by summa companies

Portfolio Contribution

The Summa companies have jointly contributed to reducing greenhouse gas emission of over 549 kT, largely driven by  Sortera’s and Norsk Gjenvinning’s waste recycling. Alongside  Egain’s energy reduction, this corresponds to a net of more than 225,000 barrels of oil saved, when adjusted  for our portfolio emissions. From 2019, our contribution  to Basecamp Explorer in Kenya will serve to offset further emissions through reforestation. Using EcoOnline’s product, more than 270,000 people working with chemicals have a safer work environment and over 290 million people have been tested for severe conditions with high-precision  Antibodies from HyTest. These are just a few examples of all  the companies within the Summa portfolio that contribute to 13 of the 17 SGDs.

kT
Amount of reduced greenhouse gas emission by summa companies

Portfolio Financials

In addition to the challenges being solved through our  portfolio companies, we are naturally pleased to see the  revenues increasing by 22%, fueling further value creation  among our companies. Our portfolio SDG KPIs also show  strong progress, providing further evidence of the positive  correlation between value creation and SDG  improvements.

Our continued success will not only be dependent on the  deals we do, but also on our approach to creating value,  which we call our Via Summa framework. We are well under  way in developing this methodology and the network of  people who contribute to our ownership approach. This is  a step-by-step transformation. So while we still have some  way to go to achieve best practice in everything we do, we  are receiving very positive feedback from people in our  portfolio companies on our SDG-aligned approach. In 2019,  we  are continuing the journey of enhancing Via  Summa and our efforts to make Summa an ecosystem of purpose driven  companies that deliver outstanding impact and returns,  where we as owners help accelerate this performance.

When reflecting on Summa, Robert Frost’s poem, “The Road  Not Taken,” comes to mind. Summa has started to walk a  road not travelled, and we are convinced that it is the right  road. We are here to deliver the best risk-adjusted returns,  substantial contributions to the SDGs, while showing the way  for other companies and investors to join.

Portfolio Revenue

Million SEK
2018
+22%
9,634
2017
7,889
2016
6,356
SDG 15

Revenue by Theme (SEKm)

RE: Resource Efficiency, CD: Changing Demographics, TB: Tech-enebled business
RE
8,036
CD
1,152
TB
449

Portfolio Financials

In addition to the challenges being solved through our  portfolio companies, we are naturally pleased to see the  revenues increasing by 22%, fueling further value creation  among our companies. Our portfolio SDG KPIs also show  strong progress, providing further evidence of the positive  correlation between value creation and SDG  improvements.

Our continued success will not only be dependent on the  deals we do, but also on our approach to creating value,  which we call our Via Summa framework. We are well under  way in developing this methodology and the network of  people who contribute to our ownership approach. This is  a step-by-step transformation. So while we still have some  way to go to achieve best practice in everything we do, we  are receiving very positive feedback from people in our  portfolio companies on our SDG-aligned approach. In 2019,  we  are continuing the journey of enhancing Via  Summa and our efforts to make Summa an ecosystem of purpose driven  companies that deliver outstanding impact and returns,  where we as owners help accelerate this performance.

When reflecting on Summa, Robert Frost’s poem, “The Road  Not Taken,” comes to mind. Summa has started to walk a  road not travelled, and we are convinced that it is the right  road. We are here to deliver the best risk-adjusted returns,  substantial contributions to the SDGs, while showing the way  for other companies and investors to join.

Portfolio Revenue

Million SEK
2018
+22%
9,634
2017
7,889
2016
6,356
SDG 15

Revenue by Theme (SEKm)

RE: Resource Efficiency, CD: Changing Demographics, TB: Tech-enebled business
RE
8,036
CD
1,152
TB
449
idnWorT

"Summa has started to walk a road not travelled, and we are convinced that it is the right road. We are here to deliver the best risk-adjusted returns, substantial contributions to the SDGs, while showing the way for other companies and investors to join."

Reynir Indahl
Managing Partner

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Bundled payment models aim to achieve improved care quality, coordination and efficiency by incentivizing health care providers to focus on the full care cycle instead of single activities. By fixing the price, healthcare providers are required to consider the value and quality achieved across the entire care episode, thereby creating incentives to reduce costs and increase quality of the care provided.

SLLs initiative on spine surgery had positive effects on the cost of care as well as the outcome achieved from treatments. The total volume of surgeries increased by 13%, at constant overall cost. However, cost per episode declined by 9%, and the average cost per surgery fell by 7%. The largest part of surgeries, Lumbar Spinal Stenosis " (covering ~50 % of all operations) saw significant decline in reoperation rates and use of post-operation physiotherapy. This is one example of how Logex Group’s technology enable healthcare systems to deliver better patient outcomes at lower cost.

Bundled payment models aim to achieve improved care quality, coordination and efficiency by incentivizing health care providers to focus on the full care cycle instead of single activities. By fixing the price, healthcare providers are required to consider the value and quality achieved across the entire care episode, thereby creating incentives to reduce costs and increase quality of the care provided.

SLLs initiative on spine surgery had positive effects on the cost of care as well as the outcome achieved from treatments. The total volume of surgeries increased by 13%, at constant overall cost. However, cost per episode declined by 9%, and the average cost per surgery fell by 7%. The largest part of surgeries, Lumbar Spinal Stenosis " (covering ~50 % of all operations) saw significant decline in reoperation rates and use of post-operation physiotherapy. This is one example of how Logex Group’s technology enable healthcare systems to deliver better patient outcomes at lower cost.

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Within the Changing Demographics investment theme we have a few broader sub-themes such as healthcare, education and security, all with clear alignment to one or more of the UN SDGs. Healthcare is by far the largest one as healthcare expenditure typically represents 10%+ of GDP in advanced economies. It is also the sub-theme where Summa has our deepest expertise and current primary focus within the Changing Demographics theme.

Our investment strategy in healthcare is in itself centered around three universal challenges; cost, quality and unmet patient needs, where society’s failure to solve them leads to a development of an unsustainable global healthcare system. With the challenges as a starting point, we look for companies and market niches where solutions are developed that have the potential to move the system in a positive direction, in the Nordics and globally. We refer to this investment strategy as “The Future of Healthcare” where we have defined specific themes that represent solutions to the challenges, to focus our efforts – illustrated in the chart below. These themes cut across products and services. We believe that developing leading expertise along these themes will be key to Summa’s long-term success and ability to support our investments, and therefore we invest significant resources in building that competence base.

Projected industry growth

2020
+4
136
2019
118
SDG 15

Projected industry growth

2020
+4
136
2019
118

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Thought leader and preferred digital partner to the educational sector

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Arthur Swanson

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Lin Education

Thought leader and preferred digital partner to the educational sector

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Learn more

Infobric

Arthur Swanson

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Annual Report 2019

Company details

Year Aquired

Year Aquired

Location

Revenue

Sector

Employees

Investment Themes

Contact

If you want to know more about Annual Report 2019 please contact Annual Report 2019 at:

Website


Test

2018
500

Summa Equity is developing fast, and it is encouraging to see  increased momentum among companies and investors to  join us in solving the challenges that the world is facing. We  just closed our Fund II with SEK 6.5 billion (c. EUR 610 million)  to invest to solve global challenges. Although it has only been  three years after the inception of the firm, and two years  since we closed Fund I with commitments of SEK 4.7 billion (c. EUR 440 million), there has been a significant development  in the investment community. It recognizes that companies  that incorporate solutions to ESG challenges, is no longer just a way to minimize risk, but is increasingly seen as a tool  to create value. Companies will show stronger growth and  returns. In short, these companies will be more future-proof.

In today’s business environment there is an increasing  correlation between positive outcomes for society and  business success, and a higher awareness of the correlation  between negative outcomes for society and the lack of business resilience.

This is changing the fundamentals of Private Equity.  Purpose, stakeholders and creating positive externalities  are increasingly fundamental to value creation and future-  proofing our companies, and are key to Summa’s approach  as owners. We have termed our approach Private Equity 4.0 (as described in the Spring 2019 Issue on Sustainable Finance in the Journal of Applied Corporate Finance). Private Equity 4.0 will improve returns and lower risks. We have seen first-  hand over the last year that this approach has given Summa  an advantage in attracting capital, talent, and unique and  proprietary deal flow.

Amazing business opportunities lie in solving the challenges  we face as a global community. The Business and Sustainable  Development Commission estimates that sustainable  business models could open economic opportunities worth  up to USD 12 trillion. We are proud of the Summa portfolio  companies that are all contributing to achieving the SDGs  and thereby creating long-term sustainable businesses.

kT
Amount of reduced greenhouse gas emission by summa companies

The Summa companies have jointly contributed to reducing greenhouse gas emission of over 549 kT, largely driven by  Sortera’s and Norsk Gjenvinning’s waste recycling. Alongside  Egain’s energy reduction, this corresponds to a net of more than 225,000 barrels of oil saved, when adjusted  for our portfolio emissions. From 2019, our contribution  to Basecamp Explorer in Kenya will serve to offset further emissions through reforestation. Using EcoOnline’s product, more than 270,000 people working with chemicals have a safer work environment and over 290 million people have been tested for severe conditions with high-precision  Antibodies from HyTest. These are just a few examples of all  the companies within the Summa portfolio that contribute to 13 of the 17 SGDs.

%
share of cancers caused by occupational carcinogens
%
share of cancers caused by occupational carcinogens

kT
Amount of reduced greenhouse gas emission by summa companies


SDG Alignment
SDG Wheel
SDG 12
SDG 3
SDG 8
KPI reporting
SDG 8

REVENUE (SEKm)

2020
136
136
2019
118

SAFETY DATA SHEETS

2020
1.3M
2019
1.3M

REGISTERED USERS

2020
+48%
270K
2019
182K