Why invest in Spotlight Group?

1

Large underlying market –

structural long-term trend where growth companies choose public ownership and listing. There are more than 43,000 companies in Sweden in the SME category1), which indicates continued great market potential. An equally important trend to emphasize is that current companies continue to grow, meaning that their capital needs over time, and thus the transactions that are carried out, have generally become greater. Spotlight Group is correctly positioned to take additional market shares as the market grows.

2

Increasing recurring revenue –

approximately 40 percent of the Group’s revenue is recurring, which provides a good basis for future growth. The Group has had an annual average growth of about 10 percent over the past five years, and the Board sees significant opportunities for continued increased growth in the future through the investments made in 2017 and 2018.

3

Strong business model and market position –

an open platform of stock market-oriented and scalable businesses and services, with strong revenue and development synergies between the various components. The Group’s market position and the expertise of the staff mean that the needs that arise in the market are quickly picked up. In addition, large parts of the Group’s business are subject to an authorization obligation, which creates entry barriers for new players wishing to position themselves.

4

Potential in underlying profitability –

In 2017 and 2018, the Group made several major investments. The investments included, among other things, a change of trading system, IT platform and a major re-profiling of Spotlight Stock Market. Even over the period in which these investments were made, the Group’s underlying profitability has been good and increased continuously. At the same time, the Group is, through the investments, expected to have further strengthened the conditions for increased profitability in combination with economies of scale in the form of, among other things, more and larger transactions that can have a large impact on earnings, as well as increased productification and streamlined processes of various services.

5

Good opportunities for attractive dividends –

the Group has a stable financial profile and intends to distribute 50 percent of future earnings.

6

Strong and long-term owners and experienced staff –

The Group’s ownership circle today consists of a number of prominent Swedish investors. The Board, management and staff within the Group have broad, long-term and relevant experience in both business and service development as well as regulatory issues. All of the above parties have entered into lock up regarding 100 percent of their holdings for 12 months from the date of listing. Approximately 75 percent of the shares in the Company are thus covered by lock-up agreements.


1) Statistics Sweden’s Business Register