Verisure CEO: Strong International Investors' Support

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00:00I noticed the pricing today, a little below maybe the top end of the range that you put this business to market at.

00:08What does success look like today for you?

00:13Actually, success for us is really about the long-term growth prospects of the company.

00:18We're excited about the IPO. It's a big day for us.

00:23I mean, for me, it's 11 years plus the CEO. We've been on a journey back to this day to return to public markets.

00:30We always knew that with the scale of the company and the internationalization of the footprint,

00:37that the natural home for the company would be back in public markets. And so we're here.

00:42But it's a waypoint on a journey because very sure it's always been a long-term growth story

00:47because of the penetration of security being so low in the European markets.

00:51Good morning to you, Austin. Very briefly, what has been your one-sentence pitch to investors?

01:01What's the pitch that's gone down best?

01:04Yeah, the penetration of security systems in our footprint is only 4% of homes and small businesses.

01:11And so there's a huge runway of growth ahead.

01:15Austin, are you considering at all widening the investment base after today?

01:19Maybe would you look at the US as well?

01:21Well, I think we've been delighted with the response on this transaction.

01:28Very strong support here in the Swedish market, but also very strong support among international investors.

01:34I think we're going to end up actually with a very balanced investor base between Swedish institutions

01:41and international institutions that are looking at the long-term growth prospects of the company.

01:46Austin, we have a lot of conversations with private equity at the moment about why private equity is struggling to deliver exits.

01:55Why are you able to do what others apparently can't?

02:00Why are you able to deliver an exit for your private equity backers in the way that other firms are struggling to do?

02:06Is there a sort of secret sauce here that you have that others don't?

02:11I think it comes down to the quality of the asset and the length of the track record.

02:15I mean, we've partnered together for more than 11 years.

02:19I mean, over that decade, we've actually tripled the size of the portfolio.

02:23We've quadrupled the revenues.

02:25We've quintupled the profitability.

02:28So it's not a short-term story.

02:29I mean, we're marketing the company on the back of a decade-plus of double-digit recurring revenue growth.

02:35And I think that combination of track record and credibility plus the growth prospects ahead,

02:41that basically makes it a high-quality asset and a lot of investor demand.

02:46Absolutely.

02:47So there's a lot of investor demand.

02:48Can I just come back, therefore, to my first question about what success looks like today?

02:52Would it be desirable to have a big pop in the share price?

02:57Is that what you're looking for here in some ways?

02:59Is that what you think the whole industry, and I'm talking here more about the private equity industry

03:03than maybe the security industry, is looking for here?

03:06A sign that IPOs work, that they deliver upside.

03:10Are you the kind of poster child for that?

03:12Do you need to deliver that for the wider picture, do you think, today?

03:16I think it's really about very sure, not about the wider market.

03:18And it's not about today.

03:19It's about how the company is trading through the rest of the year

03:23and then how the company is trading next year and the years beyond.

03:27I mean, this is a long-term growth story.

03:29You know, we don't focus on words like pop.

03:32What we focus on is basically seven or five years better.

03:35And we think if we do that, the company will continue to grow.

03:38And we think our investors will be happy and they'll stay with us for a long time.

03:43Yes, I'm picking up on Guy's question, Austin.

03:45I mean, the private equity industry might be watching this very closely, as he suggests.

03:48But actually, the buyout firm that I think is your majority owner,

03:51Hellman & Friedman, is not taking the opportunity to sell.

03:55Can you tell us why is that?

03:56And does that leave an overhang on the stock,

03:59an expectation that at some point they will want to sell?

04:02I think for Hellman & Friedman, it's been a long-term partnership.

04:05I mean, I've been with them for more than a decade.

04:08The reason they're not selling is that they believe

04:10that there's a very strong value creation ahead,

04:13that this penetration opportunity is strong.

04:16Actually, I'm not selling shares at the IPO either.

04:20And it's because of my belief that this penetration opportunity

04:24is something that we can seize.

04:26I mean, one thing that we're proud of is that we're actually taking

04:29two-thirds of the market growth in our footprint.

04:32I mean, very sure is basically the market maker.

04:35And, you know, that portfolio has tripled in a decade,

04:39as I mentioned before.

04:40And yet, when you look at the penetration opportunity that remains,

04:45so much growth ahead.

04:47And so this combination, again, of its track record,

04:49but it's also growth potential, and you put the two things together,

04:53and that builds confidence, actually, in the future value creation.

04:57So, Austin, what are you actively doing to make sure that going public

05:01doesn't change the culture in your company?

05:05Yeah, it's a super question, Lizzie. Thank you.

05:07Well, first of all, we've tried to act like a public company for a long time now.

05:12We knew that one day the home for the company would be back in public markets,

05:16and we've held ourselves, like, really to those standards.

05:21We have a very strong DNA.

05:23We're very focused on serving our customers better,

05:26on bringing differentiated innovation to the marketplace,

05:30on strong category-creating marketing.

05:32I mean, we're going to spend, I think, annualised 300 million euros this year

05:38in demand-creation marketing.

05:40I mean, we spend typically about 7% of our revenue to make the market.

05:46In fact, we operate really like an FMCG company,

05:49although we're in the services business.

05:51That category-creation, that sense of ownership and drive,

05:56that's carried us over the past decade,

05:58and we're going to continue it afterwards.

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