Slide 1: Presentation of Kinnevik's First Half of 2024
9 July 2024 PRESENTATION OF KINNEVIK’S FIRST HALF OF 2024
Slide 2: Agenda
H1 2024: AGENDA Agenda 1. Key Events of the Quarter Today’s Presenters Tele2 Divestment & Extraordinary Cash Distribution Development in Core Growth Companies NAV Pressure From e-Commerce 2. Financial Update Financial Position Net Asset Value Development Private Company Valuations 3. Our
Slide 3: Key Events of the Quarter
Section 1 KEY EVENTS OF 9 July 2024 H1 2024 THE QUARTER 3
Slide 4: Tele2 divestment and extraordinary cash distribution completed our strategic transformation
H1 2024: KEY EVENTS OF THE QUARTER With the Tele2 divestment and extraordinary cash distribution, we have completed our strategic transformation into a growth-focused investment firm Key Events of the Quarter NAV of SEK 39.3bn or SEK 140 per share, down 5% Q/Q Unlisted portfolio down 7% driven pri
Slide 5: Step #2 of Tele2 divestment and SEK 6.4bn extraordinary cash distribution completed
H1 2024: KEY EVENTS OF THE QUARTER Step #2 of Tele2 divestment and our SEK 6.4bn extraordinary cash distribution completed during Q2, step #3 expected to close during the third quarter Tele2 Divestment Steps & Key Parameters (SEK) Shares Sold Stake Sold Stake Retained Net Proceeds Conditions Step &
Slide 6: Our Core Growth Companies
H1 2024: KEY EVENTS OF THE QUARTER 2024 to date, our core companies have delivered on operational expectations as a group, and now represent almost half of our portfolio value from 2% in Q4 2020 Core Growth Companies Portfolio Concentration Operating Performance 2024 To Date Core Growth Companies Sh
Slide 7: Another quarter of NAV pressure from e-Commerce
H1 2024: KEY EVENTS OF THE QUARTER Another quarter of NAV pressure from e-Commerce leading to low-point in share of portfolio – focus on profitability improvements and capital efficiency NAV Pressure From e-Commerce Three e-commerce investees facing Declining Share of Portfolio Declining Average R
Slide 8: Financial Update
Section 2 9 July 2024 FINANCIAL UPDATE H1 2024 8
Slide 9: SEK 12.8bn net cash position after extraordinary cash distribution
H1 2024: FINANCIAL UPDATE SEK 12.8bn net cash position after 6.4bn extraordinary cash distribution, capital deployment expected to increase towards second half of 2024 Financial Position SEK 1,108m invested in H1 ‘24, primarily Change in Net Cash into core companies Mews (419m), YTD and Pro Forma
Slide 10: NAV down 5% adding back extraordinary cash distribution
H1 2024: FINANCIAL UPDATE NAV down 5% when adding back extraordinary cash distribution, driven by significant multiple contraction in part offset by core company performance Net Asset Value NAV down 4.7% to SEK 39.3bn or 140 per share Growth Portfolio Value Change by Category Q/Q (SEKbn) Net cas
Slide 11: Multiples in private portfolio's peer benchmarks contracted by 11%
H1 2024: FINANCIAL UPDATE Multiples in the private portfolio’s value-weighted peer benchmarks contracted by 11%, while the currency basket was down 1% Q/Q Net Asset Value: Public Comparables & Currencies Q/Q Movements Change in Change in Change % of Private Peer Set Key Investees Currency Multiple S
Slide 12: EV/Gross Profit Multiples
H1 2024: FINANCIAL UPDATE Our Software and Virtual Care companies are growing 2-3x faster than the fastest growing public comparables, while valued almost in line with average EV/GP levels Net Asset Value: Software & Healthcare Technology Gross Profit Multiples Gross Profit Growth and EV/Gross Profi
Slide 13: Our Core Growth Companies
H1 2024: FINANCIAL UPDATE Our core companies have matured coming out of the pandemic, and we expect growth rates to stabilize as they reach the break-even inflection point Core Growth Companies Revenue Growth and EBITDA Margin Since Q4 2021, NTM Actual or Expected Basis 160% 140% 120% Revenue Growth
Slide 14: Fair value of core companies down 5% in Q2
H1 2024: FINANCIAL UPDATE In Q2, fair value of core companies was down 5% on average, pushed downward mainly by significant multiple contraction in Pleo’s public valuation benchmarks Core Growth Companies Key Financial & Valuation Metrics, NTM Basis, Fair Value in SEKm Change in Change in Change in
Slide 15: Largest valuation revisions in Cedar and e-Commerce
H1 2024: FINANCIAL UPDATE Largest percentage valuation revisions in Cedar and e-Commerce, with public market multiple contraction being the key driver of the quarter Full Private Portfolio: Major Valuation Revisions and NAV Categories Key Financial & Valuation Metrics, NTM Basis, Fair Value in SEKm
Slide 16: Our 2024 Priorities
Section 3 9 July 2024 OUR 2024 PRIORITIES H1 2024 16
Slide 17: Entering the next phase with clear short-term priorities
H1 2024: OUR 2024 PRIORITIES In 2024 we entered the next phase of Kinnevik’s soon 90-year young history, with a clear set of short-term priorities ahead of our October Capital Markets Day Entering a New Phase Ramping Up Transition Building Priorities 2018-22 2023 2024 & Onward # of Investees Fluctua
Slide 18: Q&A
Section 4 9 July 2024 Q&A H1 2024 18
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