Kinnevik Ab Class A · OMXSTO:KINV_A
Kinnevik Ab Class A — Linio — Investor Day (May 2014)
23 slides from Kinnevik Ab Class A's investor day presentation, May 22, 2014
Slide 1: Kinnevik Rocket Capital Markets Day
KINNEVIK ROCKET CAPITAL MARKETS DAY BERLIN, MAY 22 2014
Slide 2: Disclaimer
The informa,on contained in this presenta,on is public informa,on only, but it does not necessarily represent all informa,on related to the issues discussed or presented herein, or all views of the company. The informa,on has been researched by the company with due care and all and any evalua,ons or
Slide 3: Linio – the B2C marketplace for Spanish LATAM
LINIO – THE B2C MARKET PLACE FOR SPANISH LATAM Quick highlights – Linio: Targeting the crown jewel of ecommerce • Targeting the general ecommerce space in Spanish speaking Latam with a B2C market place and retail business model • Currently 225m addressable customers across 4 fast growing economies -
Slide 4: Our Vision
OUR VISION To be the biggest and most trusted market place - online as well as offline - for companies to sell and customer buy products in Latin America 4
Slide 5: Targeting the crown jewel of ecommerce
Targeting the crown jewel of ecommerce
Slide 6: Huge fast-growing retail market
HUGE FAST-GROWING RETAIL MARKET RETAIL ANNUAL MARKET SIZE 480 EUR BN RETAIL GROWTH: 6% ANNUAL Source: Goldman Sachs IBC ONLINE RETAIL GROWTH: 29% 6
Slide 7: Linio is addressing the largest untapped ecommerce opportunity in the world
LINIO IS ADDRESSING THE LARGEST UNTAPPED ECOMMERCE OPPORTUNITY IN THE WORLD GDP (USD TN.) DOMINATING B2C 16.2 8.3 5.9 3.4 3.2 7 Source: United Nations, 2012
Slide 8: E-commerce is poised to be a real game-changer in LATAM
E-COMMERCE IS POISED TO BE A REAL GAME-CHANGER IN LATAM Distribution of main department stores and leading electronics offline chain 36% of the Colombian population lives in a city with 1 leading department store 90% of the US population lives 15 minutes away from a Walmart 8
Slide 9: The fundamentals for e-commerce are growing rapidly
THE FUNDAMENTALS FOR E-COMMERCE ARE GROWING RAPIDLY Internet Penetration by Country Online retail market size 2009 2013 % over total population Million USD 75% 3,000 5096 60% 60% 51% 51% 2,250 42% 45% 30% 31% 33% 26% 1,500 30% 670 700 15% 750 139 66 168 82 97 0% -‐ Mexico Colombia Peru Venezuela Me
Slide 10: Clear market leader in all markets
Clear market leader in all markets
Slide 11: Explosive sales growth
EXPLOSIVE SALES GROWTH 206K NET ORDERS Q3 ´12 Q4 ´12 Q1 ´13 Q2 ´13 Q3 ´13 Q4 ´13 11
Slide 12: Driven by continuously growing customer base
DRIVEN BY CONTINOUSLY GROWING CUSTOMER BASE Active email subscribers since December 2012 Unique customers since December 2012 ´000 email subscribers ´000 customers 1,600 400 1,200 300 800 200 400 100 -‐ -‐ Dec-‐12 Feb-‐13 Apr-‐13 Jun-‐13 Aug-‐13 Oct-‐13 Dec-‐13 Dec-‐12 Feb-‐13 Apr-‐13 Ju
Slide 13: Linio has a clear traffic market share leadership in the 4 markets
LINIO HAS A CLEAR TRAFFIC MARKET SHARE LEADERSHIP IN THE 4 MARKETS WHERE WE CURRENTLY OPERATE Pure e-‐commerce players Pure e-‐commerce + Offline Retailers Visits (in Mn), March 2014 1 Mkt share 1 Visits (in Mn), March 2014 1 Mkt share 1 0" 2" 4" 6" 8" 0" 2" 4" 6" 8" 10" Linio" 54%" Linio" 23%" Nets
Slide 14: Linio is quickly becoming a mobile shopping platform
LINIO IS QUICKLY BECOMING A MOBILE SHOPPING PLATFORM Android APP Mobile visit ratio of total visits Percentage of total site visits 25%" 20%" Mobile theme 15%" 10%" IOS APP 5%" 0%" Q2'12" Q4'12" Q2'13" Q4'13" 14
Slide 15: Linio is a true multi-category site
LINIO IS A TRUE MULTI-CATEGORY SITE SHIPPED ITEMS BY CATEGORY DECEMBER 2013 140k items shipped in one month More than 60 categories 15
Slide 16: Marketplace is growing incredibly fast with healthy margins
MARKETPLACE IS GROWING INCREDIBLY FAST WITH HEALTHY MARGINS From <5% of sales in December to ~25% of sales in May Monthly growth rate of 84% (1) Vendor base of 1000+, growing at 62% monthly Average achieved commission north of 12% (1) Average growth rate from June 2013 to April 2014 16
Slide 17: Positioned to win
Positioned to win
Slide 18: Complete regional management structure leads to benefits of scale and functional expertise
COMPLETE REGIONAL MANAGEMENT STRUCTURE LEADS TO BENEFITS OF SCALE AND FUNCTIONAL EXPERTISE NAME TITLE PREVIOUS EXPERIENCE Andreas Mjelde CEO • Consulting • Private Equity • MBA • Norwegian national Luca Ranaldi Chief Commercial Officer • Consulting MD Linio Colombia • Consumer goods • MBA • Italian
Slide 19: Strong and diversified investor portfolio
STRONG AND DIVERSIFIED INVESTOR PORTFOLIO Backing from highly successful sector specialists and investors: 19
Slide 20: Scalable solutions in place to overcome the operational challenges in the region
SCALABLE SOLUTIONS IN PLACE TO OVERCOME THE OPERATIONAL CHALLENGES IN THE REGION Only e-commerce platform with broad Cash On Delivery offering Independently operating 4 large scale warehouses to ensure fast and cost efficient operations Full integration with major logistics carriers in each country
Slide 21: Linio will in the next 6-12 months continue to innovate the B2C model in LATAM
LINIO WILL IN THE NEXT 6-12 MONTHS CONTINUE TO INNOVATE THE B2C MODEL IN LATAM Geographic expansion to 9 new countries to cover a total of > 320 million people Continued expansion of market place offering Express shipping nationwide and innovative same-day delivery in capitals Linio Mas (more) - sub
Slide 22: Several additional attractive business models to build out from current core
SEVERAL ADDITIONAL ATTRACTIVE BUSINESS MODELS TO BUILD OUT FROM CURRENT CORE Operating Model Similar players Date Launched Benefits June ▪ Control supply chain B2C 2012 ▪ Build strong customer reputation and trust June ▪ Expand assortment Marketplace 2013 ▪ Improve economics and reduce working capit
Slide 23: Linio
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