Slide 1: Presentation of Kinnevik's Q1 2024
18 April 2024 PRESENTATION OF KINNEVIK’S Q1 2024
Slide 2: Agenda
Q1 2024: AGENDA Agenda Today’s Presenters 1. Key Events of the Quarter Tele2 Divestment Capital Structure Review Investee Financing Rounds Mews Pelago 2. Financial Update Financial Position & Net Asset Value Development Core Company Performance Private Company Valuations Georgi Ganev Sam
Slide 3: Key Events of the Quarter
Q1 2024 Section 1 KEY EVENTS OF THE QUARTER
Slide 4: Completing our strategic transformation to a growth-focused investment firm
Q1 2024: KEY EVENTS OF THE QUARTER With the divestment of Tele2, we are completing our strategic transformation to a growth-focused investment firm Key Events in the Quarter NAV of SEK 47.9bn or 170 per share, down 0.5% Q/Q Unlisted portfolio down 5% driven primarily by significant write-down of V
Slide 5: Tele2's value creation instrumental in building the Kinnevik of today
Q1 2024: KEY EVENTS OF THE QUARTER As Sweden’s original challenger business, Tele2’s strong value creation has been instrumental in building the Kinnevik of today Tele2 Divestment Founded by Jan Stenbeck in the early 1980’s, Tele2 has been a pioneer in liberating consumers from state monopolies an
Slide 6: Tele2 transaction completed in three steps
Q1 2024: KEY EVENTS OF THE QUARTER The Tele2 transaction will be completed in three steps subject to Iliad/NJJ receiving necessary regulatory clearances – step 1 of SEK 2.8bn completed in March Tele2 Divestment Steps & Key Parameters (SEK) Shares Sold Stake Sold Stake Retained Net Proceeds Condition
Slide 7: Board intends to propose extraordinary cash dividend of SEK 23 per share
Q1 2024: KEY EVENTS OF THE QUARTER Having concluded its capital structure review, Kinnevik’s Board intends to propose an extraordinary cash dividend of SEK 23 per share Capital Structure Review Conclusions The Board has solicited perspectives from major shareholders Distributions to Shareholders S
Slide 8: We led Mews' USD 110m funding round
Q1 2024: KEY EVENTS OF THE QUARTER We led Mews’ USD 110m funding round as the company continues to win in a legacy dominated industry Kinnevik led the USD 110m funding round with a 41m investment at a 1.2bn valuation 7% premium to our Q4 2023 mark on a per-share basis >100m 5,000 Annualised Custom
Slide 9: Pelago announced its USD 58m funding round
Q1 2024: KEY EVENTS OF THE QUARTER Pelago announced its USD 58m funding round on the back of >280% revenue growth in 2023 USD 58m round led by Atomico with participation from all existing investors as well as new investors Eight Roads and GreyMatter Capital >280% Kinnevik participation amounted to
Slide 10: Financial Update
Q1 2024 Section 2 FINANCIAL UPDATE
Slide 11: SEK 13.9bn pro forma net cash position
Q1 2024: FINANCIAL UPDATE SEK 13.9bn net cash position pro forma Tele2 divestment and extraordinary distribution ensures we stay efficient while strategy is fully funded Financial Position SEK 510m invested, primarily into core Change in Net Cash companies Mews (419m) and Pleo (29m) Q/Q and Pro Fo
Slide 12: NAV virtually flat with Tele2 premium
Q1 2024: FINANCIAL UPDATE NAV was virtually flat with the Tele2 premium, solid development in our core companies and positive FX offsetting WBA’s meaningful write-down of VillageMD Net Asset Value NAV down 0.5% to SEK 47.9bn or 170 per share Portfolio Value Change by Category Q/Q (SEKbn) Net cas
Slide 13: Public comparables and currency movements
Q1 2024: FINANCIAL UPDATE The private portfolio’s value-weighted currency basket was up 5%, and the value-weighted public comparable peer universe traded sideways Net Asset Value: Public Comparables & Currencies Q/Q Movements Change in Change in Change % of Private Peer Set Key Investees Currency Mu
Slide 14: EV/Gross Profit Multiples
Q1 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 15: Core growth companies flat in local currencies on average
Q1 2024: FINANCIAL UPDATE Our core growth companies were flat in local currencies on average, with a rebasing of Cityblock’s valuation multiple weighing on the group’s average development in Q1 Core Growth Companies Key Financial & Valuation Metrics (NTM Basis, Fair Value in SEKm) Change in Change i
Slide 16: Kinnevik's Core Growth Companies
Q1 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% Kinnevik’s Cor
Slide 17: VillageMD and Cedar largest valuation revisions in the quarter
Q1 2024: FINANCIAL UPDATE VillageMD and Cedar were the largest valuation revisions in the quarter, which caused the private portfolio’s fair value to decrease by 5% to SEK 27.3bn Private Company Valuation Changes: Major Revisions and NAV Categories Key Financial & Valuation Metrics (NTM Basis, Fair
Slide 18: Reporting Changes
Q1 2024: FINANCIAL UPDATE We have amended the categorization of our NAV to better reflect our portfolio and investment strategies, and are increasing the level of quarterly information provided Reporting Changes Providing a clear account of our private investments and their performance remains a p
Slide 19: Our 2024 Priorities
Q1 2024 Section 3 OUR 2024 PRIORITIES
Slide 20: Transformation to growth focused investor completed after Tele2 exit
Q1 2024: OUR 2024 PRIORITIES After our Tele2 exit, we will have completed our transformation to a growth focused investor through capital reallocation and SEK 88bn in shareholder distributions... Net Asset Value Turnover Pro Forma Tele2 Divestment and Extraordinary Cash Distribution (SEKbn) 90.6 (74
Slide 21: Entering the next phase of Kinnevik's history
Q1 2024: OUR 2024 PRIORITIES ...and in 2024 we entered the next phase of Kinnevik’s soon 90-year young history Entering a New Phase Ramping Up Transition Building Priorities 2018-22 2023 2024 & Onward # of Investees Fluctuating around From 0 to 30+ 1 in Growth Portfolio current number Increase Portf
Slide 22: Q&A
Q1 2024 Section 4 Q&A
Slide 23: We invest for a reimagined everyday
WE INVEST FOR A REIMAGINED EVERYDAY