Slide 1: Presentation of Kinnevik's Q3 2023
Slide 2: Today's Presenters and Agenda
Q3 2023 Today’s Presenters Georgi Ganev Chief Executive Officer 1 Key Events of the Quarter Samuel Sjöström Chief Financial Officer 2 Doubling Down in Our High-Conviction Businesses Torun Litzén Director Corporate Communications 3 Valuations 4 Tracking Against Our Priorities 5 Q&A
Slide 3: Key Events of the Quarter: Doubling Down in High-Conviction Businesses
KEY EVENTS OF THE QUARTER DOUBLING DOWN IN OUR HIGH-CONVICTION BUSINESSES
Slide 4: Shifting Portfolio Concentration Towards Businesses With High Conviction
WE CONTINUE TO SHIFT THE CONCENTRATION OF OUR PORTFOLIO TOWARDS BUSINESSES IN WHICH WE HAVE HIGH CONVICTION Key Events of The Quarter Q3 2023 NAV of SEK 50.8bn or 180 per share, down 6% in Q3 2023 and 12% over the Net Asset Value last twelve months. Unlisted portfolio down SEK 1.1bn in the quarter t
Slide 5: High Conviction in H2 Green Steel, Pioneer of Green Steel
WE HAVE HIGH CONVICTION IN H2 GREEN STEEL – A TRUE PIONEER THAT IS SET TO BECOME THE FIRST, LARGE PRODUCER OF GREEN STEEL Supporting & Maximizing Impact of High-Conviction Businesses Increasing our total investment to EUR 100m with a commitment of The Global Steel Industry EUR 75m on the back of t
Slide 6: Newest Investment Aira Aims to Reduce CO2 Emissions With Heat Pumps
OUR NEWEST INVESTMENT AIRA AIMS TO REDUCE CO2 EMISSIONS BY ACCELERATING THE ADOPTION OF INTELLIGENT HEAT PUMPS ACROSS EUROPE New Addition to Our Climate Tech Portfolio We invested EUR 31m in clean energy-tech company Aira for a >8% Emissions Generated From Direct Combustion stake By Households % o
Slide 7: 2023 Investments Skewed Towards Follow-Ons in High-Conviction Companies
IN LINE WITH OUR PRIORITIES, OUR 2023 INVESTMENTS ARE SKEWED TOWARDS FOLLOW-ONS IN THE COMPANIES IN WHICH WE HAVE HIGH CONVICTION Capital Reallocation 2023 Expectations SEK 3.8bn in accumulated follow-on investments in 2023 to date, of Type of Follow-On Investment which >80% into high-conviction b
Slide 8: Valuations
VALUATIONS
Slide 9: Multiple Contraction and E-Commerce Challenges Held Back Private Portfolio Value
DOUBLE-DIGIT MULTIPLE CONTRACTION AND CHALLENGES IN CONSUMER E-COMMERCE HELD BACK VALUE ACCRETION IN THE PRIVATE PORTFOLIO Private Company Valuations Drivers & Parameters Underlying valuation reassessment of our unlisted assets of 8% Value Drivers translates into a fair value write-down of SEK 2.3
Slide 10: Core Virtual Care and Software Companies Faced Most Multiple Contraction
OUR CORE VIRTUAL CARE AND SOFTWARE COMPANIES HAVE FACED THE MOST SIGNIFICANT MULTIPLE CONTRACTION, BUT HAVE GROWN INTO OUR VALUATIONS Core High-Growth Virtual Care & Software Key Valuation Revisions & Considerations Our largest and strongest performers in our Illustrative Development Since Q4 ‘21
Slide 11: Two Large Value-Based Care Companies Expected to Reach Break-Even in 2024
OUR TWO LARGE VALUE-BASED CARE COMPANIES HAVE MATURED DURING 2022-23, AND ARE EXPECTED TO REACH BREAK-EVEN IN 2024 Maturing Value-Based Care Key Valuation Revisions & Considerations Value-based care enabler peers down 5% in Illustrative Development Since Q4 ‘21 Q3, traditional care providers down
Slide 12: Key Valuation Revision in Q3 2023 Is Instabee
THE KEY VALUATION REVISION IN Q3 2023 IS INSTABEE, SHARING A PATTERN WITH OTHER CONSUMER-FACING E-COMMERCE INVESTEES SINCE END OF 2021 Challenged Consumer-Facing e-Commerce Key Valuation Revisions & Considerations Swedish e-Commerce volumes down Illustrative Development Since Q4 ‘21 significantly
Slide 13: Net Asset Value Down 6% in Q3 2023; Net Cash SEK 8.1bn
IN TOTAL, NET ASSET VALUE WAS DOWN 6% IN Q3 2023, AND OUR NET CASH POSITION AMOUNTED TO SEK 8.1BN PRO FORMA TELE2 DIVIDENDS Net Asset Value Development in Q3 2023 ● Private Growth, ● Public Growth, ● Tele2, ● Net Cash / (Debt), SEKbn 54.0 (1.1) +0.0 (0.3) (0.8) 50.8 (1.1) 8.8 7.6 12.3 11.5 1.4 1.2 3
Slide 14: Tracking Against Our Priorities
TRACKING AGAINST OUR PRIORITIES
Slide 15: Tracking Against Our 2023 Priorities and Expectations
WE ARE TRACKING AGAINST OUR 2023 PRIORITIES AND EXPECTATIONS OUR 2023 OUR 2023 PRIORITIES EXPECTATIONS Maintain our momentum of Continued disciplined capital allocation SEK 5bn in annual investments Support and maximize the impact of Investments split roughly 50/50 our highest-conviction investments
Slide 16: Q&A
Q&A
Slide 17: We Invest for a Reimagined Everyday