Kinnevik AB Class A · OMXSTO:KINV_A
Kinnevik AB Class A — Q1 2014 Earnings Presentation
15 slides from Kinnevik AB Class A's earnings presentation, May 2014
Slide 1: Presentation of financial results Q1 2014
Presentation of financial results Q1 2014
Slide 2: Highlights first quarter 2014
Highlights first quarter 2014 • Net Asset Value SEK 66.2 bn at the end of March – 238.66 SEK per share • Good progress in mobile companies with growth in mobile services • Strong sales growth and improving margins in E-commerce & Marketplaces segment • MTG showed record audience shares of 60% in Swe
Slide 3: Strong market positions to maintain growth momentum
Strong market positions to maintain growth momentum Highlights Communication 56% • Focus on core sectors and markets E-commerce & 32% Marketplaces • Online 32% of Kinnevik’s asset in line with strategy Entertainment 8% • Emerging markets important focus to drive growth Financial services 4% & Other
Slide 4: Building powerful brands
Building powerful brands Communication E-Commerce & Marketplaces Financial services & Others Entertainment 4
Slide 5: Millicom
Millicom Highlights Geographical distribution of revenues % • Customer base grew by 1.6 million net new mobile Africa customers 17% • Strong growth in Cable supported by launch of new 43% Central America services • Accelerated growth in mobile financial services 40% South America Income statement hi
Slide 6: Tele2
Tele2 Highlights Net Sales distribution between countries (%) • Strong mobile end-user service revenue growth for the Other Group Croatia Kazakhstan 8% 4% 4% • Robust operational performance in Tele2 Sweden Baltics 9% 43% Sweden • Tele2 conducting a strategic review of Tele2 Norway 14% Norway 19% Ne
Slide 7: E-commerce & marketplace companies grow revenues and improve profitability
E-commerce & marketplace companies grow revenues and improve profitability • Growth of 43% to SEK 2 108m • EBIT margin of -13% in the first quarter 2014 • EBIT margin improved by 9pp since year-on-year • Kinnevik’s net proportional share of net cash balance amounted to SEK 4 472m as of 31 March 2014
Slide 8: E-commerce & Marketplaces
E-commerce & Marketplaces E-commerce – emerging markets shoes and fashion General e-Commerce Revenue* (EURm) 2012 2013 Growth Revenue* (EURm) 2012 2013 Growth 37.3 120.3 223% 7.7 53.5 593% 72.3 136.8 89% 14.4 50.4 250% 4.6 36.8 700% 3.1 10.7 244% 8.2 30.0 265% 1.9 21.0 986% 20.1 36.3 81% 1.8 3.8 106
Slide 9: Q1 Developments – Classifieds & Marketplaces
Q1 Developments – Classifieds & Marketplaces Q1 2014 NAV SEKm (% Change YoY) • Avito is the largest online classified site in Russia, a top 10 Internet market globally – The Russian Internet population is expected to grow 1.5x and online retail sales are expected to grow > x2 in five years – Avito i
Slide 10: Q1 Developments – Classifieds & Marketplaces
Q1 Developments – Classifieds & Marketplaces Increased investment in large developing markets with fast growing internet penetration due to attractive long-term potential Visitor funnel Avito1 Quikr Saltside Total population in countries (m) 144 1,243 197 % of global population 2% 17% 3% Internet pe
Slide 11: Online portfolio
Online portfolio Total direct and Change in fair indirect Total direct and value during Investment (SEK m) ownership Invested amount indirect fair value Q4’2013 Zalando 36% 7 916 12 143 7 Avito 32% 434 2 186 -109 Quikr 16% 254 254 - Bigfoot I with portfolio companies 35% 1 567 1 735 -25 Dafiti 27% 4
Slide 12: Valuation of unlisted holdings
Valuation of unlisted holdings Affected by Direct Indirect Fair value Fair value preference SEKm Basis for valuation ownership ownership Direct Indirect structure Zalando Sales multiple: 1.9x 36% - 12 143 - Yes Dafiti, Lamoda, Jabong, Sales multiple: 1.3 - 1.9x Mixed Mixed - - Yes Zalora, The Iconic
Slide 13: MTG
MTG Highlights Distribution of sales between market areas % • Winter Olympics coverage in Sweden drove accelerated revenue growth in segments Free-TV Scandinavia and Pay-TV Nordic Free-TV Scandinavia Pay-TV Nordic 28% • Subscriber intake at Viaplay reached all-time high levels 38% during the first q
Slide 14: Q1 Developments – Financial Services
Q1 Developments – Financial Services Q1 2014 NAV SEKm (% Change YoY) • Emerging market consumer credit specialist focused on the formally employed sector – Retail financial services in Sub-Saharan Africa projected to grow at a compound annual rate of over 15% to 2020 – Bayport has an established fra
Slide 15: Thank you!
Thank you!