Kinnevik Ab Class A · OMXSTO:KINV_A
Kinnevik Ab Class A — Q1 2009 Earnings Presentation
14 slides from Kinnevik Ab Class A's earnings presentation, Apr 23, 2009
Slide 1: Presentation of Financial Results Q1 2009
PRESENTATION OF FINANCIAL RESULTS Q1 2009 ”More than 70 years of entrepreneurship under the same principle owners”
Slide 2: Kinnevik's Return
KINNEVIK’S RETURN • 30 years – average annual return 17% • 5 years – average annual return 2 % • 2008 – annual return -56% • Year-to-date* 25% * per 22 April 2
Slide 3: First Quarter Highlights
FIRST QUARTER HIGHLIGHTS • Korsnäs MSEK VALUE OF MAJOR LISTED HOLDINGS 60 000 – stable deliveries in weak market 50 000 • Millicom 40 000 – margin expansion and positive 30 000 free cash-flow 20 000 10 000 • Tele2 0 – focus on own infrastructure paying off 06 06 06 06 07 07 07 07 08 08 08 08 09 20 2
Slide 4: Major Unlisted Holdings: Korsnäs
MAJOR UNLISTED HOLDINGS KORSNÄS KORSNÄS KEY RATIOS Q1 2009 MSEK • Second largest liquid board producer globally 2 000 10,0% • Premium quality producer of folding carton board 1 500 1 000 5,0% Q1 2009 500 • Sales of SEK 1,963m 0 0,0% Q109 Q108 • Operating margin at 6.0% Sales EBIT EBIT-margin • Liqui
Slide 5: Profit and Loss
PROFIT AND LOSS SEK m Q1 2009 Q1 2008 Total revenues 2,093 2,004 Operating profit 124 203 Dividends received and changes in fair value -1,988 -9,341 Net interest expense -77 -140 Profit before tax -1,941 -9,278 Tax -11 -21 Net income -1,952 -9,299 5
Slide 6: Balance Sheet March 2009
BALANCE SHEET 31 MARCH 2008 MAJOR UNLISTED HOLDINGS – NET DEBT TO EBITDA • Stable financial position (mSEK) 9 000 Major Unlisted Holdings - Net Debt to EBITDA (xEBITDA) 10,0 x • Kinnevik’s net debt SEK 8.8bn 8 000 7 000 9,0 x 8,0 x • SEK 5.8bn against Korsnäs 6 000 5 000 7,0 x 6,0 x 4 000 5,0 x – Hi
Slide 7: Kinnevik Acquires Emesco
KINNEVIK ACQUIRES EMESCO Current structure Sapere Aude Jan Stenbeck Hugo Stenbeck Trust Estate Foundation • Emesco is the largest owner in Kinnevik with 35.5% of votes and 9.5% of capital • Emesco is owned by Sapere Aude Trust Emesco (75%), Jan Stenbeck Estate (22%) and Hugo Stenbeck Foundation (3%)
Slide 8: Transaction in Summary
TRANSACTION IN SUMMARY Assets to be acquired and consideration Transaction in summary • Kinnevik to acquire Emesco Emesco assets Consideration • Consideration: – B shares for other Emesco holdings Kinnevik A shares SEK 1,850 m A-shares (1,850m) – A shares for Emesco holding of Kinnevik A shares Tele
Slide 9: Summary Rationale for Kinnevik
SUMMARY RATIONALE FOR KINNEVIK • Further step in simplifying the ownership structure – Concentration of main owners’ holdings to Kinnevik – increased transparency • Aligning the ownership interest between Kinnevik and its major shareholders – Increases Kinnevik’s strategic and financial flexibility
Slide 10: Kinnevik Ownership
KINNEVIK OWNERSHIP Pre transaction Post transaction Sapere Aude Jan Stenbeck Hugo Stenbeck Sapere Aude Jan Stenbeck Hugo Stenbeck Trust Estate Foundation Trust Estate Foundation 75.4% 21.7% 2.9% 12.1% capital 6.1% capital 0.8% capital Emesco 31.0% votes 17.6% votes 2.3% votes 0.9% capital 9.5% capit
Slide 11: Ownership in Key Holdings
OWNERSHIP IN KEY HOLDINGS* Pre transaction Post transaction A-shares to be Capital (%) Votes (%) Value (MSEK) % of GAV Capital (%) Votes (%) Value (MSEK) % of GAV reclassified into B-shares in order to keep 28.5% 45.6% 9,658 28% 30.8% 55.8% 10,429 29% voting power at 48% 15.1% 47.8% 1,694 5% 20.5% 6
Slide 12: Valuation of Kinnevik and Emesco
VALUATION OF KINNEVIK AND EMESCO Kinnevik NAV Value of Emesco holdings Capital Votes Value Capital Votes Value Major unlisted holdings Korsnäs Industri och Skog 100.0 100.0 7,521 Tele2 2.3 10.2 771 Bergvik Skog 5.0 5.0 455 MTG 5.4 16.6 609 Net debt -5,831 Metro 2.5 3.3 15 Total 2,145 Transcom 5.1 10
Slide 13: Transaction Agreement
TRANSACTION AGREEMENT • Transaction agreement between Kinnevik and the owners of Emesco was signed on April 23, 2009 – Kinnevik acquire all the shares in Emesco • Contains mutual warranties, covenants and limitation of liabilities in respect of inter alia corporate, financial and business matters •
Slide 14: Preliminary Time Table
PRELIMINARY TIME TABLE • Kinnevik AGM/EGM May 11 • Expected closing of transaction May 12 14