Investment : Kinnevik

Skeppsbron 18 . PO Prov. 9094 . H. 103 13, Gockholm , Sweden www.binnevik se

(Publ) Reg no 556047-9742 Thone +46 8 562 000 00 . Fax + 46 8 20 37 74

YEAR-END RELEASE 2012

Highlights

The Board proposes that the Annual General Meeting decides on a cash dividend of SEK 6.50 per share (5.50), corresponding to an increase of 18%.
The guidance for investments is SEK 2-3bln in 2013 compared to the SEK 7.1bln that Kinnevik invested in 2012. A majority of the investments is expected to be in existing companies.
Zalando, the largest online player in the fashion sector in Europe, reported sales of EUR 1.15bln for 2012 compared to EUR 510m in 2011 and reached break-even for the full year in Germany, Austria and Switzerland. The group reported an operating margin of $-8\%$ for 2012 compared to $-12\%$ in 2011 despite strong sales growth in core markets and continued investments into new markets. The numbers for 2012 are preliminary and unaudited.

Kinnevik's net asset value 2007-2012

Pro forma adjusted for the acquisition of Emesco during Q3 2009. Figures in SEK m.

Financial results for the fourth quarter

The net asset value decreased by 1.7% during the quarter and amounted to SEK 58,769m at the end of December, corresponding to SEK 212 per share.
The Group's total revenue amounted to SEK 530m (97) and the net loss per share was SEK 4.77 (profit of 18.05).
The assessed change in fair value for unlisted asssets (including dividends received) amounted to a profit of SEK 699m of which SEK 486m related to Rocket Internet with portfolio companies and SEK 175m to Avito. Kinnevik received dividends of SEK 680m from Rocket Internet in the quarter.
New investments amounted to SEK 2,646m in the fourth quarter, of which SEK 2,489m in Zalando.
Profit from the sale of Korsnäs, which was finalised on 29 November, amounted to SEK 2.9bln. Net debt for the group was reduced by SEK 8.4bln as a result of the transaction.

Financial results for 2012

The Group's total revenue amounted to SEK 1,591m (330) and the net loss per share was SEK 10.77 (profit of 21.11).
The net asset value decreased by 5% to SEK 58,769m at the end of the year.

The figures in this report refer to the fourth quarter and full year 2012 excluding discontinued operations unless otherwise stated. The figures shown within brackets refer to the comparable periods in 2011.

"2012 was another active year for Kinnevik as we continued the transformation and focused our holdings and our investments to our core sectors. We now have more than 90% of our assets in mobile, online and media with a focus on emerging markets, and I am confident that the exposure to high growth sectors and markets gives us a solid platform to continue to build future value. Kinnevik maintains a strong financial position and the Board proposes a dividend of SEK 6.50, an increase of 18%. Going forward, we foresee lower investments as we focus our efforts on growing our investments into strong and profitable companies" says Mia Brunell Livfors, President and Chief Executive Officer of Kinnevik.

Kinnevik's growth drivers

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Kinnevik's business sectors

The figures shown within brackets refer to the comparable period previous year.

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Total return

The Kinnevik share's average annual total return

Past 30 years 1)	20%
Past 10 years	23%
Past 5 years	1%
Past 12 months	5%

1) Based on the assumption that shareholders have retained their allotment of shares in Tele2, MTG, Transcom and CDON.

Kinnevik's proportional part of revenue and operating result in its holdings

			Change compared to
	Proportional part of			Jan-Dec 2011
Jan-Dec 2012 (SEK m)	revenue	EBIT	revenue	EBIT
Telecom & Services	27 394	4 500	7%	-15%
Online	5 888	-1 362	121%	N/A
Media	4 374	514	-1%	1 115%
Paper & Packaging	4 596	331	5%	-30%
Microfinancing	258	92	-8%	4%
Agriculture and Renewable energy	325	1	90%	N/A
Total sum of Kinnevik's proportional part
of revenue and operating result	42 835	4 076	14%	-27%

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Events during the fourth quarter

Investments within Online, Microfinancing, Agriculture and Renewable Energy totalled SEK 2,646m in the fourth quarter, of which SEK 2,489m in Zalando (see further below) and SEK 132m in a new share issue in Black Earth Farming. This means that Kinnevik in 2012 invested approximately SEK 7.1bln within Online, Microfinancing, Agriculture and Renewable Energy.
In October, Kinnevik acquired an additional 10% of common and preferred equity in Zalando for a total consideration of SEK 2,489m. Sellers include the early stage-investors Holtzbrinck Ventures, Tengelmann and Rocket Internet that all sold a small portion of their stake while holding on to the major part of their shares. After the transaction, Kinnevik's ownership is 35% of which 26% is held directly and 9% indirectly via Rocket Internet. Kinnevik financed the acquisition within existing credit facilities. As part of the transaction, Kinnevik got an option to acquire shares for an additional up to EUR 100m in Zalando, corresponding to 3% of the shares, at the same valuation from the same sellers. The option expires on 30 June 2013 and has not yet been utilised.
In the fourth quarter, Kinnevik received extra dividends of SEK 751m from Millicom (USD 3 per share) and SEK 680m from Rocket Internet. In total, Kinnevik has received dividends of SEK 974m from Rocket Internet during the year, of which SEK 353m relates to proceeds received from sale of Zalando shares to Kinnevik and SEK 621m relates to Groupon. Kinnevik has committed to invest the dividend of SEK 353m relating to proceeds from sale of shares in Zalando as part of the option to acquire further shares in Zalando (see above). At the end of the quarter Kinnevik had no direct or indirect ownership in Groupon.
· Following approval from relevant competition authorities, the transaction to combine Korsnäs and Billerud was closed on 29 November 2012. Kinnevik received approximately SEK 2.7bln in cash consideration as part of the transaction and became the largest owner in the new company BillerudKorsnäs with an ownership stake of 25%, all net after a rights issue in BillerudKorsnäs that was carried out in December 2012. Kinnevik's consolidated net debt decreased by approximately SEK 8.4bln as a result of the transaction, out of which SEK 5.7bln was debt in Korsnäs that was assigned to Billerud and SEK 2.7bln in cash payment.

The European Commission's decision to approve the combination is conditioned upon the divestiture of a paper machine at the production unit in Gävle (PM2). The sales of white kraft and sack paper products manufactured at PM2 amounted to 2% of the new Group's total combined sales volume for the year 2011. In addition, BillerudKorsnäs will for a certain time period following the divestiture offer to supply certain inputs such as pulp, steam and electricity to the paper machine.

In December, Kinnevik raised SEK 1.2bln in the Swedish domestic bond market. The tenure of the bond is 5 years and it is a dual tranche issue with SEK 200m at an annual coupon of 3.25% and SEK 1,000m at 3 months STIBOR + 1.7%.
In the fourth quarter, the Swedish Tax Agency made a decision to demand that Kinnevik pay withholding tax amounting to SEK 702m in relation to Kinnevik's acquisition of Emesco AB in 2009. Kinnevik has appealed the decision and deferred payment of any tax since Kinnevik is resolute that the Tax Agency's new interpretation of the Withholding Tax Act is incorrect. No provision has been made in the accounts for the tax exposure.
In December, the Swedish Administrative Court of Appeal approved Kinnevik's appeal to treat the gain on the sale of the indirectly held shares in Invik in 2007 as tax free. The Administrative Court of Appeal thereby rejected the Swedish Tax Authorities' claim to apply the Tax Evasion Act on the transaction. The gain on the sale amounted to SEK 822m. Kinnevik had not provided for any potential additional tax as a result of the dispute, why the decision had no effect on Kinnevik's financial statements or cash $flow$

Dividend and capital structure

The Board proposes that the Annual General Meeting approves a cash dividend of SEK 6.50 (5.50) per share, which represents an increase of 18%. The total dividend payment to Kinnevik shareholders will then amount to SEK $1.803m$ .

The Boards of Directors in Millicom, Tele2, MTG and BillerudKorsnäs have proposed to the Annual General Meetings in May that dividends be approved according to the following:

Kinnevik's part of dividends proposed to be paid from listed holdings		Amount (SEK m)
Millicom	USD 2.64 per share	6511
Tele _2holdings**

Telecom & Services

Investment (SEK m)	Ownership		Estimated fair value
Millicom	38.0%		21 283
Tele2	30.5%		15 867
Transcom	33.0%		230
Total			37 380
Return Telecom & Services		1 year	5 years

Average yearly internal rate of return (IRR) -11% 2%

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Millicom

	Jan-Dec		Oct-Dec
Key data (USD m)	2012	2011	2012	2011
Revenue	4 814	4 530	1 266	1 177
EBITDA	2 065	2 087	528	536
Operating profit, EBIT	1 104	1 257	266	333
Net profit	504	1 129	68	234
Number of mobile subscribers (million)	47.2	43.1

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Tele2

	Jan-Dec		Oct-Dec
Key data (SEK m)	2012	2011	2012	2011
Revenue	43 726	41 001	11 275	10 852
EBITDA	10 960	11 212	2 672	2 873
Operating profit, EBIT	5 653	7 050	1 524	1 663
Net profit	3 264	4 751	565	1 310
Number of subscribers (million)	38.2	34.2

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Kinnevik's holdings

Fair value as ner 21 December 2012

Online

					THE VAING NO POL OF DOUGHING LOTL
	SEK 7.10 per share	962
MTGcom & Services

Investment (SEK m)	Ownership		Estimated fair value
Millicom	38.0%		21 283
Tele2	30.5%		15 867
Transcom	33.0%		230
Total			37 380
Return Telecom & Services		1 year	5 years

Average yearly internal rate of return (IRR) -11% 2%

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Millicom

	Jan-Dec		Oct-Dec
Key data (USD m)	2012	2011	2012	2011
Revenue	4 814	4 530	1 266	1 177
EBITDA	2 065	2 087	528	536
Operating profit, EBIT	1 104	1 257	266	333
Net profit	504	1 129	68	234
Number of mobile subscribers (million)	47.2	43.1

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Tele2

	Jan-Dec		Oct-Dec
Key data (SEK m)	2012	2011	2012	2011
Revenue	43 726	41 001	11 275	10 852
EBITDA	10 960	11 212	2 672	2 873
Operating profit, EBIT	5 653	7 050	1 524	1 663
Net profit	3 264	4 751	565	1 310
Number of subscribers (million)	38.2	34.2

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Kinnevik's holdings

Fair value as ner 21 December 2012

Online

					THE VAING NO POL OF DOUGHING LOTL
	SEK 10.00 per share	135
BillerudKorsnäss

Investment (SEK m)	Ownership		Estimated fair value
Millicom	38.0%		21 283
Tele2	30.5%		15 867
Transcom	33.0%		230
Total			37 380
Return Telecom & Services		1 year	5 years

Average yearly internal rate of return (IRR) -11% 2%

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Millicom

	Jan-Dec		Oct-Dec
Key data (USD m)	2012	2011	2012	2011
Revenue	4 814	4 530	1 266	1 177
EBITDA	2 065	2 087	528	536
Operating profit, EBIT	1 104	1 257	266	333
Net profit	504	1 129	68	234
Number of mobile subscribers (million)	47.2	43.1

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Tele2

	Jan-Dec		Oct-Dec
Key data (SEK m)	2012	2011	2012	2011
Revenue	43 726	41 001	11 275	10 852
EBITDA	10 960	11 212	2 672	2 873
Operating profit, EBIT	5 653	7 050	1 524	1 663
Net profit	3 264	4 751	565	1 310
Number of subscribers (million)	38.2	34.2

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Kinnevik's holdings

Fair value as ner 21 December 2012

Online


	SEK 2.00 per share	104
Total expected dividends to be received from listed holdings		1852
Of which ordinary dividends
Proposed dividend to Kinnevik's----	--------	----------------------
Millicom	38.0%		21 283
Tele2	30.5%		15 867
Transcom	33.0%		230
Total			37 380
Return Telecom & Services		1 year	5 years

Average yearly internal rate of return (IRR) -11% 2%

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Millicom

	Jan-Dec		Oct-Dec
Key data (USD m)	2012	2011	2012	2011
Revenue	4 814	4 530	1 266	1 177
EBITDA	2 065	2 087	528	536
Operating profit, EBIT	1 104	1 257	266	333
Net profit	504	1 129	68	234
Number of mobile subscribers (million)	47.2	43.1

XBTBZFBSPGJOWFTUNFOUGPS.JMMJDPN5IFDPNQBOZ TUFQQFEVQJUTJOWFTUNFOUJOJOGSBTUSVDUVSFBOEJODPNNFS-

Tele2

	Jan-Dec		Oct-Dec
Key data (SEK m)	2012	2011	2012	2011
Revenue	43 726	41 001	11 275	10 852
EBITDA	10 960	11 212	2 672	2 873
Operating profit, EBIT	5 653	7 050	1 524	1 663
Net profit	3 264	4 751	565	1 310
Number of subscribers (million)	38.2	34.2

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Kinnevik's holdings

Fair value as ner 21 December 2012

Online

					THE VAING NO POL OF DOUGHING LOTL
shareholders	SEK 6.50 per share	1803

^{1) | 30.5% | | 15 867 |

| Transcom | 33.0% | | 230 |

| Total | | | 37 380 |

| Return Telecom & Services | | 1 year | 5 years |}

Average yearly internal rate of return (IRR) -11% 2%

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Millicom

	Jan-Dec		Oct-Dec
Key data (USD m)	2012	2011	2012	2011
Revenue	4 814	4 530	1 266	1 177
EBITDA	2 065	2 087	528	536
Operating profit, EBIT	1 104	1 257	266	333
Net profit	504	1 129	68	234
Number of mobile subscribers (million)	47.2	43.1

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Tele2

	Jan-Dec		Oct-Dec
Key data (SEK m)	2012	2011	2012	2011
Revenue	43 726	41 001	11 275	10 852
EBITDA	10 960	11 212	2 672	2 873
Operating profit, EBIT	5 653	7 050	1 524	1 663
Net profit	3 264	4 751	565	1 310
Number of subscribers (million)	38.2	34.2

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Kinnevik's holdings

Fair value as ner 21 December 2012

Online

					THE VAING NO POL OF DOUGHING LOTL
Based on an exchange rate of 6.52 SEK/USD.

The guidance for investments is SEK 2-3bln in 2013 compared to the SEK 7.1bln that Kinnevik invested in 2012. A majority of the investments is expected to be in existing companies. The parent company leverage is expected to go up to around SEK 6bln during 2013.

Book and fair value of assets

	31 Dec 2012		Book value	Fair value	Fair value	Total return
	Equity interest	Voting interest	2012	2012	2011
SEK million	(%)	(%)	31 Dec	31 Dec	31 Dec	2012
Telecom & Services
Millicom	38.0	38.0	21 283	21 283	26 088	-13%
Tele2	30.5	47.7	15 867	15 867	18 129	-3%
Transcom	33.0	39.7	230	230	189	22%
Total Telecom & Services			37 380	37 380	44 406	-11%
Online
Zalando (directly and indirectly through Rocket)	35	26	8 526	8 526	1 558
Rocket Internet with other portfolio companies 1)			4 776	4 776	5 073
Avito (directly and through Vosvik)	39 2)	22	923	923	336
CDON	25.1	25.1	664	664	629	6%
Other Online investments			172	229	204
Total Online			15 061	15 118	7 800	59%
Media
MTG	20.3	49.8	3 042	3 042	4 436	-29%
Metro	99 3)	99 3)	993	993	277
Metro subordinated debentures, interest bearing			-	-	287
Interest bearing net cash, Metro			187	187	-
Total Media			4 222	4 222	5 000	-26%
Paper & Packaging
BillerudKorsnäs 4) 5)	25.1	25.1	3 161	3 161	10 449
Interest bearing net debt relating to Korsnäs			-	-	-5 212
Total Paper & Packaging			3 161	3 161	5 237	38%
Microfinancing
Bayport	43 3)	43 3)	586	586	405
Seamless 5)	11.8	11.8	65	65	0	185%
Other Microfinancing investments			72	88	41
Total Microfinancing			723	739	446	5%
Agriculture & Renewable energy
Black Earth Farming	24.9	24.9	456	456	427	-36%
Rolnyvik	100	100	184	250	250
Vireo	78	78	77	134	58
Other agriculture investments			4	4	-
Total Agriculture & Renewable energy			721	844	735	-24%
Other interest bearing net debt			-3 008	-3 008	-1 605
Debt, unpaid investments			-110	-110	-490
Other assets and liabilities			423	423	310
Total equity/net asset value			58 573	58 769	61 839
Net asset value per share				212.02	223.10
Closing price, class B share				135.30	133.80	5%

1) For split, please see page 6.

2) After full dilution.

3) After warrants have been utilised.

4) As per December 2011, consensus among analysts covering Kinnevik and including 5% of the shares in Bergvik Skog and 75% of the shares in Latgran Biofuels AB.

5) As per December 2012, including subscribed and paid but not yet received shares.

Kinnevik's holdings

Telecom & Services

Investment (SEK m)	Ownership		Estimated fair value
Millicom	38.0%		21 283
Tele2	30.5%		15 867
Transcom	33.0%		230
Total			37 380
Return Telecom & Services		1 year	5 years

Average yearly internal rate of return (IRR) -11% 2%

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Millicom

	Jan-Dec		Oct-Dec
Key data (USD m)	2012	2011	2012	2011
Revenue	4 814	4 530	1 266	1 177
EBITDA	2 065	2 087	528	536
Operating profit, EBIT	1 104	1 257	266	333
Net profit	504	1 129	68	234
Number of mobile subscribers (million)	47.2	43.1

XBTBZFBSPGJOWFTUNFOUGPS.JMMJDPN5IFDPNQBOZ TUFQQFEVQJUTJOWFTUNFOUJOJOGSBTUSVDUVSFBOEJODPNNFS-

Tele2

	Jan-Dec		Oct-Dec
Key data (SEK m)	2012	2011	2012	2011
Revenue	43 726	41 001	11 275	10 852
EBITDA	10 960	11 212	2 672	2 873
Operating profit, EBIT	5 653	7 050	1 524	1 663
Net profit	3 264	4 751	565	1 310
Number of subscribers (million)	38.2	34.2

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Kinnevik's holdings

Fair value as ner 21 December 2012

Online

					THE VAING NO POL OF DOUGHING LOTL
Investment (SEK m)	Direct equity interest	Indirect equity interest $1$	Total	Accumula- ted invested amount	Direct ownership	Indirectly held ¹	Total
Zalando GmbH	26%	9%	35%	4685	6 2 7 9	2 2 4 7	8526
Bigfoot I (Dafiti, Lamoda, partly Namshi)	30%	9%	39%	1536	1479	74	1 5 5 3
Bigfoot II (The Iconic, Zalora, partly Zando and Jumia)	32%	12%	44%	760	708	5	713
Home24	24%	12%	36%	791	754	18	772
Wimdu	29%	12%	41%	361	345	34	379
BigCommerce (Lazada, Linio, partly Namshi)	12%	17%	29%	289	286	16	302
Other Rocket portfolio companies ²	mixed	mixed	mixed	643	759	298	1 0 5 7
Total Rocket Internet with portfolio companies				9065	10610	2692	13 302
Avito	22%	17%	39%	336	520	403	923
Other portfolio companies	mixed	mixed	mixed	412	229		229
Total unlisted online investments				9813	11 359	3 0 9 5	14 4 54
CDON Group	25,1%		25,1%	$517^{3}$	664		664
Total online investments				10 330	12023	3095	15 118

¹⁾ Held via Rocket Internet GmbH and Vosvik AB (Avito).

²⁾ Invested amount includes net invested amount in Rocket Internet GmbH (negative after dividends received in 2012). Fair value includes cash balance in Rocket Internet GmbH.

3) The value of dividends received from MTG when shares distributed and share purchases made thereafter.

Return Online	1 vear	5 vears
Average yearly internal rate of return (IRR)	59%	38%

The Kinnevik online investments are mainly focused around e-commerce and market places. E-commerce is one of the strongest global growth trends in the world economy, and it is based on a shift in consumer behaviour which is not a short term trend but which we believe represent a permanent change in consumer behaviour. This is confirmed by market statistics in our main markets. In Sweden for example, e-commerce grew by 14% in the first nine months of 2012 whereas traditional off-line retail grew by $0.5%$

Within e-commerce, Kinnevik has focused its investments in the shoes and fashion segment through companies such as Zalando with geographical presence in Europe and companies such as Lamoda, Dafiti, Namshi and Zalora focused on emerging markets. This particular segment of the e-commerce industry is attractive for several reasons; it is a relatively large part of a household budget, it is a sector with high gross margins and the products offered are easy to package and ship - enabling efficient logistics with free deliveries and returns.

In order to be competitive and become a profitable online retailer it is important to build size and scale to be the number one choice as the customer goes online. It is also a key competitive advantage to be fully integrated and to control the entire value chain from website to logistics to check out, payment and shipping in order to control the total customer experience.

Investments and valuation

Kinnevik invested SEK 6,769m within Online during 2012, of which SEK 6,627m in Rocket Internet with portfolio companies and SEK 50m in Avito. Out of the funds invested into Rocket Internet with portfolio companies, SEK 3,658m were invested into Zalando and SEK 1,535m into the emerging market shoes and fashion companies' holding structures Bigfoot I and Bigfoot II.

Kinnevik's unlisted online holdings are valued using the International Private Equity and Venture Capital Valuation Guidelines, whereby a collective assessment is made to establish the valuation method that is most suitable for each individual holding. Firstly, it is considered whether any recent transactions have been made at arm's length in the companies. For new share issues, consideration is taken to if the newly issued shares have better preference to the company's assets than earlier issued shares if the company is being liquidated or sold. For companies where no or few recent arm's length transactions have been performed, a valuation is conducted by applying relevant multiples to the company's historical and forecast key figures, such as sales and profit. In such a comparison consideration is given to potential adjustments due to, for example, difference in

Kinnevik's holdings

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Company	Valuation method
Rocket Internet GmbH	Portfolio companies valued as per below, cash balance and other assets as per Rocket financial statements.
Zalando	Latest transaction value (EUR 2.8 bln for entire company), which as per 31 Dec 2012 is in line with peer group valuation based on sales multiples. The peer group includes, among others, Asos, Amazon and CDON Group.
Bigfoot I, Bigfoot II, Home24, Wimdu, BigCommerce, Avito	Peer group valuation based on historic sales mulitples. Direct and indi rect shareholding valued in accordance with liquidation preferential rights.
Other portfolio companies	Fair value corresponds to cost.

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Proportional part of revenue, EBIT and cash balances in unlisted online holdings

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SEK million	Q1	Q2	Q3	Q4	FY2011	Q1	Q2	Q3	Q4	FY2012
Revenue Q on Q growth	278	379 37%	440 16%	649 48%	1 746	817 26%	1 047 28%	1 195 14%	1 690 41%	4 748
Y on Y growth						194%	176%	172%	160%	172%
EBIT					-364	-232	-325	-437	-316	-1 309
Accum. invested amount (net of dividends received)										9 813
Fair value as per 31 Dec 2012										14 454
Net proportional part of cash balance 31 Dec 2012										2 712

Kinnevik's proportional part of revenue, EBIT and cash balance within its unlisted online holdings

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Kinnevik's holdings

Rocket Internet

Rocket Internet is a company that incubates and develops e-commerce and other consumer-oriented online companies. Kinnevik owns 24.2% of the parent company Rocket Internet GmbH and works closely with the founders of Rocket Internet in order to start up companies and develop them into leading Internet players.

Besides the investment into Rocket Internet, Kinnevik has also invested directly into a number of companies founded by Rocket Internet in the following segments:

E-commerce of shoes and fashion, with Zalando in Europe, Dafiti in Latin America, Lamoda in Russia and CIS, Namshi in Middle East, Zalora in South East Asia, The Iconic in Australia, Zando in South Africa as well as other newly started companies in other emerging markets.
E-commerce of furniture and home décor, with Home24 and Westwing in Europe, Mobly in Brazil and a number of other companies that are active in emerging markets.
E-commerce of general retail, with Kanui and Tricae in Brazil, Lazada in South East Asia, Linio in Latin America and Jumia in Africa.
Marketplaces for brokering short-term housing through the companies Wimdu and Airizu, and place for food ordering through Foodpanda.
· Subscription-based services, with Glossybox offering beauty and style products, and HelloFresh delivering weekly food baskets for home cooking.

Zalando

Zalando started its operations in Germany in 2008 and today operates online shops in the Netherlands, Belgium, France, the United Kingdom, Austria, Switzerland, Italy, Spain, Sweden, Finland, Norway, Denmark and Poland. Zalando has grown rapidly and is today the largest online player in the fashion sector in Europe.

The key drivers for becoming successful within shoes and fashion include product sourcing, logistics and marketing. Zalando has over the past fve years focused on becoming industry leader in all these fields in the online sector in the markets where the company operates.

Zalando has developed strong relationships with most of the leading suppliers in the shoes and fashion industry. The company is today a well-established player in the European market which makes it possible to further improve delivery and payment terms with key suppliers. In addition, Zalando has focused on establishing its in-house design labels.

Convenience is one of the most important factors for customers moving online why free deliveries and returns for customers are a very important part of the customer offering. As part of its business offering, Zalando has a generous return policy resulting in an average return rate of around 50%. This makes it very important to have a cost efficient and best in class logistic set up. Zalando has therefore, as part of the company's strategy, decided to operate most of its logistics in-house. The first warehouse operated by the company was opened in 2011 and a second warehouse built in the city of Erfurt in Germany did successfully start to operate during the second half of 2012. Due to the strong growth, Zalando has started to plan for a third warehouse which will open during 2013.

Zalando reported net sales of EUR 1.15bln in 2012 compared to EUR 510m in 2011. In the most established region including Germany, Switzerland and Austria (DACH), Zalando reached break-even (EBIT) while continuing to grow at high rates. At the same time, Zalando invested into new markets to further strengthen its leading position in Europe. As a result of this strategy, Zalando closed 2012 with an improved overall EBIT margin of -8% of sales $(2011: -12\%)$

In the past year, Zalando has raised capital from DST, JP Morgan and Kinnevik among other investors, and the company is well capitalised to fund its planned future growth.

Dafiti, Lamoda, Namshi (Bigfoot)

Bigfoot is an emerging markets focused holding company for online ventures within shoes and fashion, with the following key ventures:

Dafiti was founded in early 2011 and offers a broad assortment of women and men's fashion online. The company started in Brazil, but has since expanded to Argentina, Chile, Colombia and Mexico, thus targeting one of the largest emerging markets worldwide with a total population of 400 million. Latin America shows strong consumption growth, and Dafiti has established itself as one of the key online retailers in the region.
Lamoda was started in early 2011 with its core offering being shoes and fashion in Russia and the CIS. The region has an Internet population of more than 60 million and the company is growing rapidly.
Namshi is active within shoes and fashion in six markets in the Middle East, namely United Arab Emirates, Saudi Arabia, Bahrain, Kuwait, Oman and Qatar. All markets exhibit high purchase power, high levels of disposable income and high Internet penetration.

The Iconic, Zalora, Zando, Jumia (Bigfoot II)

Bigfoot II is a holding company for mainly fashion and shoes, and owns the following ventures:

The Iconic is an online store offering shoes and fashion in Australia and New Zealand covering a population of around 30 million. The company was founded in late 2011 and has since exhibited rapid growth and already captured a leading position in the region.
Zalora serves eight emerging markets within shoes and fashion in South East Asia, namely Singapore, Malaysia, Indonesia, Thailand, Philippines, Vietnam, Taiwan and Hong Kong.

Kinnevik's holdings

· Jumia is an online retailer of general merchandise active in Nigeria, Egypt and Morocco. The company offers products such as mobile phones, video and audio devices, games and consoles, books, toys and beauty products.
Zando targets the attractive South African market with a population of 50 million, and offers shoes and fashion.

Home₂₄

Home 24 is an online retailer of furniture and home products. The company is active under the Home24 brand in Germany, France and Netherlands, and operates in Brazil under the brand Mobly.

Wimdu

Wimdu, which was founded in early 2011, is a market place for brokering short-term housing. Wimdu is addressing the growing market of rentals of secondary homes, and is active in most parts of the world with over 150,000 available properties. Revenue is derived from commission as intermediary in the rental process.

Lazada, Linio (BigCommerce)

Lazada was founded in early 2012 and is active in offering general merchandise in five of the most attractive markets in South East Asia - Indonesia, Vietnam, Thailand, Philippines and Malaysia.
Linio was founded during the first half of 2012, and currently targets Mexico, Colombia, Peru and Venezuela with general merchandise.

Avito

Avito is the leading online service for classified advertising in Russia. Revenues primarily derive from advertising sales on the website and from value-added services. In the fourth quarter, the company had an average of 4.9 million new listings per month (3.2 million for the corresponding period last year) and 27.3 million (18.3) unique monthly visitors. During 2012 Avito expanded its operations to Morocco and Egypt.

During the second quarter, Avito made a new share issue to existing as well as new owners. Out of a total of USD 75m in new financing, Kinnevik contributed with USD 10m at a pre-money valuation of USD 300m for the entire company. During the fourth quarter, Avito signed an agreement to raise another USD 50m in new capital from a new investor. The transaction is conditional upon approval of relevant authorities and has not yet been closed.

CDON Group

CDON Group is a leading e-commerce company with some of the most well-known and appreciated brands in the Nordic area.

	Jan-Dec		Oct-Dec
Key data (SEK m)	2012	2011	2012	2011
Revenue	4 4 6 2	-3 404	1573	1 316
Operating profit/loss, EBIT	$-174$	129	$-111$	71
Net profit/loss	$-152$	83	$-90$	48

CDON Group's total sales reached new record levels both during the fourth quarter and the full year 2012. The revenue grew by 19% year-on-year in the fourth quarter and by 31% for the full year, which affirms the Group's strong underlying business.

In the fourth quarter Nelly strengthened its market position with a sales growth of 22%. When completing the year-end closure within Nelly, negative non-recurring items of SEK 112m were identified affecting the result in the fourth quarter.

Kinnevik's holdings

Media

Investment (SEK m)	Ownership	Estimated fair value
Modern Times Group MTG	20.3%	3 042
Metro	99%1)	1 180
Total		4 222
1) Fully diluted.

Return Media	1 year	5 years
Average yearly internal rate of return (IRR)	-26%	-11%

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Modern Times Group MTG

	Jan-Dec		Oct-Dec
Key data (SEK m)	2012	2011	2012	2011
Revenue	13 336	13 473	3 620	3 711
Operating profit/loss, EBIT	2 124	-615	476	-2 515
Net profit/loss	1 594	-1 289	378	-2 564

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Metro

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Readership and Advertising Market

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Operations

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	Jan-Dec		Oct-Dec
EUR m	2012	2011	2012	2011
Revenue
Europe	107.2	122.4	26.7	35.6
Emerging Markets	79.8	68.4	23.5	19.9
Head Quarters	6.9	6.1	1.8	2.5
Total	193.9	196.9	52.0	58.0
Operating profit, EBIT
Europe	9.5	16.3	4.0	7.0
Emerging Markets	9.3	11.7	3.8	3.4
Share of Associates Income	1.3	-0.2	0.8	-0.0
Head Quarters	-10.5	-15.3	-2.8	-2.7
Total	9.6	12.5	5.8	7.7

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Kinnevik's holdings

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Paper & Packaging

Investment (SEK m)	Ownership	Invested amount	Estimated fair value
BillerudKorsnäs	25.1%	2 867 1)	3 161

1) Value of shares received at the sale of Korsnäs plus the participation in the new share issue in December 2012.

Return Paper & Packaging	1 year	5 years
Average yearly internal rate of return (IRR)	38%	12%

BillerudKorsnäs

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	Jan-Dec		Oct-Dec
Key data (SEK m)	2012	2011	2012	2011
Revenue	10 427	9 343	3 068	2 086
Operating profit/loss, EBIT	489	978	25	75
Net profit/loss	677	683	361	45

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Microfinancing

Investment (SEK m)	Ownership	Invested amount	Estimated fair value
Bayport	43% 1)	445	586
Seamless	11.8%	35	65
Milvik	58%	18	18
Microvest II	fund participation	45	42
Other		28	28
Total		571	739
1) After warrants have been utilised.
Return Microfinancing		1 year	5 years
Average yearly internal rate of return (IRR)		5%	16%

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Kinnevik's holdings

Agriculture & Renewable energy

Investment (SEK m)	Ownership	Invested amount	Estimated fair value
Black Earth Farming, Russia	24.9%	791	456
Rolnyvik, Poland	100%	174	250
Vireo Energy	78%	135	134
Other		5	4
Total		1 105	844

Return Agriculture & Renewable energy	1 year	5 years
Average yearly internal rate of return (IRR)	-24%	-20%

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Black Earth Farming

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	Jan-Sept	Full Year
Key data (USD m)	2012	2011	2011
Revenue	110.5	39.4	77.6
Operating profit/loss, EBIT	10.6	-14.0	-25.2
Net loss	-2.5	-29.8	-41.7

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Rolnyvik

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Vireo Energy

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Financial overview

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Consolidated earnings for the year

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The Group's cash flow and investments

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The Group's liquidity and financing

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Taxes

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distribution of the class A shares. The Tax Agency's interpretation is in Kinnevik's view contrary to the purpose of the mentioned rule, which is to tax dividends on temporary shareholdings transferred through loans or similar transactions in connection with the date of distribution. In Kinnevik's case, Kinnevik acquired the Emesco shares in September 2009 and continues to hold them as a wholly owned subsidiary of the Group. Kinnevik is of the opinion that the Swedish Tax Agency has chosen to interpret the Withholding Tax Act in a manner that is not compatible with the wording or purpose of the Act, its legislative history or case law, and Kinnevik strongly refutes the Swedish Tax Agency's demands. All of Kinnevik's legal advisors confirm Kinnevik's view on the matter.

Kinnevik has appealed the Tax Agency's decision, and deferred payment of any tax. No provision has been made in the accounts for the tax exposure.

In December, the Swedish Administrative Court of Appeal approved Kinnevik's appeal to treat the gain on the sale of the indirectly held shares in Invik in 2007 as tax free. The Administrative Court of Appeal thereby rejected the Swedish Tax Authorities' claim to apply the Tax Evasion Act on the transaction. The gain on the sale amounted to SEK 822m. Kinnevik had not provided for any potential additional tax as a result of the dispute, why the decision had no effect on Kinnevik's financial statements or cash flow.

Parent Company and other

The administration costs within the Parent Company and the Group's other companies amounted to a net expense of SEK 122m (expense of 111) for the year after invoicing for services performed.

Risk Management

The Group's financing and management of financial risks is centralized within Kinnevik's finance function and is conducted on the basis of a finance policy established by the Board of Directors. The Group's operational risks are primarily evaluated and managed within the particular business area and then reported to the Kinnevik Board.

The Group has established a model for risk management, the aims of which are to identify, control and reduce risks. The identified risks and how they are managed are reported to the Kinnevik Board on a quarterly basis.

Kinnevik is exposed to financial risks mainly in respect of changes in the value of the stock portfolio, changes in market interest rates, exchange rate risks and liquidity and refinancing risks.

The Group is also exposed to political risks since the companies Kinnevik has invested in have a substantial part of their operations in emerging markets such as Latin America, Sub-Saharan Africa and Russia.

For a more detailed description of the Company's risks and risk management, refer to the Board of Directors' report and Note 32 of the 2011 Annual Report.

Accounting principles

The consolidated financial statements are prepared in accordance with the International Financial Reporting Standards (IFRS), as adopted by the EU. This report was prepared in accordance with the Annual Accounts Act and IAS 34, Interim Financial Reporting.

The accounting principles and calculation methods applied in this report are the same as those described in the 2011 Annual Report.

Related party transaction

Related party transactions for the interim period are of the same character and amounts as the transactions described in the 2011 Annual Report.

Kinnevik Annual General Meeting 2013

The Annual General Meeting will be held on 13 May 2013 in Stockholm. Shareholders wishing to have matters considered at the Annual General Meeting should submit their proposals in writing to [email protected] or to The Company Secretary, Investment AB Kinnevik, Box 2094, SE-103 13 Stockholm, Sweden, at least seven weeks before the Annual General Meeting, in order that the proposal may be included in the notice to the meeting. Further details on how and when to register will be published in advance of the Meeting.

Nomination Committee for the 2013 Annual General Meeting

In accordance with the resolution of the 2012 Annual General Meeting, Cristina Stenbeck has convened a Nomination Committee consisting of members representing the largest shareholders in Kinnevik. The Nomination Committee is comprised of Cristina Stenbeck, Max Stenbeck on behalf of Verdere Sàrl, Wilhelm Klingspor on behalf of the Klingspor family, Ramsay Brufer on behalf of Alecta, and Edvard von Horn on behalf of the von Horn family.

Information about the work of the Nomination Committee can be found on Kinnevik's corporate website at www. kinnevik.se.

Financial reports

The Annual Report for 2012 will be released on the company's website on 4 April 2013.

Reporting dates for 2013:

19 April	Interim Report January-March
19 July	Interim Report January-June
23 October	Interim Report January-September

Stockholm, 15 February 2013

Board of Directors

Kinnevik discloses the information provided herein pursuant to the Securities Market Act (Sw. lagen om värdepappersmarknaden (2007:528)). The information was submitted for publication at 8.00 CET on 15 February 2013.

Review Report

Introduction

We have reviewed the condensed interim report for Investment AB Kinnevik (publ) for the period 1 January to 31 December 2012. The Board of Directors and the CEO are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of review

We conducted our review in accordance with the Swedish Standard on Review Engagements, SÖG 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, for the Group in accordance with IAS 34 and the Swedish Annual Accounts Act, and for the Parent Company in accordance with the Swedish Annual Accounts Act.

Stockholm, 15 February 2013 Ernst & Young AB

Thomas Forslund Authorized Public Accountant

For further information, please visit www.kinnevik.se or contact:

Mia Brunell Livfors, President and Chief Executive Officer, tel +46 (0)8 562 000 00

Torun Litzén, Information and Investor Relations tel +46 (0)8 562 000 83, mobile +46 (0)70 762 00 83

Kinnevik was founded in 1936 and thus embodies more than seventy-five years of entrepreneurship under the same group of principal owners. Kinnevik's objective is to increase shareholder value, primarily through net asset value growth. The company's holdings of growth companies are focused around the following business sectors; Telecom & Services, Online, Media, Paper & Packaging, Microfinancing, and Agriculture & Renewable energy.

Kinnevik has a long history of investing in emerging markets which has resulted in a considerable exposure to consumer sectors in these markets. Kinnevik plays an active role on the Boards of its holdings.

The Kinnevik class A and class B shares are listed on NASDAQ OMX Stockholm's list for Large Cap companies within the financial and real estate sector. The ticker codes are KINV A and KINV B.

CONDENSED CONSOLIDATED INCOME STATEMENT (SEK m)

		2012
		2012	2011	1 Oct	1 Oct
	Note	Full year	Full year	31 Dec	31 Dec
CONTINUING OPERATIONS
Revenue		1 591	330	530	97
Cost of goods sold and services		-957	-232	-334	-69
Gross profit/loss		634	98	196	28
Selling, administration, research and development costs		-771	-245	-254	-87
Other operating income		92	23	57	6
Other operating expenses		-53	-1	-9	0
Operating profit/loss		-98	-125	-10	-53
Share of profit/loss of associates accounted for using the equity method		10	-	10	-
Dividends received	2,7	4 263	4 947	1 430	767
Change in fair value of financial assets	2	-6 910	1 074	-2 693	4 292
Interest income and other financial income		55	67	20	19
Interest expenses and other financial expenses		-255	-168	-66	-46
Profit/loss after financial items		-2 935	5 795	-1 309	4 979
Taxes		-56	58	-12	29
NET PROFIT/LOSS FROM CONTINUING OPERATIONS		-2 991	5 853	-1 321	5 008
Net profit from discontinued operations	4	3 473	702	2 955	128
NET PROFIT/LOSS FOR THE PERIOD		482	6 555	1 634	5 136
Of which attributable to:
Equity holders of the Parent Company
Net profit/loss from continuing operations		-2 984	5 857	-1 323	5 009
Net profit/loss from discontinued operations		3 462	696	2 952	127
Non-controlling interest
Net profit/loss from continuing operations		-7	-4	2	-1
Net profit/loss from discontinued operations		11	6	3	1
Earnings per share
Earnings per share before dilution, SEK		1.72	23.64	5.88	18.53
Earnings per share after dilution, SEK		1.72	23.62	5.88	18.51
From continuing operations:
Earnings per share before dilution, SEK		-10.77	21.13	-4.77	18.07
Earnings per share after dilution, SEK		-10.77	21.11	-4.77	18.05
Average number of shares before dilution		277 183 276	277 173 242	277 183 276	277 183 276
Average number of shares after dilution		277 483 454	277 396 143	277 505 356	277 442 627

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (SEK m)

			2012	2011
	2012	2011	1 Oct	1 Oct
	Full year	Full year	31 Dec	31 Dec
Net profit/loss for the period	482	6 555	1 634	5 136
Other comprehensive income for the period
Translation differences	-31	-3	32	-10
Cash flow hedging	5	-82	-	-3
Actuarial profit/loss	-	-14	-	-14
Tax attributable to other comprehensive income	-1	25	-	4
Total other comprehensive income for the period	-27	-74	32	-23
Total comprehensive income for the period	455	6 481	1 666	5 113
Total comprehensive income for the period attributable to:
Equity holders of the Parent Company	453	6 478	1 656	5 114
Non-controlling interest	2	3	10	-1

CONDENSED CONSOLIDATED CASH-FLOW STATEMENT (SEK m)

	Note	2012 Full year	2011 Full year	2012 1 Oct 31 Dec	2011 1 Oct 31 Dec
CONTINUING OPERATIONS
Operating profit/loss		-98	-125	-10	-63
Adjustment for non-cash items		114	53	47	12
Taxes paid		-88	-1	-11	5
Cash flow from operations before change in working capital		-72	-73	26	-46
Change in working capital		-150	11	-48	30
Cash flow from operations		-222	-62	-22	-16
Acquisition of subsidiaries	6	-532	-148	-5	-
Sale of subsidiaries		106	-	8	-
Investments in tangible and biological fixed assets		-92	-37	-34	-29
Investments in intangible fixed assets		-13	-5	-2	-1
Investments in shares and other securities	6	-7 462	-2 632	-2 656	-748
Sales of shares and other securities		572	28	3	-
Dividends received	7	4 264	4 947	1 431	767
Changes in loan receivables		219	-26	9	-35
Interest received		55	26	30	19
Cash flow from investing activities		-2 883	2 153	-1 216	-27
Change in interest-bearing liabilities		1 093	-389	-1 646	186
Interest paid		-255	-100	-115	-27
Contribution from holders of non-controlling interest		32	-	17	-
Dividend paid to equity holders of the Parent company		-1 524	-1 247	-	-
Dividend paid to holders of non-controlling interest		-4	-4	-4	-4
Cash flow from financing activities		-658	-1 740	-1 748	155
CASH FLOW FOR THE PERIOD FROM CONTINUING OPERA
TIONS		-3 763	351	-2 986	112
Cash flow for the period from discontinued operations	4	4 035	-319	2 989	-189
CASH FLOW FOR THE PERIOD		272	32	3	-77
Exchange rate differences in liquid funds		0	0	0	0
Cash and short-term investments, opening balance		182	150	451	259
Cash and short-term investments, closing balance		454	182	454	182

CONDENSED CONSOLIDATED BALANCE SHEET (SEK m)

	2012	2011
Note ASSETS Fixed assets	31 Dec	31 Dec

Intangible fixed assets Tangible and biological fixed assets	1 044 281	957 6 526
Financial assets accounted to fair value through
profit and loss 3	59 953	58 615
- whereof interest-bearing	28	227
Financial assets held to maturity	-	263
Investments in companies accounted for using the
equity method	79	242
Deferred tax assets	18	-
	61 375	66 603
Current assets
Inventories	64	2 180
Trade receivables	372	771
Tax receivables	36	25
Other current assets	331	307
Short-term investments	1	0
Cash and cash equivalents	453	182
	1 257	3 465
TOTAL ASSETS	62 632	70 068
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity
Equity attributable to equity holders of the Parent
Company	58 573	59 637
Equity attributable to non-controlling interest	67	50
	58 640	59 687
Long-term liabilities
Interest-bearing loans	1 174	4 936
Provisions for pensions	37	534
Other provisions	4	9
Deferred tax liability	0	1 060
Other liabilities	14	12
	1 229	6 551
Short-term liabilities
Interest-bearing loans	2 111	1 741
Provisions	4	19
Trade payables	156	999
Income tax payable	59	10
Other payables	433	1 061
	2 763	3 830
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	62 632	70 068

CONDENSED REPORT OF CHANGES IN EQUITY FOR THE GROUP (SEK m)

			2012	2011
	2012	2011	1 Oct	1 Oct
	Full year	Full year	31 Dec	31 Dec
Equity, opening balance	59 687	54 425	57 004	54 576
Total comprehensive income for the period	455	6 481	1 666	5 113
Acquisitions from non-controlling interest	-25	-	-	-
Business combination, non-controlling interest	59	22	3	-
Contribution from non-controlling interest	32	2	20	-
Dividend paid to owners of non-controlling interest	-4	-4	-4	-4
Sale of shares, non-controlling interest	-47	-	-47	-
Dividend paid to shareholders of the Parent company	-1 524	-1 247	-	-
Effect of employee share saving programme	7	8	-2	2
Equity, closing amount	58 640	59 687	58 640	59 687

Equity attributable to the shareholders of the Parent Company	58 573	59 637	58 573	59 637
Equity attributable to non-controlling interest	67	50	67	50

	2012	2011
KEY RATIOS	Full year	Full year
Debt/equity ratio	0.06	0.12
Equity ratio	94%	85%
Net debt	2 840	6 539

DEFINITIONS OF KEY RATIOS

Debt/equity ratio Interest-bearing liabilities including interest-bearing provisions divided by shareholders' equity.

Equity ratio Shareholders' equity including non-controlling interest as percentage of total assets. Net debt Interest-bearing liabilities including interest-bearing provisions less the sum of interest-bearing receivables, short-term investments and cash and cash equivalents. Operating margin Operating profit after depreciation divided by revenue.

NOTES TO THE GROUP'S FINANCIAL STATEMENTS (SEK m)

Note 1 Condensed segment reporting

Kinnevik is a diversified company whose business consists of managing a portfolio of investments and to conduct operations through subsidiaries. The Kinnevik Group's accounting is distributed on the following three accounting segments:

Metro - following the acquisition of Metro on 29 March 2012, Metro is an accounting segment from the second quarter 2012.

Other operating subsidiaries - Rolnyvik, Vireo Energy, Relevant Traffic (disposed in the fourth quarter 2012), Duego Technologies, Saltside, Milvik and G3 Good Governance Group.

Parent Company & other - all other companies and financial assets (including change in fair value of financial assets). This distribution coincides with the internal structure for controlling and monitoring used by Kinnevik's management.

		Other	Parent
1 Jan-31 Dec 2012	Metro	operating subsidiaries	company & other	Total Group
Revenue	1 234	349	8	1 591
Operating costs	-1 151	-440	-127	-1 718
Depreciation	-18	-11	-3	-32
Other operating income and expenses	4	57		61
Operating profit/loss	69	-45	-122	-98
Share of profit/loss of associates accounted for
using the equity method	10			10
Dividends received			4 263	4 263
Change in fair value of financial assets			-6 910	-6 910
Financial net	-55	-8	-137	-200
Profit/loss after financial items	24	-53	-2 906	-2 935
Investments in subsidiaries and financial fixed
assets	845	110	7 063	8 018
Investments in tangible, biological and intangible fixed assets	17	82	6	105
Impairment of goodwill		-22		-22

	Other	Parent
	operating	company &	Total
1 Jan-31 Dec 2011	subsidiaries	other	Group
Revenue	318	12	330
Operating costs	-332	-121	-453
Depreciation	-22	-2	-24
Other operating income and expenses	15	7	22
Operating profit/loss	-21	-104	-125
Dividends received		4 947	4 947
Change in fair value of financial assets		1 074	1 074
Financial net	0	-101	-101
Profit/loss after financial items	-21	5 816	5 795
Investments in subsidiaries and financial fixed
assets	143	3 127	3 270
Investments in tangible, biological and intangible
fixed assets	39	2	41

	Other	Parent
	operating	company &	Total
Metro	subsidiaries	other	Group
437	91	2	530
-392	-167	-44	-603
-3	-3	-1	-7
2	68	0	70
44	-11	-43	-10

10			10
		1 430	1 430
-4		-2 689	-2 693
-8	-8	-30	-46
42	-19	-1332	-1309

19	5	2 627	2 651

10	22	4	36
	-4		-4

	Other	Parent
	operating	company &	Total
1 Oct-31 Dec 2012	subsidiaries	other	Group
Revenue	93	4	97
Operating costs	-100	-53	-153
Depreciation	-3	0	-3
Other operating income and expenses	5	1	6
Operating profit/loss	-5	-48	-53
Dividends received		767	767
Change in fair value of financial assets		4 292	4 292
Financial net	-2	-25	-27
Profit/loss after financial items	-7	4 986	4 979
Investments in subsidiaries and financial fixed assets		1 238	1 238
Investments in tangible, biological and intan gible fixed assets	30		30

Note 2 Change in fair value of financial assets and dividends received

			2012	2011
	2012	2011	1 Oct	1 Oct
	Full year	Full year	31 Dec	31 Dec
Listed holdings
Millicom	-3 399	2 965	-1 029	956
Tele2	-501	2 873	-257	1 071
Transcom	41	-314	-20	-109
CDON	35	108	-17	209
Groupon, direct ownership	-627	747	-	747
MTG	-1 272	-1 472	-875	716
Metro 1)	39	-382	0	-92
BillerudKorsnäs	294	-	294	-
Seamless	30	-	-4	-
Black Earth Farming	-104	-396	-54	-110
Total listed holdings	-5 464	4 129	-1 962	3 388
Unlisted holdings
Online	2 752	1 811	689	1 646
Media	0	-	-3	-
Microfinancing	65	73	13	25
Agriculture	0	8	0	0
Total unlisted holdings	2 817	1 892	699	1 671
Total	-2 647	6 021	-1 263	5 059

Note 3 Financial assets accounted at fair value through profit and loss

	31 Dec 2012
	Class	Class	2012	2011
	A shares	B shares	31 Dec	31 Dec
Listed holdings
Millicom	37 835 438		21 283	26 088
Tele2	18 507 492	116 988 645	15 867	18 129
Transcom	247 164 416	163 806 836	230	189
CDON	16 639 607		664	629
Groupon, direct ownership			-	1 197
MTG	5 119 491	8 384 365	3 042	4 436
Metro 1)			-	277
BillerudKorsnäs	51 827 388		3 161	-
Seamless	3 898 371		65	-
Black Earth Farming	51 811 828		456	427
Total listed holdings			44 768	51 372
Unlisted holdings
Online			14 404	5 895
Media			84	-
Microfinancing			657	440
Paper & Packaging			-	656
Agriculture			3	3
Parent Company & other			37	249
Total unlisted holdings			15 185	7 243
Total			59 953	58 615

1) Metro became a subsidiary to Kinnevik on 29 March 2012. The change in fair value for 2012 relates to the period from 1 January until the bid was published on 6 February.

Note 4 Discontinued operations

On 20 June 2012, Kinnevik announced that an agreement had been reached with Billerud regarding a merger between Korsnäs and Billerud. The transaction was completed on 29 November 2012. In consideration, Kinnevik received a cash payment of SEK 2,752m (before transaction costs); 25% of the shares in the new company BillerudKorsnäs (with a market value of SEK 2,367m on the closing day); and a SEK 500m promissory note (which was used to participate in BillerudKorsnäs's rights issue in December 2012). BillerudKorsnäs also assumed net debt of SEK 5,576m as part of the transaction. All in all, Korsnäs was valued at SEK 11,195m on the closing day.

The divestment of Korsnäs - including 75% of the shares in Latgran Biofuels and 5% of the shares in Bergvik Skog - has been reported separately as discontinued operations in the income statement, with retrospective adjustment of previous periods, as per IFRS 5-Non-current assets held for sale and discontinued operations.

Financial statements

Income statement for discontinued operations

			2012	2011
	2012	2011	1 Oct	1 Oct
	Full year	Full year	31 Dec	31 Dec
Revenue	8 206	8 475	1 462	2 089
Operating costs	-6 788	-7 031	-1 282	-1 860
Depreciation	-584	-623	-106	-159
Other operating income and expenses	46	130	5	64
Operating profit/loss	880	951	79	134
Dividends received	4	4	0	0
Sale of shares in discontinued operations	2 901	-	2 901	-
Change in fair value of financial assets	-49	97	-60	69
Financial net	-89	-158	44	-41
Profit/loss after financial items	3 647	894	2 964	162
Taxes	-174	-192	-9	-34
Net profit for the period	3 473	702	2 955	128

Cash flow statement for discontinued operations

			2012	2011
	2012	2011	1 Oct	1 Oct
	Full year	Full year	31 Dec	31 Dec
Cash flow from operations	1 676	843	275	220
Cash flow from investing activities	-653	-855	-210	-362
Cash flow from financing activities	611	-307	523	-47
Cash flow for the period	1 634	-319	588	-189
Gross payment from Billerud	5 331	-	5 331	-
Repayment of Kinnevik's loans from Korsnäs	-2 579	-	-2 579	-
Cash consideration	2 752	-	2 752	-
Transaction costs	-27	-	-27	-
Cash in Korsnäs at closing	-324	-	-324	-
Cash flow from discontinued operations	4 035	-319	2 989	-189

Note 5 Business combination

On 6 February 2012 Kinnevik made a public offer for all shares and other financial instruments in Metro, which resulted in Kinnevik becoming the principal owner of Metro on 29 March owning 97.1% of the capital on a fully diluted basis. After further share purchases, Kinnevik owned 99.0% of the capital as per 31 December 2012. Kinnevik is consolidating Metro from 31 March 2012, which is the first date on which Metro prepared consolidated financial statements following the acquisition. The acquisition value for all of Metro including Kinnevik's earlier holdings, as well as non-controlling interests has according to the acquisition assessment been calculated at SEK 1,419m including debentures of SEK 492m.

The provisional fair value of the identifiable assets and liabilities of Metro as at the date of acquisition was:

	Fair value recogni- sed on acquisition
Intangible fixed assets	462
Tangible and biological fixed assets	44
Financial assets accounted to fair value through profit and loss	86
Investments in companies accounted for using the equity method	40
Trade and other receivables	482
Cash and cash equivalents	388
Total assets	1 502
Equity attributable to non-controlling interest	-17
Interest bearing-loans	-546
Trade payables and other liabilities	-484
Total liabilities	-1 047
Total identifiable net assets at fair value	455
Goodwill arising on acquisition	472
Purchase consideration for shares and warrants	927
Analysis of the purchase consideration:
Cash consideration	573
Fair value previously held interest	315
Fair value minority interest	39
Purchase consideration for shares and warrants	927
Analysis of cash flow on acquisition:
Net cash acquired with the subsidiary	388
Cash paid for shares and warrants	-573
Net cash outflow from acquisition of shares and warrants	-185
Cash paid for debentures	-219
Acquisition of additional shares and warrants	-34
Total cash flow from acquisition of Metro	-438

From the date of acquisition, Metro has contributed SEK 1.234m of revenue and SEK 24m in operating profit to Kinnevik. If the business combination had taken place at the beginning of the year, the revenue from Metro would have been SEK 1,541m and the operating profit SEK 73m.

The transaction costs of approximately SEK 16m have been expensed and are included in the administrative expenses in the income statement and are part of operating cash flow in the statement of cash flow.

Note 6 Investments in shares and securities

SEKm	2012 Full year	2011 Full year	2012 1 Oct 31 Dec	2011 1 Oct 31 Dec
Subsidiaries
Metro (net of acquired cash balance)	438	-	0	-
G3 Group (net of acquired cash balance)	89	143	-	-
Other subsidiaries	5	5	5
Total subsidiaries	532	148	5	-
Other shares and securities
Telecom & Services
Transcom	-	170	-	170
Online
Zalando	3 658	828	2 489	-
Bigfoot I	1 003	359	-	117
Bigfoot II	532	228	-	205
Home24	428	363	-	270
Wimdu	86	275	-	89
BigCommerce	289	-	-	-
Rocket Internet GmbH	472	-	-	-
Rocket Internet's other portfolio companies	159	620	7	362
Avito	50	62	-	-
CDON	-	101	-	-
Other online investments	67	97	5	16
Total Online	6 744	2 933	2 500	1 059
Media	19	-	19	-
Microfinancing
Bayport	116	-	-	-
Seamless	35	-	19	-
Other microfinancing	36	19	4	9
Total Microfinancing	187	19	23	9
Agriculture
Black Earth Farming	132	-	124	-
Total Agriculture	132	-	124	-
Total investments other shares and securities	7 082	3 122	2 666	1 238
of which paid during the period	6 972	2 632	2 656	748
Paid on investments made in earlier periods	490	-	-	-
Cash flow from investments in other shares and securities	7 462	2 632	2 656	748
Note 7 Dividends received
			2012	2011
	2012	2011	1 Oct	1 Oct
1 Jan-31 Dec 2012	Full year	Full year	31 Dec	31 Dec
Millicom	1 407	1 187	751	767
Tele2	1 761	3 659	-	-

MTG 122 101 - - Rocket Internet 974 - 680 - Total dividends received 4 264 4 947 1 431 767 Of which ordinary dividends 1 659 1 334 - -

CONDENSED PARENT COMPANY INCOME STATEMENT (SEK m)

			2012	2011
	2012	2011	1 Oct	1 Oct
	Full year	Full year	31 Dec	31 Dec
Revenue	20	18	6	4
Administration costs	-121	-121	-41	-52
Other operating income	0	2	0	1
Operating loss	-101	-101	-35	-47
Dividends received	3 900	3 640	144	17
Result from financial assets	-10	-661	-121	-128
Net interest income/expense	327	345	72	83
Profit/loss after financial items	4 116	3 223	60	-75
Group contributions	-300	-234	-300	-234
Profit/loss before taxes	3 816	2 989	-240	-309
Taxes	-24	-8	-6	47
Net profit/loss for the period	3 792	2 981	-246	-262

CONDENSED PARENT COMPANY BALANCE SHEET (SEK m)

	2012 31 Dec	2011 31 Dec
ASSETS
Tangible fixed assets	3	2
Financial fixed assets	51 707	42 581
Short-term receivables	287	569
Cash and cash equivalents	12	1
TOTAL ASSETS	52 009	43 153
SHAREHOLDERS' EQUITY AND LIABILITIES
Equity	40 986	38 712
Provisions	30	32
Long-term liabilities	1 175	1 828
Short-term liabilities	9 818	2 581
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	52 009	43 153

The Parent Company's liquidity, including short-term investments and unutilized credit facilities, totalled SEK 4,587m at 31 December 2012 and SEK 4,437m at 31 December 2011. The Parent Company's interest bearing external liabilities amounted to SEK 3,257m (2,173) on the same dates.

Investments in tangible fixed assets amounted to SEK 2m (1) during the period.

As of 31 December 2012 the number of shares in Investment AB Kinnevik amounted to 277,583,190 shares of which 48,665,324 are class A shares with ten votes each, 228,653,284 are class B shares with one vote each and 264,582 are class C treasury shares with one vote each. In June, 135,332 class C shares were converted to class B shares to be delivered to the participants in the Long Term Incentive Plan for 2009. The total number of votes in the Company amounted at 31 December 2012 to 715,571,106 (715,171,192 excluding 264,582 class C and 135,332 class B treasury shares). The Board has authorization to repurchase a maximum of 10% of all shares in the Company. The Board has not used the authorization during 2012. There are no convertibles or warrants in issue.

AI Terminal

Kinnevik

2935_10-k_2013-02-15_4fcebda7-46e9-4067-824f-8ad73e9f1245.pdf

YEAR-END RELEASE 2012

Highlights

Kinnevik's net asset value 2007-2012

Pro forma adjusted for the acquisition of Emesco during Q3 2009. Figures in SEK m.

Financial results for the fourth quarter

Financial results for 2012

Kinnevik's growth drivers

Kinnevik's business sectors

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Total return

The Kinnevik share's average annual total return

Kinnevik's proportional part of revenue and operating result in its holdings

Events during the fourth quarter

Dividend and capital structure

Telecom & Services

Millicom

Tele2

Online

Millicom

Tele2

Online

Millicom

Tele2

Online

Millicom

Tele2

Online

Millicom

Tele2

Online

Telecom & Services

Millicom

Tele2

Online

Investments and valuation

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Proportional part of revenue, EBIT and cash balances in unlisted online holdings

Kinnevik's proportional part of revenue, EBIT and cash balance within its unlisted online holdings

Rocket Internet

Zalando

Dafiti, Lamoda, Namshi (Bigfoot)

The Iconic, Zalora, Zando, Jumia (Bigfoot II)

Home24

Wimdu

Lazada, Linio (BigCommerce)

Avito

CDON Group

Media

Modern Times Group MTG

Metro

Readership and Advertising Market

Operations

Paper & Packaging

BillerudKorsnäs

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Microfinancing

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Agriculture & Renewable energy

Black Earth Farming

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Rolnyvik

Vireo Energy

Financial overview

Consolidated earnings for the fourth quarter

Consolidated earnings for the year

The Group's cash flow and investments

The Group's liquidity and financing

Taxes

Parent Company and other

Risk Management

Accounting principles

Related party transaction

Kinnevik Annual General Meeting 2013

Nomination Committee for the 2013 Annual General Meeting

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