Kinnevik — Earnings Release 2008

Feb 17, 2009

Investment AB Kinnevik

Skeppsbron 18 P.O. Box 2094 SE-103 13 Stockholm Sweden www.kinnevik.se

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

YEAR-END RELEASE 2008

Financial results for the fourth quarter

• • The market value of the Group's securities in Major Listed Holdings amounted to SEK 24,085 million on 31 December, a decrease of SEK 6,521 million corresponding to 21% since 30 September 2008.
• • Korsnäs'revenue amounted to SEK 1,668 million (1,821) and operating loss was SEK 138 million (profit of 7), including restructuring charges of SEK 71 million (0). The declining result is primarily explained by weakening demand resulting in prolonged production stoppages during the fourth quarter.
• • The Group's total revenue amounted to SEK 1,796 million (1,873) and operating loss was SEK 180 million (loss of 5).
• • Result after financial items, including changes in fair value of financial assets, amounted to a loss of SEK 6,970 million (profit of 6,595).
• • The loss per share was SEK 26.11 (profit of 25.18).

Events during the fourth quarter

• • Production stoppages in Korsnäs were prolonged due to a weakening business environment, and Korsnäs announced a profit enhancement program with the purpose to return to an operating margin above 10% when fully implemented.
• • The share buy-back programme was completed and on 31 December the number of repurchased shares amounted to 3,500,000 Class B shares that had been bought at an average price of SEK 79.68, totaling SEK 279 million.
• • In December, Kinnevik divested its investment in the African pay-TV company Gateway Broadcasting for USD 23.6 million. The GTV investment generated an IRR of 40%.

Financial results for 2008

• • The market value of the Group's securities in Major Listed Holdings decreased by SEK 24,9771) million, corresponding to 49% 1).
• • Korsnäs' revenue amounted to SEK 7,396 million (7,519) and operating profit was SEK 429 million (836) including restructuring charges of SEK 71 (0) million. The operating margin was 6.7% (11.1%) excluding restructuring charges.
• • The Group's total revenue amounted to SEK 7,719 million (7,673) and operating profit was SEK 398 million (885).
• • Result after financial items, including changes in fair value of financial assets, amounted to a loss of SEK 25,872 million (profit of 16,266).
• • The loss per share was SEK 97.94 (profit of 61.29).
• • The Board proposes that the Annual General Meeting decide on an unchanged cash dividend amounting to SEK 2.00 (2.00) per share.

Events after the end of the reporting period

• • In February 2009, Metro announced the intention to raise approximately SEK 550 million in new financing by issuing debentures and warrants. The issue is fully underwritten by Kinnevik.
• 1) After deduction of dividends received.

TOTAL RETURN

During the last 30 years, the Kinnevik share has generated an average total return of 17% annually as a result of rising share prices and dividends, including the value of subscription offers. During the past five years, the corresponding figure is 2%. For 2008 the total return was negative 56%. The calculation of the total return is based on the assumption that shareholders retained their allotment of shares in Tele2 AB ("Tele2"), Modern Times Group MTG AB ("MTG"), Metro International S.A. ("Metro"), Transcom World-Wide S.A. ("Transcom") and Invik & Co. AB.

During the period 8 September until 4 November Kinnevik implemented a share buy-back programme in accordance with the mandate given at the Annual General Meeting held on 15 May. The sole purpose of the buy-back programme is to reduce Kinnevik's share capital by redemption of the repurchased shares. On 31 December the number of repurchased shares amounted to 3,500,000 Class B shares that had been bought at an average price of SEK 79.68, totaling SEK 279 million.

BUSINESS AREA STRUCTURE

Kinnevik reports its operations in the following three comprehensive business areas:

Major Unlisted Holdings, which comprises Korsnäs, including 5% of the shares in Bergvik Skog.

Major Listed Holdings, which comprises Millicom International Cellular S.A. ("Millicom"), Tele2, MTG, Metro and Transcom.

New Ventures, which are described in the table on page 9 and the ensuing text.

The Parent Company and other group companies are reported under Parent Company and other.

CONSOLIDATED EARNINGS FOR THE FOURTH QUARTER

The Group's revenue during the fourth quarter amounted to SEK 1,796 million, compared with SEK 1,873 million in the preceding year.

The Group's operating loss amounted to SEK 180 million (loss of 5). The earnings decline is primarily attributable to decreased operating profit of SEK 145 million within Korsnäs, which is explained by the prolonged production stoppages. The result also includes restructuring costs for profit enhancement programme of SEK 71 million within Korsnäs.

The change in fair value of financial assets amounted to a net loss of SEK 6,645 million (profit of 6,729), of which a loss of SEK 6,521 million (profit of 6,241) was related to Major Listed Holdings and a loss of SEK 137 million (profit of 347) to New Ventures. For a split per holding, refer to table on page 20.

The group reported a positive tax charge of SEK 165 (positive 52) million including a positive effect of SEK 78 million (0) on deferred tax due to the change in the Swedish company tax rate from 2009.

Result after tax amounted to a loss of SEK 6,805 million (6,647), corresponding to a loss of SEK 26.11 (profit of 25.18) per share.

CONSOLIDATED EARNINGS FOR 2008

The Group's revenue during the year amounted to SEK 7,719 million, compared with SEK 7,673 million in the preceding year.

The Group's operating profit amounted to SEK 398 million (885). The earnings decline is primarily attributable to decreased operating profit within Korsnäs of SEK 407 million, including costs for the restructuring programme of SEK 71 million, and lower operating profit within New Ventures of SEK 53 million, including impairment of goodwill of SEK 37 million. Within Parent Company and other the Company reports the dissolution of a provision of SEK 36 million for a pension commitment in the UK and comparable figures for 2007 includes a gain from sale of the Ullevi farm of SEK 70 million.

The change in fair value of financial assets, after deduction of dividends received, amounted to a net loss of SEK 25,726 million (profit of 15,850), of which a loss of SEK 24,977 million (profit of 14,978) was related to Major Listed Holdings and a loss of SEK 786 million (profit of 702) to New Ventures. Dividends received amounted to SEK 1,703 million (310), of which SEK 453 (235) were ordinary dividends.

Losses after tax amounted to SEK 25,762 million (profit of 16,179), corresponding to a loss of SEK 97.94 (profit of 61.29) per share.

THE GROUP'S CASH FLOW AND INVESTMENTS

The Group's cash flow from current operations excluding change in working capital amounted to SEK 756 million (1,130) during the year. The lower cash flow from current operations is mainly explained by a lower profit in Korsnäs and higher tax payments relating to the 2007 profit.

Working capital increased by SEK 232 million (252) during the year, mainly explained by higher inventory level of raw materials and finished goods within Korsnäs.

Investments in tangible fixed assets amounted to SEK 226 million (353).

Investments in and sales of financial fixed assets are shown in the tables below.

Investments in financial fixed assets

	Acquired share/	Amount
	Number of	(SEK
1 Jan-31 Dec 2008	shares	million)
Subsidiaries
Karskär Energi AB	59%	200
Relevant Traffic Europe AB	42%	48
		248
Other shares and
securities
Bayport		3
Black Earth Farming Ltd	1 819 538	37
Vosvik AB/Kontakt East
Holding AB		153
		193
1 Jan-31 Dec 2007
Other shares and
securities
Bayport		101
Black Earth Farming Ltd	7 376 900	278
Gateway TV		89
Relevant Traffic Europe AB		16
Kontakt East Holding AB	1 469 943	35
Other		11
		530
Sales of financial fixed assets
1 Jan-31 Dec 2008
Gateway TV		183
		183
1 Jan-31 Dec 2007
Invik & Co . AB	4 519 230	1 089
Phonera AB	4 357 952	6
Valvosacco SpA		25
Other		11
		1 131

THE GROUP'S LIQUIDITY AND FINANCING

The Group's available liquidity, including short-term investments and available credit facilities, totalled SEK 2,031 million at 31 December 2008 and SEK 2,481 million at 31 December 2007.

The Group's interest-bearing net debt amounted to SEK 8,906 million at 31 December 2008 and SEK 9,205 million at 31 December 2007. Of the total net debt at 31 December 2008, SEK 5,845 million pertained to net debt within Korsnäs or with shares in Korsnäs as collateral, and SEK 3,066 million of the net debt was pledged by shares within Major Listed Holdings.

Leverage within Major Unlisted Holdings and Major Listed Holdings has developed according to the charts below.

All loans have fixed interest terms of no longer than three months and carry an interest rate according to Stibor or similar base rate and an average margin of 0.6%. Of the Group's interest expenses and other financial costs of SEK 574 million (483), interest expenses amounted to SEK 554 million (458) and exchange rate differences was a negative SEK 9 million (negative 10). This means that the average interest rate for the year was 5.6% (4.6%) (calculated as interest expense in relation to average interest-bearing liabilities).

At 31 December, the average remaining duration for all credit facilities amounted to 2.2 years. In February 2009 credit facilties totaling SEK 1,550 million maturing in 2009 have been prolonged for 3 years.

The Group's borrowing is primarily arranged in SEK. On an annual basis, the net flow in foreign currencies is a net inflow of about SEK 800 million, comprised mainly of Korsnäs' sales in Euro.

BOOK AND FAIR VALUE OF ASSETS

	Class A shares	Class B shares	Equity interest (%)	Voting interest (%)	Book value 31 Dec 2008 (SEK m)	Fair value 31 Dec 2008 (SEK m)	Change in stock price since 31 Dec 20071)
Major Unlisted Holdings
Korsnäs Industrial and Forestry			100	100	6 822	2) 7 573
Bergvik Skog			5	5	453	3) 453
Interest bearing net debt relating to Korsnäs					-5 845	-5 845
Total Major Unlisted Holdings					1 430	2 181
Major Listed Holdings 4)
Millicom	37 835 438		34.9	34.9	13 432	13 432	-51%
Tele2	25 747 390	99 734 135	28.5	45.6	8 627	8 627	-41%
MTG	9 605 257	329 754	15.1	47.8	1 674	1 674	-59%
Metro	103 408 698	129 138 208	44.1	39.1	160	160	-86%
Transcom	12 627 543		17.2	34.5	192	192	-65%
Interest bearing net debt relating to Major Listed Holdings					-3 066	-3 066
Total Major Listed Holdings					21 019	21 019
New Ventures
Rolnyvik			100	100	179	2505)
Black Earth Farming		25 977 238	21	21	470	4704)	-64%
Sia Latgran			51	51	198	1986)
Relevant Traffic			98	98	54	546)
Kontakt East			50	50	141	1416)
Bayport					120	1206)
Interest bearing net debt relating to New Ventures					-115	-115
Total New Ventures					1 047	1 118
Other assets and liabilities					7	6) 7
Total equity/net asset value					23 503	24 325
Net asset value per share, SEK						93.39
Closing price class B share 31 December 2008, SEK						63.00

1) Including dividends received.

2) Consensus among analysts covering Kinnevik.

3) Corresponding to 5% of the company's equity.

4)Market value.

5) Estimated value.

6) Book value.

SEK million			Reported	Proportional part of		Change compared to	Jan-Dec 2007
Jan-Dec 2008	Equity interest	revenue	EBIT1)	revenue	EBIT	revenue	EBIT
Korsnäs	100.0%	7 396	500	7 396	500	-2%	-40%
Millicom	34.9%	22 451	5 705	7 835	1 991	30%	27%
Tele2	28.5%	39 505	4 508	11 259	1 285	-1%	62%
MTG	15.1%	13 166	2 598	1 988	392	16%	28%
Metro	44.1%	2 840	-192	1 252	-85	-11%	N/A
Transcom	17.2%	6 072	268	1 044	46	5%	-23%
New Ventures	-	814	-170	440	-59	142%	N/A
Total sum of Kinnevik's proportional part of revenue and operating result				31 214	4 070	7%	18%

KINNEVIK'S PROPORTIONAL PART OF REVENUE AND OPERATING RESULT IN ITS HOLDINGS

1) Less divested operations and excluding one-off items.

The table above is a compilation of the holdings' revenues and operating result reported for 2008.

Revenues and operating result reported by the companies have been multiplied by Kinnevik's ownership share, thereby showing Kinnevik's proportional share of the companies' revenues and operating result.

The proportional share of revenues and operating result has no connection with Kinnevik's accounting and is only additional information.

MAJOR UNLISTED HOLDINGS – KORSNÄS

	Jan-Dec		Oct-Dec
(SEK million)	20081)	2007	20081)	2007
Revenue	7 396	7 519	1 668	1 821
EBITDA	1 124	1 449	91	161
Operating profit (EBIT)	500	836	-67	7
Operating margin	6.7%	11.1%	-4.1%	0.4%

1) Excluding restructuring charges of SEK 71 million in Q4 2008.

Korsnäs and its subsidiaries produce virgin fiberbased packaging material mainly for consumer products at its two mills in Gävle and Frövi. Korsnäs also owns 5% of the shares in Bergvik Skog.

Korsnäs Industrial

Demand for Korsnäs products weakened in 2008, partly due to the general economic downturn in the global economy and partly due to lower sales to the Chinese market. Delivery volumes for paper, pulp and cartonboard products declined 7.5% for the full-year to 993,000 tons compared with 1,073,000 tons in the preceding year.

Global demand for Liquid Packaging Board was stable during the first half of the year. After the summer, demand in China declined due to the scandal with melamine-contaminated milk products and reduced consumption following the Olympics. In terms of the melamine scandal, the situation started to stabilize and deliveries to China partially rebounded at the end of 2008 and beginning of 2009. For 2008 as a whole, Korsnäs Liquid Packaging Board deliveries declined by about 8% compared with 2007 and comprised 68% of total sales volume. Price increases were implemented in accordance with the multi-year agreements that Korsnäs has with a number of customers regarding Liquid Packaging Board deliveries.

The White Top Liner (WTL) market in Europe was essentially unchanged in 2008 compared with 2007, which shall be compared with growth that is usually about 3-4%. Korsnäs' total deliveries of WTL declined in 2008, although deliveries of coated WTL rose in line with the company's long-term strategy. Since the majority of sold volumes of WTL are priced in USD, Korsnäs' revenue increased as a result of the USD strengthening during the second half of the year, despite the underlying USD prices declining slightly.

The cartonboard market in Europe generally grows 2-3% annually, but declined by slightly more than 4% in 2008. Cartonboard capacity was reduced during the year in Europe through the shutdown of a number of machines. European imports, primarily from Brazil, continued to rise. Nevertheless, cartonboard prices increased during the fourth quarter and Korsnäs' cartonboard deliveries rose by almost 6% compared with 2007.

The market for sack and kraft paper in Europe experienced a strong start in 2008, but weakened during the second half of the year. The significant reduction in construction is the primary cause of the decline in paper sack consumption. The market for white paper, the segment on which Korsnäs has focused for the past several years, is in better balance between supply and demand than for brown paper. Korsnäs' deliveries of sack paper declined by 8% in 2008, compared with the preceding year, of which brown paper accounted for the majority of the decrease.

Production amounted to 1,052,000 tons in 2008, compared with 1,069,000 tons in 2007. The decline was primarily due to market-related shutdowns toward the end of 2008. The shutdown was for a total of about 10 days in addition to previously planned maintenance shutdowns during the fourth quarter. Cartonboard production in Frövi achieved a record production totaling 398,000 tons (392,000), despite the shutdowns, while cartonboard and paper production in Gävle amounted to 654,000 tons (677,000).

Having previously held 41% of the shares in Karskär Energi AB, Korsnäs acquired the remaining 59% in January 2008 from E.ON Sverige AB for the purchase price of SEK 200 million. The transaction encompasses a combined heating and power plant that has been in the Korsnäs industrial area in Gävle since 1971. Karskär Energi produces 350 GWh of electricity a year and the acquisition implies that from now on Korsnäs will produce 38% of the annual electricity consumption internally at its plants in Gävle and Frövi. Karskär Energi has been fully consolidated with the Group since 1 January 2008 and, according to the purchase price allocation, the transaction generated SEK 126 million in goodwill. Karskär Energi is expected to contribute approximately SEK 40 million a year in profit, with full effect in 2009.

In the autumn of 2008, investments were decided on for a new evaporation plant for the pulp plant in Gävle and the rebuilding of the press section at the PM5 in Gävle. The evaporation plant, which is estimated to cost about SEK 570 million, will reduce energy costs at the pulp plant by approximately SEK 130 million annually with full effect from 2011. The investment will affect cash flow in 2009 and 2010. The rebuilt press section at the PM5 will result in improved product properties and better production economy following the implementation of the investments in the spring of 2009.

The earnings-improvement program initiated in conjunction with the acquisition of Frövi favorably impacted 2008 earnings by about SEK 170 million (95), compared to when the program was launched in 2006.

In November 2008, a new earnings-improvement program was launched aimed at increasing production efficiency and energy conservation, reducing purchasing costs, and improving inventory control and organizational matters. The goal is to restore Korsnäs profitability to an operating margin of more than 10%. The program includes staff reductions involving 110- 130 positions, which is being negotiated with the trade union organizations. The program is also expected to favorably impact Korsnäs' tied-up capital.

Korsnäs Industrial's revenue amounted to SEK 6,608 million (6,625). Operating profit totaled SEK 401 million, compared with SEK 745 million in 2007. Earnings in 2008 include SEK 12 million related to integration costs regarding Karskär Energi, and SEK 71 million for costs in conjunction with the launch of the earnings-improvement program. Earnings for 2007 include positive non-recurring effects of about SEK 60 million. Otherwise, the earnings decline is primarily attributable to approximately SEK 190 million in increased costs for pulpwood and external pulp as well as higher costs for energy, other input goods and salaries of approximately SEK 170 million. The cost increases were partly offset by the positive effects described above that are a result of the earnings-improvement program, which was initiated in conjunction with the acquisition of Frövi, of SEK 75 million. Lower sales volume had a negative impact on earnings while increased selling prices had a positive effect, which overall resulted in an earnings improvement of about SEK 80 million.

In order to reduce tied-up capital in inventory, Korsnäs has in the beginning of 2009 implemented further production stoppages of an average of about 6 days at the mills in Gävle and Frövi. No further production stoppages are planned during the remainder of the first quarter.

Korsnäs Forestry

Pulpwood prices, which account for the largest single cost item for Korsnäs, appear to have peaked in 2008. Korsnäs, similar to several other operators in the Swedish market, announced two price reductions in the midst of Sweden, totaling SEK 60/m3fub in the fourth quarter.

Wood prices declined in the entire Baltic Sea region during the year. Korsnäs' softwood fiber inventory was average at the end of the year, but the hardwood fiber inventory was higher than average.

Korsnäs Forestry's revenue for the year amounted to SEK 2,225 million (2,207), of which internal sales to Korsnäs Industrial amounted to SEK 1,437 million (1,313). Operating profit amounted to SEK 28 million (91). The lower operating profit is attributable to the fact that earnings in the preceding year were favorably affected by increased market prices for harvesting rights and timber, including a temporary effect due to sales from stock that had been purchased at earlier applicable prices. Earnings in the preceding year also included a capital gain of SEK 26 million from the sale of land.

MAJOR LISTED HOLDINGS

The market value of the Group's securities in Major Listed Holdings decreased by SEK 24,977 million (net after deduction of dividends received) during the year, corresponding to 49%. On 31 December 2008, the market value of the Major Listed Holdings was SEK 24,085 million (SEK 50,761 million 31 December 2007). The changes in value are shown in the consolidated income statement; refer to table on page 20 for split per holding.

Dividends received from Major Listed Holdings totalled SEK 1,699 million (304), of which SEK 541 million (0) were received from Millicom, SEK 985 million (230) from Tele2, SEK 149 million (74) from MTG and SEK 24 million (0) from Transcom.

On 16 February 2009 the market value of the Major Listed Holdings was SEK 25,337 million, which represents an increase by 5% since 31 December 2008.

Millicom

		Jan-Dec	Oct-Dec
(USD million)	2008	2007	2008	2007
Revenue	3 412	2 624	907	766
EBITDA	1 468	1 119	406	309
Operating profit (EBIT) Net profit	867 518	672 697	239 66	157 113
Number of mobile subscribers at the end of the period
(million)	32.0	23.3

The market value of Kinnevik's shareholding in Millicom amounted to SEK 13,432 million on 31 December 2008. Millicom's shares are listed on NASDAQ in New York and is included in NASDAQ 100 and the OMX Nordic Exchange Stockholm, Large Cap segment, in the telecommunications services sector.

Millicom offers affordable and easily accessible mobile telephone services to all market segments in 16 countries in Latin America, Africa and Asia, which combined represent an overall market of 291 million people.

During the year, Millicom acquired Amnet Telecommunications Holding Limited for USD 510 million. Amnet is the leading provider of broadband and cable television services in Costa Rica, Honduras and El Salvador, fixed telephony in El Salvador and Honduras and corporate data services in the above countries as well as Guatemala and Nicaragua. Revenues in 2008 amounted to USD 164 million and the EBITDA margin was 43%.

In the fourth quarter, Millicom won a tender for the third mobile license in Rwanda. Rwanda has 10 million inhabitants and is located between Millicom's existing operations in DRC and Tanzania, giving potential to create synergies between the operations in time.

On 31 December 2008 Millicom had 32 million subscribers, which is an increase of 38% since 31 December 2007. Growth was strong in all regions with particluarly significant increases in Honduras (45%), Tanzania (93%), DRC (92%) and Laos (79%).

Tele2

		Jan-Dec	Oct-Dec
(SEK million)	2008	2007	2008	2007
Revenue1)	39 505	40 056	10 313	9 599
EBITDA2)	8 189	6 309	2 173	1 482
Operating profit (EBIT)2)	4 508	2 784	1 210	538
Net profit1)	1 718	-382	696	-139
Number of subscri bers at the end of the period (million)1)	24.5	23.2

1) From continuing operations.

2) Less divested operations, excluding one-off items.

The market value of Kinnevik's shareholding in Tele2 amounted to SEK 8,627 million on 31 December 2008. Tele2's shares are listed on the OMX Nordic Exchange Stockholm, Large Cap segment, in the telecommunications services sector.

Tele2 offers products and services in fixed and mobile telephony, broadband and cable TV to 24.5 million customers in 11 countries with geographical footprint towards Russia, Eastern Europe and the Nordic countries.

In the fourth quarter, Tele2 acquired Digital Expansion's mobile network in the region of Kaliningrad for approximately SEK 103 million. Digital Expansion operates an 1800 MHz GSM licence in the region of Kaliningrad with a population of approximately one million. Kaliningrad is an exclave sorrounded by the European Union and one of Russia's fastest growing regions. After completion of the transaction, Tele2 Russia will be present in 35 regions with total population coverage of approximately 61 million.

Mobile telephony continued to deliver robust growth and profitability improvement in the Nordic region as well as in Russia, Croatia and the Baltic countries. At the end of December 2008, the Baltic States, Croatia and the Russian market area had 14.6 million mobile customers to be compared to a total of 19.4 million mobile customers in entire Tele2.

The Board of Directors in Tele2 proposes an ordinary dividend of SEK 3.50 (3.15) per share and a special dividend of SEK 1.50 per share, payable after the Annual General Meeting in May 2009.

MTG

		Jan-Dec	Oct-Dec
(SEK million)	2008	2007	2008	2007
Revenue	13 166	11 351	3 845	3 268
Operating profit(EBIT) 1)	2 598	2 027	746	611
Net profit	2 927	1 428	528	458

1) Excluding one-off items.

The market value of Kinnevik's shareholding in MTG amounted to SEK 1,674 million on 31 December 2008. MTG's shares are listed on the OMX Nordic Exchange Stockholm, Large Cap segment, in the consumer discretionary sector.

MTG is an international entertainment broadcasting group with its core business in television. MTG is the largest Free-to-air-TV and Pay-TV operator in Scandinavia and the Baltics and the largest shareholder in Russia's largest independent television network CTC Media. Viasat's channels are distributed on the Viasat platform and in third party networks in 29 Nordic, Baltic, Eastern European and other countries and reach over 100 million people.

In 2008, MTG increased its market share and share of viewing in most markets. MTG launched several new channels including a national terrestrial TV channel in Ghana in West Africa. The new channel is called Viasat1 and is Viasat Broadcasting's first TV commercial free-to-air entertainment channel outside Europe. Also, a new sportschannel was launched in the Baltics as well as TV1000 Russian Kino in the United States.

In August, MTG signed an agreement to acquire 100% of Nova Televizia Bulgaria for a total consideration of EUR 620 million on a debt free basis. Nova Televizia was established in 1994 and owns 100% of commercial TV-channel Nova, the second most watched TV channel in Bulgaria.

The Board of Directors in MTG proposes an ordinary dividend of SEK 5 (5) per share, payable after the Annual General Meeting in May 2009.

Metro

(EUR million)		Jan-Dec	Oct-Dec
	2008	2007	2008	2007
Revenue	295.5	331.1	83.5	97.6
Operating profit
(EBIT)1)	-20.0	-18.6	-1.6	0.1
Net profit	4.1	-20.2	-9.8	3.9

1) Excluding profit on sale of shares in subsidiaries.

The market value of Kinnevik's shareholding in Metro amounted to SEK 160 million on 31 December 2008. Metro's shares are listed on the OMX Nordic Exchange Stockholm, Mid Cap segment, in the consumer discretionary sector.

Metro is the world's largest international daily newspaper. Metro is published in over 100 major cities in 20 countries across Europe, North & South America and Asia. Metro has a global reach attracting an audience of 18 million daily readers. In 2008 readership increased in 12 out of 20 markets. The newspapers are distributed free of charge and revenue is generated primarily through advertising sales.

In the fourth quarter Metro Mexico launched a new edition in Monterrey. Metro also concluded a franchise agreement with the largest free-sheet newspaper in Moscow, Russia.

In Denmark cost-saving measures were announced to meet the economic downturn and the number of staff will be reduced by 20-25%.

Also, Metro closed down its Spanish operation in January 2009 and has announced to move its headquarter to Stockholm.

In February 2009, Metro announced the intention to raise approximately SEK 550 million in new financing through an issue of debentures and warrants with preferential rights for existing shareholders. The issue is fully underwritten by Kinnevik.

Transcom

(EUR million)		Jan-Dec	Oct-Dec
	2008	2007	2008	2007
Revenue	631.8	599.2	151.9	167.6
Operating profit
(EBIT)	27.9	36.0	4.5	10.9
Net profit	16.3	24.3	2.2	6.9

The market value of Kinnevik's shareholding in Transcom amounted to SEK 192 million on 31 December 2008. Transcom's shares are listed on the OMX Nordic Exchange Stockholm, Mid Cap segment, in the industrials sector.

Transcom is active within outsourcing of Customer Relationship Management (CRM) and Credit Management Services. The company has 75 sites delivering services from 29 countries. Transcom provides CRM solutions for companies in a number of industry sectors including telecommunications and e-commerce, travel & tourism, retail, financial services and utilities.

In 2008, Transcom experienced volume reductions with a number of major clients resulting in realignments in some of Transcom's markets. The momentum was maintained in the off-shore operations which continued to deliver profitable growth. Also, the CMS business continued to generate new customer contracts.

NEW VENTURES

Company	Equity and voting interest	Business	Investment class	Initial investment	Invested amount (SEK mil lion)
Rolnyvik, Poland	100%	agricultural operations	subsidiary	2001	174
Black Earth Farming, Russia	21%	agricultural operations	listed associate	2006	530
Sia Latgran, Latvia	51%	pellets production	subsidiary	2005	21
Relevant Traffic, Europe	98%	search marketing	subsidiary	2006	120
Kontakt East, Russia	50%	search and guidance media	joint venture	2006	222
Bayport, Africa	-	micro credits	interest bearing receivable/ warrants at fair value	Q3 2007	104

Within New Ventures, Kinnevik invests in sectors and markets characterized by high growth potential. Investments to date are in growth markets in which Kinnevik has a long tradition and a strong platform to capitalize on existing growth possibilities. Kinnevik's new investments shall have a substantial market potential and the investments must have the conditions to grow through market growth and scalability. Kinnevik invests at an early stage and is an active owner.

In May Kinnevik and Vostok Nafta, through their jointly and equally owned Swedish company Vosvik, submitted an offer to all shareholders in Kontakt East to surrender their shares to Vosvik for a cash payment of SEK 35 per share. Owners of 98.7% of the total number of shares and votes in Kontakt East surrendered their shares, upon which the Kontakt East share was delisted from First North. Vosvik has initiated compulsory redemption of the remaining shares in Kontakt East.

For Kinnevik, the bid for Kontakt East meant that shares held earlier, corresponding to 21.4% of the capital in Kontakt East, were transferred to Vosvik. Furthermore, Kinnevik contributed a further SEK 150 million in cash to Vosvik to finance the cash offer for other shares and warrants in Kontakt East.

During the second quarter, Kinnevik converted loans issued by Relevant Traffic to shares and acquired shares from other shareholders in accordance with option agreements signed earlier. During the third quarter, Relevant Traffic carried out a new issue in which all shareholders were offered the possibility to participate, whereby the company received SEK 28 million in new funds. At the end of the year, Kinnevik owned 98% of the votes and capital in the company.

According to the preliminary purchase price allocation, the transactions in the second quarter combined with funds invested earlier, resulted in goodwill of SEK 89 million in Kinneviks's consolidated accounts, which has been written down to SEK 52 million as at 31 December 2008.

In December, Kinnevik divested its investment in the African pay-TV company Gateway Broadcasting (GTV) for USD 23.6 million. The GTV investment generated an IRR of 40% and at the end of 2008, Kinnevik received 1.8 times the amount invested in May 2007. The sale was a result of Vodacom's purchase of GTV's group company, Gateway Telecommunications, which was a guarantor for the loan in which Kinnevik had invested.

The operating loss for New Ventures amounted to SEK 30 million (profit of 23) during the year, of which SEK 17 million (16) related to Rolnyvik, SEK 14 million (9) to Sia Latgran and a loss of SEK 59 million (0) to Relevant Traffic. The operating loss for Relevant Traffic includes restructuring expenses of SEK 10 million and impairment of goodwill of SEK 37 million.

The change in fair value of financial assets totalled a negative amount of SEK 786 million (positive 702) where a negative amount of SEK 775 million (positive 717) related to Black Earth Farming, a negative amount of SEK 93 million (negative 15) related to Kontakt East and SEK 82 million related to the sale of GTV. The value of Kontakt East was adjusted downward by SEK 114 million in the fourth quarter, based on a discounted cash-flow analysis whereby the change in market conditions due to the credit crisis and a downturn in the Russian economy were taken into consideration.

Rolnyvik

History will remember 2008 as the year of extremes. In early spring, demand for grain and other crops was very strong and prices rose to unforeseen heights. This changed quickly during the autumn, and the final quarter was characterized by sparse trade and plummeting prices. However, price levels were relatively high during the year as a whole from a historical perspective.

In terms of production, 2008 was favorable, with generally high harvest levels. The year's fieldwork commenced with persistent spring rains, which delayed many cultivation efforts, which was partly offset by the warm and fairly dry early summer. Harvesting work started with dry weather that turned into more unstable weather patterns in the second half of August with a number of rainy and windy days, which delayed the harvest slightly.

Rolnyvik had net sales of SEK 58 million (63) and reported operating profit of SEK 17 million (16) for the year. The profit includes write-down of buildings used previously for milk production of SEK 4 million (0).

Black Earth Farming

The market value of Kinnevik's shareholding in Black Earth Farming amounted to SEK 470 million at 31 December 2008. Black Earth Farming's shares are traded on First North in Stockholm.

Black Earth Farming is a leading farming company operating in Russia. It acquires, owns and cultivates agricultural land primarily in the fertile Black Earth region in southwest Russia. The company has gained a strong market position in the Kursk, Tambov, Lipetsk, Samara, Voronezh and Ryazan areas, controlling as of 31 October 2008 332,980 hectares of which about 88,950 hectares were under full registered ownership. As of 30 September 2008, the company had a net cash position of USD 126 million.

In 2008, Black Earth Farming cultivated 141,900 hectares, which is nearly three times more than the 53,000 hectares harvested in 2007. Wheat is the largest crop, followed by barley, rape, sunflowers and corn.

Sia Latgran

Pellets production in the Latvian company Sia Latgran amounted to 105,000 tons during 2008, compared to 70,000 tons in 2007. The market for pellets is characterized by ongoing long-term increasing demand. The mild winters in northern Europe in recent years, combined with a continuing high level of import of pellets from North America, has, however, resulted in price competition in the European market. Despite these negative factors, prices in newly signed contracts rose during the year.

In September the company's second pellets plant, with an annual production capacity of approximately 110,000 tons, was placed in operation. The total investment amounts to approximately SEK 125 million. Production in the new plant amounted in SeptemberDecember to 30,000 tons. The costs of raw materials, which rose sharply in 2007, declined toward the end of the year due to weakening economy in Latvia.

Total revenue for Sia Latgran amounted to SEK 137 million (82), and operating profit was SEK 14 million (9).

Relevant Traffic

Relevant Traffic is active in the area of digital sales and marketing, using the Internet as its information carrier, and operates in software and hardware, consultation and campaign management. The customers comprise national and international, medium and large companies that often have knowledge from earlier activity as on line media buyers.

Having established offices in several cities in Europe, the company has during 2008 focused its operation on three service centers in Stockholm, Paris and Madrid in order to continue expansion in the European market from these.

Relevant Traffic reported revenue of SEK 177 million and an operating loss of SEK 34 million for 2008. After Kinnevik acquired the majority of shares, the company has undertaken an action plan to turn its negative results into profit within the next coming six months. The operating loss includes restructuring expenses of SEK 10 million in relation to the action plan.

Kontakt East

Kontakt East invests in fast-growing, primarily Internet-related, companies in Russia and neighboring markets. The company currently comprises the two business segments Directory Services, which publishes printed directories in Moscow, St. Petersburg and eight other Russian regions, as well as online search services and Consumer eCommerce, which offers consumer-focused e-commerce through such forums as the www.avito.ru and www.avitok.ru marketplaces.

Bayport

Bayport offers microcredit and financial services in Ghana, Uganda, Zambia and Tanzania. Ghana and Zambia are the largest markets, while Tanzania is showing rapid growth. Bayport was founded in 2002 and has grown profitably into a leading African microcredit company. The customer base is increasing and the product portfolio is being continually expanded, primarily with loans of a longer duration. The loans are applied mainly to finance large one-off expenditures such as school fees, investments in agriculture or to start a small company.

PARENT COMPANY AND OTHER

The administration costs within the Parent Company and the Group's other companies amounted to a net expense of SEK 37 million (expense of 44) after invoicing for services performed. Under Other revenue and costs, the Company reports the dissolution of a provision of SEK 36 million for a pension commitment in the UK pertaining to the previous operations of the subsidiary Korsnäs Paper Sacks Ltd. During the first quarter, the commitment was reinsured through an external insurance company. As a result, the total cost turned out to be lower than the provision made in conjunction with the closing of the operations. For the first quarter of 2007, a gain of SEK 70 million from the sale of the Swedish farm Ullevi (Agrovik AB) were reported under Other operating income.

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's wholly owned subsidiary Korsnäs accounts for most of the operational risks and they are mainly related to customers and suppliers and the risk for a major accident in the production plants.

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, 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 30 of the 2007 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 applied in this report are the same as those described in the 2007 Annual Report.

DIVIDEND

The Board proposes that the Annual General Meeting decide on an unchanged cash dividend of SEK 2.00 (2.00) per share.

KINNEVIK ANNUAL GENERAL MEETING 2009

The 2009 Annual General Meeting will be held on Monday 11 May 2009, at 9:00 a.m. at the Hotel Rival, Mariatorget 3 in Stockholm.

Shareholders wishing to have matters considered at the Annual General Meeting should submit their proposals in writing to agm@kinnevik.se 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 2009 ANNUAL GENERAL MEETING

A Nomination Committee of major shareholders in Kinnevik has been formed in accordance with the resolution of the 2008 Annual General Meeting. The Nomination Committee is comprised of Cristina Stenbeck on behalf of Emesco AB and other shareholders, Wilhelm Klingspor on behalf of the Klingspor family, Edvard von Horn on behalf of the von Horn family, Tomas Nicolin on behalf of Alecta and Marianne Nilsson on behalf of Swedbank Robur Fonder, who together represent more than 50% of the voting rights in Kinnevik.

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

EVENTS AFTER THE END OF THE REPORTING PERIOD

In February 2009, Metro announced the intention to raise approximately SEK 550 million in new financing by issuing debentures and warrants. The issue is fully underwritten by Kinnevik.

FINANCIAL REPORTS

The Annual Report for 2008 is scheduled to be released during the second half of March 2009 and will be available on the company's website.

Reporting dates for 2009:

23 April	Interim report January-March
23 July	Interim report January-June
22 October	Interim report January-September

Stockholm 17 February 2009

Board of Directors

Kinnevik discloses the information in this year-end release pursuant to the Swedish Securities Exchange and Clearing Operations Act and/or the Swedish Financial Instruments Trading Act. The information was submitted for publication at 8.00 CET on 17 February 2009.

REVIEW REPORT

We have reviewed the year-end report of Investment AB Kinnevik (publ) for the period 1 January to 31 December 2008. It is the Board of Directors and the CEO who are responsible for the preparation and presentation of this year-end report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this year-end report based on our review.

We conducted our review in accordance with 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 has a different focus and is substantially less in scope compared to an audit conducted in accordance with Standards on Auditing in Sweden RS and other generally accepted auditing practices. The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all significant matters that might be identified in an audit. Accordingly, the conclusion expressed based on a review does not constitute the same level of assurance as a conclusion based on an audit.

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

Stockholm, 17 February 2009

Ernst & Young AB

Erik Åström 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

Investment AB Kinnevik's objective is to increase shareholder value, primarily through net asset value growth. Kinnevik manages a portfolio of investments focused around three comprehensive business areas; Major Unlisted Holdings which includes the cartonboard and paper company Korsnäs including shares in Bergvik Skog, Major Listed Holdings which includes Millicom International Cellular, Tele2, Modern Times Group MTG, Metro International and Transcom WorldWide, and New Ventures which is active in finding new investments in small and mid sized companies which have a significant growth potential. Kinnevik plays an active role on the Boards of its holdings.

The Kinnevik class A and class B shares are listed on OMX Nordic Exchange Stockholm, Large Cap segment, within the financial and real estate sector. The ticker codes are KINV A and KINV B.

CONDENSED CONSOLIDATED INCOME STATEMENT (SEK million)

	2008 Full year	2007 Full year	2008 1 Oct 31 Dec	2007 1 Oct 31 Dec
Revenue	7 719	7 673	1 796	1 873
Cost of goods and services	-6 918	-6 526	-1 841	-1 786
Gross profit	801	1 147	-45	87
Selling, administration, research
and development costs	-480	-455	-128	-118
Other operating income	173	251	76	37
Other operating expenses	-96	-58	-83	-11
Operating profit	398	885	-180	-5
Dividends received	1 703	310	0	0
Change in fair value of financial assets	-27 429	15 540	-6 645	6 729
Interest income and other financial income	30	14	9	7
Interest expenses and other financial expenses	-574	-483	-154	-136
Profit/loss after financial items	-25 872	16 266	-6 970	6 595
Taxes	110	-87	165	52
Net profit/loss for the period	-25 762	16 179	-6 805	6 647
Of which attributable to:
Equity holders of the Parent Company	-25 765	16 178	-6 807	6 648
Minority	3	1	2	-1
Earnings per share before/after dilution, SEK	-97.94	61.29	-26.11	25.18
Average number of shares before/after dilution	263 078 396	263 981 930	260 677 205	263 981 930

CONDENSED CONSOLIDATED CASH-FLOW STATEMENT (SEK million)

	2008 Full year	2007 Full year
Operating profit	398	885
Adjustment for non-cash items	592	324
Taxes paid	-234	-79
Cash flow from operations before change in working capital	756	1 130
Change in working capital	-232	-252
Cash flow from operations	524	878
Acquisition of subsidiaries	-248	-
Disposal of subsidiaries	-	81
Investments in tangible and biological fixed assets	-226	-353
Sales of tangible and biological fixed assets	12	35
Investments in shares and other securities	-193	-530
Sales of shares and other securities	183	1 131
Dividends received	1 703	310
Change in loan receivables	-	7
Interest received	30	14
Cash flow from investing activities	1 261	695
Change in interest-bearing liabilities	-43	-674
Interest paid	-532	-458
Dividend paid	-528	-449
Share buy-back	-279	-
Cash flow from financing activities	-1 382	-1 581
Cash flow for the year	403	-8
Exchange rate differences in liquid funds	5	3
Cash and bank, opening balance	101	106
Cash and bank, closing balance	509	101

15 (21)

CONDENSED SEGMENT REPORTING (SEK million)

1 Jan-31 Dec 2008	Major Unlisted Holdings	Major Listed Holdings	New Ventures	Parent Company and other	Elimina tions	Total Group
Revenue	7 396		317	18	-12	7 719
Operating costs	-6 483		-288	-55	73	-6 753
Depreciation	-624		-18	-3		-645
Other operating income and expenses	140		-41	39	-61	77
Operating profit	429		-30	-1	0	398
Dividends received	4	1 699				1 703
Change in fair value of financial assets	33	-26 676	-786			-27 429
Financial net	-372	-175	3			-544
Profit/loss after financial items	94	-25 152	-813	-1		-25 872
Investments in shares and other
securities			193			193
Investments in intangible fixed assets	126		89			215
Investments in tangible fixed assets	171		53	2		226

1 Jan-31 Dec 2007	Major Unlisted Holdings	Major Listed Holdings	New Ventures	Parent Company and other	Elimina tions	Total Group
Revenue	7 519		147	19	-12	7 673
Operating costs	-6 226		-117	-71	57	-6 357
Depreciation	-613		-10	-1		-624
Other operating income and expenses	156		3	79	-45	193
Operating profit	836		23	26	0	885
Dividends received	4	304		2		310
Change in fair value of financial assets	155	14 674	702	9		15 540
Financial net	-348	-125	4			-469
Profit/loss after financial items	647	14 853	729	37		16 266
Investments in shares and other securities			519	11		530
Investments in tangible fixed assets	269		84			353

CONDENSED SEGMENT REPORTING (SEK million)

1 Oct-31 Dec 2008	Major Unlisted Holdings	Major Listed Holdings	New Ventures	Parent Company and other	Elimina tions	Total Group
Revenue	1 668		127	4	-3	1 796
Operating costs	-1 713		-107	-8	23	-1 805
Depreciation	-158		-5	-1		-164
Other operating income and expenses	65		-52		-20	-7
Operating profit	-138		-37	-5	0	-180
Change in fair value of financial assets	13	-6 521	-137			-6 645
Financial net	-105	-45	5			-145
Profit/loss after financial items	-230	-6 566	-169	-5		-6 970
Investments in shares and other securities			35			35
Investments in tangible fixed assets	69		4	2		75

1 Oct-31 Dec 2007	Major Unlisted Holdings	Major Listed Holdings	New Ventures	Parent Company and other	Elimina tions	Total Group
Revenue	1 821		50	5	-3	1 873
Operating costs	-1 700		-36	-25	13	-1 748
Depreciation	-153		-3	0		-156
Other operating income and expenses	39		-7	4	-10	26
Operating profit	7		4	-16	0	-5
Change in fair value of financial assets	135	6 241	347	6		6 729
Financial net	-108	-27	6	0		-129
Profit/loss after financial items	34	6 214	357	-10	0	6 595
Investments in shares and other securities			181			181
Investments in tangible fixed assets	101		20			121

CONDENSED CONSOLIDATED BALANCE SHEET (SEK million)

ASSETS	2008 31 Dec	2007 31 Dec
Fixed assets
Intangible assets	799	621
Tangible and biological fixed assets	6 268	6 551
Financial assets accounted to fair value through profit
and loss	25 315	52 741
whereof interest-bearing	122	205
Investments in companies accounted for
using the equity method	11	75
Other fixed assets	0	6
	32 393	59 994
Current assets
Inventories	1 977	1 645
Trade receivables	718	721
Tax receivables	63	11
Other current assets	211	346
Short-term investments	4	29
Cash and cash equivalents	505	72
	3 478	2 824
TOTAL ASSETS	35 871	62 818
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity
Equity attributable to equity holders of the Parent
Company	23 503	50 254
Equity attributable to the minority	27	13
	23 530	50 267
Long-term liabilities
Interest-bearing loans	7 875	8 856
Provisions for pensions	580	534
Other provisions	110	77
Deferred tax liability	1 217	1 382
Other liabilities	4	4
	9 786	10 853
Short-term liabilities
Interest-bearing loans	1 082	121
Provisions	27	121
Trade payables	715	734
Income tax payable	4	166
Other payables	727	556
	2 555	1 698
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	35 871	62 818

	2008 Full year	2007 Full year
Translation differences	23	30
Net gain/loss of cash flow hedges	-155	78
Actuarial profit/loss, net, relating to pension provision in accordance with IAS 19	-44	7
Changes in assets recognised in equity, excluding transactions with the Parent Company's shareholders	-176	115
Net profit/loss	-25 762	16 179
Total changes in assets, excluding transactions with the Parent Company's shareholders	-25 938	16 294
Attributable to the shareholders of
the Parent Company	-25 945	16 293
Attributable to the minority	7	1
Equity, opening balance	50 267	34 422
Total changes in assets according to statement above	-25 938	16 294
Cash dividend	-528	-449
Effect of employee share saving programme	1	-
Share buy-back	-279	-
Capital contribution from the minority	7	-
Equity, closing amount	23 530	50 267
Equity attributable to the shareholders of
the Parent Company	23 503	50 254
Equity attributable to the minority	27	13
	2008	2007
KEY RATIOS	31 Dec	31 Dec
Debt/equity ratio	0.41	0.19
Equity ratio	66%	80%
Net debt	8 906	9 205

CONDENSED STATEMENT OF CONSOLIDATED RECOGNISED INCOME AND EXPENSE (SEK million)

DEFINITIONS OF KEY RATIOS
---------------------------	--	--

Debt/equity ratio	Interest-bearing liabilities including interest-bearing provisions divi ded by shareholders' equity.
Equity ratio	Shareholders' equity including minority 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 bank.
Operating margin	Operating profit after depreciation divided by revenue.
Operational capital employed	Average of intangible and tangible fixed assets, investments in com panies accounted for using the equity method, inventories and short term non-interest bearing receivables less other provisions and short term non interest bearing liabilities.
Return on operational capital employed	Operating profit after depreciation divided by average operational ca pital employed.

FINANCIAL KEY RATIOS

MAJOR UNLISTED HOLDINGS (SEK million)

	2008 Full year1)	2008 Q41)	2008 Q3	2008 Q2	2008 Q1	2007 Full year	2007 Q4	2007 Q3	2007 Q2	2007 Q1	2006 Full year2)	2006 Q42)
Revenue
Korsnäs Industrial	6 608	1 465	1 602	1 785	1 756	6 625	1 572	1 583	1 755	1 715	6 392	1 511
Korsnäs Forestry	2 225	529	518	594	584	2 207	577	558	559	513	1 817	463
Eliminations within
Korsnäs	-1 437	-326	-352	-373	-386	-1 313	-328	-372	-313	-300	-1 075	-252
Total Korsnäs	7 396	1 668	1 768	2 006	1 954	7 519	1 821	1 769	2 001	1 928	7 134	1 722
Operating profit before depreciation (EBITDA)
Korsnäs Industrial	1 090	89	361	332	308	1 353	155	431	398	369	1 436	212
Korsnäs Forestry	34	2	13	8	11	96	6	40	30	20	54	27
Total Korsnäs	1 124	91	374	340	319	1 449	161	471	428	389	1 490	239
Operating profit after depreciation (EBIT)
Korsnäs Industrial	472	-68	208	178	154	745	2	279	247	217	821	53
Korsnäs Forestry	28	1	11	6	10	91	5	39	28	19	44	25
Total Korsnäs	500	-67	219	184	164	836	7	318	275	236	865	78
Operating margin
Korsnäs Industrial	7.1%	-4.7%	13.0%	10.0%	8.8%	11.2%	0.1%	17.6%	14.1%	12.7%	12.8%	3.5%
Korsnäs Forestry	1.3%	0.2%	2.1%	1.0%	1.7%	4.1%	0.9%	7.0%	5.0%	3.7%	2.4%	5.4%
Korsnäs	6.7%	-4.1%	12.4%	9.2%	8.4%	11.1%	0.4%	18.0%	13.7%	12.2%	12.1%	4.5%
Operational capital employed
Korsnäs Industrial	7 746	7 620	7 807	7 886	7 879	7 743	7 696	7 693	7 737	7 805	8 338	8 051
Korsnäs Forestry	429	475	408	415	370	267	328	272	224	213	222	201
Total Korsnäs	8 175	8 095	8 215	8 301	8 249	8 010	8 024	7 965	7 961	8 018	8 560	8 252
Return on operational capital employed
Korsnäs Industrial	6.1%	-3.6%	10.7%	9.0%	7.8%	9.6%	0.1%	14.5%	12.8%	11.1%	9.8%	2.6%
Korsnäs Forestry	6.5%	0.8%	10.8%	5.8%	10.8%	34.1%	6.1%	57.4%	50.0%	35.7%	19.8%	49.8%
Korsnäs	6.1%	-3.4%	10.7%	8.9%	8.0%	10.4%	0.3%	16.0%	13.8%	11.8%	10.1%	3.8%
Production, thousand tons	1 052	235	273	270	274	1 069	243	281	277	268	1 058	243
Deliveries, thousand tons	993	222	247	264	260	1 073	252	256	283	282	1 037	245

1) Excluding restructuring charges of SEK 71 million in Q4 2008.

2) Pro forma including Frövi, excluding restructuring charges of SEK 183 million in Q4 2006.

FINANCIAL KEY RATIOS

MAJOR LISTED HOLDINGS (SEK million)

	2008 Full year	2008 Q4	2008 Q3	2008 Q2	2008 Q1	2007 Full year	2007 Q4	2007 Q3	2007 Q2	2007 Q1	2006 Full year	2006 Q4
Change in fair value and dividends received
Millicom	-14 329	-4 200	-6 016	2 773	-6 886	11 974	7 454	-3 103	3 178	4 445	8 248	5 032
Tele2	-6 606	-1 129	-4 988	1 675	-2 164	3 899	-1 192	3 325	-53	1 819	2 102	3 262
MTG	-2 668	-765	-1 078	-437	-388	95	358	-258	407	-412	1 402	710
Metro	-979	-360	-433	-165	-21	-976	-395	-105	-628	151	-925	46
Transcom	-395	-67	-127	-29	-172	-386	16	-106	-107	-189	211	89
Invik 1)	-	-	-	-	-	407	-	-	251	156	349	121
	-24 977		-6 521 -12 642	3 817	-9 631	15 013	6 241	-247	3 048	5 970	11 387	9 260
Book value end of the period
Millicom	13 432	13 432	17 631	23 647	21 415	28 301	28 301	20 847	23 950	20 772	16 326	16 326
Tele2	8 627	8 627	9 756	14 744	14 054	16 218	16 218	17 410	14 085	14 368	12 548	12 548
MTG	1 674	1 674	2 439	3 517	4 103	4 491	4 491	4 133	4 391	4 058	4 471	4 471
Metro	160	160	521	954	1 119	1 140	1 140	1 535	1 640	2 267	2 116	2 116
Transcom	192	192	259	386	439	611	611	595	701	808	998	998
Invik 1)	-	-	-	-	-	-	-	-	-	838	682	682

24 085 24 085 30 606 43 248 41 130 50 761 50 761 44 520 44 767 43 111 37 141 37 141

1) On 28 June 2007, the entire holding in Invik was divested.

NEW VENTURES (SEK million)

	2008 Full year	2008 Q4	2008 Q3	2008 Q2	2008 Q1	2007 Full year	2007 Q4	2007 Q3	2007 Q2	2007 Q1
Change in fair value through income statement
Black Earth Farming	-775	-86	-571	-397	279	717	351	78	157	131
Kontakt East	-93	-114	0	28	-7	-15	-4	9	-11	-9
Other unlisted holdings	82	63	5	4	10	0	0	0	0	0
	-786	-137	-566	-365	282	702	347	87	146	122
Book value end of period
Black Earth Farming	470	470	521	1 092	1 489	1 208	1 208	704	500	343
Kontakt East	141	141	254	105	77	81	81	54	40	51
Other unlisted hol dings	551	551	659	598	556	546	546	495	380	247
	1 162	1 162	1 434	1 795	2 122	1 835	1 835	1 253	920	641

CONDENSED PARENT COMPANY INCOME STATEMENT (SEK million)

	2008 Full year	2007 Full year	2008 1 Oct 31 Dec	2007 1 Oct 31 Dec
Revenue	12	12	3	3
Administration costs	-53	-65	-10	-25
Other operating income	5	7	1	3
Operating loss	-36	-46	-6	-19
Dividends received	1 658	1 817	0	0
Result from financial assets	-1 959	599	-2 810	6
Net interest income/expense	-307	-311	-79	-89
Profit/loss after financial items	-644	2 059	-2 895	-102
Change of untaxed reserves	-1	0	-1	0
Profit/loss before taxes	-645	2 059	-2 896	-102
Taxes	86	102	24	32
Net profit/loss for the period	-559	2 161	-2 872	-70

CONDENSED PARENT COMPANY BALANCE SHEET (SEK million)

	2008	2007
	31 Dec	31 Dec
ASSETS
Tangible fixed assets	2	2
Financial fixed assets	23 831	25 702
Short-term receivables	346	528
Cash and cash equivalents	185	1
TOTAL ASSETS	24 364	26 233
SHAREHOLDERS' EQUITY AND
LIABILITIES
Equity	17 740	18 860
Provisions	70	75
Long-term liabilities	5 396	4 699
Short-term liabilities	1 158	2 599
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	24 364	26 233

The Parent Company's liquidity, including short-term investments and unutilized credit facilities totalled SEK 1,302 million on 31 December 2008 and SEK 1,647 million on 31 December 2007. The Parent Company's interest bearing external liabilities amounted to SEK 4,593 million (4,278) on the same dates.

Investments in tangible fixed assets amounted to SEK 0 million (0) during the period.

In accordance with the proposal on reclassification, approved by the Annual General Meeting held on 15 May this year, owners of 1,531,726 Class A shares required reclassification of Class A shares to Class B shares. After reclassification the number of Class A shares is 48,665,324 and the number of Class B shares is 215,316,606 . The difference in number of votes per share between Class A shares and Class B shares is 10:1. The total amount of votes in Kinnevik is 701,969,846. The total number of shares after reclassification is unchanged since 31 December 2007 at 263,981,930. The Board has authorization to repurchase a maximum of 10% of all shares in the Company. A share buy-back programme was implemented during the period 8 September to 4 November. On 31 December the number of shares bought back amounted to 3,500,000 Class B shares. The Board will propose to the next AGM to reduce Kinnevik's share capital by redemption of the repurchased shares. The number of shares and votes above are before redemption of repurchased shares. There are no convertibles or warrants in issue.